Rouse Co. reports profit in quarter

Jennifer Shubinski

Tuesday, April 29, 2003 | 11:05 a.m.

The Rouse Co., the largest developer in Southern Nevada, today reported a profit of $24.1 million, or 24 cents per share for the first quarter ending March 31.

Those numbers are up from $14.7 million or 14 cents in the same quarter of 2002.

Revenue grew 26 percent to $336.7 million.

The Columbia, Md.-based company attributed the improvement to improved returns from its retail centers and community development activities.

"This year is off to an excellent beginning, especially in these uncertain times," Anthony W. Deering, chairman and chief executive officer said in a statement. "We expect that our performance will continue to be strong for the balance of this year; however, improved consumer confidence, reduced tensions worldwide and a strengthening economic environment would certainly be welcome trends."

In Las Vegas, Rouse is developing the Summerlin planned community, owns the Howard Hughes Center office park and is expanding the Fashion Show Mall on the Strip.

Community development net operating income was $28.6 million compared to $19.7 million in 2002's first quarter. The increase was primarily due to continued demand for land in Summerlin and the company's two other community projects in Columbia and Fairwood, Md.

Retail center net operating income was $129.5 million, up from $95 million, largely due to the inclusion of the results from the interests of eight retail centers that were acquired from Rodamco North America N.V. in May 2002, plus the opening of the expanded Fashion Show mall on the Las Vegas Strip and the Village of Merrick Place in Coral Gables, Fla., in the second half of 2002.

The Rouse Co., through its affiliates, operates more than 150 properties encompassing retail, office, research and development and industrial space in 22 states.

The company's stock advanced 1.86 percent on the news this morning, trading at $35.56, up 65 cents.