CHICAGO, Feb. 4 /PRNewswire-FirstCall/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced a 15.1% increase in Funds From Operations (FFO)
per share for fourth quarter 2001 and a 12.2% increase per share for all of
2001. Since becoming a public company in April 1993, General Growth has
achieved uninterrupted consecutive quarterly FFO growth and has increased FFO
per share 15.4% on a compounded annual basis.
"This past year was challenging for business and for the people of the
world," said John Bucksbaum, CEO of General Growth Properties. "I am proud to
report General Growth continues to stand strong in these uncertain times. We
are dedicated to future growth year in and year out."
FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- FFO on a per share, fully diluted basis, grew 15.1% to $1.60 in the
fourth quarter 2001, up from $1.39 in the fourth quarter of 2000. FFO
per fully diluted share for full year 2001 was a record $4.96, up 12.2%
from $4.42 in 2000.
-- Total FFO for the quarter jumped 18.6% to $125.0 million, from
$105.4 million in the fourth quarter of 2000. For the twelve months
ended December 31, 2001, total FFO climbed 14.1% to $376.8 million
compared to $330.3 million for the same period in 2000.
-- Earnings per share (EPS) in fourth quarter 2001 was $.79 versus $.85
for the comparable period in 2000. Extraordinary items, attributable
to early retirement of debt, were $.24 per share. For the full year,
EPS was $1.28 compared to $2.18 in 2000. The year 2001 EPS was reduced
by a one-time charge for network discontinuance costs, extraordinary
early retirement of debt costs, and a cumulative effect of an
accounting change, for a total of $1.58 per share. There were no one-
time charges, extraordinary items, or cumulative effects of accounting
changes in 2000.
-- For fiscal year 2002, the company anticipates that FFO per fully-
diluted share will be in the range of $5.31 to $5.56.
-- Prorata net operating income (NOI) increased 4.6% in the quarter to
$210.7 million, from $201.4 million during the fourth quarter of 2000.
For the twelve month period, prorata NOI increased 6.0% to
$725.7 million, up from $684.3 million in 2000.
-- Total prorata revenues were $328.9 million for the quarter, an increase
of 3.1% compared to $319.0 million for the same period in 2000. Total
prorata revenues were $1.2 billion for full year 2001, or 4.0% above
revenues of $1.1 billion for full year 2000.
-- Total sales increased 1.2% for the full year 2001 and comparable sales
decreased .8% for the same period last year.
-- Comparable center (same store) net operating income (NOI) increased by
approximately 4.6% during the fourth quarter.
-- Annualized sales per square foot were $355 as of December 31, 2001
versus $357 at the end of 2000.
-- Mall shop occupancy as of December 31, 2001 remained constant with 2000
at 91%.
-- Average rents for new/renewal leases signed for the year were $33.29
versus $35.24 for the same period in 2000 and average rents for all
leases expiring in 2001 were $27.40 versus $29.29 in 2000.
-- The company sold 9.2 million common shares in December 2001 for net
proceeds of approximately $345 million.
-- In early December 2001, GGP closed on the sale of $2.55 billion of
Commercial Mortgage Pass-Through Securities, the largest single
issuance of this kind to date in the United States. The company's
prorata share of the financing was $1.89 billion. The transaction
generated excess non-recourse loan proceeds of approximately
$570 million with GGP's share at approximately $390 million.
"A key component to achieving long-lasting success in real estate is how
it is financed," said Bucksbaum. "Our recent debt refinancing allowed us to
strengthen our balance sheet, achieve lower financing costs, extend loan
terms, benefit from the increase in property values, and generate excess
proceeds to reinvest in the growth of our company."
DEVELOPMENT/EXPANSION ACTIVITY
During the quarter the following projects were completed:
-- Renovation of the 1.2 million square-foot Southwest Plaza Mall in
Littleton (Denver), Colorado, including the addition of a Panera Bread
with outdoor seating.
-- 25,000 square foot Barnes & Noble stores in Lakeview Square Mall in
Battle Creek, Michigan; Columbia Mall in Columbia, Missouri; and Eden
Prairie Mall in Eden Prairie (Minneapolis), Minnesota.
-- Redevelopment of a 120,000 square foot anchor store for Lord & Taylor
at Landmark Mall in Alexandria Virginia.
The following development projects are currently under construction:
-- Renovation of the Parks at Arlington (Dallas), Texas, adding a Great
Indoors, Galyan's, multiplex theater, ice rink, and an additional
40,000 square feet of retail space.
-- Mall renovation at Lansing Mall in Lansing, Michigan, to include the
renovation of the food court, as well as the addition of a
"streetscape" retail presence, Best Buy, and Younkers department store.
-- Expansion of the food court, conversion of an existing anchor to a
Herberger's department store, and addition of a Barnes & Noble store at
Apache Mall in Rochester, Minnesota.
-- Renovation of Valley Plaza in Bakersfield, California, to include the
expansion of the food court plaza and the addition of Best Buy.
-- Redevelopment and remerchandising of Fallbrook Center in West Hills,
California.
-- Renovation and expansion of the food court at Greenwood Mall in Bowling
Green, Kentucky.
-- Addition of a Barnes & Noble, Best Buy, Pier One, and Olive Garden at
West Valley Mall in Tracy, California.
-- A freestanding retail expansion of Fox River Mall in Appleton,
Wisconsin, to include a Bed Bath and Beyond, Discount Shoe Warehouse,
and a Cost Plus.
-- Addition of a new food court and related site work at Oglethorpe Mall,
in Savannah, Georgia.
-- Addition of a new food court and center court renovation of The Oaks
Mall in Gainesville, Florida.
-- Renovation of the Altamonte Mall in Altamonte Springs (Orlando),
Florida.
-- Redevelopment of Crossroads Mall in St. Cloud, Minnesota with the
addition of a 100,000 square foot Scheels All-Sports and new 900-seat
food court.
WEBCAST/CONFERENCE CALL
General Growth will host a live webcast of its conference call regarding
this announcement on the Company's web site, http://www.generalgrowth.com . This
webcast will take place on Tuesday, February 5, 2002 at 10:00 a.m., Eastern
Time (9:00 a.m. CT, 8:00 a.m. MT, 7:00 a.m. PT). The webcast can be accessed
by selecting the conference call icon on the GGP home page. The call will be
archived subsequent to the end of the live webcast.
General Growth Properties, Inc. is one of the oldest and most experienced
shopping center owners, developers and managers in the United States. It
currently owns interests in and/or manages 141 shopping malls in 39 states,
comprising approximately 125 million square feet of retail space.
This release may contain forward-looking statements that involve risks and
uncertainties. All statements other than statements of historical fact are
statements that may be deemed forward-looking statements, which are subject to
a number of risks, uncertainties and assumptions. Representative examples of
these risks, uncertainties and assumptions include (without limitation)
general industry and economic conditions, interest rate trends, cost of
capital and capital requirements, availability of real estate properties,
competition from other companies and venues for the sale/distribution of goods
and services, changes in retail rental rates in the Company's markets, shifts
in customer demands, tenant bankruptcies or store closures, changes in vacancy
rates at the Company's properties, changes in operating expenses, including
employee wages, benefits and training, governmental and public policy changes,
changes in applicable laws, rules and regulations (including changes in tax
laws), the ability to obtain suitable equity and/or debt financing, and the
continued availability of financing in the amounts and on the terms necessary
to support the Company's future business. Readers are referred to the
documents filed by the Company with the SEC, specifically the most recent
reports on Forms 10-K and 10-Q, which identify important risk factors which
could cause actual results to differ from those contained in the forward-
looking statements.
FUNDS FROM OPERATIONS and Three Months Ended Twelve Months Ended
PORTFOLIO RESULTS (unaudited) December 31, December 31,
(in thousands, except per
share data) 2001 2000 2001 2000
FUNDS FROM OPERATIONS (FFO)
Funds From Operations -
Operating Partnership $125,018 $105,370 $376,799 $330,299
Less: Allocations to
Operating Partnership
unitholders $33,422 $28,831 $101,844 $90,805
Funds From Operations -
Company stockholders (a) $91,596 $76,539 $274,955 $239,494
Funds From Operations per
share - basic $1.70 $1.47 $5.20 $4.60
Funds From Operations per
share - diluted (b) $1.60 $1.39 $4.96 $4.42
Weighted average number of
Company shares outstanding -
basic
(assuming full conversion of
Operating Partnership units) 73,563 71,868 72,419 71,796
Weighted average number of
Company shares outstanding -
diluted
(assuming full conversion of
Operating Partnership units
and convertible preferred
stock) 82,140 80,415 80,981 80,335
PORTFOLIO RESULTS (c)
Total revenues (d) $328,897 $319,026 $1,156,224 $1,111,660
Operating expenses (excluding
discontinuance costs) (e) (118,176) (117,589) (430,573) (427,347)
Net operating income 210,721 201,437 725,651 684,313
General and administrative
expenses (2,850) (2,962) (11,275) (11,483)
Interest expense, net (e) (72,821) (83,073) (297,447) (308,710)
Convertible preferred stock
dividends (6,116) (6,116) (24,467) (24,467)
Perpetual preferred
distributions (3,916) (3,916) (15,663) (9,354)
Funds From Operations -
Operating Partnership 125,018 105,370 376,799 330,299
Depreciation and amortization
of capitalized real estate
costs other than amortization
of financing costs (53,755) (43,380) (200,472) (172,787)
Net gain/(loss) on sales (not
included in FFO) (f) - (1,005) - (1,005)
Network discontinuance costs
(not included in FFO) - - (66,000) -
Allocations to Operating
Partnership unitholders (15,763) (16,707) (25,128) (43,026)
Income available to common
stockholders before
extraordinary items and
change in accounting 55,500 44,278 85,199 113,481
Extraordinary items (g) (12,758) - (14,022) -
Cumulative effect of
accounting change (h) - - (3,334) -
Net income (loss) available to
common stockholders 42,742 44,278 67,843 113,481
Weighted average number of
Company shares outstanding -
basic 53,990 52,268 52,845 52,058
Weighted average number of
Company shares outstanding -
diluted 54,067 52,314 52,907 52,096
Earnings before extraordinary
items and cumulative effect
of accounting change per
share - basic $1.03 $0.85 $1.61 $2.18
Earnings before extraordinary
items and cumulative effect
of accounting change per
share - diluted $1.03 $0.85 $1.61 $2.18
Earnings (loss) per share -
basic $0.79 $0.85 $1.28 $2.18
Earnings (loss) per share -
diluted $0.79 $0.85 $1.28 $2.18
December December
SUMMARIZED BALANCE SHEET 31, 31,
INFORMATION (unaudited) 2001 2000
Cash and marketable securities $315,858 $27,229
Investment in real estate, net $5,115,927 $4,944,336
Total assets $5,661,412 $5,277,104
Mortgage and other notes
payable $3,398,207 $3,244,126
Minority interest $555,310 $530,158
Convertible preferred stock $337,500 $337,500
Stockholders' equity $1,183,252 $938,418
Total capitalization (at cost) $5,474,269 $5,050,202
PORTFOLIO CAPITALIZATION DATA
(unaudited)
Total portfolio debt (Company
debt above ($3,398,207 and
$3,244,126, respectively)
plus pro rata share of debt
($1,610,573 and $1,295,910,
respectively) from unconsolidated
affiliates) $5,008,780 $4,540,036
Convertible preferred stock 356,400 337,500
Perpetual preferred Operating
Partnership units 175,000 175,000
Stock market value of common stock
and Operating Partnership units
outstanding at end of period 3,162,061 2,278,959
Total market capitalization at
end of period $8,702,241 $7,331,495
(a) Excludes cumulative Network Services discontinuance costs of $66,000
in 2001 ($65,000 of which was incurred as of June 2001), which
management does not believe should be included in the calculation of
FFO.
(b) Due to an equity issuance late in the fourth quarter of 2001, the sum
of four quarters of FFO per share is $.01 less than the actual full
year 2001 FFO per share of $4.96.
(c) Portfolio results combine the revenues and expenses of General Growth
Management, Inc. (a Taxable REIT Subsidiary) with the applicable
ownership percentage multiplied by the revenues and expenses from
properties wholly and/or partially owned by the Operating Partnership.
(d) Includes straight-line rent of $7,631, $5,364, $13,839, and $17,333
for the three and twelve months ended December 31, 2001 and 2000,
respectively.
(e) As of fourth quarter 2001 the company now reflects amortization of
deferred financing costs as additional interest expense.
Previously, said amortization was reflected as an operating expense.
Year 2000 results have been reclassed to maintain comparability.
This change does not affect past, current or future FFO per share or
EPS.
(f) Includes the Operating Partnership's share of net gains/(losses) from
the sale of properties.
(g) Charges due to early retirement of debt.
(h) Accounting change required due to adoption of SFAS 133 - Accounting
for Derivatives and Financial Instruments, effective January 1, 2001
and excluded from FFO as provided by NAREIT.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2001
(In thousands, unaudited)
Wholly-
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $133,006 $64,030 $197,036
Tenant recoveries 56,519 30,678 87,197
Overage rents 11,418 5,727 17,145
Other 5,981 2,534 8,515
TRS 19,004 - 19,004
Total revenues 225,928 102,969 328,897
Operating expenses (c) (82,855) (35,321) (118,176)
Net operating income 143,073 67,648 210,721
General and administrative expenses (1,553) (1,297) (2,850)
Interest expense, net (52,313) (20,508) (72,821)
Convertible preferred stock dividends (6,116) - (6,116)
Perpetual preferred distributions (3,916) - (3,916)
Operating Partnership Funds From
Operations $79,175 $45,843 $125,018
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2000
(In thousands, unaudited)
Wholly-
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $124,744 $58,968 $183,712
Tenant recoveries 55,131 27,535 82,666
Overage rents 13,934 6,804 20,738
Other 2,393 2,363 4,756
Fees 27,154 - 27,154
Total revenues 223,356 95,670 319,026
Operating expenses (84,690) (32,899) 117,589
Net operating income 138,666 62,771 201,437
General and administrative expenses (1,630) (1,332) (2,962)
Interest expense, net (59,064) 24,009 83,073
Convertible preferred stock dividends (6,116) - (6,116)
Perpetual preferred distributions (3,916) - (3,916)
Operating Partnership Funds From
Operations $67,940 $37,430 $105,370
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $7,631 and $5,364 for the three
months ended December 31, 2001 and 2000, respectively.
(c) Includes expenses of the TRS (Taxable REIT Subsidiary or former
Preferred Stock Subsidiary) and excluding depreciation and
amortization of capitalized real estate costs.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2001
(In thousands, unaudited)
Wholly-
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $468,617 $227,813 $696,430
Tenant recoveries 221,850 111,637 333,487
Overage rents 22,849 7,788 30,637
Other 22,934 5,277 28,211
TRS 67,459 - 67,459
Total revenues 803,709 352,515 1,156,224
Operating expenses (c) (296,715) (133,858) (430,573)
Net operating income 506,994 218,657 725,651
General and administrative expenses (6,006) (5,269) (11,275)
Interest expense, net (209,623) (87,824) (297,447)
Convertible preferred stock dividends (24,467) - (24,467)
Perpetual preferred distributions (15,663) - (15,663)
Operating Partnership Funds From
Operations (d) $251,235 $125,564 $376,799
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000
(In thousands, unaudited)
Wholly-
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $439,981 $202,122 $642,103
Tenant recoveries 213,502 100,939 314,441
Overage rents 28,626 8,493 37,119
Other 9,685 5,334 15,019
Fees 102,978 - 102,978
Total revenues 794,772 316,888 1,111,660
Operating expenses (308,332) (119,015) (427,347)
Net operating income 486,440 197,873 684,313
General and administrative expenses (6,351) (5,132) (11,483)
Interest expense, net (219,199) (89,511) (308,710)
Convertible preferred stock dividends (24,467) - (24,467)
Perpetual preferred distributions (9,354) - (9,354)
Operating Partnership Funds From
Operations $227,069 $103,230 $330,299
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $13,839 and $17,333 for the twelve
months ended December 31, 2001 and 2000, respectively.
(c) Includes expenses of the TRS (Taxable REIT Subsidiary or former
Preferred Stock Subsidiary) and excluding depreciation and
amortization of capitalized real estate costs.
(d) Excluding Network discontinuance costs of $66,000.
OTHER COMPANY PORTFOLIO DATA (a)
AS OF AND/OR FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2001
(unaudited)
Wholly-
Owned Unconsolidated Total or
Centers Centers Average
Space leased at centers not
under redevelopment 90.6% 91.4% 91.0%
Tenant allowances (in thousands) $23,338 $10,183 $33,521
Annualized sales per sq. ft. $348 $362 $355
Average annualized in place rent per
sq. ft. $29.20 $30.90 $30.05
Average rent per sq. ft.
for new/renewal leases $31.54 $35.04 $33.29
Average rent per sq. ft.
for leases expiring in 2001 $26.30 $28.42 $27.40
% change in total sales 0.7% 1.5% 1.2%
% change in comparable sales -1.0% -0.6% -0.8%
(a) Data is for 100% of the non-anchor GLA in each portfolio, including
those centers that are owned in part by unconsolidated affiliates.
SOURCE General Growth Properties, Inc.
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CONTACT:
John Bucksbaum, +1-312-960-5005, Bernard
Freibaum, +1-312-960-5252, or Beth Coronelli, +1-312-960-2750,
all of General Growth Properties, Inc.
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