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GGP’s quarterly report inspires talk of asset sales

A chart from Seeking Alpha, showing GGP’s stock value over the past year.

Updated, 6:20 p.m.: Link to Chicago Business story added. 

NORWALK, Conn. — There are no sacred cows, GGP’s chief executive reportedly said Monday.

GGP, the mall developer poised to begin construction on The SoNo Collection on West Avenue, is in the news Monday with numerous reports inspired by its stock prices and the release of its quarterly report.

Former Republican State Senate candidate Greg Ehlers sent an entire story from Bloomberg out to an email list, with the comment, “I doubt Bob Duff or Harry (Rilling) are tweeting this story today.”

GGP’s stock spiked slightly Monday “after Chief Executive Officer Sandeep Mathrani said on a conference call that the shopping-mall landlord was exploring strategic alternatives,” the story said.

Chicago Business characterized this as not ruling out selling the company.

GGP is exploring potential asset sales, SA reported, calling the stock rise a 3.8 percent jump.

Asked about this, GGP Senior Planner Doug Adams, who is developing The SoNo Collection here, said, “We prioritize our 5 constituents:  communities, retailers, employees, consumers and shareholders.  As our CEO said, we are constantly looking to get value to our shareholders, and agree with Sandler O’Neill that the best malls are still thriving.”

MSN, in a story posted last week, quotes Sandler O’Neill + Partners LP analyst Alexander Goldfarb as saying, “It’s not a fun time to be either a retailer or landlord, but it doesn’t mean every single mall or shopping center is going to close. Far from it.”

GGP’s stock rose to $22.71 at 10:52 a.m., after Mathrani’s 9 a.m. conference call, Bloomberg said.

Seeking Alpha, a crowd-sourced content service for financial markets, has been busy, with a breaking news alert on GGP at 5:30 p.m. Sunday, and five breaking news alerts Monday as of 2 p.m.

“Speaking on the earnings call, General Growth Properties (NYSE:GGP) CEO Sandeep Mathrani calls the disconnect between the private and public valuations of his company’s assets ‘extensive,’” Seeking Alpha posted at 10:21 a.m. Monday.

The markets are undervaluing GGP stock, Kevin Wilson wrote Monday on StockNews Journal.

Street Insider quotes Mathrani as saying, “We will pick a path in the near term. We are looking at assets on both ends of the quality spectrum. There is no sacred cow. We could sell assets and dividend cash. … The business is strong. We will pick up that soon.”

“During the quarter, the Company acquired approximately 2.57 million of its common shares at a weighted average price of $23.16 per share for total consideration of approximately $59.6 million,” Business Wire reports.

GGP’s quarterly report was for the three months ending March 31.

“Net income attributable to GGP was $107 million, or $0.11 per diluted share, as compared to $192 million, or $0.20 per diluted share, in the prior year period,” SA reported at 7 a.m.

“GGP beats on revenue,” a 7:11 a.m. story headline states.
Another SA story posts the entire report, while an 8 a.m. story states that GGP’s tenant rents (for less than 10,000 square feet) are up .6 percent over last year.

GGP’s stock over the last five days. (Seeking Alpha)

GGP’s stock values over the past decade. The company went bankrupt in 2008. (Seeking Alpha)

3 comments

Hawkeye May 1, 2017 at 3:01 pm

“IT’S DEJA VU ALL OVER AGAIN!”

There’s a prime piece of real estate being shopped behind closed doors. It’s right along the i95 corridor with water views and great access to local transportation. It’s a blank canvas! Be your own Picasso! Local politicians will bow to your every need. Build anything!

If you’re interested call GGP and use the code word “humblepie”

In all seriousness, is GGP still REALLY going to build a Mall here?

Has there been any public comment by the 2 anchor stores? They seem to have been pretty silent through all these latest news stories.

James Cahn May 1, 2017 at 3:58 pm

We don’t need to speculate on what earnings calls mean or what option flow suggests.

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