The past week saw even more year-end results from the REITs in various sectors for the industry -- and it's clear that fashion is in favor.
Taubman Centers' reported that its adjusted FFO per share rose 9.3 percent over 2012, on a portfolio that was 93.6 percent leased, up 0.3 percent from 2012. But hold onto your hats for this one: comparable sales per square foot were $721, up 1.8 percent from last year.
"We're pleased that sales in our centers have now surpassed $700 per square foot," said Chairman, President and CEO Robert Taubman, in the announcement. "This is another record for our company and for the U.S. publicly held regional mall industry."
Growth is expected to continue. Renovations and expansions are under way at The Mall at Green Hills (Nashville), Cherry Creek Shopping Center in Denver, Dolphin Mall in Miami, Beverly Center in Los Angeles and Sunvalley in Concord, CA., as well as the ground-up Mall at Miami Worldcenter, a joint venture with the Forbes Company, to open in late 2016.
The outlet sector (which, of course, deals with many of the same tenants) reported in as well. Tanger Factory Outlet Centers ended the year with occupancy at 98.9 percent, with FFO per share rising 19 percent year-over-year. Comparable tenant sales rose 2.6 percent to $387 per square foot for the year. Five projects are under construction, including the company's first ground-up project in Canada, a joint venture in Ottawa to open in time for holiday 2014. The company also is renovating and expanding the center in Cookstown (greater Toronto) that it acquired in 2011. Other new projects include a just-announced center in Grand Rapids, MI, to open in 2015.
But even in this growing sector, the company is quietly marketing some centers, said Steven B. Tanger, president and CEO.
"We have no problem selling assets and may well do so before the end of the year and recycle the cash in the new investments," Tanger said at the conference call. "There are assets on the markets right now that are being marketed through national brokerage firm and we will not announce any transaction until our contract is signed or contract may not be signed, but the properties are being marketed."
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