Real estate investment trust firm General Growth Properties, Inc. (GGP) on Monday revealed that its Board of Directors and management team is pursuing a comprehensive evaluation of both its financial and strategic alternatives. The aim of this exercise is to align the market value of its common stock more closely with the intrinsic value of its "stable, high quality portfolio of real estate assets in good locations with significant barriers to entry," the company noted.
As per the Chicago, Illinois-based company, occupancy reached a record high of 93.2% in the second quarter of 2008. Comparable net operating income continued to increase, even in a challenging consumer sales environment, the company added.
General Growth at present expects to be in a position to offer a long-term fixed-rate portfolio mortgage financing to lenders in mid to late November. In the in the interim, the company said it will actively pursue several sources of financing its near term maturing obligations.
The company further stated that its advisors "are also developing a comprehensive, strategic plan to generate capital from a variety of potential sources including, but not limited to, both core and non-core asset sales, the sale of joint venture or preferred equity in selected pools of its assets, a corporate level capital infusion, and/or strategic business combinations."
General Growth owns or manages a portfolio of over 200 regional shopping malls in 44 states, as well as owns master planned community developments and commercial office buildings. The company's portfolio totals about 200 million square feet and includes over 24,000 retail stores all over the U.S.
GGP closed Friday's regular trading on the NYSE at $21.42, up $1.50, or 7.53%, with a volume of 18.12 million shares.
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