Focus On Offense A Positive Sign
Chairman and CEO Michael Glimcher says he has moved from "cautiously optimistic" about Glimcher Realty Trust's (NYSE: GRT) prospects and regional mall fundamentals last November to fully optimistic heading into the second half of 2010. He cited leasing spreads and deal activity among two areas that have seen solid improvement over that time.
Last year, he says, investors were focusing on the company's defensive activities and what it was doing to shore up its balance sheet. However, this year the conversation has switched to offense and how the company will grow.
"That to me represents a huge swing and a great positive," Glimcher says.
In addition, Glimcher said he saw no national retailer bankruptcies among tenants in the first quarter of 2010. Something he described as a "first" in his career.
"The balance sheets of the retailers we deal with are so much better than they have ever been," Glimcher says. "They manage their inventories so tightly and they improve gross margin. We think they have really responded well to the economic crisis."
Looking at portfolio expansion, Glimcher currently has two assets under management with the Blackstone Group, a relationship Glimcher says he hopes to continue to leverage in the future.