General Growth Properties Q3 FFO Rises - Update

(RTTNews) - General Growth Properties Inc. (GGP), a real estate investment trust focused on regional malls, Monday said third-quarter funds from operations increased from the prior year, amid a slide in revenues and lower expenses.

Funds from operations, or FFO, increased to $283 million or $0.29 per share from $231 million or $0.23 per share in the comparable quarter last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

Earnings attributable to common stockholders totaled $23.5 million or $0.02 per share, compared to a loss of $207.9 million or $0.23 per share last year.

Net income attributable to GGP, which was impacted primarily by depreciation expense and a gain from change in control of investment properties, was $27.5 million, as compared to a net loss attributable to GGP of $208 million in the prior year period

Revenues decreased to $620.70 million from $622.76 million last year. Analysts expected revenues of $636.87 million.

Revenue from Minimum rents was slightly lower at $392.93 million while that from Tenant recoveries was flat at $180.6 million. Overage rents declined to $9.97 million from $13.42 million. Total expenses declined to $423.27 million from $467.65 million in the previous year, as last year included impairment provisions for $32.10 million. Looking ahead to the fourth quarter, the company expects FFO to be in the range of $0.34 to $0.36 per share. Analysts currently expect earnings of $0.34 per share.

For fiscal 2013, the company expects FFO to be in the range of $1.15 to $1.17 per share. Wall Street looks for earnings of $1.14 per share for the year.

Further, the company announced that its Board of Directors declared a fourth quarter common stock dividend of $0.14 per share payable on January 2, 2014, to stockholders of record on December 13, 2013. This represents an increase of $0.01 per share or 8 percent growth from the prior quarter.

GGP closed marginally lower at $21.33 on Monday.