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GGP Inc.

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Shares of GGP have outperformed the industry it belongs to in the past six months. Recently, Brookfield revised its offer with a higher cash component to acquire GGP. The company has a portfolio of high-quality retail properties across attractive locations in the United States. Its tenant roster includes a number of reputed names. Further, GGP focuses on omni-channel retailing and other initiatives, which is encouraging. However, declining traffic at malls, store closures and bankruptcies have emerged as a pressing concern for GGP, as the trend is curtailing demand for the retail real estate space. Though the company is making efforts to counter the pressure through various initiatives, the implementation of such measures requires a decent upfront cost and will likely limit any robust growth in its profit margins in the near term.

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