General Growth Q4 FFO Rises 11%; Guides Q1 In Line, 2014 Above

(RTTNews) - REIT General Growth Properties, Inc. (GGP) reported Monday that funds from operations or FFO for the fourth quarter increased 11 percent from last year, reflecting improved revenues amid higher tenant sales and regional mall occupancy. FFO per share and quarterly revenues came in above analysts' expectations. The company also provided FFO guidance for the first quarter, in line, and for full-year 2013, above Street view.

The Chicago, Illinois-based second-largest U.S. mall owner reported FFO of $346.66 million or $0.36 per share for the fourth quarter, higher than $311.37 million or $0.31 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Net income for the quarter nearly doubled to $73.21 million or $0.07 per share from $32.20 million or $0.04 per share in the comparable quarter a year ago. Income from continuing operations was $88.25 million or $0.08 per share, compared to a loss of $24.22 million or $0.02 per share in the prior-year quarter.

Total revenues for the quarter grew to $681.36 million from $663.76 million in the same quarter last year. Six Wall Street analysts had a consensus revenue estimate of $664.08 million for the quarter.

Net operating income for the mall portfolio or Mall NOI, increased 6.0 percent to $582 million from $548 million in the prior-year quarter.

Tenant sales on a trailing 12 month basis increased 3.6 percent to $564 per square foot from the same quarter last year. U.S. regional mall occupancy improved 100 basis points to 97.1 percent from last year.

Operating income for the quarter declined to $238 million from $251 million in the prior-year quarter. Meanwhile, total expenses increased to $444 million from $413 million in the same period last year.

For fiscal 2013, the company reported FFO of $1.15 billion or $1.16 per share, higher than $9941.72 million or $0.98 per share in the year ago. Analysts expected the company to report earnings of $1.15 per share for the year.

Net income for the year was $288.45 million or $0.31 per share, compared to a net loss of $481.23 million or $0.52 per share in the prior year.

Total revenues for the full year grew to $2.53 billion from $2.47 million in the previous year. Street was looking for full-year 2013 revenues of $2.50 billion.

Looking ahead to the first quarter, the company expects FFO in a range of $0.29 to $0.30 per share, with analysts expect earnings of $0.29 per share.

For fiscal 2013, GGP anticipates FFO in the range of $1.27 to $1.31 per share, while Street is currently looking for earnings of $1.26 per share.

GGP closed Monday's regular trading session at $19.80, down $0.34 or 1.69% on a volume of 6.36 million shares.