Horizon Group Properties Announces Third Quarter 2001 Results
CHICAGO, Ill., Nov. 14 /PRNewswire/ -- Horizon Group Properties, Inc. (HGP) (NASDAQ: HGPI), an owner, operator and developer of factory outlet and power centers, today announced third quarter 2001 Funds From Operations (FFO) of ($276,000) or ($.08) per share. This compares to $906,000 or $.27 per share in the same quarter in the prior year. Included in FFO for the third quarter of 2001 were penalties and additional interest of $291,000 related to the extension of HGP's loan with CDC Mortgage Capital, Inc. Third Quarter Statistics Leasing * Portfolio occupancy at the end of the third quarter of 2001 decreased to 76.5% from 83.3% at the end of the third quarter of 2000 and from 77.0% at the end of the second quarter of 2001. Sixty percent of the year to year decline resulted from tenant bankruptcies, including Bugle Boy, Warnaco and Paul Harris. Including leases executed by the end of the third quarter, but with tenants yet to take occupancy, current working occupancy is 78.3%. * Centers showing increases in occupancy included: Lakeshore Marketplace in Norton Shores, Michigan up from 86.5% at the end of the third quarter of 2000 to 88.9% at the end of the third quarter 2001, and, with the addition of Petco, which opened in early November 2001, occupancy increased to 94%; Medford, Minnesota, up 1.3% to 84.2% at the end of the third quarter of 2001 from the end of the second quarter of 2001; Tulare, California, up 2.5% during the third quarter of 2001 to 96%; and Traverse City, Michigan, up to 84.2% from to 77.2 % at the end of the second quarter of 2001. * Renewed 132,894 square feet of expiring leases or 64% of lease expirations. * Executed 52,932 square feet of new leases. * New leases executed in the third quarter of 2001 included those for clearance centers for Spiegel in Monroe, Michigan and GAP in Somerset, Pennsylvania.. Sales * Same Space Sales for the entire portfolio increased 2.8% for the three months ended September 30, 2001 compared to the same quarter a year earlier. For the twelve months ended September 30, 2001, Same Space Sales increased 3.6% compared to the same period a year earlier. Same Store Sales for the entire portfolio decreased 7.7% for the quarter ended September 30, 2001 and 4.6% for the twelve months ended September 30, 2001 compared to the same period a year earlier. Same Space Sales for the twelve months ended September 30, 2001 increased 16% at Laughlin, 7.8% at Norton Shores, Michigan, 6.4% at Traverse City, Michigan and 7.2% at Tulare, California compared to the same period a year earlier. Other significant accomplishments during the quarter included: * Refinancing Lakeshore Marketplace with a $16 million, 10 year fixed rate loan. The proceeds were used to reduce the outstanding balance of the Nomura loan. * Completing an extension of the maturity of our Nomura loan, which is now held by CDC Mortgage Capital, Inc. The extended maturity date is July 11, 2002 and is secured by our centers in Monroe, Michigan, Medford, Minnesota, Laughlin, Nevada and Warrenton, Missouri. * Execution of a contract to sell a 1.4 acre outparcel located at Lakeshore Marketplace. The consideration is $627,000 in cash and the assumption by the purchaser of $40,000 in special assessments. The sale was completed on November 8, 2001. Commenting on the Company's third quarter results, HGP's Chairman, President and Chief Executive Officer, Gary J. Skoien, said, "Our revenues have been affected by a number of large tenants which have recently filed for bankruptcy. We are moving aggressively to fill the vacated spaces with replacement tenants. A large portion of the decline in revenue is associated with the properties which secure the JP Morgan loans. As was previously announced, we have commenced discussions with the goal of restructuring those loans." Based in Chicago, Illinois, Horizon Group Properties, Inc. has 11 factory outlet centers and one power center in 9 states totaling more than 2.5 million square feet. Safe Harbor Statement: The statements contained herein, which are not historical facts, are forward-looking statements based upon economic forecasts, budgets, and other factors which, by their nature, involve known risks, uncertainties and other factors which may cause the actual results, performance or achievements of Horizon Group Properties, Inc. to be materially different from any future results implied by such statements. In particular, among the factors that could cause actual results to differ materially are the following: business conditions and the general economy, competitive factors, interest rates and other risks inherent in the real estate business. For further information on factors which could impact the Company and the statements contained herein, reference is made to the Company's filings with the Securities and Exchange Commission. HORIZON GROUP PROPERTIES, INC. Selected Financial Data (audited) (thousands, except per share data) For the three For the three months ended months ended September 30, 2001 September 30, 2000 Total revenue 5,658 7,008 Total expense 25,589 7,549 Gain on sale of real estate 42 - Minority interests 2,950 79 Net loss (16,939) (462) Net loss per share - basic and diluted (5.90) (0.16) Funds from operations - diluted (276) 906 Funds from operations per share - diluted (0.08) 0.27 As of As of September 30, December 31, 2001 2000 Selected balance sheet data: Investment in real property 129,280 145,719 Accumulated depreciation (15,517) (11,916) Other assets 11,283 14,165 Total assets 125,046 147,968 Total mortgage debt 104,167 104,401 Other liabilities 5,969 7,074 Minority interests 2,286 5,505 Shareholders' equity 12,624 30,988 Total liabilities and shareholders' equity 125,046 147,968 Weighted average shares and units outstanding - diluted 3,381 3,388 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X51161686
SOURCE Horizon Group Properties
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