CHICAGO, Oct. 30 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced an increase of 16% in Funds From Operations (FFO)
per share for the quarter ended September 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.
"I am pleased to report that General Growth continues to provide strong
results for its shareholders. Our regional shopping malls have once again
shown their strength and stability in a weakening economic environment," said
John Bucksbaum, CEO of General Growth Properties. "General Growth is
positioned for future growth as it builds upon its solid fundamentals,
outstanding assets, and strong retailer relationships."
THIRD QUARTER 2001
- FFO for the quarter was a record $1.23 per share, on a fully diluted
basis, compared to $1.06 reported in third quarter 2000.
- Total FFO for the quarter rose 17.5% to $92.9 million from
$79.1 million in the third quarter of 2000.
- Prorata net operating income (NOI) increased by 5.1% in the quarter to
$176.9 million, from $168.4 million during the third quarter of 2000.
- Comparable center (same store) NOI increased by 4.8% over last year's
third quarter.
- Year-to-date total sales increased 3.3% and comparable sales were flat
compared to last year
- Total prorata revenues were $281.2 million for the quarter, an increase
of 3% compared to $272.9 million for the same period in 2000.
- Annualized sales per square foot increased to $360 as of September 30,
2001 versus $355 for the same period last year.
- Mall shop space leased at the end of third quarter 2001 increased
slightly to 88.3%, compared to 88.2% at the end of last quarter.
- Average rent per square foot for new/renewal leases signed for the
first nine months of the year was $33.16 versus average rent for all
leases expiring in 2001 of $27.40, representing a 21% increase.
- On August 16, 2001, General Growth acquired Tucson Mall in Tucson,
Arizona from a private partnership. General Growth, by adding Tucson
Mall to the ownership of Park Place, on the east side of Tucson, now
has over 2.6 million square feet of retail space in that community.
- The dividend on common shares was increased to $.65 per share, a 22.6%
increase, which will be paid on October 31, 2001.
- Through a national relief effort program entitled "We Care, America,"
the customers and employees of General Growth, at 145 malls and the
corporate office, contributed more than $1 million to the American Red
Cross Liberty Disaster Relief Fund.
"Our malls serve as a place for communities to come together and we salute
our customers and employees for their tremendous generosity in our partnership
with the American Red Cross," said Bucksbaum.
DEVELOPMENT/EXPANSION
During the quarter the following projects were completed:
- The second phase of a 1.1 million square-foot redevelopment/renovation
of Park Mall in Tucson, Arizona, adding a new food/entertainment wing,
"streetscape" freestanding shops, and a total remerchandising.
- The first phase of a complete redevelopment/remerchandising of Eden
Prairie Center in Eden Prairie (Minneapolis), Minnesota with the
addition of a 165,000 square-foot Von Maur department store. The
second phase, including a new 18 screen, stadium seating theater and a
number of upscale restaurants, will open in Spring 2002.
- A 91,500 square-foot second level expansion and mall renovation at
Mayfair Mall in Wausatosa (Milwaukee), Wisconsin.
- Complete mall renovation at The Crossroads in Portage, Michigan,
including the addition of a new food court.
- The opening of a new food court at Regency Square Mall in Jacksonville,
Florida.
- A 187,000 square-foot Super Target at Southwest Plaza in Littleton
(Denver), Colorado.
The following development projects are currently under construction:
- Renovation of the Parks at Arlington (Dallas), Texas, adding a Great
Indoors, Galyan's, multiplex theater, ice rink, and an additional
40,000 square feet of retail space.
- Mall renovation at Lansing Mall in Lansing, Michigan, to include the
renovation 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, including the addition of a Panera Bread
with outdoor seating.
- Expansion of the food court and the addition of a Barnes & Noble store
at Apache Mall in Rochester, Minnesota.
- Renovation of Valley Plaza in Bakersfield, California, to include the
expansion of the food court plaza 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 25,000 square foot Barnes & Noble store at Lakeview Square Mall in
Battle Creek, Michigan.
- Redevelopment of a 120,000 square foot anchor store for Lord & Taylor
at Landmark Mall in Alexandria Virginia.
- Addition of a Barnes & Noble, Best Buy, Pier One, and Olive Garden at
West Valley Mall in Tracy, California.
