General Growth Properties reports 14.6% increase in FFO per share

General Growth Properties today announced a 14.6% increase in FFO per share for the quarter ended September 30, 2002. Since becoming a public company in 1993, General Growth has produced uninterrupted consecutive quarterly FFO growth. During that period, the company increased FFO per share by approximately 15% on a compounded annual basis.

'General Growth continues to grow and deliver solid results in a tough economy,' said John Bucksbaum, CEO of General Growth Properties. 'Our consistent growth and sustained momentum reflects our strong fundamentals, an outstanding team, and how we create value through acquisition.'

FFO per share on a fully diluted basis, grew 14.6% to a record $1.41 for the quarter, up from $1.23 in the third quarter of 2001.

Total FFO for the quarter increased 30.4% to $121.1 million, from $92.9 million in last year’s third quarter.

Earnings per share in third quarter 2002 were $.71, up from $.56 per share for the comparable period in 2001.

Prorata net operating income (NOI) increased 23.8% in the quarter to $219.0 million, from $178.8 million during third quarter 2001.

Total prorata revenues were $355.1 million for the quarter, an increase of 26.3% compared to $281.2 million for the same period in 2001.

For the full fiscal year 2002, the company currently anticipates that FFO per fully-diluted share will be in the range of $5.51 to $5.56.

Total sales increased 2.3% during the first nine months of 2002 and comparable sales decreased 2.4% versus the same period last year.

Comparable center (same store) net operating income (NOI) increased by approximately 3.9% during the third quarter.

Annualized sales per square foot were $351 as of September 30, 2002 versus $360 at the end of third quarter 2001.

Mall shop occupancy as of the end of third quarter 2002 was 88.7%, compared to 88.3% in third quarter 2001.

Average rent per square foot for new/renewal leases signed during the first nine months of the year was $34.75 versus $33.16 for the same period in 2001. Average rent for all leases expiring in 2002 is $29.90, versus $27.40 in 2001.

A ground breaking ceremony was held on September 23, 2002 and construction has begun for the 200-acre Jordan Creek Town Center in West Des Moines, Iowa. This two million square foot retail, dining, entertainment and recreation development is anticipated to open in August 2004.

On August 26, 2002, the company announced the formation of a new 50/50 joint venture with TeachersÂ' Retirement System of the State of Illinois. The venture acquired Galleria at Tyler in Riverside, California; Kenwood Towne Centre in Cincinnati, Ohio; and Silver City Galleria in Taunton, Massachusetts from an institutional investor. Clackamas Town Center in Portland, Oregon, which was 100% owned by Illinois TeachersÂ', was also conveyed to the new joint venture.

On September 12, 2002, General Growth acquired 100% of Pecanland Mall in Monroe, Louisiana, from Pecanland Mall Holdings LLC.

After the quarter ended, General Growth signed an agreement to acquire 100% of Glendale Galleria in Los Angeles for $415 million. The company is still conducting due diligence, but does expect to purchase the mall in a 50/50 joint venture with an institutional investor, with closing to take place in late November.

The quarterly dividend on common shares was increased 11% to $.72 per share and will be paid on October 31, 2002.

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(source: General Growth Property)

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