Carey Diversified Reports First Quarter 1998 Results; 48 Cents FFO Per Share.NEW YORK--(BUSINESS WIRE)--April 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 ) of $0.48 per share for the three months ended March 31, 1998. Carey
Carey is the name of several places:
adj. 1. Involving goods convertible into cash in a short time. Used of business transactions. 2. Producing a return equal to the sum invested to create or maintain something: 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 partnership 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. First quarter earnings results are, therefore, not comparable to previous quarters. Total revenues for the first quarter were $22,258,000, and net income was $9,714,000. Net income reflects the effect of a $644,000 extraordinary charge on the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Commenting on first quarter results, Carey Diversified's chairman and chief executive officer, Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. J. Carey, said: "We are very pleased with the financial results of our first quarter. They are on target with our strategy of providing investors with a high current yield, consistent investment performance and attractive earnings." Significant events that occurred since Carey Diversified began operations include: -- Acquisition of $115 million in build-to-suit facilities. This includes a 225,000 square-foot Worldwide Headquarters facility for America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. West in Tempe, Ariz., and a 400,000 square-foot Information Technology Headquarters Campus for Federal Express in Collierville, Tenn. -- First stock for property swap transaction, acquiring a 130,000 square-foot Eagle Hardware & Garden retail store in Bellevue, Wash. -- $150 million 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 established through a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of banks led by Chase Manhattan. The facility was used to pay off $55 million of existing high-interest debt and will be available to fund, on a transitional basis, Carey Diversified's ongoing acquisition program. -- Two quarterly dividends declared, each 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 per share) as originally projected in Carey Diversified's prospectus. Gordon F. DuGan, Carey Diversified's president, noted: "The consolidation of nine of our real estate portfolios into Carey Diversified has not only provided us with greater financial strength and the ability to generate new capital, but has also allowed us to complete successfully three new property acquisitions. Our recent transactions with America West, Federal Express and Eagle Hardware & Garden are examples of the type of quality transactions that will enhance shareholder value over the long term." Carey Diversified LLC, a member of the 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. . Its portfolio consists of 199 properties in 37 states, 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 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 nationwide. 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-
First Quarter 1998 Activity
Build-to-Suit Development
Location/ Total Sq. Purchase
Tenant Property Type Footage Price
America West Tempe, Ariz./ 218,000 $37,000,000
Airlines World Headquarters
Federal Collierville, Tenn. 400,000 $77,400,000
Express Corp. Worldwide Information
technology headquarters
Property Acquisition
(stock-for-property swap)
Tenant Location/ Total Sq.
Property Type Footage
Eagle Hardware Bellevue, Wash./ 130,000
& Garden Inc. Retail Store
Top Tenants Based on
Ongoing Rental Revenue(a)
Tenant Property Description Total Sq. 1998 % of
Footage Rents Rents
Dr. Pepper 2 major bottling/ 721,947 $3,998,000 5.8%
Bottling distribution plants
Company
of Texas
Detroit Industrial Property 2,730,750 3,655,525 5.3%
Diesel Corp.
Sybron 4 Industrial/ 706,900 3,311,082 4.8
International manufacturing
Corp. facilities; office
building
Gibson Manufacturing 1,194,840 3,100,000 4.5
Greetings facility;
Inc. distribution center
Quebecor 2 Industrial/ 703,059 2,489,129 3.6
Printing Inc. manufacturing facilities
Furon 5 Industrial/ 627,290 2,416,049 3.5
Company manufacturing facilities;
office building
Thermadyne Industrial/ 325,800 2,234,191 3.3
Industries manufacturing facility
Inc.
Autozone, Inc. 55 retail stores 310,415 2,226,425 3.2
The Gap Inc. 2 distribution 753,750 2,205,385 3.2
centers
Orbital Industrial/ 260,000 2,153,739 3.1
Sciences manufacturing facility
Corp.
(a) Prior to completion of America West and Federal Express
properties.
-0-
Carey Diversified LLC
Earnings Release Quarter Ended March 31, 1998
(In thousands except share and per share amounts)
Revenues:
Rental Income $ 10,520
Interest income from
direct financing leases 8,921
Other interest income 236
Revenues of hotel operations 1,967
Other income 614
------
22,258
Expenses:
Interest on mortgages 4,692
Depreciation and amortization 1,845
General and administrative 1,621
Property expenses 1,259
Operating expense of hotel
operations 1,627
------
11,044
Income before minority interest
and extraordinary item 11,214
Minority interest (856)
Income before extraordinary item 10,358
Extraordinary loss on
extinguishments of debt (644)
Net income $ 9,714
Basic and diluted earnings per
listed share:
Earnings before extraordinary item $ 0.43
Extraordinary item $ (0.03)
--------
$ 0.40
Weighted average listed shares
outstanding:
Basic 23,994,926
Diluted 24,003,074
-0-
Carey Diversified LLC
Funds From Operations
Quarter Ended March 31, 1998
(In thousands except share and per share amounts)
Net income $9,714
Extraordinary charge 644
FFO of equity investees in excess
of equity income 382
Depreciation and other non-cash
charges 2,036
Minority interest in income in
excess of distributions 126
Straight-line rents -442
Non-recurring lease revenues(a) -996
Funds from operations $11,464
Funds from operations per share -
basic and diluted $ 0.48
Notes:
(a) 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 March 31, 1998. The adjustment
reduces lease revenues to an annualized amount consistent with the new
leases on the affected property.
CONTACT: Carey Diversified LLC, 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 Matthew B. Walley, 212/492-8992 or The Torrenzano Group Ltd., New York Patricia M. Westring, 212/681-1700 ext. 112 |
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