Carey Diversified LLC Reports Third Quarter 1998 Results.NEW YORK--(BUSINESS WIRE)--Oct. 27, 1998-- FFO FFO See: Funds from operations Per Share Increases to $0.50 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 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) for the three months ended September 30, 1998, were $0.50 per share, up from $0.49 per share in the second quarter 1998. Funds from operations for the nine months ended September 30, 1998 were $36,242,000 ($1.47 per share). Net income for the third quarter was $10,138,000 up from $9,987,000 in the prior quarter. Net income totaled $29,839,000 for the first nine months of 1998. Total revenue for the quarter increased by over 3% to $21,306,000, and was $63,643,000 for the nine months. Francis J. Carey, Chairman and Chief Executive Officer of Carey Diversified, stated, "We are pleased with the Company's continued strong performance in the third quarter. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the recent volatility in the capital markets - and among real estate-related companies in particular - our operating results continue to provide our investors with attractive income, consistent investment performance and prudent growth." Carey Diversified began operations on January 1, 1998 as the consolidation of the CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. (R):1-9 portfolios, creating a new publicly traded company publicly traded company 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 million. Results for 1998 are therefore not comparable to those for 1997. Third Quarter Highlights Carey Diversified increased its unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility from $150 million to $185 million. The LIBOR-based facility is syndicated to a group of eight financial institutions. Chase Manhattan leads the facility, with the Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. acting as syndication See syndication format. agent and PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank as documentation agent. The line will enable Carey Diversified to move quickly on acquisition opportunities, and will also be used to retire existing higher priced debt. The Company acquired, in a build-to-suit transaction, the West Coast customer call center of Sprint Spectrum L.P. Located in Rio Rancho ran·cho n. pl. ran·chos Southwestern U.S. 1. A hut or group of huts for housing ranch workers. 2. A ranch. , NM, the 75,000 square-foot facility will house an advanced office/call center, and will be leased to Sprint Spectrum for tates. The third quarter dividend in thet, said, "The Company successfully increased its available credit in the amount desired and on the same attractive terms. The expansion of the facility underscores the confidence of the participating banks in Carey Diversified's ability to meet its objectives and enhance shareholder value over the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-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.
CAREY DIVERSIFIED LLC
Consolidated Statements of Income
(in thousands except share and per share amounts)
Three Months Nine Months
Ended Ended
September 30, 1998 September 30, 1998
Revenues:
Rental income $ 10,765 $ 31,776
Interest income from direct 8,559 25,954
financing leases
Other interest income 183 607
Other income 45 306
Revenue of hotel operations 1,754 5,000
---------- ----------
21,306 63,643
---------- ----------
Expenses:
Interest 4,947 13,776
Depreciation and amortization 2,211 6,102
General and administrative 1,297 4,806
Property expenses 1,030 3,513
Operating expenses of hotel 1,161 3,832
operations
---------- ----------
10,646 32,029
---------- ----------
Income before minority
interest, income from
equity investments,
net gains and
extraordinary item 10,660 31,614
Minority interest in income (933) (2,771)
Income from equity investments 431 1,547
Gain on sale (20) 70
---------- ----------
Income before extraordinary item 10,138 30,460
Extraordinary charge on
extinguishments of debt,
net of minority interest 0 (621)
---------- ----------
Net income $ 10,138 $ 29,839
========== ==========
Basic and diluted earnings
per listed share:
Earnings before $ 0.40 $ 1.23
extraordinary item
Extraordinary item 0.00 (0.02)
========== ==========
$ 0.40 $ 1.21
========== ==========
Weighted average listed
shares outstanding:
Basic 25,242,808 24,716,281
========== ==========
Diluted 25,242,808 24,721,141
========== ==========
CAREY DIVERSIFIED LLC
Funds From Operations
(in thousands except per share amounts)
Three Months Nine Months
Ended Ended
September 30, 1998 September 30, 1998
---------------------------------
Net Income $ 10,138 $ 29,839
Extraordinary charge 0 621
Gain on sale 20 (70)
FFO of equity investees in excess
of equity income 527 1,291
Depreciation and other non-cash charges 2,325 6,514
Minority interest in income in
excess of distributions 144 580
Straight-line rents (544) (1,505)
Non-recurring lease revenues(a) 0 (1,028)
=========== ===========
Funds from operations $ 12,610 $ 36,242
=========== ===========
Funds From Operations per share -
basic and diluted $ 0.50 $ 1.47
=========== ==================
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.
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