CHICAGO, Oct. 27 /PRNewswire-FirstCall/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced a 22.1% increase in Funds from Operations (FFO)
per share for third quarter 2003. Since becoming a public company more than
10 years ago, General Growth has increased FFO per share approximately 16% on
a compounded annual basis.
"I am pleased to report a strong increase in FFO per share for the
quarter," said John Bucksbaum, chief executive officer, General Growth
Properties. "We continue to operate our malls in a sound fundamental manner
that generates growth in cash flow thus creating long-term growth for our
owners."
FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- Earnings per share-diluted (EPS) in third quarter 2003 increased 4.2%
to $.74 versus $.71 for the comparable period in 2002. Earnings
before the cumulative effect of an accounting change, as described
below, increased 28.2% over the comparable period in 2002.
Reflected in third quarter EPS is a charge of approximately
$12 million, approximately $.17 on a diluted per share basis, as a
cumulative effect adjustment due to the required July 1, 2003
adoption of SFAS #150 -- "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity."
This new standard, which we understand may be reconsidered in the
near future by the FASB, requires the minority interests of four
consolidated property ventures, acquired as part of the 2002 JP
Realty purchase, to be reflected at their estimated fair values even
though the related venture assets continue to be reported at our
previous historical cost. Also reflected in third quarter 2003
results are the application of SFAS No. 141 and SFAS No. 142 which
resulted in an earnings increase of approximately $4.3 million or
$.06 per share-diluted in third quarter 2003.
-- FFO on a per share, fully-diluted basis, rose 22.1% to $1.71 in the
third quarter of 2003, up from $1.40 in the third quarter of 2002.
Total FFO for the quarter increased 29.1% to $155.7 million, from
$120.6 million in last year's third quarter. The application of SFAS
No. 141 and 142 resulted in an increase of approximately $8.2 million
in FFO or $.09 per fully-diluted share in third quarter 2003.
-- For fiscal year 2003, the company currently anticipates that FFO per
fully-diluted share, including the effects of SFAS No. 141 and SFAS
No. 142, will be in the range of $6.85 to $6.90.
-- Prorata real estate net operating income (NOI) increased 20.0% in the
quarter to $275.7 million, from $229.7 million during the third
quarter of 2002. Total prorata property revenues were $406.8 million
for the quarter, an increase of 20.9%, compared to $336.5 million for
the same period in 2002.
-- Total tenant sales increased 2.1% for third quarter 2003 and
comparable tenant sales decreased 0.5% versus the same period last
year.
-- Comparable center NOI increased by approximately 6.1% during the
third quarter.
-- Mall shop occupancy increased to 90.7%, compared to 88.7% in third
quarter 2002.
-- Sales per square foot, on a trailing 12 month basis, as of September
30, 2003, were $354 versus $351 at the end of third quarter 2002.
-- Average rent per square foot for new/renewal leases signed during the
first nine months of the year was $33.62 versus $34.75 for the same
period in 2002. Average rent for all leases expiring in 2003 is
$26.70 versus $29.90 in 2002.
-- On July 1, 2003, the company acquired the 49% ownership interest in
GGP Ivanhoe III previously held by joint venture partner Ivanhoe
Cambridge. In this transaction, seven of the eight malls owned by
GGP Ivanhoe III became 100% owned by General Growth and one mall was
transferred to a newly formed joint venture owned 49% by Ivanhoe
Cambridge and 51% by the company.
-- On August 27, 2003, the company acquired 100% of Lynnhaven Mall in
Virginia Beach, Virginia.
-- After quarter-end, on October 14, 2003, General Growth announced the
purchase of 100% of Sikes Senter in Wichita Falls, Texas and
agreements to acquire 100% of The Maine Mall in South Portland,
Maine, and 100% of Glenbrook Square in Fort Wayne, Indiana.
-- The company announced on October 1, 2003 a 25% dividend increase and,
subject to shareholder approval at a special meeting of stockholders
scheduled for November 20, 2003, a three-for-one stock split which,
if approved, would be effective on or about December 5, 2003.
