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Taubman Centers (TCO) Q2 FFO & Revenues Beat, Up Y/Y
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Retail real estate investment trust (“REIT”) Taubman Centers Inc.’s second-quarter 2016 funds from operations (“FFO”) per share of $1.04 beat the Zacks Consensus Estimate of 97 cents.
Also, the figure was up 36.8% from 76 cents earned a year ago. Results were driven by an increase in net operating income (“NOI”) and average rent at its centers.
Revenues came in at $158.9 million, beating the Zacks Consensus Estimate of $139 million and improving from around $132 million in the year-ago quarter.
Comparable center NOI, excluding lease cancellation income, rose 6.2% year over year; while average rent per square foot was $62.61, up 5.4% year over year. For the period ended Jun 30, 2016, trailing 12-month releasing spreads per square foot were 24.2%. For the second quarter, mall tenant sales per square foot decreased 0.7% year over year.
As of Jun 30, 2016, the comparable centers’ portfolio was 96.2% leased, denoting a 0.8% year-over-year decrease; while ending occupancy was 93.8%, up 0.8% year over year.
Liquidity
Taubman Centers exited second-quarter 2016 with cash and cash equivalents of $83.9 million, down from $206.6 million recorded at year-end 2015.
2016 Guidance
Taubman Centers has lowered its guidance for 2016. The company now expects 2016 FFO per share in the range of $3.75–$3.90, against the prior outlook of $3.75–$3.95. Adjusted FFO per share is projected in the range of $3.50–$3.60, against the prior outlook of $3.50–$3.65. The Zacks Consensus Estimate currently stands at $3.79.
This downward revision is due to lower lease cancellation income and unanticipated legal expenses during the reported quarter.
Our Viewpoint
Taubman Centers is expected to grow on the back of a solid retail portfolio and a strong tenant base, going forward. Yet, stiff competition and growing online sales remain as concerns.
Currently, Taubman Centers has a Zacks Rank #3 (Hold).
We now look forward to the earnings releases of General Growth Properties, Inc , Welltower Inc. and Vornado Realty Trust (VNO - Free Report) which are scheduled next week.
Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Taubman Centers (TCO) Q2 FFO & Revenues Beat, Up Y/Y
Retail real estate investment trust (“REIT”) Taubman Centers Inc.’s second-quarter 2016 funds from operations (“FFO”) per share of $1.04 beat the Zacks Consensus Estimate of 97 cents.
Also, the figure was up 36.8% from 76 cents earned a year ago. Results were driven by an increase in net operating income (“NOI”) and average rent at its centers.
Revenues came in at $158.9 million, beating the Zacks Consensus Estimate of $139 million and improving from around $132 million in the year-ago quarter.
NOI & Average Rent Up
Comparable center NOI, excluding lease cancellation income, rose 6.2% year over year; while average rent per square foot was $62.61, up 5.4% year over year. For the period ended Jun 30, 2016, trailing 12-month releasing spreads per square foot were 24.2%. For the second quarter, mall tenant sales per square foot decreased 0.7% year over year.
As of Jun 30, 2016, the comparable centers’ portfolio was 96.2% leased, denoting a 0.8% year-over-year decrease; while ending occupancy was 93.8%, up 0.8% year over year.
Liquidity
Taubman Centers exited second-quarter 2016 with cash and cash equivalents of $83.9 million, down from $206.6 million recorded at year-end 2015.
2016 Guidance
Taubman Centers has lowered its guidance for 2016. The company now expects 2016 FFO per share in the range of $3.75–$3.90, against the prior outlook of $3.75–$3.95. Adjusted FFO per share is projected in the range of $3.50–$3.60, against the prior outlook of $3.50–$3.65. The Zacks Consensus Estimate currently stands at $3.79.
This downward revision is due to lower lease cancellation income and unanticipated legal expenses during the reported quarter.
Our Viewpoint
Taubman Centers is expected to grow on the back of a solid retail portfolio and a strong tenant base, going forward. Yet, stiff competition and growing online sales remain as concerns.
TAUBMAN CENTERS Price, Consensus and EPS Surprise
TAUBMAN CENTERS Price, Consensus and EPS Surprise | TAUBMAN CENTERS Quote
Currently, Taubman Centers has a Zacks Rank #3 (Hold).
We now look forward to the earnings releases of General Growth Properties, Inc , Welltower Inc. and Vornado Realty Trust (VNO - Free Report) which are scheduled next week.
Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>