Alexander Haagen announces year-end results and commencement of $29 million in redevelopment projects.MANHATTAN BEACH Manhattan Beach, city (1990 pop. 32,063), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1912. It is a residential and beach community with an oil refinery and nearby factories that produce transportation and electrical equipment, computers, and pottery. , Calif.--(BUSINESS WIRE)--Feb. 18, 1997-- Alexander Haagen Properties Inc. (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :ACH (Automated Clearing House) A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments to ), a real estate investment trust, Tuesday Tuesday: see week. announced fourth-quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. (ending Dec. 31, 1996) operating results. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the year increased to $87.7 million from $81.3 million for 1995, an increase of 8 percent. 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 FFO See: Funds from operations ) on a primary basis increased to $20.9 million, or $1.37 per share, compared with $17.1 million, or $1.31 per share, an increase of 5 percent. FFO 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 increased to $34.8 million, or $1.41 per share, compared with $30.9 million, or $1.39 per share, an increase of 2 percent. Operating revenues for the quarter increased to $23.6 million, from $20.9 million for the same quarter of 1995, an increase of 13 percent. FFO on a primary basis met company expectations at $5.6 million, or 34 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $4.6 million, or 35 cents per share. On a fully diluted basis (assuming conversion of the debentures), FFO for the quarter was $9.1 million, or 35 cents per share, compared with $8.1 million, or 36 cents per share. Funds Available for Distribution (FAD FAD - ["FAD, A Simple and Powerful Database Language", F. Bancilon et al, Proc 13th Intl Conf on VLDB, Brighton, England, Sep 1987]. ) for the year, on a primary basis, increased to $21.9 million, or $1.44 per share from $16.8 million, or $1.29 per share, an increase of 11 percent. FAD for the year ended Dec. 31, 1996, was equivalent to the dividend of 36 cents per share per quarter. FAD for the fourth quarter increased by 3 percent to $5.8 million, or 36 cents per share, from $4.5 million, or 35 cents per share, in the fourth quarter of 1995. The increases in revenues, FFO and FAD were caused by increased income from the company's properties. However, improvements in the economic performance of the properties were mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the company recording reserves to offset the straight-lining of contractual rent increases. During the year ended Dec. 31, 1996, the company recorded no straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. rental revenue, whereas in 1995 straight-line rental revenue of $1.3 million, or 8 cents per share, was recorded. During the first quarter the company also adopted the new definition of FFO promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. by the National Association of Real Estate Investment Trusts. The impact of the new definition was to decrease primary FFO by 14 cents per share and fully diluted FFO by 8 cents per share for the years ended Dec. 31, 1996, and 1995, as a result of amortization of deferred financing costs. FFO for 1995 has been restated to conform with the new definition. Such changes are non-cash and have no impact on FAD. In the fourth quarter of 1996 the company commenced approximately $29 million in redevelopment projects at its properties. Alexander Haagen, chairman and chief executive officer, noted that the company commenced a $14 million redevelopment of the Medford Medford. 1 City (1990 pop. 57,407), Middlesex co., E Mass., a residential and industrial suburb of Boston, on the Mystic River; settled 1630, inc. as a city 1892. Wax, paper, clothing, and furniture are among its products. Center, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , and a $15 million redevelopment of its Covina Town Square, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Haagen noted, "These projects should be completed by the first quarter of 1998 and will generate significant growth for the company, while repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. the projects for the turn of the century." In connection with the commencement of the Covina project, the company recorded a fourth-quarter non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $2.1 million to write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. the net book value of a building which has been demolished de·mol·ish tr.v. de·mol·ished, de·mol·ish·ing, de·mol·ish·es 1. To tear down completely; raze. 2. To do away with completely; put an end to. 3. . Net loss for the year ended Dec. 31, 1996, was $2 million, or 17 cents per share, compared with $2.4 million, or 20 cents per share, for 1995. Net loss for the year ended Dec. 31, 1996, includes net non-recurring charges aggregating $6.6 million. Leased space at the company's properties increased to 95.8 percent at Dec. 31, 1996, from 95.3 percent at Dec. 31, 1995. Alexander Haagen Properties, a fully integrated, self-managed real estate investment trust, is a leading developer, owner and manager of retail 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 , primarily in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . The company owns or controls 38 properties, including two regional malls, eight promotional/power centers, 14 neighborhood/community shopping centers and 14 single-tenant facilities. -0-
Alexander Haagen Properties Inc.
