Acadia Realty Trust Reports Fourth Quarter and Year-End 2004 Operating Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Acadia Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Trust (NYSE NYSE See: New York Stock Exchange :AKR AKR Auroral Kilometric Radiation AKR Vehicle Cargo Ship AKR Address Key Register AKR Anime Kingdom Rebirth - "Acadia" or the "Company"), a real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ") today reported operating results for the quarter and year ended December 31, 2004. All per share amounts discussed below are on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Fourth Quarter and Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2004 Highlights 13.6% FFO FFO See: Funds from operations growth over fourth quarter 2003 --Funds from operations ("FFO") per share for the fourth quarter of $0.25 and $0.98 for the year were consistent with guidance --Earnings per share for the quarter and year were $ 0.32 and $0.65, respectively Portfolio occupancy increases 320 basis points to 92.3% from third quarter 2004 --Same-store net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. up 3.9% for 2004 --Rent spreads on new and renewal leases which commenced during 2004 increased 9% over the previous rents on a cash basis Balance sheet ratios remain strong - Dividend increased --Dividend increased by 7.8% commencing with fourth quarter dividend --Maintained conservative dividend payout ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: for 2004 of 66% of FFO --30% debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. --3.2 to 1 fixed-charge coverage fixed-charge coverage The number of times that a firm's operating income exceeds its fixed payments. Fixed-charge coverage is a measure of a firm's ability to meet contractually fixed payments, with high coverage indicating significant flexibility for making --94% of debt is fixed-rate Continued expansion of external growth platform during 2004 --Formed second acquisition fund ("Fund II") with $300 million of committed discretionary capital --New York York, former name of Toronto, Canada York, Ont.: see Toronto, Ont., Canada. York, city, England York, city (1991 pop. 123,126) and district, North Yorkshire, N England, at the confluence of the Ouse and Foss rivers. Urban/Infill program launched; second redevelopment project added to pipeline during fourth quarter --Formation of Retailer Controlled Property Venture ("RCP (networking, tool) rcp - (Remote copy) The Unix utility for copying files over Ethernet. Rcp is similar to FTP but uses the hosts.equiv user authentication method. Unix manual page: rcp(1). Venture") with Klaff/Lubert-Adler leads to Mervyn's investment Fourth Quarter and Year-End Operating Results - In-Line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with Guidance FFO, a widely accepted measure of REIT performance, for the quarter ended December 31, 2004 was $8.0 million, or $0.25 per share, compared to $6.5 million, or $0.22 per share for the fourth quarter 2003. FFO for the year ended December 31, 2004 was $30.3 million, or $0.98 per share compared to $0.95 per share for the same period in 2003. 2004 FFO included a charge during the third quarter of approximately $0.7 million, or $0.02 per share, related to flood damage incurred at the Mark Plaza located in Wilkes-Barre, PA as previously announced by the Company. 2003 FFO included $1.2 million, or $0.04 per share of additional rents received during the first quarter related to the assignment of an anchor lease. Earnings per share on a fully diluted basis was $0.32 for fourth quarter 2004 compared to a loss of $0.02 for fourth quarter 2003. Fourth quarter 2004 included a gain of $0.21 from the disposition of a non-core property. Fourth quarter 2003 included a non-cash write-off of $0.10 of unamortized tenant improvement costs related to the buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. and termination of the former anchor at the Town Line Plaza redevelopment project. For the year ended December 31, 2004 and 2003, earnings per share was $0.65 and $0.29, respectively. Portfolio Activity - Portfolio Occupancy reaches 92.3% On a year-over-year basis, Acadia increased its portfolio occupancy by 470 basis points. Year-end 2004 occupancy was 92.3% compared to 87.6% at year-end 2003 and 86.3% for 2002. On a same-store basis, year-end 2004 occupancy increased 250 basis points over 2003 occupancy of 89.8%. On a sequential basis, year-end 2004 occupancy increased 320 basis points from that of third quarter 2004. Same store net operating income ("NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ") for the retail portfolio increased 3.9% for annual 2004 over 2003. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality was driven primarily from increased rents in the core portfolio from leasing and redevelopment activities. Fourth quarter 2004 NOI was up 4.1% over fourth quarter 2003. During 2004, Acadia executed new and renewal leases totaling 640,000 square feet, or 9% of the retail portfolio (including joint venture properties except Kroger/Safeway Portfolio), at an average increase of 9% over the previous base rents on a cash basis. Opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. Non-Core Disposition During the fourth quarter, Acadia disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of the East End Centre located in Wilkes-Barre, Pennsylvania Wilkes-Barre (IPA: /ˈwɪlksbɛrə/, /-bɛri/, or /-bɛr/[1] for approximately $12.4 million at an effective 5.6% capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. . In connection with the transaction, the Company extinguished ex·tin·guish tr.v. ex·tin·guished, ex·tin·guish·ing, ex·tin·guish·es 1. To put out (a fire, for example); quench. 2. To put an end to (hopes, for example); destroy. See Synonyms at abolish. 3. $23.8 million of 8.13% fixed-rate mortgage debt which was scheduled to mature in 2010 and cross-collateralized by the East End Centre and Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Plaza. Balance Sheet - Solid Platform for Growth Locking in long-term low-rate debt During the fourth quarter, Acadia further reduced its interest rate exposure by locking in interest rates and extending the maturity for ten years on $64.0 million of joint venture debt, of which $31.4 million represents the Company's pro-rata share. In addition, the Company reduced its outstanding floating rate debt by $47.6 million. As a result, 94% of the Company's total mortgage debt, inclusive of inclusive of prep. Taking into consideration or account; including. long-term interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and the Company's pro-rata share of joint venture debt is now fixed-rate. This has been accomplished while maintaining a blended cost of debt of 5.9% as of year-end 2004, as compared to 85% being fixed-rate as of the beginning of the year at a 6.1% blended cost of debt. During the fourth quarter Acadia completed a follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. of 1.9 million shares which provided $28.3 million of proceeds. These proceeds were used to further de-leverage the balance sheet by retiring $11.4 million of above-market fixed-rate debt. The remaining $16.9 million was temporarily used to reduce the Company's borrowings under its lines of credit and will be utilized to fund future investment activity including Fund II acquisitions, anticipated mezzanine/preferred equity investments and other potential investment opportunities. For 2004, the strength of Acadia's balance sheet was evidenced by positive trends in its financial ratios as well as sufficient working capital to fund all of its foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. internal and external capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . All financial ratios include the Company's pro-rata share of unconsolidated joint venture debt and interest expense: --Debt to total market capitalization at year-end was 30% compared with 39% for 2003 and 49% for 2002 --For 2004, 94% of the Company's total mortgage debt, inclusive of the effect of interest rate swaps, was fixed-rate. This contrasts with 85% for 2003 and 74% as of the end of 2002 --Fixed-charge ratio was 3.2 times (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become / interest expense plus preferred distributions) --Dividend payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. for 2004 was 66% of FFO --$33 million currently available under existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities to fund anticipated capital requirements Dividend Increase - 7.8% Increase for Fourth Quarter 2004 - Follows 11.5% Increase in First Quarter 2003 and 8% Increase in 2002 During the fourth quarter, Acadia's Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. approved an increase in Acadia's quarterly dividend to $0.1725 per share, which represents a 7.8% increase over the $0.16 quarterly dividend paid by Acadia during 2004. This represents a $0.05 increase on an annual basis, $0.64 to $0.69, and was effective for the dividend paid January 14, 2005. Acadia has now increased its dividend by more than 44% on a cumulative basis over the past three years. Even after the recent dividend increase, Acadia expects to maintain its historically conservative payout ratio for 2005. Multiple External Growth Initiatives Launched in 2004 Creating Multi-year Growth Potential - Second NY/Urban Infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. Redevelopment Acquired During Fourth Quarter Fund II - Formation of Second Acquisition Fund During 2004, Acadia launched its second discretionary acquisition fund, Acadia Strategic Opportunity Fund II, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Fund II") raising $300 million of committed discretionary capital, to acquire approximately $900 million of real estate assets on a leveraged basis. New York Urban/Infill Redevelopment Program Launched In the third quarter, the Company announced the