Carey Diversified LLC Reports Second Quarter 1998 Results; FFO Per Share Increases to $0.49.NEW YORK--(BUSINESS WIRE)--July 30, 1998--Carey Diversified diversified (di·verˑ·s LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (NYSE NYSE See: New York Stock Exchange :CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation ), a market leader in the ownership and net-leasing of corporate properties, today reported 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 three months ended June June: see month. 30, 1998, were $0.49 per share up from $0.48 per share in the first quarter 1998. Funds from operations for the six months ended June 30, 1998 were $0.97. Net income was $19.7 million for the first six months of 1998. Total revenues for the second quarter were $20.6 million and for the six months ended June 30, 1998, total revenues reached $42.3 million. Carey
Carey is the name of several places:
A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. with initial assets of approximately $725.0 million. Results for 1998 are therefore not comparable to those for 1997. Second Quarter Highlights The Company acquired a portfolio of seven properties from the J.A. Billip Company of Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; for $25.0 million in stock andcash. The buildings total 345,700 square feet of space and include warehouses, office buildings, research and development facilities and retail properties. Tenants include Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. , United Space Alliance, Johnson Engineering, Honeywell In 1927, the Minneapolis Honeywell Regulator Company was formed as a merger of Alfred Butz' temperature control company (1885) and Mark Honeywell's water heater company (1906). In 1957, Honeywell, along with Ratheon, introduced one of the first computers in the U.S., the Datamatic 1000. , Sears Roebuck and Continental Airlines. In another stock-for-property swap transaction, the Company acquired a 130,000 square-foot Eagle Hardware and Garden retail store in Bellevue, Washington Bellevue is a rapidly growing city in King County, Washington, U.S., across Lake Washington from Seattle. Long known as a suburb or satellite city of Seattle,[1] it is now categorized as an edge city or a boomburb. . The Company made its first foreign investment, acquiring two office buildings in Rouen Rouen (r  äN`), city (1990 pop. 105,470), capital of Seine-Maritime dept., N France. and Pantin Pantin (päNtăN`), suburb NE of Paris (1990 pop. 43,553), Seine–Saint-Denis dept., N central France, on the Canal d'Ourcq. There is considerable timber trade through the canal. , France through a joint venture with REM (REMarks) A programming language statement used for documentation. Rem statements are not executed by the compiler. They are created for people to read. Rem is also used in DOS batch files for comments as well as for disabling instructions. Finance, a French real estate investment and management company. The
buildings total approximately 100,000 square feet of space. Tenants
include Tellit Assurances S.A., (the French operation of Royal and Sun
Alliance Group, the largest insurance company in Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. ), three
French governmental agencies and Hoechst Hoechst may refer to:
The second quarter divided was declared in the amount of $0.4125 per share (on 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. basis, $1.65). FFO and Net Income Increase Second quarter net income and FFO benefited from lower interest expense resulting from the refinancing Refinancing An extension and/or increase in amount of existing debt. of approximately $55 million of previous high-interest debt. Net income increased by almost three percent over the prior quarter to $9.9 million. Francis J. Carey, Chairman and Chief Executive Officer of Carey Diversified, stated, "I am pleased with the Company's continued strong performance in the second quarter. These operating results show that we are maintaining our track record of consistent investment returns." Gordon F. DuGan, Carey Diversified's President, said, "Carey Diversified continues to acquire quality properties leased to sound tenants. Our strong financial base and our ability to offer stock-for-property swaps allows us the flexibility to secure transactions that are accretive to the portfolio. These transactions are designed to enhance shareholder value over the long term." Carey Diversified LLC, a member of the $2.5 billion W. P. Carey Group, is the largest limited liability company 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. . The company's portfolio consists of 203 properties totaling more than 20 million square feet. Carey Diversified leases properties to manufacturing, technology, retailing and communications companies Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. including Federal Express Corp., America West Airlines America West Airlines was one of the United States' ten major airlines. The airline was based in Tempe, Arizona, and is now a part of US Airways Group. At the time of its integration into US Airways, the airline maintained two hubs, one at Phoenix Sky Harbor International , Detroit Diesel, Gibson Greetings, Inc., Dr Pepper Bottling Company A bottling company is a commercial enterprise whose output is the bottling of beverages for distribution. Many bottling companies are franchisees of corporations such as Coca-Cola and PepsiCo who distribute the beverage in a specific geographic region. of Texas, Wal-Mart, AT&T, The Gap and more than 70 others. Additional information about Carey Diversified LLC is available on the company's website at: http://www.careydiv.com. 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 the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission. -0-
Second Quarter 1998 Activity
Property Acquisitions
Tenant(s) Location/Property Type Total Sq.
