CHICAGO, July 31 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced an increase of 9% in Funds From Operations (FFO)
per share for the quarter ended June 30, 2001. Since becoming a public
company in April 1993, General Growth has achieved uninterrupted consecutive
quarterly FFO growth. FFO per share has increased approximately 16% on a
compounded annual basis.
"General Growth is positioned to grow as we manage through the challenges
faced in today's economic environment," said John Bucksbaum, CEO of General
Growth Properties. "Our existing centers offer us many opportunities, through
renovation, remerchandising, and expansion, to continually grow and increase
profitability. This ability to drive change at our properties is just one
reason we are excited about the future of General Growth and our industry."
SECOND QUARTER 2001
- FFO for the quarter was a record $1.09 per share, on a fully diluted
basis, compared to $1.00 reported in second quarter 2000.
- Total FFO for the quarter rose 10.8% to $81.8 million from $73.8 million
in the second quarter of 2000.
- Prorata net operating income (NOI) increased by 4.8% in the quarter to
$165.7 million, from $158.1 million during the second quarter of 2000.
- Comparable center (same store) NOI increased by 4.6% over last year's
second quarter.
- Year-to-date total sales increased 5.6% and comparable sales increased
0.2% above last year.
- Total prorata revenues were $274.1 million for the quarter, an increase
of 4.3% compared to $262.8 million for the same period in 2000.
- Annualized sales per square foot increased to $363 as of June 30, 2001
versus $350 for the same period last year.
- Mall shop space leased at the end of second quarter 2001 declined to
88.2%, compared to 89.0% at the end of last quarter.
- Average rent per square foot for new/renewal leases signed during the
first six months of the year was $32.01 versus $34.63 for the same
period in 2000. Average rent for all leases expiring in 2001 is $27.40,
versus $29.29 in 2000.
- The company discontinued its Network Services business. The
discontinuation of this operation resulted in a non-recurring, pre-tax
charge to second quarter 2001 earnings of $65 million, which management
believes should not be included in the calculation of FFO.
DEVELOPMENT/EXPANSION
During the quarter the following projects were completed:
- An Old Navy store at Steeplegate Mall in Concord, New Hampshire and at
Colony Square in Zanesville, Ohio
The following development projects are currently under construction:
- A 91,500 square-foot second level expansion and mall renovation at
Mayfair Mall in Wauwatosa (Milwaukee), Wisconsin, with Grand Opening
scheduled for August 2001
- A 1.1 million square-foot redevelopment/renovation of Park Place in
Tucson, Arizona scheduled for completion in mid-August 2001, adding a
new food/entertainment wing, "streetscape" freestanding shops, and a
total remerchandising
- Complete redevelopment/remerchandising of Eden Prairie Center in Eden
Prairie (Minneapolis), Minnesota with the addition of a 165,000
square-foot Von Maur anchor department store, an 18-screen theater with
stadium seating, and upscale restaurants
- Renovation of the Parks at Arlington in Arlington (Dallas), Texas,
adding a Great Indoors, Galyan's, multi-complex theater, ice rink, and
an additional 40,000 square feet of retail space
- Mall renovation at Lansing Mall in Lansing, Michigan, to include the
relocation of the food court, as well as the addition of a "streetscape"
retail presence and a new anchor 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
- Expansion of the food court and the addition of a Barnes and Noble store
at Apache Mall in Rochester, Minnesota
- Renovation of Valley Plaza in Bakersfield, California, to include the
expansion of the food court 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
- 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
- Redevelopment of a 120,000 square-foot anchor store for Lord and Taylor
at Landmark Mall in Alexandria, Virginia
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 , and
