Business briefs for March 1, 2004

Monday, March 1, 2004 | 11:09 a.m.

Revenue jumps for LV mall owner

ROSELAND, N.J. -- Chelsea Property Group Inc. swung to profitability in the fourth quarter, as revenue climbed 24 percent and the company shed a significant nonrecurring charge.

Chelsea owns two malls in Las Vegas, the Las Vegas Premium Outlets downtown and the Las Vegas Outlet Center on southern Las Vegas Boulevard.

The company's funds from operations per share beat Wall Street's expectations, and Chelsea Property issued a 2004 FFO forecast 7 cents above the Thomson First Call estimate.

The outlet-mall owner last week reported earnings of $30.1 million, or 66 cents a share, compared with a loss of $7.8 million, or 20 cents a share, last year. Year-ago results included a $34.4 million write-down of the company's investment in its e-commerce affiliate.

Funds from operations climbed 40 percent to $56.9 million, or $1.08 a share, from $40.8 million, or 85 cents a share, last year.

On average, the three analysts polled by Thomson First Call expected the REIT's funds from operations to reach $1.02 in the fourth quarter.

Profit improves for developer

COLUMBIA, Md. -- The Rouse Co., a big developer in Las Vegas, reported a fourth-quarter profit of $57.9 million, or 59 cents per share, compared to a loss of $5.3 million or 10 cents in the year-ago quarter.

The 2002 quarter included $42.1 million of impairment losses on operating properties.

Funds from operations in the fourth quarter were $101.8 million, or $1.04 per share, up from $50.9 million, or 54 cents per share. In Las Vegas, Rouse is developing the Summerlin planned community and owns the Fashion Show Mall on the Strip.