General Growth Properties reports 8.3% increase in Funds From Operations per share for second quarte

General Growth Properties, Inc. today announced an 8.3% increase in Funds From Operations (FFO) per share for the quarter ended June 30, 2002. Since becoming a public company nine years ago, General Growth has provided uninterrupted consecutive quarterly FFO growth. During that period, General Growth increased FFO per share by approximately 15% on a compounded annual basis.

“The solid results posted in the second quarter reinforce the stability of General Growth Properties and our ability to perform in a challenging economic environment,” said John Bucksbaum, CEO of General Growth Properties. “I am pleased with the opportunities available to the company for future growth and look forward to the contributions from the JP Realty and Victoria Ward acquisitions to our portfolio during the second half of 2002.”


FFO on a per share, fully diluted basis, grew 8.3% to $1.18 in second quarter 2002, up from $1.09 in the second quarter of 2001.

Total FFO for the quarter increased 23.0% to $100.6 million, from $81.8 million in the second quarter of 2001.

For the full fiscal year 2002, the company currently anticipates that FFO per fully-diluted share will be in the range of $5.46 to $5.56.

Earnings per share in second quarter 2002 were $.56 versus a net loss of $.47 per share for the comparable period in 2001.

Prorata net operating income (NOI) increased 8.5% in the quarter to $183.4 million, from $169.0 million during the second quarter of 2001.

Total prorata revenues were $298.0 million for the quarter, an increase of 8.7% compared to $274.1 million for the same period in 2001.

Total sales increased 1.0% during the first half of 2002 and comparable sales decreased 2.0% versus the same period last year.

Comparable center (same store) net operating income (NOI) increased by approximately 3.6% during the second quarter.

Annualized sales per square foot were $358 as of June 30, 2002 versus $363 at the end of second quarter 2001.

Mall shop occupancy as of the end of second quarter 2002 was 89.2%, compared to 88.2% in second quarter 2001.

Average rent per square foot for new/renewal leases signed during the first six months of the year was $35.08 versus $32.01 for the same period in 2001. Average rent for all leases expiring in 2002 is $29.90, versus $27.40 in 2001.

On May 28, 2002, General Growth acquired Victoria Ward, Limited, a privately held real estate corporation with 65 fee simple acres, currently improved with over one million square feet of leasable area, in Kakaako, central Honolulu, Hawaii.

On July 10, 2002 General Growth closed the acquisition of JP Realty, Inc., (NYSE: JPR), the dominant mid-market retail property development and management company in the Intermountain region of the United States. The JP Realty portfolio includes 18 regional malls, 26 community centers, and 1.3 million square feet of industrial properties.

During the second quarter of 2002, the company elected to adopt the fair value based employee stock-based compensation expense recognition provisions of Statement of Financial Accounting Standards No. 123 (SFAS 123), Accounting for Stock-Based Compensation. Pursuant to the adoption requirements, the company has included the first quarter effect of approximately $16,000 in the six-month results.

(source: General Growth Properties)

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