Las Vegas Sun

March 28, 2024

General Growth stock slumps on uncertainties, then recovers

Updated Monday, Feb. 9, 2009 | 6:16 p.m.

The stock of Summerlin developer and Las Vegas mall owner General Growth Properties Inc. of Chicago slumped early Monday but later recovered as investors weighed the financial outlook for the big real estate investment trust.

General Growth stock traded as low as 71 cents, down 11 percent from Friday. The stock later rebounded, closing at 85 cents per share, up 4 cents for the day.

On Friday, General Growth said its quarterly and annual earnings reports would be delayed and that when they are released, it will not hold a customary conference call with analysts and investors to discuss the results.

General Growth said Friday in a statement "that as a result of its ongoing strategic review of alternatives, it now plans to release earnings for the fourth quarter and full year of 2008 on Feb. 23, after the market closes, which is two weeks later than the previously projected date. The company will not conduct a conference call this quarter."

In Las Vegas, General Growth owns Howard Hughes Corporation, developer of the Summerlin planned community; as well as regional malls Boulevard and Meadows and Las Vegas Strip malls Fashion Show, Grand Canal Shoppes at the Venetian and the Shoppes at the Palazzo.

Faced with a huge debt load and a slowing economy, General Growth has been trying to sell the assets on the Strip and this week faces a deadline to make payments or gain extensions for loans against the Fashion Show and Shoppes at the Palazzo properties.

Steve Green can be reached at 990-7714 or [email protected].

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