Tuesday, July 29, 2014         

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

Ala Moana's owner sees better quarter

By Brian Louis

Bloomberg News


General Growth Properties Inc., the second-biggest U.S. shopping mall owner and the owner of Ala Moana Center, said funds from operations excluding some items rose in the first quarter as tenant sales climbed amid increased consumer spending.

The company's so-called core FFO rose to $222.1 million, or 22 cents a share, from $208.2 million, or 21 cents, a year earlier, the Chicago-based company said Tuesday in a statement. Analysts expected core FFO, which excludes items such as discontinued operations and interest expense on repaid debt, of 21 cents a share, the average of nine estimates in a Bloomberg survey. FFO is a measure of a property owner's ability to generate cash.

The real estate investment trust in January completed its spinoff of 30 malls that have lower tenant sales into a company known as Rouse Properties Inc., allowing General Growth to focus on its better-performing retail centers.

(Among General Growth's best properties is Ala Moana. In February the company disclosed plans to buy out one of the mall's anchor tenants, Sears, to redevelop the store and possibly surrounding space for more profitable use.

General Growth intends to spend $500 million to buy back Sears' lease and remake the Ewa end of the state's largest shopping center. Sears expects to close the store in early 2014.

The mall owner also recently arranged a new $1.4 billion mortgage on Ala Moana at more attractive interest and maturity terms, a deal that should save General Growth money.)

Mall owners, particularly those with top-tier properties, are benefiting from rising rents and occupancies, said Keith Bokota, an analyst at Des Moines, Iowa-based Principal Global Investors.

"Malls have done pretty well," Bokota said in a telephone interview Monday. "We've seen property-level income growing at a pretty good clip."

Principal Financial owned 7.7 million shares of General Growth at the end of December, according to data compiled by Bloomberg.

The results were released after the close of trading. General Growth's stock rose 12 cents to $17.92 on the New York Stock Exchange.

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
Changalang wrote:
Goldman Sachs is still number 1. Biggest debt restructure of 2012.
on May 2,2012 | 03:55PM
HealthyandHappy wrote:
Do you get Obama puppets at the Goldman Sachs store?
on May 2,2012 | 07:46PM
Latest News/Updates
Political Radar
`My side’

Political Radar
‘He reminds me of me’

Bionic Reporter
Needing a new knee

Warrior Beat
Monday musings

Small Talk
Burning money

Political Radar
On policy

Warrior Beat
Apple fallout