General Growth, consistent with real estate industry and investment
community preferences, uses FFO as a supplemental measure of operating
performance for a real estate investment trust (REIT). The National
Association of Real Estate Investment Trusts (NAREIT) defines FFO as net
income (loss) (computed in accordance with Generally Accepted Accounting
Principles (GAAP)), excluding gains (or losses) from cumulative effects of
accounting changes, extraordinary items and sales of properties, plus real
estate related depreciation and amortization and after adjustments for
unconsolidated partnerships and joint ventures. The company considers FFO a
supplemental measure for equity REITs and a complement to GAAP measures
because it facilitates an understanding of the operating performance of the
company's properties without giving effect to real estate depreciation and
amortization, which is intended to allocate the cost of property over its
useful life. Since values for well-maintained real estate assets have
historically increased or decreased based upon prevailing market conditions,
the company believes that FFO provides investors with a clearer view of the
company's operating performance. A reconciliation of GAAP net income to FFO
is provided in the portfolio results schedule included herein. FFO does not
represent cash flow from operating activities in accordance with GAAP, should
not be considered as an alternative to net income (determined in accordance
with GAAP) and is not necessarily indicative of cash available to fund cash
needs. In addition, the company has presented FFO on a wholly owned and
prorata basis as we believe the detail of the operations of our unconsolidated
centers is important.
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, October 28, 2003 at 9:00 a.m., Eastern
Time (8:00 a.m. CT, 7:00 a.m. MT, 6:00 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 is the country's second largest shopping center
owner, developer and manager of regional shopping malls. General Growth
currently has ownership interest in, or management responsibility for, a
portfolio of 163 regional shopping malls in 39 states. The company portfolio
totals approximately 142 million square feet of retail space and includes over
16,000 retailers nationwide. A publicly traded REIT, General Growth Properties
is listed on the New York Stock Exchange under the symbol GGP. For more
information on General Growth Properties and its portfolio of malls, please
visit the company web site at http://www.generalgrowth.com .
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 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
PORTFOLIO RESULTS (unaudited) Three Months Ended Nine Months Ended
(in thousands, except per share September 30, September 30,
data) 2003 2002 2003 2002
FUNDS FROM OPERATIONS (FFO)
Funds From Operations -
Operating Partnership $155,750 $120,600 $412,596 $315,588
Less: Allocations to Operating
Partnership unitholders $33,644 $28,892 $94,649 $75,606
Funds From Operations - Company
stockholders $122,106 $91,708 $317,947 $239,982
Funds From Operations per share
- Company stockholders - basic $1.74 $1.47 $4.87 $3.86
Funds From Operations per share
- Operating Partnership - basic $1.74 $1.47 $4.87 $3.86
Funds From Operations per share
- Operating Partnership -
diluted $1.71 $1.40 $4.68 $3.70
Weighted average number of
Company shares outstanding -
basic 70,297 62,244 65,283 62,121
Weighted average number of
Company shares outstanding -
basic (assuming full
conversion of Operating
Partnership units) 89,666 81,812 84,717 81,692
Weighted average number of
Company shares outstanding -
diluted (assuming full
conversion of Operating
Partnership units and
convertible preferred stock) 91,124 90,493 90,934 90,345
PORTFOLIO RESULTS (a)
Total revenues (b),(c) $406,826 $336,528 $1,153,540 $887,061
Operating expenses (131,152) (106,842) (375,947) (282,241)
Real estate net operating income 275,674 229,686 777,593 604,820
Net General Growth Management,
Inc. (GGMI) operations 1,802 (1,328) 4,133 3,147
Headquarters and regional costs
including depreciation that