http://www.StreetFusion.com . The webcast will take place on Wednesday, August 1,
2001 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. 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 146 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 Six Months Ended
PORTFOLIO RESULTS (unaudited) June 30, June 30,
(in thousands, except per share
data) 2001 2000 2001 2000
FUNDS FROM OPERATIONS (FFO)
Funds From Operations -
Operating Partnership $81,834 $73,847 $158,860 $145,813
Less: Allocations to Operating
Partnership unitholders $22,250 $20,374 $43,211 $40,244
Funds From Operations - Company
stockholders (a) $59,584 $53,473 $115,649 $105,569
Funds From Operations per share
- basic $1.14 $1.03 $2.21 $2.03
Funds From Operations per share
- diluted $1.09 $1.00 $2.12 $1.97
Weighted average number of
Company shares outstanding -
basic
(assuming full conversion of
Operating Partnership units) 71,985 71,764 71,965 71,743
Weighted average number of
Company shares outstanding -
diluted
(assuming full conversion of
Operating Partnership units
and
convertible preferred stock) 80,581 80,312 80,548 80,277
PORTFOLIO RESULTS (b)
Total revenues (c) $274,121 $262,816 $546,160 $519,748
Operating expenses (excluding
discontinuance costs) (108,434) (104,725) (216,142) (210,556)
Net operating income 165,687 158,091 330,018 309,192
General and administrative
expenses (3,180) (2,996) (6,002) (5,750)
Interest expense, net (70,641) (73,608) (145,092) (143,872)
Convertible preferred stock
dividends (6,117) (6,117) (12,234) (12,234)
Perpetual preferred
distributions (3,915) (1,523) (7,830) (1,523)
Funds From Operations -
Operating Partnership 81,834 73,847 158,860 145,813
Depreciation and amortization
of capitalized real estate
costs other than amortization
of financing costs (49,836) (43,696) (95,199) (85,099)
Network discontinuance costs
(not included in FFO) (65,000) - (65,000) -
Allocations to Operating
Partnership unitholders 9,255 (8,318) 1,546 (16,757)
Income available to common
stockholders before
extraordinary items and change
in accounting (23,747) 21,833 207 43,957
Extraordinary items (d) (1,011) - (1,011) -
Cumulative effect of accounting
change (e) - - (3,334) -
Net income (loss) available to
common stockholders (24,758) 21,833 (4,138) 43,957
Weighted average number of
Company shares outstanding -
basic 52,413 51,965 52,389 51,942
Weighted average number of
Company shares outstanding -
diluted 52,508 52,012 52,472 51,975
Earnings before extraordinary
items and cumulative effect of
accounting change per share -
basic $(0.45) $0.42 $- $0.85
Earnings before extraordinary
items and cumulative effect of
accounting change per share -
diluted $(0.45) $0.42 $- $0.85
Earnings (loss) per share -
basic $(0.47) $0.42 $(0.08) $0.85
Earnings (loss) per share -
diluted $(0.47) $0.42 $(0.08) $0.85
June 30, December 31,
SUMMARIZED BALANCE SHEET INFORMATION
(unaudited) 2001 2000
Cash and cash equivalents $47,761 $27,229
Investment in real estate, net $5,078,735 $4,951,336
Total assets $5,370,057 $5,284,104
Mortgage notes and other debt payable $3,442,345 $3,244,126
Minority interest $508,341 $530,158
Convertible preferred stock $337,500 $337,500
Stockholders' equity $881,237 $938,418
Total capitalization (at cost) $5,169,423 $5,050,202
PORTFOLIO CAPITALIZATION DATA
(unaudited)
Total portfolio debt (Company debt
above ($3,442,345 and $3,244,126,
respectively) plus pro rata
share of debt ($1,361,933 and
$1,295,910, respectively) from
unconsolidated affiliates) $4,804,278 $4,540,036
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 3,158,246 2,600,975
Total market capitalization at end
of period $8,474,953 $7,653,511
(a) Excludes Network Services discontinuance costs of $65,000, which
management does not believe should be included in the calculation of
FFO.
(b) 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.
(c) Includes straight-line rent of $3,526, $3,826, $6,208 and $7,515 for
the three and six months ended June 30, 2001 and 2000, respectively.
(d) Charges related to early retirement of debt.
