Dennis Gershenson, president and CEO, said the growth was due largely to major project completions and redevelopments during the quarter.
During that time frame, total revenues increased 19.9% or $4,584,000, to a total of $27,628,000, compared with $23,044,000 in 2002, company officials said. Income from continuing operations for the three months ended Sept. 30, also increased--46.7%, or $1,225,000 to $3,846,000 compared with $2,621,000 in 2002. Meanwhile, diluted earnings per share from continuing operations for the three months ended Sept. 30 increased 4.8%, or $0.01, to $0.22 compared to $0.21 in 2002.
For the three months ended Sept. 30, 2003, diluted FFO on a per share basis increased 11.8%, or $0.06, to $0.57 compared with $0.51 in 2002 and Diluted FFO increased 29.0%, or $2,254,000 to $10,030,000 compared with $7,776,000 for the three months ended Sept. 30, 2002.
"During the quarter we completed three acquisitions in Michigan. We also commenced a number of shopping center redevelopments bringing to nine the total number of centers currently undergoing major changes," Gershenson said. "We continue to capitalize upon growth opportunities within our core portfolio as well as acquire shopping centers with future value-added opportunities."
During the quarter, the company acquired three shopping centers at an aggregate purchase price of $53.5 million including the assumption of $27.7 million in debt. A portion of the proceeds from the company's June 2,150,000 common share equity offering were utilized for the acquisitions. The centers are located within markets where the company currently has a presence and include:
• Clinton Pointe shopping center in Clinton Township, MI, a suburb of Detroit--The 247,000 sf shopping center is anchored by a Target department store, which was not part of the purchase, OfficeMax and Sports Authority.
• Lakeshore Marketplace in Norton Shores, MI, a suburb of Muskegon--The 361,000 sf shopping center is anchored by TJ Maxx, Barnes & Noble, Old Navy, Elder Beerman, Hobby Lobby, Toys "R" Us, Dunhams, and Petco.
• Fairlane Meadows shopping center in Dearborn, MI--The 313,000 sf shopping center is anchored by Target and Mervyns, which were not included in the acquisition, as well as Best Buy, and Kids "R" Us. The shopping center also includes 21 in-line retail spaces.
In September, the company also signed a lease with Gander Mountain for a 90,000 sf superstore to occupy the entire former Kmart premises at its West Oaks shopping center in Novi, MI. Gander Mountain is a 33-year-old company that specializes in outdoor sporting goods. Gander Mountain is expected to open in spring 2004.
In Roseville, MI, the company also signed a lease with the TJX Companies to relocate and expand its 26,000-sf Marshalls store to a Marshalls Megastore in 50,000 sf, replacing a vacant Service Merchandise store at its Roseville Towne Center.
Additionally, the company completed the leasing of the redevelopment of its Tel-Twelve shopping center in Southfield, MI, by signing leases with Michaels Crafts in 24,000 sf and Pier 1 Imports in 11,000 sf.
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