I need someone to explain to me how a good or great economy hurts GGP. GGP's debt is now, I believe, 100% fixed rate (less the $300mm revolver which is undrawn anyway). The have very little to nil refinancing needs over the next 5 years. So higher rates directly hurt GGP how?
ggp was planning to refinance or resecuritize those extended debt. granted they have decent low rates but those were haggled in haste during bk. terms of the loan allowed ggp to replace them with little penalty. and things looked great about a month ago when ggp had announced intention to replace those loans with new loans or cmbs packaging. rates were lowest in few decades at that time. then couple weeks ago rates started going up. we don't know the status of the refinancing yet but rising rates have detrimental effect on ggp's ability to haggle. i mean, its not all that bad since current blended rates are decent but ggp could have replaced them with even better terms.
in re: to good econ vs great econ, i think they are talking about opportunity cost. if econ is steady and good, ggp will rise with rest of the market. but growth stocks will look more attractive during an economic boom and conservative investment like reit may stagnate as people funnel more funds into growth stock. that will detrimentally affect ggp share price rise. look at late 1990's during the dot.com hey day. reits went nowhere fast.