This Day On The Street
Continue to site
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

Taubman REIT's Asia Growth Forges Ahead

NEW YORK ( TheStreet) -- Luxury mall REIT Taubman Centers (TCO - Get Report) recently announced its third-quarter operating results with the company's 12-month trailing mall tenant sales per square foot reaching $681, another record for the company. Mall tenant sales per square foot increased 6.2% for the three months ended Sept. 30 and 9.3% for the nine months ended Sept. 30.

Net operating income excluding lease cancellation income was up 7.4% for the three months ended Sept. 30, bringing 2012 year-to-date growth to 8.3%. Funds from operations, occupancy, leased space, rents -- all of our key operating statistics were up in the quarter. For the most recent quarter, FFO per share was $0.79, up more than 25% from the third quarter 2011 FFO per share of 63 cents. As Taubman's CEO, Bobby Taubman, explained during the recent earnings call:
NOI growth was a result of increased rents including percentage rent and recoveries. Rents and recoveries benefited from higher occupancy in our centers. Percentage rent increased due to our ongoing growth in tenant sales. This is all flowing from nearly three years of great sales. The metrics are clearly strong. We now expect NOI growth of about 6% for the year, that's up from our previous guidance range of 5% to 6%.

Average rent per square foot of $46.85 was up a solid 3.5% from last year. Year-to-date, average rent was up 2.8%, on track with Taubman's guidance of 3% for the year. In addition, Taubman's ratio of debt to total market capitalization stood at 30.5% at the end of the quarter, an all-time low for the company.

Betting on Growth

Taubman continues to make significant progress on its multi-pronged growth strategy, including recent groundbreakings: Chesterfied, Sarasota, San Juan, and the company's first projects in Asia.

Chesterfield, the company's first outlet center in suburban St. Louis, has all site approvals and the site there is fully graded. As mentioned on the earnings call, the delivery date has been accelerated to August 2, 2013, nine months from now, to take advantage of Missouri back-to-school tax-free holiday weekend.

In Puerto Rico, Taubman recently hosted a formal groundbreaking for the Mall of San Juan. Site work has begun and the company is currently targeting a late 2014 opening. Taubman expects to announce the exact opening date in the next few months. In Sarasota, Taubman just held University Town Center's groundbreaking. Site work is under way and utilities and grading will commence within the next month. The company has said that this project is around two years away from the scheduled opening on Oct. 16, 2014.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TCO $72.21 -0.76%
AAPL $118.88 0.96%
FB $105.74 -1.13%
GOOG $748.28 -1.02%
TSLA $218.25 0.23%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs