General Growth Q1 FFO Rises 16%; Boosts 2014 Outlook

(RTTNews) - General Growth Properties, Inc. (GGP) reported Monday that funds from operations or FFO for the first quarter increased 16 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 second quarter, in line with Street view, and raised FFO forecast for the full-year 2014.

The company noted that net income increased due to lower depreciation expense and a gain on extinguishment of debt.

The Chicago, Illinois-based second-largest U.S. mall owner reported FFO of $292.4 million or $0.31 per share for the first quarter, higher than $252.5 million or $0.25 per share in the year-ago quarter.

On average, 19 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 $124.05 million or $0.13 per share, compared to a net loss of $13.65 million or $0.01 per share in the comparable quarter a year ago. Income from continuing operations was $61.35 million or $0.06 per share, compared to a loss of $26.69 million or $0.03 per share in the prior-year quarter.

Total revenues for the quarter edged up to $631.9 million from $626.7 million in the same quarter last year. Six Wall Street analysts had a consensus revenue estimate of $619.60 million for the quarter.

Net operating income or NOI for the mall portfolio (same store NOI) increased 5.7 percent to $534 million from $505 million in the prior-year quarter.

Tenant sales on a trailing 12 month basis increased 1.2 percent to $565 per square foot from the same quarter last year. Same Store mall leased percentage increased 40 basis points to 96.2 percent.

Operating income for the quarter grew to $226 million from $198 million in the prior-year quarter. Meanwhile, total expenses decreased to $406 million from $429 million in the same period last year.

Looking ahead to the second quarter, the company expects FFO in a range of $0.29 to $0.31 per share, while analysts expect earnings of $0.31 per share.

For fiscal 2014, GGP raised its FFO guidance to a range of $1.30 to $1.32 per share from the prior forecast range of $1.27 to $1.31 per share. Street is currently looking for full-year 2014 earnings of $1.30 per share.

GGP closed Monday's regular trading session at $22.82, up $0.14 or 0.62% on a volume of 3.59 million shares.