Arden Realty Inc. Reports Fourth Quarter 1999 Earnings.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Feb. 1, 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 fourth quarter of 1999 of $44.3 million or $.66 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 and $171.8 million or $2.60 per share on a fully diluted basis for the year ended December December: see month. 31, 1999, compared with FFO of $41.2 million or $.63 per share on a fully diluted basis for the fourth quarter of 1998 and $147.4 million or $2.38 per share on a fully diluted basis for the year ended December 31, 1998. Revenues for the fourth quarter of 1999 were $89.8 million and $340.7 million for the year ended December 31, 1999, compared with $79.7 million for the fourth quarter of 1998 and $284.6 million for the year ended December 31, 1998. Net income for the fourth quarter of 1999 was $23.7 million, or $.37 per share on a fully diluted basis and $96.6 million or $1.53 per share on a fully diluted basis for the year ended December 31, 1999, compared with $25.3 million or $.40 per share on a fully diluted basis for the fourth quarter of 1998 and $90.7 million or $1.54 per share on a fully diluted basis for the year ended December 31, 1998. 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 fourth quarter of 1999 of $35.5 million or $.53 per share on a fully diluted basis and $136.8 million or $2.07 per share on a fully diluted basis for the year ended December 31, 1999, compared with FAD of $32.8 million or $.50 per share on a fully diluted basis for the fourth quarter of 1998 and $117.7 million or $1.89 per share on a fully diluted basis for the year ended December 31, 1998. A dividend of $.445 per share was declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. for the fourth quarter of 1999. Total debt was $1,029.7 million, representing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 43% of total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. at December 31, 1999. 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 Web site at www.ardenrealty.com, or by calling the Company contact listed below. Arden Realty Inc. is a self-administered, self-managed REIT which acquires, develops, renovates, operates and leases 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 December 31, 1999, the Company's portfolio contained 142 properties and approximately 18.5 million square feet and two properties with approximately 400,000 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.
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ARDEN REALTY INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
1999 1998
(unaudited)
Assets
Investment in real estate:
Commercial properties $ 2,405,199 $ 2,173,194
Less accumulated depreciation (146,384) (84,312)
----------- -----------
2,258,815 2,088,882
Properties under development 183,349 150,716
----------- -----------
Net investment in real
estate 2,442,164 2,239,598
Cash and cash equivalents 7,056 4,578
Restricted cash 18,513 12,409
Rent and other receivables 11,785 9,024
Mortgage notes receivable,
net of discount 13,847 14,329
Deferred rent 23,932 17,004
Prepaid financing and leasing
costs, net of amortization 50,148 31,230
Prepaid expenses and other assets 3,013 3,747
----------- -----------
Total assets $ 2,570,458 $ 2,331,919
=========== ===========
Liabilities and Stockholders' Equity
Mortgage loans payable $ 740,806 $ 544,027
Unsecured lines of credit 288,850 296,450
Accounts payable and accrued
expenses 34,482 21,687
Security deposits 16,073 13,933
Dividends payable 28,195 26,210
----------- -----------
Total liabilities 1,108,406 902,307
----------- -----------
Minority interest 85,294 56,222
Stockholders' equity:
Common stock 633 624
Additional paid-in capital 1,378,292 1,374,813
Notes and interest receivable
from officers-shareholders (2,167) (2,047)
----------- -----------
Total stockholders'
equity 1,376,758 1,373,390
----------- -----------
Total liabilities and
stockholders' equity $ 2,570,458 $ 2,331,919
=========== ===========
ARDEN REALTY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
For the Three Months Ended For the Years Ended
December 31, December 31,
(unaudited) (unaudited)
1999 1998 1999 1998
Revenue:
Revenues from rental
operations:
Rent $ 76,654 $ 69,647 $292,688 $250,467
Tenant reimbursements 2,973 3,237 13,863 9,505
Parking, net of expenses 3,801 3,439 14,384 12,223
Other rental operations 5,654 2,744 16,918 8,872
-------- -------- -------- --------
89,082 79,067 337,853 281,067
Interest and other income 730 682 2,822 3,515
-------- -------- -------- --------
Total revenue 89,812 79,749 340,675 284,582
-------- -------- -------- --------
Expenses:
Property expenses:
Repairs and maintenance 8,722 7,740 32,902 27,141
Utilities 6,818 7,298 28,305 26,559
Real estate taxes 5,986 5,381 23,167 19,433
Insurance 1,031 1,132 3,993 4,110
Ground rent 198 180 891 714
Marketing and other 3,831 2,486 12,026 8,613
------- ------- ------- ---------
Total property expenses 26,586 24,217 101,284 86,570
General and
administrative 2,378 2,078 7,393 6,665
Interest 16,554 12,264 60,239 43,403
Depreciation and
amortization 18,639 14,642 69,837 51,822
------- ------- ------- ---------
Income before minority
interest 25,655 26,548 101,922 96,122
Minority interest (1,994) (1,259) (5,296) (5,447)
------- ------- ------- ---------
Net income $ 23,661 $ 25,289 $ 96,626 $ 90,675
========= ========= ========= =========
Net income per share:
Basic $ 0.37 $ 0.41 $ 1.53 $ 1.55
Diluted $ 0.37 $ 0.40 $ 1.53 $ 1.54
Weighted average common shares:
Basic 63,352 62,405 63,016 58,660
Diluted 63,358 62,479 63,072 58,814
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 For the Years Ended
December 31, December 31,
1999 1998 1999 1998
Funds From Operations:
Net income $ 23,661 $ 25,289 $ 96,626 $ 90,675
Plus-
Depreciation and
amortization of
real estate assets 18,639 14,642 69,837 51,822
Minority interest 1,994 1,259 5,296 4,872
Funds From Operations $ 44,294 $ 41,190 $171,759 $147,369
Funds Available for Distribution:
Funds From Operations $ 44,294 $ 41,190 $171,759 $147,369
Less-
Straight-line rent
adjustment ( 1,981) ( 2,600) ( 7,680) ( 8,193)
Capital expenditure,
tenant improvement and
leasing commission
reserve ( 6,812) ( 5,778) ( 27,272) ( 21,487)
Funds Available for
Distribution $ 35,501 $ 32,812 $136,807 $117,689
Per share:
Funds From
Operations - Diluted $ 0.66 $ 0.63 $ 2.60 $ 2.38
Funds Available for
Distribution - Diluted $ 0.53 $ 0.50 $ 2.07 $ 1.89
Distributions declared $ 0.445 $ 0.42 $ 1.78 $ 1.68
Weighted average shares and Operating
Partnership Units outstanding
- Diluted 67,515 65,584 66,188 61,999
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 &uot;White Paper&uot;) 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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