Chateau Communities Reports Year-End Results; Fourth-Quarter Charges to Reserve for Accounts Receivable Losses Negatively Impacts Quarter and Annual Performance.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)--Feb. 27, 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 ), 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 fourth quarter and twelve months ended December December: see month. 31, 2001. During the fourth quarter, the company continued its intensive review 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 and recognized an unusually high charge to earnings as a result of uncollectible accounts Uncollectible account An account which cannot be collected by a company because the customer is not able to pay or is unwilling to pay. and associated collection costs of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.5 million. As previously discussed, economic conditions in many of the company's market areas have created a more difficult-than-normal collections environment for the company. These conditions have significantly impacted the cost of collections, as well as the overall ability to collect past due amounts. In addition, difficulties encountered related to the implementation and utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the company's enterprise-wide technology solution, which was initiated in the last quarter of 2000, were also a factor in the unusually high charge recognized by the company in 2001. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , the majority of problems were isolated to less than 10 percent of the company's communities, and the company is working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to bring the collections performance of these locations in line with the rest of the portfolio. Although management believes that these issues have been substantially resolved, it will continue to monitor the collections performance of each community as well as to improve operational processes to ensure timely billing and collection of delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. accounts. Fourth-Quarter Results Total revenues for the fourth quarter of 2001 were $69.8 million, an increase of 29.5 percent from $53.9 million for the fourth 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 FFO See: Funds from operations ) for the fourth quarter were $21.2 million as compared to $22.7 million in the fourth quarter 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 was $0.61 per share compared to $0.70 per share for the same quarter in 2000. For the fourth quarter, 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. was $30 million in 2000 compared to $27.7 million in 2001. 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 was $48.1 million compared to $46.6 million in the prior year 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. were $20.4 million compared to $16.6 million in the prior year. As of December 31, 2001, 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 in Chateau's stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. portfolio, which does not include active expansion, was 92.5%. The active expansion portfolio had occupancy of 79.5%, while the company's 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 portfolio had occupancy of 30.8%, for a total occupancy of 88.3%. Twelve-Month Results Full-year revenues were $239.5 million compared to $204.8 million for 2000. FFO increased 2.8 percent to $88.3 million as compared to $85.9 million for 2000. On a diluted, per-share basis, FFO was $2.63 in 2001 compared to $2.67 per share in 2000. Same store 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. revenue for the full year was $192.2 million compared to $185 million in 2000 and property operating expenses were $73.1 million compared to $65.4 million in 2000. Same store net operating income was $119.2 million in 2001 compared to $119.6 million in 2000. Development and Expansion Expansion and development efforts in 2001 resulted in the completion of approximately 350 homesites, and progress was made toward completion of sites currently in development which are expected to be completed in 2002. During 2001, the company invested $25 million in development and expansion efforts, including the finish costs to fill sites. In 2001, 325 of the company's development and expansion sites became revenue producing. Home Sales 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 ), Chateau's home sales subsidiary, sold 684 new or pre-owned homes in 2001 as compared to 563 in 2000. CSI earned commissions in brokered sales of 1,221 homes in 2001 as compared to 1,198 in 2000. Dispositions Chateau has made progress on its strategic objective of selling non-core assets. In 2001, dispositions aggregating approximately $43 million were completed. Additionally, assets valued at approximately $75 million are currently being evaluated for sale in order to complete the company's planned strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of its portfolio. Proceeds from these transactions would be used to reduce overall leverage. Debt As of December 31, 2001, Chateau has total debt of approximately $1.1 billion, mainly comprising $470 million of senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. at an average rate of 7.5%, $285.7 million of secured mortgage debt at an average rate of 7.6%, approximately $125.1 million under its lines of credit at an average rate of 3.0%, and an acquisition bridge facility of $162.7 million at an average rate of 3.6%. Approximately 72.5% of the company's total debt is fixed rate debt with a weighted average interest rate of 7.5% and a weighted average maturity of 7.2 years. The company plans to repay the remaining amount outstanding on the bridge facility, which matures in August 2002, through the issuance of additional debt, equity securities or the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of properties. 