BNP Residential Properties, Inc. Announces Fourth Quarter and 2005 Results.CHARLOTTE, N.C. -- BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. Residential Properties, Inc. (AMEX AMEX See: American Stock Exchange : BNP) today announced operating results for the fourth quarter and year ended December December: see month. 31, 2005. Overview: BNP Residential Properties, Inc. is a real estate investment trust focused on owning and operating apartment communities. The Company currently owns and operates 30 apartment communities containing a total of 7,946 units, and serves as general partner of partnerships that own 3 communities containing 713 units. In addition to the apartment properties, the Company owns 40 properties that are leased on a triple net basis to a restaurant operator. The Company currently operates in the states of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . BNP Residential Properties, Inc. is structured as an UPREIT, or umbrella umbrella, a small canopy used as a protection against the sun in China, Egypt, and elsewhere in remote antiquity. It was often an emblem of rank. During the Middle Ages the umbrella became almost extinct in Europe; its usefulness was not rediscovered until the late partnership real estate investment trust. The Company is the sole general partner and owns a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in BNP Residential Properties Limited Partnership, the operating partnership. All of the Company's operations are conducted through the operating partnership. Operating Results: Results of operations for the fourth quarter and the year 2005, compared to the same periods in 2004, reflect significant growth in our company. --In January January: see month. 2005, we acquired the general partner interest in three limited partnerships, which are now included in our consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge . --In March 2005, we acquired a portfolio of four apartment properties that we previously fee managed. --During the second and third quarters of 2005, we acquired four additional apartment properties. --In October October: see month. 2005, we sold one apartment property. This is reflected as "discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. " in our operating statements operating statement See income statement. . --In November November: see month. 2005, we redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. 909,090 shares of Series B Cumulative Preferred Stock Cumulative preferred stock Preferred stock whose dividends accrue, should the issuer not make timely dividend payments. Related: Non-cumulative preferred stock. for a like number of shares of our common stock. --In December 2005, we completed the refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. of five property-based loans. The following discussion reflects results of our continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the and does not include operating results from the property we sold in October (which GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). requires be classified as discontinued operations). For the Year ended December 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. : For 2005, funds from operations of the operating partnership increased by 14.7% to $13.1 million compared to $11.4 million in 2004, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite $1.6 million in charges for prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. (net of $0.5 million charge absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. by the minority interest in a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: partnership) paid in debt refinance transactions in 2005. On a 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, funds from operations per share was $1.13 for 2005 compared to $1.20 for 2004. (See also "Non-GAAP Information" below) Funds Available for Distribution: Funds available for distribution totaled $19.0 million in 2005, an increase of 90.4% compared to 2004. If not for the gain on sale and the charge for prepayment penalties in 2005, this increase would be 25.2%. (See also "Non-GAAP Information" below) Net Income/(Loss): For 2005, net loss attributed to common shareholders was $1.5 million compared to income of $1.0 million in 2004. On a diluted per share basis, net loss attributed to common shareholders was $0.25 per common share compared to net income of $0.01 per common share for 2004. The shift to net losses in 2005, compared to net income in 2004, arises primarily as a result of certain accounting entries related to our general partner interest in limited partnerships, the most significant of which are charges for distributions to minority partners (which have no economic effect or cost to the operating partnership). We believe the acquisition of the general partner interest in three limited partnerships in January 2005 was a good transaction that will provide substantial economic benefit to us. However, the accounting for these investments is complex, and 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") require certain entries that make it difficult to understand the impact of these investments on the company. This matter is discussed in more detail in our reports filed with the SEC. Revenues: Total revenue in 2005 was $72.0 million, an increase of 44.1% compared to 2004. Apartment related income (apartment rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time plus income from apartment management and investment activities) accounted for 94.7% of total revenue in 2005 compared to 92.3% in 2004. Restaurant rental income was 5.3% of total revenue in 2005 compared to 7.7% in 2004. Apartments: Apartment rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. revenue in 2005 was $67.0 million, an increase of 49.2% compared to 2004. This increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to eleven apartment communities acquired in 2005 and 2004 and the inclusion of three additional apartment communities in our consolidated financial statements effective January 2005. The increase also reflects improvement in performance at our apartment communities. Average economic occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy for all owned apartments was 94.7% in 2005 compared to 94.4% in 2004. Average monthly revenue per occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. unit for all owned apartments was $742 in 2005 compared to $737 in 2004. On a same-units basis, apartment revenue increased by 2.4% in 2005, reflecting improved apartment performance. On a same-units basis, average economic occupancy was 94.6% in 2005 compared to 94.8% in 2004. Average monthly revenue per occupied unit was $753 in 2005 compared to $734 in 2004. On a same-units basis, apartment NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics (apartment rental income less apartment 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 2005 increased by 4.7% compared to 2004. Restaurants: Restaurant rental income in both 2005 and 2004 was $3.8 million, which is the minimum rent specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. in the lease agreement. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of at our restaurant properties decreased by 5.9% in 2005. Other Income: Management fee income for 2005 was $131,000 compared to $761,000 in 2004. This decrease is attributable to the elimination of management fees for consolidated limited partnerships and our acquisition of four properties in the first quarter of 2005 that we previously managed. We recorded casualty gains totaling $668,000 in 2005 and $269,000 in 2004 related to fires in three of our apartment buildings. We have excluded the casualty gains from our calculation of funds from operations. During the third quarter of 2005, we received and accepted an unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective offer for Savannah Savannah, city, United States Savannah, city (1990 pop. 137,560), seat of Chatham co., SE Ga., a port of entry on the Savannah River near its mouth; inc. 1789. Shores Apartments, which we acquired in July July: see month. 2004. In view of the extraordinary pricing offered, we believe that completing this sale was in the best interest of our shareholders. In October 2005, we sold Savannah Shores for a contract price of $22.75 million. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the sale were $22.2 million, and we recorded a gain on the sale of real estate assets of $8.1 million. We applied the sale proceeds to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. a $9.0 million variable-rate note variable-rate note See floating-rate note. , then reinvested the remaining proceeds to acquire two apartment communities. Expenses: Total expenses, including non-cash charges 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. for depreciation and amortization, were $82.4 million in 2005, an increase of 68.1% compared to 2004. Apartment operations expense was $26.2 million in 2005, an increase of 44.8% compared to 2004. These increases reflect the addition of eleven apartment communities in 2005 and 2004, along with consolidation of three additional communities in 2005. Apartment operations expense represented 39.0% of related apartment rental income compared to 40.3% in 2004. On a same-units basis, apartment operations expense decreased by 1.0%. Apartment administrative expense (the costs associated with oversight
Oversight may refer to:
Operating expenses for restaurant properties are insignificant because the restaurant properties' triple-net lease arrangement requires the lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). to pay virtually all of the expenses associated with the restaurant properties. Depreciation and amortization totaled $17.0 million in 2005, an increase of 43.7% compared to 2004. This increase reflects property acquisitions in 2005 and 2004, as well as additions and replacements at other apartment communities. Interest expense was $22.6 million in 2005, an increase of 56.1% compared to 2004. This increase is primarily attributable to new debt issued or assumed in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with acquisitions of apartment properties, the inclusion of interest on debt of the three additional limited partnerships included in our consolidation, and increases in variable interest rates. Dividend: The Company paid common dividend distributions totaling $1.00 per share during 2005 and 2004. For 2005, 100% of the distribution was classified as non-taxable non-taxable adj → nicht steuerpflichtig non-taxable adj non-taxable income → reddito non imponibile return of capital. For the Quarter ended December 31, 2005 Funds from Operations: Funds from operations of the operating partnership for the fourth quarter of 2005 totaled $1.9 million, a decrease of 38.1% compared to the fourth quarter of 2004. On a diluted basis, funds from operations per share was $0.15 for the fourth quarter of 2005 compared to $0.29 for the fourth quarter of 2004. This decrease is due to prepayment penalties of $1.6 million paid in debt refinance transactions in the fourth quarter of 2005. (See also "Non-GAAP Information" below) Funds Available for Distribution: Funds available for distribution for the fourth quarter of 2005 totaled $9.6 million, an increase of 259.2% compared to the fourth quarter of 2004. This significant increase is due to the gain on sale for the property sold in October 2005. (See also "Non-GAAP Information" below) Net income/(loss): Net income for the fourth quarter of 2005 was $5.0 million compared to $150,000 in 2004. On a diluted per share basis, income available to common shareholders was $0.54 per common share for the fourth quarter of 2005 compared to a loss of $0.01 per common share in 2004. Revenues: Total revenue for the fourth quarter of 2005 was $19.9 million, an increase of 46.1% compared to the same period in 2004. Apartment related