(e) 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 JUNE 30, 2001
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $108,886 $55,450 $164,336
Tenant recoveries 54,790 27,806 82,596
Overage rents 3,531 569 4,100
Other 6,366 753 7,119
TRS 15,970 - 15,970
Total revenues 189,543 84,578 274,121
Operating expenses (c) (74,828) (33,606) (108,434)
Net operating income 114,715 50,972 165,687
General and administrative expenses (1,827) (1,353) (3,180)
Interest expense, net (48,546) (22,095) (70,641)
Convertible preferred stock dividends (6,117) - (6,117)
Perpetual preferred distributions (3,915) - (3,915)
Operating Partnership Funds From
Operations (d) $54,310 $27,524 $81,834
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $105,275 $47,226 $152,501
Tenant recoveries 53,256 24,429 77,685
Overage rents 3,116 549 3,665
Other 1,681 687 2,368
Fees 26,597 - 26,597
Total revenues 189,925 72,891 262,816
Operating expenses (75,559) (29,166) (104,725)
Net operating income 114,366 43,725 158,091
General and administrative expenses (1,743) (1,253) (2,996)
Interest expense, net (52,906) (20,702) (73,608)
Convertible preferred stock dividends (6,117) - (6,117)
Operating Partnership Funds From
Operations (1,523) - (1,523)
$52,077 $21,770 $73,847
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $3,256 and $3,826 for the three
months ended June 30, 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 other than
amortization of financing fees.
(d) Excluding Network discontinuance costs of $65,000.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2001
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $220,946 $107,737 $328,683
Tenant recoveries 109,940 54,260 164,200
Overage rents 7,668 1,158 8,826
Other 11,201 1,493 12,694
TRS 31,757 - 31,757
Total revenues 381,512 164,648 546,160
Operating expenses
Operating expenses (c) (149,792) (66,350) (216,142)
Net operating income 231,720 98,298 330,018
General and administrative expenses (3,344) (2,658) (6,002)
Interest expense, net (100,587) (44,505) (145,092)
Convertible preferred stock dividends (12,234) - (12,234)
Perpetual preferred distributions (7,830) - (7,830)
Operating Partnership Funds From
Operations (d) $107,725 $51,135 $158,860
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $207,277 $93,601 $300,878
Tenant recoveries 105,651 48,060 153,711
Overage rents 5,786 934 6,720
Other 5,404 1,319 6,723
Fees 51,716 - 51,716
Total revenues 375,834 143,914 519,748
Operating expenses (151,967) (58,589) (210,556)
Net operating income 223,867 85,325 309,192
General and administrative expenses (3,172) (2,578) (5,750)
Interest expense, net (102,558) (41,314) (143,872)
Convertible preferred stock dividends (12,234) - (12,234)
Operating Partnership Funds From
Operations (1,523) - (1,523)
$104,380 $41,433 $145,813
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $6,208 and $7,515 for the six months
ended June 30, 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 other than
amortization of financing fees.
(d) Excluding Network discontinuance costs of $65,000.
OTHER COMPANY PORTFOLIO DATA (a)
AS OF AND/OR FOR THE SIX MONTHS ENDED JUNE 30, 2001
(unaudited)
Wholly Total
Owned Unconsolidated or
Centers Centers Average
Space leased at centers not under
redevelopment 88.8% 87.5% 88.2%
Tenant allowances (in thousands) $10,660 $4,749 $15,409
Annualized sales per sq. ft. $356 $370 $363
Average rent per sq. ft. for
new/renewal leases $30.66 $34.59 $32.01
Average rent per sq. ft. for leases
expiring in 2001 $26.30 $28.42 $27.40
% change in total sales 6.6% 4.5% 5.6%
% change in comparable sales 0.1% 0.3% 0.2%
(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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PR Newswire Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/110740.html /Web site:
http://www.generalgrowth.com
CONTACT:
John Bucksbaum, +1-312-960-5005, or Bernard
Freibaum, +1-312-960-5252, both of General Growth Properties,
Inc.
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