QUOTE AND NEWS
New York Times  Oct 25  Comment 
A medical school dean asks: “As a scientist, if you’re not willing to take big risks and try daring experiments, what is the point?”
DailyFinance  Sep 18  Comment 
Glimcher Realty Trust (NYSE: GRT),one of the country’s premier retail REITs, today announced that the company’s Board of Trustees has declared a quarterly cash dividend on its common and preferred shares. A dividend of...
Benzinga  Sep 17  Comment 
Nobody saw this one coming, as all eyes were looking elsewhere. Simon Property Group Inc (NYSE: SPG) CEO and Chairman David Simon was very clear last week when he presented at the Barclays investor conference that he had no plans on investing...
DailyFinance  Sep 16  Comment 
Kirby McInerney LLP is investigating potential claims against Glimcher Realty Trust (“Glimcher” or the “Company”) (NYSE:GRT) concerning the proposed acquisition of the Company by Washington Prime Group Inc. (“WPG”)...
Benzinga  Sep 16  Comment 
Glimcher Realty Trust (NYSE: GRT) +30% - Washington Prime Group announced plans to acquire GRT for $4.3 billion in a cash and stock deal. Bill Barrett Corporation (NYSE: BBG) +12% - The company announced that is has signed a deal to sell its...
Benzinga  Sep 16  Comment 
Midway through trading Tuesday, the Dow traded up 0.31 percent to 17,084.09 while the NASDAQ surged 0.22 percent to 4,528.87. The S&P also rose, gaining 0.44 percent to 1,992.83. Leading and Lagging Sectors In trading on Tuesday, energy...
TheStreet.com  Sep 16  Comment 
NEW YORK (TheStreet) -- Shares of Glimcher Realty Trust are jumping after it announced earlier today that it had agreed to sell itself to Washington Prime Group for $14.20 per share. Glimcher and Washington Prime are real estate investment...
Benzinga  Sep 16  Comment 
Glimcher Realty Trust (NYSE: GRT) shares moved up 30.31% to $13.80. The volume of Glimcher Realty Trust shares traded was 5405% higher than normal. Washington Prime Group (NYSE: WPG) announced its plans to acquire Glimcher Realty Trust for $4.3...
Wall Street Journal  Sep 16  Comment 
Washington Prime Group, the strip-mall trust that spun off from Simon Property Group, agreed to buy Glimcher Realty Trust for about $2.06 billion.




 
TOP CONTRIBUTORS

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.

Competition

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]




References

  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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