General Growth Properties Inc
Latest General Growth Properties Inc News and Updates
Mortgage Applications Rose, Volatility Continued in January
According to the MBA (Mortgage Bankers Association) survey, mortgage applications rose by 8.8% for the week ending January 22.
GGP and Other Retail REITs Struggle to Exist in Digital Era
During 1Q17, General Growth Properties’ (GGP) occupancy rate (same-store leased percentage) fell to 95.9% from 96.6% in 1Q16.
How Does GGP Manage Its Balance Sheet?
GGP reached a debt-to-equity ratio 2.2x in 2014, its highest in the last five years.
Why rising asset prices are driving consumer confidence higher
The CCI is one of the oldest consumer surveys, originally started as a mail-in survey in 1967. It asks respondents whether certain conditions are positive, negative, or neutral.
How GGP Managed Its Expenses in 2Q17
In 2Q17, GGP (GGP) reported NOI (net operating income) of $551.0 million, which came in higher than the previous year at $554.0 million.
Why did Ackman’s Pershing Square exit General Growth Properties?
Last week, Pershing Square exited its entire stake in General Growth Properties.
Why Pershing Square increased its stake in Air Products and Chemicals
Pershing Square increased its position in Air Products and Chemicals, Inc. from 21.31% in 3Q 2013 to 27.91% in 4Q 2013.
Why the FOMC meeting will dominate the headlines this week
The upcoming week has some important economic data, like housing starts and industrial production, but the FOMC meeting will dominate. Further tapering is more or less assured. The taper should completely finish by the end of the year.
Simon Property Group faces competition from online retailers
Simon Property Group is by far the biggest shopping center REIT in the U.S., with a market capitalization of $53 billion. The next biggest REITs are less than half Simon’s size.
How to Invest in General Growth Properties through ETFs
General Growth Properties has a market cap of $22.1 billion, is part of S&P 500 index, and sees allocation in the major REIT-specific ETFs like ICF.
Does the rise of Amazon consign malls to the dustbin of history?
It’s conventional wisdom these days that e-commerce giants like Amazon.com means the end of the shopping mall (and brick-and-mortar retailers in general).
Must-know: Does e-commerce mean the end of malls?
General Growth CEO Sandeep Mathrani spent a lot of time on the conference call discussing the impact of e-commerce on his company (and mall REITs in general).
Why the Fed is remaining on its glide path after the jobs report
We had some other important data, primarily the ISM reports, which showed manufacturing accelerating. The ISM Services report showed that sector accelerating as well.
Assessing Macerich’s Robust Revenue Growth in Fiscal 2014
Macerich reported a consolidated revenue of $1.1 billion in 2014—a figure up by 7.4% over 2013. In 2013, its revenue growth was a whopping 29.1% over 2012.
How Rising Interest Rates Could Affect Equity Residential
The Fed indicated that it could implement two more rate hikes in 2017. The market speculates one of the rate hikes could occur in June, and the other one is expected to occur around December 2017.
Bonds rally on the slightly bullish FOMC minutes
Bonds rallied on the FOMC minutes, touching as low as 1.93% before selling off and finishing the day with a modest rally.
The push-pull effect of economic strength on the REIT sector
Economic forces that work at cross-purposes are driving the commercial REIT sector. Economic strength is good, but increasing interest rates are a negative.
Will Ackman’s bearish stance on Herbalife (HLF) finally pay off?
In this six part series, we’ll go through some of the main positions Pershing Square Capital Management LP traded this past quarter.
Change in the economy’s speed limit will affect commercial REITs
The REIT sector uses a lot of leverage. The REITs have to payout 90% of their income as dividends. As a result, they aren’t able to build up big cash cushions. This limitation leaves REITs at the mercy of the credit markets.
Is Simon Property a Good Value Stock at Current Multiples?
Simon Property’s TTM (trailing-12-month) price-to-FFO ratio is 15.0x.
Simon Property to Continue with Expansion Plan to Drive Growth
In its second-quarter 2018 earnings conference call, Simon Property (SPG) stated that it will continue investing in the redevelopment and expansion of its properties.
Rental and Leasing Activity Drove Simon Property’s Q2 Revenues
Simon Property (SPG) has reported five consecutive quarters of upbeat top-line performances.
Where Equity Residential’s Expenses Are Heading
Equity Residential’s (EQR) second-quarter operating expenses increased at a higher rate than the growth rate of same-store revenues.
Why Wall Street Loves Simon Property Group
Simon Property Group’s four back-to-back quarters of positive earnings surprises and its impressive outlook have made analysts optimistic.
Is Simon Property’s Premium Valuation Justified?
Simon Property Group (SPG) can be best evaluated by its price-to-FFO (price-to-funds from operations) multiple.
Expansion, Development Initiatives to Drive SPG’s Income
Analysts expect Simon Property Group (SPG) to report net operating income (or NOI) of $1.07 billion in the second quarter.
Will Expansion Plans Help Simon Property Drive Mall Traffic?
Simon Property Group (SPG) has been putting a lot of focus on the redevelopment and expansion of its properties.
