Adam Metz, the interim CEO of the company, said there are five goals in mind to bring GGP back to profitability. He said the five points include reducing spending and development, reexamining how money is spent, negotiating loan extensions and the sale of assets. "This credit market is the worst most of us have seen in our careers," Metz said during the call. "It's a world now where even the best-performing assets have difficulty refinancing. The traditional sources of mortgage capital have dried up."
Trust officials said during a conference call this morning that it has arranged for new and/or replacement financing for most of its loans. However, the REIT has about $900 million of property-secured debt and about $58 million of corporate debt that is scheduled to mature by Dec. 1 that remains to be refinanced and extended. "As previously announced, the company is working with its syndicate of lenders for the property secured debt (for Fashion Show and the Shoppes at the Palazzo, two of our premier Las Vegas properties) to extend the Nov. 28 maturity dates, and is marketing these properties for sale," the officials said in a statement. Metz said that the company will also close transparencies, by ceasing to make individual loan details available.
He said that the company is working on sale deals, but that it takes time for the transactions to close. "We hope to have something to announce by year end," Metz said.
Comp store sales by tenants rose by .03%, the company said. However, occupancy dropped in its 200 shopping malls, from 93.2% in the third quarter 2007 to 92.7% in Q3 2008.
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