Simon Property Group: Elimination of De Minimis Exemption Provides ‘Material Benefit' to US Retailers

Core Viewpoint - The elimination of the de minimis exemption is expected to benefit American retailers by leveling the playing field against Chinese eCommerce competitors [1][2][3] Group 1: Impact of Policy Changes - The de minimis exemption allowed packages worth less than $800 to enter the U.S. tariff-free, which primarily benefited Chinese eCommerce retailers [1][2] - The removal of this loophole is seen as a significant advantage for American retailers, enabling them to compete more effectively [2][3] Group 2: Company Performance Metrics - Simon Property Group reported an occupancy rate of 95.9$58.92, a 2.4% rise from $57.53 reported a year earlier [4] - Retailer sales per square foot for the trailing 12 months ended March 31 were$733, down from $745 for the same period in 2024 [4] Group 3: Factors Affecting Sales - The decline in retailer sales was attributed to the timing of Easter, adverse weather conditions in February, and reduced traffic from Canadian and Mexican customers due to political rhetoric [5][6] - Despite new U.S. tariffs, Simon Property Group experienced minimal impact on leasing, with concerns primarily from one European retailer regarding import costs [6] Group 4: Future Outlook - Simon Property Group reaffirmed its full year 2025 real estate funds from operations (FFO) guidance, expecting results to trend towards the middle of the range amid macroeconomic and tariff uncertainties [7]