Brandywine Realty Trust Announces Second Quarter 2006 Earnings.RADNOR Radnor may refer to:
See: New York Stock Exchange :BDN BDN Borland Developer Network BDN Bangor Daily News (Maine, USA) BDN Business Development Network BDN Bell Data Network BDN Bulk Data Network BDN Busy Doing Nothing (band) BDN Buffered Delta Network ) announced today that 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 ) was $57.0 million or $0.60 per 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. share for the second quarter of 2006 compared to $35.3 million or $0.61 per share for the second quarter of 2005. FFO represents a non-generally accepted accounting principle (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) financial measure. A table reconciling FFO to net income, the GAAP measure that the Company believes to be most directly comparable, is within the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge included in this release. Diluted earnings (loss) per share (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. ) was $(0.15) for the second quarter of 2006, a decrease of $0.27 per share as compared to $0.12 for the second quarter of 2005. Net income (loss) was $(11.6) million for the second quarter, a decrease of $20.5 million as compared to $8.9 million for the second quarter of 2005. A significant contribution to the change in net income in the second quarter of 2006 as compared to the second quarter of 2005 is the $44.0 million increase in depreciation and amortization expense. This increase is primarily the result of the depreciation/amortization of the tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. acquired in connection with the January January: see month. 5, 2006 Prentiss transaction and accelerated depreciation Accelerated Depreciation Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset. Notes: The straight-line depreciation method spreads the cost evenly over the life of an asset. associated with the planned demolition Demolition is the opposite of construction: the tearing-down of buildings and other structures. It contrasts with deconstruction, which is the taking down of a building while carefully preserving valuable elements for re-use. of an existing building as part of an office park development in suburban Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. . Brandywine Bran·dy·wine A creek of southeast Pennsylvania and northern Delaware. It was the site of a major defeat of the Continental Army on September 11, 1777, thus allowing British troops to enter Philadelphia on September 27. President and Chief Executive Officer, Gerard Gerard is a male forename of Germanic origin, variations of which exist in many Germanic and Romance languages. The name derives from Old Germanic 'ger' ('spear') and 'hard' ('hard/strong/brave'). Its meaning is 'strong/brave with the spear'. H. Sweeney Sweeney in poems by T. S. Eliot, symbolizes the sensual, brutal, and materialistic 20th-century man. [Br. Poetry, Benét, 978] See : Virility , commented, "We are pleased to report our second quarter results that show continued improvement in leasing activity, portfolio absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. and tenant retention. Additionally, both our integration and development programs are progressing on schedule. Market conditions, while remaining competitive, are improving throughout all of our regions and we are well prepared to continue the successful execution of our business plan." Brandywine Realty Trust Summary Portfolio Performance --FFO payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. was 73.2% for the quarter --Quarterly rental rates on renewals declined 2.8% on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis --Quarterly retention rate was 83.0% --Portfolio was 91.6% occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. and 93.1% leased as of June June: see month. 30, 2006 --Leases expired 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. or were terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 893,000 square feet during the quarter --Leases were 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. for approximately 741,000 square feet during the quarter --New leases were signed for approximately 406,000 square feet during the quarter Distributions On June 15, 2006, the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a regular quarterly dividend distribution of $0.44 per common share that was paid July July: see month. 17, 2006 to shareholders of record as of July 6, 2006. The Company also declared its dividend for the second quarter of $0.46875 per 7.50% Series C Cumulative Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Share and $0.460938 per 7.375% Series D Cumulative Redeemable Preferred Share that was paid on July 17, 2006 to holders of record of the Series C and Series D Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. as of June 30, 2006. 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 The Company repurchased 1,180,200 shares during the second quarter of 2006 for an aggregate $34.4 million under its approved share repurchase program. As of June 30, 2006, the Company may purchase an additional 2,319,800 shares under the plan. Repurchases may be made from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share repurchase program does not contain any time limitation and does not obligate obligate /ob·li·gate/ (ob´li-gat) pertaining to or characterized by the ability to survive only in a particular environment or to assume only a particular role, as an obligate anaerobe. the Company to 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. any shares. The Company may discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the program at any time. 2006 Financial Outlook The Company's 2006 financial outlook continues to be predicated upon the following key and variable assumptions: --The historic Brandywine same-store portfolio to achieve the following percentage changes from 2005 results:
-- GAAP rents and reimbursements (not including termination
fees) to increase 1.25% to 1.75%
-- Net operating income to decline 0.5% to 2.0%
-- Average occupancy to range from unchanged to an increase
of 1.0%
The Company's expected contribution from the Prentiss acquisition is a result of the following: --Property level average 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 to grow 2.5% to 3.0% from year end 2005 levels and cash rents to decline 3.0% to 7.0% from their previous levels --A stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. addition to our G&A of $10 million, inclusive of inclusive of prep. Taking into consideration or account; including. synergies in connection with the merger In addition to these operating expectations, the Company's financial forecast includes the following key and variable development and acquisition/disposition assumptions: --Completion of the previously announced development and re-development projects --Net dispositions of approximately $150-200 million during the balance of 2006 Based on these key assumptions, we affirm our 2006 FFO guidance from our May 2, 2006 press release and expect our full year 2006 EPS to be $(0.26) to $(0.19) and FFO per share to be $2.50 to $2.58. We are introducing third quarter 2006 guidance and expect FFO per share to be $0.64 to $0.66 and EPS to be $(0.04) to $(0.02). These estimates may be positively or negatively impacted primarily by the timing and terms of property leases, and actual operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and interest rates as compared to our forecast. 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. Estimates of future earnings per share and FFO per share and certain other statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: the Company's ability to lease vacant space and to renew or relet space under 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. leases at expected levels, competition with other real estate companies for tenants, the potential loss or bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of major tenants, interest rate levels, the availability of debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , competition for real estate acquisitions and risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor , unanticipated operating and capital costs, the Company's ability to obtain adequate insurance, including coverage for terrorist acts, dependence upon certain geographic markets, and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which the Company's tenants compete. Additional information on factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report for the year ended December December: see month. 31, 2005. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events. Non-GAAP Supplemental Financial Measures Funds from Operations (FFO) FFO is a widely recognized measure of REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors. The Company computes FFO 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 standards established by the National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ), which may not be comparable to FFO reported by other REITs that do not compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company. NAREIT defines FFO as net income (loss) before minority interest of unit holders (preferred and common) and excluding gains (losses) on sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. operating property and extraordinary items (computed in accordance with GAAP); plus real estate related depreciation and amortization (excluding amortization of deferred financing costs), and after adjustment for unconsolidated joint ventures. The GAAP measure that the Company believes to be most directly comparable to FFO, net income, includes depreciation and amortization expenses, gains or losses on property sales and minority interest. In computing computing - computer FFO, the Company eliminates substantially all of these items because, in the Company's view, they are not indicative of the results from the Company's property operations. To facilitate a clear understanding of the Company's historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in the financial statements included elsewhere in this release. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions to shareholders. Cash Available for Distribution (CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ) Cash available for distribution, CAD, is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies. Second Quarter Earnings Call and Supplemental Information Package The Company will be hosting a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July 28, 2006 at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The conference call can be accessed by calling 1-888-889-5602. After the conference, a taped replay of the call can be accessed 24 hours a day through Friday, August 11, 2006 by calling 1-877-519-4471 -- access code 7536675. In addition, the conference call can be accessed via a webcast located on the Company's website at www.brandywinerealty.com. The Company has prepared a Supplemental Information package that includes financial results and operational statistics to support the announcement of second quarter earnings. The Supplemental Information package is available through the Company's website at www.brandywinerealty.com. The Supplemental Information package can be found in the "Investor Relations Investor relations The process by which the corporation communicates with its investors. - Financial Reports" section of the web page. About Brandywine Realty Trust Brandywine Realty Trust (NYSE: BDN), with headquarters in Radnor, PA, is one of the largest full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. , completely integrated real estate companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Organized as a real estate investment trust (REIT), Brandywine owns, manages or has ownership interest in office and industrial properties aggregating 46 million square feet. For more information, visit Brandywine's website at www.brandywinerealty.com.
