Goldman Sachs Reiterates Buy Rating On General Growth Properties

In a report published by Goldman Sachs, General Growth Properties GGP saw a good start and its Buy rating is reiterated.

Goldman Sachs said that national mall REIT GGP recently posted 4Q 2010 FFO results that served to confirm its positive near-term growth expectations. “4Q recurring FFO/sh was $0.25 and full-year 2010 FFO/sh was $0.91. Total revenues were $2.8 bn, down slightly from $2.9 bn in the previous year. Same-store NOI was roughly flat at $2.3 bn, which was a stable result and more in line with GGP's direct peers (SPG, TCO, and MAC). Total portfolio occupancy was 92.9% at year's end, of which roughly 690 bp represents short-term leases with below market rate rents, presenting an opportunity to boost cash flow upon re-leasing. Leasing spreads were positive at 2.9% and the company seeks to drive spreads to the 7%-10% range as a result of better leasing activity in 2011 vs. the previous year. Finally, GGP signed new leases and renewals totaling over 7.2 mn SF of space.”

General Growth Properties closed yesterday at $14.57.