Glimcher Realty Trust (NYSE:GRT): Purchase of Blackstone stake in Florida JV


Dallas, Texas 10/09/2013 (Financialstrend) – In June of 2013, Glimcher Realty Trust (NYSE:GRT) had acquired the controlling stake in joint venture that it had initiated with a subsidiary of Blackstone Real Estate Partners. Glimcher through its 100% owned subsidiary GRT WSP-LC Holdings LLC had floated a joint venture vehicle called Glimcher WestShore Holdings, LLC. 60% of the holding in this JV was owned by one of the affiliates of Blackstone. 40% of it was owned by GRT WSP.  By paying a premium of $111.8 million, the 60% share of Blackstone in the joint venture was bought over by Glimcher. The sale agreement was reported on June 6 to SEC.

On completion of this deal on September 20, GRT becomes the sole owner of Glimcher WestShore Holdings through its subsidiary.  WestShore owns and operates a 1.1 million square feet big mall in Tampa, Florida. The entire mall property is still under a mortgage. A total of $119.6 million is the loan outstanding. This entire loan will now be taken over into the books of Glimcher WestShore Holdings. Additionally, a cash payment of $40 million was made by GRT to Blackstone.

Post the September 20, announcement, came GRT September 24 press release which announced the dates for the release of its 3Q13 operating results. On October 24 close of business, its 3Q results will be announced. The company also announced the dividend payout plan for its Series G preferred shares holders. A dividend of $0.5 per preferred share will be paid out on October 15.

The stock has steadily lost its market value since the announcements. In the last one week its shares have shed close to 2.5% of their value and over the past quarter, the market value of the stock has come down by 12%. Hence the investors of this $1.4 billion market cap company will be hoping for strong 3Q results later this month.