CRESCENT REAL ESTATE EQUITIES, INC. ANNOUNCES OPERATING RESULTS FOR YEAR AND FOURTH QUARTER.NEW YORK--(BUSINESS WIRE)--Feb. 27, 1995-- Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Real Estate Equities, Inc. (NYSE NYSE See: New York Stock Exchange : CEI CEI Competitive Enterprise Institute CEI Conferenza Episcopale Italiana (Italian bishop conference) CEI Central European Initiative CEI Comitato Elettrotecnico Italiano (Italian Electrotechnical Committee) ), today announced its operating results for the quarter and year ended Dec. 31, 1994. Crescent's 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. for both the quarter and the year were in line with analyst expectations. Funds from operations, before minority interest, were $13.0 million, or $.58 per share and equivalent unit, in the fourth quarter of 1994. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma funds from operations, before minority interest, were $47.7 million, or $2.12 per share and equivalent unit for the year ended Dec. 31, 1994. The pro forma adjustments reflect the results of Crescent's operations as if the company's initial public offering and related transactions had been completed on Jan. 1, 1994. Fourth quarter net income was $2.9 million, or $.18 per share, compared with a net loss of $4.6 million in the fourth quarter of 1993. For the year ended Dec. 31, 1994, pro forma net income was $14.2 million, or $.89 per share compared to net income of $5.4 million for the year ended Dec. 31, 1993. The company paid a cash dividend of $.50 per share on Jan. 31, 1995, to shareholders of record on Jan. 18, 1995. The dividend is equivalent to an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. dividend of $2.00 per share and represents a 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. of approximately 86 percent of funds from operations, before minority interest, and 88 percent of cash available for distribution for the fourth quarter. The company will continue its established policy of reviewing its dividend rate quarterly. "We are very pleased with the results of our first year as a public company," commented John Goff
John William Goff (January 1 1848 - November 9 1924) was an Irish-born lawyer and judge also noted for his support of Fenian rebel movements. , chief executive officer. "Since our initial public offering in May 1994, we increased our total assets by 62 percent through the acquisition of $201 million of premier real estate properties, including six Class A office properties and a 295 room resort hotel. As a result of these acquisitions, the square footage of our office portfolio increased by 1.9 million square feet, or 62 percent, in the eight months since our initial public offering. We are excited about our growth prospects for 1995 in light of our expanding acquisition opportunities." The submarkets in which the company's office properties are located continue to strengthen. These eight submarkets have experienced an increase in weighted-average Class A office rental rates and 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 from $15.26 and 86 percent at Dec. 31, 1993, to $16.28 and 90 percent at Dec. 31, 1994. Particularly strong markets such as Las Colinas Las Colinas is a developed area in the Dallas suburb of Irving, Texas. Due to its central location between Dallas and Fort Worth and its proximity to DFW Airport, Las Colinas has been a viable place in the Metroplex for corporate and business relocation. , Texas, where the company is a dominant owner (Law) one who owns lands on which there is an easement owned by another. - Bouvier. See also: Dominant of Class A office space, have seen weighted-average Class A rental rates and occupancy increase from $14.72 and 90 percent at Dec. 31, 1993, to $16.38 and 93 percent at Dec. 31, 1994. "We believe that our submarkets provide significant potential for growth in rental rates due to declining market vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rates, low levels of construction activity and existing rental rates significantly below those required to justify new construction," stated Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. Haddock haddock: see cod. haddock Valuable North American food fish (Melanogrammus aeglefinus, family Gadidae). A bottom-dweller that feeds on invertebrates and fishes, it resembles the cod, with its chin barbel (fleshy feeler) and two anal and three dorsal , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Specifically, we believe Class A rental rates in our submarkets will increase substantially before new 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. office construction begins." Crescent is a fully integrated real estate company which, through the UPREIT operating partnership structure, conducts its business activities and owns and operates a diversified diversified (di·verˑ·s portfolio of real estate assets, including 11 Class A office properties and two retail centers comprising approximately 5.1 million square feet, economic interests in four single family residential land developments and a 295 room resort hotel. -0-
CRESCENT REAL ESTATE EQUITIES, INC.