2002 Operations Performance in 2002 is predicated on same store rental increases of between 4 and 4.25 percent, and relatively flat occupancy resulting in overall rental growth in the range of 3.5 to 4 percent. Operating expenses in the same store portfolio are anticipated to decrease slightly, resulting in same store growth of approximately 5.5 to 6 percent. Same store operating expenses include increases in property and casualty insurance of approximately 100 percent and increases of approximately 12 percent for employee-related health benefit costs. Given current economic conditions, collections will continue to be difficult into the future. Nonetheless, the company anticipates that total collection costs should return to more normal historic levels, and these costs are included as such in 2002 same store expenses. Actual company performance in 2002 will be impacted in four areas. In the later part of 2001, the company sold approximately $42 million of properties at a blended cap rate of approximately 8.75%. Proceeds from sales were used to repay borrowings on the company's acquisition credit facility. The 2001 dispositions will have a negative effect on 2002 FFO of approximately $0.07 per share. The sale of additional targeted properties in 2002, which may occur as market conditions permit, will also have a dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). depending on sale prices and timing. In addition, the company will proceed with its plan to convert $150 million of its remaining variable rate debt to longer-term, fixed rate debt. The sales of assets and the conversion of debt could impact 2002 FFO in the range of $0.10 to $0.15 per share. The company's development projects caused approximately $0.02 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. to this year's performance and the company expects 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. dilution of between $0.02 and $0.04 FFO per share in 2002. Given the uncertainties of timing and market pricing for asset sales, the company anticipates FFO per share to range between $2.60 and $2.70 for the coming year. 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:
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. For 2002 we have re-dedicated our entire company to the improvement of property performance by focusing on the five building blocks of property management: collections, budget control, property appearance, sales and marketing, and resident relations. We look forward to this year and our progress toward strategic objectives, stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of our balance sheet, and enhanced property performance resulting in a much better, more profitable company into the future." Management will hold a teleconference call Thursday Thursday: see week. , February February: see month. 28, 2001, at 1:00 p.m. Eastern Standard Time to discuss fourth-quarter and 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. 2001 results. To participate, call toll-free 800/530-9010 and request the Chateau Communities teleconference. An audio replay of the call will be available through 7:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. Wednesday Wednesday: see week. , March 6. To access the replay, dial toll free 800/633-8284, 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. 20310823. Headquartered in Greenwood Village, Colo., Chateau is the largest owner/manager of manufactured home communities in the U.S. Its portfolio consists of 216 communities, with an aggregate of approximately 70,300 residential homesites and 1,359 park model/RV sites. In addition, Chateau manages 38 manufactured home communities with approximately 8,100 residential homesites. The company owns or has options on 15 greenfield development communities comprising approximately 5,400 sites for future development. Chateau operates in 37 states. Please visit Chateau Communities at www.chateaucomm.com. 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 same store net operating income growth, additional site expansions, community acquisition, disposition, 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 offered products and services, and the condition of capital markets generally, all of which may affect the company's ability to achieve its objectives.
CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2001 AND 2000
(Amounts in thousands, except per-share/OP unit amounts)
Three Months Ended Twelve Months Ended
