CHICAGO, Sept. 20 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today declared its fourth dividend for 2001 in the amount of
$0.65 per share, payable to common stock shareholders of record on October 15,
2001, with payment on October 31, 2001. The current dividend represents an
increase of approximately 23% over the previous quarterly dividend of
$0.53 per share.
Compounded growth in funds from operations per share has averaged 16% over
the last eight years and the company's dividend must be increased at this
point in time so that total dividends for the full year equal estimated
taxable income for 2001, thereby eliminating federal income tax liability at
the company level. The company currently expects to maintain this annualized
dividend of at least $2.60 per share throughout 2002, with consideration of a
potential further increase at this time next year.
"Despite the fact that we are required to pay out only 90% of our taxable
income to remain in compliance with minimum distribution requirements for real
estate investment trusts, we believe that it is in the best interest of our
shareholders to pay out 100% of our taxable income," said John Bucksbaum, CEO
of General Growth Properties.
"While providing our shareholders a substantial dividend increase, we
still currently expect the ratio of our dividends paid to funds from
operations in 2002 to remain under 50%, leaving us with at least $200 million
of undistributed funds from operations to use for growth and working capital,"
said Bernard Freibaum, CFO of General Growth Properties.
Also declared today was the fourth dividend for 2001 for the Preferred
Income Equity Redeemable Stock, Series A ("PIERS") Depositary Shares, in the
amount of $0.4531 per share, payable to preferred stock (depositary shares)
shareholders of record on October 5, 2001, with payment on October 15, 2001.
General Growth Properties, Inc. is one of the oldest and most experienced
shopping center owners, developers and managers in the United States. The
company currently has ownership interests in, or management responsibilities
for, 145 malls in 39 states, encompassing approximately 126 million square
feet. For more information, visit the General Growth Properties website at
http://www.generalgrowth.com .
This release may contain forward-looking statements that involve risks and
uncertainties. All statements other than those of historical fact may be
deemed forward-looking statements, which are subject to a number of risks,
uncertainties and assumptions. Representative examples 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 documents filed with the SEC, specifically
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.
SOURCE General Growth Properties, Inc.
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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 212-782-2840
Company News On-Call:
http://www.prnewswire.com/comp/110740.html
CONTACT:
Bernard Freibaum, +1-312-960-5252, or Beth
Coronelli, +1-312-960-2750, both of General Growth Properties
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