Bedford Property Investors Announces Third Quarter 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.--(BUSINESS WIRE)--Oct. 19, 1998--Bedford Property Investors, Inc. (NYSE NYSE See: New York Stock Exchange :BED) announced earnings and 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 ) for the third quarter and the nine months ended September September: see month. 30, 1998. The Company reported income before gain on sale of real estate investments for the third quarter of 1998 of $7,928,000 on rental revenues of $20,156,000, an increase of 59% when compared with income before gain on sale of real estate investments of $4,994,000 on rental revenues of $12,789,000 for the third quarter of 1997. For the nine months ended September 30, 1998, income before gain on sale of real estate investments was $23,253,000 on rental revenues of $52,635,000, an increase of 72% when compared with income before gain on sale of real estate investments of $13,509,000 on rental revenues of $32,472,000 for the nine months ended September 30, 1997. FFO for the third quarter of 1998 was $10,896,000, an increase of 66% when compared with $6,550,000 for the third quarter of 1997. FFO for the nine months ended September 30, 1998 was $30,646,000, an increase of 75% when compared with $17,490,000 for the nine months ended September 30, 1997. 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, FFO for the third quarter 1998 was $0.48 per share, an increase of 14% when compared with $0.42 per share for the third quarter of 1997; FFO for the nine months ended September 30, 1998, was $1.34 per share, an increase of 15% when compared with $1.17 per share for the nine months ended September 30, 1997. The calculation of the diluted weighted average number of shares for the three and nine month periods assumes the conversion of the Company's Series A Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". at a conversion rate of two shares of 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. for one share of common stock prior to its actual conversion in October October: see month. 1997, and the conversion of partnership units, issued in connection with a property acquisition by the Company in December December: see month. 1996, at a conversion rate of one partnership unit for one share of common stock. FFO is defined as net income, excluding gains or losses from debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and sales of property, plus depreciation and amortization of assets related to real estate. The Company also announced today that it is engaged in preliminary discussions with a third party related to the acquisition by such party of substantially all of the Company's portfolio of suburban office buildings and industrial properties. The Company cautioned, however, that there can be no assurances that the current discussions will result in any definitive agreement or, if they do, that any transaction will be completed. The Company currently does not intend to make any additional announcements related to the pending discussions until definitive agreements for a transaction have been signed or such discussions are terminated. 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 is a self-administered equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) with investments in suburban office buildings and industrial properties concentrated 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 . The Company currently owns 67 industrial and 23 suburban office properties totaling 7.3 million rentable square feet. Headquartered in Lafayette, California Lafayette is a city in Contra Costa County, California, United States. As of the 2000 census, the city's population was 23,908. It is named (in 1857) after the Marquis de Lafayette, a French military hero of the American Revolutionary War. , the Company's common stock is traded on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Pacific Exchanges under the symbol "BED" and its web site is www.bedfordproperty.com. This press release contains statements that are 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, which represent the Company's expectations or beliefs concerning future events. The Company cautions that these statements are further qualified by important factors, including, but not limited to factors set forth in the Company's filings with the Securities and Exchange Commission, including the Company's final Prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. from its last equity offering, dated November November: see month. 3, 1997 and its 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 ended December 31, 1997, that could cause actual results to differ materially from those in the forward-looking statements. -0-
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share amounts)
Sept. 30, Dec. 31,
1998 1997
Assets:
Industrial buildings $ 306,734 $ 237,184
Office buildings 257,779 170,948
Properties under development 17,555 18,227
Land held for development 5,176 5,712
--------- ---------
587,244 432,071
Less accumulated depreciation 15,782 8,985
--------- ---------
571,462 423,086
Cash 1,660 1,361
Other Assets 14,734 9,456
--------- ---------
$ 587,856 $ 433,903
Liabilities and Stockholders' Equity:
Bank loan payable $137,410 $ 8,216
Mortgage loans payable 80,437 60,323
Accounts payable and accrued expenses 8,292 6,026
Dividend and distributions payable 7,505 6,804
Other liabilities 4,474 4,611
--------- ---------
Total liabilities 238,118 85,980
Minority interest in consolidated
partnership 1,369 1,497
Stockholders' equity:
Common stock, par value $0.02 per share;
authorized 50,000,000 shares; issued
and outstanding 22,655,028 shares in
1998 and 22,583,867 shares in 1997 453 452
Additional paid-in capital 408,623 408,209
Accumulated dividends in excess of net
income (60,707) (62,235)
Total common stock and other
stockholders' equity 348,369 346,426
--------- ---------
$ 587,856 $ 433,903
BEDFORD PROPERTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1998 AND 1997
(Unaudited)
(in thousands, except share and per share amounts)
Three Months Nine Months
1998 1997 1998 1997
Property operations:
Rental income $20,156 $12,789 $52,635 $32,472
Rental expenses:
Operating expenses 3,322 1,973 7,925 4,996
Real estate taxes 1,704 993 4,393 2,708
Depreciation and
amortization 2,939 1,528 7,307 3,902
Income from property
operations 12,191 8,295 33,010 20,866
General and administrative
expenses (655) (469) (2,369) (1,586)
Interest income 85 73 178 217
Interest expense (3,664) (2,877) (7,480) (5,909)
Income before minority
interest and gain on sale 7,957 5,022 23,339 13,588
Gain on sale of real estate
investments -- 10,787 -- 10,787
Minority interest (29) (28) (86) (79)
Net income $ 7,928 $15,781 $23,253 $24,296
Net income applicable to
common stockholders $ 7,928 $14,531 $23,253 $20,796
Basic earnings per share $ 0.35 $ 1.30 $ 1.03 $ 2.00
Weighted average number
of shares 22,649,403 11,158,953 22,616,558 10,416,729
Earnings per common share
-- assuming dilution $ 0.35 $ 1.01 $ 1.02 $ 1.64
Weighted average number of
common shares -- assuming
dilution 22,926,125 15,648,133 22,934,296 14,905,299
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