CHICAGO, Feb. 6 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced a 10% increase in Funds From Operations ("FFO")
for the year ended December 31, 2000. Since going public in 1993, General
Growth's FFO per share has increased at a compound annual growth rate of
approximately 16%.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 )
"A tepid holiday sales season coupled with higher than expected short term
interest rates during the fourth quarter reduced our anticipated FFO by
approximately $6.3 million. After taking these items into account, we were
still able to achieve a respectable 10% increase in FFO per share for the full
year," stated John Bucksbaum, CEO of General Growth Properties. "Despite
collecting approximately $5 million less in percentage rent and paying
approximately $1.3 million more in interest during the last quarter, I still
believe that,7 depending upon the severity of the current downturn, we will
deliver FFO per share between $4.86 and $5.00 in 2001. I am already
encouraged by our preliminary January sales reports," he added.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
-- FFO on a per share, fully diluted basis, for the quarter was $1.39,
3.7% above a comparable fourth quarter of 1999, which when utilizing
the new method of accounting for percentage rent in 1999, would have
resulted in FFO per share of $1.34. FFO per fully diluted share for
the twelve months ended December 31, 2000 was $4.42, approximately
10% higher than the $4.02 of FFO in 1999.
-- Total FFO for the quarter was approximately $105.4 million versus
$89.8 million in the fourth quarter of 1999. For the twelve months
ended December 31, 2000, total FFO increased to $330.3 million
compared to $274.2 million for the same period in 1999. Accordingly,
total FFO in 2000 increased by 20.5% over 1999.
-- Prorata net operating income ("NOI") increased by approximately 17.2%
in the quarter to $196.6 million, from $167.8 million during the
fourth quarter of 1999. For the twelve months ended December 31,
2000, prorata NOI increased by 23.4% to $674.2 million, up from
$546.5 million in 1999.
-- Comparable center ("same store") NOI increased by approximately 6.2%
during the quarter and 7.1% for the full year.
-- Total prorata revenues were $319.0 million for the quarter, an
increase of approximately 13.8% compared to $280.2 million for the
same period in 1999. Total prorata revenues for the twelve months
ended December 31, 2000 were $1.1 billion, or 22.6% above the
$907 million for the same period in 1999.
-- Total sales increased 7.4% for the full year 2000 and comparable sales
increased by 2.4% for the same period.
-- Annualized sales per square foot increased to $357 as of December 31,
2000 versus $341 at the end of 1999.
-- Mall shop occupancy increased to 91.0% at December 31, 2000 versus
90.1% in 1999.
-- Average rents for new/renewal leases signed for the year were $35.24
versus $33.78 in 1999 and average rents for all leases expiring in
2000 were $29.29 versus $26.04 in 1999.
DEVELOPMENT/EXPANSION ACTIVITY
During the quarter the following projects were completed:
1) 49,900 square-foot Richman Gordman's 1/2 price store at Market Place
Mall in Champaign, Illinois
2) 29,000 square-foot expansion of Kohl's department store at Market
Place Mall in Champaign, Illinois
3) Valley Hills Mall redevelopment in Hickory, North Carolina
4) A 16,000 square-foot Country Inn Hotel on an outparcel at Buckland
Hills Mall in Manchester (Hartford), Connecticut
The following development projects are currently under construction:
-- Renovation and 91,500 square-foot second level expansion at Mayfair
Mall in Wauwatosa (Milwaukee), Wisconsin
-- A 1,325,000 square-foot redevelopment at Park Mall in Tucson, Arizona
-- A 30,000 square-foot food court addition at Regency Square Mall in
Jacksonville, Florida
-- Eden Prairie Center redevelopment in Eden Prairie (Minneapolis),
Minnesota
-- Renovation of the 1.2 million square-foot Southwest Plaza Mall in
Littleton (Denver), Colorado
-- Renovation and outparcel development work at Cumberland Mall in
Atlanta, Georgia
-- An 83,000 square-foot Best Buy addition on an outparcel at West Valley
Mall in Tracy, California
-- Renovation of a bank building at Fallbrook Mall in West Hills (Los
Angeles), California
-- A 25,000 square-foot Barnes and Noble at Lakeview Square Mall in
Battle Creek, Michigan
-- A 30,000 square-foot Circuit City at Steeplegate Mall in Concord, New
Hampshire
-- A 25,000 square-foot Old Navy at Steeplegate Mall in Concord, New
Hampshire
-- Food court addition and mall renovation at The Crossroads in Portage,
Michigan
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 146 shopping malls in 39 states,
comprising over 116 million square feet of retail space.
This release may contain forward-looking statements that involve risks and
uncertainties. Actual future performance, outcomes and results may differ
materially from those expressed in forward-looking statements as a result of a
number of risks, uncertainties and assumptions. Representative examples of
these factors 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, shifts in customer
demands, tenant bankruptcies, changes in operating expenses, including
employee wages, benefits and training, governmental and public policy changes
and the continued availability of financing in the amounts and the terms
necessary to support future business. Readers are referred to the documents
filed by General Growth Properties, Inc. 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) 2000 1999 2000 1999
FUNDS FROM OPERATIONS (FFO)
Funds From Operations -
Operating Partnership $105,370 $89,758 $330,299 $274,234
Less: Allocations to
Operating Partnership
unitholders $28,831 $25,341 $90,805 $82,631
Funds From Operations -
Company stockholders $76,539 $64,417 $239,494 $191,603
Funds From Operations per
share - basic $1.47 $1.28 $4.60 $4.17
Funds From Operations per
share - diluted $1.39 $1.22 $4.42 $4.02
Weighted average number of
Company shares outstanding -
basic
(assuming full conversion
of Operating Partnership
units) 71,868 70,292 71,796 65,752
Weighted average number of
Company shares outstanding -
diluted
(assuming full conversion
of Operating Partnership
units and convertible
preferred stock) 80,415 78,775 80,335 74,343
PORTFOLIO RESULTS (a)
Total revenues (b) $319,026 $280,218 $1,111,660 $907,021
Operating expenses (122,413) (112,431) (437,504) (360,506)
Net operating income 196,613 167,787 674,156 546,515
General and administrative
expenses (2,962) (2,756) (11,483) (9,134)
Interest expense, net (78,249) (69,157) (298,553) (238,680)
Convertible preferred stock
dividends (6,116) (6,116) (24,467) (24,467)
Perpetual preferred
distributions (3,916) - (9,354) -
Funds From Operations -
Operating Partnership 105,370 89,758 330,299 274,234
Depreciation and amortization
of capitalized real estate
costs other than amortization
of financing costs (43,380) (45,847) (172,787) (155,491)
Net gain/(loss) on sales (not
included in FFO) (c) (1,005) 1,418 (1,005) 4,759
Allocations to Operating
Partnership unitholders (16,707) (13,062) (43,026) (33,058)
Income available to common
stockholders before
extraordinary item 44,278 32,267 113,481 90,444
Extraordinary item (d) - - - (13,786)
Net income available to
common stockholders $44,278 $32,267 $113,481 $76,658
Weighted average number of
Company shares outstanding -
basic 52,268 51,694 52,058 45,940
Weighted average number of
Company shares outstanding -
diluted 52,314 51,695 52,096 46,031
Earnings before extraordinary
item per share - basic $0.85 $0.62 $2.18 $1.97
Earnings before extraordinary
item per share - diluted $0.85 $0.62 $2.18 $1.96
Earnings per share - basic $0.85 $0.62 $2.18 $1.67
Earnings per share - diluted $0.85 $0.62 $2.18 $1.67
December 31, December 31,
SUMMARIZED BALANCE SHEET
INFORMATION (unaudited) 2000 1999
Cash and cash equivalents $27,229 $25,593
Investment in real estate,
net $4,951,336 $4,647,017
Total assets $5,284,104 $4,954,895
Mortgage notes payable $3,190,963 $3,119,534
Minority interest $530,158 $356,540
Convertible preferred stock $337,500 $337,500
Stockholders' equity $938,418 $927,758
Total capitalization (at
cost) $4,997,039 $4,741,332
PORTFOLIO CAPITALIZATION DATA
(unaudited)
Total portfolio debt (Company
debt above ($3,190,963 and
$3,119,534, respectively)
plus pro rata
share of debt ($1,295,910
and $1,213,256,
respectively) from
unconsolidated affiliates) $4,486,873 $4,332,790
Convertible preferred stock 337,500 337,500
Perpetual preferred Operating
Partnership units 175,000 -
Stock market value of common
stock and Operating
Partnership units
outstanding at end of period 2,600,975 2,001,877
Total market capitalization
at end of period $7,600,348 $6,672,167
(a) Portfolio results combine the revenues and expenses of General Growth
Management, Inc. with the applicable ownership percentage
multiplied by the revenues and expenses from properties wholly and/or
partially owned by the Operating Partnership.
(b) Includes straight-line rent of $5,634, $5,118, $17,333 and $15,587 for
the three and twelve months ended December 31, 2000 and 1999,
respectively.
(c) Includes the Operating Partnership's share of net gains/(losses) from
the sale of properties.
(d) Charges related to early retirement of debt.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2000
(In thousands, unaudited)
Unconsol-
Wholly idated
Owned Centers
Centers (a) GGMI Total
Revenues
Minimum rents (b) $124,744 $58,968 $ - $183,712
Tenant recoveries 55,131 27,535 - 82,666
Percentage rents 13,934 6,804 - 20,738
Other 2,393 2,363 - 4,756
Fees 1,771 - 25,383 27,154
Total revenues 197,973 95,670 25,383 319,026
Operating expenses (c) (62,750) (33,799) (25,864) (122,413)
Net operating income 135,223 61,871 (481) 196,613
General and administrative
expenses (1,630) (1,332) - (2,962)
Interest expense, net (53,491) (23,109) (1,649) (78,249)
Convertible preferred
stock dividends (6,116) - - (6,116)
Perpetual preferred
distributions (3,916) - - (3,916)
Operating Partnership
Funds From Operations $70,070 $37,430 $(2,130) $105,370
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1999
(In thousands, unaudited)
Unconsol-
Wholly idated
Owned Centers
Centers (a) GGMI Total
Revenues
Minimum rents (b) $117,890 $43,677 $ - $161,567
Tenant recoveries 53,587 20,918 - 74,505
Percentage rents 10,402 2,282 - 12,684
Other 3,257 920 - 4,177
Fees 1,004 - 26,281 27,285
Total revenues 186,140 67,797 26,281 280,218
Operating expenses (c) (62,708) (25,749) (23,974) (112,431)
Net operating income 123,432 42,048 2,307 167,787
General and administrative
expenses (1,671) (1,085) - (2,756)
Interest expense, net (49,381) (17,114) (2,662) (69,157)
Convertible preferred stock
dividends (6,116) - - (6,116)
Operating Partnership Funds
From Operations $66,264 $23,849 $(355) $89,758
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $5,634 and $5,118 for the three months
ended December 31, 2000 and 1999, respectively.
(c) Excluding depreciation and amortization of capitalized real estate
costs other than amortization of financing costs.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000
(In thousands, unaudited)
Unconsol-
Wholly idated
Owned Centers
Centers (a) GGMI Total
Revenues
Minimum rents (b) $439,981 $202,122 $ - $642,103
Tenant recoveries 213,502 100,939 - 314,441
Percentage rents 28,626 8,493 - 37,119
Other 9,685 5,334 - 15,019
Fees 7,017 - 95,961 102,978
Total revenues 698,811 316,888 95,961 1,111,660
Operating expenses (c) (226,910) (122,146) (88,448) (437,504)
Net operating income 471,901 194,742 7,513 674,156
General and administrative
expenses (6,351) (5,132) - (11,483)
Interest expense, net (205,623) (86,380) (6,550) 298,553)
Convertible preferred stock
dividends (24,467) - - (24,467)
Perpetual preferred
distributions (9,354) - - (9,354)
Operating Partnership Funds
From Operations $226,106 $103,230 $963 $330,299
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1999
(In thousands, unaudited)
Unconsol-
Wholly idated
Owned Centers
Centers (a) GGMI Total
Revenues
Minimum rents (b) $387,547 $138,249 $ - $525,796
Tenant recoveries 180,584 67,933 - 248,517
Percentage rents 27,012 7,061 - 34,073
Other 11,795 2,734 - 14,529
Fees 5,405 - 78,701 84,106
Total revenues 612,343 215,977 78,701 907,021
Operating expenses (c) (204,833) (83,697) (71,976) (360,506)
Net operating income 407,510 132,280 6,725 546,515
General and administrative
expenses (5,857) (3,277) - (9,134)
Interest expense, net (169,502) (58,138) (11,040) (238,680)
Convertible preferred stock
dividends (24,467) - - (24,467)
Operating Partnership Funds
From Operations $207,684 $70,865 $(4,315) $274,234
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $17,333 and $15,587 for the twelve
months ended December 31, 2000 and 1999, respectively.
(c) Excluding depreciation and amortization of capitalized real estate
costs other than amortization of financing costs.
OTHER COMPANY PORTFOLIO DATA (a)
AS OF AND/OR FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2000
(unaudited)
Wholly Unconsol-
Owned idated Total or
Centers Centers Average
Space leased at centers not under
redevelopment 90.5% 91.5% 91.0%
Tenant allowances (in thousands) $22,791 $9,356 $32,147
Annualized sales per sq. ft. $354 $360 $357
Average rent per sq. ft. for
new/renewal leases $31.76 $38.72 $35.24
Average rent per sq. ft. for leases
expiring in 2000 $25.60 $32.98 $29.29
% change in total sales 8.3% 6.4% 7.4%
% change in comparable sales 2.0% 2.8% 2.4%
(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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Company News On-Call:
http://www.prnewswire.com/comp/110740.html or fax,
800-758-5804, ext. 110740
CONTACT:
John Bucksbaum, 312-960-5005, or Bernard
Freibaum, 312-960-5252, both of General Growth Properties
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