Bedford Property Investors Announces First Quarter 2005 Results.LAFAYETTE Lafayette (lä'fēĕt`, lăf'ēĕt`). 1 City (1990 pop. 23,501), Contra Costa co., NW Calif., a residential suburb in the San Francisco–Oakland area; settled 1848, inc. 1968. , Calif. -- Bedford Bedford, town, England Bedford, town (1991 pop. 75,632), county seat of Bedfordshire, central England, on the Ouse River. It is an important industrial center; diesel engines, pumps, turbines, agricultural machinery, electrical equipment, and transistors Property Investors, Inc. (NYSE NYSE See: New York Stock Exchange :BED) today announced its financial results for the first quarter ended March 31, 2005. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of common stock (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) for the first quarter of 2005 were $0.43, an increase of 48% compared with 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. EPS of $0.29 achieved for the first quarter of 2004. 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 ) per share of common stock for the first quarter of 2005 were $0.46, a decrease of 36% when compared with FFO per share of $0.72 achieved for the first quarter of 2004. Financial Results Net income available to common stockholders for the first quarter of 2005 increased by approximately $2,150,000 when compared with the first quarter of 2004. This increase is mainly due to gains of approximately $7,144,000 realized from the sales of operating properties and an increase of approximately $1,888,000 of net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from 2004 property acquisitions. These increases are partially offset by the following reductions: approximately $3,477,000 in net operating income resulting from the sales of operating properties in the fourth quarter of 2004 and the first quarter of 2005; approximately $1,736,000 due to reduced occupancy in our portfolio; approximately $1,144,000 due to additional preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) resulting from the issuance of our Series B preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in April 2004; and approximately $555,000 primarily due to increased personnel costs included in general and administrative expenses. FFO for the first quarter of 2005 was approximately $7,247,000, compared to approximately $11,644,000 for the same period in 2004. FFO is a non-GAAP financial measurement used by real estate investment trusts to measure and compare operating performance and is generally defined 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 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , excluding extraordinary items and gains or losses from sales of property, plus depreciation and amortization of assets related to real estate, and after adjustments for unconsolidated partnerships and joint ventures. A reconciliation of our FFO to our net income available to common stockholders (the most directly comparable GAAP measure) is included in the financial data accompanying this press release. Property Operations As of March 31, 2005, our operating portfolio occupancy was 89%, 2% below the December December: see month. 31, 2004 occupancy and 3% below the March 31, 2004 occupancy. The average occupancy at our same-store operating properties, which consist of approximately 6.4 million square feet or 91% of the total square footage of our operating portfolio, was 89%. During the first quarter of 2005, we renewed and released 155,633 square feet, or 47%, of the expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. footage of 330,609. The average change in rental rates (on a cash basis) in these new leases was a decrease of 10.4%. The renewed and released rate achieved in the first quarter of 2005 of 47% was down from the renewed and released rate of 74% achieved during the twelve months of 2004. The decrease resulted from a tenant vacating 189,000 square feet in one of our office buildings in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. at the end of January January: see month. 2005. Property Acquisitions In the first quarter of 2005, we purchased one parcel of land of 1.05 acres in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). for approximately $367,000. The land will be held as a future development site. Property Dispositions In the first quarter of 2005, we sold a 109,780 square-foot R & D property in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. for $15,800,000. This sale generated a gain of approximately $6,894,000. In addition, we recorded a gain of $250,000 from funds released from escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. in the first quarter of 2005 in connection with a property sold in the fourth quarter of 2004. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. During the first quarter of 2005, we repurchased 30,074 shares of our common stock at the average of the high and low trading prices Trading price The price at which a security is currently selling. on the date of the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. . These shares were not repurchased on the open market but from our employees who sold shares in settlement of their payroll taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. upon the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of their restricted stock. Since the inception of our common stock repurchase program in November November: see month. 1998, we have repurchased a total of 8,515,981 shares of our common stock at an average cost of $19.26 per share, which represents 37.6% of the shares of common stock outstanding at November 30, 1998. Company Information We are a self-administered equity real estate investment trust that acquires, develops, owns and operates multi-tenant suburban office and industrial properties. Currently we own and manage approximately 7.6 million square feet of suburban office and industrial space located in 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). , 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). , Colorado, Nevada, 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. and Washington. As of March 31, 2005, we had 493 tenants. We are traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and the Pacific Exchange under the symbol "BED", and our website is www.bedfordproperty.com. Investors, analysts and other interested parties are invited to join our quarterly conference call on Tuesday, April 19, 2005 at 8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . To participate, callers may dial (877) 407-8291 five minutes beforehand. Investors also have the opportunity to listen to the conference call live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , at our website at www.bedfordproperty.com, under Investor Relations Investor relations The process by which the corporation communicates with its investors. -- Investor Overview, by clicking on the webcast icon. A replay of the call is available for one week at (877) 660-6853. The replay account number is 297 and the replay conference number is 143428.
