This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

General Growth's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: GGP

As some of you’ve heard me say most recently at the NAREIT conference. There are basically three drivers of GGP’s growth over the next three to five years, increasing occupancy, increasing rents and executing our redevelopment plan.

We’re focused on these three drivers and if we are successful, we should see annual growth of 3% to 5% over the next three to five years. We’ll also continue to grow our Brazilian platform which now comprises of 16 malls, growing to 19 as developments become operational.

Our growth driver number one, increasing occupancy, our focus has been simple, lease, lease, lease. The biggest part of our growth comes from increasing occupancy. Our goal for permanent occupancy by the end of this year is over 88% with the total leased of 95%.

At quarter end, the U.S. mall portfolio was about 85% occupied with permanent leases, 6% temporary and 3% signed and occupied for a grand total of 94.3%. Based on our leasing progress to date, we feel very comfortable achieving the permanent occupancy target we’ve set for 2012.

I’d like to take a moment to focus on temporary occupancy. Temp occupancy is currently about 6% of our portfolio. As we increased the total occupancy level of the portfolio, we’re not only converting temporary leases to permanent leases but we are also leasing some of our vacant space on a temporary basis. So far this year, we’ve converted approximately 430,000-square feet of previously leased on a temporary basis to permanent.

We have also leased approximately 450,000-square feet on a temporary basis space that was previously vacant. Therefore, we are realizing incremental NOI from the ongoing conversion of temp to perm and also leasing of vacant space to temp space.

Looking beyond 2012, we anticipate reaching -- achieving 95% total leased level by year end 2013 and expect it to be comprised of 90% to 91% on occupancy, 3% to 4% temp and about 1% signed not opened.

For the second quarter, approximately one-third of our 2013 leasing goal has been accomplished. By 2014, we expect to be stabilized at 95% to 96% total occupancy of which 92% to 93% will be permanent.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs