Commentary Simon Property Group Tags More Struggling Properties Non-Core DBRS Morningstar Simon Property Group, Inc. (Simon) last week released its 2020 earnings report, and, amid the bad news February 16, 2021 that included steep drops in overall revenue from the prior year, the retail real estate investment trust reclassified some of its assets as “Other Properties,” which are defined by Simon as those “considered non-core to our business model.” Gwen Roush Senior Vice President +1 312 332-9575 In total, Simon moved seven malls into its Other Properties category that were not classified as such in
[email protected] the 2019 reporting. All seven, Crystal Mall, Dover Mall, Square One Mall, Emerald Square Mall, Southridge Mall, Town Center at Cobb, and Mall at Tuttle Crossing, back commercial mortgage-backed Steve Jellinek Vice President – Head of Research securities (CMBS) loans. The servicers have noted that the properties, with the exception of Dover Mall North American CMBS and Square One Mall, are in the process of being transitioned to the lender. The Dover Mall and Square + 1 312 244-7908 One Mall are both in special servicing and are severely delinquent.
[email protected] Erin Stafford In total, 13 properties categorized by Simon as non-core assets back CMBS loans with a combined Managing Director +1 312 332-3291 balance of $1.02 billion. Nine are transitioning to the lender or back delinquent loans. The $110.0 million
[email protected] The Avenues loan is on that list and is on the servicer’s watchlist for a Coronavirus Disease (COVID-19) relief request but is current.