Will Sales-Boosting Initiatives Drive Simon Property’s Q2 2018?
Simon Property Group is undertaking omni-channel retailing and portfolio-restructuring initiatives to maintain traffic amid the retail crisis.
What Do Wall Street Analysts Think of SPG?
Analysts gave SPG a mean price target of $188.10, implying an ~16.0% rise from its current level of $162.26.
Why SPG Is Commanding a Premium in Comparison to Its Peers
A higher price-to-FFO multiple for Simon Property means that it has the capacity to give a predictable return as well as consistent dividend yields to investors.
SPG’s Stable Dividend Policy
During 2016, SPG repurchased 1,409,197 shares at an average price of $181.14 per share.
Key Drivers Contributing to SPG’s Evolution
Simon Property Group’s capital expenditure increased ~15.0% in 2Q17 while it decreased ~1.2% in 3Q17.
Simon Property Group: Altering Strategies to Target Growth in 2018
Simon Property Group (SPG) is expected to pay a dividend of $7.15 per share in 2017, an increase of 10.0%. Its portfolio valuation rose 3.9% for 3Q17 on a year-over-year basis.
Commercial REITs Have Higher Debt-to-Equity Ratios
GGP’s (GGP) debt-to-equity was 1.55x for 2Q17, which was higher than the industrial mean of 1.07x. As of 2Q17, GGP had $2.0 billion of liquidity.
Development Activities of Commercial REITs in 2Q17
Simon Property Group (SPG) had 25 redevelopment expansion projects under construction as of 2Q17.
The Top Lines for REITs Simon Property, GGP, and Vornado
When we consider the top line performance of commercial REITs, we find that they have performed decently during the second quarter.
How GGP Stacks Up against Its Peers after 2Q17
GGP’s estimated price-to-FFO multiple for fiscal 2018 is 14.2x, which is at a premium compared to its peers.
GGP’s Generous Return to Stockholders in 2Q17
In 2Q17, GGP (GGP) paid $17.5 million in dividends to its shareholders. That was higher than $13.3 million paid a year ago.
GGP Has High Debt-to-Equity Ratio as of 2Q17: Can It Be Lowered?
GGP maintained a debt-to-equity ratio of 1.55x for 2Q17. That was higher than the industrial mean of 1.07x.
GGP Grew in 2Q17 Due to Development and Redevelopment
GGP has redeveloped its vacant spaces for non-retail uses such as restaurants, entertainment zones, fitness centers, and grocery stores.
What Caused GGP’s Soft Rent Growth in 2Q17?
GGP’s (GGP) minimum rent fell by $17.0 million in 2Q17, mainly because of dilution resulting from the sale of an interest in the Fashion Show Mall in Las Vegas n 2016.
GGP’s Revenue Rode High in 2Q17, Backed by New Leases
GGP’s minimum rent fell 3.9% to $349.2 million, and tenant recoveries fell 4.6% to $161.9 million. Overage rent fell 25.0% to $3.3 million.
GGP’s 2Q17 Results from an Investor’s Perspective
GGP (GGP) reported funds from operations (or FFO) of $0.35 per share, which was in line with Wall Street estimates. Adjusted FFO remained flat year-over-year.
How AvalonBay Communities Leverages Its Balance Sheet
AvalonBay has been able to maintain a low debt-to-equity ratio in the last five years. The company reported a debt-to-equity ratio of ~1.5x in 1Q17.
AvalonBay Communities: A Rewarding Stock for Shareholders
During 2016, AvalonBay Communities (AVB) repurchased 57,172 shares worth $0.6 million.
The Impact of Trump’s Proposed 2018 Budget on Residential REITs
According to President Trump’s proposed budget for fiscal 2018, the administration is expected to slash $6 million from the U.S. Department of Housing and Urban Development budget, decreasing its funding by 13.2% to $40.7 billion.
AvalonBay Communities and the Residential REIT Industry Overview
According to NHAB’s Housing Economics survey, housing starts are expected to rise 6.2% in 2017 and ~6.3% in 2018, backed by respective 9.6% and ~11.8% gains in single-family home sales.
GGP: A Rewarding Stock for Shareholders
General Growth Properties (GGP) has been paying dividends to its shareholders consistently in every quarter since it raised its dividend 11.1% during 4Q16 to $0.22.
GGP and Retail REITs: Malls Are Winning the Fight against Depletion
President Trump doesn’t appear to be inclined to support a higher minimum wage for workers. This could help retail REITs control their operating expenses, boosting their margins.
GGP: Redevelopment Helps Drive Traffic to Changing Malls
Mall owners such as GGP (GGP), Simon Property Group (SPG), DDR (DDR), and Kimco Realty (KIM) are redeveloping their vacant areas that were once occupied by anchor tenants.
GGP Inc.—A Growth Story amid Struggling Retail REITs
Despite the belief that US malls are giving way to e-commerce, malls are adapting to consumers’ changing needs. Mall owner GGP (GGP) has been able to maintain its earnings streak since 2012.