Footage
Eagle Hardware
Garden Inc. Bellevue, Washington/Retail Store 130,000
Continental Airlines, Houston, Texas/Office building,
Honeywell warehouse 57,445
Adaptive Controls, Webster, Texas/Office building,
Chrysler, Work Ready, warehouse 49,640
The Terminex Int'l
Adplex
Sears Hardware,
Bike Barn Houston, Texas/Retail store 27,285
Johnson Engineering,
Lockheed Martin Webster, Texas/Office building 108,578
United Space Alliance,
Caleb Brett Webster, Texas/Office building 91,800
Lockheed Martin Webster, Texas/Office building 10,960
3 French Government
agencies, Hoechst Suburban Paris, France/ 68,951
Roussel Vet Office building
Tellit Assurances Rouen, France/Office building 36,791
Top Tenants Based on Ongoing Rental Revenue(a)
Tenant Property Description Total Sq. 1998 Rents % of
Footage Rents
Dr Pepper
Bottling
Company of 2 major bottling/
of Texas distribution plants 721,947 $ 3,998,000 5.8%
Detroit Diesel
Corporation Industrial property 2,730,750 3,655,525 5.3%
Sybron 4 industrial/
International manufacturing facilities;
Corporation office building 705,900 3,311,082 4.8%
Gibson Manufacturing facility;
Greetings Inc. distribution center 1,194,840 3,100,000 4.5%
Quebecor 2 industrial/manufacturing
Printing Inc. facilities 703,059 2,489,129 3.6%
Furon 5 industrial/manufacturing
Company facilities; office
building 627,290 2,416,049 3.5%
Thermadyne
Industries Industrial/manufacturing
Inc. facility 325,800 2,234,191 3.3%
AutoZone Inc. 55 retail stores 310,415 2,226,425 3.2%
The Gap Inc. 2 distribution centers 753,750 2,205,385 3.2%
Orbital
Sciences Industrial/manufacturing
Corporation facility 280,000 2,153,739 3.1%
(a) Prior to completion of America West and Federal Express properties
CAREY DIVERSIFIED LLC
Consolidated Statements of Income
(in thousands except share and per share amounts)
Three Months Six Months
Ended Ended
June 30, 1998 June 30, 1998
------------ -------------
Revenues:
Rental income $ 10,491 $ 21,011
Interest income from direct
financing leases 8,474 17,395
Other interest income 188 424
Other income 204 261
Revenue of hotel operations 1,279 3,246
------------ ------------
20,636 42,337
------------ ------------
Expenses:
Interest 4,137 8,829
Depreciation and amortization 2,046 3,891
General and administrative 1,888 3,509
Property expenses 1,224 2,483
Operating expenses of hotel
operations 1,044 2,671
------------ ------------
10,339 21,383
------------ ------------
Income before minority interest,
income from equity investments,
net gains and extraordinary item 10,297 20,954
Minority interest in income (907) (1,838)
Income from equity investments 559 1,116
Gain on sale 90 90
------------ ------------
Income before extraordinary item 10,039 20,322
Extraordinary charge on
extinguishments of debt (52) (621)
------------ ------------
Net income $ 9,987 $ 19,701
============ ============
Basic and diluted earnings per
listed share:
Earnings before extraordinary
item $ 0.40 $ 0.83
Extraordinary item (0.02)
============ ============
$ 0.40 $ 0.81
============ ============
Weighted average listed shares
outstanding:
Basic 24,897,398 24,448,655
Diluted 24,919,685 24,479,996
============ ============
CAREY DIVERSIFIED LLC
Funds From Operations
(in thousands except share and per share amounts)
Three Months Six Months
Ended Ended
June 30, 1998 June 30, 1998
---------------- ---------------
Net Income $ 9,987 $ 19,701
Extraordinary charge 52 621
Gain on sale (90) (90)
FFO of equity investees in excess
of equity income 439 764
Depreciation and other non-cash
charges 2,212 4,189
Minority interest in income in
excess of distributions 236 436
Straight-line rents (519) (961)
Non-recurring lease revenues (1) (149) (1,028)
========= =========
Funds from operations $ 12,168 $ 23,632
========= =========
Funds From Operations per share -
basic and diluted $ 0.49 $ 0.97
========= =========
Notes:
(1) Reflects adjustment for non-recurring rents. A lease modification
effective prior to 1998 resulted in a temporary increase in lease
revenues in the three year period ended June 30, 1998. The
adjustment reduces lease revenues to an annualized amount
consistent with the new leases on the affected property.
CONTACT: Carey Diversified L.L.C., New York
Matthew B. Walley, 212/492-8992
or
The Torrenzano Group Ltd., New York
Donald W. Schuster, 212/681-1700 ext. 103
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion