Mizuho Securities Starts General Growth Properties (GGP) at Buy

Mizuho Securities initiates coverage on General Growth Properties (NYSE: GGP) with a Buy rating and a price target of $33.00.

Analyst Haendel St. Juste commented, "With a national portfolio of 92 malls (of the top 464 malls in the U.S., per GGP management), GGP’s portfolio ranks only behind SPG’s in terms of U.S. gross leasable area (GLA). GGP sources the vast majority (>75%) of its NOI from ‘A’ malls and its portfolio averages sales psf of $588 (as of YE15). GGP’s size provides scale / efficiency advantages, as well as leverage dealing with tenants desiring access to the best trade areas in the U.S. Looking ahead, we expect GGP’s sales psf growth to improve as it culls lower productivity ‘B’ malls, as well as expected sales growth from its higher productivity ‘A’ malls. Also look for above-trend near-term ssNOI growth driven by continued strong leasing spreads, occupancy upside and redevelopment."

For an analyst ratings summary and ratings history on General Growth Properties click here. For more ratings news on General Growth Properties click here.

Shares of General Growth Properties closed at $28.84 yesterday.

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