BRE Properties reports results for second fiscal quarter; Per share FFO up 8% in quarter and six month period.SAN FRANCISCO--(BUSINESS WIRE)--Feb. 26, 1996--BRE Properties, Inc. (NYSE NYSE See: New York Stock Exchange :BRE (Business Rules Engine) Software that automates policies and procedures within an organization, whether legal, internal or operational. The use of a rules engine (BRE) requires placing the company rules in an external repository that can be easily reviewed rather than ) 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. of $8.5 million, or $.78 per share, in the quarter ended Jan. 31, 1996, up 8% from $7.9 million, or $.72 per share, in the comparable quarter a year ago. Funds from operations for the first six months of fiscal 1996 totaled $16.4 million, or $1.49 per share, an 8% increase from $15.1 million, or $1.38 per share, last year. Total revenue in the quarter was $17.1 million, up 8% from the second fiscal quarter a year ago. For the first six months of fiscal 1996, total revenue amounted to $33.8 million, an increase of 11% from the comparable period last year. At January January: see month. 31, 1996, the average occupancy of BRE's entire portfolio was 95%. 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 rose 7% for the quarter and 10% for the first six months of fiscal 1996, compared to the second quarter and first half of fiscal 1995. Frank C. McDowell Mc·Dow·ell , Ephraim 1771-1830. American surgeon who performed (1809) the first recorded ovariotomy. , president and chief executive officer, said, "BRE continues to move expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex toward its goal of becoming the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae multifamily real estate investment trust in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . "In the recent quarter, we reached agreement to sell 47 acres of land under a large apartment complex to the owner of the improvements for $58 million. The proceeds of this transaction, which is expected to close later this year, will be redeployed into wholly owned apartment communities. "Also during the quarter, we increased our acquisition commitments by $34 million with 629 units located in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Orange County. Consequently, commitments now include the purchase of five additional apartment communities, with 1,567 units, for a total of $88 million. "Going-in" capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. for these acquisitions range from 9.0% to 10.5%." BRE Properties and Real Estate Investment Trust of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). (NYSE: RCT RCT Randomized Controlled Trial RCT Regimental Combat Team (infantry regiment with their own artillery, engineers, medical and tanks) RCT Rollercoaster Tycoon RCT Randomized Clinical Trial RCT Rhondda Cynon Taff ) have entered into a definitive agreement in which the two companies will be merged, forming one of the largest multifamily real estate investment trusts (REITs) in the Western U.S. market. On March 12, 1996, BRE and REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). of California will hold simultaneous meetings, in which shareholders of both companies will be asked to approve the merger. Given shareholder approval, the transaction is expected to close on March 15, 1996. BRE Properties is a self-administered equity real estate investment trust which primarily owns and operates apartment communities in the Western United States. The company owns apartments in California, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , Washington and Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . -0-
BRE Properties Inc.
Financial Summary
(in thousands, except per share data)
Quarter Quarter Six Months Six Months
Ended Ended Ended Ended
1/31/96 1/31/95 1/31/96 1/31/95
------- ------- --------- ----------
REVENUE
Rental income $16,221 $15,209 $32,305 $29,319
Interest income 470 277 818 657
Other income 388 305 671 504
Total revenue 17,079 15,791 33,794 30,480
EXPENSES Real estate expenses 5,485 5,283 11,322 10,050 Depreciation and amortization 1,960 1,955 3,947 3,740 Interest expense 2,197 1,889 4,273 3,340 G&A 858 722 1,773 1,951 Total expenses 10,500 9,849 21,315 19,081 Income before gain (loss) on sales 6,579 5,942 12,479 11,399 Per share .60 .55 1.13 1.05 Net gain (loss) --- 1,250 (899) 1,250 Per share --- .11 (.08) .11 NET INCOME $6,579 $7,192 $11,580 $12,649 NET INCOME PER SHARE .60 .66 1.05 1.16 Funds from operations Net income 6,579 7,192 11,580 12,649 Loss or Gain --- (1,250) 899 (1,250) Depreciation 1,960 1,955 3,947 3,740 TOTAL FUNDS FROM OPERATIONS $8,539 $7,897 $16,426 $15,139 PER SHARE FUNDS FROM OPERATIONS .78 .72 1.49 1.38 Average shares outstanding 10,997 10,934 10,996 10,933
Balance Sheet
Jan. 31, 1996 Jan. 31, 1995
ASSETS
Equity investments in real estate $370,242 $372,579
Less accumulated depreciation and
amortization (48,690) (44,441)
--------- ---------
321,552 328,138
Investments in limited partnerships 1,154 1,140 Real estate portfolio 322,706 329,278 Mortgage loans 6,952 5,896 Allowance for possible losses (1,250) (1,000) Cash and short-term investments 14,736 8,138 Funds in escrow for tax-deferred exchange 3,854 --- Other assets 9,490 3,752 Total assets $356,488 $346,064 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and other liabilities $ 3,494 $ 3,695 Mortgage loans payable 112,176 97,066 Total liabilities 115,670 100,761 Total shareholders' equity 240,818 245,303 Total liabilities and shareholders' equity $356,488 $346,064 Note: Current disclosure and investor information is available by accessing the company's internet site. BRE can be accessed through InvestQuest Services at http://www.investquest.com. REIT of California's site is located at http://www.reitcal.com. CONTACT: BRE Properties Inc. Lauren L. Barr, 415/445-6523 |
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