Chicago-based General Growth Properties reported a 6.5 percent increase in second-quarter, same-store NOI on top of an industry-leading 6.4 percent increase for the first quarter. The REIT's occupancy also rose 130 basis points year-over-year to 90.5 percent According to Goldman Sachs analyst David Kostin, 10 of those basis points came from acquisitions. General Growth spent $869 million for Coronado Center, St. Louis Galleria and a 50-percent stake in GGPIvanhoe. It also recently won the bidding war for Virginia Beach, Va.'s Lynnhaven Mall, for an estimated $260 million.
During the past 10 quarters, General Growth has been able to post stable 3.5 percent-5 percent increases in same-store NOI. Rents on new or renewed leases were 36 percent higher in the second quarter of 2003 than the rate on expiring leases, the company says.