CHICAGO, May 1 /PRNewswire/ -- General Growth Properties, Inc. (NYSE: GGP)
today announced an increase in Funds From Operations (FFO) for the quarter
ended March 31, 2001. This increase marks eight full years of consecutive
quarterly FFO growth. Since becoming a public company in April of 1993,
compounded annual growth in FFO per share has been 16%.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 )
"Given the current economic climate, I am pleased to report a 6.2%
increase in FFO per share for the first quarter," said John Bucksbaum, CEO of
General Growth Properties. "We have consistently managed and maintained
profitability throughout periods of economic weakness. I am confident that we
will continue to grow as expected and I am excited about our future going
forward."
FIRST QUARTER 2001 HIGHLIGHTS
-- FFO on a per share, fully diluted basis, for the quarter was $1.03,
compared to $.97 reported in first quarter 2000.
-- Total FFO for the quarter rose 7.0% to $77.0 million from $72.0 million
in the first quarter of 2000.
-- Prorata net operating income (NOI) increased by 8.8% in the quarter to
$164.3 million, from $151.1 million during the first quarter of 2000.
-- Comparable center ("same store") NOI increased by 4.7% over last year's
first quarter.
-- Total sales increased 7.5% and comparable sales increased 2.6% above
first quarter 2000.
-- Total prorata revenues were $272.0 million for the quarter, an increase
of 5.9% compared to $256.9 million for the same period in 2000.
-- Annualized sales per square foot increased to $360 as of March 31, 2001
versus $347 for the same period last year.
-- Mall shop space leased at the end of first quarter 2001 was 89%, the
same as it was at the end of the first quarter of 2000.
-- Average rent for new/renewal leases signed during the first quarter was
$34.01 versus $36.22 for the same period in 2000. Average rent for all
leases expiring in 2001 is $27.40, versus $29.29 in 2000.
-- On March 23, 2001, GGP announced the acquisition of Willowbrook Mall in
Houston, Texas by a 50/50 joint venture.
-- Effective January 1, 2001, General Growth acquired 100% of the common
stock of General Growth Management, Inc. (GGMI). GGMI will now be
treated as a taxable REIT subsidiary (TRS) in accordance with new tax
law provisions contained in the Tax Relief Extension Act of 1999.
GGMI's operations are now consolidated with GGP's other wholly-owned
activities. Prior to January 1, 2001, and by virtue of owning
preferred stock issued by GGMI, GGP utilized the equity method of
accounting to report its share of GGMI's profit. The first quarter
2000 portfolio results have been restated in this release to be
presented on a similar basis.
DEVELOPMENT/EXPANSION
During the quarter the following projects were completed:
-- Redevelopment of a 120,000 square-foot anchor store for Lord
and Taylor and a 22,000 square-foot Old Navy store at Landmark Mall in
Alexandria, Virginia
-- A new 160,000 square-foot Dillard's anchor store and a 30,000 square-
foot mall shop expansion, including a children's play area and family
restrooms, at Valley Hills Mall in Hickory, North Carolina
-- An outparcel bank building renovation at Fallbrook Mall in West Hills
(Los Angeles), California
-- A 30,000 square-foot Circuit City store at Steeplegate Mall in Concord,
New Hampshire
The following development projects are currently under construction:
-- Mall renovation at Lansing Mall in Lansing, Michigan to include the
relocation of the food court and the addition of a "streetscape" retail
presence and a new anchor store
-- Renovation and 91,500 square-foot second level expansion at Mayfair
Mall in Wauwatosa (Milwaukee), Wisconsin
-- A 1.3 million square-foot redevelopment of Park Mall in Tucson,
Arizona, adding a new wing and "streetscape" freestanding shops
-- Complete redevelopment of Eden Prairie Center in Eden Prairie
(Minneapolis), Minnesota with the addition of a 165,000 square-foot Von
Maur anchor department store
-- Renovation of the 1.2 million square-foot Southwest Plaza Mall in
Littleton (Denver), Colorado
-- Complete mall renovation at The Crossroads in Portage, Michigan,
including the addition of a new food court
-- A 30,000 square-foot food court redevelopment at Regency Square Mall in
Jacksonville, Florida
-- A 25,000 square-foot Barnes and Noble store at Lakeview Square Mall in
Battle Creek, Michigan
-- A 25,000 square-foot Old Navy store at Steeplegate Mall in Concord,
New Hampshire
WEBCAST/CONFERENCE CALL
General Growth will host a live webcast of its earnings conference call on
the company web site, http://www.generalgrowth.com , and StreetFusion.com . The
webcast will take place on Wednesday, May 2, 2001 at 10:00 a.m. Eastern
Daylight Time (9:00 a.m. CDT, 7:00 a.m. PDT). Both sites will archive the
call for one week 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 147 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 made by the
company and its management 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, 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 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
PORTFOLIO RESULTS (unaudited) March 31,
(in thousands, except per share data) 2001 2000
FUNDS FROM OPERATIONS (FFO)
Funds From Operations - Operating
Partnership $77,027 $71,966
