Chelsea Property Group, Inc. (ticker: CPG, exchange: New York Stock Exchange) News Release - 7-Jun-2001
Chelsea Property Group Declares Quarterly Dividend
ROSELAND, N.J., May 10 /PRNewswire/ -- Chelsea Property Group, Inc.
(NYSE: CPG) today reported operating results for the first quarter ended
March 31, 2001.
First quarter funds from operations (FFO) before minority interest rose
16% to $22.9 million from $19.8 million in the year-ago first quarter, and
diluted FFO per share rose 14% to $1.16 from $1.02, respectively. Rental
revenues from wholly-owned assets rose 9% to $31.5 million from $28.8 million,
and total revenues from wholly-owned assets rose 13% to $44.8 million from
$39.5 million, respectively. Income from unconsolidated investments rose to
$3.3 million from $0.1 million, primarily due to the openings during 2000 of
Orlando Premium Outlets (Orlando, Florida), Gotemba Premium Outlets (near
Tokyo, Japan) and Rinku Premium Outlets (near Osaka, Japan), and the
acquisition in late 2000 of an interest in four U.S. outlet properties; this
increase was partially offset by a $1.2 million loss related to the Company's
investment in Chelsea Interactive. First quarter earnings before interest,
depreciation and amortization (EBITDA) rose 26% to $35.8 million from
$28.4 million, respectively.
First quarter revenue and earnings comparisons were positively impacted by
internal rent growth; higher percentage rents; the completion since December
31, 1999 of expansions totaling approximately 350,000 square feet at four
operating properties; the openings during 2000 of four new centers totaling
more than one million square feet (Orlando, Gotemba, Rinku and Allen Premium
Outlets); and the acquisition in December 2000 of a 49% interest in four
outlet properties with a total gross leasable area of 1.6 million square feet.
Gross leasable area in operation, including joint venture projects in the
United States and Japan, totaled 8.2 million square feet at March 31, 2001,
compared to 5.3 million square feet a year earlier. The portfolio remained
98% leased at the end of the quarter.
Same-space sales (weighted average sales per square foot reported in space
open for the full duration of both comparison periods) at U.S. properties,
including newly acquired centers, were flat during the first quarter. The
428,000 square-foot Orlando Premium Outlets, which opened in mid-2000 and is
not yet included in same-space comparisons, continued to perform strongly
through the first quarter and remains on track to become one of Chelsea's most
productive properties in terms of sales per square foot. Orlando Premium
Outlets is a 50/50 joint venture with Simon Property Group, Inc. (NYSE: SPG).
In March, Chelsea's e-commerce technology affiliate -- Chelsea
Interactive, Inc. -- announced that The Timberland Company (NYSE: TBL) will
operate its online stores using the Chelsea Interactive technology platform.
Online stores for Timberland (http://www.Timberland.com), Mountain Athletic
(http://www.MountainAthletic.com) and Timberland Pro
(http://www.TimberlandPro.com) have completed testing and are scheduled to be
launched on May 15. They will join Elisabeth (http://www.Elisabeth.com), a
unit of Liz Claiborne, Inc., Cole Haan (http://www.ColeHaan.com), a unit of
Nike, Inc., and Maidenform (http://www.Maidenform.com), which have been
operating on the Chelsea Interactive platform since last year. Liz Lange
Maternity (http://www.LizLange.com), Intershoe (http://www.ViaSpiga.com and
http://www.Nickels.com) and Jhane Barnes (http://www.JhaneBarnes.com) are in
various stages of development and also expected to launch later this year.
On January 26, 2001, Chelsea issued $150 million of 10-year 8.25%
unsecured notes through its operating partnership, CPG Partners, L.P.
Proceeds were used to repay $100 million of maturing unsecured notes, for
working capital and to repay borrowings under the Company's $160 million bank
line of credit, which remained unused at the end of the first quarter.
David Bloom, Chairman and Chief Executive Officer, said, "Our first
quarter results reflect solid internal growth as well as new income from
centers completed or acquired in 2000. We are particularly pleased with the
performance of our portfolio given the current economic environment, a
stronger U.S. dollar compared to a year ago, and sales that were affected by
this year's severe winter weather in the eastern United States. Furthermore,
our strong liquidity and balance sheet position us very well to take advantage
of new growth and/or acquisition opportunities both in the United States and
abroad."
Chelsea Property Group, Inc. is a fully integrated, self-administered and
self-managed real estate investment trust (REIT) that wholly or partially owns
27 Premium Outlet(TM) shopping centers -- containing 8.2 million square feet
of gross leasable area -- in 15 states and Japan. U.S. portfolio tenant sales
averaged $400 per square foot in 2000, among the highest in retail real
estate. Chelsea's leading properties include Woodbury Common Premium Outlets,
near New York City; Desert Hills Premium Outlets, near Palm Springs,
California; Wrentham Village Premium Outlets, near Boston; Waikele Premium
Outlets, near Honolulu, Hawaii; Gotemba Premium Outlets, near Tokyo, Japan;
and Rinku Premium Outlets, near Osaka, Japan. The Company has also developed,
through its Chelsea Interactive affiliate, an e-commerce technology platform
for use by brands going online. Please see http://www.CPGI.com,
http://www.PremiumOutlets.co.jp and http://www.ChelseaInteractive.com for more
information.
