Tale of Two Retail Real Estate Companies
The Wall Street Journal has an article this morning on General Growth Properties (GGP), a shopping mall owner. The article describes General Growth's debt problems and the leverage (margin) its key executives used to exercise stock options. Here is a one-year chart from FinanceYahoo comparing General Growth with Federal Realty Trust (FRT), another real estate investment trust that owns retail properties:
Federal Realty Trust is a solid company. It is amazing that its stock has held its value in the current real estate market.