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| General Growth Properties Reports First Quarter 2001 Results |
| GENERAL GROWTH PROPERTIES LOGO
General Growth Properties logo. (PR NewsFoto)[AS] CHICAGO, IL USA | |||
CHICAGO, May 1 /PRNewswire/ -- General Growth Properties, Inc. (NYSE: GGP) today announced an increase in Funds From Operations (FFO) for the quarter ended March 31, 2001. This increase marks eight full years of consecutive quarterly FFO growth. Since becoming a public company in April of 1993, compounded annual growth in FFO per share has been 16%. (Photo: http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 ) "Given the current economic climate, I am pleased to report a 6.2% increase in FFO per share for the first quarter," said John Bucksbaum, CEO of General Growth Properties. "We have consistently managed and maintained profitability throughout periods of economic weakness. I am confident that we will continue to grow as expected and I am excited about our future going forward." FIRST QUARTER 2001 HIGHLIGHTS -- FFO on a per share, fully diluted basis, for the quarter was $1.03, compared to $.97 reported in first quarter 2000. -- Total FFO for the quarter rose 7.0% to $77.0 million from $72.0 million in the first quarter of 2000. -- Prorata net operating income (NOI) increased by 8.8% in the quarter to $164.3 million, from $151.1 million during the first quarter of 2000. -- Comparable center ("same store") NOI increased by 4.7% over last year's first quarter. -- Total sales increased 7.5% and comparable sales increased 2.6% above first quarter 2000. -- Total prorata revenues were $272.0 million for the quarter, an increase of 5.9% compared to $256.9 million for the same period in 2000. -- Annualized sales per square foot increased to $360 as of March 31, 2001 versus $347 for the same period last year. -- Mall shop space leased at the end of first quarter 2001 was 89%, the same as it was at the end of the first quarter of 2000. -- Average rent for new/renewal leases signed during the first quarter was $34.01 versus $36.22 for the same period in 2000. Average rent for all leases expiring in 2001 is $27.40, versus $29.29 in 2000. -- On March 23, 2001, GGP announced the acquisition of Willowbrook Mall in Houston, Texas by a 50/50 joint venture. -- Effective January 1, 2001, General Growth acquired 100% of the common stock of General Growth Management, Inc. (GGMI). GGMI will now be treated as a taxable REIT subsidiary (TRS) in accordance with new tax law provisions contained in the Tax Relief Extension Act of 1999. GGMI's operations are now consolidated with GGP's other wholly-owned activities. Prior to January 1, 2001, and by virtue of owning preferred stock issued by GGMI, GGP utilized the equity method of accounting to report its share of GGMI's profit. The first quarter 2000 portfolio results have been restated in this release to be presented on a similar basis. DEVELOPMENT/EXPANSION During the quarter the following projects were completed: -- Redevelopment of a 120,000 square-foot anchor store for Lord and Taylor and a 22,000 square-foot Old Navy store at Landmark Mall in Alexandria, Virginia -- A new 160,000 square-foot Dillard's anchor store and a 30,000 square- foot mall shop expansion, including a children's play area and family restrooms, at Valley Hills Mall in Hickory, North Carolina -- An outparcel bank building renovation at Fallbrook Mall in West Hills (Los Angeles), California -- A 30,000 square-foot Circuit City store at Steeplegate Mall in Concord, New Hampshire The following development projects are currently under construction: -- Mall renovation at Lansing Mall in Lansing, Michigan to include the relocation of the food court and the addition of a "streetscape" retail presence and a new anchor store -- Renovation and 91,500 square-foot second level expansion at Mayfair Mall in Wauwatosa (Milwaukee), Wisconsin -- A 1.3 million square-foot redevelopment of Park Mall in Tucson, Arizona, adding a new wing and "streetscape" freestanding shops -- Complete redevelopment of Eden Prairie Center in Eden Prairie (Minneapolis), Minnesota with the addition of a 165,000 square-foot Von Maur anchor department 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 -- 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 -- A 25,000 square-foot Old Navy store at Steeplegate Mall in Concord, New Hampshire WEBCAST/CONFERENCE CALL General Growth will host a live webcast of its earnings conference call on the company web site, http://www.generalgrowth.com , and StreetFusion.com . The webcast will take place on Wednesday, May 2, 2001 at 10:00 a.m. Eastern Daylight Time (9:00 a.m. CDT, 7:00 a.m. PDT). 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 147 shopping malls in 39 states, comprising over 116 million square feet of retail space. This release 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 made by the company and its management 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, 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 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 Three Months Ended PORTFOLIO RESULTS (unaudited) March 31, (in thousands, except per share data) 2001 2000 FUNDS FROM OPERATIONS (FFO) Funds From Operations - Operating Partnership $77,027 $71,966 Less: Allocations to Operating Partnership unitholders $20,961 $19,870 Funds From Operations - Company stockholders $56,066 $52,096 Funds From Operations per share - basic $1.07 $1.00 Funds From Operations per share - diluted $1.03 $0.97 Weighted average number of Company shares outstanding - basic (assuming full conversion of Operating Partnership units) 71,944 71,722 Weighted average number of Company shares outstanding - diluted (assuming full conversion of Operating Partnership units and convertible preferred stock) 80,524 80,204 PORTFOLIO RESULTS (a) Total revenues (b) $272,040 $256,932 Operating expenses (107,708) (105,831) Net operating income 164,332 151,101 General and administrative expenses (2,822) (2,754) Interest expense, net (74,451) (70,264) Convertible preferred stock dividends (6,117) (6,117) Perpetual preferred distributions (3,915) - Funds From Operations - Operating Partnership 77,027 71,966 Depreciation and amortization of capitalized real estate costs other than amortization of financing costs (45,364) (41,403) Allocations to Operating Partnership unitholders (7,709) (8,439) Income available to common stockholders before change in accounting 23,954 22,124 Cumulative effect of accounting change (c) (3,334) - Net income available to common stockholders $20,620 $22,124 Weighted average number of Company shares outstanding - basic 52,365 51,918 Weighted average number of Company shares outstanding - diluted 52,444 51,936 Earnings before cumulative effect of accounting change per share - basic $0.45 $0.43 Earnings before cumulative effect of accounting change per share - diluted $0.45 $0.43 Earnings per share - basic $0.39 $0.43 Earnings per share - diluted $0.39 $0.43 March 31, Dec. 31, SUMMARIZED BALANCE SHEET INFORMATION (unaudited) 2001 2000 Cash and cash equivalents $22,095 $27,229 Investment in real estate, net $5,076,648 $4,951,336 Total assets $5,359,577 $5,284,104 Mortgage notes and other debt payable $3,360,742 $3,190,963 Minority interest $527,539 $530,158 Convertible preferred stock $337,500 $337,500 Stockholders' equity $932,803 $938,758 Total capitalization (at cost) $5,158,584 $4,997,379 PORTFOLIO CAPITALIZATION DATA (unaudited) Total portfolio debt (Company debt above ($3,360,742 and $3,190,963, respectively) plus pro rata share of debt ($1,363,483 and $1,295,910, respectively) from unconsolidated affiliates) $4,724,225 $4,486,873 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 2,515,128 2,600,975 Total market capitalization at end of period $7,751,853 $7,600,348 (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 $2,952 and $3,689 for the three months ended March 31, 2001 and 2000, respectively. (c) 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 MARCH 31, 2001 (In thousands, unaudited) Wholly Owned Unconsolidated (a) Total Revenues Minimum rents (b) $112,060 $52,288 $164,348 Tenant recoveries 55,150 26,454 81,604 Overage rents 4,137 590 4,727 Other 4,835 739 5,574 TRS 15,787 - 15,787 Total revenues 191,969 80,071 272,040 Operating expenses (c) (74,964) (32,744) (107,708) Net operating income 117,005 47,327 164,332 General and administrative expenses (1,517) (1,305) (2,822) Interest expense, net (52,041) (22,410) (74,451) Convertible preferred stock dividends (6,117) - (6,117) Perpetual preferred distributions (3,915) - (3,915) Operating Partnership Funds From Operations $53,415 $23,612 $77,027 GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 (In thousands, unaudited) Wholly Owned Unconsolidated (a) Total Revenues Minimum rents (b) $102,002 $46,375 $148,377 Tenant recoveries 52,395 23,631 76,026 Overage rents 2,670 385 3,055 Other 5,416 632 6,048 Fees 23,426 - 23,426 Total revenues 185,909 71,023 256,932 Operating expenses (c) (76,408) (29,423) (105,831) Net operating income 109,501 41,600 151,101 General and administrative expenses (1,429) (1,325) (2,754) Interest expense, net (49,652) (20,612) (70,264) Convertible preferred stock dividends (6,117) - (6,117) Operating Partnership Funds From Operations $52,303 $19,663 $71,966 (a) The Unconsolidated Centers include Quail Springs, Town East, the GGP/Ivanhoe entities and the GGP/Homart entities. (b) Includes straight-line rent of $2,952 and $3,689 for the three months ended March 31, 2001 and 2000, respectively. (c) Includes expenses of the TRS (Taxable REIT Susidiary or former Preferred Stock Subsidiary) and 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 THREE MONTHS ENDED MARCH 31, 2001 (unaudited) Wholly Owned Unconsolidated Total or Centers Centers Average Space leased at centers not under redevelopment 89.6% 88.4% 89.0% Tenant allowances (in thousands) $5,474 $2,456 $7,930 Annualized sales per sq. ft. $355 $365 $360 Average rent per sq. ft. for new/renewal leases $29.46 $38.56 $34.01 Average rent per sq. ft. for leases expiring in 2001 $26.30 $28.42 $27.40 % change in total sales 7.0% 8.0% 7.5% % change in comparable sales 2.4% 2.8% 2.6% (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 201-369-3467
CONTACT:
John Bucksbaum, 312-960-5005, or Bernard
Freibaum, 312-960-5252, both of General Growth Properties, Inc.
