The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)
Retail centers For the three months ended September 30, 2001 2000 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 76,450 $ 13,363 $ 89,813 $ 73,964 $ 15,643 $ 89,607 Percentage rents 1,777 266 2,043 2,012 506 2,518 Specialty retail rents 4,479 751 5,230 4,659 854 5,513 Other rents (note 1) 43,602 7,010 50,612 42,283 8,355 50,638 Other revenues (note 2) 10,272 861 11,133 7,774 1,614 9,388 136,580 22,251 158,831 130,692 26,972 157,664 Share of FFO of minority interest ventures (note 3) 2,024 - 2,024 1,448 - 1,448 Total revenues 138,604 22,251 160,855 132,140 26,972 159,112 Operating expenses 60,736 7,976 68,712 59,006 9,824 68,830 Ground rents 1,689 354 2,043 2,477 311 2,788 62,425 8,330 70,755 61,483 10,135 71,618
Net Operating Income $ 76,179 $ 13,921 $ 90,100 $ 70,657 $ 16,837 $ 87,494
Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. (3) Minority interest ventures include: Randhurst, Ridgedale Center, Southland Center, and Staten Island Mall. The Rouse Company and Unconsolidated Proportionate Share Ventures Statement of Net Operating Income (in thousands)
Retail centers For the nine months ended September 30, 2001 2000 Unconsolidated Unconsolidated Proportionate Share Proportionate Share The Rouse Company Ventures Total The Rouse Company Ventures Total Minimum rents $ 226,163 $ 39,207 $ 265,370 $ 213,532 $ 49,025 $ 262,557 Percentage rents 6,893 762 7,655 6,998 1,519 8,517 Specialty retail rents 11,752 1,945 13,697 11,915 2,530 14,445 Other rents (note 1) 127,436 19,799 147,235 121,682 25,510 147,192 Other revenues (note 2) 26,262 1,962 28,224 20,916 2,868 23,784 398,506 63,675 462,181 375,043 81,452 456,495 Share of FFO of minority interest ventures (note 3) 6,357 - 6,357 5,815 - 5,815 Total revenues 404,863 63,675 468,538 380,858 81,452 462,310 Operating expenses 177,633 22,913 200,546 173,093 29,351 202,444 Ground rents 5,419 967 6,386 6,731 897 7,628 183,052 23,880 206,932 179,824 30,248 210,072
Net Operating Income $ 221,811 $ 39,795 $ 261,606 $ 201,034 $ 51,204 $ 252,238
Notes: (1) Other rents are comprised primarily of charges to tenants for operating expenses. (2) Other revenues are comprised primarily of parking revenues, management fees, lease termination payments and late charges. (3) Minority interest ventures include: Randhurst, Ridgedale Center, Southland Center, and Staten Island Mall. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)
Retail centers For the three months ended September 30, 2001 2000 Noncomparable Comparable Noncomparable Comparable properties properties Total properties properties Total Minimum rents $ 64,340 $ 25,473 $ 89,813 $ 63,553 $ 26,054 $ 89,607 Percentage rents 1,472 571 2,043 1,940 578 2,518 Specialty retail rents 4,050 1,180 5,230 4,289 1,224 5,513 Other rents 37,768 12,844 50,612 37,176 13,462 50,638 Other revenues 8,905 2,228 11,133 5,846 3,542 9,388 116,535 42,296 158,831 112,804 44,860 157,664 Share of FFO of minority interest ventures 1,637 387 2,024 950 498 1,448 Total revenues 118,172 42,683 160,855 113,754 45,358 159,112 Operating expenses 51,968 16,744 68,712 50,104 18,726 68,830 Ground rents 1,889 154 2,043 2,057 731 2,788 53,857 16,898 70,755 52,161 19,457 71,618
Net Operating Income $ 64,315 $ 25,785 $ 90,100 $ 61,593 $ 25,901 $ 87,494
Note - Noncomparable properties consist of projects which, in 2001 or 2000, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: Exton Square, Fashion Place, Fashion Show, The Grand Avenue, The Mall in Columbia, Midtown Square, Moorestown Mall, North Star, Oviedo Marketplace, Paramus Park, Perimeter Mall, Pioneer Place, Randhurst and Westdale Mall. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)