launching of its New York Urban/Infill Redevelopment Program (through Fund II) with PA Associates with the acquisition of 400 East Fordham Road Fordham Road is a major street in The Bronx borough of New York City. It runs east-west from the Harlem River to Bronx Park. At its western extreme, it goes through the University Heights neighborhood. in The Bronx, NY. During the fourth quarter, Acadia announced its second urban infill project located in Pelham Noun 1. Pelham - a bit with a bar mouthpiece that is designed to combine a curb and snaffle bit - piece of metal held in horse's mouth by reins and used to control the horse while riding; "the horse was not accustomed to a bit" Manor, NY. The Company entered into a 95-year ground lease for a 16-acre site which will be redeveloped into a multi-anchor community retail center. Total costs to complete this redevelopment are estimated at $30 to $35 million. It is anticipated that both of these projects will earn an unleveraged yield in excess of 10% upon stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders . RCP Venture Formed - Mervyn's acquisition closed Acadia also formed the Retailer Controlled Property Venture ("RCP Venture") during 2004 with Klaff Realty, L.P. ("Klaff") and Klaff's long-time partner Lubert-Adler Management, Inc. for the purpose of making investments in surplus or underutilized properties owned or controlled by retailers. During the third quarter, Acadia completed its first investment through the RCP Venture. $23.2 million was invested by Funds I and II (of which approximately $5.0 million was the Company's share) into an affiliate of Lubert-Adler/Klaff, which is part of the investment consortium, along with Sun Capital Partners, Inc. and Cerberus Capital Management, L.P., that acquired the 257 store Mervyn's department store chain from the Target Corporation for $1.2 billion. Outlook - Earnings Guidance for 2005 On a fully diluted basis, the Company currently forecasts its 2005 FFO will range from $1.01 to $1.09 per share. 2005 earnings per share is expected to range from $0.46 to $0.54. While other factors may impact earnings, Acadia's 2005 earnings guidance is based on the following assumptions: - Same Property Occupancy and NOI The Company's same property portfolio (including joint venture properties on a pro-rata basis) is expected to experience stable growth of approximately 3% to 4% for 2005 with expected portfolio occupancy increasing approximately 1% over 2004. This may be offset by the impact of potential tenant credit issues for which the Company is forecasting reserves ranging from $0.01 to $0.03. - Acquisitions The Company expects to generate $0.02 to $0.06 of FFO from external growth initiatives. The low end of this guidance should be achieved solely from completed transactions and identified investments expected to close during the first quarter of 2005. - Fee Income and General and Administrative Expense Fee income is projected to increase primarily as a result of a full year of asset management fees from Fund II together with other fees. The increase in fees is expected to be offset by a related increase in general and administrative expenses, as well as additional Sarbanes- Oxley related costs. These activities are expected to provide $0.00 to $0.02 of FFO growth. The following is a reconciliation of the calculation of FFO per diluted share and earnings per diluted share:
Guidance Range for 2005 Low High
----------------------- ---------------
Earnings per diluted share $0.46 $0.54
Depreciation of real estate and amortization
of leasing costs:
Wholly owned and consolidated partnerships 0.47 0.47
Unconsolidated partnerships 0.08 0.08
--------------
Funds from operations $1.01 $1.09
==============
Management Comments Commenting on the results for the quarter and year, Kenneth Bernstein, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "We are quite pleased with our fourth quarter and full year performance. In 2004, our team was successful in driving the three key components of our business plan. First, we continued to enhance the value of our core portfolio, driving our occupancy to a five-year high while also improving the quality of our cash flows through redevelopment and selective disposition. Second, we further enhanced the strength and flexibility of our balance sheet. At year end our debt to total market cap was 30% and our fixed-charge coverage ratio Fixed-Charge Coverage Ratio A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following: was 3.2 times. Our dividend payout ratio for the year was healthy at 66% even after raising our dividend a cumulative 44% over three years. Third, we continued to expand our highly opportunistic but disciplined acquisition program with the formation of Fund II and the launching of the RCP Venture and the New York Urban/Infill Redevelopment Program. These initiatives should provide a highly accretive pipeline, which should help drive our growth over the next several years. Looking ahead, the fundamentals of our business plan remain sound and compelling. The potential for internal growth through redevelopments coupled with a strong balance sheet and an exciting external growth platform should enable us to continue to create strong shareholder value going forward." Investor Conference Call Kenneth Bernstein, President and CEO, and Michael Nelsen, Sr. Vice President and CFO See Chief Financial Officer. , will conduct a conference call February 28, 2005 at 2:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. to review the Company's earnings and operating results. The live conference call can be accessed by dialing 888-339-2688 (internationally 617-847-3007). There is no passcode for the live call. The call will also be webcast and can be accessed in a listen-only mode at Acadia's web site at www.acadiarealty.com. If you are unable to participate during the live webcast, the call will be archived and available on Acadia's website. Alternatively, to access the replay by phone, dial 888-286-8010 (internationally 617-801-6888). The replay passcode will be 48929829. The phone replay will be available through Sunday, March 6th, 2005. Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into which are anchored by grocery and value-oriented retail. Acadia currently owns (or has interests in) and operates 69 properties totaling approximately 9.6 million square feet, located primarily in the Northeast, Mid-Atlantic and Midwest United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Certain matters in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this document. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. The Company also refers you to the documents filed by the Company, from time to time, with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties. EBITDA is a widely used financial measure in many industries, including the REIT industry, and is presented to assist investors and analysts in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing computing - computer various financial ratios as a measure of operational performance. The Company computes EBITDA as the sum of net income before extraordinary items plus interest expense, depreciation, income taxes and amortization, less any gains (losses)(including impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges) on the sale of income producing properties. The Company's method of calculating EBITDA may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDA does not represent cash generated from operations as defined by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Refer to the Company's Financial and Operating Reporting Supplement for the quarter as posted on its website and included in the Company's filing on Form 8K with the Securities and Exchange Commission for a reconciliation of EBITDA. See the notes to the attached financial tables for a further discussion of the Company's use of FFO. For more information visit Acadia Realty Trust's Web site at www.acadiarealty.com
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2004 and 2003
(dollars in thousands, except per share data)
STATEMENTS OF INCOME
For the quarters For the years
ended December 31, ended December 31,
Revenues 2004 2003 2004 2003
---------------------------------------
Minimum rents $13,063 $ 12,485 $51,469 $ 48,912
Percentage rents 385 450 952 988
Expense reimbursements 3,404 3,827 13,350 13,222
Other property income 144 266 643 748
Management fee income 1,663 540 4,763 1,971
Interest income 556 144 1,469 788
Other -- -- 210 1,218
---------------------------------------
Total revenues 19,215 17,712 72,856 67,847
---------------------------------------
Operating expenses
Property operating 3,528 4,332 14,908 14,726
Real estate taxes 2,379 2,418 9,025 8,469
General and administrative 2,993 2,803 10,578 10,734
Depreciation and amortization 4,108 6,504 15,650 17,374
---------------------------------------
Total operating expenses 13,008 16,057 50,161 51,303
---------------------------------------
Operating income 6,207 1,655 22,695 16,544
Equity in earnings of
unconsolidated partnerships 264 634 1,797 2,411
Interest expense (2,817) (2,500) (10,336) (9,954)
Gain on sale -- 932 1,187
Minority interest (199) (46) (1,197) (1,433)
---------------------------------------
Income (loss) from continuing
operations 3,455 (257) 13,891 8,755
---------------------------------------
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2004 and 2003
(dollars in thousands, except per share data)
STATEMENTS OF INCOME (continued)
For the quarters For the years
ended December 31, ended December 31,
2004 2003 2004 2003
---------------------------------------
Discontinued operations:
Operating income (loss) from
discontinued operations $ 10 $ (229) $ (886) $ (988)
Gain on sale of property 6,696 -- 6,696 --
Minority interest (85) 9 (116) 86
---------------------------------------
Income (loss) from discontinued
operations 6,621 (220) 5,694 (902)
---------------------------------------
