Simon Property Group, owner of a US shopping center, announces its results for the first quarter of 2019

The country's largest mall owner expects the pace of retail store closures will slow after a disastrous start to the year. But his CEO will not promise.

"I think most of the bad news is behind us," said David Simon, CEO of Simon Property Group, during a post-profit conference call Tuesday morning, referring to store closures and business bankruptcies. detail. "But I can not guarantee it."

Simon's shares fell by more than 3% after real estate investment trust released first quarter operating funds – a closely monitored industry indicator – of $ 1.08 billion, or 3 $ 04 per share, compared to $ 1.03 billion, or $ 2.87 per share. one year ago. According to BTIG's Jim Sullivan, badysts said the figure was slightly below badysts' expectations.

In February, CEO Simon had stated that he was "nervous" ahead of some additional bankruptcies in retail during the first quarter. It was just before Charlotte Russian teen clothing retailer, the Things Remembered and Payless ShoeSource personalized gift company, went bankrupt later this month. Today, US retailers have already announced more store closures in 2019 than in 2018.

"It's safe to say … we anticipated some [of those] Bankruptcies, "said Simon, the CEO, said Tuesday.We are looking at a few more … we'll see how the rest of the year will prepare for them."

As a result of this easing, the shopping center vacancy rate climbed 9% in the fourth quarter of 2018 to 9.3% in the first quarter, according to research firm Reis. This is the highest vacancy rate recorded by the firm since the third quarter of 2011, when it reached 9.4%, said Reis.

Simon, in turn, has been in the forefront of adding new types of tenants to his shopping centers in order to preserve the relevance of his shopping centers. This includes taking some of its badets and turning them into "mixed-use" centers with apartments, hotels, office buildings and fitness centers. At the Simon & # 39; s Phipps Plaza shopping center in Atlanta, for example, a Nobu hotel and a 90,000 square foot Lifetime Fitness complex have been added.

Earlier this year, Simon announced a partnership with Green Growth Brands, an Ohio-based marijuana company, to open 108 stores selling CBD-based products at its properties, including Roosevelt Field Mall in New York City. and the Galleria in Houston.

"It will take a bit of work this year to find a balance," said CEO Simon at all retail store closings opening doors. He added that Easter shopping in shopping centers was "slow" this year. But Simon "sees a bit of a rebound" now.

Simon said the mall owner 's square – foot sales for the quarter ended March 31 were up 3.1% from last year to $ 660. He said that occupancy in its shopping centers and premium brand centers was 95.1%, up from 94.6% a year ago. Simon also reaffirmed his outlook for the 2019 fiscal year.

Simon is not the only owner of American mall to fight this recent wave of store closures. Others are trying to paint a picture of the industry to show the number of closures planned in 2019 and point out that these closures come from a handful of retail chains.

"A bit of data badysis gives a color to the nature of these closures," said Washington Group executive director Lou Conforti last week. "Six retail chains [account] for 73% of closures this year, compared to 21% in 2016 and 27% in 2018, respectively. So, more concepts do not go below, just sh — y ones. "

Simon's shares have grown more than 9% over the last 12 months, bringing his market capitalization to approximately $ 52.7 billion.