Financial Highlights - Dec. 31, 1996
Numbers in thousands, except per-share amounts
Three Months ended Dec. 31 Incr.
1996 1995/a %
Revenues $23,642 $20,904 13%
Interest 8,847 8,224
Property Operating Costs 7,626 6,837
Depreciation and amortization 4,373 5,333
General and administrative 1,401 1,310
Total expenses 22,247 21,704
Income (loss) before
non-recurring and other items 1,395 (800)
Non-recurring gain (loss) on
sales of properties (96) --
Non-recurring charge --
straight-line rents -- --
Non-recurring charge --
Covina building demolition (2,144) --
Equity in income (loss) of
management company (16) 200
Minority Interests 152 3
Net loss (709) (597)
Adjustments to reconcile
Net Loss to FFO:
Non-recurring items 2,240 --
Depreciation of real property 4,359 5,333
Minority Interests (297) (122)
Funds from Operations, Primary/a 5,593 4,614 21%
Adjustments to reconcile Primary and
Fully Diluted FFO:
Debenture interest 3,143 3,142
Amortization of deferred financing
costs -- debentures 324 326
Funds from Operations,
Fully Diluted/a /b $ 9,060 $ 8,082 12%
Funds Available for Distribution:
Funds from Operations, Primary $ 5,593 $ 4,614 21%
Adjustments to reconcile Primary
FFO to Primary FAD:
Amortization of deferred financing
costs -- secured debt 198 188
Amortization of deferred financing
costs -- debentures 324 326
Non-revenue generating capital
expenditures (280) (583)
Straight-line rent recorded in
1995 -- --
Funds available for Distribution,
Primary $ 5,835 $ 4,545 28%
Per share:
Funds from Operations, Primary $ 0.34 $ 0.35 -3%
Funds from Operations,
Fully Diluted/b $ 0.35 $ 0.36 -2%
Funds Available for
Distribution, Primary $ 0.36 $ 0.35 3%
Dividend $ 0.36 $ 0.36 n/a
Net loss $ (0.06) $ (0.05) n/a
-0-
Year ended Dec. 31 Incr.
1996 1995/a %
Revenues $87,719 $81,323 8%
Interest 35,516 32,304
Property Operating Costs 25,633 26,059
Depreciation and amortization 17,118 20,018
General and administrative 5,064 5,334
Total expenses 83,331 83,715
Income (loss) before
non-recurring and other items 4,388 (2,392)
Non-recurring gain (loss) on
sales of properties 2,406 --
Non-recurring charge --
straight-line rents (6,900) --
Non-recurring charge --
Covina building demolition (2,144) --
Equity in income (loss) of
management company -- 4
Minority Interests 245 (20)
Net loss (2,005) (2,408)
Adjustments to reconcile
Net Loss to FFO:
Non-recurring items 6,638 --
Depreciation of real property 17,062 20,018
Minority Interests (802) (535)
Funds from Operations, Primary/a 20,893 17,075 22%
Adjustments to reconcile Primary and
Fully Diluted FFO:
Debenture interest 12,573 12,570
Amortization of deferred financing
costs -- debentures 1,299 1,298
Funds from Operations,
Fully Diluted/a /b $34,765 $30,943 12%
Funds Available for Distribution:
Funds from Operations, Primary $20,893 $17,075 22%
Adjustments to reconcile Primary
FFO to Primary FAD:
Amortization of deferred financing
costs -- secured debt 756 563
Amortization of deferred financing
costs -- debentures 1,299 1,298
Non-revenue generating capital
expenditures (1,052) (863)
Straight-line rent recorded in
1995 -- (1,266)
Funds available for Distribution,
Primary $21,896 $16,807 30%
Per share:
Funds from Operations, Primary $ 1.37 $ 1.31 5%
Funds from Operations,
Fully Diluted/b $ 1.41 $ 1.39 2%
Funds Available for
Distribution, Primary $ 1.44 $ 1.29 11%
Dividend $ 1.44 $ 1.44 n/a
Net loss $ (0.17) $ (0.20) n/a
Notes:
(a) 1995 Funds from Operations (FF0) have been restated to conform
with the new definition of FFO
(b) Fully diluted information assumes the conversion of the
company's debentures
CONTACT: Alexander Haagen Properties Inc., Manhattan Beach Fred Bruning/Stuart Gulland, 310/546-4520 |
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