Cornerstone Realty Reports Third Quarter 2004 Results.RICHMOND Richmond, cities, United States Richmond. 1 City (1990 pop. 87,425), Contra Costa co., W Calif., on San Pablo Bay, an inlet of San Francisco Bay; inc. 1905. , Va. -- Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Income Trust, Inc. (NYSE NYSE See: New York Stock Exchange : TCR TCR T cell receptor. ) today reported operating results for the third quarter and first nine months ended September September: see month. 30, 2004. 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 ended September 30, 2004 were $10.8 million, or $0.19 per common share basic and 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. , compared with $11.1 million, or $0.20 per common share basic and diluted, in the third quarter of 2003. FFO for the first nine months of 2004 was $34.7 million, or $0.60 per common share basic and diluted, before severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other organizational costs incurred in the first quarter of 2004, compared with $32.2 million, or $0.60 per common share basic and diluted, last year. Including the severance and other organizational costs incurred in the first quarter of 2004, FFO for the first nine months of 2004 was $33.9 million, or $0.59 per common share basic and diluted. Net income available to common shareholders for the third quarter ended September 30, 2004 was $0.2 million, or $0.00 per common share basic and diluted, compared with a net loss available to common shareholders of $2.4 million, or $0.04 per common share basic and diluted, in the third quarter of 2003. For the first nine months of 2004, net loss available to common shareholders was $4.3 million, or $0.08 per common share basic and diluted, compared with a net loss available to common shareholders of $4.5 million, or $0.08 per common share basic and diluted, in the first nine months of 2003. FFO is the generally accepted measure of operating performance for a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ). A reconciliation of net income to FFO is included in the Operating Results table at the end of this news release. In the third quarter of 2004, total revenues were $45.1 million compared with $45.0 million last year. Average physical occupancy in the third quarter of 2004 was 93.8% compared with 93.0% last year, and the average rent per unit in the third quarter of this year was $667 compared with $674 last year. In the first nine months of 2004, total revenues were $135.2 million compared with $127.0 million a year ago. Average physical occupancy in the first nine months of 2004 was 93.1% compared with 92.0% a year ago, and the average rent per unit for the first nine months of 2004 was $672 compared with $675 last year. Commenting on the third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results, Glade M. Knight, chairman and chief executive officer, said: "We are encouraged by positive revenue trends and leasing momentum within the overall portfolio during the third quarter as our physical occupancy trends continue to improve and our overall concessions have declined. Our third quarter funds from operations, however, were negatively impacted by higher turn, property management, and taxes and insurance expenses, in addition to 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. resulting from the timing delay in reinvesting our joint venture proceeds. Given our current occupancy levels, we do not expect the higher turn and property management expenses to continue in the fourth quarter," Knight said. Comparable Property Operations Comparable property operations is a measure Cornerstone uses to evaluate performance and is not deemed to be an alternative to net income as determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . In addition, this measure as calculated by Cornerstone may not be comparable to similarly entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: measures of other companies. At the end of the third quarter of 2004, Cornerstone's "same-community" portfolio consisted of 77 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. apartment communities containing 20,542 apartment homes that the company owned since January January: see month. 1, 2003, representing approximately 90% of Cornerstone's 22,910 units. For the third quarter of 2004, same-community property 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. (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 less 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. ) decreased 1.6% compared with the third quarter of last year. Third quarter 2004 rental income increased 1.3% compared to the third quarter of last year, primarily a result of an increase in average physical occupancy to 93.8% from 92.9%. Operating expenses increased 4.9% compared with the third quarter of 2003, primarily attributable to higher turn costs associated with an increased number of move-ins during the quarter, and higher taxes and insurance expenses. For the first nine months of 2004, same-community property operating income decreased 0.6% compared with the first nine months of 2003. Rental income in the first nine months of 2004 increased 0.5% and expenses increased 2.0% compared with the first nine months of last year. Joint Venture and Property Management Agreement On July July: see month. 22, 2004 Cornerstone entered into a joint venture with Sterling American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Property Inc. of Great Neck, N.Y. The joint venture has acquired Cornerstone's two apartment communities in Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. , S.C. for approximately $16.9 million. The Columbia properties, Stone Ridge Apartments and The Arbors at Windsor Windsor, British royal family Windsor (wĭn`zər), family name of the royal house of Great Britain. The name Wettin, family name of Albert of Saxe-Coburg-Gotha, consort of Queen Victoria, was changed to Windsor by George V in 1917. Lake Apartments, have a total of 419 units. Cornerstone has a 10% limited partner interest in the joint venture, and the company will continue to manage the two communities. Cornerstone recognized a $3.5 million gain based upon the sale of its 90% interest in those communities. The gain is excluded from FFO but included in net income available to common shareholders for the three-month and nine-month periods ended September 30, 2004. Definitive Merger Agreement On October October: see month. 