BRANDYWINE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
June 30, December 31,
2006 2005
------------- -------------
ASSETS
Real estate investments:
Operating properties $ 4,688,560 $ 2,560,061
Accumulated depreciation (467,969) (390,333)
------------- -------------
4,220,591 2,169,728
Construction-in-progress 327,975 273,240
Land held for development 124,787 98,518
------------- -------------
4,673,353 2,541,486
Cash and cash equivalents 26,377 7,174
Escrowed cash 22,006 18,497
Accounts receivable, net 18,781 12,874
Accrued rent receivable, net 61,787 47,034
Investment in marketable securities 188,035 -
Assets held for sale 86,128 -
Investment in real estate ventures 78,480 13,331
Deferred costs, net 52,056 37,602
Intangible assets, net 338,537 78,097
Other assets 46,373 49,649
------------- -------------
Total assets $ 5,591,913 $ 2,805,744
============= =============
LIABILITIES AND BENEFICIARIES' EQUITY
Mortgage notes payable $ 901,064 $ 494,777
Secured note payable 183,199 -
Borrowings under credit facilities 195,000 90,000
Unsecured senior notes, net of discounts 1,863,062 936,607
Accounts payable and accrued expenses 95,216 52,635
Distributions payable 43,629 28,880
Tenant security deposits and deferred
rents 37,350 20,953
Acquired lease intangibles, net 102,170 34,704
Other liabilities 7,870 4,466
Mortgage note payable and other
liabilities held for sale 15,411 -
------------- -------------
Total liabilities 3,443,971 1,663,022
Minority interest 138,046 37,859
Beneficiaries' equity:
Preferred shares - Series C 20 20
Preferred shares - Series D 23 23
Common shares 900 562
Additional paid-in capital 2,367,341 1,369,913
Cumulative earnings 399,083 413,281
Accumulated other comprehensive (income)
loss 980 (3,169)
Cumulative distributions (758,451) (675,767)
------------- -------------
Total beneficiaries' equity 2,009,896 1,104,863
------------- -------------
2,147,942 1,142,722
------------- -------------
Total liabilities and beneficiaries'
equity $ 5,591,913 $ 2,805,744
============= =============
BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)
Three Months Ended Six Months Ended
------------------------- -------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenue
Rents $ 149,554 $ 81,656 $ 290,639 $ 162,884
Tenant
reimbursements 16,749 11,037 34,641 23,119
Other 4,668 2,774 9,047 8,790
------------ ------------ ------------ ------------
Total revenue 170,971 95,467 334,327 194,793
Operating
Expenses
Property
operating
expenses 48,962 27,695 97,155 57,574
Real estate
taxes 16,684 9,598 33,230 19,255
Depreciation
and
amortization 71,834 27,820 132,168 56,255
Administrative
expenses 7,724 4,378 16,214 9,130
------------ ------------ ------------ ------------
Total
operating
expenses 145,204 69,491 278,767 142,214
------------ ------------ ------------ ------------
Operating income 25,767 25,976 55,560 52,579
Other income
(expense)
Interest income 2,573 284 5,223 662
Interest
expense (42,500) (17,807) (83,467) (35,604)
Equity in
income of real
estate
ventures 463 993 1,428 1,551
Net gain on
sale of
interests in
real estate 2,608 - 2,608 -
------------ ------------ ------------ ------------
Income (loss)
before minority
interest (11,089) 9,446 (18,648) 19,188
Minority
interest -
partners' share
of consolidated
real estate
ventures 84 - 370 -
Minority interest
attributable to
continuing
operations - LP
units 476 (381) 895 (708)
------------ ------------ ------------ ------------
Income (loss)
from continuing
operations (10,529) 9,065 (17,383) 18,480
Discontinued
operations:
Income from
discontinued
operations (870) (140) 3,728 (140)
Minority
interest -
partners'
share of
consolidated
real estate
venture (195) - (382) -
Minority
interest
attributable
to
discontinued
operations -
LP units 38 5 (161) 5
------------ ------------ ------------ ------------
(1,027) (135) 3,185 (135)
------------ ------------ ------------ ------------
Net income (loss) (11,556) 8,930 (14,198) 18,345
Income allocated
to Preferred
Shares (1,998) (1,998) (3,996) (3,996)
------------ ------------ ------------ ------------
Income (loss)
allocated to
Common Shares $ (13,554) $ 6,932 $ (18,194) $ 14,349
============ ============ ============ ============
PER SHARE DATA
Basic income
(loss) per
Common Share $ (0.15) $ 0.12 $ (0.20) $ 0.26
============ ============ ============ ============
Basic weighted-
average shares
outstanding 90,540,237 55,681,668 89,923,528 55,562,384
Diluted income
(loss) per
Common Share $ (0.15) $ 0.12 $ (0.20) $ 0.26
============ ============ ============ ============
Diluted weighted-
average shares
outstanding 90,816,019 55,844,239 90,202,854 55,786,070
BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except share and per share data)
Three Months Ended
-------------------------
6/30/06 6/30/05
------------ ------------
