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Why Is General Growth Properties (GGP) Down 3.3% Since its Last Earnings Report?

A month has gone by since the last earnings report for General Growth Properties, Inc.GGP . Shares have lost about 3.3% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is GGP 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's Q4 FFO Beats Estimates, Revenues Miss

GGP delivered fourth-quarter 2017 FFO per share of 48 cents, beating the Zacks Consensus Estimate by a cent. The figure also came in higher than the prior-year quarter tally of 43 cents.

Results reflect 1.3% growth in same-store NOI from the prior-year period.

The company posted revenues of $627.4 million, which missed the Zacks Consensus Estimate of $651.7 million. However, the figure compared favorably with the year-ago tally of $610.3 million.

For full-year 2017, FFO per share came in at $1.57, up 2.6% from the prior-year number of $1.53. However, revenues edged down 0.8% from the prior-year period to $2.3 billion.

Quarter in Detail

Same-store leased percentage was 96.7% 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 13.0%, when compared to the rental rate for expiring leases. Further, tenant sales (all less anchors) edged down 0.5% on a trailing 12-month basis, excluding apparel sales increased 1.9%. Moreover, holiday sales (November and December) inched up 0.5%, excluding apparel sales increased 3.4%.

GGP's development and redevelopment activities totaled $1.5 billion. Of this, projects worth $1.4 billion are under construction and $0.1 billion in the pipeline.

The company ended the year 2017 with cash and cash equivalents of $164.6 million, down from $474.8 million as of Dec 31, 2016.

Guidance

The company did not provide its guidance for 2018. It noted that the board received an unsolicited proposal from Brookfield Property Partners late in 2017.

Dividend Update

GGP also announced a first-quarter common stock dividend of 22 cents per share. This dividend will be paid on Apr 30 to stockholders of record on Apr 13, 2018.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

General Growth Properties, Inc. Price and Consensus

General Growth Properties, Inc. Price and Consensus | General Growth Properties, Inc. Quote

VGM Scores

At this time, GGP has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. Charting a somewhat similar path, 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 growth based on our styles scores.

Outlook

GGP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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General Growth Properties, Inc. (GGP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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