------------------ -------------------
2001 2000 2001 2000
---- ---- ---- ----
Rental income $ 65,581 $ 47,073 $224,431 $186,963
Interest income 2,615 3,499 10,084 10,794
Management fee and other
income 1,570 3,300 5,005 7,008
------- ------- ------- -------
Total revenue 69,766 53,872 239,520 204,765
Property operating and
maintenance 23,060 13,242 70,779 52,419
Real estate taxes 4,566 3,432 15,702 13,426
Administrative 2,650 2,960 9,881 9,878
------- ------- ------- -------
Operating and adminis-
trative expenses 30,276 19,634 96,362 75,723
------- ------- ------- -------
Income before interest
and depreciation 39,490 34,238 143,158 129,042
Interest and related
amortization 15,938 9,726 47,618 36,400
Depreciation and
amortization 21,654 11,463 57,919 43,920
------- ------- ------- -------
Income before minority
interests 1,898 13,049 37,621 48,722
Impairment and gains
(losses) on sales of
properties (1,503) - (1,503) -
------- ------- ------- -------
Income before minority
interests 395 13,049 36,118 48,722
Less income (loss)
allocated to minority
interests:
Preferred OP Units 1,524 1,524 6,094 6,094
Common OP Units (193) 1,300 3,768 4,842
------- ------- ------- -------
Net income (loss)
available to common
shareholders $ (936) $ 10,225 $ 26,256 $ 37,786
======= ======= ======= =======
Weighted average common
shares outstanding 28,853 28,499 28,723 28,480
======= ======= ======= =======
Weighted average common
shares outstanding
-- assuming dilution 29,050 28,625 28,923 28,574
======= ======= ======= =======
Weighted average common
shares/OP Units
-- assuming dilution 34,981 32,247 33,546 32,224
======= ======= ======= =======
Per common share/OP unit:
Net income (loss)
-- basic $ (0.03) $ 0.36 $ 0.91 $ 1.33
======= ======= ======= =======
-- assuming dilution $ (0.03) $ 0.36 $ 0.91 $ 1.32
======= ======= ======= =======
FFO -- assuming
dilution $ 0.61 $ 0.70 $ 2.63 $ 2.67
======= ======= ======= =======
Dividends/distributions
declared $ 0.545 $ 0.515 $ 2.18 $ 2.06
======= ======= ======= =======
CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND TWELVE MONTHS
ENDED DECEMBER 31, 2001 AND 2000
(Amounts in thousands, except per-share/OP unit amounts)
FFO Reconciliation Three Months Ended Twelve Months Ended
------------------ ------------------ -------------------
2001 2000 2001 2000
---- ---- ---- ----
Income before minority
interests $ 395 $ 13,049 $ 36,118 $ 48,722
Plus:
Depreciation and
amortization 21,654 11,463 57,919 43,920
Impairment and gains/
losses on sales of
properties 1,503 - 1,503 -
Less:
Income allocated to
Preferred OP Units 1,524 1,524 6,094 6,094
Depreciation expense on
non-real estate assets 792 308 1,115 631
------- ------- ------- -------
FFO $ 21,236 $ 22,680 $ 88,331 $ 85,917
======= ======= ======= =======
Weighted average common
shares/OP Units
outstanding -- assuming
dilution 34,981 32,247 33,546 32,224
======= ======= ======= =======
FFO per weighted average
common share/OP Unit
-- assuming dilution $ 0.61 $ 0.70 $ 2.63 $ 2.67
======= ======= ======= =======
Same Store Results Three Months Ended Growth
------------------ ------------------
2001 2000 2001 over 2000
---- ---- --------------
Property revenues $ 48,110 $ 46,581 3.3 %
Property expenses 20,447 16,556 23.5 %
------- ------- -------
Net operating income $ 27,663 $ 30,025 (7.9)%
------- ------- =======
Manufactured home
communities 160 160
------- -------
Park model/RV communities 3 3
------- -------
Available homesites 52,078 51,570
======= =======
Twelve Months Ended Growth
-------------------
2001 2000 2001 over 2000
---- ---- --------------
Property revenues $192,234 $185,026 3.9 %
Property expenses 73,066 65,417 11.7 %
------- ------- -------
Net operating income $119,168 $119,609 (0.4)%
------- ------- =======
Manufactured home communities 160 160
------- -------
Park model/RV communities 3 3
------- -------
Available homesites 52,078 51,570
======= =======
CHATEAU COMMUNITIES, INC.
FINANCIAL INFORMATION
AS OF
DECEMBER 31, 2001 AND DECEMBER 31, 2000
(Dollars in thousands)
Summarized Financial Information
--------------------------------
Balance sheet information: December 31, 2001 December 31, 2000
----------------- -----------------
Rental property, net $ 1,408,000 $ 912,000
Rental property, before
accumulated depreciation $ 1,696,000 $ 1,147,000
Total assets $ 1,592,000 $ 1,018,000
Total debt $ 1,057,000 $ 535,000
Minority interests $ 145,000 $ 117,000
Shareholders' equity $ 345,000 $ 336,000
Common shares outstanding 29,188,440 28,531,675
OP Units outstanding 5,833,263 3,592,794
Property information:
Manufactured home communities 214 163
Park model/RV communities 3 3
Available homesites 70,723 52,347
Occupied homesites 62,478 47,678
Occupancy rate 88.3 % 91.1 %
Debt information:
as of December 31, 2001
Principal Weighted average
Balance interest rate Maturity date
--------- ---------------- -------------
Fixed rate mortgage debt $ 285,650 7.63% 2002-2011
Senior unsecured debt 470,000 7.47% 2003-2021
Unsecured installment debt 9,942 7.50% 2012
Unsecured acquisition bridge
loan 162,700 3.59% 2002
Lines of credit 125,144 3.02% 2004
Other 3,317 - -
---------
Total debt $1,056,753
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