Arden Realty, Inc. Reports First Quarter 2000 Earnings.Business/Real Estate Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--April 24, 2000 Arden Ar·den An unincorporated city of north-central California, a residential suburb of Sacramento. Population: 101,400. Arden, Elizabeth 1884?-1966. 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. , Inc. (NYSE NYSE See: New York Stock Exchange :ARI ARI Acute respiratory infection, see there ), a Los Angeles-based office real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ), today reported 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 2000 of $44.4 million or $.68 per share 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, compared with FFO of $41.8 million or $.64 per share on a fully diluted basis for the first quarter of 1999. Revenues for the first quarter of 2000 were $90.5 million, compared with $80.0 million for the first quarter of 1999. Net income for the first quarter of 2000 was $23.5 million, or $.37 per share on a fully diluted basis, compared with $24.4 million or $.39 per share on a fully diluted basis for the first quarter of 1999. Adjusting FFO by excluding the 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. rent adjustment and providing a reserve for recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. capital expenditures, tenant improvements and leasing commissions resulted in 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 first quarter of 2000 of $35.2 million or $.54 per share on a fully diluted basis, compared with FAD of $33.4 million or $.51 per share on a fully diluted basis for the first quarter of 1999. A dividend of $.465 per share was declared for the first quarter of 2000. Total debt was $1,083.1 million, representing approximately 43 percent of total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. at March 31, 2000. Financial schedules follow. A detailed analysis of the quarter's results can be obtained by viewing the Supplemental Information available in the Investor Information section (Financial Reports) of the Company's website at www.ardenrealty.com, or by calling the Company contact listed above. Arden Realty, Inc. is a self-administered, self-managed REIT which owns, manages, leases, develops, renovates and acquires commercial office properties located 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, . As of March 31, 2000, the Company's portfolio contained 142 properties and approximately 18.5 million square feet and three properties with approximately 700,000 square feet under development. Statements in this news release which are not historical may be deemed 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . Factors that could cause actual results to differ materially from the Company's expectations include the availability and cost of capital for future investments, competition within the industry, real estate and economic conditions, and other risks detailed from time to time in the Company's SEC filings.
ARDEN REALTY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2000 1999
(unaudited)
Assets
Investment in real estate:
Commercial properties $ 2,488,593 $ 2,453,370
Less accumulated
depreciation and amortization (176,545) (158,590)
2,312,048 2,294,780
Properties under development 210,514 183,349
Net investment in real estate 2,522,562 2,478,129
Cash and cash equivalents 2,501 7,056
Restricted cash 18,685 18,513
Rent and other receivables 11,486 11,785
Mortgage notes receivable,
net of discount 13,783 13,847
Deferred rent 25,330 23,932
Prepaid financing costs,
expenses and other assets, net 20,313 17,196
Total assets $ 2,614,660 $ 2,570,458
Liabilities and Stockholders' Equity
Mortgage loans payable $ 621,171 $ 740,806
Unsecured lines of credit 212,850 288,850
Unsecured senior notes,
net of discount 249,079 --
Accounts payable
and accrued expenses 28,181 34,482
Security deposits 18,074 16,073
Dividends payable 29,442 28,195
Total liabilities 1,158,797 1,108,406
Minority interest 86,133 86,294
Stockholders' equity:
Common stock 633 633
Additional paid-in capital 1,370,417 1,377,292
Notes and interest receivable
from officers-shareholders (1,320) (2,167)
Total stockholders' equity 1,369,730 1,375,758
Total liabilities and
stockholders' equity $ 2,614,660 $ 2,570,458
ARDEN REALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
For the Three Months Ended
March 31,
2000 1999
Revenue:
Revenues from rental operations:
Rent $ 77,513 $ 69,510
Tenant reimbursements 3,592 3,467
Parking, net of expenses 3,972 3,182
Other rental operations 4,601 3,177
Total rental revenue 89,678 79,336
Interest and other income 855 670
Total revenue 90,533 80,006
Expenses:
Property expenses:
Repairs and maintenance 8,402 7,670
Utilities 6,110 6,341
Real estate taxes 6,264 5,747
Insurance 1,041 982
Ground rent 198 181
Marketing and other 3,332 2,589
Total property expenses 25,347 23,510
General and administrative 1,821 1,496
Interest 17,852 13,183
Depreciation and amortization 20,147 16,215
Income before minority interest 25,366 25,602
Minority interest (1,875) (1,211)
Net income $ 23,491 $ 24,391
Net income per share:
Basic $ 0.37 $ 0.39
Diluted $ 0.37 $ 0.39
Weighted average common shares:
Basic 63,339 62,408
Diluted 63,414 62,501
ARDEN REALTY, INC.
CALCULATION OF FUNDS FROM OPERATIONS
AND FUNDS AVAILABLE FOR DISTRIBUTION
(in thousands, except per share amounts)
(unaudited)
For the Three Months Ended
March 31,
2000 1999
Funds From Operations:
Net income $ 23,491 $ 24,391
Plus-
Depreciation and amortization of
real estate assets 20,147 16,215
Minority interest 1,875 1,211
Less-Distributions on Preferred
Operating Partnership Units (1,078) --
Funds From Operations $ 44,435 $ 41,817
Funds Available for Distribution:
Funds From Operations $ 44,435 $ 41,817
Less-
Straight-line rent adjustment (1,398) (1,609)
Capital expenditure, tenant
improvement and leasing commission
reserve (7,794) (6,839)
Funds Available for Distribution $ 35,243 $ 33,369
Per share:
Funds From Operations - Diluted $ 0.68 $ 0.64
Funds Available for Distribution
- Diluted $ 0.54 $ 0.51
Distributions declared $ 0.465 $ 0.445
Weighted average shares and Operating
Partnership Units
outstanding - Diluted 65,564 65,602
The White Paper on Funds from Operations approved by the Board of Governors of NAREIT NAREIT National Association of Real Estate Investment Trusts in October October: see month. 1999 (the "White Paper") defines Funds from Operations as net income (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 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , excluding gains (or losses) from extraordinary items, as defined by GAAP, and gains and losses from sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. operating property plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Funds Available for Distribution is defined as FFO, excluding straight-line rent adjustments and less a reserve for capital expenditures, tenants improvements and leasing commissions. |
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