CHICAGO, Nov. 1 /PRNewswire/ -- General Growth Properties, Inc.
(NYSE: GGP) today announced an increase in Funds From Operations ("FFO") for
the quarter ended September 30, 2000. This represents the thirtieth
consecutive quarter of FFO growth. Since going public in 1993, General
Growth's FFO per share has increased at a compound annual growth rate of
approximately 16.25%.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 )
The Securities and Exchange Commission now requires all publicly held
companies to defer recognizing percentage rent until it has been earned.
General Growth adopted this new method of accounting for percentage rents in
the first quarter of this year. While annual revenue from percentage rents
will be unaffected by this change, the majority of percentage rent revenue
will now be recognized in the third and fourth quarters of each year, rather
than throughout the year.
Third Quarter Highlights
-- Fully diluted FFO per share increased to $1.06 in the third quarter of
2000. Fully diluted FFO per share for the third quarter in 1999,
calculated in accordance with the new method of accounting for
percentage rents, would have been $0.91. Accordingly, fully diluted
FFO per share this quarter increased by approximately 16.5% over the
third quarter of 1999.
-- Total FFO for the third quarter of 2000 increased to $79.1 million.
Total FFO for the third quarter in 1999, calculated in accordance with
the new method of accounting for percentage rents, would have been
$65.2 million. Accordingly, total FFO this quarter increased by 21.3%
over the third quarter of 1999.
-- Total sales increased 7.8% and comparable sales increased 3.9% for the
third quarter.
-- Annualized sales productivity per square foot increased to $355 as of
September 30, 2000, versus $334 as of September 30, 1999.
-- Total prorata revenues for the quarter increased to $272.9 million.
Total prorata revenues for the third quarter in 1999, calculated in
accordance with the new method of accounting for percentage rents,
would have been $222.2 million. Accordingly, total prorata revenues
this quarter increased by 22.8% over the third quarter of 1999.
-- Prorata net operating income ("NOI") increased to $168.4 million. NOI
for the third quarter in 1999, calculated in accordance with the new
method of accounting for percentage rents, would have been
$135.0 million. Accordingly, NOI this quarter increased by 24.7% over
the third quarter of 1999.
-- Mall shop occupancy increased to 89.3% as of September 30, 2000,
versus 88.2% at September 30, 1999.
-- The average rent for new/renewal leases signed during the quarter was
$35.09, versus $31.99 for the same period in 1999; and average rents
for all leases expiring in 2000 is $29.29, versus $26.04 in 1999.
"Strong results from all areas of our operations highlight this quarter's
results. Sales and occupancy, two of our most important indicators, have both
shown strong gains versus last year," stated John Bucksbaum, CEO of General
Growth Properties. "We remain optimistic about the approaching holiday
season," he added.
Development/Expansion Activity
During the quarter the following projects were completed:
-- 1.4 million square-foot Stonebriar Centre in Frisco (Dallas), Texas
-- A 25,000 square-foot Barnes and Noble at Lansing Mall in Lansing,
Michigan
-- A 30,000 square-foot Circuit City on an outparcel at Northridge
Fashion Center in Northridge (Los Angeles), California
The following development projects are currently under construction:
-- Renovation and 91,500 square-foot second level expansion at Mayfair
Mall in Wauwatosa (Milwaukee), Wisconsin
-- 1,325,000 square-foot redevelopment at Park Mall in Tucson, Arizona
-- 113,000 square-foot redevelopment at Knollwood Mall in St. Louis Park
(Minneapolis), Minnesota
-- 30,000 square-foot food court addition at Regency Square Mall in
Jacksonville, Florida
-- A 49,900 square-foot Richman Gordman's 1/2 price store at Market Place
Mall in Champaign, Illinois
-- 29,000 square-foot expansion of Kohl's department store at Market
Place Mall in Champaign, Illinois
-- Eden Prairie Center redevelopment in Eden Prairie (Minneapolis),
Minnesota
-- Renovation of the 1.2 million square-foot Southwest Plaza Mall in
Littleton (Denver), Colorado
-- Valley Hills Mall redevelopment in Hickory, North Carolina
-- Renovation and outparcel development work at Cumberland Mall in
Atlanta, Georgia
-- 83,000 square-foot Best Buy addition on an outparcel at West Valley
Mall in Tracy, California
-- 16,000 square-foot Country Inn Hotel on an outparcel at Buckland Hills
Mall in Manchester (Hartford), Connecticut
-- Renovation of a bank building at Fallbrook Mall in West Hills (Los
Angeles), California
-- A 25,000 square-foot Barnes and Noble at Lakeview Square Mall in
Battle Creek, Michigan
-- A 30,000 square-foot Circuit City at Steeplegate Mall in Concord, New
Hampshire
-- A 25,000 square-foot Old Navy at Steeplegate Mall in Concord, New
Hampshire
General Growth will host a live webcast of its third quarter earnings
conference call via StreetFusion.com and StreetEvents.com. The webcast will
take place on Thursday, November 2, 2000 at 10:00 a.m. Eastern Standard Time
(9:00 a.m. CST, 7:00 a.m. PST), and can be accessed by going to any of the
following links just prior to the start of the call:
http://streetevents.ccbn.com
Type GGP in the "Ticker Symbol" box and hit "Go!" to view the company
page. Scroll down to "Conference Calls" to select and listen to the webcast.
http://www.streetfusion.com
Select "Earnings Events" from the left-hand column. When prompted, type
GGP in the "Ticker Search" box and hit the enter key to be led to the event
information. Click on the company name to register for the webcast.
You may also access the call through General Growth's website. You may
visit http://www.generalgrowth.com/ and click on the webcast advertisement to
log on to the call.
All three sites will archive the call for one week subsequent to the end
of the live webcast. There is no charge for accessing any of these webcasting
services.
General Growth Properties is one of the oldest and most experienced
shopping center owners, developers and managers in the United States. It
currently has ownership interests in, or management responsibilities for, 137
shopping malls in 37 states, encompassing more than 116 million square feet.
For more information, visit the company websites at http://www.generalgrowth.com or
http://www.mallibu.com .
This release and the company's conference call webcast 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 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, shifts in customer demands, tenant
bankruptcies, changes in operating expenses, including employee wages,
benefits and training, governmental and public policy changes and the
continued availability of financing in the amounts and the terms necessary to
support 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
PORTFOLIO RESULTS Three Months Ended Nine Months Ended
(unaudited) Sept. 30, Sept. 30,
(in thousands, except
per share data) 2000 1999 2000 1999
FUNDS FROM OPERATIONS
(FFO)
Funds From Operations
- Operating
Partnership $79,116 $69,749 $224,929 $184,476
Less: Allocations to
Operating Partnership
unitholders $21,730 $19,815 $61,974 $57,290
Funds From Operations
- Company
stockholders $57,386 $49,934 $162,955 $127,186
Funds From Operations
per share - basic $1.10 $1.00 $3.13 $2.89
Funds From Operations
per share - diluted $1.06 $0.97 $3.03 $2.80
Weighted average number
of Company shares outstanding
- basic (assuming
full conversion of
Operating Partnership
units) 71,831 69,954 71,772 63,808
Weighted average number
of Company shares outstanding
- diluted (assuming
full conversion of
Operating Partnership
units and convertible
preferred stock) 80,386 78,519 80,314 72,432
PORTFOLIO RESULTS (a)
Total revenues (b) $272,886 $226,768 $792,634 $626,803
Operating expenses (104,535) (87,237) (315,091) (248,075)
Net operating income 168,351 139,531 477,543 378,728
General and
administrative
expenses (2,771) (1,887) (8,521) (6,378)
Interest expense,
net (76,432) (61,778) (220,304) (169,523)
Convertible preferred
stock dividends (6,117) (6,117) (18,351) (18,351)
Perpetual preferred
distributions (3,915) - (5,438) -
Funds From Operations
- Operating
Partnership 79,116 69,749 224,929 184,476
Depreciation and
amortization of
capitalized real estate
costs other than
amortization of
financing costs (44,308) (41,568) (129,407) (109,644)
Net gain on sales
(not included
in FFO) (c) - 1,473 - 3,341
Allocations to
Operating Partnership
unitholders (9,562) (6,987) (26,319) (19,996)
Income available to
common stockholders
before extraordinary
item 25,246 22,667 69,203 58,177
Extraordinary item (d) - (5,093) - (13,786)
Net income available
to common
stockholders $25,246 $17,574 $69,203 $44,391
Weighted average number
of Company shares
outstanding - basic 52,095 50,149 51,997 43,992
Weighted average number
of Company shares
outstanding - diluted 52,150 50,213 52,038 44,115
Earnings before
extraordinary item
per share - basic $0.48 $0.45 $1.33 $1.32
Earnings before
extraordinary item
per share - diluted $0.48 $0.45 $1.33 $1.32
Earnings per share
- basic $0.48 $0.35 $1.33 $1.01
Earnings per share
- diluted $0.48 $0.35 $1.33 $1.01
SUMMARIZED BALANCE SHEET INFORMATION Sept. 30, Dec. 31,
(unaudited) 2000 1999
Cash and cash equivalents $35,672 $25,593
Investment in real estate, net $4,856,425 $4,647,017
Total assets $5,172,495 $4,954,895
Mortgage notes and other debt payable $3,184,902 $3,119,534
Minority interest $525,503 $356,540
Convertible preferred stock $337,500 $337,500
Stockholders' equity $919,328 $927,758
Total capitalization (at cost) $4,967,233 $4,741,332
PORTFOLIO CAPITALIZATION DATA (unaudited)
Total portfolio debt (Company debt
above ($3,184,902 and $3,119,534,
respectively) plus pro rata share of debt
($1,236,104 and $1,213,256, respectively)
from unconsolidated affiliates) $4,421,006 $4,332,790
Convertible preferred stock 337,500 337,500
Perpetual preferred Operating
Partnership units 175,000 -
Stock market value of common stock and
Operating Partnership units outstanding
at end of period 2,312,569 2,001,877
Total market capitalization at
end of period $7,246,075 $6,672,167
(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 $4,184, $4,168, $11,699 and $10,469
for the three and nine months ended September 30, 2000 and 1999,
respectively.
(c) Includes the Operating Partnership's share of net gains from the sale
of properties.
(d) Charges related to early retirement of debt.
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) GGMI Total
Revenues
Minimum rents (b) $107,960 $49,553 $ - $157,513
Tenant recoveries 52,720 25,344 - 78,064
Percentage rents 8,906 755 - 9,661
Other 1,888 1,652 - 3,540
Fees 1,812 - 22,296 24,108
Total revenues 173,286 77,304 22,296 272,886
Operating
expenses (c) (55,464) (29,758) (19,313) (104,535)
Net operating
income 117,822 47,546 2,983 168,351
General and
administrative
expenses (1,549) (1,222) - (2,771)
Interest expense,
net (52,858) (21,957) (1,617) (76,432)
Convertible preferred
stock dividends (6,117) - - (6,117)
Perpetual preferred
distributions (3,915) - - (3,915)
Operating Partnership
Funds From
Operations $53,383 $24,367 $1,366 $79,116
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) GGMI Total
Revenues
Minimum rents (b) $99,186 $33,474 $ - $132,660
Tenant recoveries 44,101 16,923 - 61,024
Percentage rents 7,423 1,722 - 9,145
Other 3,877 633 - 4,510
Fees 1,440 - 17,989 19,429
Total revenues 156,027 52,752 17,989 226,768
Operating
expenses (c) (50,106) (20,855) (16,276) (87,237)
Net operating
income 105,921 31,897 1,713 139,531
General and
administrative
expenses (1,089) (798) - (1,887)
Interest expense,
net (43,764) (15,036) (2,978) (61,778)
Convertible preferred
stock dividends (6,117) - - (6,117)
Operating Partnership
Funds From
Operations $54,951 $16,063 $(1,265) $69,749
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $4,184 and $4,168 for the three months
ended September 30, 2000 and 1999, respectively.
(c) Excluding depreciation and amortization of capitalized real estate
costs other than amortization of financing costs.
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) GGMI Total
Revenues
Minimum rents (b) $315,237 $143,154 $ - $458,391
Tenant recoveries 158,371 73,404 - 231,775
Percentage rents 14,692 1,689 - 16,381
Other 7,292 2,971 - 10,263
Fees 5,246 - 70,578 75,824
Total revenues 500,838 221,218 70,578 792,634
Operating expenses
(c) (164,160) (88,347) (62,584) (315,091)
Net operating
income 336,678 132,871 7,994 477,543
General and
administrative
expenses (4,721) (3,800) - (8,521)
Interest expense,
net (152,132) (63,271) (4,901) (220,304)
Convertible preferred
stock dividends (18,351) - - (18,351)
Perpetual preferred
distributions (5,438) - - (5,438)
Operating Partnership
Funds From
Operations $156,036 $65,800 $3,093 $224,929
GENERAL GROWTH PROPERTIES, INC
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
(In thousands, unaudited)
Wholly Owned Unconsolidated
Centers Centers (a) GGMI Total
Revenues
Minimum rents (b) $269,657 $94,572 $ - $364,229
Tenant recoveries 126,997 47,015 - 174,012
Percentage rents 16,610 4,779 - 21,389
Other 8,538 1,814 - 10,352
Fees 4,401 - 52,420 56,821
Total revenues 426,203 148,180 52,420 626,803
Operating
expenses (c) (142,125) (57,948) (48,002) (248,075)
Net operating
income 284,078 90,232 4,418 378,728
General and
administrative
expenses (4,186) (2,192) - (6,378)
Interest expense,
net (120,121) (41,024) (8,378) (169,523)
Convertible preferred
stock dividends (18,351) - - (18,351)
Operating Partnership
Funds From
Operations $141,420 $47,016 $(3,960) $184,476
(a) The Unconsolidated Centers include Quail Springs, Town East, the
GGP/Ivanhoe entities and the GGP/Homart entities.
(b) Includes straight-line rent of $11,699 and $10,469 for the nine
months ended September 30, 2000 and 1999, respectively.
(c) 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 NINE MONTHS ENDED SEPTEMBER 30, 2000
(unaudited)
Wholly Owned Unconsolidated Total or
Centers Centers Average
Space leased at centers
not under redevelopment 89.9% 88.7% 89.3%
Tenant allowances
(in thousands) $16,179 $6,242 $22,421
Annualized sales per sq. ft. $353 $357 $355
Average rent per sq. ft.
for new/renewal leases $ 31.60 $ 38.58 $ 35.09
Average rent per sq. ft.
for leases expiring in 2000 $ 25.60 $ 32.98 $ 29.29
% change in total sales 8.1% 7.4% 7.8%
% change in comparable sales 3.8% 4.0% 3.9%
(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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Related links:
http://www.generalgrowth.com
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PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/110740.html or fax,
800-758-5804, ext. 110740
CONTACT:
John Bucksbaum, 312-960-5005, Bernard
Freibaum, 312-960-5252, both of General Growth Properties, Inc.
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