- A freestanding retail expansion of Fox River Mall in Appleton,
Wisconsin.
- Addition of a new food court and related site work at Oglethorpe Mall,
in Savannah, Georgia.
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 Wednesday, October 31, 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. The call will be
archived 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 145 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 Nine Months Ended
PORTFOLIO RESULTS (unaudited) September 30, September 30,
(in thousands, except per share
data) 2001 2000 2001 2000
FUNDS FROM OPERATIONS (FFO)
Funds From Operations -
Operating Partnership $92,918 $79,116 $251,779 $224,929
Less: Allocations to Operating
Partnership unitholders $25,210 $21,730 $68,421 $61,974
Funds From Operations - Company
stockholders (a) $67,708 $57,386 $183,358 $162,955
Funds From Operations per share
- basic $1.29 $1.10 $3.50 $3.13
Funds From Operations per share
- diluted $1.23 $1.06 $3.35 $3.03
Weighted average number of
Company shares outstanding -
basic (assuming full conversion
of Operating Partnership units) 72,169 71,831 72,033 71,772
Weighted average number of
Company shares outstanding -
diluted (assuming full conversion
of Operating Partnership units
and convertible preferred
stock) 80,736 80,386 80,591 80,314
PORTFOLIO RESULTS (b)
Total revenues (c) $281,162 $272,886 $827,323 $792,634
Operating expenses (excluding
discontinuance costs) (104,286) (104,535) (320,428) (315,091)
Net operating income 176,876 168,351 506,895 477,543
General and administrative
expenses (2,423) (2,771) (8,425) (8,521)
Interest expense, net (71,501) (76,432) (216,593) (220,304)
Convertible preferred stock
dividends (6,117) (6,117) (18,351) (18,351)
Perpetual preferred
distributions (3,917) (3,915) (11,747) (5,438)
Funds From Operations -
Operating Partnership 92,918 79,116 251,779 224,929
Depreciation and amortization
of capitalized real estate
costs other than amortization
of financing costs (51,515) (44,308) (146,715) (129,407)
Network discontinuance costs
(not included in FFO) (1,000) - (66,000) -
Allocations to Operating
Partnership unitholders (10,911) (9,562) (9,365) (26,319)
Income available to common
stockholders before
extraordinary items and change
in accounting 29,492 25,246 29,699 69,203
Extraordinary items (d) (253) - (1,264) -
Cumulative effect of accounting
change (e) - - (3,334) -
Net income (loss) available to
common stockholders 29,239 25,246 25,101 69,203
Weighted average number of
Company shares outstanding -
basic 52,596 52,095 52,459 51,997
Weighted average number of
Company shares outstanding -
diluted 52,662 52,150 52,515 52,038
Earnings before extraordinary
items and cumulative effect of
accounting change per share -
basic $0.56 $0.48 $0.57 $1.33
Earnings before extraordinary
items and cumulative effect of
accounting change per share -
diluted $0.56 $0.48 $0.57 $1.33
Earnings (loss) per share -
basic $0.56 $0.48 $0.48 $1.33
Earnings (loss) per share -
diluted $0.56 $0.48 $0.48 $1.33
SUMMARIZED BALANCE SHEET INFORMATION September 30, December 31,
(unaudited) 2001 2000
Cash and cash equivalents $32,663 $27,229
Investment in real estate, net $5,225,643 $4,951,336
Total assets $5,500,714 $5,284,104
Mortgage and other notes payable $3,584,516 $3,244,126
Minority interest $507,607 $530,158
Convertible preferred stock $337,500 $337,500
Stockholders' equity $876,078 $938,418
Total capitalization (at cost) $5,305,701 $5,050,202
PORTFOLIO CAPITALIZATION DATA
(unaudited)
Total portfolio debt (Company debt
above ($3,584,516 and $3,244,126,
respectively) plus pro rata
share of debt ($1,402,473 and
$1,295,910, respectively) from
unconsolidated affiliates) $4,986,989 $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 2,509,300 2,278,959
Total market capitalization at end
of period $8,008,789 $7,331,495
(a) Excludes cumulative Network Services discontinuance costs of $66,000
in 2001 ($65,000 of which was incurred as of June 2001), 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 $3,793, $10,001, $4,184, and $11,699
for the three and nine months ended September 30, 2001 and 2000,
respectively.
(d) Charges due 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 SEPTEMBER 30, 2001
(In thousands, unaudited)
Wholly
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $114,665 $56,044 $170,709
Tenant recoveries 55,391 26,697 82,088
Overage rents 3,763 902 4,665
Other 5,752 1,250 7,002
TRS 16,698 - 16,698
Total revenues 196,269 84,893 281,162
Operating expenses (c) (70,113) (34,173) (104,286)
Net operating income 126,156 50,720 176,876
General and administrative expenses (1,109) (1,314) (2,423)
Interest expense, net (50,678) (20,823) (71,501)
Convertible preferred stock dividends (6,117) - (6,117)
Perpetual preferred distributions (3,917) - (3,917)
Operating Partnership Funds From
Operations (d) $64,335 $28,583 $92,918
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
(In thousands, unaudited)
Wholly
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $107,960 $49,553 $157,513
Tenant recoveries 52,720 25,344 78,064
Overage rents 8,906 755 9,661
Other 1,888 1,652 3,540
Fees 24,108 - 24,108
Total revenues 195,582 77,304 272,886
Operating expenses (74,777) (29,758) (104,535)
Net operating income 120,805 47,546 168,351
General and administrative expenses (1,549) (1,222) (2,771)
Interest expense, net (54,475) (21,957) (76,432)
Convertible preferred stock dividends (6,117) - (6,117)
Perpetual preferred distributions (3,915) - (3,915)
Operating Partnership Funds From
Operations $54,749 $24,367 $79,116
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $3,793 and $4,184 for the three
months ended September 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 $1,000.
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
(In thousands, unaudited)
Wholly
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $335,611 $163,783 $499,394
Tenant recoveries 165,331 80,957 246,288
Overage rents 11,431 2,060 13,491
Other 16,953 2,742 19,695
TRS 48,455 - 48,455
Total revenues 577,781 249,542 827,323
Operating expenses
Operating expenses (c) (219,905) (100,523) (320,428)
Net operating income 357,876 149,019 506,895
General and administrative expenses (4,453) (3,972) (8,425)
Interest expense, net (151,265) (65,328) (216,593)
Convertible preferred stock dividends (18,351) - (18,351)
Perpetual preferred distributions (11,747) - (11,747)
Operating Partnership Funds From
Operations (d) $172,060 $79,719 $251,779
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(In thousands, unaudited)
Wholly
Owned Unconsolidated
Centers Centers (a) Total
Revenues
Minimum rents (b) $315,237 $143,154 $458,391
Tenant recoveries 158,371 73,404 231,775
Overage rents 14,692 1,689 16,381
Other 7,292 2,971 10,263
Fees 75,824 - 75,824
Total revenues 571,416 221,218 792,634
Operating expenses (226,744) (88,347) (315,091)
Net operating income 344,672 132,871 477,543
General and administrative expenses (4,721) (3,800) (8,521)
Interest expense, net (157,033) (63,271) (220,304)
Convertible preferred stock dividends (18,351) - (18,351)
Perpetual preferred distributions (5,438) - (5,438)
Operating Partnership Funds From
Operations $159,129 $65,800 $224,929
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $10,001 and $11,699 for the nine
months ended September 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 $66,000.
OTHER COMPANY PORTFOLIO DATA (a)
AS OF AND/OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001
(unaudited)
Wholly- Total
Owned Unconsolidated or
Centers Centers Average
Space leased at centers not
under redevelopment 89.1% 87.5% 88.3%
Tenant allowances (in thousands) $16,359 $7,203 $23,562
Annualized sales per sq. ft. $354 $366 $360
Average rent per sq. ft.
for new/renewal leases $31.67 $35.56 $33.16
Average rent per sq. ft.
for leases expiring in 2001 $26.30 $28.42 $27.40
% change in total sales 3.5% 3.1% 3.3%
% change in comparable sales -0.1% 0.1% 0.0%
(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, +1-888-776-6555 or +1-212-782-2840
http://www.prnewswire.com/gh/cnoc/comp/110740.html
CONTACT:
John Bucksbaum, +1-312-960-5005, Bernard
Freibaum, +1-312-960-5252, or Beth Coronelli, +1-312-960-2750,
all of General Growth Properties
|
