GGP Ggp Inc. (delisted)

   By Maria Armental 
 

General Growth Properties Inc. (GGP) on Monday gave downbeat guidance as it reported a third straight decline in quarterly profit.

The Chicago real-estate investment trust lowered its projected funds from operations for the year, a key industry metric, to between $1.51 and $1.55 a share, while increasing projected profit to 70 cents to 74 cents a share. It had previously projected 56 cents to 60 cents a share in profit and $1.52 to $1.56 in FFO.

Last year, it reported a profit of $1.43 a share and FFO of $1.44 a share.

For the current quarter, General Growth expects 10 cents to 12 cents in profit and FFO of 34 cents to 36 cents a share, compared with a projected profit of 14 cents and FFO of 37 cents a share, according to analysts surveyed by Thomson Reuters.

The second-largest mall owner in the U.S. by number of properties, General Growth exited bankruptcy protection in 2010 and returned to profit three years later.

Canada's Brookfield Asset Management Inc., which led General Growth's restructuring, remains the largest shareholder with control over a roughly 40% stake.

Over all, General Growth reported a profit of $185.9 million, or 19 cents a share, compared with $421.9 million, or 44 cents a share, a year earlier.

Funds from operations, meanwhile, rose to 35 cents a share, from 33 cents a year earlier and in line with company's projections.

Revenue fell 1% to $574.6 million, missing analysts' projected $580.4 million.

Rental rates for signed leases signed in the previous 12 months rose 14%, the company said, while tenant sales, excluding anchor stores, rose 2.8%, also on a trailing 12-month basis.

Meanwhile, the percentage of leased properties on a same-store basis was 96.1%, compared with 95.9% in the previous quarter and 96% in the year-ago period.

Expenses rose 1.7% as the company set aside money as a provision for impairment.

Shares, which set a 52-week-high Monday during regular trading, were flat after hours.

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

(END) Dow Jones Newswires

August 01, 2016 17:43 ET (21:43 GMT)

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