Funds From Operations (FFO) totaled a record $96.8 million ($1.03 per share) for the third quarter compared to $69.9 million ($.92 per share) for the same period of 2001. For the nine months, FFO were $241.4 million ($2.62 per share) compared to $210.4 million ($2.77 per share) a year ago.
The nine-month 2002 per share results were impacted by the dilutive effect of the January 2002 sale of common stock, the proceeds of which were used to purchase interests in eight premier regional retail centers from Rodamco N.A. in May.
Net Earnings, after deducting depreciation and amortization, net gains (losses) on operating properties, other provisions and losses net, deferred income taxes and cumulative effect of a change in accounting principle, were $32.3 million or $.33 per share for the third quarter of 2002, compared to $29.2 million or $.37 per share a year ago. For the nine months, Net Earnings were $145.2 million, or $1.57 per share, compared to $86.4 million, or $1.10 per share, for 2001Â's nine-month period.
The CompanyÂ's portfolio of retail centers reported strong gains in Net Operating Income -- $123.1 million for 2002Â's third quarter compared to $94.4 million in 2001Â's same quarter, and $323.3 million for this yearÂ's three quarters versus $274.5 million for 2001Â's first nine months. While much of the increase was due to the contributions from the newly acquired Rodamco assets, high average occupancy levels were maintained (93% for each nine month period) and new rents on re-leased space generated comparable property growth in Net Operating Income.
In contrast, Net Operating Income from office and other properties was down -- $30.0 million for the third quarter, compared to $32.5 million for the same period a year ago, and $91.6 million versus $96.0 million for the comparable period of 2001. Lower occupancy levels (89% at 9/30/02 compared to 93% at 9/30/01) related to corporate cutbacks and weak demand were the primary cause for the decline.
The CompanyÂ's third line of business, community development, reported outstanding results for the third quarter, with Net Operating Income reaching $26.5 million, up from the $16.5 million in 2001Â's third quarter. For the nine months, Net Operating Income was $61.8 million compared to $62.1 million for the same period last year. Demand for land, particularly residential lots, was very strong in both of the CompanyÂ's primary markets, Columbia, Md. and Summerlin, Nev.
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(source: The Rouse Company)