The Company's retail centers generated excellent results for 2003. Net Operating Income (NOI) was $508.9 million for the year, up 8.3% from $469.8 million in 2002, while for the fourth quarter, NOI was down slightly, $136.9 million versus $145.2 million, due to the sale earlier in the year of six retail centers in the Philadelphia area. Comparable property NOI increased by 4.0% for the year and 2.1% for the fourth quarter. Comparable space tenant sales were ahead by 1.2% over 2002, while sales productivity, $426 per square foot for small merchants, and occupancy levels, 94.8% at year-end, continued to be among the best in the shopping center industry.

The Company's portfolio of office and other properties generated $122.2 million of Net Operating Income (NOI) compared to $125.0 million in 2002, and for the fourth quarter the NOI was $31.8 million, down from $33.4 million for the same period last year. The continuing weak demand for office space nationally has affected several of the Company's projects; as a result, average occupancy levels for 2003 were 87.9% compared to 89.6% for 2002.

Columbia and Fairwood in Maryland and Summerlin in Nevada, the Company's three existing master-planned communities, produced record-breaking results for 2003. Net Operating Income (NOI) was $123.9 million for 2003, up 43.7% from $86.2 million in 2002, and for the fourth quarter, NOI was $31.3 million compared to $23.5 million a year ago. Given that 33 fewer acres were sold in 2003 than in 2002, these record results were largely due to higher land prices and greater participation payments from builders in the prices of new homes sold.

"It was a year filled with accomplishment and recognition," said Anthony W. Deering, Chairman and CEO of the Company. "Not only were financial results terrific, but we made five exciting acquisitions during the year."

The acquisitions were:

-- Christiana Mall (an effective 50% interest), a 1.1 million square foot regional retail center in Newark, Del. The center has four department stores and 303,000 square feet of small shops which generate sales of approximately $600 per square foot;

-- Staten Island Mall (increased ownership position to 100%), the only regional retail center in that borough of New York City. The center includes three department stores and 622,000 square feet of very productive small merchants;

-- Mizner Park (a 50% interest) in Boca Raton, Fla., one of the first and most successful large-scale, mixed-use projects in the United States. The project includes high quality retail and office space, parking structures and residential units (not part of the Company's interest);

-- A total of 9,000 acres in the northwestern suburbs of Houston, Tex., about 25 miles from downtown on US-290. Plans call for approximately 17,000 single family residential units, 900 acres of multi-family and commercial uses and initial land sales are expected in 2005;

-- A 52.5% economic interest in The Woodlands, also in Houston, Tex., one of the most successful master-planned communities in the United States. The acquisition included approximately 4,300 saleable residential acres, 1,200 saleable commercial acres and numerous commercial properties - office buildings, conference center, golf courses, etc.

"Our commercial development efforts produced continued progress on the Village of Merrick Park in Coral Gables, Fla., Fashion Show on the "Strip" in Las Vegas, Nev., the Shops at La Cantera in San Antonio, Tex., and several other projects. Perhaps most satisfying, our loyal shareholders were rewarded with an increased cash dividend for 2004 -- $.47 per share quarterly, an increase of 12% over 2003's rate - and an increased share price -- $47.00 per share at the close of business on December 31, 2003, up 48.3% from $31.70 per share at the close on December 31, 2002," concluded Deering.

Headquartered in Columbia, Md., The Rouse Company was founded in 1939 and became a public company in 1956. A premier real estate development and management company, The Rouse Company, through its numerous affiliates, operates more than 150 properties encompassing retail, office, research and development and industrial space in 22 states.

The Company is also the developer of the planned communities of Columbia, Md., and Summerlin, along the western edge of Las Vegas, Nev., and a new project in Houston, Tex. The Company is also an investor in The Woodlands, a planned community in Houston, Tex.

This release includes forward-looking statements, which reflect the Company's current view with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical or anticipated results. The words "believe," "expect," "anticipate," "should" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Rouse Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a discussion of certain factors that could cause actual results to differ materially from historical or anticipated results, including real estate investment risks, development risks and changes in the economic climate, see Exhibit 99.1 of The Rouse Company's Form 10-Q for the quarter ended September 30, 2003.

TOP