Taubman Centers (NYSE: TCO) 2Q19 Results: FFO Misses Consensus, Lowers Guidance

Executive Summary

• Taubman Centers reported 2Q19 revenues of $161.6 million, up 5.8% year over year and beating the $159.7 million consensus estimate. FFO was $0.78 per share, missing the $0.83 consensus estimate.
• Comparable center mall tenant sales per square foot in US were up 8.8% in the quarter and average rent per square foot in comparable centers increased 2.1% to $56.79.
• To account for The Gardens Mall acquisition, Taubman reduced 2019 EPS guidance to $0.60-0.80 (from $0.68-0.92 previously) and FFOPS to $3.47-3.57 (from $3.60-3.72 previously).