Rouse Properties, Inc. (the “Company”) (“Rouse”, NYSE: RSE) a national owner of regional enclosed malls, today announced results for the three and six months ended June 30, 2012. The Company's results for the six months ended June 30, 2012 represent consolidated and combined results from January 1, 2012 through June 30, 2012.
“We are pleased with our accomplishments in the second quarter,” commented Andrew Silberfein, President and Chief Executive Officer of Rouse Properties. “The 551,000 square feet leased during the quarter contributed to a 90 basis point improvement in the portfolio's leased percentage from the first quarter 2012. We are in the beginning stages of significantly increasing our occupancy levels and sales per square foot as we implement our strategic initiatives and focused capital investments across our portfolio."
Operational Highlights Second Quarter 2012
- Comparable tenant sales increased $14 per square foot, or 5.0%, on a trailing 12-month basis.
- Leased percentage was 88.4% at quarter end, an increase of 90 basis points compared to March 31, 2012.
- Total average rental rate for new and renewal leases executed increased 6.1% and initial rental rate for new and renewal leases executed increased 2.4% on a same suite rental basis.
- Leased 551,146 square feet, more than double the volume of leasing activity in the same period of prior year.
Financial Results for the Three Months Ended June 30, 2012Core Funds From Operations (“Core FFO”) was $14.4 million, or $0.29 per diluted share, as compared to $19.5 million, or $0.54 per diluted share in the prior year period. Core FFO per share using a normalized share count was $0.29 per share as compared to $0.30 in the prior quarter and $0.39 per share in the prior year period. The decrease over the prior year is primarily a result of the inclusion of actual costs associated with general and administrative costs whereas the 2011 results included an allocation from General Growth Properties, the Company's parent company prior to the spin off on January 12, 2012.