"Not withstanding higher interest rates, the lowest savings rate in history, higher gas prices and a softening of the housing market, the consumer continues to spend--at least at our centers," Robert S. Taubman, chairman, president and CEO of Taubman Centers told analysts and investors in a conference call announcing the quarterly results.
The company, which recently opened the Pier at Caesars in Atlantic City, NJ with more than 100 upscale stores, owns or manages 23 shopping centers in 11 states.The strong quarterly results prompted the company to raise its forecast for the full year by 2 cents per share to between $2.43 and $2.48 per share.
Funds from operations, a key indicator of profitability, rose 7% from 52 cents to 55 cents per share during the three-month period while gains on land sales and interest income surged 87% to $5.5 million from $2.95 million in the year ago period.
Net income for the period ending June 30 was $7.79 million, or a loss of 5 cents a share, up from $1.6 million, or a loss of 9 cents a share. Losses for both periods was due to shareholder dividends paid by Taubman.
Despite those losses, the company said revenue rose to $139.3 million during the second quarter, an increase from $117.2 million compared to the same period a year ago.
Taubman said tenant sales have continued to gain momentum since the beginning of the year, increasing nearly 7% with the strongest performance along coast and in Florida. During the quarter, sales by tenants at Taubman-owned malls increased 8.5% across all categories with strong sales in women's apparel and accessories, electronics, jewelry, children's apparel and at restaurants. Mall occupancy was also up by 0.3% to 89%, the company said.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
