Glimcher Posts $1.3M Net Loss in Q2

"We continue to navigate through this difficult economic environment with an experienced team and a sharp focus on execution of our business plan," Michael Glimcher, chairman of the board and CEO, told investors today in a conference call. "We have been encouraged by the relative stability of our core mall portfolio and believe it is well positioned for growth as the economy recovers."

Funds from operation dipped to $18.1 million, $0.44 per share, from last year's same quarter numbers of $20.5 million, $0.50 per share.

According to company executives, the net loss to shareholders is " due to a $2.1 million reduction in base rents primarily resulting from tenant bankruptcies in the second half of 2008 and a $1.0 million reduction in lease termination income."

Occupancy slipped slightly in the second quarter. Total occupancy for core malls is 90.3% a decrease from 92.3% a year ago. This is due in part to store sales falling an average of 5.7% in the last 12 months. Still Glimcher told investors customer traffic is down only 2%, a number indicative that the American consumer still enjoys the mall experience.

In May Glimcher started formally marketing three properties; Lloyd Center in Portland, OR; Polaris Towne Center in Columbus; and WestShore Plaza in Tampa, FL. Initial bids for the town center are due at the end of August, so projecting a potential profit from the sale is impossible at this point. The two malls have received a number of bids both to be bought individually and together. Glimcher said the company is also looking into joint venture opportunities on the properties.

The proceeds from these sales will be utilized to reduce outstanding borrowings on the credit facility. Glimcher said he expects to be able to sell the mall properties with a cap rate in the single digits. No timeline was given for completion of these dales.