INDIANAPOLIS-Despite falling retail sales and overall concerns about the economy, Simon Property turned in strong third-quarter results with increases in FFO, net income and occupancy rates across its portfolio. “We actually embrace some of these economic changes,” said David Simon, the REIT's chief executive and newly named chairman. “That's when we've done some of our best work.”

The mall giant's FFO jumped 13.3%, to $418.7 million during the period, which ended Sept. 30, while net income shot up 74.3%, to $164.9 million. At its regional malls occupancy rose 20 basis points, to 92.7%, and open-air centers had a 2.1% jump, to 92.8%. Its outlet centers were up 30 basis points, to 99.6%. Meanwhile, sales per sf rose 3.6% at malls, hitting $491, and 8% at outlets, where it was $499.

Simon calls the period “business as usual,” and says that he has not seen a shift in retailers' intentions for the coming year. “The vast majority of our retailers have not changed their plans in terms of store openings for 2008,” he says.