The loss of Saks Global stores is set to boost the bottom line of the world’s largest mall operator.

Simon Property Group expects to increase rents on the 1M SF of mall space vacated by the luxury retailer by more than 144%. The REIT was collecting $18M in rent from Saks before the company shuttered nearly all of its Saks Off 5th stores after filing for Chapter 11 bankruptcy, Retail Dive reported. 

“We’ll basically take the $18M and turn it into $44M,” CEO Eli Simon said during a call with analysts this week.

Occupancy at Simon’s malls and premium outlets remained at 96% at the end of the second quarter, the same as at the end of Q1, despite the 1M SF of retail space left empty by Saks’ closures. Simon absorbed the 1M SF and has been able to increase rents on the space. 

The REIT reported initial base rent from new leases rose by 17% year-over-year through the second quarter. Simon has filled about half the space vacated by Saks and already pocketed more than the $18M it lost from the luxury retailer’s closures. 

The rest of the vacated space is under discussion and near final deals, Simon told analysts on the call.

Saks Global filed for bankruptcy in mid-January after being weighed down by debt following its $2.7B acquisition of Neiman Marcus in 2024. The Saks Global conglomerate took on $2B in debt and missed a $100M debt service bill in December.

The company exited bankruptcy in June with a new name, Exemplar Luxury Group, and a smaller footprint. The reincorporated luxury retail group reduced its debt by nearly 75% and cut its store count by two-thirds to 49 locations.

In addition to its robust leasing demand, Simon cited increased traffic and retailer sales growth as contributing to the REIT’s strong performance during the quarter.

Simon’s net operating income from all its North American properties increased 8.5% during the second quarter to $1.5B. Its NOI rose 7.6% to nearly $3B for the first half of 2026. 

However, the company’s retail investments, which include Catalyst Brands and e-commerce company Rue Gilt Groupe, didn’t fare as well. The retail segment recorded an almost $53M net operating loss during the first half. 

For the second quarter, the segment’s net operating income dropped 24% to $31.8M. 

The Simon family is also embroiled in a lawsuit over the purported dissolution of a private real estate holdings company that Simon Property Group co-founder Herbert Simon claims stripped him and other equity holders of millions of dollars in shares.