General Growth Properties Inc. said its second-quarter profit fell 17% from a year-earlier quarter that included a large gain, but the company posted increases in revenue and funds from operations.
The mall-focused real-estate investment trust has sold and spun off assets in an effort to improve its business since exiting bankruptcy in 2010. It is also accelerating its redevelopment pipeline in an effort to generate growth in future years.
Brookfield Property Partners LP is the largest shareholder of General Growth.
General Growth reported a profit of $173.7 million, or 18 cents a share, compared with a year-earlier profit of $209.4 million, or 21 cents a share, a year earlier.
Funds from operations rose to 31 cents from 27 cents. General Growth had projected per-share FFO between 29 cents and 31 cents.
Revenue rose 3% to $617.6 million. Analysts expected $613 million.
The mall leased percentage was 96.5%, up 60 basis points from a year earlier.
In February, activist investor Bill Ackman’s firm Pershing Square Capital Management LP exited its stake in General Growth Properties, the firm’s most profitable investment ever.
Store closings by J.C. Penney Co. and Sears Holdings Corp. have posed a threat to the mall industry, as the loss of anchor tenants reduces traffic, which can cause remaining stores to leave or renegotiate their leases.
The company said it expects funds from operations of 30 cents to 32 cents a share for the third quarter. Analysts polled by Thomson Reuters project FFO of 30 cents a share. General Growth reaffirmed its forecast for the year.
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