Bedford Property Investors Announces Second Quarter and Six Months 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 second quarter and six months ended June June: see month. 30, 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 second quarter of 2005 were $0.55, 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 $0.30 achieved for the second quarter of 2004. EPS for the six months ended June 30, 2005 were $0.98 compared with $0.59 for the six months 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 second quarter of 2005 were $0.43, compared with FFO per share of $0.76 achieved for the second quarter of 2004. FFO per share of common stock for the first six months of 2005 were $0.89, compared with FFO per share of common stock of $1.48 achieved in the first six months of 2004. Financial Results Net income available to common stockholders for the second quarter of 2005 increased by approximately $3,784,000 (78%) when compared with the second quarter of 2004. Net income available to common stockholders for the first six months of 2005 increased by approximately $5,934,000 (62%) when compared with the same period in 2004. These increases are mainly due to gains of approximately $9,095,000 and $16,239,000 realized from the sales of operating properties for the second quarter and first six months of 2005, respectively. Income from 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 (which excludes the operating results from properties sold and gains on sales) for the second quarter and the first six months of 2005 decreased $2,579,000 and $4,995,000, respectively, when compared to the same periods in 2004. These decreases are the result of the loss 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 the property sales that occurred in 2004 and 2005, continued rental rate reductions on our lease renewals and re-leasing, declines in the operating portfolio 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 , and increases in depreciation expense, primarily due to improvements of real estate and properties acquired and developed in 2004 and 2005. These decreases were partially offset by additional net operating income resulting from the property acquisitions and development undertaken in 2004. FFO for the second quarter of 2005 were approximately $6,810,000, compared to approximately $12,226,000 for the same period in 2004. FFO for the six months ended June 30, 2005 were approximately $14,057,000, compared to approximately $23,870,000 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 ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. this press release. Property Operations As of June 30, 2005, we owned and managed approximately 7.5 million square feet of suburban office and industrial properties which consisted of 81 operating properties totaling approximately 6.9 million square feet and six development and rehabilitation rehabilitation: see physical therapy. projects totaling approximately 600,000 square feet. At quarter end our 7.5 million square foot portfolio was 80% occupied while our operating portfolio was 88% occupied. During the second quarter of 2005, we renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. and re-leased 451,294 square feet, or 82% 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. square footage of 550,053. The average change in rental rates (on a cash basis) in these new leases was a decrease of 16.0%. For the six months ended June 30, 2005, we renewed and re-leased 606,927 square feet, or 69% of the expiring square footage. The average change in rental rates (on a cash basis) in these new leases was a decrease of 14.7%. Property Acquisitions In the second quarter of 2005, we purchased a 1.31 acre parking lot for approximately $587,000 in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. . We purchased this lot, which is adjacent to one of our existing operating properties, to accommodate the parking needs of our tenants. Property Dispositions In the second quarter of 2005, we sold five operating properties in one transaction for $27,750,000. This sale consisted of two office and three R & D buildings totaling 182,186 square feet and generated a gain on sale of real estate investments of $9,095,000. During the six months ended June 30, 2005, we sold six operating properties in two transactions for a total of $43,550,000. These sales consisted of two office and four R & D buildings totaling 291,966 square feet and generated gains on sale of real estate investments of $15,989,000. 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 second quarter of 2005, we repurchased 178,363 shares of our common stock at an average cost of $21.81 per share. Of the 178,363 shares repurchased, 635 shares were repurchased 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. The remaining 177,728 shares were repurchased on the open market pursuant to our common stock share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Since the inception of this 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. program in November November: see month. 1998, we have repurchased a total of 8,694,344 shares of our common stock at an average cost of $19.31 per share, which represents 38% 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 In the Software as a Service (SaaS) software architecture, multi-tenant refers to the ability of the hosting site to support multiple organizations ("tenants") at the same time. Multi-tenancy is a key feature of a true SaaS architecture. suburban office and industrial properties 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 Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. 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). , 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 Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. . As of June 30, 2005, we had 478 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 Tuesday: see week. , July July: see month. 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 866-641-2830 and state ID#: 143428 and conference call leader Hanh Kihara, 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 Overview, by clicking on the webcast icon. A telephonic replay of the call is available through August 19, 2005 at 800-642-1687, ID#: 143428.