Retail centers For the nine months ended September 30, 2001 2000 Noncomparable Comparable Noncomparable Comparable properties properties Total properties properties Total Minimum rents $ 190,061 $ 75,309 $ 265,370 $ 186,345 $ 76,212 $ 262,557 Percentage rents 5,698 1,957 7,655 5,700 2,817 8,517 Specialty retail rents 10,590 3,107 13,697 10,966 3,479 14,445 Other rents 109,774 37,461 147,235 107,020 40,172 147,192 Other revenues 22,324 5,900 28,224 16,610 7,174 23,784 338,447 123,734 462,181 326,641 129,854 456,495 Share of FFO of minority interest ventures 5,459 898 6,357 4,646 1,169 5,815 Total revenues 343,906 124,632 468,538 331,287 131,023 462,310 Operating expenses 152,422 48,124 200,546 147,809 54,635 202,444 Ground rents 5,949 437 6,386 5,903 1,725 7,628 158,371 48,561 206,932 153,712 56,360 210,072
Net Operating Income $ 185,535 $ 76,071 $ 261,606 $ 177,575 $ 74,663 $ 252,238
Note - Noncomparable properties consist of projects which, in 2001 or 2000, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: Exton Square, Fashion Place, Fashion Show, The Grand Avenue, The Mall in Columbia, Midtown Square, Moorestown Mall, North Star, Oviedo Marketplace, Paramus Park, Perimeter Mall, Pioneer Place, Randhurst and Westdale Mall. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)
Office and other properties For the three months ended September 30, 2001 2000 Noncomparable Noncomparable Comparable properties properties Total Comparable properties properties Total Minimum rents $ 37,598 $ 2,371 $ 39,969 $ 35,833 $ 7,026 $ 42,859 Percentage rents 41 - 41 72 - 72 Other rents 5,235 227 5,462 5,713 1,073 6,786 Other revenues 5,748 54 5,802 5,941 23 5,964 48,622 2,652 51,274 47,559 8,122 55,681 Share of FFO of minority interest ventures - (40) (40) - - - Total revenues 48,622 2,612 51,234 47,559 8,122 55,681 Operating Expenses 17,764 955 18,719 18,377 2,056 20,433 Ground rents 362 64 426 177 60 237 18,126 1,019 19,145 18,554 2,116 20,670
Net Operating Income $ 30,496 $ 1,593 $ 32,089 $ 29,005 $ 6,006 $ 35,011
Note - Noncomparable properties consist of projects which, in 2001 or 2000, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: new buildings at Hughes Center and Summerlin Commercial, Hughes Airport Center, Hughes Cheyenne Center, and certain office buildings in the Baltimore/Washington corridor. The Rouse Company Statement of Net Operating Income - Comparable and Noncomparable Properties (note) (in thousands)
Office and other properties For the nine months ended September 30, 2001 2000 Noncomparable Noncomparable Comparable properties properties Total Comparable properties properties Total Minimum rents $ 111,692 $ 6,753 $ 118,445 $ 105,946 $ 19,097 $ 125,043 Percentage rents 290 - 290 182 - 182 Other rents 15,256 484 15,740 15,115 2,667 17,782 Other revenues 17,894 100 17,994 19,043 63 19,106 145,132 7,337 152,469 140,286 21,827 162,113 Share of FFO of minority interest ventures - 118 118 - - - Total revenues 145,132 7,455 152,587 140,286 21,827 162,113 Operating Expenses 53,260 2,583 55,843 52,973 5,466 58,439 Ground rents 1,899 83 1,982 543 174 717 55,159 2,666 57,825 53,516 5,640 59,156
Net Operating Income $ 89,973 $ 4,789 $ 94,762 $ 86,770 $ 16,187 $ 102,957
Note - Noncomparable properties consist of projects which, in 2001 or 2000, were acquired, disposed of, expanded, opened or prepared for disposition. Such properties include the following: new buildings at Hughes Center and Summerlin Commercial, Hughes Airport Center, Hughes Cheyenne Center, and certain office buildings in the Baltimore/Washington corridor. The Rouse Company Schedule of Expiring Footage, excluding department stores and storage (note 1) As of September 30, 2001
Retail centers Remaining 2001 2002 2003 2004 2005 Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF
Owned and proportionate share properties 647,984 $ 26.28 1,484,689 $ 21.92 1,284,405 $ 29.32 993,739 $ 32.45 1,167,652 $ 30.59 Managed and other properties 101,170 $ 17.42 238,204 $ 20.51 183,760 $ 25.58 196,173 $ 28.58 215,592 $ 23.40
Total 749,154 $ 25.09 1,722,893 $ 21.72 1,468,165 $ 28.85 1,189,912 $ 31.81 1,383,244 $ 29.47
Office and other properties Remaining 2001 2002 2003 2004 2005 Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF Footage Rent PSF
Owned properties 701,012 $ 15.66 1,766,388 $ 18.40 1,405,212 $ 15.97 1,207,241 $ 17.39 867,090 $ 21.77
Note: (1) Footage amounts represent gross leasable area expiring during the year and rent PSF represents billable minimum rent per square foot at expiration. Releasing assumptions are not included. The Rouse Company and unconsolidated proportionate share ventures Capital Expenditures For the three months ended September 30, 2001 (in thousands)
Unconsolidated The Rouse Proportionate Retail centers Company Share Ventures Total
New Developments $ 1,241 $ 16,578 $ 17,819
Renovations and Expansions 30,228 1,015 31,243
Tenant Allowances, Improvements and Leasing Commissions 3,997 378 4,375
Building and Other 66 5,079 5,145
Total $ 35,532 $ 23,050 $ 58,582
Unconsolidated The Rouse Proportionate Office and other properties Company Share Ventures Total
New Developments $ 4,893 $ - $ 4,893
Renovations and Expansions - - -
Tenant Allowances, Improvements and Leasing Commissions 1,988 - 1,988
Building and Other 2,207 - 2,207
Total $ 9,088 $ - $ 9,088 The Rouse Company and unconsolidated proportionate share ventures Capital Expenditures For the nine months ended September 30, 2001 (in thousands)
Unconsolidated The Rouse Proportionate Retail centers Company Share Ventures Total
New Developments $ 12,524 $ 34,652 $ 47,176
Renovations and Expansions 106,306 2,690 108,996
Tenant Allowances, Improvements and Leasing Commissions 11,286 1,003 12,289
Building and Other 4,162 5,546 9,708
Total $ 134,278 $ 43,891 $ 178,169
Unconsolidated The Rouse Proportionate Office and other properties Company Share Ventures Total
New Developments $ 11,048 $ - $ 11,048
Renovations and Expansions - - -
Tenant Allowances, Improvements and Leasing Commissions 5,897 - 5,897
Building and Other 2,606 - 2,606
Total $ 19,551 $ - $ 19,551 The Rouse Company and unconsolidated proportionate share ventures Combined Balance Sheets (in thousands)
September 30, 2001 December 31, 2000
Unconsolidated Unconsolidated The Rouse Proportionate The Rouse Proportionate Company Share Ventures Total Company Share Ventures Total
Assets: Operating properties, net $ 3,558,894 $ 444,647 $ 4,003,541 $ 3,578,601 $ 438,321 $ 4,016,922 Properties in development 228,514 83,632 312,146 139,451 51,741 191,192 Land held for development and sale 279,646 - 279,646 250,563 - 250,563 Properties held for sale - - - 4,548 - 4,548 Investments in and advances to other unconsolidated real estate ventures 260,112 (218,060) 42,052 245,965 (198,974) 46,991 Prepaid expenses, receivables under finance leases and other assets 416,439 22,218 438,657 339,053 19,221 358,274 Accounts and notes receivable 98,016 10,384 108,400 109,505 10,298 119,803 Cash, cash equivalents and marketable securities 28,781 5,221 34,002 38,361 5,134 43,495
