Stephanie Guzman, Reporter for Albuquerque Business First:
Despite some high-profile retailer bankruptcies, those in the mall business are still making money.
General Growth Properties Inc., the real estate company that owns, operates and leases more than 100 malls across the country, recently reported its Q1 earnings. The company said revenue rose 2 percent during the first three months of the year, to $607 million, exceeding market analysts' predictions.
The Chicago-based company (NYSE: GGP), which owns Albuquerque's Coronado Center, said all sectors of malls made money, including home furnishings, goods and apparel, and electronics.
Sandeep Mathrani, the CEO of General Growth Properties, said across GGP's entire portfolio, only one big-box store is vacant.
Still, he talked about the business being cautious in light of some retailers filing for bankruptcy. The Wall Street Journal reported Tuesday morning that Aeropostale, the teenage clothing brand, is preparing to file for bankruptcy and close 100 stores. Aeropostale has locations in Coronado Center and the Cottonwood Mall. This comes on the heels of PacSun filing for bankruptcy, which also has a location in Coronado.
Mathrani said he doesn't expect PacSun or Aeropostale to liquidate its assets, and GGP could be in a position to help the companies.
"It would really come back to being more financial assistance in what we can provide to PacSun and Aeropostale to keep them afloat and give them the chance to turn around," he said.
Mathrani didn't give any specifics about the Coronado Center mall, but mentioned trends in the mall industry in general. He highlighted the successful addition of more restaurants throughout GGP's portfolio, something the Coronado Center has seen over the years by adding The Cheesecake Factory and Longhorn Steakhouse. Click here to read more.
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