Mall Giant Simon posted disappointing revenues. His stock has slipped.

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Simon Property Group,

the operator of the luxury shopping center, on Monday announced disappointing results after an earlier rise in its shares on optimism about the end of the pandemic.

The real estate investment trust reported funds from operations of $ 723.2 million, or $ 2.05 per share. Analysts polled by FactSet were forecasting funds from operations – a key metric in the industry – of $ 2.29.

It’s no surprise that business is down. Simon is like many other businesses deeply affected by closures and business disruptions related to a pandemic. Net income for the quarter fell 73% from a year ago to $ 145.9 million, or 48 cents per share. Total revenue, including rental income, fell 25% to $ 1.06 billion.

Simon stock (ticker: SPG) fell 5.3% after-hours after rising 28% during Monday’s trading. They are down 47% this year, while the S&P is up 9.9%.

Shopping center owners were already facing a drop in foot traffic and struggling tenants. Then the pandemic struck, forcing sites to shut down in an attempt to stop the spread of the virus. Even after reopening, shopping malls and other indoor locations have had to restrict occupancy and services. Meanwhile, shoppers are turning online for their retail fixes and the habits are slow to return.

Simon, who owns around 200 malls such as Copley Place in Boston and King of Prussia in Pennsylvania, took advantage of low valuations to buy struggling retailers like Brooks Brothers and Lucky Brands, both acquired under contracts with Authentic Brands , and JC Penney, acquired with co-owner Brookfield.

It improved its third quarter rent collection percentage to 85% as of November 6, compared to 72% of second quarter rents billed. The occupancy rate was 91.4% at the end of September.

“Despite Covid-19, we are encouraged by the increases we are seeing in buyer traffic, retailer sales and rent collection from tenants across our portfolio,” said CEO David Simon.

News of a possible vaccine sooner or later put a bright spot in the market on Monday, as investors absorbed the idea that life may soon return to normal.

But it doesn’t happen quickly. For the first nine months of this year, Simon’s net profit is down 47%.

Write to Liz Moyer at [email protected]