Crescent Real Estate Equities, Inc. announces 17 percent growth in funds from operations for first quarter 1996.NEW YORK--(BUSINESS WIRE)--April 26, 1996--Crescent Real Estate Equities, Inc. (NYSE NYSE See: New York Stock Exchange :CEI CEI Competitive Enterprise Institute CEI Conferenza Episcopale Italiana (Italian bishop conference) CEI Central European Initiative CEI Comitato Elettrotecnico Italiano (Italian Electrotechnical Committee) ), today announced its operating results for the quarter ended March 31, 1996. 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 first quarter of 1996 were $17.8 million or $.62 per share and equivalent unit, as compared to $11.9 million, or $.53 per share and equivalent unit for the first quarter of 1995 which represents an increase of 17 percent per share. FFO for both periods is calculated based on the revised definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts. For the quarter ended March 31, 1996, revenues increased 65.8 percent to $43.1 million, compared to $26 million for 1995. First quarter net income was $7 million, or $.30 per share, compared with net income of $3.8 million, or $.24 per share for the first quarter of 1995 which represents an increase of 25 percent per share. "Our first quarter operating results are in line with our expectations," commented Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. Haddock haddock: see cod. haddock Valuable North American food fish (Melanogrammus aeglefinus, family Gadidae). A bottom-dweller that feeds on invertebrates and fishes, it resembles the cod, with its chin barbel (fleshy feeler) and two anal and three dorsal , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "The strong demand for class A office space is continuing to put upward pressure on rental rates in many of our markets as large blocks of contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. space continue to disappear. "We are also seeing an increased supply of attractive acquisition opportunities resulting primarily through accelerated dispositions by life insurance companies, as well as continued divestitures by corporate owners. These and other transactions are leading us to new markets which we believe have growth prospects comparable in scale to that which our existing markets have experienced and are expected to continue to experience." The following is a summary of first quarter highlights: Office and Retail Properties -- During the quarter 150,000 square feet of leases were renewed/relet at a weighted-average base rent of $19.40 per square foot compared to expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. leases with a weighted- average base rent (including expense recoveries) of $14.60 per square foot. The leases have a weighted-average term of eight years. Overall occupancy remained at approximately 92 percent at March 31, 1996. Hotel Properties -- During the first quarter weighted-average occupancy, average daily rate and revenue per available room for Crescent's three hotel properties were 79 percent, $144 and $117, respectively, compared to 77 percent, $132 and $106, respectively, for the same period of 1995. Investments in Residential Developments -- The One Beaver Creek Beaver Creek may refer to numerous places, mainly stream and towns. The USGS database records 658 waterways and 19 populated places using the name in the United States and numerous others using related forms like Beaver Creek Ditch, Beaver Creek Swamp, Beaver Creek Lake, Beaver Place and Market Square condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. projects owned by Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Development Management Corporation ("CDMC CDMC Centre de Documentation de la Musique Contemporaine (French: Contemporary Music Documentation Center) CDMC Children's Digital Media Center CDMC Contemporary Music Documentation Center CDMC CINDI ") and located at the Beaver Creek ski resort in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. have presold presold Of, relating to, or being a new security issue that is sold out before all the specifics of the issue have been announced. In the case of a bond issue, this term usually means that sufficient orders for the issue have been placed before announcement 29 of the 44 planned units at an aggregate sales price of $34.4 million. These units are expected to close beginning in the fourth quarter of 1997. CDMC also acquired for $3.8 million a 50 percent interest in East West Resorts, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("EWR EWR Europäischer Wirtschaftsraum (German: European Marketing Area) EWR Early Warning Report EWR Early Warning Radar EWR Extreme Warfare Revenge (game) EWR Electricity at Work Regulations "), a rental property management company located in Avon Avon, former county, England Avon, former county, SW England, bordering the Severn estuary and the Bristol Channel. Created in 1974 from S Gloucestershire, Bristol, and N Somerset. , Colo. The remaining 50 percent interest in EWR is owned by Harry Frampton. EWR currently manages over 450 rental units located at the Beaver Creek and Breckenridge ski resorts Breckenridge Ski Resort, or just Breckenridge or Breck, is a ski resort located in Summit County, Colorado near the town of Breckenridge. The resort is owned and operated by Vail Resorts which also operates three other resorts in the state (Vail, Beaver Creek, and . Crescent is a real estate investment trust which, through its UPREIT partnership, owns a portfolio of real estate assets, including 32 office properties and two retail centers totaling 9.4 million square feet, three hotels totaling 1,303 rooms and economic interests in six single family residential land developments. The rental properties are located in 17 metropolitan submarkets in Texas, Colorado, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . Crescent is a fully integrated real estate company that provides management and leasing services with respect to its rental properties. -0-
CRESCENT REAL ESTATE EQUITIES, INC.