25, 2004 Cornerstone and Colonial Properties "Colonial Mall" redirects here. All malls with that name are owned by this company. Colonial Properties Trust NYSE: CLP is a multifamily focused real estate investment trust (REIT). Colonial manages retail, office and multi-family properties. Trust (NYSE: CLP 1. CLP - Cornell List Processor. 2. CLP - Constraint Logic Programming. ), a real estate investment trust (REIT) that owns a diversified diversified (di·verˑ·s portfolio of multifamily, office and retail properties, announced that they have entered into a definitive merger agreement under which Cornerstone will merge into Colonial Properties. The total transaction value, including the assumption or repayment of Cornerstone debt, is approximately $1.5 billion. There are a number of conditions that must occur for the merger to close. These conditions include the approval of the transaction by the shareholders of both Cornerstone and Colonial Properties, the receipt of necessary consents, the resolution of certain tax matters and the redemption of Cornerstone's Series A preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The transaction is expected to close during the first quarter of 2005. Further information on the merger agreement can be found in recent Securities and Exchange Commission (SEC) filings and news releases from both companies. Dividends A quarterly dividend of $0.20 per share was paid on October 20, 2004 to common shareholders of record on September 30, 2004. The company also paid a quarterly dividend of $0.5938 per share on October 20, 2004 to record holders of its Series A Convertible Preferred Shares on September 30, 2004. Conference Call and Webcast Cornerstone will hold a live conference call and webcast Tuesday Tuesday: see week. November 9, 2004, at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to review third quarter and year-to-date results. Individual investors can access the live webcast by visiting the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of the company's Web site at www.cornerstonereit.com. Investment professionals and media should call the company's Investor Relations department at (804) 643-1761 for further information on participating in the conference call. A replay of the conference call and webcast will be available on the company's Web site shortly after completion of the live event. Supplemental Information Additional operational and financial information for the third quarter and year-to-date periods is available in the Investor Relations section of Cornerstone's Web site at www.cornerstonereit.com. Forward Looking Statements Certain statements contained herein constitute "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 Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from results expressed or implied by such forward-looking statements. Such factors include, among other things, risks associated with the proposed merger with Colonial Properties Trust, the ability to obtain property financing, unanticipated adverse business developments affecting the company, adverse changes in the real estate markets, and local as well as general economic and competitive factors. There is no assurance that planned events or results, including, among other things, the proposed merger with Colonial Properties Trust, will be achieved. In addition, the timing and level of distributions to common shareholders are within the discretion of the company's board of directors and, pursuant to the merger agreement with Colonial Properties Trust, are subject to resolution of certain tax matters. The company on a regular basis considers what level of distributions to common shareholders is appropriate. Corporate Profile Cornerstone Realty Income Trust, Inc. (NYSE:TCR) is a fully integrated, self-managed and self-advised real estate company that has operated as a real estate investment trust (REIT) since 1993. The company focuses on the ownership and management of multifamily communities in select markets in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. and Texas. Currently Cornerstone owns 87 apartment communities with 22,910 units, a third-party property management business, apartment land under development, and ownership interests in four real estate joint ventures. Cornerstone is headquartered in Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. and its common stock trades 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. under the symbol "TCR." For more information about Cornerstone, visit the company's web site at www.cornerstonereit.com. This press release does not constitute an offer of any securities for sale.
CORNERSTONE REALTY INCOME TRUST, INC.
BALANCE SHEET DATA September 30, December 31,
In Thousands Except Per Share Amounts 2004 2003
----------------------------------------------------------------------
Assets
----------------------------------------------
Investment in Rental Property
Land $ 159,934 $ 160,192
Building and Property Improvements 1,105,456 1,103,043
Furniture and Fixtures and Other 40,198 38,735
Real Estate Under Development 11,345 5,450
----------- -----------
1,316,933 1,307,420
Less Accumulated Depreciation (259,075) (224,535)
----------- -----------
1,057,858 1,082,885
----------- -----------
Cash and Cash Equivalents 2,173 1,393
Prepaid Expenses 3,423 5,334
Deferred Financing Costs, Net 5,769 5,924
Investment in Real Estate Joint Ventures 4,168 2,649
Other Assets 32,112 26,257
----------- -----------
Total Assets $1,105,503 $1,124,442
=========== ===========
----------------------------------------------------------------------
Liabilities and Shareholders' Equity
----------------------------------------------
Liabilities
Notes Payable-Secured $ 811,449 $ 801,754
Distributions Payable 76 76
Accounts Payable and Accrued Expenses 19,757 14,950
Rents Received in Advance 554 884
Tenant Security Deposits 2,124 1,889
----------- -----------
Total Liabilities 833,960 819,553
Minority Interest of Unit Holders in
Operating Partnership 17,856 18,884
Shareholders' Equity
Preferred Stock, No Par Value,
Authorized 25,000 Shares; $25
Liquidation Preference, Series
A Cumulative Convertible Redeemable;
Issued and Outstanding 127 Shares 2,680 2,680
Common Stock, No Par Value, Authorized
100,000 Shares; Issued and Outstanding
56,200 Shares and 55,534 Shares,
Respectively 544,591 538,969
Deferred Compensation (237) (456)
Distributions Greater Than Net Income (292,989) (255,188)
Accumulated Other Comprehensive Loss (358) -
----------- -----------
Total Shareholders' Equity 253,687 286,005
----------- -----------
Total Liabilities and Shareholders' Equity $1,105,503 $1,124,442
=========== ===========
CORNERSTONE REALTY INCOME TRUST,
INC.
