"The growth in our FFO was primarily driven by a reduction in interest rates, which impacted us favorably, especially in the fourth quarter," says Robert S. Taubman, chairman, president and chief executive officer. "In addition, increased rents in our centers contributed to our results."
The retail REIT incurred an increase in depreciation expense from four new shopping centers that opened during 2001 and a charge related to its fashionmall.com investment.
For the year ended December 31, 2001, average rent per sf for comparable operating centers was $40.97, up 3% from $39.77 in 2000. Average occupancy has dropped by a few percentage points.
"Early in 2001, we disclosed that occupancy would soften for the year," Taubman says. "We are very focused on our leasing efforts to reverse this trend."
The company has started construction of The Mall at Millenia in Orlando, which will open in October.
"In addition, we are planning to break ground for Stony Point Fashion Park(Richmond, VA) in the very near future," Taubman says. "This approximately 700,000-sf center, anchored by Dillard's and Saks, is expected to open fall 2003."
In December, the company increased its common dividend by 2% while at the same time continuing to lower its payout ratio for the sixth consecutive year.
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