AmeriVest Announces Performance and Operating Results for First Quarter Ended March 31, 2005.DENVER -- AmeriVest Properties Inc. (AMEX AMEX See: American Stock Exchange : AMV AMV Anime Music Video AMV Avian Myeloblastosis Virus AMV Alfalfa Mosaic Virus AMV Army Motor Vehicle AMV Assisted Mechanical Ventilation AMV Armored Maintenance Vehicle AMV Accredited Meter Verifier AMV Annulus Master Valve ) reported results today for the quarter ended March 31, 2005. 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 ) for the first quarter of 2005 was approximately $2,398,000 or $0.10 per 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. share, compared with approximately $1,878,000, or $0.11 per diluted share, for the same period in 2004. The Company reported a net loss for the first quarter of 2005 of approximately $2,584,000, or $0.11 per share, compared with a loss of approximately $375,000, or $0.02 per share, for the same period of 2004. First quarter results were negatively impacted by the write off of deferred financing costs associated with the Texas State Buildings which were disposed of in March 2005, as well as Sarbanes-Oxley compliance costs. See the Summary Financial Information for a reconciliation of FFO and FFO per share to net loss and loss per share, the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures. Rental revenue for the first quarter of 2005 increased 37% over the prior year period due primarily to the Company's growth. While revenues from properties acquired prior to 2003 declined year over year, revenues from our 2003 acquisitions more than offset that decline; however, most of the growth in revenues is attributable to our 2004 acquisitions. The first quarter 2005 results include operations from the acquisition of Camelback cam·el·back adj. Shaped like a hump or an arching curve. n. New Orleans A narrow house with one story in front and two in the rear. See Regional Note at beignet. Lakes (March 2004), Hackberry hackberry: see elm. View (May 2004), Parkway Centre III (September 2004), and Hampton Court (November 2004). Property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the first quarter of 2005 increased by 28% over the same period in 2004 due primarily to the Company's growth and increases in property taxes and utility costs. General and administrative expenses increased approximately $383,000, or 41%, for the first quarter of 2005 compared with the same period in 2004. This increase included approximately $335,000 in expenses related to the Company's efforts to comply with Sarbanes-Oxley requirements, including increases in audit and consulting fees and related expenses. During the first quarter of 2005, the Company also recognized approximately $144,000 of costs related to the continuing review of strategic alternatives. First Quarter Highlights and Subsequent Events --On March 3, 2005, the Company announced the completion of a Deed-in-Lieu Agreement to return 13 non-core properties in Texas to the lender. The properties were leased primarily to various agencies of the State of Texas and were located in 12 Texas cities. The Company recorded a loss of approximately $22,000 at disposition and wrote off unamortized deferred financing costs of approximately $216,000. --On March 15, 2005, AmeriVest amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its loan facilities to provide liquidity to the company during its strategic alternative review and to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such and change certain covenants to bring the Company into compliance. This amendment also imposed certain previously disclosed additional paydown requirements and accelerated the maturity date of the unsecured facility from November 12, 2007, to April 1, 2006, which increased the amortization of loan fees, a non-cash interest expense, by approximately $51,000 this quarter. --On March 21, 2005, the Company announced the amendment and extension of the Dean Foods Company lease for 120,607 rentable square feet in the Chateau Plaza building in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . Under the terms of the amendment, the lease is extended for at least a one-year term commencing January 1, 2006, at a base rate of $19.75 per rentable square foot, plus electricity and parking. The change in lease term and rate negatively impacted the Company's rental revenue this quarter by approximately $11,000 in straight-line rent adjustment for the period March 15 through March 31. --On April 25, 2005, the Company announced that William Atkins William Atkins may to refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , became the President and CEO effective May 1, 2005. Update on Strategic Alternative Review Since December 2004, the Board of Directors of the Company has been exploring and evaluating various strategic options for AmeriVest, including the identification of an institutional capital partner to assist in the Company's growth, a sale or recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. of all or a portion of the Company's properties, the potential sale or merger of the Company, and other possible transactions designed to enhance shareholder value. The Board has not precluded any option and is continuing to explore a range of alternatives, including various strategies to recapitalize re·cap·i·tal·ize tr.v. re·cap·i·tal·ized, re·cap·i·tal·iz·ing, re·cap·i·tal·iz·es To change the capital structure of (a corporation). re·cap and strengthen its balance sheet, which may include raising additional debt or equity capital, selling or refinancing Refinancing An extension and/or increase in amount of existing debt. certain of the Company's properties, acquiring additional assets individually or in portfolio transactions, operational improvements and reduction of general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . All of these measures are designed to stabilize stabilize See peg. the Company and position it for continued growth. Supplemental Operating and Financial Information The Supplemental Operating and Financial Information for the first quarter of 2005 is available online at the Company's website, www.amvproperties.com by clicking the Investor Relations Investor relations The process by which the corporation communicates with its investors. link and then the Supplemental Information link. Conference Call Information The Company will hold an investor/analyst conference call on May 5, 2005, beginning at 11:30 a.m. MT (1:30 p.m. ET, 12:30 p.m. CT and 10:30 a.m. PT) to discuss its first quarter results. To participate in the conference call, please dial 800-548-8725 approximately ten minutes before the scheduled start of the call. If you are calling from outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , please call 706-634-5929. An audio replay will be available two hours after the completion of the conference call until May 10, 2005, by calling 800-642-1687 or for participants outside North America, please call 706-645-9291 and enter conference ID# 3657835. A live web cast of the conference call will be available at www.amvproperties.com. You must have Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. installed on your computer in order to listen to the web cast, which may be downloaded for free at the website listed above. Company Information AmeriVest Properties Inc., with its principal office in Denver, Colorado, provides Smart Space for Small Business(SM) in Denver, Phoenix, Dallas, and Indianapolis through the acquisition, 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. and operation of multi-tenant office buildings in those markets. To receive AmeriVest's latest news and information, visit our website at www.amvproperties.com. In addition to historical information, this press release contains 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. and information under the federal securities laws. These statements are based on expectations, estimates and projections about the industry and markets in which AmeriVest operates, management's beliefs and assumptions made by management. While AmeriVest management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release. In particular, the factors that could cause actual operating results to differ materially include, without limitation, continued qualification as a real estate investment trust, the effects of general and local economic and market conditions, competition, regulatory changes, the ability to enter into new leases or renew leases on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, development and construction costs, insurance risks, the costs and availability of financing, potential liability relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental matters and liquidity of real estate investments and other risks and uncertainties detailed in AmeriVest's 2004 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 any amendments thereof and from time to time in the Company's filings with the Securities and Exchange Commission.
