logo
Share SHARE
FONT-SIZE Plus   Neg

General Growth Q2 FFO Rises; Boosts 2013 Outlook, Dividend

REIT General Growth Properties, Inc. (GGP) reported Monday that funds from operations or FFO for the second quarter increased 17 percent from last year, reflecting improved revenues amid higher tenant sales and regional mall occupancy. FFO per share topped analysts' expectations, while quarterly revenues came in below their estimates. The company also provided FFO guidance for the third quarter, in line with Street view, and raised FFO forecast and dividend for the full-year 2013.

The Chicago, Illinois-based second-largest U.S. mall owner reported FFO of $267 million or $0.27 per share for the second quarter, higher than $228 million or $0.23 per share in the year-ago quarter.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Net income for the quarter was $205.39 million or $0.22 per share, compared to a net loss of $107.94 million or $0.12 per share in the comparable quarter a year ago.

Total revenues for the quarter grew to $613.23 million from $606.46 million in the same quarter last year. Five Wall Street analysts' had a consensus revenue estimate of $670.54 million for the quarter.

Net operating income for the mall portfolio or Mall NOI, increased 6.7 percent to $538 million from $504 million in the prior-year quarter. Comparable net operating income for the U.S. regional mall portfolio or same store NOI, also grew 6.8 percent to $514 million from last year.

Tenant sales on a trailing 12 month basis increased 5.1 percent to $560 per square foot from the same quarter last year. U.S. regional mall occupancy grew 160 basis points to 95.9 percent from last year.

Operating income for the quarter increased to $202 million from $193 million in the prior-year quarter. Meanwhile, total expenses edged down to $411 million from $413 million in the same period last year.

Further, the company's board of directors declared a third-quarter common stock dividend of $0.13 per share, payable on October 29 to stockholders of record on October 15, 2013, representing an increase of $0.01 per share from the prior quarter.

Looking ahead to the third quarter, the company expects FFO in a range of $0.26 to $0.28 per share, with analysts expect earnings of $0.27 per share.

For fiscal 2013, GGP raised its FFO guidance to a range of $1.13 to $1.15 per share from the previous estimate of $1.11 to $1.15 per share, while Street is currently looking for earnings of $1.11 per share.

GGP closed Monday's regular trading session at $21.21, down $0.42 or 1.94% on a volume of 2.76 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Taxi-hailing company Uber and its rival Careem has suspended their services in Abu Dhabi, the capital of the United Arab Emirates, since Saturday, reports said. Uber said the move was temporary, and did not explain the reason for suspension of services. Even after two years of thoroughly searching across the Indian Ocean, using modern technologies and devices, there is no clue about the Malaysian airline that vanished on March 8, 2014. Internet access is growing worldwide, but there is still a long way to go before the entire world is completely wired, a study from the Pew Research Center has found. The study also noted that men have greater access to the Internet than women in many nations.
comments powered by Disqus
Follow RTT