Bedford Property Investors Announces Third Quarter 2002 Results.Business Editors 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.--(BUSINESS WIRE)--Oct. 21, 2002 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 financial results for the third quarter ended September September: see month. 30, 2002. 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 (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. ) were $0.60, reflecting an increase of 22% over the same period in 2001. 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 were $0.76, reflecting an increase of 5% over the same period in 2001. Financial Results Net income for the third quarter of 2002 was $10,036,000 or $0.60 per share 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. This amount included a gain on the sale of operating properties of $1,777,000 or $0.11 per share. Excluding the gain on sale of operating properties, net income per diluted share was $0.49 for the third quarter of 2002, unchanged from the third quarter of 2001. Net income for the nine months of 2002 was $28,468,000 or $1.71 per share on a diluted basis. This amount included a gain on the sale of operating properties of $3,575,000 or $0.22 per share. Excluding the gain on sale of operating properties, net income per diluted share was $1.49 for the nine months of 2002, reflecting an increase of $0.22 or 17% over the same period in 2001. FFO for the third quarter of 2002 was $12,662,000 or $0.76 per share compared to $12,296,000 or $0.72 per share for the same period in 2001. This represents an increase of 5% in FFO per share. FFO for the nine months of 2002 was $37,569,000 or $2.26 per share compared to $33,634,000 or $1.94 per share for the same period in 2001. This represents an increase of 16% in FFO per share. The growth in EPS and FFO per share for the nine months of 2002 over the same period of 2001 is partially due to our 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. of approximately 1.4 million shares of our common stock in 2001, lower interest expense as a result of reduced interest rates, and lower general and administrative expenses. The calculation of the diluted weighted average number of shares in 2001 and the first quarter of 2002 includes partnership units that were fully 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. in the first quarter of 2002, the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of stock options, and restricted stock grants. FFO is defined as net income, excluding extraordinary items and gains or losses from sales of property and depreciation and amortization of assets related to real estate. Property Operations At September 30, 2002, our operating portfolio occupancy was 93%, a decrease of one percentage point from the prior quarter, and down three percentage points from 2001 year end. Occupancy at our same-store operating properties, which consist of approximately 6.3 million rentable square feet or 89% of the square footage of our operating portfolio, was 95%. Same store 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. stayed relatively flat on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis (0.7% decrease) and on a cash basis (0.9% increase). During the quarter we renewed and released 15 leases totaling 139,000 square feet, which represented 80% 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. We renewed a 71,000 square foot lease in the Silicon Valley at $1.00 per square foot per month from $1.48 per square foot per month. Because of its size, one lease renewal resulted in a 19% decrease of the weighted average rental rate of all renewals during the quarter. Without the impact of this transaction, weighted average rental rates increased 4.4% over the quarter. For the nine months ended September 30, 2002, we renewed and released 88% of the expiring square footage at a 5% decrease in the weighted average rental rate, reflecting the impact of this 71,000 square foot lease renewal in the Silicon Valley. Property Acquisitions and Dispositions During the quarter, we purchased 544,426 square feet of operating properties and a 5.2 acre parcel of land for a total price of $87.5 million. The operating properties are expected to generate a cash yield averaging 9.7% for the first year. The acquisitions were funded with debt and proceeds from the sale of real estate assets. During the third quarter of 2002, we sold a 102,291 square foot, three-building complex in Monterey, California For other uses, see Monterey (disambiguation). The City of Monterey is located on Monterey Bay along the Pacific coast in central California. As of 2005, the city population was 30,641. for $12.8 million and realized approximately $1.8 million of gain on the sale. Financing In July July: see month. 2002, we closed a $40 million unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. bridge facility with a six-month term, two three-month options to extend, and an interest rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 1.55% (3.28% at September 30, 2002). In October October: see month. 2002, we obtained a $22,600,000 new mortgage from Nationwide Life Insurance Company. The loan has a nine-year term and carries a fixed interest rate of 4.61% for the first three years, with resets in years three and six. At the time of each reset, we have the option to pay off the loan without penalty. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. From January January: see month. 1, 2002 through September 30, 2002, we repurchased 54,367 shares of our common stock at an average cost of $24.10 per share. 29,397 shares were repurchased in the third quarter of 2002 at an average cost of $24.16 per share. Since the inception of our repurchase program in November November: see month. 1998, we have repurchased a total of 7,187,222 shares at an average cost of $17.95 per share, which represents 32% of the shares outstanding at November 1998. In January 2002, our board of directors increased the maximum size of our 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 from 8 million to 10 million shares. Company Information We are a self-administered equity real estate investment trust that acquires, develops, owns and operates suburban office and industrial properties. Currently, we wholly own and manage approximately 7.1 million square feet of commercial space located in 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). , 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). , Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. and 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). . On September 30, 2002 we had 429 tenants. Our company is 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, October 22, 2002 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 800/305-1078 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 888/266-2081 (Passcode #6237521). Please note: This press release contains 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 Section 21E of the Securities Exchange Act of 1934 that represent our current expectations and beliefs, including, among other things, our current expectations concerning the first year cash yield from newly acquired properties. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to be materially different from those expressed, expected or implied by the forward-looking statements. The risks and uncertainties that could cause actual results to differ from management's estimates and expectations are contained in our filings with the Securities and Exchange Commission, including our 2001 Annual Report on Form 10-K/A and our most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. . We do not undertake to update forward-looking information contained herein or elsewhere to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. -Financial Tables Follow-
BEDFORD PROPERTY INVESTORS, INC.