Total $ 4,870,402 $ 348,042 $ 5,218,444 $ 4,706,047 $ 325,741 $ 5,031,788
Liabilities and shareholders equity: Mortgages payable and other long term debt 3,496,034 428,260 3,924,294 3,451,840 314,926 3,766,766 Other liabilities 581,850 (80,218) 501,632 485,464 10,815 496,279 Minority interest in majority financial interest ventures - - - 1,310 - 1,310 Company-obligated preferred securities 136,965 - 136,965 136,965 - 136,965 Shareholders' equity 655,553 - 655,553 630,468 - 630,468
Total $ 4,870,402 $ 348,042 $ 5,218,444 $ 4,706,047 $ 325,741 $ 5,031,788 The Rouse Company and unconsolidated proportionate share ventures Comparative Balance Sheets (in thousands)
September 30 June 30 March 31 December 31 September 30 2001 2001 2001 2000 2000
Assets: Operating properties, net $ 4,003,541 $ 4,017,913 $ 4,020,312 $ 4,016,922 $ 3,807,033 Properties in development 312,146 268,043 234,212 191,192 195,982 Land held for development and sale 279,646 250,582 235,504 250,563 256,835 Properties held for sale - - 4,032 4,548 371,053 Investments in and advances to other unconsolidated real estate ventures 42,052 35,515 39,462 46,991 43,301 Prepaid expenses, receivables under finance leases and other assets 438,657 423,414 354,683 358,274 326,358 Accounts and notes receivable 108,400 103,381 117,520 119,803 129,241 Cash, cash equivalents and marketable securities 34,002 44,455 39,827 43,495 53,123
Total $ 5,218,444 $ 5,143,303 $ 5,045,552 $ 5,031,788 $ 5,182,926
Liabilities and shareholders equity: Mortgages payable and other long term debt $ 3,924,294 $ 3,840,700 $ 3,769,518 $ 3,766,766 $ 3,922,334 Other liabilities 501,632 514,359 488,030 496,279 462,539 Minority interest in majority financial interest ventures - - - 1,310 634 Company-obligated preferred securities 136,965 136,965 136,965 136,965 136,965 Shareholders' equity 655,553 651,279 651,039 630,468 660,454
Total $ 5,218,444 $ 5,143,303 $ 5,045,552 $ 5,031,788 $ 5,182,926 The Rouse Company and Unconsolidated Proportionate Share Ventures Debt Summary (in thousands) September 30,2001 Unconsolidated The Rouse Company Proportionate Share Ventures Total Weighted- Weighted- Weighted- Weighted- Weighted- Weighted- average average average average average average Interest Maturity Interest Maturity Interest Maturity Amount Rate (years) Amount Rate (years) Amount Rate (years)
Parent Company debt and property debt carrying a parent company guarantee of repayment
Variable rate $ 90,669 4.2% 2.3 $ 2,845 5.5% 2.0 $ 93,514 4.3% 2.3 Variable rate debt swapped to fixed 178,000 5.4% 2.3 - - - 178,000 5.4% 2.3 Fixed rate 497,126 7.9% 5.0 - - - 497,126 7.9% 5.0
765,795 6.9% 4.1 2,845 5.5% 2.0 768,640 6.9% 4.1
Property debt not carrying a Parent Company guarantee of repayment
Variable rate 266,497 5.1% 1.9 6,622 4.6% 0.9 273,119 5.1% 1.8 Variable rate debt swapped to fixed 122,000 5.9% 1.9 10,939 5.3% 2.0 132,939 5.9% 1.9 Fixed rate 2,341,742 7.7% 6.4 407,854 6.8% 8.0 2,749,596 7.6% 6.6
2,730,239 7.4% 5.7 425,415 6.8% 7.7 3,155,654 7.3% 6.0
Total debt $ 3,496,034 7.3% 5.4 $ 428,260 6.8% 7.7 $ 3,924,294 7.2% 5.6 The Rouse Company and Unconsolidated Proportionate Share Ventures Schedule of balloon payments due (in thousands) September 30, 2001
2001 2002 2003 2004 2005
The Rouse Company $ 150,161 $ 151,258 $ 452,320 $ 297,524 $ 350,458
Unconsolidated Proportionate Share Ventures - - 66,727 - -
Total $ 150,161 $ 151,258 $ 519,047 $ 297,524 $ 350,458 The Rouse Company Coverage Ratios September 30, 2001
