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Taubman's (TCO) Q1 FFO & Revenues Beat Estimates, Up Y/Y
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Retail real estate investment trust (REIT) Taubman Centers Inc.’s first-quarter 2017 adjusted funds from operations (FFO) per share of 92 cents surpassed the the Zacks Consensus Estimate of 89 cents. The FFO per share figure also came in 9.5% higher than the prior-year quarter figure.
The quarter experienced higher rents and recoveries from the tenants.
Revenues came in at $149.1 million, beating the Zacks Consensus Estimate of $142.1 million and improving 6.9% from around $139.5 million in the prior-year quarter.
Quarter in Detail
Comparable center NOI, excluding lease cancellation income, was up 2.8% year over year, while average rent per square foot was $60.60, up 1% from year over year. For the period ended Mar 31, 2017, the trailing 12-month releasing spreads per square foot were 16.3%.
For the first quarter, mall tenant sales per square foot were up 1.2%. Further, trailing twelve-month mall tenant sales per square foot of $776 denoted growth of about 0.9% and reflected solid growth in the first quarter.
However, as of Mar 31, 2017, the comparable centers’ portfolio was 93.9% leased, denoting a 1.5% from Mar 31, 2016, mainly on account of the bankruptcies and closures of Sports Authority and The Limited.
Liquidity
Taubman Centers exited first-quarter 2017 with cash and cash equivalents of $51.1 million, up from $40.6 million recorded at year-end 2016.
Guidance
Taubman Centers expects 2017 adjusted FFO per share in the range of $3.67–$3.82. Also, it expected the FFO per share in the range of $3.60–$3.75. The Zacks Consensus Estimate is currently pegged at $3.75.
The full-year FFO per share guidance is backed by assumptions of comparable center NOI growth, excluding lease cancellation income, of about 3.5% for the year.
Our Viewpoint
We are encouraged with the FFO per share beat at Taubman Centers in the first quarter. The company’s solid retail portfolio, high-quality retailers and diligent restructuring initiatives are likely to support its growth. However, dwindling mall traffic and store closures amid aggressive growth in online sales have kept the retail REITs on tenterhooks. This has emerged as a pressing concern for Taubman.
Taubman Centers, Inc. Price, Consensus and EPS Surprise
We now look forward to the earnings releases of GGP Inc. , Vornado Realty Trust (VNO - Free Report) and HCP, Inc. (HCP - Free Report) , which are expected 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's (TCO) Q1 FFO & Revenues Beat Estimates, Up Y/Y
Retail real estate investment trust (REIT) Taubman Centers Inc.’s first-quarter 2017 adjusted funds from operations (FFO) per share of 92 cents surpassed the the Zacks Consensus Estimate of 89 cents. The FFO per share figure also came in 9.5% higher than the prior-year quarter figure.
The quarter experienced higher rents and recoveries from the tenants.
Revenues came in at $149.1 million, beating the Zacks Consensus Estimate of $142.1 million and improving 6.9% from around $139.5 million in the prior-year quarter.
Quarter in Detail
Comparable center NOI, excluding lease cancellation income, was up 2.8% year over year, while average rent per square foot was $60.60, up 1% from year over year. For the period ended Mar 31, 2017, the trailing 12-month releasing spreads per square foot were 16.3%.
For the first quarter, mall tenant sales per square foot were up 1.2%. Further, trailing twelve-month mall tenant sales per square foot of $776 denoted growth of about 0.9% and reflected solid growth in the first quarter.
However, as of Mar 31, 2017, the comparable centers’ portfolio was 93.9% leased, denoting a 1.5% from Mar 31, 2016, mainly on account of the bankruptcies and closures of Sports Authority and The Limited.
Liquidity
Taubman Centers exited first-quarter 2017 with cash and cash equivalents of $51.1 million, up from $40.6 million recorded at year-end 2016.
Guidance
Taubman Centers expects 2017 adjusted FFO per share in the range of $3.67–$3.82. Also, it expected the FFO per share in the range of $3.60–$3.75. The Zacks Consensus Estimate is currently pegged at $3.75.
The full-year FFO per share guidance is backed by assumptions of comparable center NOI growth, excluding lease cancellation income, of about 3.5% for the year.
Our Viewpoint
We are encouraged with the FFO per share beat at Taubman Centers in the first quarter. The company’s solid retail portfolio, high-quality retailers and diligent restructuring initiatives are likely to support its growth. However, dwindling mall traffic and store closures amid aggressive growth in online sales have kept the retail REITs on tenterhooks. This has emerged as a pressing concern for Taubman.
Taubman Centers, Inc. Price, Consensus and EPS Surprise
Taubman Centers, Inc. Price, Consensus and EPS Surprise | Taubman Centers, Inc. Quote
Currently, Taubman Centers has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of GGP Inc. , Vornado Realty Trust (VNO - Free Report) and HCP, Inc. (HCP - Free Report) , which are expected 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.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>