"The acquisition is consistent with our philosophy of owning the dominant mall in its marketplace," says CEO John Bucksbaum.

Meanwhile, the company expects to spend $175 million in each of the next three years on expanding and renovating some of its 153 malls. That amount is equivalent to renovation expenses in 2002, Bucksbaum says.

"Improving what we already own provides the greatest return that is available to us," he adds. However, Bucksbaum says General Growth Properties is looking at potential acquisitions.

The jump in funds from operations came despite sales dipping about 3% to $345 per sf, according to president and chief operating officer Robert Michaels. Occupancy did improve, though, by more than a full percentage point to 90.4%.

The company's leasing team is beginning to focus on 2004 expirations now that most of the deals expiring this year have been dealt with, Michaels adds.

"The economy continues to work against us, and we don't expect marked improvement through 2003," Bucksbaum says.

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