reduces FFO (13,651) (10,733) (50,511) (33,766)
General and administrative (1,854) (1,431) (7,296) (4,604)
Net interest expense (d) (96,045) (80,172) (268,045) (217,380)
Preferred stock dividends - (6,117) (13,030) (18,351)
Preferred unit distributions (10,176) (9,305) (30,248) (18,278)
Funds From Operations -
Operating Partnership 155,750 120,600 412,596 315,588
RECONCILIATION OF GAAP NET
INCOME TO FUNDS FROM OPERATIONS (e)
Net income (loss) available to
common stockholders $52,090 $44,467 $141,651 $110,581
Extraordinary items (d) - - - -
Cumulative effect of an
accounting change (f) 12,083 - 12,083 -
Income available to common
stockholders before
extraordinary items and
cumulative effect 64,173 44,467 153,734 110,581
Income from discontinued
operations, including gain on
sale (793) (360) (5,123) (1,118)
Income from continuing
operations 63,380 44,107 148,611 109,463
Allocations to Operating
Partnership unitholders 14,377 13,986 42,168 34,838
FFO of property sold in 2003 - 459 292 1,404
Depreciation and amortization of
capitalized real estate costs
(including SFAS #141 and #142
lease origination costs)
other than amortization of
financing costs 77,993 62,048 221,525 169,883
Funds From Operations -
Operating Partnership 155,750 120,600 412,596 315,588
Funds From Operations -
Operating Partnership
unitholders (33,644) (28,892) (94,649) (75,606)
Funds From Operations - Company
stockholders 122,106 91,708 317,947 239,982
RECONCILIATION OF WEIGHTED
AVERAGE SHARES OUTSTANDING
FOR GAAP AND FFO PER SHARE
COMPUTATIONS
Weighted average number of
Company shares outstanding -
for GAAP basic EPS 70,297 62,244 65,283 62,121
Full conversion of Operating
Partnership units 19,369 19,568 19,434 19,571
Weighted average number of
Company shares outstanding -
for basic FFO per share 89,666 81,812 84,717 81,692
Weighted average number of
Company shares outstanding -
for GAAP diluted EPS 70,575 62,424 65,502 62,273
Conversion of PIERS to Common
Stock 1,180 8,501 5,998 8,501
Full conversion of Operating
Partnership units 19,369 19,568 19,434 19,571
Weighted average number of
Company shares outstanding -
for diluted FFO per share 91,124 90,493 90,934 90,345
Earnings from continuing
operations per share - basic $0.90 $0.71 $2.28 $1.76
Earnings from continuing
operations per share - diluted $0.90 $0.71 $2.27 $1.76
Earnings from discontinued
operations per share - basic $0.01 $- $0.08 $0.02
Earnings from discontinued
operations per share - diluted $0.01 $- $0.08 $0.02
Earnings before cumulative
effect of accounting change per
share - basic $0.91 $0.71 $2.36 $1.78
Earnings before cumulative
effect of accounting change per
share - diluted $0.91 $0.71 $2.35 $1.78
Earnings (loss) per share -
basic $0.74 $0.71 $2.17 $1.78
Earnings (loss) per share -
diluted $0.74 $0.71 $2.16 $1.78
(a) 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.
(b) Includes straight-line rent of $4,754 and $4,287 for the three months
ended and $13,389 and $9,830 for the nine months ended September 30,
2003 and 2002, respectively.
(c) Includes non-cash rental revenue recognized pursuant to SFAS #141 and
#142 for the three and nine months ended September 30, 2003 of $8,222
and $18,976, respectively.
(d) As of the first quarter of 2003 and pursuant to SFAS #145 -
Rescission of FASB Statements 4,44 and 64 and Technical Corrections,
the Company now reflects costs related to the extinguishment of debt
as additional interest expense. Previously, such costs were reflected
as an extraordinary item. As required, FFO for the three and nine
months ended September 30, 2002 has been adjusted to maintain
comparability.
(e) Reconciliation of net income determined in accordance with generally
accepted accounting principles to FFO (Company non-GAAP supplemental
measure of operating performance) as defined by NAREIT and as
required by SEC Regulation G.
(f) As required by SFAS #150 - Accounting for Certain Financial
Instruments with Characteristics of Liabilities and Equity, this
amount reflects the adjustment to reflect the minority interests of
certain former JP Realty consolidated property partnerships at their
fair value as of July 1, 2003.
RECONCILIATION OF REAL
ESTATE PROPERTY NET
OPERATING INCOME Three Months Ended Nine Months Ended
TO GAAP OPERATING INCOME September 30, September 30,
(unaudited) 2003 2002 2003 2002
Real estate net operating
income, including
Unconsolidated Centers $275,674 $229,686 $777,593 $604,820
Real estate net operating
income - Unconsolidated
Centers (65,855) (61,633) (215,471) (175,975)
Real estate net operating
income - Wholly Owned Centers 209,819 168,053 562,122 428,845
GGMI fees 21,071 18,164 61,672 55,395
GGMI expenses (19,269) (19,492) (57,539) (52,248)
Headquarters/regional costs (5,003) (2,923) (23,881) (12,045)
General and administrative (1,675) (1,302) (6,479) (4,334)
Depreciation and
amortization (61,737) (45,923) (166,020) (124,300)
Other* 415 (455) 314 (1,402)
GAAP Operating income -
Consolidated General Growth
Properties, Inc. $143,621 $116,122 $370,189 $289,911
*Reflects discontinued
operations and minority
interest in Wholly-Owned
real estate net operating
income
SUMMARIZED BALANCE SHEET
INFORMATION (unaudited) September 30, December 31,
2003 2002
Cash and marketable
securities $138,331 $54,116
Investment in real estate
Net land, building and
equipment $7,603,259 $6,069,073
Developments in progress $118,861 $90,492
Investment in and loans
from Unconsolidated Real
Estate Affiliates $624,997 $766,519
Investment in real estate,
net $8,347,117 $6,926,084
Total assets $8,860,939 $7,280,822
Mortgage and other notes
payable $6,054,930 $4,592,311
Minority interest -
Preferred $468,614 $468,201
Minority interest - Common $419,634 $377,746
Preferred stock $- $337,500
Stockholders' equity $1,588,832 $1,196,525
Total capitalization (at
cost) $8,532,011 $6,972,283
PORTFOLIO CAPITALIZATION
DATA (unaudited)
Total portfolio debt
(Company debt above
($6,054,930 and $4,592,311,
respectively) plus pro rata
share of debt ($1,884,828
and $2,177,024, respectively)
from unconsolidated affiliates)
of which (after the effect
of the Company's current
swap agreements) $2,320,627
and $2,453,571, respectively,
is comprised of variable
rate debt. $7,939,758 $6,769,335
Preferred stock - 449,415
Preferred equity - primarily
preferred Operating
Partnership units 468,614 468,201
Stock market value of common
stock and common Operating
Partnership units
outstanding at end of
period 6,517,985 4,261,573
Total market capitalization
at end of period $14,926,357 $11,948,524
OTHER COMPANY PORTFOLIO DATA (a)
AS OF AND/OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 (unaudited)
Wholly Owned Unconsolidated Weighted
Centers Centers Average
Space leased at centers not
under redevelopment 91.1% 89.9% 90.7%
Tenant allowances/improvements and
capitalized leasing costs (in
thousands) $39,655 $17,365 $57,020
Trailing 12 month total sales per sq.
