General Growth PropertiesNYSE
Fri, Dec. 2, 11:51 AM
- The financial sector is taking a breather from its staggering post-election run, with a post-jobs report dip in rates a good enough excuse for satiated bulls to cash in some chips.
- XLF -1%, KBE -0.7%, KRE -0.7%.
- Individual issues: Bank of America (BAC -1.8%), Morgan Stanley (MS -1.2%), Citigroup (C -1.9%), M&T (MTB -1.1%), Flagstar (FBC -1.7%), Fifth Third (FITB -1.6%), PNC Financial (PNC -1.4%), Prudential (PRU -1.1%), Lincoln National (LNC -1.9%), Schwab (SCHW -2.1%), State Street (STT -1.8%)
- No longer part of the financial sector as far as the GICS classification, REITs are enjoying the respite in rates. IYR +1.6%, VNQ +1.6%
- Realty Income (O +4.1%), Vereit (VER +3%), Omega Healthcare (OHI +3.2%), Welltower (HCN +3.5%), HCP (HCP +2.7%), Universal Health (UHT +4.4%), W.P. Carey (WPC +2%), Lexington Realty (LXP +2.5%), Essex Property (ESS +1.2%), Aimco (AIV +1.5%), General Growth (GGP +2.6%), Brixmor (BRX +1.6%), Federal Realty (FRT +1.8%), Kimco (KIM +1.2%), Public Storage (PSA +1.4%), Life Storage (LSI +1.4%), Boston Properties (BXP +1.2%), Stag Industrial (STAG +2.4%).
Wed, Nov. 30, 10:27 AM
- As more shopping moves online, owners of Class A malls like Simon Property (SPG -1.2%) and General Growth (GGP -0.9%) are "best-positioned" to adapt, says analyst Micheal Binetti.
- More "at risk" are Class B/C mall landlords like CBL & Associates (CBL -1.3%), and DDR (DDR -0.1%).
- The next bout of online growth could come from "suburban heads of households," he says, as a UBS survey shows that's the biggest "untapped" group yet to move to e-commerce.
- No surprise here: Industrial REITs should continue to benefit as warehouse space becomes more in demand than retail space.
- Source: Bloomberg
Mon, Nov. 14, 3:07 PM
- With interest rates shooting higher today, the REIT selloff resumed this morning, but there's been a major reversal, with the VNQ now up 2.5% and IYR +2% vs, the S&P 500's flat performance.
- Among the movers: Vereit (VER +1.4%), Omega Healthcare (OHI +3.5%), HCP (HCP +4.7%), Lexington Realty (LXP +4.8%), UDR (UDR +3.4%), General Growth (GGP +3.6%), CubeSmart (CUBE +1%), Host Hotels (HST +5.1%), Gramercy Property (GPT +3.2%).
Fri, Nov. 11, 12:53 PM
- Surging interest rates this week had investors pulling money from income favorites like REITs and utilities, and rotating into yield-starved banks, insurance companies, and brokerages.
- With the bond market closed for Veteran's Day, rates are taking the day off, and REITs and utilities (XLU +0.3%) are seeing a sizable bounce. VNQ +1.1%, IYR +0.9%
- Retails rates are thought to be more exposed than most to rising rates, and they were among the hardest hit. Today: Realty Income (O +1.6%), Vereit (VER +4.3%), National Retail (NNN +1%), Store Capital (STOR +4.3%)
- Other equity REITs: Omega (OHI +0.5%), LTC Properties (LTC +2%), Healthcare Trust (HTA +2.2%), Gramercy Property (GPT +3%), Gladstone Commercial (GOOD +4.3%), Lexington Realty (LXP +2.4%), General Growth (GGP +1%), Simon Property (SPG +1%), Retail Opportunity (ROIC +2.5%), Life Storage (LSI +1.4%), First Potomac (FPO +7.5%), Stag Industrial (STAG +1.5%)
Wed, Nov. 9, 1:48 PM
- The 10-year U.S. Treasury yield is higher this session by 21 basis points to 2.07% after having fallen as low as 1.70% at one point last night. TLT -4%, TBT +8%
- On the shorter end, Fed Funds futures - after last night having priced out any chance of rate hike in December - have returned to pricing in nearly 100% chance of a move.