Less: Allocations to Operating
Partnership unitholders $20,961 $19,870
Funds From Operations - Company
stockholders $56,066 $52,096
Funds From Operations per share - basic $1.07 $1.00
Funds From Operations per share - diluted $1.03 $0.97
Weighted average number of Company
shares outstanding - basic
(assuming full conversion of
Operating Partnership units) 71,944 71,722
Weighted average number of Company
shares outstanding - diluted
(assuming full conversion of
Operating Partnership units and
convertible preferred stock) 80,524 80,204
PORTFOLIO RESULTS (a)
Total revenues (b) $272,040 $256,932
Operating expenses (107,708) (105,831)
Net operating income 164,332 151,101
General and administrative expenses (2,822) (2,754)
Interest expense, net (74,451) (70,264)
Convertible preferred stock dividends (6,117) (6,117)
Perpetual preferred distributions (3,915) -
Funds From Operations - Operating
Partnership 77,027 71,966
Depreciation and amortization of
capitalized real estate costs other than
amortization of financing costs (45,364) (41,403)
Allocations to Operating Partnership
unitholders (7,709) (8,439)
Income available to common stockholders
before change in accounting 23,954 22,124
Cumulative effect of accounting change (c) (3,334) -
Net income available to common stockholders $20,620 $22,124
Weighted average number of Company
shares outstanding - basic 52,365 51,918
Weighted average number of Company
shares outstanding - diluted 52,444 51,936
Earnings before cumulative effect of
accounting change per share - basic $0.45 $0.43
Earnings before cumulative effect of
accounting change per share - diluted $0.45 $0.43
Earnings per share - basic $0.39 $0.43
Earnings per share - diluted $0.39 $0.43
March 31, Dec. 31,
SUMMARIZED BALANCE SHEET INFORMATION
(unaudited) 2001 2000
Cash and cash equivalents $22,095 $27,229
Investment in real estate, net $5,076,648 $4,951,336
Total assets $5,359,577 $5,284,104
Mortgage notes and other debt payable $3,360,742 $3,190,963
Minority interest $527,539 $530,158
Convertible preferred stock $337,500 $337,500
Stockholders' equity $932,803 $938,758
Total capitalization (at cost) $5,158,584 $4,997,379
PORTFOLIO CAPITALIZATION DATA
(unaudited)
Total portfolio debt (Company debt above
($3,360,742 and $3,190,963, respectively)
plus pro rata share of debt ($1,363,483 and
$1,295,910, respectively) from
unconsolidated affiliates) $4,724,225 $4,486,873
Convertible preferred stock 337,500 337,500
Perpetual preferred Operating
Partnership units 175,000 175,000
Stock market value of common stock and
Operating Partnership units outstanding
at end of period 2,515,128 2,600,975
Total market capitalization at end of
period $7,751,853 $7,600,348
(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 $2,952 and $3,689 for the three months
ended March 31, 2001 and 2000, respectively.
(c) 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 MARCH 31, 2001
(In thousands, unaudited)
Wholly Owned Unconsolidated (a) Total
Revenues
Minimum rents (b) $112,060 $52,288 $164,348
Tenant recoveries 55,150 26,454 81,604
Overage rents 4,137 590 4,727
Other 4,835 739 5,574
TRS 15,787 - 15,787
Total revenues 191,969 80,071 272,040
Operating expenses (c) (74,964) (32,744) (107,708)
Net operating income 117,005 47,327 164,332
General and administrative
expenses (1,517) (1,305) (2,822)
Interest expense, net (52,041) (22,410) (74,451)
Convertible preferred stock
dividends (6,117) - (6,117)
Perpetual preferred distributions (3,915) - (3,915)
Operating Partnership Funds From
Operations $53,415 $23,612 $77,027
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(In thousands, unaudited)
Wholly Owned Unconsolidated (a) Total
Revenues
Minimum rents (b) $102,002 $46,375 $148,377
Tenant recoveries 52,395 23,631 76,026
Overage rents 2,670 385 3,055
Other 5,416 632 6,048
Fees 23,426 - 23,426
Total revenues 185,909 71,023 256,932
Operating expenses (c) (76,408) (29,423) (105,831)
Net operating income 109,501 41,600 151,101
General and administrative expenses (1,429) (1,325) (2,754)
Interest expense, net (49,652) (20,612) (70,264)
Convertible preferred
stock dividends (6,117) - (6,117)
Operating Partnership Funds From
Operations $52,303 $19,663 $71,966
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $2,952 and $3,689 for the three
months ended March 31, 2001 and 2000, respectively.
(c) Includes expenses of the TRS (Taxable REIT Susidiary or former
Preferred Stock Subsidiary) and 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 THREE MONTHS ENDED MARCH 31, 2001
(unaudited)
Wholly Owned Unconsolidated Total or
Centers Centers Average
Space leased at centers not under
redevelopment 89.6% 88.4% 89.0%
Tenant allowances (in thousands) $5,474 $2,456 $7,930
Annualized sales per sq. ft. $355 $365 $360
Average rent per sq. ft. for
new/renewal leases $29.46 $38.56 $34.01
Average rent per sq. ft. for leases
expiring in 2001 $26.30 $28.42 $27.40
% change in total sales 7.0% 8.0% 7.5%
% change in comparable sales 2.4% 2.8% 2.6%
(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.
 back to top
Related links:
http://www.generalgrowth.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990208/CGM015
PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
John Bucksbaum, 312-960-5005, or Bernard
Freibaum, 312-960-5252, both of General Growth Properties, Inc.
|
