PNP Reports 35.2% Increase in Total FFO

SAN DIEGO-Pan Pacific Retail Properties Inc., the giant of a retail REIT, is coming off a strong first quarter, having posted a 38.3% increase in total revenue and 35.2% jump in total funds from operations, as compared with the same period last year.

The company, which is the largest shopping center REIT focused exclusively on the West Coast, announced total FFO of $32.8 million for the first quarter ending March 31, 2003. The figure reflects a significant increase from the same period last year, when total FFO stood at $24.2 million. On a per share basis, FFO rose 15.5%, from $0.71 in first quarter 2002 to $0.82 in first quarter 2003.

Along with FFO, total revenue increased, jumping to $63.3 million in the first quarter of this year from $45.7 million in the first quarter of last year. Net income rose a hefty 56.2%, from $16.4 million in first quarter 2002 to $25.6 million in first quarter 2003.

At the close of this year’s first quarter, Pan Pacific also had $975.9 million in debt outstanding, “equating to a debt-to-total market capitalization ratio of 38.8%,” according to a company statement. The debt was comprised of $428.7 million in senior unsecured notes; $361.2 million in fixed-rate, long-term mortgage debt; $161.5 million of floating-rate debt outstanding on the company’s unsecured credit line; $18.5 million outstanding on a floating-rate construction loan; and $6 million outstanding on floating-rate property level bonds.