GGP Ggp Inc. (delisted)

   By Josh Beckerman 
 

General Growth Properties Inc. posted higher funds from operations in the third quarter as initial rental rates and tenant sales increased.

General Growth, the nation's second-largest mall owner by number of properties, also increased its dividend by a penny to 19 cents.

The company has been slimming operations and accelerating its redevelopment pipeline since exiting bankruptcy in 2010. It has increased its focus on high-end urban locations, including Fifth Avenue in Manhattan and Michigan Avenue in Chicago.

Store closings by J.C. Penney Co. and Sears Holdings Corp. have posed a threat to the industry as the loss of anchor tenants can cause remaining stores to leave or renegotiate their leass. Upscale malls have fared better than the overall sector recently.

On Oct. 27, Simon Property Group Inc., the largest mall owner in the U.S., raised its full-year guidance as it posted a 4.9% increase in base minimum rent per square foot.

General Growth Properties said initial rental rates for leases beginning in the trailing 12 months on a suite-to-suite basis increased 9.7% to $63.30 per square foot compared with the rates for expiring leases.

The company reported a profit of $123.9 million, or 13 cents a share, compared with $74.6 million, or seven cents a share, a year earlier.

Funds from operations rose to 36 cents a share from 33 cents. General Growth had projected 34 cents to 36 cents a share.

Revenue fell 7% to $585.3 million. Analysts polled by Thomson Reuters expected $589 million.

The company reaffirmed its Aug. 3 projection of fourth-quarter FFO of 41 cents to 43 cents a share, resulting in a full-year estimate of $1.42 to $1.44. For 2016, it expects $1.51 to $1.55.

In August, General Growth added $500 million to its stock-buyback program.

Write to Josh Beckerman at josh.beckerman@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 02, 2015 17:02 ET (22:02 GMT)

GGP Inc. (NYSE:GGP)
Historical Stock Chart
From Aug 2024 to Sep 2024

GGP Inc. (NYSE:GGP)
Historical Stock Chart
From Sep 2023 to Sep 2024