BALANCE SHEETS (Unaudited)
(in thousands, except share and per share amounts)
Sept. 30, Dec. 31,
2002 2001
Assets:
Real estate investments:
Industrial buildings $ 373,095 $ 303,169
Office buildings 335,013 326,459
Operating properties held for sale -- 11,036
Properties under development 1,445 --
Land held for development 13,654 13,398
--------- ---------
723,207 654,062
Less accumulated depreciation 58,243 48,984
--------- ---------
Total real estate investments 664,964 605,078
Cash and cash equivalents 2,104 5,512
Other assets 21,055 20,215
--------- ---------
$ 688,123 $ 630,805
========= =========
Liabilities and Stockholders' Equity:
Bank loan payable $ 135,095 $ 80,925
Mortgage loans payable 238,260 242,066
Accounts payable and accrued expenses 9,792 11,653
Dividend and distributions payable 8,375 7,962
Other liabilities 12,632 11,184
--------- ---------
Total liabilities 404,154 353,790
--------- ---------
Minority interest in consolidated partnership -- 1,135
--------- ---------
Stockholders' equity:
Common stock, par value $0.02 per share;
authorized 50,000,000 shares; issued and
outstanding 16,750,783 shares in 2002 and
16,515,200 shares in 2001 335 330
Additional paid-in capital 296,461 292,731
Accumulated dividends in
excess of net income (12,827) (16,871)
Accumulated other
comprehensive loss -- (310)
--------- ---------
Total stockholders' equity 283,969 275,880
--------- ---------
$ 688,123 $ 630,805
========= =========
BEDFORD PROPERTY INVESTORS, INC.
STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited) (in thousands, except share and per share amounts)
Three Months Nine Months
2002 2001 2002 2001
(Restated)*
Property operations:
Rental income $ 25,655 $ 24,188 $ 73,782 $ 71,546
Rental expenses:
Operating
expenses 4,339 3,958 12,443 11,636
Real estate taxes 2,382 2,238 6,727 6,635
Depreciation and
amortization 4,403 3,819 12,231 11,331
----------- ----------- ------------ -----------
Income from
property
operations 14,531 14,173 42,381 41,944
General and
administrative
expenses (1,478) (1,048) (3,509) (5,101)
Interest income 66 57 151 160
Interest expense (5,087) (5,224) (14,896) (16,217)
----------- ----------- ------------ -----------
Income from
continuing
operations
before minority
interest 8,032 7,958 24,127 20,786
Minority interest -- (38) -- (108)
----------- ----------- ------------ -----------
Income from
continuing
operations 8,032 7,920 24,127 20,678
----------- ----------- ------------ -----------
Discontinued
operations:
Income from
operating
properties
sold, net 227 432 766 1,203
Gain on sale of
operating
properties 1,777 -- 3,575 --
----------- ----------- ------------ -----------
Income from
discontinued
operations 2,004 432 4,341 1,203
----------- ----------- ------------ -----------
Net income $ 10,036 $ 8,352 $ 28,468 $ 21,881
=========== =========== ============ ===========
Earnings per
share - basic
Income from
continuing
operations $ 0.49 $ 0.48 $ 1.48 $ 1.22
Income from
discontinued
operations 0.12 0.02 0.27 0.07
----------- ----------- ------------ -----------
Net income $ 0.61 $ 0.50 $ 1.75 $ 1.29
=========== =========== ============ ===========
Weighted average
number of
shares - basic 16,327,406 16,571,487 16,258,442 16,948,064
=========== =========== =========== ===========
Earnings per
share - diluted
Income from
continuing
operations $ 0.48 $ 0.47 $ 1.45 $ 1.20
Income from
discontinued
operations 0.12 0.02 0.26 0.07
----------- ----------- ------------ -----------
Net income $ 0.60 $ 0.49 $ 1.71 $ 1.27
=========== =========== =========== ===========
Weighted average
number of
shares - diluted 16,626,201 17,006,453 16,624,449 17,314,610
=========== =========== =========== ===========
* Individual 2001 quarterly results comprising this cumulative
balance have previously been restated pursuant to guidance
provided in the Company's press release dated August 14, 2002 and
as described in the Form 10-K/A filed with the SEC on August 23,
2002.
BEDFORD PROPERTY INVESTORS, INC.
FUNDS FROM OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
(in thousands, except share and per share amounts)
Three Months Nine Months
2002 2001 2002 2001
(Restated)* (Restated)*
Net income $ 10,036 $ 8,352 $ 28,468 $ 21,881
Adjustments:
Depreciation
and
amortization:
Continuing
operations 4,403 3,819 12,231 11,331
Discontinued
operations -- 87 445 314
Minority interest -- 38 -- 108
Gain on sale of
operating
properties (1,777) -- (3,575) --
----------- ----------- ----------- ------------
Funds From
Operations
(FFO) $ 12,662 $ 12,296 $ 37,569 $ 33,634
=========== =========== =========== ============
FFO per
share
- diluted $ 0.76 $ 0.72 $ 2.26 $ 1.94
=========== =========== =========== ============
Weighted
average
number
of shares
- diluted 16,626,201 17,006,453 16,624,449 17,314,610
=========== =========== =========== ============
* Restated to present these periods consistent with the guidance
provided in the Company's press release dated August 14, 2002.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion