Chateau Communities Reports Third-Quarter Results.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)--Oct. 30, 2002 Chateau Communities, Inc. (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 ), the largest owner and operator of manufactured home communities in the U.S., today released results for the third quarter of 2002. Total revenues for the third quarter of 2002 were $68.3 million, as compared to $63.5 million in the third quarter of 2001. The increases in the total portfolio are due to the acquisition of the CWS CWS Chicago White Sox CWS College World Series CWS Church World Service CWS Child Welfare Services CWS Canadian Wildlife Service CWS Community Water System (EPA) CWS Canada-Wide Standard CWS Compressed Work Schedule portfolio in August 2001 and increases in the same store portfolio. 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 third quarter were $20.0 million, or $0.57 per 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. common share, compared to $23.5 million, or $0.69 per share, for the same period last year. For the nine months ended September September: see month. 30, 2002, total revenues were $204.6 million, as compared to $166.8 million in 2001. FFO for the first nine months were $65.2 million, or $1.85 per diluted common share, versus $67.1 million, or $2.03 per share, last year. For the third quarter, 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 3.7 percent to $50.2 million from $48.4 million and 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 5.1 percent to $19.0 million. 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. increased 2.9 percent. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. same store rental income increased 3.1 percent to $146.5 million compared to $142.1 million for the same period of 2001, and expenses increased 2.9 percent. Year-to-date same store net operating income increased 3.2 percent. For the full portfolio, third-quarter rental income increased 9.9 percent to $65.7 million from $59.8 million in the same period of 2001. Operating expenses rose from $23.1 million to $26.2 million, a 13.6 percent increase. Net operating income for the full portfolio increased 7.6 percent, from $36.7 million to $39.5 million in the third quarter. For the nine months ended September 30, rental income was up 25.4 percent for the full portfolio, to $195.4 million from $155.9 million in 2001. Operating expenses increased 29.2 percent, from $57.5 million to $74.2 million. Net operating income for the first nine months of 2002 was $121.2 million for the full portfolio, up 23.1 percent from $98.4 million in the same period of 2001. Progress with respect to improved collections has been slower than anticipated in 2002. Total collection costs year-to-date are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2 percent of rent revenue and are expected to remain at that level in the fourth quarter and into 2003. In addition, general costs associated with operations in the area of utilities, health care and payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. costs, as well as the completion of several operational related consulting assignments, have affected results in the first nine months. 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 at the end of the third quarter was 91.7 percent in the stable portfolio, 79.1 percent in the active expansion portfolio, and 30.7 percent in 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. development properties. Total portfolio occupancy at September 30, 2002, was 87.1 percent. During the third quarter of 2002, the Company sold seven properties and one parcel of land for a combined gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. price of approximately $21.2 million, bringing year-to-date dispositions to twelve properties and two parcels of land, aggregating approximately $40.0 million. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from dispositions were used to pay down the Company's lines of credit. The Company has an additional five communities under contract for an estimated aggregate selling price of approximately $15 million. The sales of these additional communities are subject to satisfactory completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and other customary closing conditions. Included in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. are the results of operations for eight properties which were sold in 2002, and one property which is currently held for sale. This property was reclassified as an asset held for sale during the third quarter, resulting in an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $1.3 million, which is also included in discontinued operations. Efforts by the Company's development division, National Community Development ("NCD NCD - Network Computing Devices "), resulted in the creation of an additional 595 leaseable sites this year with an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. investment of approximately $7.5 million. Net occupancy in the NCD projects increased by approximately 130 sites and 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 for the first nine months increased 7 percent. Development activity in 2002 has been limited to completion of either sites started in 2001 or sites that were under development in the CWS portfolio acquired last year. 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:
