The Hindu Business Line  Sep 19  Comment 
Global Road Technology (GRT) India on Monday announced that it had secured its first national highway project, Varanasi-Aurangabad Tollway. GRT will work for Soma Enterprises, through the latter’s...
Reuters  Jun 8  Comment 
Kite Realty Group Trust , a U.S. shopping center developer and landlord, has been in negotiations to merge with similarly sized peer WP Glimcher Inc , according to people familiar with...


Glimcher Realty Trust is a Real Estate Investment Trust (REIT). The company makes money by owning, leasing, acquiring, developing and operating a portfolio of retail properties consisting of regional and super regional malls, and community shopping centers. The company owns 23 shopping malls (18 wholly-owned and 5 partially owned through joint ventures) containing an aggregate of 20.5 million square feet of gross leasable area (“GLA”).[1] Because rents come from a wide variety of sectors, macroeconomic factors will highly determine the tenant quality and their ability to pay to GRT.

Business Growth

GRT's primary growth strategy is to upgrade the quality of its portfolio of assets. The company therefore focuses on selective acquisitions, redevelopment of core Mall assets, the disposition of non-strategic assets, and ground-up development in markets with high growth potential. The company's development and acquisition strategy is focused on dominant anchored retail properties within the top 100 metropolitan markets by population that have near-term upside potential or offer advantageous opportunities.[2]

Trends and Forces

Online Competitors Steal Customers Away from Traditional Rental Properties

Because GRT owns shopping malls, the majority of th company's revenues come from retail. As retail tenants face increasing competition from online retailers, traditional brick-and-mortar tenants have chosen to either diversify their business line to online access or completely to online. This decrease in demand for rental properties pushes downward pressure to rent prices, which directly negatively influences GRT's top-line,

Volatility and Instability in Credit Markets bring High Barriers to Financing for REITS

Because REITS are obligated to pay out 90% of income to shareholders, which therefore allow it to become a pass-through entity, REITS such as GRT have difficulty simply retaining cash on hand. Without a large surplus of cash at hand to fund growth, GRT must resort to external financing from either credit or equity markets. Equity markets tend to be dilutive to shareholders, and as such stable credit markets are necessary to insure a continuance of refinancing opportunities as REITS are traditionally unable to keep large amounts of cash at hand to pay off balloon payments.


GRT competes with other REITS and privately owned shopping centers, such as:

  • Equity One (EQY) is a REIT that principally owns, manages, acquires and develops neighborhood and community shopping centers.[3]
  • Cedar Shopping Centers (CDR) is a fully integrated Real Estate Investment Trust (REIT) which owns, operates, develops and redevelops supermarket-anchored shopping centers primarily in the mid-Atlantic and Northeast coastal states.
  • Macerich Company (MAC) is involved in acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. [4]


  1. GRT FY2010 10-K, Pg 4
  2. GRT FY2010 10-K, Pg 6
  3. EQY Business Description
  4. MAC Business Description
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