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
QUARTER ENDED
DECEMBER 31,
1994 1993 (B)
---- --------
RENTAL REVENUES $ 21,876 $ 12,653
INTEREST AND OTHER INCOME 532 130
LOT SALES -- 1,836
RENTAL PROPERTY OPERATING EXPENSES 8,891 5,565
CORPORATE GENERAL AND ADMINISTRATIVE
EXPENSES 784 --
INTEREST EXPENSE 2,538 7,963
DEPRECIATION AND AMORTIZATION 6,817 4,718
RESIDENTIAL DEVELOPMENT EXPENSES -- 930
INCOME FROM INVESTMENTS IN
RESIDENTIAL DEVELOPMENT CORPORATIONS 676 --
MINORITY INTEREST (PARTNERSHIP UNITS) (1,165) --
NET INCOME (LOSS) $ 2,889 $ (4,557)
FUNDS FROM OPERATIONS BEFORE MINORITY
INTEREST (C) $ 12,962 --
WEIGHTED-AVERAGE SHARES (16,047) AND
UNITS (6,475) OUTSTANDING 22,522 --
PER SHARE DATA:
NET INCOME PER SHARE $ .18 --
FUNDS FROM OPERATIONS PER SHARE/UNIT $ .58 --
YEAR ENDED
DECEMBER 31,
1994 1994 1993
PRO FORMA (A) HISTORICAL (B) HISTORICAL (B)
------------- -------------- --------------
RENTAL REVENUES $ 70,264 $ 67,625 $ 48,232
INTEREST AND OTHER
INCOME 1,577 1,310 605
LOT SALES -- 2,593 8,331
RENTAL PROPERTY
OPERATING EXPENSES 27,431 27,689 21,230
CORPORATE GENERAL AND
ADMINISTRATIVE EXPENSES 2,639 1,815 --
INTEREST EXPENSE 3,603 8,360 29,226
DEPRECIATION AND
AMORTIZATION 23,171 22,971 18,081
RESIDENTIAL DEVELOPMENT
EXPENSES -- 1,428 4,077
WRITEDOWN OF INVESTMENT
PROPERTY -- -- 37,578
REORGANIZATION COSTS -- 1,900 --
INCOME FROM INVESTMENTS
IN RESIDENTIAL
DEVELOPMENT
CORPORATIONS 4,974 3,631 --
EXTRAORDINARY ITEMS -- (949) 58,390
MINORITY INTEREST
(PARTNERSHIP UNITS) (5,740) (3,346) --
NET INCOME $ 14,231 $ 6,701 $ 5,366
FUNDS FROM OPERATIONS
BEFORE MINORITY
INTEREST (C) $ 47,654 -- --
WEIGHTED-AVERAGE
SHARES (16,047) AND
UNITS (6,475)
OUTSTANDING 22,522 -- --
PER SHARE DATA:
NET INCOME PER SHARE $ .89 -- --
FUNDS FROM OPERATIONS
PER SHARE/UNIT $ 2.12 -- --
NOTES:
(A) Pro forma adjustments reflect results of operations as if the
initial public offering, repayment of mortgage debt and related
transactions had been completed on Jan. 1, 1994.
(B) Historical results for the three months ended Dec. 31, 1993
and for the years ended Dec. 31, 1994 and 1993 include the combined
operations of the company's predecessors. Therefore, per share data
and funds from operations are not meaningful and have not been
presented.
(C) "Funds from Operations," as defined by the National
Association of Real Estate Investment Trusts, means net income (loss)
(computed in accordance with generally accepted accounting
principles), excluding gains (or losses) from debt restructuring and
sales of property, plus depreciation and amortization, and after
adjustments for the company's unconsolidated investments in
residential development corporations. Funds from Operations does not
represent cash generated from operating activities in accordance with
generally accepted accounting principles (which, unlike Funds from
Operations, generally reflects all cash effects of transactions and
other events that enter into the determination of net income).
-0-
SUMMARIZED BALANCE SHEET INFORMATION (IN THOUSANDS) (UNAUDITED) DECEMBER December: see month. 31, 1994 1993 ---- ---- CASH AND CASH EQUIVALENTS $ 30,247 $ 24,897 INVESTMENT PROPERTIES, NET 410,745 227,329 TOTAL ASSETS 538,354 290,869 MORTGAGES AND NOTES PAYABLE 194,642 278,060 CONTACT: Crescent Real Estate Equities Inc., 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 Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. Lucas Lucas (l  `kəs), variant of Luke. , chief financial officer, 212/836-4216
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