Chateau subsidiary Community Sales, Inc. ("CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International ") sold 215 homes in the third quarter, compared to 192 for the same period last year. The Company brokered 332 home sales, compared to 296 in 2001. The Company also arranged financing on approximately 178 loans in the third quarter compared to 245 in the third quarter of 2001. CSI also recorded one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. losses of approximately $0.02 per share in connection with the closure of its only company-owned home sales dealership located in Elkhart Elkhart, city (1990 pop. 43,627), Elkhart co., N Ind., at the confluence of the Elkhart and St. Joseph rivers; settled 1824, inc. 1877. The city's status as a chief producer of band instruments began in 1875. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). . Chateau Chief Executive Officer Gary McDaniel commented: "Given the extremely challenging economic and financing issues faced by our industry today, we are pleased with the overall performance of our properties through the first three quarters of this year. Given these conditions, we were also able to complete some very important strategic initiatives including the sale of seven properties and one parcel of land which no longer suited the Company's investment profile." Management will hold a teleconference call Thursday Thursday: see week. , October October: see month. 31, 2002, at 1:00 p.m. Eastern Standard Time to discuss third-quarter 2002 results. To participate, call toll-free 877/434-1281 and request the Chateau Communities teleconference. Callers outside the U.S. may access the call at 706/634-0185. A webcast will be available in listen-only mode at www.chateaucomm.com on our home page. An audio replay of the call will be available through Monday Monday: see week. , November November: see month. 4, 2002. To access the replay, dial toll-free 800/642-1687, reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. no. 5666432. Callers outside the U.S. may access the replay at 706/645-9291. The webcast will be archived for thirty days, through November 29, 2002, also on our home page at www.chateaucomm.com. Headquartered in Greenwood Village, Colorado Greenwood Village is a city in Arapahoe County, Colorado, United States. As of 2005, the city is estimated to have a total population of 12,817.[3] Geography Greenwood Village is located at (39.615888, -104. , Chateau Communities is a fully integrated, self-administered real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ), and the largest owner/manager of manufactured home communities in the U.S. Its portfolio consists of 207 communities, with an aggregate of approximately 69,000 residential homesites and 1,400 park model/RV sites, and 37 managed communities with approximately 8,100 sites. In addition, the Company owns 12 Greenfield development communities with approximately 6,100 sites when fully developed. Chateau Communities operates in 36 states. Please visit Chateau Communities at www.chateaucomm.com. Any 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. contained in this news release are subject to certain risks and uncertainties including the ability to maintain rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. rates and occupancy, the ability of manufactured home buyers to obtain financing, the level of repossessions by manufactured home lenders, the pace of acquisitions and dispositions, changes in interest rates 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 and Nine Months
Ended September 30, 2002 and 2001
(Amounts in thousands, except per share/OP unit amounts)
Three Months Nine Months
Ended Ended
2002 2001 2002 2001
---- ---- ---- ----
Rental income $65,692 $59,780 $195,409 $155,876
Interest income 2,835 2,789 8,417 7,469
Management fee and other income (263) 897 781 3,435
------- ------- -------- --------
Total revenue 68,264 63,466 204,607 166,780
Property operating and
maintenance 21,830 18,970 61,204 46,602
Real estate taxes 4,404 4,119 13,025 10,854
Administrative 3,511 2,398 10,391 7,231
------- ------- -------- --------
Operating and administrative
expenses 29,745 25,487 84,620 64,687
------- ------- -------- --------
Income before interest and
depreciation 38,519 37,979 119,987 102,093
Interest and related amortization 16,736 13,461 50,341 31,648
Depreciation and amortization 18,292 12,704 52,675 35,787
------- ------- -------- --------
Income before gain (loss) on
sales of properties and
minority interests 3,491 11,814 16,971 34,658
Gain (loss) on sales of
properties (715) - 901 -
Minority interests of preferred
OP unitholders (1,524) (1,523) (4,570) (4,570)
Minority interests of common OP
unitholders (208) (1,581) (2,217) (3,825)
------- ------- -------- --------
Income from continuing
operations 1,044 8,710 11,085 26,263
------- ------- -------- --------
Discontinued operations
Income from discontinued
operations, net of
minority interests 108 350 817 930
Impairment / gain (loss) on sales
of properties, net of
minority interests 2,047 - 1,900 -
------- ------- -------- --------
Income from discontinued
operations 2,155 350 2,717 930
------- ------- -------- --------
Income before cumulative effect of
accounting change 3,199 9,060 13,802 27,193
Cumulative effect of accounting
change, net of
minority interests - - (846) -
------- ------- -------- --------
Net income available to common
shareholders $ 3,199 $ 9,060 $ 12,956 $ 27,193
======= ======= ======== ========
Chateau Communities, Inc.
Financial Results
For the Three and Nine Months
Ended September 30, 2002 and 2001
(Amounts in thousands, except per share/OP unit amounts)
Three Months Nine Months
Ended Ended
2002 2001 2002 2001
---- ---- ---- ----
Earning per common share/OP unit -
basic
-----------------------------------
Income from continuing operations $ 0.04 $ 0.30 $ 0.38 $ 0.92
Income from discontinued operations 0.07 0.01 0.09 0.03
------- ------- ------- -------
Income before cumulative effect of
accounting change 0.11 0.31 0.47 0.95
Cumulative effect of accounting
change - - (0.03) -
------- ------- ------- -------
Net income available to common
shareholders $ 0.11 $ 0.31 $ 0.44 $ 0.95
======= ======= ======= =======
Weighted average common shares -
basic 29,282 28,762 29,228 28,679
======= ======= ======= =======
Earning per common share/OP unit -
diluted
-----------------------------------
Income from continuing operations $ 0.04 $ 0.30 $ 0.38 $ 0.91
Income from discontinued operations 0.07 0.01 0.09 0.03
------- ------- ------- -------
Income before cumulative effect of
accounting change 0.11 0.31 0.47 0.94
Cumulative effect of accounting
change - - (0.03) -
------- ------- ------- -------
Net income available to common
shareholders $ 0.11 $ 0.31 $ 0.44 $ 0.94
======= ======= ======= =======
Weighted average common shares -
diluted 29,395 28,922 29,357 28,880
======= ======= ======= =======
Dividends/distributions declared $ 0.550 $ 0.545 $ 1.650 $ 1.635
======= ======= ======= =======
FFO Reconciliation
---------------------------
Income available to common
shareholders $ 3,199 $ 9,060 $12,956 $27,193
Adjustments:
Depreciation and amortization on
rental properties 17,753 12,596 51,173 35,464
Net (gain) loss on sale of rental
property 715 - (901) -
Minority interest of common OP unit
holders 637 1,644 2,592 3,961
Cumulative effect of accounting
change - - 1,014 -
Discontinued operations:
Depreciation on rental property 197 161 693 478
Impairment / gain on sales of
properties (2,454) - (2,280) -
------- ------- ------- -------
FFO $20,047 $23,461 $65,247 $67,096
======= ======= ======= =======
Weighted average common shares/OP
Units outstanding -
assuming dilution 35,223 34,118 35,205 33,058
======= ======= ======= =======
FFO per weighted average common
share / OP Unit -
assuming dilution $ 0.57 $ 0.69 $ 1.85 $ 2.03
======= ======= ======= =======
Chateau Communities, Inc.
Financial Information
As of
September 30, 2002, and December 31, 2001
(Dollars in thousands)
Same Store Results
------------------
Growth
Three Months 2002
Ended over
2002 2001 2001
---- ---- ----
Property revenues $ 50,238 $ 48,438 3.7 %
Property expenses 19,039 18,108 5.1 %
-------- -------- ------
Net operating income $ 31,199 $ 30,330 2.9 %
-------- -------- ======
Manufactured home communities 158 158
-------- --------
Park model/RV communities 3 3
-------- --------
Available homesites 52,753 52,537
======== ========
Growth
Nine Months 2002
Ended over
2002 2001 2001
---- ---- ----
Property revenues $146,490 $142,095 3.1 %
Property expenses 52,068 50,598 2.9 %
-------- -------- ------
Net operating income $ 94,422 $ 91,497 3.2 %
-------- -------- ======
Manufactured home communities 156 156
-------- --------
Park model/RV communities 3 3
-------- --------
Available homesites 51,636 51,399
======== ========
Summarized Financial Information
--------------------------------
Balance sheet information: September 30, December 31,
2002 2001
---- ----
Rental property, net $ 1,346,042 $ 1,401,465
Rental property, before accumulated
depreciation $ 1,678,790 $ 1,686,674
Total assets $ 1,532,497 $ 1,591,873
Total debt $ 1,010,957 $ 1,053,436
Minority interests $ 138,769 $ 144,919
Shareholders' equity $ 314,845 $ 344,954
Common shares outstanding 29,281,841 29,188,440
OP Units outstanding 5,834,943 5,833,263
Property information:
Manufactured home communities 204 214
Park model/RV communities 3 3
Available homesites 68,842 70,723
Occupied homesites 59,933 62,478
Occupancy rate:
Total portfolio 87.1 % 88.3 %
Active expansion 79.1 % 79.6 %
Stabilized 91.7 % 92.9 %
Greenfield 30.7 % 30.8 %
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