Reconciliation of Net Income to Funds from
Operations (FFO):
Net income (loss) $ (11,556) $ 8,930
Add (deduct):
Minority interest attributable to
continuing operations - LP units (476) 381
Net gains on sale of interests in real
estate (2,608) -
Minority interest attributable to
discontinued operations - LP units (38) (5)
------------ ------------
Income (loss) before net gains on sale of
interests in real estate and minority
interest (14,678) 9,306
Add:
Depreciation:
Real property - continuing operations 51,677 19,981
Real property - discontinued
operations 2,056 -
Company's share of unconsolidated real
estate ventures 1,852 576
Partners' share of consolidated real
estate ventures (1,696) -
Amortization of leasing costs (includes
acquired intangibles) 19,874 7,419
Perpetual Preferred Share distributions (1,998) (1,998)
------------ ------------
Funds from operations (FFO) $ 57,087 $ 35,284
============ ============
FFO per share - fully diluted $ 0.60 $ 0.61
============ ============
Weighted-average shares/units
outstanding - fully diluted 94,929,355 57,897,198
EPS - diluted $ (0.15) $ 0.12
============ ============
Weighted-average shares outstanding - fully
diluted 90,816,019 55,844,239
Dividend per Common Share $ 0.44 $ 0.44
============ ============
Payout ratio of FFO (Dividend per Common
Share divided by FFO per Share) 73.2% 72.2%
CASH AVAILABLE FOR DISTRIBUTION (CAD):
FFO $ 57,087 $ 35,284
Add (deduct):
Rental income from straight-line rents (8,209) (3,225)
Deferred market rental income (1,968) (283)
Amortization:
Deferred financing costs 794 487
Deferred compensation costs 670 696
Second generation capital
expenditures (1):
Building improvements (2) (2,327) -
Tenant improvements (7,677) (9,108)
Lease commissions (2,524) (1,076)
------------ ------------
Cash available for distribution $ 35,846 $ 22,775
============ ============
Weighted-average shares/units
outstanding - fully diluted 94,929,355 57,897,198
Dividend per Common Share $ 0.44 $ 0.44
============ ============
Cash flows from:
Operating activities $ 70,678 $ 35,884
Investing activities (89,470) (77,465)
Financing activities 8,869 35,428
(1) Represents expenditures incurred during the period (regardless if
lease commencement is after quarter end). Excludes first
generation costs, which consist of capital expenditures, tenant
improvements and leasing commissions associated with development
and purchase price adjustments relating to acquisitions (including
seller escrows, purchase price reduction or costs anticipated to
initially lease-up acquired properties).
(2) Building improvements and tenant improvements are combined for all
periods prior to 3/31/06.
BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - QUARTER
(unaudited and in thousands)
Of the 318 Properties owned by the Company as of June 30, 2006, a
total of 240 Properties ("Same Store Properties") containing an
aggregate of 18.0 million net rentable square feet were owned for the
entire three-month periods ended June 30, 2006 and 2005.
Average occupancy for the Same Store Properties was 92.5% during 2006
and 91.2% during 2005. The following table sets forth revenue and
expense information for the Same Store Properties:
Quarter Ended June 30,
-----------------------
2006 2005
----------- -----------
Revenue
Rents (a) $ 80,191 $ 79,240
Tenant reimbursements 9,651 11,138
Other (b) 1,685 1,579
----------- -----------
91,527 91,957
Operating expenses
Property operating expenses 27,789 28,343
Real estate taxes 9,135 8,649
----------- -----------
36,924 36,992
----------- -----------
Net operating income $ 54,603 $ 54,965
=========== ===========
(a) Includes straight-line rental income of $2,399 for 2006 and $2,465
for 2005
(b) Includes net termination fee income of $1,069 for 2006 and $857
for 2005
The following table is a reconciliation of Net Income to Same Store
net operating income:
Quarter Ended June 30,
-----------------------
2006 2005
----------- -----------
Net Income (loss) $ (11,556) $ 8,930
Add/(deduct):
Interest income (2,573) (284)
Interest expense 42,500 17,807
Equity in income of real estate ventures (463) (993)
Depreciation and amortization 71,834 27,820
Net gain on sale of interests in real
estate -- discontinued operations (2,608) -
Minority interest - partners' share of
consolidated real estate ventures (84) -
Minority interest attributable to
continuing operations - LP units (476) 381
Income from discontinued operations 1,027 135
----------- -----------
Consolidated net operating income (loss) 97,601 53,796
Less: Net operating income of non same store
properties (45,017) 17
Less: Eliminations and non-property specific
net operating income (loss) 2,019 1,152
----------- -----------
Same Store net operating income (loss) $ 54,603 $ 54,965
=========== ===========
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