Crescent Real Estate Equities, Inc. announces quarterly operating results and property acquisition.NEW YORK--(BUSINESS WIRE)--Oct. 24, 1995--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) ), Tuesday Tuesday: see week. announced its operating results for the quarter and the nine months ended Sept. 30, 1995. 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. for the third quarter of 1995 were $18.3 million, or $.64 per share and equivalent unit, as compared to $13.1 million, or $.58 per share and equivalent unit for the third quarter of 1994. Funds from operations for the nine months ended Sept. 30, 1995 were $49.6 million, or $1.87 per share and equivalent unit, as compared to $34.7 million, or $1.54 per share and equivalent unit on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis for the nine months ended Sept. 30, 1994. Third quarter net income was $9.1 million, or $.39 per share, compared with net income of $4.7 million, or $.29 per share for the third quarter of 1994. For the nine months ended Sept. 30, 1995, net income was $21 million, or $1.05 per share, compared with pro forma net income of $11.3 million, or $.71 per share for the nine months ended Sept. 30, 1994. "We are pleased with our quarterly operating results," 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]. Iladdock, 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. . "Our office markets are continuing to accelerate ahead of expectations in terms of 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 and 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. rate gains. As a result, we have been able to increase our quoted rents at substantially all of our properties 15-20 percent since the second quarter." 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. also announced the acquisition of Ptarmigan ptarmigan (tär`məgən): see grouse. ptarmigan Any of three or four species of grouse (genus Lagopus) of cold regions. Ptarmigan plumage changes from white in winter to gray or brown, with barring, in spring and summer. Place, a 419,000 square foot office building located in the Cherry Creek Cherry Creek may refer to:
n. A geographic, economic, or specialized subdivision of a market. adj. Being below what is usual in a particular market: submarket wages; submarket interest rates. of Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. . The property was acquired for $31.5 million which represents a 46 percent discount to the building's estimated replacement cost. The property is currently 74 percent occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. with existing rents 20 percent below comparable market rates. The Cherry Creek submarket was 90 percent occupied at Sept. 30, 1995 and has experienced a 15 percent increase in rental rates since the end of 1994. Crescent plans to reposition the building with minor renovations and a redirected marketing and leasing plan in order for it to be closer aligned with The Citadel, Crescent's other building in this submarket. Crescent expects its initial yield of 8 percent to increase substantially as the building's occupancy is increased and existing leased space is renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. or relet at market rates. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. 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 , "Our pipeline of acquisition opportunities continues to be full. In particular, we are evaluating some very attractive office portfolios in new growth markets. These selective transactions would enable Crescent to establish a dominant ownership position in some of the strongest markets in the country." Crescent is a real estate investment trust which owns a portfolio of real estate assets, including 27 office properties and 2 retail centers totaling 8.1 million square feet, 2 hotels totaling 908 rooms and economic interests in 6 single family residential land developments. The rental properties are located in 12 metropolitan submarkets in Texas, Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , and 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). . 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 NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1995 1994 1995 1994(a)
-------- -------- -------- --------
RENTAL REVENUES $ 33,086 $ 17,530 $ 84,371 $ 48,656
INTEREST AND OTHER INCOME 1,194 609 5,092 777
RENTAL PROPERTY EXPENSES 11,640 6,264 31,056 18,539
CORPORATE G & A EXPENSES 1,102 666 2,847 1,855 INTEREST EXPENSE 5,151 848 11,424 1,065 DEPRECIATION AND AMORTIZATION 8,029 5,443 21,385 16,354 INCOME FROM INVESTMENTS IN RESIDENTIAL DEVELOPMENT CORPORATIONS 3,069 1,601 5,008 4,298 MINORITY INTEREST (PARTNERSHIP UNITS) (2,369) (1,869) (6,744) (4,575) NET INCOME 9,058 4,650 21,015 11,343 WEIGHTED-AVERAGE SHARES OUTSTANDING 23,144 16,047 20,062 16,047 NET INCOME PER SHARE $ .39 $ .29 $ 1.05 $ .71
NOTES:
(a) Operating results for the nine months ended Sept. 30, 1994 are
presented as if the company's initial public offering, repayment of
mortgage debt and related transactions had been completed on
Jan. 1, 1994.
-0-
SUMMARIZED BALANCE SHEET INFORMATION
(IN THOUSANDS)
(UNAUDITED)
SEPTEMBER 30,
1995 1994
--------- ---------
CASH AND CASH EQUIVALENTS $ 9,750 $ 26,334
INVESTMENT PROPERTIES, NET 655,183 323,705 TOTAL ASSETS 823,702 431,100 BORROWINGS UNDER CREDIT FACILITY 20,000 86,642 LONG-TERM DEBT 289,761 --
-0-
CRESCENT REAL ESTATE EQUITIES, INC.
STATEMENTS OF FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1995 1994 1995 1994
------- ------- ------- -------
INCOME BEFORE MINORITY
INTEREST (a) $11,279 $ 6,519 $27,611 $15,918
ADJUSTMENTS: DEPRECIATION AND AMORTIZATION OF REAL ESTATE ASSETS (a) 7,110 4,984 19,094 15,126 AMORTIZATION OF DEFERRED FINANCING COSTS 643 343 1,735 1,017 DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS 153 116 433 211 ADJUSTMENT FOR UNCONSOLIDATED INVESTMENTS IN REAL ESTATE MORTGAGES AND COMMON STOCK OF RESIDENTIAL DEVELOPMENT CORPORATIONS (b) (866) 1,155 3,002 2,421
OTHER (c) -- -- (2,300) --
------- ------- ------- -------
FUNDS FROM OPERATIONS (d) 18,319 $13,117 49,575 $34,693
======= =======
ADJUSTMENTS:
RENTAL INCOME FROM
STRAIGHT-LINE RENTS (263) (489)
RESIDENTIAL DEVELOPMENT
EXPENDITURES (873) (1,647)
NON-INCREMENTAL REVENUE
GENERATING EXP.;
RENTAL PROPERTY CAPITAL
EXPENDITURES (333) N/A (915) N/A
TENANT LEASING COSTS (1,027) (2,710)
------- -------
FUNDS AVAILABLE FOR
DISTRIBUTION $15,823 $43,814
======= =======
WEIGHTED-AVERAGE SHARES/UNITS
OUTSTANDING 28,821 22,522 26,508 22,522
PER SHARE DATA: FUNDS FROM OPERATIONS $ .64 $ .58 $ 1.87 $ 1.54 FUNDS AVAILABLE FOR DISTRIBUTION .55 N/A 1.65 N/A
NOTES:
(a) Net of minority interest attributable to joint venture interest in
The Woodlands office properties.
(b) Represents (distributions in excess of operating cash
flow)/undistributed operating cash flow held for future
development/investment expenditures or dividends.
(c) Represents $2.3 million net profit from sale of co-investment
rights in the Ritz-Carlton Hotel Company.
(d) "Funds from Operations," 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, and after
adjustments for the company's unconsolidated investments in
residential development corporations. Funds from Operations does
not represent cash generated from operating activities in
accordance with generally accepted accounting principles (which,
unlike Funds from Operations, generally reflects all cash effects
of transactions and other events that enter into the determination
of net income).-0-
The changes to NAREIT'S definition of funds from operations, which will be implemented beginning in January January: see month. 1996, exclude the addition to net income (loss) of depreciation and amortization related to non-real estate assets, such as deferred financing costs and corporate personal property. CONTACT: Crescent Real Estate Equities Inc. Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. E. Lucas Lucas (l  `kəs), variant of Luke. , chief financial officer, 212/836-4216
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