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GGP Down 2.8% Since Earnings Report: Can It Rebound?

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More than a month has gone by since the last earnings report for GGP Inc. (GGP - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

GGP Inc.'s Q2 FFO Beats, NOI Increases, Revenues Lag

GGP delivered second-quarter 2017 FFO per share of $0.40, beating the Zacks Consensus Estimate of $0.35. The figure also came in higher than the prior-year quarter tally of $0.36.

Results reflect 0.7% growth in same store NOI from the prior-year period.

However, the company posted revenues of $555.8 million, which missed the Zacks Consensus Estimate of $576.7 million. The figure also compared unfavorably with the year-ago number of $574.6 million.

Quarter in Details

Same Store leased percentage was 95.7% at quarter end. Initial NOI weighted rental rates for signed leases that have commenced in the trailing 12 months (on a suite-to-suite basis), expanded 13.4% when compared to the rental rate for expiring leases. Further, tenant sales (all less anchors) inched up 0.8% on a trailing 12-month basis.

The company ended the quarter with cash and cash equivalents of $227.6 million, down from $474.8 million as of Dec 31, 2016.

Portfolio Activity

During the second quarter, the company acquired its joint-venture partner’s stake in Neshaminy Mall in Bensalem, PA, and the Younkers anchor box at Jordan Creek Town Center in West Des Moines, IA. On the other hand, the company sold Red Cliffs Mall in St. George, UT, for around $39.1 million.

GGP’s development and redevelopment activities totaled $1.5 billion. Of this, projects worth $1.3 billion are under construction and $0.2 billion is in the pipeline.

Dividend Update

GGP announced a third-quarter common stock dividend of $0.22 per share, indicating an increase of 10% year over year, but flat sequentially. This amount is payable on Oct 31 to stockholders of record as of Oct 13, 2017.

Guidance

For full-year 2017, GGP expects FFO per share in the range of $1.59–$1.63.

For third-quarter 2017, the company projects FFO per share in the range of $0.35–$0.37.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

GGP Inc. Price and Consensus

 

GGP Inc. Price and Consensus | GGP Inc. Quote

VGM Scores

At this time, GGP's stock has a subpar Growth score of D, however its Momentum is doing a lot better with a B. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.




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