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS AS OF
JUNE 30, 2005 AND DECEMBER 31, 2004
(Unaudited; in thousands, except share and per share amounts)
June 30, December 31,
2005 2004(1)
------------ --------------
Assets
Real estate investments:
Industrial buildings $ 408,199 $ 417,613
Office buildings 345,541 332,695
Properties under development 19,701 29,716
Land held for development 12,666 13,529
----------- -----------
786,107 793,553
Less accumulated depreciation 94,117 85,436
----------- -----------
691,990 708,117
Operating properties held for sale, net - 8,293
----------- -----------
Total real estate investments 691,990 716,410
Cash and cash equivalents 2,508 24,218
Accounts receivable, net 464 679
Notes receivable, net - 6,820
Other assets 42,848 45,356
----------- -----------
Total assets $ 737,810 $ 793,483
=========== ===========
Liabilities and Stockholders' Equity
Bank loan payable $ 44,163 $ -
Mortgage loans payable 316,588 351,335
Accounts payable and accrued expenses 7,773 13,135
Dividends payable 10,311 63,898
Other liabilities 12,406 14,657
----------- -----------
Total liabilities 391,241 443,025
----------- -----------
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 June 30, 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 June 30, 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 16,248,057 shares at June
30, 2005 and 16,325,584 shares at
December 31, 2004 324 326
Additional paid-in capital 287,683 289,132
Deferred stock compensation (11,361) (10,114)
Accumulated dividends in excess
of net income (26,826) (25,700)
Accumulated other comprehensive income 33 98
----------- -----------
Total stockholders' equity 346,569 350,458
----------- -----------
Total liabilities and stockholders' equity $ 737,810 $ 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 AND SIX MONTHS ENDED JUNE, 2005 AND 2004
(Unaudited; in thousands, except share and per share amounts)
Three Months Six Months
2005 2004 2005 2004
----------- ----------- ----------- -----------
Rental income $ 23,543 $ 23,276 $ 47,176 $ 46,023
Rental expenses:
Operating
expenses 4,872 4,082 9,404 7,731
Real estate taxes 2,931 2,598 5,939 5,176
Depreciation and
amortization 7,246 6,550 14,658 12,670
General and
administrative
expenses 2,052 1,583 4,113 3,088
----------- ----------- ----------- -----------
Income from
operations 6,442 8,463 13,062 17,358
Other income
(expense)
Interest income 26 11 166 29
Interest expense (5,274) (4,701) (10,621) (9,785)
----------- ----------- ----------- -----------
Income from
continuing
operations 1,194 3,773 2,607 7,602
----------- ----------- ----------- -----------
Discontinued
operations:
Income from
discontinued
operations 394 1,983 747 3,770
Gain on sale of
operating
properties 9,095 - 16,239 -
----------- ----------- ----------- -----------
Income from
discontinued
operations 9,489 1,983 16,986 3,770
----------- ------------ ----------- -----------
Net income 10,683 5,756 19,593 11,372
Preferred
dividends -
Series A (881) (881) (1,761) (1,761)
Preferred
dividends -
Series B (1,143) - (2,287) -
----------- ----------- ----------- -----------
Net income
available to
common
stockholders $ 8,659 $ 4,875 $ 15,545 $ 9,611
=========== =========== =========== ===========
Income per common
share - basic:
(Loss) income
from continuing
operations $ (0.05) $ 0.18 $ (0.09) $ 0.37
Income from
discontinued
operations 0.60 0.13 1.07 0.23
----------- ----------- ----------- -----------
Net income
available to
common
stockholders $ 0.55 $ 0.31 $ 0.98 $ 0.60
=========== =========== =========== ===========
Weighted average
number of shares
- basic 15,764,606 15,838,442 15,800,793 15,898,655
=========== =========== =========== ===========
Income per common
share - diluted:
(Loss) income
from continuing
operations $ (0.05) $ 0.18 $ (0.09) $ 0.36
Income from
discontinued
operations 0.60 0.12 1.07 0.23
----------- ----------- ----------- -----------
Net income
available to
common
stockholders $ 0.55 $ 0.30 $ 0.98 $ 0.59
=========== =========== =========== ===========
Weighted average
number of shares
- diluted 15,795,296 16,059,299 15,858,864 16,181,870
=========== =========== =========== ===========
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED FUNDS FROM OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004
(in thousands, except share and per share amounts)
Three Months Six Months
2005 2004 2005 2004
----------- ----------- ----------- -----------
Net income
available to
common
stockholders $ 8,659 $ 4,875 $ 15,545 $ 9,611
Adjustments:
Depreciation and
amortization:
Continuing
operations 7,246 6,550 14,658 12,670
Discontinued
operations - 801 93 1,589
Gain on sale of
operating
properties (9,095) - (16,239) -
----------- ----------- ----------- -----------
Funds from
Operations
(FFO)(1) $ 6,810 $ 12,226 $ 14,057 $ 23,870
=========== =========== =========== ===========
FFO per share -
diluted $ 0.43 $ 0.76 $ 0.89 $ 1.48
=========== =========== =========== ===========
Weighted average
number of shares -
diluted 15,795,296 16,059,299 15,858,864 16,181,870
=========== =========== =========== ===========
(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.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion