GGP Inc., the real estate developer and operator formerly called General Growth Properties, reported increases in several key metrics for the year and fourth quarter ended Dec. 31.
Same-store net operating income increased 5.1 percent to $236 million, or 24 cents a diluted share, from $194 million, or 20 cents a diluted share, in the prior-year period.
For the year, net income declined slightly to $1.3 billion, or $1.34 per diluted share, from $1.37 billion, or $1.43 per diluted share, in the prior-year period.
GGP said that its net income during 2016 and 2015 was impacted primarily by gains related to sales and acquisitions of partial interests in two properties. Over the year, GGP acquired its joint venture partners’ interest in Riverchase Galleria in Hoover, Ala.; 605 North Michigan Avenue in Chicago, and interests in five Macy’s.
For the three months, funds from operations was $412 million, or 43 cents a diluted share, as compared to $408 million, or 43 cents a share, in the prior-year period, an increase of 0.8 percent. For the year, FFO was $1.47 billion, or $1.53 a diluted share, as compared to $1.38 billion, or $1.44 a share, in the prior-year period, an increase of 6.7 percent. Earnings before interest, taxes, depreciation and amortization increased 6.8 for the quarter and 9.3 percent for the year. Same-store leased percentage was 97.2 percent at the end of the fourth quarter.
Initial rental rates for signed leases that commenced in 2016 on a suite-to-suite basis increased 10.1 percent when compared to the rental rate for expiring leases. Tenant sales, excluding anchors, increased 0.9 percent on a trailing 12-month basis. In December, tenant sales, excluding anchors, increased 2 percent and sales per square foot of tenants under 10,000 square feet increased 3.1 percent over the prior year.
The company’s first-quarter common stock dividend was 22 cents a share, an increase of 16 percent over the first quarter of 2016. GGP spent $1.3 billion on development and redevelopment projects, with about $600 million of that under construction and $700 million in the pipeline.
Some of GGP’s major centers are Ala Moana in Hawaii, Water Tower Place in Chicago and Fashion Show Mall in Las Vegas.