AMERIVEST PROPERTIES INC.
Summary Financial Information
(unaudited)
Three months ended
March 31,
-------------------------
Selected Income Statement Information: 2005 2004
------------ -----------
Real Estate Operating Revenue
Rental revenue $12,639,220 $9,208,874
Real Estate Operating Expenses
Property operating expenses -
Operating expenses 3,308,925 2,833,667
Real estate taxes 1,824,074 1,179,868
General and administrative expenses 1,315,813 932,549
Interest expense 3,826,087 2,612,254
Depreciation and amortization expense 4,783,989 2,697,096
------------ -----------
Total operating expenses 15,058,888 10,255,434
------------ -----------
Loss From Continuing Operations (2,419,668) (1,046,560)
------------ -----------
Other Income/(Loss)
Interest income 10,739 15,363
Equity in loss of affiliate - (18,076)
Minority interest 88,082 -
------------ -----------
Total other income/(loss) 98,821 (2,713)
------------ -----------
Loss Before Discontinued Operations (2,320,847) (1,049,273)
Net Earnings/(Loss) from Discontinued
Operations (263,173) 674,262
------------ -----------
Net Loss $(2,584,020) $(375,011)
============ ===========
Loss Per Share
Basic and Diluted $(0.11) $(0.02)
============ ===========
Reconciliation to Funds from Operations
(FFO):
Net loss $(2,584,020) $(375,011)
Depreciation and amortization expense 4,744,656 2,826,983
Loss on sale of depreciated real estate 21,804 (574,276)
Deferred financing costs associated
with the disposition of real estate 215,993 -
------------ -----------
FFO $2,398,433 $1,877,696
============ ===========
Funds from Operations per share - diluted $0.10 $0.11
============ ===========
Weighted Average Common Shares Outstanding
Basic 24,011,672 17,567,414
============ ===========
Diluted 24,098,003 17,721,219
============ ===========
Funds from operations (FFO) is a non-GAAP financial measure. We believe FFO, as defined by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ) in the October 1999 White Paper (amended in April 2002), to be an appropriate measure of 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. , for the reasons, and subject to the qualifications, specified in the paragraph entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Non-GAAP Financial Measures" below. The above summary financial information table reflects the reconciliation of FFO from net income or (loss) and a comparison to earnings or (loss) per share, the most directly comparable GAAP measure, for the periods presented.
AMERIVEST PROPERTIES INC.
Summary Financial Information (continued)
(unaudited)
March 31, December 31,
2005 2004
------------- -------------
Selected Balance Sheet Information:
Assets at cost $367,411,331 $374,336,725
Less: accumulated depreciation and
amortization (28,706,186) (26,383,036)
------------- -------------
Total assets $338,705,145 $347,953,689
Total mortgage loans, notes payable and
unsecured line of credit $234,442,623 $236,586,391
Total shareholders' equity $91,005,042 $93,469,915
Common shares issued and outstanding 24,022,597 23,982,233
Selected Property Information:
Number of operating properties owned 17 30
Total rentable square feet 2,508,115 2,732,957
Occupancy 89.0% 88.3%
Selected Stock Information:
Common share price (as of period end) $5.18 $6.40
Equity market capitalization $124,437,052 $153,486,291
Common share annualized dividends N/A $0.52
Common share annualized dividend
yield (as of period end) N/A 8.1%
Non-GAAP Financial Measures. Funds from operations (FFO) is a non-GAAP financial measure. FFO is defined as net income or loss, 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 generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP), excluding gains or losses from sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We believe that FFO is helpful to investors as a measure of the performance of an equity REIT because, it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a more meaningful and accurate indication of our performance. We compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. FFO does not represent cash generated from operating activities determined by GAAP and should not be considered as an alternative to net income or loss (determined in accordance with GAAP) as an indication of our financial performance or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. FFO may include funds that may not be available for our management's discretionary use due to requirements to conserve funds for capital expenditures, debt repayments, property acquisitions and other commitments and uncertainties. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion