General Growth Properties Inc. (GGP) swung to a first-quarter loss as the company recorded $143.1 million in depreciation and noncash accounting adjustments for warrants outstanding.
The company raised its full-year expectations for core funds from operations by 2 cents, now seeing 92 cents to 96 cents. Second-quarter core FFO is expected to come in at 20 cents to 22 cents. Analysts polled by Thomson Reuters most recently expected 20 cents.
General Growth continues to prune its portfolio to boost its core earnings, which have generally improved despite pressure from weak economic conditions in many markets.
The mall landlord in January completed its spinoff of a portfolio of 30 lower-quality malls into newly formed real-estate investment trust Rouse Properties Inc. (RSE).
The company, which has ownership or management interest in about 135 shopping malls across the U.S., emerged from bankruptcy in 2010 via a $7 billion recapitalization led by Brookfield Asset Management Inc. (BAM).
General Growth posted a loss of $197.6 million, or 21 cents a share, compared with a year-earlier profit of $5.7 million, or less than a penny a share. The company posted a $143.1 million warrant liability adjustment charge, while the year-ago period included a gain of $76.4 million in the same line. Core funds from operations, a key profitability metric for real-estate investment trusts, reached 22 cents, compared with 21 cents a year ago. Its February projection was 21 cents to 23 cents.
Revenue fell 1.3% to $612.1 million. Analysts expected $660 million.
The regional mall leasing rate reached 93.7%, up from 92.9% a year earlier.
Shares closed Tuesday at $17.92 and were inactive in after-hours trading. The stock was up 23% so far this year.
-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; email@example.com