Net income (loss) $10,076 $ (477) $19,585 $ 7,853
=======================================
Net income (loss) per Common
Share - Basic
Net income (loss) per Common
Share - Continuing operations $ .11 $ (.01) $ .47 $ .33
Net income (loss) per Common
Share - Discontinued
operations .22 (.01) .20 (.03)
---------------------------------------
Net income (loss) per Common
Share $ .33 $ (.02) $ .67 $ .30
=======================================
Weighted average Common Shares 30,666 27,432 29,341 26,640
=======================================
Net income (loss) per Common
Share - Diluted (1)
Net income (loss) per Common
Share - Continuing operations $ .11 $ (.01) $ .46 $ .32
Net income (loss) per Common
Share - Discontinued
operations .21 (.01) .19 (.03)
---------------------------------------
Net income (loss) per Common
Share $ .32 $ (.02) $ .65 $ .29
---------------------------------------
Weighted average Common Shares 31,646 28,306 29,912 27,230
=======================================
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Years ended December 31, 2004 and 2003
(dollars in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (2)
For the quarters For the years
ended December 31, ended December 31,
2004 2003 2004 2003
---------------------------------------
Net income (loss) $10,076 $ (477) $19,585 $ 7,853
Depreciation of real estate and
amortization of leasing costs:
Wholly owned and
consolidated partnerships 3,739 6,416 14,411 16,957
Unconsolidated partnerships 622 550 2,329 2,107
Income attributable to minority
interest in Operating
Partnership 131 (11) 375 747
Gain on sale of properties (6,696) -- (6,696) --
---------------------------------------
Funds from operations - Basic 7,872 6,478 30,004 27,664
Distributions - Preferred OP
Units 88 36 335 185
---------------------------------------
Funds from operations - Diluted 7,960 6,514 30,339 27,849
Funds from operations -
Discontinued operations 74 (101) (461) (455)
---------------------------------------
Funds from operations -
Continuing operations $ 7,886 $ 6,615 $30,800 $ 28,304
=======================================
Funds from operations per share
- Basic
Weighted average Common Shares
and OP Units (3) 31,058 28,572 29,939 28,508
=======================================
Funds from operations per share
- Continuing operations $ .25 $ .23 $ 1.02 $ .99
Funds from operations per share
- Discontinued operations -- -- (.02) (.02)
---------------------------------------
Funds from operations per
share $ .25 $ .23 $ 1.00 $ .97
=======================================
Funds from operations per share
- Diluted
Weighted average Common Shares
and OP Units (3) 32,038 29,741 31,010 29,392
=======================================
Funds from operations per share
- Continuing operations $ .25 $ .22 $ .99 $ .96
Funds from operations per share
- Discontinued operations -- -- (.01) (.01)
=======================================
Funds from operations per
share $ .25 $ .22 $ .98 $ .95
=======================================
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
As of December 31, 2004 and 2003
(dollars in thousands, except per share data)
SELECTED BALANCE SHEET INFORMATION
December 31, December 31,
2004 2003
---- ----
Cash and cash equivalents $ 13,499 $ 14,663
Rental property, at cost 422,177 414,138
Total assets 396,343 388,184
Mortgage notes payable 153,361 174,847
Total liabilities 171,868 208,765
Fixed rate debt: (4) 146,407 140,836
% of outstanding debt 95 % 81 %
Weighted average interest rate 6.1 % 6.4 %
Variable rate debt (4) $ 6,954 $ 34,011
% of outstanding debt 5 % 19 %
Weighted average interest rate 3.8 % 2.9 %
Total weighted average interest rate 6.0 % 5.8 %
Notes: (1) Reflects the potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. (2) The Company considers funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") to be an appropriate supplemental disclosure of operating performance for an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated Depreciated may refer to:
Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. (3) In addition to the weighted average Common Shares outstanding, diluted FFO also assumes full conversion of a weighted average 392 and 1,140 OP Units into Common Shares for the quarters ended December 31, 2004 and 2003, respectively and 598 and 1,868 OP Units into Common Shares for the years ended December 31, 2004 and 2003, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 523 and 295 Common Shares for the quarters ended December 31, 2004 and 2003, respectively and 500 and 295 Common Shares for the years ended December 31, 2004 and 2003, respectively. (4) Fixed-rate debt includes $86,156 of notional no·tion·al adj. 1. Of, containing, or being a notion; mental or imaginary. 2. Speculative or theoretical. 3. principal fixed through swap transactions. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , variable-rate debt excludes this amount. |
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