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GGP Inc.

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General Growth Properties, which changed its name officially to GGP Inc. on Jan 27, came up with funds from operations (FFO) per share of $0.43. This was in line with the Zacks Consensus Estimate as well as the year-ago quarter tally. Same store net operating income (NOI) increased 5.1% from the prior-year period, while same store leased percentage of 97.2% reflected a 50 basis points expansion from the prior-quarter end. Notably, the new branding reflects the company’s emphasis as a retail real estate company. Amid an improving economy, the company’s portfolio of high quality retail properties is likely to generate decent cash flows, given its cluster of renowned tenants and efforts to support omni-channel retailing. However, mall traffic continues to suffer with online purchases growing by leaps and bounds. This trend is curtailing demand for the retail real estate space considerably. Rate hike have added to its woes.

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