GGP Ggp Inc. (delisted)

   By Maria Armental 
 

General Growth Properties Inc. (GGP) on Monday raised a key projection for the year even as revenue declined and profit fell sharply from a year-earlier quarter boosted by a hefty gain.

It now projects funds from operations of $1.52 to $1.56 a share, compared with its earlier view of $1.51 to $1.55. For the current quarter, General Growth expects FFO of 34 cents to 36 cents a share, in line with analysts' projected 35 cents, according to Thomson Reuters.

The second-largest mall owner in the U.S. by number of properties, General Growth has been shifting focus to high-end urban addresses, such as Manhattan's Fifth Avenue and Chicago's Michigan Avenue, since exiting bankruptcy in 2010.

Overall, General Growth reported a profit of $194 million, or 20 cents a share, compared with $289.5 million, or 30 cents a share, a year earlier. The year-earlier quarter's results included a tax-related gain of $77.2 million.

Funds from operations, a closely watched metric, rose to 43 cents a share, compared with 38 cents a year earlier. General Growth had projected 41 cents to 43 cents a share.

Revenue fell 4.2% to $644.6 million, compared with analysts' projected $629.3 million, according to Thomson Reuters.

For the latest quarter, rental rates for signed leases signed in the previous 12 months rose 10.8% to $64.92 a square foot, while tenant sales, excluding anchor stores, rose 2.8% to $21 billion.

Meanwhile, the percentage of leased properties on a same-store basis was 96.9%, compared with 97.2% a year earlier and 96.5% in the previous quarter.

Shares closed Monday at $28.08, down 7% over the past 12 months.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

February 01, 2016 16:45 ET (21:45 GMT)

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