Developers Mills Corp. saw its shares plummet 29 percent as they announced earnings will be down, their New Jersey Xanadu project will cost 2 billion instead of the estimated 1.3 billion, and they are restating earnings down 210 million. This triple play is forcing the company to sell assets and look for a potential buyer.
Mills shares fell $6.68, or 29 percent, to $15.91. Shares of the Chevy Chase-based company, which owns Arundel Mills and other very large malls, have dropped 62 percent this year, compared with an 11 percent increase in the Bloomberg Real Estate Investment Trust Index.
Mills, the subject of a Securities and Exchange Commission accounting investigation, said in a filing yesterday that cost overruns at its Xanadu entertainment development at the New Jersey Meadowlands Sports Complex would push the price to $2 billion from its earlier $1.3 billion estimate.
Mills also said it has no financing for the 4.8 million-square-foot retail-and-entertainment complex in which it has invested about $380 million. via the baltimoresun.com.
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