General Growth Properties Inc (NYSE:GGP) released its earnings report for the first three months of 2013 this afternoon, Monday April 29, after the market closed. The company revealed that it earned $0.25 per share in the first quarter of the new year on revenues of $637.8 million. On today’s market stock in the company trended up, finishing the day at $22.03.
In the run up to the release of this earnings report, analysts expected General Growth Properties Inc (NYSE:GGP) to show earnings of 25 cent per share for the first three months of 2013. In the first three months of 2013, the company lost 20 cents per share on revenues totaling 611 million.
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Like Herbalife Ltd. (NYSE:HLF), another company reporting first quarter earnings this afternoon, the big story surrounding General Growth Properties Inc (NYSE:GGP) is not the company’s financial performance, but the activity of the investors who are interested in the company. In the GGP case, that means Pershing Capital and Brookfield Asset Management Inc.(NYSE:BAM) (TSE:BAM.A).
In order to settle a dispute last year, Pershing, which is led by Bill Ackman, agreed to sell $270 million in stock warrants to Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM.A). Brookfield would then be obligated to sell those warrants on to other investors. Back in January, however, Ackman’s Pershing Square said it no longer wished to sell the warrants in the company.
Ackman will probably be more concerned with Herbalife Ltd. (NYSE:HLF) results this afternoon. He holds approximately 8 percent of General Growth Properties Inc (NYSE:GGP) but the deal with Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM.A) made sure his stake remained passive, and could not reach 10 percent or higher. In Herbalife Ltd. (NYSE:HLF) Ackman has more than money on the line – he’s laid down his reputation.
General Growth Properties Inc (NYSE:GGP) is a mall real estate investment trust. The company owns 136 malls across the country, and the company seeks to manage and improve other commercial real estate projects. The firm is currently valued at a fraction less that $21 billion.
Since the start of 2013, shares in General Growth Properties Inc (NYSE:GGP) have gained more than 10 percent. In the last twelve moths, the stock has gained more than 21 percent. The company is due to host a conference call at 9 am tomorrow morning to discuss this earnings report with investors and analysts.