X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

GREAT NECK, NY-Feldman Mall Properties Inc. reported a net loss of $3.1 million for the quarter ended this Sept. 30, compared with a net loss of $1.8 million for third-quarter 2006. Funds from operations slid to $600,000, down from $3 million in the prior-year quarter.

Larry Feldman, chairman, began a Dec. 21 conference call by apologizing for the delay in third quarter reporting and calling such a delay “unacceptable.” Aspects of an ongoing re-structuring are expected to result in timely reporting, he said.

Among the changes are the closing of its office in Phoenix; the resignation of James Bourg, EVP, COO and director; and the out-sourcing of back-office functions. Feldman said, “transferring our back-office and accounting functions to the Brandywine organization should bring down the high costs of G&A and also help ensure timely reporting.”

The locally based mall owner will incur a one-time severance charge of $1.3 million related to Bourg’s departure. It is based on a contract struck prior to the company’s IPO in 2004. “Maintaining liquidity is job number one,” Feldman said.

“We are hard at work on the blocking and tackling related to construction and leasing of our properties,” he continued. “Redeveloping all of our malls will take several years.” He also said there would be another conference call “shortly” in which the company will provide a net asset value for the firm. “It won’t be X per share, but enough information so shareholders can arrive at their own (assessment of) NAV.”

This June, Feldman retained Friedman, Billings, Ramsey & Co. to assist in exploring strategic alternatives, including the potential sale or merger of the company with another entity. During the third-quarter call, Feldman said the firm “remains committed to exploring strategic alternatives, but does not believe that a sale, merger or other strategic alternative is imminent under the current market conditions.”

Asked what FBR was currently doing, and whether or not it would continue on the payroll, Feldman declined to comment “until the proxy is completed for the annual shareholder meeting,” which will take place within weeks. “We’re deferring the decision to retain FBR pending the stockholder vote.”

At the close of the NYSE, following the conference call on Dec. 21, FMP common stock stood at $2.99 a share, down more than 10% for the day. The 52-week low of $2.42 a share occurred this Nov. 27, and the 52-week high of $13 a share was reached this April 9.

Feldman specializes in acquiring, renovating and repositioning enclosed regional malls. Currently its portfolio, including non-owned anchor tenants, includes seven such properties that aggregate seven million sf of which Feldman owns approximately 4.1 million sf.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.