Revenue and earnings
GGP (GGP), a retail REIT engaged in US real estate investment, saw its revenue fall 2% in 2016, compared with 5% in 2015. Growth was driven by management fees and other corporate revenue, and offset by minimum rent, tenant recoveries, and overage rent.
Its operating expenses rose 4% in 2016 after a 7% fall in 2015. As a result, its operating income fell 13% in 2016 compared with 2% in 2015. Its interest expenses fell 13% in 2015 and 6% in 2016. In 2016, the company posted a gain on foreign currency, after two years of loss, and recorded some gains from changes in the control of investment properties. Collectively, these losses and gains translated into a 6% fall in its EPS (earnings per share) in 2016, after 107% EPS growth in 2015. The company’s FFO (funds from operations) grew in 2016 after a fall in 2015.
Revenue and EPS in 1H17
In 1H17, GGP’s revenue fell 5% due to a decline in its minimum rent, tenant recoveries, overage rent, management fees, and other corporate revenue. Its operating expenses fell 6%, its operating income fell 4%, and its interest expenses fell 10%. These declines, in addition to a loss from changes in the control of investment properties, translated into a 38% fall in its EPS. The company’s FFO rose 2%.
The company has consistently increased its dividend, and it rose phenomenally between 1H16 and 1H17.
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