Chelsea Property Group's first-quarter conference call with investors and
analysts will be held on Thursday, May 10, 2001, at 2:00 p.m. EDT. Access is
available by dialing 800-624-0894 (U.S. callers) or 212-346-6383
(international callers) and referencing reservation No. 18773816. A replay of
the call will be available through June 10, 2001 by dialing 800-633-8284 (U.S.
callers) or 858-812-6440 (international callers) with the same reservation
number.
This news release includes "forward-looking" statements under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Although Chelsea Property Group believes that the expectations reflected in
such statements are based on reasonable assumptions, it can give no assurance
that its expectations will be attained. Forward-looking statements involve
known and unknown risks that may cause actual results to differ materially
from expected results. Risks include, without limitation, obtaining
regulatory entitlements for and completion of development projects; the
availability and cost of capital and foreign currency; credit risk; the
Company's ability to lease its properties; retail, real estate and economic
conditions; risks related to e-commerce and the development of technology-
based systems; risks inherent to being a partner in joint ventures;
competition; and other risks detailed from time to time in Chelsea Property
Group's reports to the Securities and Exchange Commission. The Company
accepts no responsibility for updating forward-looking statements.
CHELSEA PROPERTY GROUP, INC.
STATEMENT OF OPERATIONS - Unaudited
(In thousands, except per share data)
Three Months Ended
March 31,
2001 2000
Revenues:
Base rent (a) $28,751 $26,251
Percentage rent 2,771 2,566
Expense reimbursements 10,624 8,774
Other income 2,678 1,948
Total revenues 44,824 39,539
Expenses:
Operating and maintenance 12,118 9,855
Depreciation and amortization 11,559 10,878
General and administrative 1,083 758
Other 790 538
Total expenses 25,550 22,029
Income before unconsolidated investments
and interest 19,274 17,510
Income from unconsolidated investments 3,279 55
Loss from Chelsea Interactive (1,198) --
Interest expense (8,615) (5,637)
Income before minority interest 12,740 11,928
Less minority interest (3,187) (3,101)
Net income 9,553 8,827
Preferred dividends (1,047) (1,047)
Net income - common shareholders $8,506 $7,780
Net income per common share (diluted) (b) $0.52 $0.49
Funds from operations (FFO) (c) $22,862 $19,789
FFO per common share (diluted) $1.16 $1.02
Dividends per common share $0.78 $0.75
(a) Base rent includes straight-line rent of $380 and $401 in the first
quarters of 2001 and 2000, respectively.
(b) Basic earnings per share were $0.53 and $0.49 in the first quarters
of 2001 and 2000, respectively.
(c) FFO per common share is defined as income before minority interest,
loss on writedown of asset and depreciation and amortization, reduced
by amortization of deferred financing costs, depreciation of non-real
estate assets, and preferred dividends.
CALCULATION OF FFO
(Amounts in thousands)
Three Months Ended
March 31,
2001 2000
Net income - common shareholders $8,506 $7,780
Add:
Depreciation and amortization (1) 13,039 10,878
Amortization of deferred financing costs and
depreciation of non-real estate assets (408) (508)
Preferred unit distribution (1,462) (1,462)
Minority interest 3,187 3,101
FFO $22,862 $19,789
REIT common shares 16,453 16,011
Partnership units held by minority interest 3,256 3,357
Weighted average shares/units outstanding 19,709 19,368
(1) Includes depreciation and amortization from unconsolidated
investments of $1,480 for the three months ended March 31, 2001.
CHELSEA PROPERTY GROUP, INC.
SELECTED BALANCE SHEET DATA - Unaudited
(In thousands, except center data)
March 31, December 31,
2001 2000
Real estate assets, before depreciation $913,888 $908,344
Cash and cash equivalents 47,816 18,036
Total assets 915,990 901,314
Total liabilities 549,324 528,752
Minority interest 97,898 101,203
Stockholders' equity 268,768 271,359
Shares and units outstanding at period-end 19,331 19,305
DEBT DATA:
Unsecured bank debt 5,035 35,035
Secured bank debt 95,305 90,776
7.75% Notes due 2001 -- 99,987
8.375% Notes due 2005 49,881 49,877
7.25% Notes due 2007 124,784 124,776
8.625% Notes due 2009 49,907 49,902
8.25% Notes due 2011 148,560 --
Interest coverage ratio - trailing 12 months 4.7x 5.1x
OPERATING DATA: (sq ft in thousands)
Gross leasable area at period-end 8,193 8,159
Weighted average GLA during period 8,165 5,703
Lease-up at period-end 98% 98%
Number of centers (including two international) 27 27
Number of states and foreign countries 16 16
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X97956659
SOURCE Chelsea Property Group, Inc.
CONTACT: Leslie T. Chao, President, or Michael J. Clarke, CFO, or John
P. McGinnis, Dir.- Investor Relations, all of Chelsea Property Group, Inc.,
973-228-6111/
|
