Net income for the full year was also down. It totaled $92.7 million in 2005 compared with $97.8 million in 2004, and, for fourth-quarter 2005, it was $17.8 million versus $28.3 million in the same quarter the previous year. During the call, the declines were attributed to a disparity in gains on sales of real estate. During 2005, the company realized a gain of just $11.5 million from real estate sales, while it recorded a gain of $22.2 million the year before. There were no gains from the sale of real estate in fourth quarter 2005, while gains of $8.2 million were obtained during fourth quarter 2004.
Rental rates at the company's 181 retail properties are rising. It negotiated 344 lease renewals for an aggregate of 735,729 sf during 2005 at an overall increase of 4.2% for an average of $15.16 per sf. During the year the company executed 345 new leases for an aggregate 1.4 million sf at an average rental rate of $10.18 per sf. As of Dec. 31, 2005, occupancy in the core shopping-center portfolio was 93.4%.
Citing "high occupancy levels and significant rent gains," chairman and CEO Chaim Katzman said 2005, "set the stage for higher gains from development and investment activities and for sustained earnings growth." He said the company was continuing to consider alternatives for its Texas portfolio, "including a possible sale or joint venture." Six development parcels are in the pipeline, including 155 acres in Tampa, 33 acres in Huntsville, AL and 11.2 acres in Canton, GA.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.