Wednesday, Oct. 29, 2003 | 11:12 a.m.
Chicago-based General Growth Properties Inc., owner of two regional shopping malls in Las Vegas, reported a third-quarter profit of $122.1 million or 74 cents per share, up from $91.2 million or 71 cents in the year-ago quarter.
Revenue grew 21 percent to $406.8 million.
General Growth, operating as a real estate investment trust, owns the Boulevard and Meadows malls in Las Vegas.
The Meadows Mall, at Valley View Boulevard and U.S. 95, plans to open two new stores this fall. They are teen clothier Hollister Co. and Skin Nuvo.
Hollister's 7,000-square-foot store, which will sell clothes, CDs, jewelry and youth-oriented magazines, will be on the lower level near Dillard's.
Skin Nuvo, which specializes in skin-care procedures such as microdermabrasion, laser procedures and skin-care products, will open a 2,031-square-foot store on the upper level near JCPenney.
Retailer Torrid, which sells plus-sized clothes for young women, opened on the upper level near Dillard's in September.
General Growth owns or manage 162 regional shopping malls in 39 states.
Separately, The Rouse Co., developer of Las Vegas' Fashion Show mall and the Summerlin planned community, said Tuesday its third-quarter funds from operations (FFO) rose 17 percent, reflecting growth from its community development activities.
Rouse is the largest developer in Southern Nevada with Summerlin, its Hughes Center office park in mid-town Las Vegas and its Fashion Show mall on the Strip.
Chief Executive Anthony Deering said Las Vegas remains a strong market for the real estate investment trust based in Columbia, Md.
Deering also said during an earnings conference call that Rouse finalized a deal with May Department Stores Co. for its Lord & Taylor space at Fashion Show. May announced this year it would not occupy the 138,000-square-foot space as previously planned. Rouse is buying back the property and plans to lease it to smaller tenants.
Rising land prices in fast-growing Summerlin boosted Rouse's quarterly results.
The company said land per acre in Summerlin is selling for $445,000 an acre compared to $291,000 an acre last year.
Rouse also will step up its "finished lot" program in Summerlin during 2004. That program sells "finished" lots with infrastructure to builders right before the buyer is ready to build. That optimizes the selling price for Rouse, said Tim Lordan, assistant controller for planning and analysis.
The company also owns commercial real estate, office, mixed-use and industrial properties including Boston's Faneuil Hall Marketplace, Baltimore's The Gallery and New York's South Street Seaport.
The REIT posted funds from operations, a key measure of profitability, of $89.2 million, or 92 cents a share, up from $76.4 million, or 82 cents a share, a year ago.
FFO for the third quarter included an interest charge for the application of a new accounting standard of 2 cents a share, and an impairment loss related to Westdale Mall in Cedar Rapids, Iowa, of 6 cents a share.
The Associated Press
contributed to this report.
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