Mall companies Taubman Centers Inc. and Regency Centers Corp. both weighed in with fourth quarter result that missed FactSet estimates for funds from operations, a key real estate yardstick.
Taubman Centers delivered fourth-quarter net income of $46.6 million, or 42 cents a diluted share. But comparisons to the previous year’s fourth quarter were complicated by the sale of several properties, which changed the results significantly.
The funds for operations grew to $52.1 million, or 85 cents a share, versus $34.9 million, or 54 cents, a year earlier. The FactSet estimate for funds from operations was 93 cents.
Ninety-seven percent of the company’s space was leased at the end of December 2015, up 0.8 percent from 96.2 percent at the end of 2014. Center mall tenant sales per square foot were $800 for 2015, an increase of 1 percent. However, for the fourth quarter mall tenant sales per square foot were down 2.2 percent.
Looking ahead, Taubman expects fund from operations for 2016 to be in the range of $3.45 to $3.65 a share and that doesn’t include the impact of the Country Club Plaza which will be acquired in March. Net income for the year is forecast to be in the range of $1.55 to $1.80. Taubman will host its earnings conference on Thursday at 11 a.m. EST.
Regency Centers Corporation also reported its fourth-quarter and full-year 2015 results. The net income for the fourth quarter was $17.6 million, or 18 cents per diluted share, which compared with $73 million, or 78 cents, a year earlier and reflected the sale of seven properties during 2015.
Funds from operations for the fourth quarter were $64.2 million, or 67 cents per diluted share, and compared with $73 million, or 78 cents, a year earlier. FactSet had estimated the company would report 73 cents in funds for operations.
The company said 95.8 percent of its properties were leased, which was flat year-over-year. Regency Centers is hosting its earnings conference call on Thursday at 10:00 a.m. EST.