Shares of Taubman Centers Inc. ( TCO ) crafted a new
52-week high, touching $88.15 in the middle of the trading session
on May 14. The closing price of this Michigan-based real estate
investment trust (REIT) was $87.47, representing a decent
year-to-date return of 9.5%. The trading volume for the session was
over 0.7 million shares.DDR CORP (DDR): Free Stock Analysis ReportHEALTH CR REIT (HCN): Free Stock Analysis
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However, considering the estimate revision trends over the last 30
days, we do not expect any significant price appreciation for this
Zacks Ranks #3 (Hold) stock.
Factors to Consider
Impressive first-quarter 2013 results - including an earnings
surprise of 7.1% and improvement in rents, occupancies and solid
recoveries - as well as a solid portfolio of the best-in-class
retail malls that generate robust mall tenant sales were the
primary growth drivers for Taubman.
During first-quarter 2013, the company continued its multi-pronged
growth strategy with steady development work across outlet centers
and traditional shopping centers both on the domestic frontier and
international territories. Also, the company has a healthy balance
sheet with adequate liquidity.
On the flip side, the possibility of store closures at many
Taubman centers due to lease terminations and uncertain economic
environment undermine its future growth potential. Also, increase
in consumer purchases through catalogs and the Internet could hurt
demand for its properties.
On Apr 25, Taubman reported decent first-quarter 2013 results with
FFO (funds from operations) of 90 cents per share, beating the
Zacks Consensus Estimate of 84 cents by 7.1% and the year-ago FFO
per share of 75 cents by 20.0%. The better-than-expected results
were primarily driven by increase in rents and solid
Additionally, Taubman has now delivered positive earnings
surprises in the last 4 straight quarters, with an average beat of
Over the last 30 days, the Zacks Consensus Estimate for full-year
2013 FFO per share moved up 0.5% to $3.66. On the other hand, the
Zacks Consensus Estimate for 2014 FFO has moved down 0.8% to $3.88
A number of other REITs also touched 52-week highs on the same
day. These include DDR Corp. ( DDR ), Health
Care REIT Inc. ( HCN ) and
Liberty Property Trust ( LRY ).
Note: Funds from operations, a widely accepted and reported
measure of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.