REITs as a sector declined during this period, with GGP following the market trend. The decline was due to macro-economic factors including rising interest rates and the global credit crunch. In late January the Fed began to cut interest rates, simultaneously increasing investor optimism, easing credit limitations slightly, and leading investors to switch to instruments with a higher yield, such as REITs, increasing GGP's price. See http://news.moneycentral.msn.com/ticker/article.aspx?Feed=AP&Date=20080109&ID=7987949&Symbol=US
A California jury ordered GGP to pay $15 million in punitive damages. This was on top of $74 million in compensatory damages already awarded to Caruso Affiliated Holdings LLC.
GGP said it plans to record about $52 million related to the full jury verdict during the fourth quarter. GGP plans to appeal. Standard & Poor’s Ratings Services also lowered its outlook on GGP, citing the Chicago-based shopping mall owner’s high debt load and the tight credit market.
Even the strongest player in REITs, such as GGP, can not escape the squeeze.
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