Interest 9/30/01 9/30/00 1) Funds from operations 203,693 188,181 2) Interest expense 200,522 212,647 3) Quips expense 9,630 9,630
Calculation: (1+2+3)/2 2.1 1.9
Fixed Charges 1) Funds from operations 203,693 188,181 2) Interest expense 200,522 212,647 3) Quips expense 9,630 9,630 4) Preferred stock dividends 9,111 9,111
Calculation: (1+2+3)/(2+3+4) 1.9 1.8 The Rouse Company Net Operating Income from Community Development (in thousands)
For the three months ended September 30, 2001 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development
Revenues $ 17,640 $ 22,540 $ 40,180 Operating costs and expenses 6,770 16,952 23,722
Net Operating Income $ 10,870 $ 5,588 $ 16,458
For the three months ended September 30, 2000 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development
Revenues $ 23,387 $ 20,940 $ 44,327 Operating costs and expenses 11,346 18,494 29,840
Net Operating Income $ 12,041 $ 2,446 $ 14,487
For the nine months ended September 30, 2001 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development
Revenues $ 54,895 $ 118,803 $ 173,698 Operating costs and expenses 25,130 86,506 111,636
Net Operating Income $ 29,765 $ 32,297 $ 62,062
For the nine months ended September 30, 2000 Columbia Summerlin Total and Other and Other Community Land Hughes Land Development
Revenues $ 75,473 $ 83,002 $ 158,475 Operating costs and expenses 35,045 68,128 103,173
Net Operating Income $ 40,428 $ 14,874 $ 55,302 The Rouse Company Sales Data Rolling Twelve Months Ended September 30, 2001
Volume As of October 1, 2000, The Rouse Company managed 12,345,548 square feet of retail space that continued to be in operation at September 30, 2001. The volume of sales produced in that comparable (same-store) space increased by .4% during 2001 over 2000. For detailed information concerning growth by merchant category and region please see the Rouse Retail Barometer.
Productivity There are numerous ways to compute and analyze sales per square foot for portfolios of properties. Listed below are some of the most meaningful. Data below is exclusive of community centers, and projects in disposition. Comparable tenants in comparable properties, excluding tenant space over 10,000 square feet. $425 Comparable tenants in all properties, excluding tenant space over 10,000 square feet. $419 Comparable tenants in comparable properties. $401 Comparable tenants in all properties. $390 Comparable space sales in comparable properties, excluding space over 10,000 square feet. $403 Comparable space sales in all properties, excluding space over 10,000 square feet. $397 Comparable space sales in comparable properties. $384 Comparable space sales in all properties. $374
Definitions: Comparable tenant sales: Same tenant, same space with no new additions. Comparable space sales: Same space in both years, no acquisitions or new development. Non-comparable properties: Properties which, in 2001 or 2000, were acquired, expanded, opened or prepared for disposition, for a listing of non-comparable projects please see the retail statements of net operating income. The Rouse Company Occupancy Percentages September 30, 2001
Occupancy at Average Occupancy at Average Sept. 30, 2001 Occupancy YTD Sept. 30, 2000 Occupancy YTD
Retail: The percentages noted below are exclusive of community centers, and projects in disposition. For a definition of comparable properties, please see the retail statement of net operating income. Comparable properties 93.9% 93.1% 93.1% 94.1% Comparable and non-comparable properties combined 93.6% 92.8% 92.8% 93.0%
Office 93.7% 94.1% 95.3% 94.5%