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AQR Capital ups position in Glimcher Realty Trust

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AQR ups stake in Glimcher Realty Trust

AQR Capital increased its position in Glimcher Realty during the third quarter of 2014. The stock accounts for 0.35% of the total portfolio, up from 0.009% of the fund’s 2Q14 portfolio.

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About Glimcher Realty Trust

Glimcher Realty Trust is one of the leading real estate investment trusts or REITs. It owns, manages, and develops a portfolio of retail properties. As of September 30, 2014, Glimcher has a portfolio of 23 properties with ~18.4 million square feet of gross leasable area. The properties include:

  • Open-air centers
  • Enclosed regional malls
  • Outlet centers
  • Community shopping centers

Washington Prime Group to acquire Glimcher

In September, Washington Prime Group Inc. (WPG) and Glimcher entered into a definitive agreement under which WPG will acquire Glimcher in a stock and cash transaction. The total transaction value, including the assumption of debt, is ~$4.3 billion.

For each Glimcher share, shareholders will receive $10.40 in cash and 0.1989 of a share in WPG stock. The board of directors of both companies unanimously approved the transaction.

The new company, WP Glimcher, will contain ~68 million square feet of gross leasable area with a portfolio of 119 properties. The company will trade on the New York Stock Exchange under the ticker “WPG.” The transaction is expected to close in the first quarter of 2015.

Additionally, as part of the transaction, Simon Property Group, Inc. entered into a definitive agreement under which Simon will acquire two properties that Glimcher currently owns. The sale will occur at an aggregate cash purchase price of $1.09 billion.

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3Q results

GRT reported revenue of $98.3 million, compared to $93.1 million in 3Q13. Net income was $8.2 million, or $0.06 per share, compared to a net loss of $5 million, or $0.03 per share, in 3Q13. The revenue increase was primarily a result of the $16.3 million gain on extinguishment of debt incurred when Glimcher disposed of Eastland Mall by a deed in lieu of foreclosure in the third quarter. This gain was partially offset by $5.6 million of merger expenses related to the pending acquisition of GRT by WPG.

On December 17, Glimcher declared a quarterly cash dividend of $0.10 per share. The company owns a 52% interest in a joint venture or JV. Subsidiary of the JV is under contract to sell Puente Hills Mall in California for $100 million. The sale is expected to close during 4Q14.

AQR Capital’s other 3Q14 positions

During 3Q14, AQR initiated a position in Bally Technologies. It also increased its position in Gilead Sciences Inc. (GILD), Shire Plc (SHPG), Intel Corp (INTC), and Biogen Idec Inc. (BIIB). The firm sold positions in AstraZeneca (AZN) and Riverbed Technology Inc. (RVBD).

The next part of this series will explore AQR’s position change in Biogen Idec.

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