Taubman (TCO) 4Q15 Results: Very Complicated Quarter, but Solid Outlook

Executive Summary

• Real estate investment trust Taubman Centers reported 4Q15 funds from operations (FFO) of $156.2 million, beating the consensus estimate of $151.3 million.
• FFO per diluted share was $0.85, up 57.4% year over year, but below the consensus estimate of $0.93. Adjusting for the charges related to the October 2014 sale of seven centers to Starwood Capital, FFO per diluted share was $0.98, down 2.0% and in line with the consensus estimate.
• The company expects FY16 FFO per diluted share to be $3.45–$3.65, slightly below the consensus estimate of $3.67, and it expects net income per share to be $1.55–$1.80.