General Growth Properties Gives Downbeat Guidance Following Quarterly Profit Decline
August 01 2016 - 5:58PM
Dow Jones News
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)
Copyright (c) 2016 Dow Jones & Company, Inc.
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