Chateau Communities Reports First Quarter Results; Announces Acquisition of Two Communities, Additions of Two New Communityplus Relationships.Business Editors GREENWOOD Greenwood. 1 City (1990 pop. 26,265), Johnson co., central Ind.; settled 1822, inc. as a city 1960. A residential suburb of Indianapolis, Greenwood is in a retail shopping area. Manufactures include motor vehicle parts and metal products. VILLAGE, Colo.--(BUSINESS WIRE)--May 9, 2001 Chateau Communities (NYSE NYSE See: New York Stock Exchange :CPJ CPJ Committee to Protect Journalists CPJ Citizens for Public Justice (Canada) CPJ Center for Public Justice CPJ Critical Path Job CPJ Common Place Journal CPJ Controlled Pipe Joints CPJ Cooperative Programming in Java CPJ Cd Project ): Summary of First Quarter 2001 -- FFO FFO See: Funds from operations increased 5.3% to $21.6 million for the first quarter of 2001, as compared to $20.5 million in 2000. -- FFO per share, assuming dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. , increased to $0.67 for the first quarter, compared to $0.64 for the same period last year. -- Same store NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics increased 4.5% -- First quarter rent increases averaged 4.1% -- Chateau acquired two existing communities consisting of 1,199 sites for $29.3 million in total consideration in April and May. -- The Company added two independent companies to the Communityplus program in May. Chateau Communities, Inc. (NYSE:CPJ), a fully integrated, self-administered real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) specializing in the ownership and management of manufactured home communities, today released results for the first quarter of 2001. Total revenues for the first quarter of 2001 were $51.7 million, an increase of 5.9 percent from $48.8 million in the first quarter of 2000. 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 first quarter increased 5.3 percent to $21.6 million, from $20.5 million for the first quarter of 2000. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , per-share basis, FFO increased to $0.67 per share from $0.64 per share for the same period in 2000. Same store net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter increased by 4.5 percent from $30.3 million to $31.7 million. Same store rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time increased 4.4 percent to $48.3 million from $46.2 million for the first quarter of 2000. Same store property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by 4.4 percent to $16.6 million from $15.9 million last year. Rent increases averaged 4.1 percent in the first quarter of 2001, compared to 4.2 percent in 2000, with approximately 43 percent of the annual increases recognized in the first quarter. Chateau expansion efforts resulted in the addition of 245 homesites to the portfolio in the first quarter of 2001. An additional 260 expansion sites are scheduled for completion later this year. The Company has 4,400 expansion sites in 29 properties available for future development. The greenfield Greenfield, town (1990 pop. 18,666), seat of Franklin co., NW Mass., at the confluence of the Deerfield and Green rivers, near their junction with the Connecticut; settled 1686, set off from Deerfield and inc. 1753. construction portfolio, consisting of 12 developments, remained stable, leaving its inventory of sites at 4,500, with plans to add 235 new sites by 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. . During the first quarter, approximately 90 sites were filled in development and expansion communities. As of March 31, 2001, the Company had approximately $525.2 million of debt outstanding, representing 33 percent of the Company's total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. . The Company has 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. facilities totaling $133 million, of which approximately $68 million was available as of March 31, 2001. The credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities primarily bear interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 90 basis points. Effective January January: see month. 1, 2001, Chateau began consolidating development joint ventures under its control. These communities, which were previously reported using the equity method of accounting, added 6 communities with 276 revenue-producing sites and 804 available sites. The Company expects consolidation of these joint ventures will have a dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). on 2001 FFO per share of approximately $0.02. Chateau subsidiary, Community Sales, Inc., showed improvement in the first quarter, with 87 new and 48 pre-owned homes sold, and 260 sales brokered. This compares to 382 total sales for the same period in 2000. The Company also arranged financing on 127 loans in the first quarter, representing a capture rate of 32 percent. Repossessions in the portfolio decreased by 16 percent this quarter over the last quarter in 2000 and the Company expects continued improvement in the repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, climate to continue through the remainder of the year. 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 , as expected, was basically flat throughout the Company with some seasonal losses in the core portfolio offset by larger-than-anticipated gains in the development and expansion portfolio. In the second quarter, the Company acquired two communities, one in the Indianapolis Indianapolis (ĭn'dēənă`pəlĭs), city (1990 pop. 731,327), state capital and seat of Marion co., central Ind., on the White River; selected 1820 as the site of the state capital (which was moved there in 1825), inc. 1847. market area consisting of 288 sites for a price of $5.4 million, and the other in the Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. area consisting of 911 sites for a price of $23.9 million. Both properties, purchased at an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 8.25 percent cap rate, are high-quality communities located within existing operational regions. The Company also recently completed the implementation of an enterprise-wide software system. This state-of-the-art technology enables all community, regional, divisional and corporate office personnel to access, analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. and share information on a real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. basis. This technology provides an important tool for monitoring property level performance and portfolio performance in different areas and regions, and supports decision making in the property management arena. This quarter's results were adversely impacted by several unrelated circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or : unusually high weather-related repair and maintenance; increasing utility costs in several parts of the country; and increased property insurance costs resulted in higher-than-anticipated expenses, decreasing FFO per share by approximately $0.02. Also, in connection with the software system implementation, the Company performed a detailed review and analysis of each resident account. This review led the Company to recognize write-offs of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying in the amount of approximately $650,000, or approximately $0.02 per share for the quarter. Upon completion of the review, management bonuses for the year 2000 were recalculated and adjusted accordingly. Chateau Chief Executive Officer Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. McDaniel McDaniel may refer to: People:
Headquartered in Greenwood Village, Colo., Chateau Communities is one of the largest owner/managers of manufactured home communities in the U.S. Its portfolio consists of 174 communities, with an aggregate of approximately 54,600 residential homesites and 1,400 park model/RV sites. In addition, Chateau manages 38 manufactured home communities with approximately 8,100 residential homesites and owns or has options on 6 greenfield development communities, which will provide approximately 2,700 sites for future development. Chateau operates in 34 states. Please visit Chateau Communities at www.chateaucomm.com. TABLES TO FOLLOW The information in this news 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. of the Company's plans, objectives, and expectations, which are dependent upon a number of factors, including that additional site expansions, community acquisition and development activities, and other new business initiatives are subject to a number of contingency contingency n. an event that might not occur. factors such as the effects of national and local economic conditions, changes in interest rates, supply and demand for affordable housing, and the condition of the capital markets, all of which may affect the Company's ability to achieve its objectives.
CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE MONTHS
ENDED MARCH 31, 2001 AND 2000
(Amounts in thousands, except per share/OP Unit amounts)
Three Months Ended
2001 2000
-------- ------
Rental income $ 48,612 $ 46,205
Interest income 2,392 2,178
Management fee and other income 739 466
------------ -----------
Total revenues 51,743 48,849
Property operating and maintenance 13,967 12,540
Real estate taxes 3,435 3,334
Administrative 2,069 2,382
------------ -----------
Operating and administrative
expenses 19,471 18,256
------------ -----------
Income before interest and
depreciation 32,272 30,593
Interest and related amortization 9,064 8,481
Depreciation and amortization 11,873 10,805
------------ -----------
Income before minority interests 11,335 11,307
Less income allocated to minority
interests:
Preferred OP Units 1,523 1,523
Common OP Units 1,098 1,125
------------ -----------
Net income available to common
shareholders $ 8,714 $ 8,659
============ ===========
Weighted average common shares
outstanding 28,576 28,496
============ ===========
Weighted average common shares
outstanding -- assuming dilution 28,802 28,564
============ ===========
Weighted average common shares/
OP units -- assuming dilution 32,404 32,268
============ ===========
Per common share/OP unit:
Net income
-- basic $ .30 $ .30
============ ===========
-- assuming dilution $ .30 $ .30
============ ===========
FFO -- assuming dilution $ .67 $ .64
============ ===========
Dividends/distributions declared $ .545 $ .515
============ ===========
CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE MONTHS
ENDED MARCH 31, 2001 AND 2000
(Amounts in thousands, except per share/OP Unit amounts)
FFO Reconciliation: Three Months Ended
------------------- 2001 2000
---- ----
Income before minority interests $ 11,335 $ 11,307
Plus:
Depreciation and amortization 11,873 10,805
Less:
Income allocated to Preferred
OP units 1,523 1,523
Depreciation expense on
corporate assets 108 91
====== ======
FFO $ 21,577 $ 20,498
====== ======
Weighted average common shares/
OP units outstanding
-- assuming dilution 32,404 32,268
====== ======
FFO per weighted average common
share/OP Unit -- assuming dilution $ .67 $ .64
====== ======
Same Store Results
------------------
Three Months Ended
------------------ Growth
2001 2000 2001 over 2000
---- ---- --------------
(dollars in thousands)
Property revenues $ 48,257 $ 46,205 4.4%
Property expenses 16,554 15,863 4.4%
--------- --------- -------
Net operating income $ 31,703 $ 30,342 4.5%
========= ========= =======
Manufactured home
communities 162 162
========= =========
Park model/RV
communities 3 3
========= =========
Available homesites 52,299 51,862
========= =========
CHATEAU COMMUNITIES, INC.
FINANCIAL INFORMATION
AS OF
MARCH 31, 2001 AND DECEMBER 31, 2000
(Dollars in thousands)
Summarized Financial Information
--------------------------------
March 31, December 31,
Balance sheet information: 2001 2000
---- ----
Rental property, net $ 903,664 $ 855,798
Rental property, before
accumulated depreciation $ 1,140,363 $ 1,091,451
Total assets $ 1,028,711 $ 1,017,864
Total debt $ 525,207 $ 535,470
Minority interests $ 117,583 $ 116,863
Shareholders' equity $ 341,764 $ 335,912
Common shares outstanding 28,600,173 28,531,675
OP Units outstanding 3,603,455 3,592,794
Property information:
Manufactured home communities 169 163
Park model/RV communities 3 3
Available homesites 53,398 52,347
Occupied homesites 47,795 47,678
Occupancy rate 89.5% 91.1%
Debt information:
as of March 31, 2001
Principal Weighted average
balance interest rate Maturity date
--------- ---------------- -------------
Fixed rate mortgage
debt $ 136,555 7.8% 2002-2010
Senior unsecured
debt 320,000 7.5% 2003-2005
Lines of credit 65,089 6.3% 2004
Other 3,563 - -
---------
Total debt $ 525,207
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