Taubman Centers, Inc. (TCO), a real estate investment trust, announced the opening of a new fashion outlet center – Taubman Prestige Outlets Chesterfield – in the western St. Louis suburb of Chesterfield. Notably, this is the company’s first Taubman Prestige Outlet property in Missouri.
Taubman Prestige Outlets Chesterfield is strategically positioned at the center of a reputable and flourishing retail hub. Moreover, it is conveniently connected to the area’s chief transportation networks.
The center boasts several top brands’ outlet stores including Restoration Hardware (RH), Ralph Lauren Corporation (RL) and Abercrombie & Fitch Co. (ANF). We expect the opening of this favorably situated, best-in-class retail mall to be accretive to Taubman’s top line going forward.
Notably, the opening of Taubman Prestige Outlets Chesterfield coincided with Missouri's Tax Free Weekend. This particular weekend is regarded as the second-busiest, most-profitable weekend for retailers, the first being Black Friday. We expect this strategic opening time of Taubman Prestige Outlets Chesterfield to help its retailers in attracting huge shoppers.
Taubman has a strong portfolio of the premium retail malls that generate high average sales per square foot in the country. The company is currently focusing on expanding through development and reconstruction of properties in major submarkets across the world.
Moreover, the company is enhancing its properties’ value through the addition of high-end retailers. In June, Taubman announced that Saks Fifth Avenue, an upscale department store chain owned by Saks Inc. (SKS), will anchor the International Market Place (Waikiki, Honolulu, Hawaii). The move was part of the company’s efforts to revivify the shopping center.
On Jul 25, 2013, Taubman reported second-quarter 2013 FFO per share of 75 cents, missing the Zacks Consensus Estimate by 4 cents. The estimate miss was mainly due to lower-than-expected revenues in the quarter.
Taubman currently carries a Zacks Rank #3 (Hold).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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