ft. $332 $388 $354
Average annualized in place rent per
sq. ft. $28.99 $32.35 $30.98
Average rent per sq. ft. for
new/renewal leases $31.53 $35.79 $33.62
Average rent per sq. ft. for leases
expiring in 2003 $22.16 $31.29 $26.70
% change in total sales 1.9% 2.5% 2.1%
% change in comparable sales -0.4% -0.7% -0.5%
(a) Data is for 100% of the mall non-anchor GLA in each portfolio,
including those centers that are owned in part by unconsolidated
affiliates. Data excludes properties currently being redeveloped
and/or remerchandised and miscellaneous (non-mall) properties.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b),(c) $204,972 $65,377 $270,349
Tenant recoveries 86,576 32,831 119,407
Overage rents 6,042 1,150 7,192
Other (d) 8,233 1,645 9,878
Total revenues 305,823 101,003 406,826
Operating expenses
Real estate taxes 23,901 9,077 32,978
Repairs and maintenance 20,584 7,319 27,903
Marketing 9,533 3,356 12,889
Other property operating costs 39,781 14,613 54,394
Provision for doubtful accounts 2,205 783 2,988
Total operating expenses 96,004 35,148 131,152
Real estate net operating income 209,819 65,855 275,674
GGMI fees (e) 21,071 - 21,071
GGMI expenses (e) (19,269) - (19,269)
Headquarters/regional costs (5,003) (5,779)(f) (10,782)
General and administrative (1,675) (179) (1,854)
Depreciation that reduces FFO (g) (2,869) - (2,869)
Interest income 611 373 984
Interest expense (72,058) (20,683) (92,741)
Amortization of deferred finance costs (1,628) (1,446) (3,074)
Debt extinguishment costs (h) (1,024) (190) (1,214)
Preferred stock dividends - - -
Preferred unit distributions (10,176) - (10,176)
Uncombined Funds From Operations 117,799 37,951 155,750
Equity in Funds from Operations of
Unconsolidated Centers 37,951 (37,951) -
Operating Partnership Funds From
Operations $155,750 $- $155,750
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $156,162 $61,396 $217,558
Tenant recoveries 69,328 33,287 102,615
Overage rents 4,385 931 5,316
Other (d) 9,873 1,166 11,039
Total revenues 239,748 96,780 336,528
Operating expenses
Real estate taxes 16,377 9,330 25,707
Repairs and maintenance 16,103 6,673 22,776
Marketing 7,708 5,516 13,224
Other property operating costs 30,722 12,077 42,799
Provision for doubtful accounts 785 1,551 2,336
Total operating expenses 71,695 35,147 106,842
Real estate net operating income 168,053 61,633 229,686
GGMI fees (e) 18,164 - 18,164
GGMI expenses (e) (19,492) - (19,492)
Headquarters/regional costs (2,923) (4,926)(f) (7,849)
General and administrative (1,302) (129) (1,431)
Depreciation that reduces FFO (g) (2,884) - (2,884)
Interest income 3,048 2,261 5,309
Interest expense (60,825) (22,507) (83,332)
Amortization of deferred finance
costs (1,288) (391) (1,679)
Debt extinguishment costs (h) (18) (452) (470)
Preferred stock dividends (6,117) - (6,117)
Preferred unit distributions (9,305) - (9,305)
Uncombined Funds From Operations 85,111 35,489 120,600
Equity in Funds from Operations of
Unconsolidated Centers 35,489 (35,489) -
Operating Partnership Funds From
Operations $120,600 $- $120,600
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart
entities and are reflected at the Operating Partnership's share of
such amounts.
(b) Includes straight-line rent of $4,754 and $4,287 for the three months
ended September 30, 2003 and 2002, respectively.
(c) Includes SFAS #141 and #142 minimum rent accretion of $8,222 for the
three months ended September 30, 2003.
(d) Includes zero and $459 for the three months ended September 30, 2003
and 2002, respectively, of net FFO of investment property sold in
2003.
(e) Represents the revenues and operating expenses of GGMI, the Company's
taxable REIT subsidiary.
(f) Headquarters/regional costs for the unconsolidated centers include
property management and other fees to GGMI.
(g) Represents depreciation on non-income producing assets including the
Company's headquarters building.
(h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission
of FASB Statements 4,44 and 64 and Technical Corrections, the Company
now reflects costs related to the extinguishment of debt as
additional interest expense. Previously, such costs were reflected as
an extraordinary item.