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
QUARTER ENDED
MARCH 31,
1996 1995
-------- --------
RENTAL REVENUES $ 41,997 $ 25,208
INTEREST AND OTHER INCOME 1,063 747 RENTAL PROPERTY EXPENSES 14,954 9,706 CORPORATE G & A EXPENSES 1,158 798 INTEREST EXPENSE 9,159 4,470 DEPRECIAITON AND AMORTIZATION 10,037 6,598
INCOME FROM INVESTMENTS IN
RESIDENTIAL DEVELOPMENT CORPORATIONS 811 937
MINORITY INTEREST (1,583) (1,529) NET INCOME $ 6,980 $ 3,791 WEIGHTED-AVERAGE SHARES OUTSTANDING 23,535 16,047 NET INCOME PER SHARE $ .30 $ .24
SUMMARIZED BALANCE SHEET INFORMATION
(IN THOUSANDS)
(UNAUDITED)
March 31, Dec. 31,
1996 1995
-------- --------
CASH AND CASH EQUIVALENTS $ 20,365 $ 16,931
INVESTMENT PROPERTIES, NET 844,144 833,545 TOTAL ASSETS 987,035 964,171 BORROWINGS UNDER CREDIT FACILITY -- 20,000 MORTGAGES AND NOTES PAYABLE 484,302 424,528
CRESCENT REAL ESTATE EQUITIES, INC.
STATEMENTS OF FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
QUARTER ENDED
MARCH 31
1996 1995
------- -------
INCOME BEFORE MINORITY INTEREST $ 8,563 $ 5,320
ADJUSTMENTS:
DEPRECIATION AND AMORTIZATION
OF REAL ESTATE ASSETS 8,889 5,929
ADJUSTMENT FOR UNCONSOLIDATED
INVESTMENTS IN REAL ESTATE
MORTGAGES AND COMMON STOCK OF
RESIDENTIAL DEVELOPMENT
CORPORATIONS (a) 322 649
------- -------
FUNDS FROM OPERATIONS (b) $17,774 $11,898
======= =======
WEIGHTED-AVERAGE SHARES/UNITS
OUTSTANDING 28,858 22,522
FUNDS FROM OPERATIONS PER SHARE $ .62 $ .53
SUPPLEMENTAL INFORMATION:
RENTAL INCOME FROM
STRAIGHT-LINE RENTS $ 874 $ 96
RESIDENTIAL DEVELOPMENT
CAPITAL EXPENDITURES 476 370
NON-INCREMENTAL REVENUE
GENERATING EXP.:
RENTAL PROPERTY CAPITAL
EXPENDITURES 139 273
TENANT LEASING COSTS 777 822
NOTES:
(a) Represents undistributed operating cash flow held for future
development/investment expenditures or dividends.
(b) "Funds from Operations" ("FFO"), based on revisions adopted by the
Board of Governors of the National Association of Real Estate
Investment Trusts, is defined as net income (loss) (computed
in accordance with generally accepted accounting principles),
excluding gains (or losses) from debt restructuring and sales of
property, plus depreciation and amortization of real estate assets,
and after adjustments for the company's unconsolidated investments
in residential development corporations. FFO does not represent
cash generated from operating activities in accordance with
generally accepted accounting principles (which, unlike FFO,
generally reflects all cash effects of transactions and other
events that enter into the determination of net income).
CONTACT: Crescent Real Estate Dallas E. Lucas, 212/836-4216 |
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