DOW JONES NEWSWIRES 
 

Simon Property Group Inc. (SPG) swung to a second-quarter loss amid a $140.5 million write-down while reporting lower occupancy rates and a drop in revenue.

Even as some retailers struggle amid the spending slowdown, the nation's largest mall owner continues to raise rents. Real-estate investment trusts, especially those dealing in commercial property, have been slammed as commercial property prices have dropped and foreclosures have risen. Hotel and retail REITs have been especially hurt.

Simon reported a loss of $14.1 million, or 8 cents a share, compared with a year-ago profit of $114.4 million, or 34 cents a share. Funds from operations, a key profitability measure for REITs, fell to 96 cents from $1.49. Excluding the write-down, earnings would have been 35 cents and FFO at $1.38.

Revenue decreased 11% to $903.6 million.

Analysts polled by Thomson Reuters expected per-share earnings of 31 cents, FFO of $1.37 and revenue of $879 million.

At the regional malls business, occupancy rates were down to 90.9% from 91.8% while average rents increased 3.8%. Outlet occupancy declined to 97% from 98.3% and rents rose 23%. Comparable-store sales per square foot fell 11% at malls and 3.3% at outlets.

Shares of Simon, which reiterated its 2009 view, fell 1% premarket to $56.39.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com