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2005 AND DECEMBER 31, 2004
(Unaudited; in thousands, except share and per share amounts)
March 31, December 31,
2005 2004(1)
------------ ------------
Assets
Real estate investments:
Industrial buildings $406,142 $417,613
Office buildings 326,945 332,695
Properties under development 30,780 29,716
Land held for development 13,969 13,529
------------ ------------
777,836 793,553
Less accumulated depreciation 88,708 85,436
------------ ------------
689,128 708,117
Operating properties held for sale, net 17,976 8,293
------------ ------------
Total real estate investments 707,104 716,410
Cash and cash equivalents 4,398 24,218
Accounts receivable, net 489 679
Notes receivable, net 6,513 6,820
Other assets 43,532 45,356
------------ ------------
Total assets $762,036 $793,483
============ ============
Liabilities and Stockholders' Equity
Bank loan payable $30,875 $-
Mortgage loans payable 349,611 351,335
Accounts payable and accrued expenses 8,533 13,135
Dividends payable 10,409 63,898
Other liabilities 13,289 14,657
------------ ------------
Total liabilities 412,717 443,025
------------ ------------
Stockholders' equity:
Preferred stock, $0.01 par value;
authorized 6,795,000 shares; issued none - -
Series A 8.75% cumulative redeemable
preferred stock, $0.01 par value;
authorized and issued 805,000 shares at
March 31, 2005 and December 31, 2004;
stated liquidation preference of $40,250 38,947 38,947
Series B 7.625% cumulative redeemable
preferred stock, $0.01 par value;
authorized and issued 2,400,000 shares at
March 31, 2005 and December 31, 2004;
stated liquidation preference of $60,000 57,769 57,769
Common stock, $0.02 par value; authorized
50,000,000 shares; issued and outstanding
16,440,409 shares at March 31, 2005 and
16,325,584 shares at December 31, 2004 328 326
Additional paid-in capital 292,172 289,132
Deferred stock compensation (12,773) (10,114)
Accumulated dividends in excess of net
income (27,199) (25,700)
Accumulated other comprehensive income 75 98
------------ ------------
Total stockholders' equity 349,319 350,458
------------ ------------
Total liabilities and stockholders' equity $762,036 $793,483
============ ============
(1) The information in this column was derived from the company's
audited consolidated balance sheet for the year ended December 31,
2004.
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(Unaudited; in thousands, except share and per share amounts)
Three Months
2005 2004
----------- -----------
Rental income $23,634 $22,747
Rental expenses:
Operating expenses 4,533 3,648
Real estate taxes 3,008 2,579
Depreciation and amortization 7,412 6,120
General and administrative expenses 2,061 1,506
----------- -----------
Income from operations 6,620 8,894
Other income (expense)
Interest income 140 19
Interest expense (5,361) (5,027)
----------- -----------
Income from continuing operations 1,399 3,886
----------- -----------
Discontinued operations:
Income from discontinued operations 367 1,730
Gain on sale of operating properties 7,144 -
----------- -----------
Income from discontinued operations 7,511 1,730
----------- -----------
Net income 8,910 5,616
Preferred dividends - Series A (880) (880)
Preferred dividends - Series B (1,144) -
----------- -----------
Net income available to common stockholders $6,886 $4,736
=========== ===========
Income per common share - basic:
Income from continuing operations $(0.04) $0.19
Income from discontinued operations 0.47 0.11
----------- -----------
Net income available to common stockholders $0.43 $0.30
=========== ===========
Weighted average number of shares - basic 15,837,383 15,958,868
=========== ===========
Income per common share - diluted:
Income from continuing operations $(0.04) $0.18
Income from discontinued operations 0.47 0.11
----------- -----------
Net income available to common stockholders $0.43 $0.29
=========== ===========
Weighted average number of shares - diluted 15,900,293 16,273,156
=========== ===========
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(in thousands, except share and per share amounts)
Three Months
2005 2004
----------- -----------
Net income available to common stockholders $6,886 $4,736
Adjustments:
Depreciation and amortization:
Continuing operations 7,412 6,120
Discontinued operations 93 788
Gain on sale of operating properties (7,144) -
----------- -----------
Funds from Operations (FFO)(1) $7,247 $11,644
=========== ===========
FFO per share - diluted $0.46 $0.72
=========== ===========
Weighted average number of shares - diluted 15,900,293 16,273,156
=========== ===========
(1) Although FFO is not a financial measure calculated in accordance
with accounting principles generally accepted in the United States
of America (GAAP), we believe that FFO is an appropriate
alternative measure of the performance of an equity real estate
investment trust (REIT). Presentation of this information provides
the reader with an additional measure to compare the performance
of equity REITs. FFO is generally defined by the National
Association of Real Estate Investment Trusts as net income (loss)
(computed in accordance with GAAP), excluding extraordinary items
such as gains (losses) from sales of property, plus depreciation
and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. FFO as set forth in the table
above has been computed in accordance with this definition. FFO
does not represent cash generated by operating activities in
accordance with GAAP; it is not necessarily indicative of cash
available to fund cash needs and should not be considered as an
alternative to net income (loss) as an indicator of our operating
performance or as an alternative to cash flow as a measure of
liquidity. Furthermore, FFO as disclosed by other REITs may not be
comparable to our presentation. The most directly comparable
financial measure calculated in accordance with GAAP to FFO is net
income available to common stockholders.
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