Wednesday, November 5, 2008

GGP, Kimco tank on lower earnings expectations

When your earnings aren't going to make the target, you know it's gonna happen. Could this come at a worse time for GGP?

They claim to be making inroads on financing. I missed the call, unfortunately, but maybe I will listen to it later. Adam's a smart guy, so if anyone can bail this one out he can, presumably with Bucksbaum in the background.

But GGP trading at $2.53 as I type and with a market cap of $677 million? Maybe Roeder was right. Problem is in this market selling isn't easy and lenders may be willing to negotiate just to not have distressed assets on the books.

1 comments:

Anonymous said...

Book valuations of properties held by REITs are artificially high and unrepresentative of today's market conditions, due to the recent and continued downturn of the commercial real estate market. Such will certainly continue through 2009-2010 as consumer confidence is soft, and asset valuations will likely never return to 2005-2006 levels.

Time for REIT's to sell assets now before vacancy rates surge futher. Time for REIT investors to sell shares, as management will not be able to maintain current dividend levels.

 
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