Glimcher Realty Trust Reports Operating Results (10-Q)

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Apr 29, 2011
Glimcher Realty Trust (GRT, Financial) filed Quarterly Report for the period ended 2011-03-31.

Glimcher Realty Trust has a market cap of $957 million; its shares were traded at around $9.58 with a P/E ratio of 12.9 and P/S ratio of 3.5. The dividend yield of Glimcher Realty Trust stocks is 4.2%.

Highlight of Business Operations:

Total revenues decreased 12.9%, or $9.7 million, for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. Of this amount, minimum rents decreased $7.1 million, percentage rents increased $476,000, tenant reimbursements decreased $3.5 million, and other income increased $449,000.

Licensing agreement income relates to our tenants with rental agreement terms of less than thirteen months. We experienced a $152,000 decrease in licensing agreement income for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. With respect to the aggregate decrease in licensing agreement income, $368,000 can be attributed to the conveyance of both Lloyd and WestShore to the Blackstone Venture. The remaining Properties in the portfolio experienced an aggregate increase in licensing agreement income of $216,000. We also recorded a $547,000 gain in 2010 when we sold 60% of both Lloyd and WestShore in connection with the formation of the Blackstone Venture. Fee and service income increased $1.5 million during the three months ended March 31, 2011 compared to the same period ended March 31, 2010. This increase primarily relates to services provided to the joint venture (“Pearlridge Venture”) that owns Pearlridge Center, a regional mall located in Hawaii, as well as the Blackstone Venture.

Total expenses decreased 13.1%, or $7.2 million, for the three months ended March 31, 2011 compared to the three months ended March 31, 2010. Property operating expenses decreased $2.1 million, real estate taxes decreased $1.3 million, the provision for doubtful accounts decreased $332,000, other operating expenses decreased $116,000, depreciation and amortization decreased $3.5 million and general and administrative costs increased $95,000.

Depreciation and amortization expense decreased by $3.5 million, or 17.5%, for the three months ended March 31, 2011 as compared to the same period ended March 31, 2010. We experienced a $3.3 million decrease in depreciation and amortization as a result of the conveyance of both Lloyd and WestShore to the Blackstone Venture. Also, during 2010, we wrote off improvements related to vacating tenants primarily at Merritt Square Mall, Eastland Mall, and The Mall at Fairfield Commons totaling $1.3 million. Offsetting these decreases was a $1.4 million increase in depreciation expense associated with Scottsdale Quarter. This increase can be attributed to an increase in the number of assets placed in service at this development.

Total revenues from discontinued operations were $0 and $19,000 for the three months ended March 31, 2011 and 2010, respectively. The net loss from discontinued operations during the three months ended March 31, 2011 and 2010 was $55,000 and $266,000, respectively. During the three months ended March 31, 2010, we incurred a $215,000 loss in settling a lawsuit on a property that was sold in a previous period.

The allocation to noncontrolling interest was $(182,000) and $(1.3) million as of March 31, 2011 and 2010, respectively. The allocation to noncontrolling interest for the three months ended March 31, 2011 represents the aggregate partnership interest within the Operating Partnership that is held by certain limited partners. Of the $1.3 million that was allocated to noncontrolling interest for the three months ended March 31, 2010, approximately $1.1 million represents 50% of the net loss from Scottsdale Quarter that was allocated to our former noncontrolling partner. The loss is driven primarily by non-cash items including $363,000 of depreciation expense and $255,000 of straight-line rent expense associated with a ground lease, as well as interest expense of $518,000. During the fourth quarter of 2010, we purchased our partner s 50% joint venture interest in Scottsdale Quarter, thus eliminating this allocation.

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