Michael Corkery

Michael Corkery asked for insights into Simon Property Group's expectations regarding tenant credit and bad debt for the upcoming year, comparing it to the previous year, and specifically addressing the potential impact of tariffs on retailers.

Answer

David Simon, Chairman, Chief Executive Officer, and President, acknowledged that tariffs are significantly pressuring retailers, particularly smaller ones, and impacting their EBITDA. He noted that while some bankruptcies surfaced early in 2026, strong retail demand helped maintain the guidance range. Simon expressed increased caution due to the ongoing tariff pressure.

Michael Corkery sought insights into Simon Property Group's expectations for tenant credit and bad debt in the year ahead, considering recent retailer bankruptcies and the impact of tariffs.

Answer

Chairman, CEO, and President David Simon acknowledged that tariffs are putting pressure on retailers, especially smaller ones, and are a significant headwind for 2026. He noted that while some bankruptcies surfaced post-budgeting, strong retail demand allows the company to maintain its guidance, albeit with a slightly more cautious outlook due to tariff pressure.