Despite fears of an economic collapse, two of the biggest-name mall owners are doing pretty darn well financially. Both Simon Property Group and Taubman Centers recently posted strong quarters and seem to expect more of the same.
Simon posted a $274-million third-quarter profit, up from $230.6 million in the same year-ago period. The REIT was also able to raise rents. Meanwhile, executives predict that retailers won't be discounting as much this holiday season because they have their inventories under better control.
For its part, Taubman saw tenants' sales rise 11.7%, making it the seventh quarter of double-digit sales gains. This could spur the unheard of -- the development of new malls. The firm is considering developments in Puerto Rico, Hawaii, Salt Lake City and St. Louis.
So what is going on here? All we hear about in the economy is doom and gloom, but the largest mall, and outlet mall owner in the country is doing great financially, and one of the biggest names in luxury retail wants to build.
Is the consumer actually doing better than we might think or should we expect tougher times to come?
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