Simon Property Group expects to convert the $18 million in annual rent it lost from Saks Global's Chapter 11 filing into $44 million, a 144% increase, by re-leasing the 1 million square feet vacated across its mall portfolio. CEO Eli Simon told analysts on the Q2 2026 earnings call that the REIT has already leased roughly half of the vacant Saks space and recovered more than the $18 million it lost, with initial base rent from new leases rising 17% year-over-year through the second quarter. Saks Global exited bankruptcy in June as Exemplar Luxury Group with a two-thirds smaller store count of just 49 locations after its $2.7 billion acquisition of Neiman Marcus in 2024 left it unable to service $2 billion in debt. Simon's retail investment segment, which includes stakes in Catalyst Brands and Rue Gilt Groupe, recorded a nearly $53 million net operating loss in the first half of 2026, with net operating income from that segment dropping 24% in the second quarter to $31.8 million.
Simon Property Group IncSimon Property re-leases vacated Saks space at higher rents, increasing annual income from $18M to $44M.