income (apartment rental income plus income from apartment management and investment activities) accounted for 95.2% of total revenue in the fourth quarter of 2005 compared to 93.0% in the fourth quarter of 2004. Restaurant rental income was 4.8% of total revenue in the fourth quarter of 2005 compared to 7.0% in 2004. Apartments: Apartment rental revenue during the fourth quarter was $18.4 million, an increase of 47.8% compared to 2004. This increase is attributable to eleven apartment communities acquired in 2005 and 2004 and the inclusion of three additional apartment communities in our consolidated financial statements effective January 2005. The increase also reflects continued improvement in performance at our apartment communities. Average economic occupancy for all owned apartments was 94.1% for the fourth quarter of 2005 compared to 93.2% during the fourth quarter of 2004. Average monthly revenue per occupied unit for all owned apartments was $746 in the fourth quarter of 2005 compared to $744 in 2004. On a same-units basis, apartment revenue increased by 2.9% in the fourth quarter of 2005 as compared to 2004. This increase was the result of increases in both occupancy and rental rate. On a same-units basis, average economic occupancy was 94.2% for the fourth quarter of 2005 compared to 93.9% in the fourth quarter of 2004. Average monthly revenue per occupied unit was $760 in the fourth quarter of 2005 compared to $741 in 2004. On a same-units basis, apartment NOI (apartment rental income less apartment operating expenses) for the fourth quarter of 2005 increased by 4.2% compared to the fourth quarter of 2004. Restaurants: Restaurant rental income for the fourth quarters of both 2005 and 2004 was $957,000, which is the minimum rent specified in the lease agreement. Same store sales at our restaurants decreased by 6.1% in the fourth quarter of 2005 compared to 2004. Other Income: Management fee income for the fourth quarter of 2005 decreased to $9,000 from $179,000 in 2004. This decrease is attributable to the elimination of management fees for consolidated limited partnerships and our acquisition of four properties in the first quarter of 2005 that we previously managed. We recorded casualty gains of $500,000 in the fourth quarter of 2005 related to a fire in one of our apartment buildings. We have excluded the casualty gains from our calculation of funds from operations. Expenses: Total expenses, including non-cash charges for depreciation and amortization, were $21.8 million for the fourth quarter of 2005, an increase of 61.4% compared to 2004. These increases are primarily attributable to growth in our apartment operations, along with charges for deficit distributions to a minority partner. Apartment operations expense (the direct costs of on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. operations) was $7.2 million for the fourth quarter of 2005, an increase of 44.3% compared to 2004. These increases reflect the addition of eleven apartment communities in 2005 and 2004, along with consolidation of three additional communities in 2005. Apartment operations expense represented 39.1% of related apartment rental income for the fourth quarter of 2005 compared to 40.1% in 2004. On a same-units basis, apartment operations expense increased by 1.0% for the fourth quarter of 2005 as compared to 2004. Apartment administrative expense (the costs associated with oversight, accounting and support of the company's apartment management activities for both owned and third party properties) was $1.0 million for the fourth quarter of 2005 compared to $606,000 in 2004. Corporate administration expense was $834,000 in the fourth quarter of 2005 compared to $585,000 in 2004. Operating expenses for restaurant properties are insignificant because the restaurant properties' triple-net lease arrangement requires the lessee to pay virtually all of the expenses associated with the restaurant properties. Depreciation and amortization totaled $4.6 million in the fourth quarter of 2005, an increase of 40.8% compared to 2004. This increase reflects apartment acquisitions in 2005 and 2004, as well as additions and replacements at other communities. Interest expense for the fourth quarter was $6.3 million in 2005, an increase of 57.0% compared to 2004. This increase is primarily attributable to new debt issued in conjunction with acquisitions of apartment properties, the inclusion of interest on debt of the three additional limited partnerships included in our consolidation, and increases in variable interest rates. Dividend: The Company paid common dividend distributions totaling $0.25 per share during the fourth quarters of both 2005 and 2004. President's Statement: 2005 was by far the most active year in our history. With the acquisition of eight apartment properties and the general partner interest in partnerships owning three communities, as well as the completion of rehabilitation rehabilitation: see physical therapy. projects at two of our existing properties, we were able to dramatically expand and improve our portfolio. Less obvious, but equally important, was the tremendous progress we made in expanding and improving our corporate operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . It was also a good year from an operational point of view. We saw continued improvement in apartment operating results with same-units NOI growth of 4.7% in 2005. This was primarily the result of a 2.4% increase in same-units apartment revenue. We entered 2005 with high occupancy and anticipated that any increase in rental revenue would, by necessity, come from increasing rental rates. While maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: apartment revenue is always a balancing act between occupancy and rental rate, we were relatively pleased with our ability to increase rental rates in 2005 without having to sacrifice sacrifice [Lat. sacrificare=to make holy], a type of religious offering, or gift to a superior or supreme being, in which the offering is consecrated through its destruction. occupancy. Overall, we were pleased with our operating results for 2005. Total funds from operations showed good improvement, 14.7%, despite the fact that we incurred approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.6 million in one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. charges related to our 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. refinancing Refinancing An extension and/or increase in amount of existing debt. transactions. Funds from operations per share for the year declined to $1.13, but again this was net of the one-time refinancing charges that equated to approximately $0.14 per share. While the year-end refinance transactions had an immediate negative impact on our reported results for 2005, we believe that the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. impact of these transactions will be quite beneficial. As a result of these transactions we have substantially reduced our exposure to increases in interest rates and the low fixed rates obtained on the replacement loans will result in substantial interest savings over the next few years. We are quite optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about 2006. We have a solid portfolio of extremely well maintained apartment properties in excellent locations. We are confident that given our properties, our markets, our strategy, and the current economic environment we will be able to achieve reasonable growth in apartment rental income in 2006. We believe that the key to success in 2006 will be basic apartment operations - marketing, leasing, and maintenance - something with which we are particularly comfortable and adept. Conference Call: Management will hold a conference call to discuss these earnings on Wednesday Wednesday: see week. , March 8, 2006 at 2:00 p.m. Eastern Time. This call will be webcast by Shareholder.com and can be accessed through BNP's website at www.bnp-residential.com. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. may dial 1-800-239-0468 to access the call. Non-GAAP Information: Funds from operations is frequently referred to as "FFO FFO See: Funds from operations ." FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") as "net income (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), excluding gains (losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." Our calculation of FFO is consistent with FFO as defined by NAREIT. Because we hold all of our assets in and conduct all of our operations through the Operating Partnership, we measure FFO at the operating partnership level (i.e., after deducting the minority interests in FFO of the consolidated limited partnerships but before deducting the minority interest in the operating partnership). Historical cost accounting for real estate assets implicitly im·plic·it adj. 1. Implied or understood though not directly expressed: an implicit agreement not to raise the touchy subject. 2. assumes that the value of real estate assets diminishes predictably over time. In fact, real estate values have historically risen or fallen with market conditions. FFO is intended to be a standard supplemental measure of operating performance that excludes historical cost depreciation from - or "adds it back" to - GAAP net income. We consider FFO to be useful in evaluating potential property acquisitions and measuring operating performance. We calculate funds available for distribution as FFO plus non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) , plus (less) gains (losses) from sale of property, less 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. We believe that, together with net income and cash flows, funds available for distribution provides investors with an additional measure to evaluate the ability of the Operating Partnership to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and service debt, to fund acquisitions and other capital expenditures, as well as to fund distributions to shareholders and minority unitholders. Funds from operations and funds available for distribution do not represent net income or cash flows from operations as defined by generally accepted accounting principles. You should not consider funds from operations or funds available for distribution: --to be alternatives to net income as reliable measures of the company's operating performance, or --to be alternatives to cash flows as measures of liquidity. Funds from operations and funds available for distribution do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization, capital improvements and distributions to shareholders. Funds from operations and funds available for distribution do not represent cash flows from operating, investing or financing activities (as defined by generally accepted accounting principles). Further, funds from operations and funds available for distribution as disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). by other REITs might not be comparable to our calculation of funds from operations or funds available for distribution. Additional Information: More information may be obtained by calling our corporate offices at (704) 944-0100 or on our web site at www.bnp-residential.com. Information requests may be e-mailed to the investor relations Investor relations The process by which the corporation communicates with its investors. department at investor.relations@bnp-residential.com. Forward Looking Statement Disclosure: This press release includes 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. concerning the company's operations, economic performance and financial condition, including, in particular, forward-looking statements regarding future operations and performance. Such statements are subject to various risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors identified in our 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. for the year ending December 31, 2004.
BNP Residential Properties, Inc.
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Consolidated Statements of Operations and
Financial Results - Unaudited
(all amounts in thousands except per share amounts)
Three months Twelve months
ended ended
December 31 December 31
2005 2004 2005 2004
-------- ------- --------- -------
Revenues
Apartment rental income $18,410 $12,458 $ 67,029 $44,929
Restaurant rental income 957 957 3,830 3,830
Management fee income 9 179 131 761
Interest and other income 543 35 1,023 466
------- ------- -------- -------
19,919 13,630 72,012 49,986
Expenses
Apartment operations 7,212 4,997 26,243 18,119
Apartment and corporate
administration 1,840 1,192 6,255 4,520
Interest 6,344 4,041 22,555 14,445
Penalties paid at debt refinance 1,628 - 2,146 -
Depreciation 4,523 3,178 16,602 11,491
Amortization of deferred loan
costs 101 106 432 365
Write-off of unamortized loan
costs at debt refinance 71 - 294 85
Deficit distributions to
minority partners 90 - 7,861 -
------- ------- -------- -------
21,809 13,513 82,389 49,025
------- ------- -------- -------
(1,890) 116 (10,377) 961
Loss (income) attributed to
minority interests -
- Consolidated limited
partnerships 83 - 350 -
- Operating partnership 381 24 1,975 1
------- ------- -------- -------
(Loss) income from continuing
operations (1,426) 140 (8,052) 962
Discontinued operations:
(Loss) income from discontinued
operations (33) 13 88 95
Gain on sale of real estate
assets 8,132 - 8,132 -
Loss (income) attributed to
operating partnership minority (1,633) (2) (1,657) (17)
------- ------- -------- -------
Income from discontinued
operations 6,466 10 6,563 77
------- ------- -------- -------
Net income (loss) 5,040 150 (1,488) 1,039
Less cumulative preferred
dividend (83) (250) (833) (1,000)
------- ------- -------- -------
Income (loss) attributed to
common shareholders $ 4,957 $ (100) $ (2,322) $ 39
======= ======= ======== =======
Net income (loss) $ 5,040 $ 150 $ (1,488) $ 1,039
Add income (loss) attributed to
minority interests 1,169 (22) (668) 16
Less cumulative preferred
dividend (83) (250) (833) (1,000)
Less gain on sale of real estate
investments (8,132) - (8,132) -
Less casualty gains (500) - (668) (269)
Add amortization of in-place
lease intangible 57 - 193 -
Add depreciation 4,523 3,178 16,602 11,491
Add depreciation from
discontinued operations 4 92 259 170
Add deficit distributions to
minority partners 90 - 7,861 -
Less minority interest in FFO of
consolidated limited partnerships
(add if FFO is negative) (220) - 8 -
------- ------- -------- -------
Funds from operations $ 1,948 $ 3,148 $ 13,133 $11,447
======= ======= ======== =======
Consolidated Statements of Operations and
Financial Results (unaudited)
(all amounts in thousands except per share amounts)
Three months Twelve months
ended ended
December 31 December 31
2005 2004 2005 2004
-------- ------- --------- -------
Net cash provided by operating
activities $ 1,433 $ 3,318 $ 12,793 $12,677
Add gain on sale of real estate
investments 8,132 - 8,132 -
Less casualty losses - (14) - (14)
Less recurring capital
expenditures (814) (579) (3,018) (1,918)
Less cumulative preferred
dividend (83) (250) (833) (1,000)
Add (less) change in operating
assets and liabilities, net 1,120 206 1,912 138
Add amortization of deferred
interest defeasance - - - 105
Add (less) minority interest in
reconciling items arising
from consolidated limited
partnerships (158) - 28 -
------- ------- -------- -------
Funds available for distribution $ 9,629 $ 2,681 $ 19,014 $ 9,988
======= ======= ======== =======
Earnings per common share -
basic:
(Loss) income from
- Continuing operations $ (0.15) $ 0.02 $ (0.87) $ 0.13
- Discontinued operations 0.70 - 0.71 0.01
------- ------- -------- -------
Net income (loss) 0.55 0.02 (0.16) 0.14
Income (loss) attributed to
common shareholders 0.54 (0.01) (0.25) 0.01
Earnings per common share -
diluted:
(Loss) income from
- Continuing operations $ (0.15) $ 0.01 $ (0.87) $ 0.10
- Discontinued operations 0.70 - 0.71 0.01
------- ------- -------- -------
Net income (loss) 0.55 0.01 (0.16) 0.11
Income (loss) attributed to
common shareholders 0.54 (0.01) (0.25) 0.01
Funds from operations 0.15 0.29 1.13 1.20
Weighted average shares and
units outstanding:
Preferred B shares and units 435 909 790 909
Common shares 9,940 8,636 9,389 7,617
Operating partnership
minority units 2,510 1,866 2,301 1,856
Consolidated Statements of Operations and
Financial Results (unaudited)
(all amounts in thousands except per share amounts)
Three months Twelve months
ended ended
December 31 December 31
2005 2004 2005 2004
-------- ------- --------- -------
We calculated basic and diluted per
common share amounts using the following:
Numerators:
--------------------------------
For basic per common share
amounts -
Net income (loss) $ 5,040 $ 150 $ (1,488) $ 1,039
Less cumulative preferred
dividend (83) (250) (833) (1,000)
------- ------- -------- -------
Income (loss) attributed to
common shareholders - basic $ 4,957 $ (100) $ (2,322) $ 39
======= ======= ======== =======
For diluted per common share
amounts -
Net income (loss) $ 5,040 $ 150 $ (1,488) $ 1,039
Adjust for income (loss)
attributed to
minority interest in
operating partnership na(1) (22) na(1) 16
Less cumulative preferred
dividend (83) (250) (833) (1,000)
------- ------- -------- -------
Income (loss) attributed to
common shareholders -
diluted $ 4,957 $ (121) $ (2,322) $ 55
======= ======= ======== =======
Denominators:
--------------------------------
For basic per common share
income amounts -
Weighted average common
shares outstanding 9,940 8,636 9,389 7,617
less weighted average
nonvested shares outstanding (200) - (84) -
------- ------- -------- -------
Weighted average common
shares - basic 9,740 8,636 9,305 7,617
Effect of potentially dilutive
securities:
Operating partnership
minority units na(1) 1,866 na(1) 1,856
Nonvested shares outstanding na(2) - na(2) -
Dilutive stock options na(2) 58 na(2) 31
-------- ------- --------- -------
For diluted per share income
amounts -
Adjusted weighted average
common shares
and assumed conversions 9,740 10,559 9,305 9,504
======= ======= ======== =======
For funds from operations per
share:
Weighted average common
shares - basic 9,740 8,636 9,305 7,617
Weighted average operating
partnership minority units 2,510 1,866 2,301 1,856
------- ------- -------- -------
Weighted average common
shares and units outstanding 12,250 10,501 11,607 9,473
Nonvested shares outstanding na(2) - na(2) -
Dilutive stock options na(2) 58 na(2) 31
-------- ------- --------- -------
Weighted average operating
partnership
common units and assumed
conversions - diluted 12,250 10,559 11,607 9,504
======= ======= ======== =======
(1) Operating partnership units are anti-dilutive at December 31, 2005
- excluded from calculation of diluted per share amounts for net
income and income attributed to common shareholders. FFO is
calculated at the operating partnership level; this calculation
includes operating partnership minority units.
(2) Nonvested shares and stock options are anti-dilutive at December
31, 2005 -excluded from calculation of diluted per share amounts
for net income, income attributed to common shareholders, and
funds from operations.
BNP Residential Properties, Inc.
-------------------------------------------------------------------
Supplemental Consolidating
Summary Balance Sheets - Unaudited
(all amounts in thousands)
December 31 December 31
2005 2004
---------------------------------- --------
Consol Owned (Owned
Consol Elim LPs Properties Properties)
------------------------------------ ------------
Assets
Real estate
investments at
cost: $596,965 $ - $49,756 $547,209 $426,525
Less accumulated
depreciation (87,668) - (7,712) (79,956) (66,454)
-------- ------- ------- -------- --------
509,297 - 42,044 467,253 360,071
Cash and cash
equivalents 3,111 - 805 2,306 517
Prepaid expenses
and other assets 8,034 (3,586) 696 10,924 4,516
Deferred financing
costs, net 2,380 (154) 604 1,930 1,545
Intangible assets 1,240 - - 1,240 1,115
-------- ------- ------- -------- --------
Total assets $524,063 $(3,740)$44,149 $483,653 $367,764
======== ======= ======= ======== ========
Liabilities and
Shareholders'
Equity
Deed of trust and
other notes
payable $436,712 $(2,282)$50,419 $388,576 $286,425
Accounts payable
and accrued
expenses 1,419 (52) 139 1,332 897
Accrued interest on
notes payable 1,345 - 204 1,141 1,264
Consideration due
for acquisitions 1,000 - - 1,000 -
Deferred revenue
and security
deposits 1,950 (154) 122 1,982 1,787
-------- ------- ------- -------- --------
442,426 (2,489) 50,884 394,031 290,373
Minority interests -
- Consolidated
limited
partnerships - - - - -
- Operating
partnership 21,207 - - 21,207 14,394
Shareholders'
equity 60,429 (1,251) (6,735) 68,414 62,997
-------- ------- ------- -------- --------
Total liabilities
and shareholders'
equity $524,063 $(3,740)$44,149 $483,653 $367,764
======== ======= ======= ======== ========
BNP Residential Properties, Inc.
-------------------------------------------------------------------
Supplemental Consolidating Summary
Statements of Operations - Unaudited
(all amounts in thousands)
Three months ended
December 31 - 2005 2004
---------------------------------- --------
Consol Owned (Owned
Consol Elim LPs Properties Properties)
------------------------------------ ------------
Revenues
Apartment rental
income $ 18,410 $ - $ 1,974 $ 16,436 $ 12,458
Restaurant rental
income 957 - - 957 957
Management fee
income 9 (101) - 110 179
Casualty gains 500 - - 500 -
Interest and other
income 43 (57) 20 80 35
-------- ------- ------- -------- --------
19,919 (158) 1,994 18,083 13,630
Expenses
Apartment
operations 7,212 (101) 796 6,517 4,997
Apartment and
corporate
administration 1,840 - - 1,840 1,192
Interest 6,344 (42) 680 5,705 4,041
Penalties paid at
debt refinance 1,628 - - 1,628 -
Depreciation 4,523 - 399 4,125 3,178
Amortization of
deferred loan
costs 101 (15) 19 98 106
Write-off of
unamortized loan
costs at debt
refinance 71 - - 71 -
Deficit
distributions to
minority partners 90 - 90 - -
-------- ------- ------- -------- --------
21,809 (158) 1,983 19,983 13,513
-------- ------- ------- -------- --------
(Loss) income from
continuing
operations (1,890) - 10 (1,900) 116
Income from
discontinued
operations (33) - - (33) 13
Gain on sale of
real estate
investments 8,132 - - 8,132 -
-------- ------- ------- -------- --------
Income before
minority interests 6,209 $ - $ 10 $ 6,199 129
======= ======= ========
Loss (income)
attributed to
minority interests -
- Consolidated LPs 83 -
- Operating
partnership (1,252) 22
-------- --------
Net income 5,040 150
Less cumulative
preferred dividend (83) (250)
-------- --------
Income (loss)
attributed to
common
shareholders $ 4,957 $ (100)
======== ========
Calculation of FFO:
Income before
minority interest $ 6,209 $ - $ 10 $ 6,199 $ 129
Casualty gains (500) - - (500) -
Gain on sale of
real estate
investments (8,132) - - (8,132) -
Cumulative
preferred dividend (83) - - (83) (250)
Amortization of in-
place lease
intangible 57 - - 57 -
Depreciation 4,523 - 399 4,125 3,178
Depreciation
related to
discontinued
operations 4 - - 4 92
Deficit
distributions 90 - 90 - -
-------- ------- ------- -------- --------
2,168 - 499 1,669 3,148
Minority interest
in consolidated
LPs (220) - (220) - -
-------- ------- ------- -------- --------
FFO - Operating
partnership $ 1,948 $ - $ 279 $ 1,669 $ 3,148
======== ======= ======= ======== ========
BNP Residential Properties, Inc.
-------------------------------------------------------------------
Supplemental Consolidating Summary
Statements of Operations - Unaudited
(all amounts in thousands)
Twelve months ended
December 31 - 2005 2004
---------------------------------- --------
Consol Owned (Owned
Consol Elim LPs Properties Properties)
------------------------------------ ------------
Revenues
Apartment rental
income $ 67,029 $ - $ 7,126 $ 59,903 $ 44,929
Restaurant rental
income 3,830 - - 3,830 3,830
Management fee
income 131 (357) - 488 761
Casualty gains 668 - - 668 269
Interest and other
income 355 (144) 31 467 197
-------- ------- ------- -------- --------
72,012 (501) 7,157 65,356 49,986
Expenses
Apartment
operations 26,243 (357) 3,018 23,582 18,119
Apartment and
corporate
administration 6,255 - - 6,255 4,520
Interest 22,555 (128) 2,473 20,211 14,445
Penalties paid at
debt refinance 2,146 - 519 1,628 -
Depreciation 16,602 - 1,392 15,211 11,491
Amortization of
deferred loan
costs 432 (16) 70 377 365
Write-off of
unamortized loan
costs at debt
refinance 294 - 160 134 85
Deficit
distributions to
minority partners 7,861 - 7,861 - -
-------- ------- ------- -------- --------
82,389 (501) 15,492 67,398 49,025
-------- ------- ------- -------- --------
(Loss) income from
continuing
operations (10,377) - (8,335) (2,042) 961
Income from
discontinued
operations 88 - - 88 95
Gain on sale of
real estate assets 8,132 - - 8,132 -
-------- ------- ------- -------- --------
(Loss) income
before minority
interests (2,156)$ - $(8,335) $ 6,179 1,055
======= ======= ========
Loss (income)
attributed to
minority interests-
- Consolidated LPs 350 -
- Operating
partnership 318 (16)
-------- --------
Net (loss) income (1,488) 1,039
Less cumulative
preferred dividend (833) (1,000)
-------- --------
(Loss) income
attributed to
common
shareholders $ (2,322) $ 39
======== ========
Calculation of FFO:
(Loss) income
before minority
interest $ (2,156)$ - $(8,335) $ 6,179 $ 1,055
Casualty gains (668) - - (668) (269)
Gain on sale of
real estate assets (8,132) - - (8,132) -
Cumulative
preferred dividend (833) - - (833) (1,000)
Amortization of in-
place lease
intangible 193 - - 193 -
Depreciation 16,602 - 1,392 15,211 11,491
Depreciation
related to
discontinued
operations 259 - - 259 170
Deficit
distributions 7,861 - 7,861 - -
-------- ------- ------- -------- --------
13,125 - 917 12,208 11,447
Minority interest
in consolidated
LPs 8 - 8 - -
-------- ------- ------- -------- --------
FFO - Operating
partnership $ 13,133 $ - $ 925 $ 12,208 $ 11,447
======== ======= ======= ======== ========
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