Cali Realty Corp. announces fourth quarter and year end results for 1996; 1996 Funds from Operations (FFO) Increased by 9% from 1995.CRANFORD Cranford can mean:
REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Corporation (NYSE NYSE See: New York Stock Exchange :CLI (1) (Call Level Interface) A database programming interface from the SQL Access Group (SAG), an SQL membership organization. SAG's CLI is an attempt to standardize the SQL language for database access. ) today announced its results for the fourth quarter and the full year 1996. The Company's full year 1996 FFO FFO See: Funds from operations per share increased nine percent over 1995. Commenting on the results, Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs A. Rizk, President and Chief Executive Officer, said "1996 was another successful year for Cali as we further implemented our focused strategy of becoming a super-regional REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). . Our 1996 improved performance came as a result of an aggressive and successful acquisition program." Cali Realty Corporation is a fully integrated, self-administered, publicly-owned real estate investment trust ("REIT"). Financial Highlights For the quarter ended December December: see month. 31, 1996, FFO before minority interest and after adjustment for straight-lining of rents amounted to $15.2 million or $.52 per share versus $8.1 million or $.51 per share for the quarter ended December 31, 1995. For the year ended December 31, 1996, FFO before minority interest and after adjustment for straight-lining of rents amounted to $45.2 million or $2.14 per share versus $27.4 million or $1.96 per share for the year ended December 31, 1995. For the quarter ended December 31, 1996, cash available for distribution equaled $14.2 million or $.49 per share versus $7.5 million or $.47 per share for the same period last year. For the year ended December 31, 1996, cash available for distribution equaled $40.9 million or $1.93 per share versus $25.1 million or $1.79 per share for 1995. For the quarter ended December 31, 1996, revenues totaled $32.4 million versus revenues of $17.5 million for the quarter ended December 31, 1995. For the year ended December 31, 1996, revenues totaled $95.5 million versus revenues of $62.3 million for the year ended December 31, 1995. For the quarter ended December 31, 1996, net income before minority interest totaled $11.1 million or $.39 per share versus net income before minority interest of $5.0 million or $.31 per share for the quarter ended December 31, 1995. For the year ended December 31, 1996, income before gain on sale of property, minority interest, and extraordinary item totaled $31.5 million or $1.49 per share versus $17.1 million or $1.23 per share for the year ended December 31, 1995. Summary of 1996 Accomplishments Commenting on the Company's recent activities, Rizk said, "The past year, and particularly the last few months, has been a period of tremendous accomplishments for Cali. The Robert Martin Robert J. Martin (born January 13, 1947) is an American Republican Party politician, who has served as a member of the New Jersey State Senate since 1993, where he represents the 26th Legislative District. transaction culminated a six month period in which the Company completed $850 million in transactions, raised $545 million in equity capital, and geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge established itself as the northeast's premier super-regional REIT." Acquisitions and New Markets: In 1996, Cali purchased 15 properties aggregating approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3.3 million square feet, plus land to accommodate in excess of 4 million square feet of development, for a total cost of $459 million. Cali's most notable acquisition was the purchase of the Harborside har·bor·side n. The area adjacent to a harbor. Financial Center, a 1.9 million square foot office complex in Jersey City, NJ, for $292.6 million. Recognized by many as the largest commercial real estate transaction in New Jersey history, this purchase solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. the Company as the dominant landlord in the Jersey City office market. In addition to Cali's 600,000 square foot International Financial Tower office building, Harborside gives Cali control of 40 percent of the Class A office space in one of the highest performing sub-markets in New Jersey. In connection with the acquisition, Cali assumed $150 million in mortgage debt. In 1996, Cali expanded into the 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. office market, acquiring seven office properties totaling over 760,000 square feet. Equity Offerings: Cali's 1996 acquisitions were facilitated by two successful common stock offerings completed during the year. Through the offerings, which occurred in August and November November: see month. , the Company issued a total of 21 million shares raising over $545 million. The November offering of $467 million was the largest post-IPO offering ever by a REIT. Market Capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. : As a result of the acquisitions, stock offerings and financial performance in 1996, Cali's market capitalization increased 208 percent from $400 million at December 31, 1995 to $1.2 billion at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1996. The Company's total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. , including $268 million in debt, was $1.5 billion at December 31, 1996, an increase of 179 percent over 1995. Additionally, Cali's debt-to-total capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. was 18.2 percent at year-end 1996, compared to 25.7 percent at the end of 1995. Robert Martin Transaction In January January: see month. 1997, Cali Realty announced and completed a transaction with Westchester-based Robert Martin Company LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . The $450 million deal, which is believed to be one of the largest private real estate transactions in REIT history, was financed by Cali with $220 million in cash, an assumption of $185 million in debt, and the issuance of $46 million in operating partnership units, convertible to common stock of Cali Realty Corporation. The Company funded the cash portion of the transaction primarily from cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. . The combined company continues to operate as Cali Realty Corporation. With the transaction, Cali acquired 65 properties in Westchester Westchester is the name of some places in the United States of America:
Leasing Information Cali Realty's portfolio of office buildings was 96.4 percent leased at December 31, 1996 compared to 96.9 percent at September September: see month. 30, 1996. During the fourth quarter 1996, the Company executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. 31 leases totaling 201,875 square feet, consisting of 190,267 square feet of office space and 11,608 square feet of office/flex space; 88,752 square feet for new leases and 113,123 square feet for lease renewals. A schedule is attached highlighting the fourth quarter's leasing statistics. About the Company Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust(REIT) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 123 properties, primarily office and office/flex buildings, totaling approximately 11.4 million square feet. All of the properties are located in New Jersey, 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 , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York and Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). . Additional information on Cali Realty Corporation is available on the Company's Web Site at http://www.calirealty.com. -0- Certain information discussed in this press release may constitute 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 the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties in the northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. ; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take 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 or pay rent, or that development or operating costs operating costs npl → gastos mpl operacionales may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and annual reports 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. .
Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Quarter Ended December 31,
1996 1995
Revenues $32,379 $17,536
Operating and other expenses (9,406) (5,913)
General and administrative (2,373) (922)
Depreciation and amortization (5,156) (3,175)
Interest expense (4,388) (2,500)
Total expenses (21,323) (12,510)
Income before minority interest 11,056 5,026
Minority interest (894) (888)
Net income $10,162 $ 4,138
Weighted average shares
outstanding 26,377 13,193
Net income per common share $ 0.39 $ 0.31
Dividends declared per
common share $ 0.45 $ 0.425
-0-
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Quarter Ended December 31,
1996 1995
Income before minority interest, gain on
sale of property and extraordinary item $11,056 $ 5,026
Add:
Real estate depreciation and amortization 4,865 2,954
Deduct:
Adjustment to rental income for
straight line rents (745) 153
Funds from Operations(a) after adjustment
for straight-lining of rents $ 15,176 $ 8,133
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (188) (159)
Tenant improvements and lease
commissions (781) (429)
Cash available for distribution $ 14,207 $ 7,545
Weighted average shares/units
outstanding (b) 29,071 16,024
Per share/unit:
Funds from Operations $ 0.52 $ 0.51
Cash available for distribution $ 0.49 $ 0.47
Dividend $ 0.45 $ 0.425
Dividend payout ratios:
Funds from Operations (a) 86.20% 83.73%
Cash available for distribution 92.08% 90.26%
(a) Funds from Operations for both periods are calculated in
accordance with the National Association of Real Estate
Investment Trusts (NAREIT) definition, as published in March
1995.
(b) Assumes conversion of 2,694 (1996) and 2,830 (1995) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.
-0-
Cali Realty Corporation
Condensed Statements of Operations
(in thousands, except per share amounts)
Year Ended December 31,
1996 1995
Revenues $95,472 $62,335
Gain on sale of property 5,658 --
Operating and other expenses (29,662) (20,705)
General and administrative (5,800) (3,712)
Depreciation and amortization (15,812) (12,111)
Interest expense (12,677) (8,661)
Total expenses (63,951) (45,189)
Income before minority interest 37,179 17,146
Minority interest (4,760) (3,508)
Extraordinary item-loss on early
retirement of debt (a) (475) --
Net income $ 31,944 $ 13,638
Weighted average shares
outstanding 18,461 11,122
Net income per common share:
Before extraordinary item $ 1.76 $ 1.23
Extraordinary item (.03) --
Net income $ 1.73 $ 1.23
Dividends declared per
common share $ 1.75 $ 1.66
(a) Net of minority interest's share of $86.
-0-
Cali Realty Corporation
Statements of Funds from Operations and
Cash Available for Distribution
(in thousands, except per share amounts)
Year Ended December 31,
1996 1995
Income before minority interest, gain on
sale of property and extraordinary item $ 31,521 $ 17,146
Add:
Real Estate depreciation and amortization 14,677 10,606
Deduct:
Adjustment to rental income for
straight line rents (978) (312)
Funds from Operations(a) after adjustment
for straight-lining of rents $ 45,220 $ 27,440
Deduct:
Non-incremental revenue generating
capital expenditures:
Capital improvements (1,037) (636)
Tenant improvements and lease
commissions (3,240) (1,716)
Cash available for distribution $ 40,943 $ 25,088
Weighted average shares/units
outstanding(b) 21,171 13,986
Per share/unit:
Funds from Operations $ 2.14 $ 1.96
Cash available for distribution $ 1.93 $ 1.79
Dividend $ 1.75 $ 1.66
Dividend payout ratios:
Funds from Operations (a) 81.93% 84.49%
Cash available for distribution 90.49% 92.41%
(a) Funds from Operations for both periods are calculated in
accordance with the new National Association of Real Estate
Investment Trusts (NAREIT) definition, as published in March
1995.
(b) Assumes conversion of 2,711 (1996) and 2,864 (1995) weighted
average limited partnership units in Cali Realty, L.P. to
shares of Cali Realty Corporation.
-0-
Cali Realty Corporation
Leasing Statistics
For Quarter Ended December 31, 1996
Leased Area Percentage
Rentable S.F. % Leased
September 30, 1996 4,137,641 96.9%
4th quarter leasing, net 11,741
4th quarter acquisitions 2,727,099
December 31, 1996 6,876,481 96.4%
Fourth Quarter Leasing Activity:
OFFICE SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Rent (Years)
New Leases:
First generation space 1 6,507 $24.02 12.4
Second generation space 19 70,637 $21.54 6.5
Total new leasing 20 77,144
Renewals & extensions 11 113,123 $23.54 4.9
Total leasing 31 190,267
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
Expend. committed-4th qtr.(a) $1,591,642(b) $1,131,097 $2,722,739
Rentable s.f. leased-4th qtr. 183,760 183,760 183,760
Cap ex. committed per r.s.f. $8.66 $6.16 $14.82
(a) Represents amounts committed but not necessarily expended during period.
(b) Equals estimated workletter costs, net of estimated profit and overhead.
Cali Realty Corporation
Leasing Statistics
For Quarter Ended December 31, 1996
(continued)
OFFICE/FLEX SPACE
Number Weighted Average
of Rentable Average Term
Leases S.F. Base Net Rent (Years)
New leases:
First generation space 2 11,608 $12.07 8.9
Total Leasing: 2 11,608
Capital Expenditures- Tenant Leasing
Second Generation Space: Improvements Commissions Total
Expend. committed-4th qtr.(a) $0 0 0
Rentable s.f. leased-4th qtr. 0 0 0
(a) Represents amounts committed, but not necessarily expended during period.
(b) Equals estimated workletter costs, net of estimated profit and overhead.
Lease Renewals
Number of
Leases Rentable S.F.
Leases expiring-4th quarter 28 190,134
Leases renewed-4th quarter 11 113,123
Renewal percentage per r.s.f. 39% 60%
Expiring in future periods and
renewed in 4th quarter
(included in totals above) 6 92,892
CONTACT: Cali Realty Corporation Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Lefkowitz, 908/272-8000 |
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