For the nine months ended Sept. 30, 2001, diluted Funds from Operations increased 3.4 percent, or approximately $763,000, to $23.473 million compared with $22.71 million for the nine months ended Sept. 30, 2000. Total revenues increased 4.7 percent or $1.019 million to a total of $22.653 million compared with $21.634 million in 2000.
During the quarter, the company signed leases with two anchor tenants for the conversion of its Tel-Twelve shopping center in Southfield from an enclosed regional mall to an open-air center. The redevelopment consists of the demolition of a major portion of the building to allow for the construction of a 140,000 sf Lowe's Home Improvement store. Also included in the project is the expansion of the existing 129,000-sf Kmart to a 156,000-sf super store format and the relocation and expansion of DSW Shoe Warehouse.
In addition, the project includes the development of 47,000-sf of outlots, which will be tenanted by destination-oriented users and nationally recognized restaurants. The company has also negotiated a termination of the Montgomery Ward lease for another anchor.The company is also announcing the redevelopment of its Troy Towne Center, in Troy, Ohio with the expansion of the 121,000-sf Wal-Mart into a 197,000-sf superstore. A portion of the center will be demolished to accommodate the expansion.
The company has also secured the rights to the Montgomery Ward space at its Shoppes of Lakeland shopping center in Lakeland, Florida and is negotiating with several nationally recognized anchor tenants as additions to the center.
"The de-malling of Tel-Twelve and repositioning of Troy Towne are taking place during a lull in the economy so that our new and expanded retailers are open and on-line when the retail marketplace recovers," said Dennis Gershenson, president and CEO of the company.
"These positive changes at our centers, however, do not come without a short-term cost. As we take income off line to commence our redevelopments, we expect our estimated diluted FFO per share to be reduced from the $2.60 to $2.62 range in 2001 to between $2.30 and $2.40 in 2002. The loss of revenue will be replaced as the new retailers come on line in 2003."
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