Shopping mall real estate investment trust [REIT] General Growth Properties (GGP) is recommended as a Buy by Zacks senior REIT industry analyst Greg Sukenik. The details we found in his most recent research report:
'Operationally, GGP had a good 3rd quarter. Recurring FFO [funds from operations], excluding a lawsuit judgment, was $0.83 per share, up 27.7% from 3Q 2006. The company reported solid growth in NOI [net operating income], occupancy and rental rates.
'GGP has a strong development and redevelopment pipeline, which should incrementally add to earnings as projects come on line. Retail spending is holding up, and we expect modest retail growth this holiday season.
'We are maintaining our Buy rating due to what we feel is a compelling valuation. Shares are now trading at a discount to NAV [net asset valuation] and peer group averages due to a large price decline over the past couple of months.
'Share of GGP have traded down about 19% over the past two months. There has been a broad sell-off in the entire sector as investors are worried about valuations and the consumers' ability to spend in the face of increasing fuel costs and a free falling housing market. On a price/FFO basis, GGP now trades at an 10% discount to its peer group average.'
Read the full analyst report on GGP.
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