- Facing more serious competition for yield, utilities (XLU -3.4%) and REITs (VNQ -1.7%) are having a rough session.
- Individual REIT names: Realty Income (O -5.1%), Spirit Realty (SRC -3.3%), Omega Healthcare (OHI -2%), Welltower (HCN -3.1%), Equity Residential (EQR -2.4%), AvalonBay (AVB -2.1%), General Growth (GGP -2.3%), Kimco (KIM -2.3%), DDR (DDR -2.3%).
- Notably fading the move even as the dollar turns sharply higher are the lodging REITs: Ashford (AHT +2.9%), LaSalle Hotel (LHO +3.1%), Pebblebrook Hotel (PEB +3.9%), Chatham Lodging (CLDT +4.2%), Hersha (HT +3.7%)
Tue, Nov. 8, 7:47 AM
- The moves involve outright purchases of retailers, such as when General Growth (NYSE:GGP) teamed with Simon Property (NYSE:SPG) and others to purchase Aeropostale in September, or just buying up retailer stores.
- Source: WSJ's Esther Fung
- Since the start of Q3, General Growth has purchased five stand-alone Macy's stores for $48M.“We’ve been pretty opportunistic here,” says CEO Sandeep Mathrani, who doesn't rule out further acquisitions (GGP has also purchased space from Sears in the past).
- "Investors are trying to figure out how much of this is reactionary or defensive and how much of it is to push the quality of the portfolio," says Green Street Advisors' D.J. Busch. "We're in the middle of the transition."
- At least one investor isn't seeing the wisdom, as Land & Buildings has been waging a campaign against Taubman Centers (NYSE:TCO) to consider cutting costs and selling assets, rather than expanding. Taubman closed yesterday at $70.71 versus NAV estimates of about $99 per share.
Mon, Nov. 7, 10:30 AM
- Now it's the team at Evercore ISI, and analyst Steve Sakwa says the "noisy" Q3 earnings season has created buying opportunities, with AFFO multiples at their lowest since Dec. 2013, and implied cap rates about 400 basis points above the 10-year Treasury yield (vs. a typical 320 bps).
- Noting either strong fundamentals or attractive valuations, he's a fan of Paramount Group (PGRE +0.2%), General Growth (GGP +1.5%), Vornado (VNO +0.9%), Prologis (PLD +1.4%), CubeSmart (CUBE +1.8%), Brixmor (BRX +0.7%), Life Storage (LSI +2%), Simon Property (SPG +0.3%), Mack-Cali (CLI +1.2%).
- Previously: American Assets, Macerich, and DDR win sell-side upgrades (Nov. 7)
- Previously: Barron's: REITs are on sale (Nov. 5)
- ETFs: VNQ, IYR, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX, RORE
Mon, Oct. 31, 5:06 PM
Mon, Oct. 31, 4:13 PM
- Q3 FFO of $336M or $0.35 per share vs. $341M and $0.36 one year ago.
- Same-store NOI up 3.8% Y/Y. EBITDA up 4.6%. Same-store leased percentage of 96.7%. Initial rents up 12% over expiring leases. Tenant sales (less anchors) up 1.4%.
- During and subsequent to quarter-end, company acquired five anchor boxes from Macy's for $48M.
- Dividend of $0.22 per share up 16% from a year ago.
- Full-year FFO guidance of $1.52-$1.54 per share; Q4 of $0.42-$0.44.
- Conference call at 8 ET
- Previously: General Growth Properties FFO in-line, misses on revenue (Oct. 31)
- GGP flat after hours
Mon, Oct. 31, 4:03 PM
Sun, Oct. 30, 5:35 PM
Thu, Oct. 27, 10:42 AM
- The 10-year Treasury yield is making new bear-cycle highs today, up another seven basis points to 1.86% - its perkiest level since May. The move up in yields is global, with U.K. 10-years up 11 bps and Germany's up 8.5 bps.
