The Rouse Co. yesterday reported its earnings before noncash charges soared to $94.7 million last year, a more than 20 percent gain that shattered a record set in 1993.
Officials of the Columbia-based real estate concern attributed the gain to continued surges in both rental income and occupancy rates in its core retail portfolio, which accounts for roughly 96 percent of its earnings.
The performance prompted Rouse's 10-member board to boost its quarterly dividend to 20 cents a share, a 17.6 percent increase that will require the company to pay more than $38 million in annual dividends this year. The increase also lifted Rouse's total yield to 4.2 percent, from 3.6 percent.
As expected, the board also elected Anthony W. Deering as Rouse's chief executive officer to replace the retiring Mathias J. DeVito.
Mr. Deering, who has been with Rouse for 22 years and worked as its president and chief operations officer since February 1993, is the third person in the company's 55-year history to hold that title.
"The properties did terrificly last year," said David L. Tripp, a Rouse vice president and director of investor relations.
"From a retail perspective especially, our re-leasing efforts went ex
tremely well. We took a tougher stand [with retail tenants] this year, and it paid off."
Rouse's earnings also benefited from recently completed mall expansions in Ohio, New York and Texas, and the refinancing of mortgage debt at significantly lower interest rates.
But it was Rouse's retail portfolio that pushed the company forward. In all, Rouse re-leased 2.3 million square feet in 1994, at an average of more than $7 per square foot above previous minimal rental rates, raising total occupancy at year-end to 95 percent.
Under its typical mall lease, tenants also are required to pay Rouse a percentage of all sales. Rouse's 8,600 merchants generated in excess of $4.6 billion in sales in 1994.
Those increases pushed Rouse's 1994 earnings before such noncash charges as depreciation and deferred taxes -- a real estate industry accounting method that best illustrates cash flow growth and results from operations -- to $103.9 million for its 75 retail centers. That figure also topped 1993 results by 20 percent.
"They had a spectacular year, especially in a period when women's apparel sales -- which make up a large part of malls -- took a beating," said Barry C. Curtis, an Alex. Brown & Sons Inc. associate analyst who tracks Rouse.
In the fourth quarter of 1994, Rouse generated earnings before depreciation and deferred taxes of $27.6 million, a 9 percent increase.
On a generally accepted accounting principle basis, Rouse reported net income of $2.2 million in 1994, on revenues of $671.2 million.
Those figures compare to a $9.3 million net loss sustained in 1993, on revenues of $646.8 million.
In the fourth quarter, Rouse had net income of $2.7 million on revenues of $172.3 million, vs. a 1993 fourth-quarter net loss of $515,000 on revenues of $173.8 million.
Rouse's stock closed yesterday at $19.25 per share, up 62 cents on a volume of 81,500 shares.
Rouse Co.
Columbia, Md. ... ... ... ... Ticker ... ... ... ... Yesterday's
... ... ... ... ... ... .. .. Symbol ... ... ... ... Cls. ... Chg.
... ... ... ... ... ... .. .. ROUS .. .. ... ... ... 19 1/4 .. .. + 5/8
Period ended
Dec. 31, 1994 ... ... ... ... 4th qtr. ... ... ... Year ago ... ... Chg.
Revenue ... ... ... .. .. ... $172,325 ... ... ... $173,842 ... ... -0.9%
EBDDT* ... ... ... ... .. ... $27,595 .. .. .. ... $25,215 .. .. .. +9.4%
Net income ... ... ... ... .. $2,767 ... .. .. ... $(515) ... .. .. --
Primary EPS .. ... ... ... .. ($0.01) .. .. .. ... ($0.08) .. .. .. --
... ... ... ... ... ... .. .. 12 mos. ... .. .. .. Year ago ... ... Chg.
Revenue ... ... ... ... .. .. $671,171 .. .. .. .. $646,805 ... ... +3.8%
EBDDT* ... ... ... ... ... .. $94,710 ... .. .. .. $78,281 .. .. .. +21.0%
Net income ... ... ... ... .. $2,159 ... ... .. .. $(9,342) ... ... --
Primary EPS .. ... ... ... .. ($0.23) .. ... .. .. ($0.44) .. .. .. --
Figures in thousands (except per share data.)
* Earnings before depreciation and deferred taxes