AmeriVest Announces Performance and Operating Results for Second Quarter Ended June 30, 2005.DENVER Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- 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 June 30, 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 second quarter of 2005 was approximately $1,371,000, or $0.06 per share, compared with approximately $2,797,000, or $0.12 per share, for the same period in 2004. The Company reported a net loss for the second quarter of 2005 of approximately $3,091,000, or $0.13 per share, compared with a loss of approximately $547,600, or $0.02 per share, for the same period of 2004. For the six months ended June 30, 2005, FFO totaled approximately $3,770,000, or $0.16 per share, compared to approximately $4,674,000, or $0.22 per share for the same period in 2004. The net loss recognized by the Company for the same period was approximately $5,675,000, or $0.24 per share in 2005, compared to approximately $922,600, or $0.04 per share in 2004. Rental revenue for the second quarter of 2005 increased 11% over the prior year period due primarily to the Company's 2004 acquisitions. The second quarter 2005 results include the operating impact resulting from the acquisitions of 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 second quarter of 2005 increased by 18.4% 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 $498,500, or 51%, for the second quarter of 2005 compared with the same period in 2004. The second quarter of 2005 included approximately $285,400 in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when for William Atkins William Atkins may to refer to:
The second quarter results continue to reflect the effect of rate roll-downs in several of the Company's markets together with the loss of a 37,000 square foot tenant at the Company's Financial Plaza property, partially offset by new leasing which commenced during the quarter. Occupancy increased to 89.4% at June 30, 2005, with approximately 66,000 square feet of leases commencing later in the year. Signed leases do not impact revenues as the Company does not recognize revenue until the tenant has moved in and the lease has commenced, although the leased space is included in the occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) . Second Quarter Highlights and Subsequent Events --On April 25, 2005, the Company announced that William Atkins, Chairman and Chief Executive Officer, would resign as 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. of the Company on April 30, 2005. Charles Knight Charles Knight may 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. --On June 6, 2005, the Company announced an 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. loan agreement on its secured credit facility. The amendment eliminated the July 1, 2005 payment requirement and extended the maturity date for the secured facility from November 12, 2005 to January 31, 2006. --On June 27, 2005, the Company announced that the Board of Directors had continued the suspension of its common stock dividend for the second quarter of 2005. --On June 30, 2005, Dean Foods Company ("Dean Foods") exercised its one-time right to further extend its lease for 120,607 rentable square feet of space 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. for an additional four years. Effective January 1, 2006, Dean Foods will pay $17.75 per rentable square foot, plus electricity and parking, until their lease expires on December 31, 2010. The change in lease term and rate will negatively impact the Company's rental revenue by approximately $150,000 per quarter for the remainder of 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. The Board has not precluded any option and is actively pursuing a number of these alternative transactions; however, there can be no assurance that any such transaction will be completed, or if completed, that any proceeds will be available to shareholders. Supplemental Operating and Financial Information The Supplemental Operating and Financial Information for the second 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 August 5, 2005, beginning at 11:30 am MDT MDT abbr. Mountain Daylight Time MDT (in the US and Canada) Mountain Daylight Time MDT n abbr (US) (= mountain daylight time) → (1:30 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , 12:30 pm CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT and 10:30 am PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) to discuss its second 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 August 10, 2005 by calling 800-642-1687 or for participants outside North America, please call 706-645-9291 and enter conference ID# 7767925. 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 June 30, Six months ended June 30,
--------------------------- -------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Real Estate
Operating Revenue
Rental revenue $12,241,980 $11,015,384 $24,881,200 $20,224,258
Real Estate
Operating Expenses
Property
operating
expenses -
Operating
expenses 3,515,498 3,102,386 6,824,423 5,936,053
Real estate
taxes 1,840,287 1,419,762 3,664,361 2,599,630
General and
administrative
expenses 1,482,787 984,265 2,798,600 1,916,814
Interest expense 3,913,586 2,722,646 7,739,673 5,334,900
Depreciation and
amortization
expense 4,700,779 3,364,817 9,484,768 6,061,913
----------- ----------- ----------- -----------
Total
operating
expenses 15,452,937 11,593,876 30,511,825 21,849,310
----------- ----------- ----------- -----------
Loss From
Continuing
Operations (3,210,957) (578,492) (5,630,625) (1,625,052)
Other Income/(Loss)
Interest income 7,265 10,893 18,004 26,256
Equity in loss of
affiliate - - - (18,076)
Minority interest 112,867 61,118 200,949 61,118
----------- ----------- ----------- -----------
Total other
income 120,132 72,011 218,953 69,298
----------- ----------- ----------- -----------
Loss Before
Discontinued
Operations (3,090,825) (506,481) (5,411,672) (1,555,754)
Net
Earnings/(Loss)
from Discontinued
Operations - (41,107) (263,173) 633,155
----------- ----------- ----------- -----------
Net Loss $(3,090,825) $ (547,588) $(5,674,845) $ (922,599)
=========== =========== =========== ===========
Loss Per Share
Basic and Diluted $ (0.13) $ (0.02) $ (0.24) $ (0.04)
=========== =========== =========== ===========
Weighted Average
Common Shares
Outstanding
Basic and Diluted
(earnings) 24,046,982 23,898,957 24,029,425 20,733,185
=========== =========== =========== ===========
Diluted (FFO) 24,093,637 24,011,520 24,092,546 20,855,351
=========== =========== =========== ===========
Reconciliation to
Funds from
Operations (FFO):
Net Loss $(3,090,825) $ (547,588) $(5,674,845) $ (922,599)
Depreciation and
amortization on
real estate
investments 4,461,909 3,344,253 9,206,565 6,171,236
Loss/(gain) on
disposition of
depreciated real
estate - - 21,804 (574,276)
Loan costs
associated with
the disposition
of real estate - - 215,993 -
----------- ----------- ----------- -----------
FFO $ 1,371,084 $ 2,796,665 $ 3,769,517 $ 4,674,361
=========== =========== =========== ===========
Funds from
Operations per
share - diluted $ 0.06 $ 0.12 $ 0.16 $ 0.22
=========== =========== =========== ===========
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) in the October
1999 White Paper (amended in April 2002), to be an appropriate measure
of performance for an equity REIT, for the reasons, and subject to the
qualifications, specified in the paragraph entitled "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)
June 30, December 31,
2005 2004
------------ ------------
Selected Balance Sheet Information:
Assets at cost $356,171,333 $374,336,725
Less: accumulated depreciation and
amortization (33,287,211) (26,383,036)
------------ ------------
Total assets $322,884,122 $347,953,689
Total mortgage loans, notes payable and
unsecured line of credit $235,677,668 $236,586,391
Total shareholders' equity $ 88,171,127 $ 93,469,915
Common shares issued and outstanding 24,062,639 23,982,233
Selected Property Information:
Number of operating properties owned 17 30
Total rentable square feet 2,508,066 2,732,957
Occupancy 89.4% 88.3%
Selected Stock Information:
Common share price (as of period end) $ 4.17 $ 6.40
Equity market capitalization $100,341,205 $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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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 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. 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 NAREIT National Association of Real Estate Investment Trusts ), 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. |
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