Rouse Co., Crescent report mixed results for first quarter

Thursday, May 6, 2004 | 10:55 a.m.

Two big real estate investment funds active in Las Vegas reported mixed operating results for the first quarter this morning.

The Rouse Co. of Columbia, Md., reported funds from operations of $89.3 million, or 87 cents per share, up from $76.6 million, or 82 cents, in the year-ago quarter.

Rouse reported strong demand for home lots at its planned Summerlin community in the Las Vegas market and said margins there improved thanks to its initiative to sell more finished lots.

The company also owns the Fashion Show mall on the Las Vegas Strip, where business may be boosted by next year's opening of the $2.4 billion Wynn Las Vegas casino resort across the street.

Also, Clark County is proceeding with plans to build pedestrian bridges linking the four corners of the Strip and Spring Mountain Road.

Granite Construction said it won a $20.4 million contract from Clark County to build three bridges, which include 12 escalators and six elevators. They will link the Venetian resort, Wynn Las Vegas, Fashion Show and the Treasure Island resort.

Separately, Crescent Real Estate Equities Co. of Fort Worth, Texas, reported funds from operations before impairment charges of $27.5 million, or 23 cents per share, down from $41.4 million, or 35 cents.

Crescent last year purchased Rouse's big Hughes Center office park east of the Las Vegas Strip at Flamingo and Paradise roads. Rouse today reported a gain of $35.3 million from the sale of the park.

Both Crescent and Rouse have commercial and residential operations around the country.

"Our first quarter FFO of 23 cents per share was above our expectations of 20 to 22 cents per share due primarily to timing of residential activity. We continue to see 2004 as a year of stabilization during which we are positioning our office portfolio for improving market fundamentals. While job growth numbers are making better headlines these days for the nation as well as in our markets, we believe it will take several quarters for this trend to have a meaningful impact on office demand," said Crescent Chief Executive John Goff.