Wed, Apr. 29, 4:50 PM
- Q1 FFO of $0.81 per share vs. $0.90 one year ago.
- Comp center NOI up 3.7% Y/Y. Including lease cancellation income, it grew 5.3%. Average rent per square foot of $60.12 up 4.2%. Trailing 12-month releasing spreads of 31.8%.
- Mall tenant sales per square foot up 2.3%, bringing the trailing 12-month total to up 0.5%.
- Ending occupancy in comp centers of 92.7% down 40 bps from a year ago.
- The Mall of San Juan opened at quarter's end, and company boosted ownership stake to 95% from 80% in mid-April.
- 1.153M shares repurchased during quarter at average price of $73.69 each.
- The bottom-end of 2015 FFO guidance is lifted to $3.20 per share from $3.18. The top end stays at $3.28.
- Conference call tomorrow at 11 ET
- Previously: Taubman Centers beats by $0.06, misses on revenue (April 29)
- TCO flat after hours
Wed, Apr. 29, 4:08 PM
Sat, Apr. 25, 7:46 AM
- Taubman Centers (NYSE:TCO) trades at a whopping 25% discount to estimated NAV, according to Green Street Advisors, versus General Growth Properties (NYSE:GGP) at just a 3% discount, and Macerich (NYSE:MAC) and SImon Property Group (NYSE:SPG) at small premiums.
- At least partly behind the discount is worry over Taubman's capital allocation - particularly the development of two Chinese malls whose expected returns are sizably less than what the company could earn on domestic redevelopment projects (or maybe on buybacks). And what if Taubman - which still sees itself as a family company (the Taubman's own 29% of it and haven't sold a share since the 1992 IPO) - isn't satisfied with just two Chinese malls?
- “Anybody who can put on blinders and blot out the chatter should do well,” says Green Street's Mike Kirby, arguing the Chinese fears are overblown. Taubman's a money-maker: Since the 1992 IPO, the company has generated a 15%-plus annual total return - six hundred basis points better than the S&P 500 - and dividends have grown at a 4% annual rate. The stock's sizable underperformance against its peers over the last year - add disappointing 2015 guidance to the China fears - offers investors a chance to get in relatively cheaply.
- Source: Barron's Andrew Bary
Thu, Apr. 16, 9:14 AM
- Taubman Centers (NYSE:TCO) acquires another 15% of The Mall of San Juan, bringing its stake in the property up to 95%. New Century Development retains the remaining 5%.
- The upscale mall - which offers the first Nordstrom and Sake Fifth Avenue in the Caribbean - opened on March 26.
- Source: Press Release
- Previously: Checking Puerto Rico exposure for DDR and Taubman (Feb. 4)
Mon, Apr. 6, 3:13 PM
- The lodging names are still underperformers vs. the broader REIT sector this year (after strong outperformance in 2013 and 2014), but Credit Suisse's bullish Ian Weissman notes the hotel stocks had a 2nd consecutive good week of double-digit RevPAR growth which should help calm growth concerns.
- He still likes the lodging REITs, with RLJ Lodging (RLJ -0.3%), Strategic Hotels and Resorts (BEE +0.8%), and LaSalle Hotel Properties (LHO +0.6%) his favorites.
- Turning to mall owners in the wake of Macerich's (MAC -1.5%) rejection of Simon Properties' (SPG +0.7%) bid, Weissman thinks the time is right to get more aggressive on A mall cap rates, and the owners of the majority of them in the U.S. - with General Growth Properties (GGP +0.9%), Taubman Centers (TCO +0.3%), and Westfield (OTCPK:WFGPY +1.9%) joining Macerich and Simon. Taubman and Simon are his favorites.
- Source: Barron's
Wed, Mar. 11, 8:11 AM
- Evercore ISI upgrades Tabuman Centers (NYSE:TCO) to Buy from Hold the morning after the company more than doubled its stock repurchase plan.
- Good timing on the buyback? Amid the interest rate scare of the past six weeks, Taubman has tumbled about 15%.
- Previously: Taubman Centers boosts buyback by $250M (March 10)
Tue, Mar. 10, 4:21 PM
- The increase brings the $200M program authorized in August 2013 to $450M.
- Since then, Taubman (NYSE:TCO) has bought back about 1.9M shares for an average price of $70.48 each, or $132.5M. Should the remaining authorization be used up at today's closing price, it would represent just less than 7% of the float.
- Source: Press Release
- Shares +0.6% after hours.
Tue, Mar. 10, 12:10 PM
Thu, Feb. 12, 4:14 PM
Wed, Feb. 11, 5:35 PM
Wed, Feb. 4, 3:21 PM
- About 14% of DDR's net operating income comes from 15 Puerto Rican shopping centers, says Morgan Stanley as the team there picks just the right time to take a tour. What they found were strong cash flows and tenant demand, and a mix of mostly U.S.-based retailers. Looking at a price chart of DDR (upward and to the right), it's hard to see any Puerto Rican exposure fear priced in, but nevertheless, the team thinks current levels are a nice entry point into the shares.
- They're not as impressed with Taubman Centers' (NYSE:TCO) island assets, noting they've run over-budget and have had leasing issues. Miami is a different story, however, and Morgan thinks Taubman's WorldCenter properties will be a success despite competition from Brickell City Center just two miles away.
Mon, Jan. 12, 10:41 AM
- "We certainly expect more malls to close than open over the next several years," says D.J. Busch, a mall-REIT analyst at Green Street Advisors. Those regional malls with low per-square-foot tenant sales that have lost relevance probably will be closed or reused for something other than retail over the next few years.
- Morgan Stanley real estate debt analyst Richard Hill: “There’s a level of complacency among investors ... Competitive pressures that haven’t been seen in decades are making some retailers and some properties obsolete.”
- RPAI, IRC, KIM, FRT, DDR, WHLR, WSR, EQY, CBL, TCO, SPG, GGP, WRI, MAC, PEI
Dec. 2, 2014, 8:41 AM
- Alongside its quarterly dividend declaration of $0.54, Taubman Centers (NYSE:TCO) will make a special payment of $4.75 per share thanks to October's sale of seven malls to Starwood Capital.
- The dividends are payable on December 31 to holders of record on December 15.
- Source: Press Release
- Shares +0.6% premarket
Nov. 19, 2014, 10:20 AM
- Macerich (MAC +7.2%) climbs sharply after Simon Property (SPG -0.5%) earlier disclosed a 3.6% stake in the company and indicated it's interested in going over 5%.
- Simon, of course, recently became more laser-focused on large enclosed malls after spinning off Washington Prime - its strip center and smaller mall business.
- Might Taubman Centers (TCO +2.2%) be another target? It's rising alongside Macerich in early action.
Oct. 30, 2014, 4:29 PM
Oct. 17, 2014, 9:08 AM
- "These transactions are transformative for the company," says CEO Robert Taubman. "The sale of these assets leaves our remaining portfolio significantly enhanced, with higher sales productivity and faster net operating income growth."
- The sale price (buyer was Starwood Capital) was $1.403B, excluding transaction costs. After paying off related debt, net cash proceeds were $736M, with Taubman's (NYSE:TCO) share being $716M.
- Uses have not been determined, but Taubman for now plans to make use of a 1031 deal to defer capital gains taxes. Should no assets under a 1031 be found, a special dividend of $5 per share will be paid.
- Source: Press Release
TCO vs. ETF Alternatives
Taubman Centers Inc operates as a self-administered and self-managed real estate investment trust. The Company owns, manages, leases, acquires, develops, and expands regional and super-regional retail shopping centers.
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