Taubman quarterly earnings surpass estimates
Taubman reported fourth-quarter adjusted funds from operations of $55.7 million, or 93 cents a share, down from $59.6 million, or $1.06 per share, a year earlier when the company recorded receipt of a large lease cancellation fee that amounted to 15 cents per share.
Analysts on average expected 85 cents per share for the fourth quarter, according to Thomson Reuters I/B/E/S.
Funds from operations, or FFO, is an industry measure that usually excludes profit and losses from property sales and depreciation.
Adjusted FFO excludes acquisitions and gains from early extinguishment of debt.
Sales at its luxury properties, which includes The Mall at Short Hills in New Jersey and Beverly Center in Los Angeles, rose to $641 per square foot, a company record. Larger rival Simon Property Group earlier reported that tenant sales that rose 10.7 percent to an average of $536 per square foot.
"The very high end is doing very well. That's going to be the theme and stronger centers are getting stronger," Jeung Hyun, portfolio manager at Adelante Capital Management.
During the fourth quarter, net operating income, an indicator of how well the properties are managed, rose 4.9 percent.
Leased space at Taubman's malls grew to 92.4 percent at the end of the year, up from 92 percent at the end of 2010.
Average rent rose to $45.22 square foot, up 3.6 percent from a year earlier, while rents for new leases were up 13.1 percent form those a year ago.
For 2012, the Bloomfield Hills, Michigan-based company, said it sees FFO in the range of $3.14 to $3.24 per share, while analysts estimate $3.07 per share.
The forecast includes the results from City Creek Center in Salt Lake City, set to open in March, the first large U.S. mall to open in nearly three years.
After hours, Taubman shares traded at $68.14 per share, slightly below their close of $68.15 on the New York Stock Exchange. (Reporting By Ilaina Jonas in New York; Editing by Tim Dobbyn and Steve Orlofsky)
© Thomson Reuters 2013 All rights reserved.