General Growth Q2 FFO Rises 12%; Backs 2014 Outlook

(RTTNews) - Regional malls owner General Growth Properties, Inc. (GGP) reported Monday that funds from operations or FFO for the second quarter increased 12 percent from last year, reflecting improved revenues amid higher tenant sales.

FFO per share and quarterly revenues came in above analysts' expectations. The company also provided FFO guidance for the third quarter, in line with Street view, and reaffirmed FFO forecast for the full-year 2014.

The Chicago, Illinois-based second-largest U.S. mall owner reported FFO of $297.55 million or $0.31 per share for the second quarter, higher than $266.20 million or $0.27 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Net income for the quarter was $169.74 million or $0.18 per share, down from $205.39 million or $0.21 per share in the comparable quarter a year ago. Income from continuing operations plunged to $56.42 million or $0.05 per share from $217.26 million or $0.21 per share in the prior-year quarter.

Total revenues for the quarter increased to $617.62 million from $599.54 million in the same quarter last year. Three Wall Street analysts had a consensus revenue estimate of $606.61 million for the quarter.

Net operating income or NOI for the mall portfolio (same store NOI) increased 5.0 percent to $537 million from $512 million in the prior-year quarter.

Tenant sales on a trailing 12 month basis edged up 0.6 percent to $563 per square foot from the same quarter last year. Same Store mall leased percentage increased 60 basis points to 96.5 percent.

Operating income for the quarter grew to $208 million from $199 million in the prior-year quarter. Total expenses increased to $410 million from $401 million in the same period last year.

Looking ahead to the third quarter, the company expects FFO in a range of $0.30 to $0.32 per share, while analysts expect earnings of $0.32 per share.

For fiscal 2014, GGP continues to project FFO in the range of $1.30 to $1.32 per share. Street is currently looking for full-year 2014 earnings of $1.32 per share.

GGP closed Monday's regular trading session at $24.12, up $0.27 or 1.13% on a volume of 2.98 million shares.