As part of its effort to enhance shareholder value,
Taubman Centers, Inc.
) disclosed a $200 million share buyback program. Authorized by
the company's Board of Directors, this share buyback program,
upon full execution, would reflect nearly 5% of the company's
outstanding common shares.
This strategic move is expected to be accretive to Taubman's
earnings and net asset value per share. and will help in lifting
the relatively undervalued share price. The company will finance
the share repurchase scheme with its general corporate funds but
may also borrow under its line of credit depending on several
Moreover, Taubman has established an impressive track record
in conservative capital management as well as returning cash to
shareholders through regular dividends. Recently, the company
declared a quarterly common stock dividend of 50 cents per share,
which is payable on Sep 30, 2013 to shareholders of record as of
Notably, the company never reduced its common dividend since
it went public in 1992 but has, on the other hand, hiked its
payout 16 times since then. Such efforts boost shareholders'
confidence on the stock.
Last month, Taubman reported second-quarter 2013 funds from
operations (FFO) per share of 75 cents, missing the Zacks
Consensus Estimate by 4 cents. The estimate miss was mainly due
to lower-than-expected revenues in the quarter. The company has,
however, reiterated its guidance range for 2013.
Taubman currently carries a Zacks Rank #3 (Hold). Other well
performing REITs include
EastGroup Properties Inc.
Highwoods Properties Inc.
Douglas Emmett Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization
and other non-cash expenses to net income.
DOUGLAS EMMETT (DEI): Free Stock Analysis
EASTGROUP PPTYS (EGP): Free Stock Analysis
HIGHWOODS PPTYS (HIW): Free Stock Analysis
TAUBMAN CENTERS (TCO): Free Stock Analysis
To read this article on Zacks.com click here.