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1 DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
AUGUST2,2016
(GGP) 2Q16 Results: General Growth Properties Lowers FY16 Outlook on Higher Transactions
• Forfiscal2Q16,GeneralGrowthPropertiesreporteddilutedFFOof$0.35,up6.1%yearoveryearbutslightlybelowtheconsensusestimateof$0.36.Thecompanyreportedrevenuesof$574.6million,down0.9%yearoveryearandbelowthe$580.4millionconsensusestimate.
• ThecompanyreviseditsFY16outlook;itguidedforanFFOincreaseof$0.01relatedtooperationsanda$0.02decreasefromtransactions.ThecompanynowexpectsFFOof$1.51–$1.55,downfrom$1.52–$1.56previouslyandversustheconsensusestimateof$1.55.
Thecompanyexpectsfiscal3Q16FFOof$0.34–$0.36,comparedwiththeconsensusestimateof$0.37.
Figure1.GeneralGrowthPropertiesKeyMetrics
2Q16 2Q15 YoYChange
Revenues(USDMil.) $574.6 $580.0 (0.9)%
DilutedFFO(USD) $0.35 $0.33 6.1%Source:Companyreports
2Q16RESULTS
GeneralGrowthPropertiesreportedfiscal2Q16revenuesof$574.6million,down0.9%yearoveryearandbelowthe$580.4millionconsensusestimate.DilutedFFOwas$0.35,up6.1%yearoveryearbutslightlybelowtheconsensusestimate.
Thesame-storeleasedpercentagewas96.1%forthequarter,upslightlyfrom96.0%intheyear-agoperiod.Tenantsales,excludinganchorstores,roseby2.8%,to$2.61billion,onatrailing12-monthbasis.
Initialrentalratesforsignedleasesthathavecommencedinthetrailing12monthsonasuite-to-suitebasisincreasedby13.7%comparedtotherentalrateforexpiringleases.
Same-storenetoperatingincomeincreasedby4.0%yearoveryear,to$555.3million.
GeneralGrowthPropertiesisthesecond-largestmallownerintheUSbynumberofproperties,andhasbeenshiftingitsfocustohigh-endurbanaddressessuchasManhattan’sFifthAvenueandChicago’sMichiganAvenue.Thecompanyacquireda
2 DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
AUGUST2,2016
50%interestin218West57thStreetinNewYorkCityforapproximately$41million.Itsolditsinterestinanurbanretailpropertyandanofficebuilding,andreceivedapproximately$150millioninreturn.Priortoquarter-end,thecompanysolda50%steakinhigh-endshoppingmallontheLasVegasStrip,$1.25billion.
2016OUTLOOK
ThecompanyupdateditsguidanceforFY16andnowexpectsFFOperdilutedcommonshareof$1.51–$1.55,downfrom$1.52–$1.56previously.
Thechangesinthecompany’sguidanceincludea$0.02dilutionfromtransactionsdiscussedabove,whichisexpectedtobepartiallyoffsetbyanincreaseof$0.01relatedtooperations.
3 DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.
AUGUST2,2016
DeborahWeinswig,CPAExecutiveDirector—HeadofGlobalRetail&TechnologyFungBusinessIntelligenceCentreNewYork:917.655.6790HongKong:85261191779China:8618614203016deborahweinswig@[email protected]
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