As required, third quarter 2002 FFO has been adjusted to maintain
comparability.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b),(c) $548,375 $214,172 $762,547
Tenant recoveries 238,232 107,773 346,005
Overage rents 16,086 3,410 19,496
Other (d) 21,204 4,288 25,492
Total revenues 823,897 329,643 1,153,540
Operating expenses
Real estate taxes 64,518 30,830 95,348
Repairs and maintenance 56,853 24,759 81,612
Marketing 25,294 10,926 36,220
Other property operating costs 109,392 46,175 155,567
Provision for doubtful accounts 5,718 1,482 7,200
Total operating expenses 261,775 114,172 375,947
Real estate net operating income 562,122 215,471 777,593
GGMI fees (e) 61,672 - 61,672
GGMI expenses (e) (57,539) - (57,539)
Headquarters/regional costs (23,881) (18,356)(f) (42,237)
General and administrative (6,479) (817) (7,296)
Depreciation that reduces FFO (g) (8,274) - (8,274)
Interest income 1,667 1,281 2,948
Interest expense (192,105) (66,633) (258,738)
Amortization of deferred finance
costs (5,076) (4,025) (9,101)
Debt extinguishment costs (h) (2,497) (657) (3,154)
Preferred stock dividends (13,030) - (13,030)
Preferred unit distributions (30,248) - (30,248)
Uncombined Funds From Operations 286,332 126,264 412,596
Equity in Funds from Operations of
Unconsolidated Centers 126,264 (126,264) -
Operating Partnership Funds From
Operations $412,596 $- $412,596
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $399,334 $174,996 $574,330
Tenant recoveries 183,621 89,945 273,566
Overage rents 11,529 2,747 14,276
Other (d) 21,735 3,154 24,889
Total revenues 616,219 270,842 887,061
Operating expenses
Real estate taxes 43,736 25,882 69,618
Repairs and maintenance 43,368 19,940 63,308
Marketing 18,459 9,539 27,998
Other property operating costs 78,139 36,900 115,039
Provision for doubtful accounts 3,672 2,606 6,278
Total operating expenses 187,374 94,867 282,241
Real estate net operating income 428,845 175,975 604,820
GGMI fees (e) 55,395 - 55,395
GGMI expenses (e) (52,248) - (52,248)
Headquarters/regional costs (12,045) (14,680)(f) (26,725)
General and administrative (4,334) (270) (4,604)
Depreciation that reduces FFO (g) (7,041) - (7,041)
Interest income 3,214 5,630 8,844
Interest expense (153,767) (67,685) (221,452)
Amortization of deferred finance
costs (3,100) (1,170) (4,270)
Debt extinguishment costs (h) (50) (452) (502)
Preferred stock dividends (18,351) - (18,351)
Preferred unit distributions (18,278) - (18,278)
Uncombined Funds From Operations 218,240 97,348 315,588
Equity in Funds from Operations of
Unconsolidated Centers 97,348 (97,348) -
Operating Partnership Funds From
Operations $315,588 $- $315,588
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart
entities and are reflected at the Operating Partnership's share of
such amounts.
(b) Includes straight-line rent of $13,389 and $9,830 for the nine months
ended September 30, 2003 and 2002, respectively.
(c) Includes SFAS #141 and #142 minimum rent accretion of $18,976 for the
nine months ended September 30, 2003.
(d) Includes $292 and $1,404 for the nine months ended September 30, 2003
and 2002, respectively, of net FFO of investment property sold in
2003.
(e) Represents the revenues and operating expenses of GGMI, the Company's
taxable REIT subsidiary.
(f) Headquarters/regional costs for the unconsolidated centers include
property management and other fees to GGMI.
(g) Represents depreciation on non-income producing assets including the
Company's headquarters building.
(h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission
of FASB Statements 4,44 and 64 and Technical Corrections, the Company
now reflects costs related to the extinguishment of debt as
additional interest expense. Previously, such costs were reflected as
an extraordinary item. As required, FFO for the nine months ended
September 30, 2002 has been adjusted to maintain comparability.
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, +1-888-776-6555 or +1-212-782-2840
Company News On-Call:
http://www.prnewswire.com/comp/110740.html
CONTACT:
John Bucksbaum, +1-312-960-5005, or Bernard
Freibaum, +1-312-960-5252, both of General Growth Properties
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