General Growth Properties (NYSE:GGP)

CAPS Rating: 2 out of 5

A self-administered and self-managed real estate investment trust whose business is focused in two main areas: Master Planned Communities and Retail and Other.

Recs

4
Player Avatar mikemasland (99.91) Submitted: 7/10/2008 3:01:19 AM : Underperform Start Price: $30.37 GGP Score: +63.42

U.S. consumer is feeling major financial pressures.
Strip malls traffic will shrink as gas continues to rise.
Strip malls traffic will shrink as unemployment continues to rise.
Commodity prices & oil prices are shrinking margins for businesses.

Expect commercial REITs thats own/operate/manage strip-malls to be under financial pressures in the coming months.

Report this Post 4 Replies
Member Avatar dexion10 (27.58) Submitted: 8/3/2008 11:38:28 AM
Recs: 0

YOU ARE ON THE MONEY WITH THIS PICK

Member Avatar dexion10 (27.58) Submitted: 8/3/2008 11:38:28 AM
Recs: 0

YOU ARE ON THE MONEY WITH THIS PICK

Member Avatar NevadaBuilder (86.16) Submitted: 8/11/2008 1:39:58 AM
Recs: 0

FYIGGP is not in the "strip mall" business. It's shopping centers are some of the biggest(and best) shopping centers in the US. GGP's problem is excessive leverage in a leverage unfriendly environment, but their properties are unique and irreplaceable.

Member Avatar Learned (97.16) Submitted: 1/3/2009 11:51:06 AM
Recs: 0

I agree with Nevada builder. Kimco would be a much better company to talk about regarding strip malls. I do feel that both malls and strip malls will be coming under economic hard times however as the world moves more toward e-commerce. Simon Properties shoule feel the pinch as well. The retailers that will survive are those that offer something you can't get via an online experience and those that excel at service. Unfortunately that will leave us with even more store closings and this will hurt all properties. I agree with the pick's philosophy.

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