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Many REITs are in trouble. That is becoming the understatement of the year. The REITs doing better in today’s environment are the ones whose projects are already built and those that were fully leased. This is particularly true of retail and office REIT structures where investors are starting to become more risk adverse.
General Growth Properties, Inc. (NYSE: GGP) has been among the worst performers of retail and multi-use REITs. Last week was deemed by many as the apex but that didn’t hold. The company has secured additional funding in recent weeks, but is still back in the barrel. Financing needs apparently still prevail and last week executives had to sell shares to cover margin calls. Now, it is reviewing strategic alternatives and shares are down again. In summer these shares were north of $40.00 and in the first half of 2007 this was a $60+ stock. On September 12, this was at $27.55. Last week it closed as low as $19.92 before Friday’s recovery. Shares today are down 17% at $17.70.