How Wall Street Analysts View Simon Property Group
Analysts gave SPG a mean price target of $202.45, implying an ~25.1% rise from its current level of $161.78.
Investing in Simon Property Group: Relative Valuation
Simon Property Group’s current price-to-FFO multiple is ~14.1x.
Can REITs Like Simon Property Group Survive the Fed’s Interest Rate Hikes?
The hawkish interest rate environment has added to the woes of mall owners like Simon Property (SPG), as well as the REIT industry.
Simon Property Group: A Growth Story amid Tremors in REITs
On April 27, Simon Property Group (SPG) reported 1Q17 earnings per share of $1.53, a 2% beat of the consensus estimate of $1.50.
General Growth Properties: Less Borrowing Bodes Well
To lower its effective borrowing costs and extend its maturity profile, GGP was active in unsecured and secured credit markets in fiscal 2015.
Simon’s Valuation Is Unlikely to Expand Further
Among the 25 analysts following Simon Property stock, 20 have assigned a “buy” rating. The company received no “sell” ratings from any analysts while five brokerages have assigned a “hold” rating.
General Growth Properties’ Revenue Fell in 4Q15
Minimum rent contributed to 60.1% of General Growth Properties’ total revenue in 4Q15.
Simon’s 4Q15 Earnings: Borrowing Cost Should Remain at Same Level
The total debt of Simon Property Group (SPG) increased from $20.8 billion as of the end of 4Q14 to $22.5 billion as of the end of 4Q15.
SPG’s 4Q15 Operating Metrics: Occupancy under Pressure
Simon Property Group (SPG) had 179 properties under US malls and premium outlets as of the end of 4Q15 compared to 177 as of the end of 4Q14.
Why Barbara Corcoran Credits Donald Trump for Changing Manhattan
In an interview with Wall Street Week, Corcoran was asked about her views on Trump. According to Corcoran, Trump is “due the credit of changing the view of Manhattan to the view of luxury Manhattan.”
Simon Property’s EBITDA Margin Likely to Improve in 4Q15
Wall Street analysts expect Simon Property’s EBITDA to be $1.1 billion in 4Q15 compared to $967.4 million in 4Q14. That would be a growth of 15.4%.
Impact of Consumer Spending on Retail REITs
Consumer spending and the overall health of the economy are the main drivers of retail REITs. The Fed’s decision to increase the interest rate could have a positive or negative impact on spending.
Macerich’s Highest EV-to-EBITDA Multiple Compared to Peers
Over the past eight years, Macerich’s EV-to-EBITDA has ranged between 11.9x–27.2x, with a current EV-to-EBITDA multiple of around 21.8x.
CBL & Associates Properties: Cost Structure Analysis
A look at CBL’s cost structure indicates that its EBITDA margin was lower than that of several close competitors, but higher than Taubman Center’s margin,
How CBL Plans to Increase Shareholder Returns
CBL’s (CBL) long-term strategy is to maximize shareholder returns while maintaining prudent risk profile.
A Look Into CBL & Associates’ Retail Mall Business
CBL & Associates’ retail mall business comprises four main property portfolios—shopping malls, associated centers, community centers, and office buildings.
CBL & Associates Properties: A Must-Know Company Overview
CBL & Associates Properties is the fifth-largest retail mall REIT (real estate investment trust) in the United States.
Why Long-Term Anchor Tenant Leases Are Beneficial to Macerich
Approximately 41% of Macerich’s anchor tenant leases are for more than five years. These long-term leases for anchor tenants bode well for retail REITs.
Why Macerich Rejected Simon Property’s Acquisition Offer
Macerich rejected Simon Property’s final bid in March 2015, explaining that the offer of $95.50 per share undervalued the company and its growth prospects.
A Breakdown of Macerich’s Retail Mall Business
By the end of fiscal 2014, Macerich either owned or had ownership interest in 60 shopping centers consisting of approximately 55 million square feet of GLA.
Investing in Macerich: a Must-Know Company Overview
Macerich is a self-managed REIT headquartered in Santa Monica, California. The company was founded in New York in 1964.
General Growth Properties’ Top Tenants in Retail
The malls in GGP’s portfolio receive a smaller percentage of their operating income from anchor tenants than from specialty retailers who lease space.
Introducing Simon Property Group: A Must-Know Company Overview
Headquartered in Indianapolis, Simon Property Group formed in 1993 when the shopping center division of Melvin Simon & Associates became publicly-traded.
Must-know: FOMC minutes will dominate the week ahead
Mortgage real estate investment trusts (or REITs), like American Capital Agency (AGNC) and Annaly (NLY), will focus on data that will move the bond market. The most important data point will be the FOMC minutes.
Why focus on new home sales and homebuilder earnings?
Last week didn’t have a lot of important economic data, but we did have some important releases. The Index of Leading Economic Indicators came in reasonably strong.
Week in Review: Bank earnings and the FOMC minutes
Last week was a slow week economically, which is usually the case in the week following the jobs report.
Why last week’s economic releases were stronger than expected
We had some important economic reports last week, with personal income, the ISM reports, and finally the jobs report.