OPERATING RESULTS Three Months Nine Months
In Thousands Except Per Share Ended Ended
Amounts September 30, September 30,
2004 2003 2004 2003
----------------------------------------------------------------------
Revenues
Rental Income $42,510 $42,686 $128,263 $120,697
Other Property Income 2,544 2,287 6,978 6,292
---------------- ------------------
Total Revenues 45,054 44,973 135,241 126,989
Expenses
Property and Maintenance 14,123 13,774 39,977 37,529
Taxes and Insurance 6,358 6,050 18,937 17,258
Property Management 1,377 1,134 3,904 3,126
General and Administrative 1,003 1,036 3,086 2,720
Depreciation and Amortization of
Real Estate Assets 13,705 13,461 41,374 38,387
Severance Costs and Other
Organizational Charges - - 760 -
Expenses Associated with the Proposed
Colonial Properties
Trust Merger 190 - 190 -
Other Depreciation 6 6 17 17
Other 9 58 187 209
---------------- ------------------
Total Expenses 36,771 35,519 108,432 99,246
Income Before Interest Income
(Expense) 8,283 9,454 26,809 27,743
Interest Income 30 108 93 170
Interest Expense (11,460)(11,932) (34,602) (34,264)
---------------- ------------------
Loss from Continuing Operations
before Gains on Sales of
Investments and Minority Interest
of Unit Holders in
Operating Partnership (3,147) (2,370) (7,700) (6,351)
Gain on Sales of Investments 3,454 - 3,454 -
Minority Interest of Unit Holders
in Operating Partnership (17) 84 126 170
---------------- ------------------
Income (Loss) from Continuing
Operations 290 (2,286) (4,120) (6,181)
Discontinued Operations
Loss from Discontinued Operations - (3) - (10)
Gain on Sales of Investments - - - 1,962
---------------- ------------------
Net Income (Loss) $290 $(2,289) $(4,120) $(4,229)
================ ==================
Distributions to Preferred
Shareholders (76) (76) (227) (227)
---------------- ------------------
Net Income (Loss) Available to
Common Shareholders $214 $(2,365) $(4,347) $(4,456)
================ ==================
Funds From Operations
Net Income (Loss) Available to
Common Shareholders $214 $(2,365) $(4,347) $(4,456)
Adjustments:
Distributions to Preferred
Shareholders 76 76 227 227
Minority Interest of Unit Holders
in Operating Partnership 17 (84) (126) (170)
Gain on Sales of Investments (3,454) - (3,454) (1,962)
Expenses Associated with the
Proposed Colonial Properties
Trust Merger 190 - 190 -
Depreciation on JV Investments 33 - 78 -
Depreciation from Discontinued
Operations - - - 162
Depreciation and Amortization of
Real Estate Assets 13,705 13,461 41,374 38,387
---------------- ------------------
Funds From Operations $10,781 $11,088 $33,942 $32,188
================ ==================
Per Share
Weighted Average Common and
Preferred Shares and
Operating Partnership Units --
Diluted 58,179 56,737 57,941 53,750
Funds From Operations Per Share
-- Basic and Diluted $0.19 $0.20 $0.59 $0.60
Common Share Distributions $0.20 $0.20 $0.60 $0.68
Net Income (Loss) from Continuing
Operations -- Basic and Diluted $0.01 $(0.04) $(0.07) $(0.12)
Net Income from Discontinued
Operations -- Basic and Diluted $- $- $- $0.04
Net Income (Loss) Available to
Common Shareholders --
Basic and Diluted $- $(0.04) $(0.08) $(0.08)
Weighted Average Common Shares --
Basic and Diluted 56,170 54,729 55,933 51,684
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion