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GGP hits record FFO,buys LA mega-mall

General Growth Properties Inc. (GGP) recorded a 14.6% increase in Funds from Operations (FFO) per share for the quarter ended September 30, 2002, hitting a record $1.41 for the period and up from $1.23 in third-quarter 2001.

The news continues GGP's uninterrupted consecutive quarterly FFO growth since becoming a public company in 1993.

GGP also signed an agreement to acquire 100% of Glendale Galleria in Los Angeles for $415 million. The company is still conducting due diligence, but expects to purchase the mall in a 50/50 joint venture with an unnamed institutional investor, with closing to take place in late November.

Overall, GGP's quarterly numbers were healthy, and then some:

-- 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.

But there were a few caveats:

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

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

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