- Earlier today, the U.K. reported Q3 GDP growth of 0.5% - far better than what had been predicted post-Brexit.
- Facing at least a little more competition in the yield department, equity REITs have turned sharply lower, with VNQ down 2.1%, and IYR off 1.8%. Mortgage REITs (REM -0.6%) are faring a little better as solid Q3 earnings begin to roll in.
- The major U.S. averages have given up early gains and turned red, led by the S&P 500 and Nasdaq, both off 0.25%.
- Individual equity REITs: Verreit (VER -2.2%), Welltower (HCN -2.4%), Equity Residential (EQR -1.6%), Omega Healthcare (OHI -3.2%), Simon Property (SPG -3.2%), General Growth (GGP -2.6%), Public Storage (PSA -2.9%), Gramercy Property (GPT -1.9%), Washington Real Estate (WRE -1.2%), Hersha (HT -2.9%), Sunstone Hotel (SHO -1.4%), Stag Industrial (STAG -2%)
- Mortgage REITs: AGNC Investment (AGNC -1.5%), Annaly (NLY -0.7%), Two Harbors (TWO -0.4%), Capstead (CMO +0.3%)
- ETFs: VNQ, IYR, MORL, REM, MORT, DRN, RQI, URE, SCHH, ICF, RWR, SRS, RNP, RFI, JRS, KBWY, NRO, DRV, RIT, RIF, REK, DRA, FRI, FTY, FREL, LRET, PSR, WREI, XLRE, IARAX, RORE
Fri, Sep. 16, 8:33 AM
- The partnership of Authentic Brands Group, General Growth Properties (NYSE:GGP), and Simon Property Group (NYSE:SPG) finalized their acquisition of Aeropostale (NYSE:AEO) in a deal that will keep the brand alive.
- The Aeropostale chain will still have a major presence at malls with over 400 stores in the U.S. and Canada and another 300 global outlets.
- "Aeropostale has significant brand equity and the go-forward portfolio of stores generates more than $1 billion in global retail sales, over $800 million of which is from the U.S.," notes GGP CEO Sandeep Mathrani.
Fri, Sep. 2, 11:12 AM
- A consortium including mall operators Simon Property Group (SPG +0.3%) and General Growth Properties (GGP +0.7%) as well as licensing firm Authentic Brands and liquidators has prevailed in the bankruptcy auction for Aeropostale (NYSE:ARO).
- The group bid $243.3M in a deal that could save 229 of the retailer's stores -- though in any case a surviving Aeropostale will continue with far fewer than the 800 pre-bankruptcy stores it operated.
- The consortium would also get the e-commerce business and international licensing. The deal is set for approval by a bankruptcy judge on Sept. 12.
- The transaction also ends a dispute between the retailer and lender Sycamore Partners, accused to planning a "loan-to-own" scheme to force bankruptcy on the chain.
Thu, Aug. 11, 9:45 AM
- Macy's is higher by 16% after reporting its Q2 and announcing the closing of 100 full-line stores (out of 675 total).
- The news is sending a shudder through the owners of malls: Simon Property (SPG -1.6%), General Growth (GGP -2.1%), Brixmor (BRX -2.1%), Weingarten Realty (WRI -0.8%), Macerich (MAC -0.7%), Taubman Centers (TCO -0.8%), PREIT (PEI -1.3%).
Tue, Aug. 2, 10:47 AM
- GGP tried to ease the sting of the miss and slight guidance cut with an increase in the quarterly dividend to $0.19 per share, but shares are down 1.95% in morning action.
- Q2 FFO of $340M or $0.35 per share compared to $319M and $0.33 one year ago. Expectations were for $0.36.
- Same-store NOI up 4% Y/Y; EBITDA growth of 6.5%.
- Initial rental rates LTM up 13.7% vs. those for expiring leases. Tenant sales up 2.8%.
- Q3 FFO per share is guided to $0.34-$0.36; full-year to $1.51-$1.55.