Providence mall parent reports profit

CHICAGO – General Growth Properties, the corporate parent of Providence Place, reported $51.7 million in net income for the first quarter of 2010 compared with a loss of $396 million in the same quarter last year.
Revenue, however, fell to $761.2 million from $788.6 million as the company collected less from rents and management fees. The Chicago-based company also remains in Chapter 11 bankruptcy as it seeks to reorganize after suffering from a heavy debt load.
GGP CEO Adam Metz, however, remained upbeat in an earnings statement, saying that retail tenants were reporting higher margins, stronger balance sheets and rising same-store sales.
“The macroeconomic outlook is improving, and we are seeing signs of recovery and growth in a number of our markets,” Metz said.
GGP did not break down its results by location and Providence Place was not among the “operational highlights” listed in the earnings report. The mall with 1.3 million square feet of space hosts roughly 160 shops.
Separately last week, rival mall owner Simon Property Group announced it was withdrawing its offer to buy GGP after being unable to come to agreement on a price. Instead, GGP has said it favors a plan led by Brookfield Asset Management that will provide a $6.5 billion investment and spin off GGP’s “noncore” assets into a new company. A bankruptcy judge approved that plan last week.
The company initially reported net income of $78.4 million, or 25 cents a share, but later revised the figure downward based on an accounting change related to a Brazilian affiliate.