8 September 2002
Cleveland-based Forest City Enterprises Inc’s net earnings fell 18% in the second quarter to $US12.7 million, or 26.4% to US25c/share, but the company wasn’t fazed, saying earnings before depreciation, amortisation & deferred tax (ebdt) gave a more consistent picture. Ebdt rose 17.8% to $US43.6 million, or 8.8% to US87c/share, on consolidated revenue up 4.2% to $US239.9 million. The company focused on high-entry-barrier markets. Growth came from opening 12 projects in 2001, 14 (5 new, 9 acquisitions) in the first half of 2002, and from several project milestones this quarter. At Denver’s old airport, Stapleton, 650 of the 665 house sites have been sold to builders, who have sold 345 homes. Forest City opened the 62,500mÂ² Quebec Square power centre and opened 2 office buildings costing $US103.2 million & containing 31,200mÂ² of office space in the University Park at MIT, Boston, office & biomedical park. It opened the $US14 million 5300mÂ² Bessemer Court at Station Square riverfront retail/restaurant/entertainment/parking (now about 4900 parking spaces, biggest in Pittsburgh) redevelopment of part of the old station (the whole of Station Square covers 21ha, slightly more than Auckland’s Quay Park, and has about 50,000m2 of premier office space). In New York, former World Trade Centre tenant Bank of New York will move 1500 staff into the $US74 million 36,000mÂ² Atlantic Terminal office building above retail in Brooklyn, and 2 state government agencies will move into a similar 13,000mÂ² office-over-retail development in Harlem.
Equity Office Properties Trust has got a $US50 million lease termination agreement out of Californian technology company Inktomi, which signed 13-year & 15-year leases on the 37,000mÂ² of 2 new San Francisco buildings in 2000. $US21.5 million of Inktomi’s payment is in a promissory note. The deal relies on sale of Inktomi’s Bayside Towers headquarters, or alternatively Equity Office taking possession of Bayside Towers. Equity Office also gets 5 million Inktomi shares, which now have no value.
5 September 2002
Debut Services Ltd, a joint venture between Bovis Lend Lease Ltd and Babcock International Group plc, has been named preferred bidder for the first stage of the British Defence Ministry’s single living accommodation modernisation programme, worth Â£1 billion over 10 years.
The Glimcher Realty Trust has sold 13 properties (11 community retail centres & 2 single-tenant assets) in the US Mid-west & South-east for $US106 million. The properties have 196,561mÂ² of gross lettable area ($US539.27/gross mÂ²) The trust has another 9 assets under contract to the same buyer, a group of private investors not previously involved with Glimcher. The trust has used the cash proceeds to repay a mortgage and get below a 60% debt:market capitalisation ratio. The properties sold range from a couple of 3500mÂ² & 6000mÂ² to 24,000mÂ². Glimcher still owns/has an interest in 85 properties containing 2.6 million mÂ² gross lettable area, most of that in 23 regional malls.