Wednesday, November 5, 2008

General Growth Delays Future Projects

The national shopping mall operator, whose portfolio includes our very own Mall in Columbia, posted its third quarter financial results and the picture was not pretty. Funds from operations, a key financial metric, fell 11 percent to $185.4 million from a year ago.

GG is really getting hammered by the credit crunch and economic downturn. It must refinance some $900 million in debt by Dec. 1. In the meantime, it's lowering its financial forecasts and says it has decided to defer future projects.

The Company’s Board of Directors and management team, together with their financial and legal advisors, continue to comprehensively examine all financial and strategic alternatives for the Company, including, but not limited to, sales of both core and non-core assets, sales of joint venture interests, corporate level capital infusions and broader strategic business combinations.

The Company has deferred the development, construction or opening of certain near and intermediate term new development and redevelopment projects. As a result, all future development expenditures other than expenditures for projects that are near completion and approved projects at our jointly owned properties have been deferred.

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