General Growth Emerging Next Week, Buy? (GGP)

General Growth Properties Inc. GGP is set to emerge from bankruptcy next week, on November 8. Investors or traders may want to look at the REIT for a couple of reasons. The first reason is the strength in Simon Propety Group's SPG earnings yesterday. SPG knocked the cover off the ball, blowing out earnings, and announced it was raising its dividend. General Growth is a peer to Simon Property and hasn't been able to really take advantage of the opportunities Simon Property has, as it's been in bankruptcy. Once General Growth emerges, it will be able to make renovations and improvements to its roughly 170 malls that it couldn't do while it was in bankruptcy. This is illegal according to bankruptcy laws. Once these improvements are made, it will be able to attract better tenants, charge higher rates and be able to compete with Simon Property. Another reason is that since GGP has been in bankruptcy, very few can buy shares in the company. This means mutual funds, index funds, ETFs can not buy shares in the company until it emerges. Once it emerges, there will be a whoosh to buy GGP, as it is the 2nd largest mall REIT behind Simon Property. The company is also shedding its non core, non performing assets into a spinoff to be run by Bill Ackman. It will be known as The Howard Hughes Corp. Investors may want to consider looking at adding to existing positions or starting new ones now that all the hurdles have been cleared with regards to bankruptcy. Disclosure: long GGP