Tim Hannon

Things Not All That Bad at General Growth Properties

Sorry Mr Sullivan, GGP will fail - it has nothing to do with the fundamentals of their business, they are great at what they do, shopping centre ownership and management - and even in shocking down cycles this type of asset actually holds up relatively well (though will still have income falls). GGP's demise is coming from their capital structure; they simply owe too much money and cannot pay it back. Forget talk of revenues, sales per square foot, FFO, etc - it means nothing.