Crescent Real Estate Equities Co. announces quarterly operating results.FORT WORTH, Texas--(BUSINESS WIRE)--April 29, 1997--Crescent Real Estate Equities Co. (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, 1997. 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 1997 was $33.6 million, or $.39 per share and equivalent unit, as compared to $17.8 million, or $.31 per share and equivalent unit, for the first quarter of 1996, which represents an increase of 25.8 percent per share. For the quarter ended March 31, 1997, net income was $16.8 million, or $.23 per share, on total revenues of $84.1 million, compared with net income of $7.0 million, or $.15 per share, on total revenues of $43.1 million, for the first quarter of 1996, which represents an increase of 53.3 percent per share. Historical information has been adjusted, as applicable, to reflect the company's two-for-one stock split, effected on March 26, 1997. The following is a summary of first quarter operating highlights: Office and retail properties: For the first quarter ended March 31, 1997, leases were executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. renewing 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 re-leasing 377,341 net rentable square feet of office space at a weighted average full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. 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 (including expense recoveries) and an FFO annual net effective rate (calculated as weighted average full-service rental rate minus 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. ) of $17.70 and $11.32 per share foot, respectively, 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 full-service rental rate and an FFO annual net effective rate of $15.20 and $8.26 per square foot, respectively, (with each of these weighted average full-service rental rates including free rent and scheduled rent increases that would be taken into account under 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 ) a 16 percent and 37 percent increase, respectively. The leases executed for the three months ended, all of which have commenced or will commence during the next twelve months, required tenant improvement and leasing costs of $7.22 and $5.46 per square foot, respectively, or $.90 and $.65 per square foot per year, respectively. The overall portfolio was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 84 percent leased (based on commenced leases) and 88 percent leased (based on executed leases) at March 31, 1997. During the first quarter, the following significant lease transaction was completed: -- 12404 Park Central -- 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. entered into a ten-year lease with Perot Systems Perot Systems Corporation NYSE: PER is an information technology services provider based in Plano, Texas. Peter Altabef has served as president, chairman, and chief executive officer since 2004. Corp. for 239,103 net rentable square feet (100 percent of the building's net rentable square feet) commencing in two stages, 109,000 net rentable square feet in July July: see month. 1997 and the balance in July 1998. Hotel & Resort Properties: For the first quarter of 1997, weighted-average 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 , average daily rate and revenue per available room for the four full-service hotel properties, including Sonoma Sonoma may refer to
For the first quarter of 1997, weighted-average occupancy, average daily rate and revenue per available room for the Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. and
Lenox Lenox, town (1990 pop. 5,069), Berkshire co., W Mass., in the Berkshire Mts., 7 mi (11 km) south of Pittsfield. It is primarily a summer resort. The Berkshire Festival, one of the country's premier music festivals, is held annually on the Tanglewood estate, which Canyon Ranch Canyon Ranch is a brand associated with several properties, communities, resorts, and spas. Properties & communities
Crescent is a fully integrated real estate company, which upon completion of certain pending transactions, will own through its subsidiaries, a portfolio of real estate assets, consisting primarily of 72 office properties and six retail properties totaling 21.5 million square feet, 90 behavioral behavioral pertaining to behavior. behavioral disorders see vice. behavioral seizure see psychomotor seizure. healthcare facilities, four full-service hotel properties totaling 1,471 rooms and two destination health and fitness resorts. The office rental properties are located primarily in 21 metropolitan submarkets in Texas and Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. . -0-
CRESCENT REAL ESTATE EQUITIES COMPANY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
March 31, Dec. 31,
1997 1996
(unaudited) (audited)
ASSETS:
Investments in Real Estate:
Land $ 182,971 $ 146,036
Building and improvements 1,756,745 1,561,639
Furniture, fixtures and equipment 26,096 24,951
Less -- Accumulated depreciation (221,730) (208,808)
---------- ----------
Net Investment in Real Estate 1,744,082 1,523,818
Cash and cash equivalents 42,692 25,592
Restricted cash and cash equivalents 25,051 36,882
Accounts receivable, net 19,842 15,329
Deferred rent receivable 19,493 16,217
Investments in real estate mortgages
and common stock of residential
development corporations 38,091 37,069
Notes receivable 40,532 28,890
Other assets, net 56,821 47,125
---------- ----------
Total assets $1,986,604 $1,730,922
========== ==========
LIABILITIES:
Borrowings under Credit Facility $ 156,000 $ 40,000
Notes payable 778,767 627,808
Accounts payable, accrued expenses
and other liabilities 43,356 48,462
---------- ----------
Total liabilities 978,123 716,270
---------- ----------
MINORITY INTERESTS:
Operating partnership, 6,640,336
and 6,640,336 units, respectively 119,255 120,227
Investment joint ventures 28,944 29,265
---------- ----------
Total minority interests 148,199 149,492
---------- ----------
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value,
authorized 250,000 shares,
72,324,190 and 36,146,380 shares
issued and outstanding at March
31, 1997 and Dec. 31, 1996,
respectively 723 361
Additional paid-in capital 905,792 905,724
Deferred compensation on
restricted shares (374) (364)
Retained deficit (45,859) (40,561)
---------- ----------
Total shareholders' equity 860,282 865,160
---------- ----------
Total liabilities and
shareholders' equity $1,986,604 $1,730,922
========== ==========
TOTAL SHARES AND UNITS OUTSTANDING 85,604,862/a 85,573,432/a
STOCK PRICE $ 26.750 $ 26.375
MARKET VALUE OF EQUITY $2,289,930 $2,256,999
TOTAL MARKET CAPITALIZATION
INCLUDING DEBT $3,224,697 $2,924,807
DEBT AS A % OF TOTAL MARKET
CAPITALIZATION 29% 23%
/a Units are exchangeable on a one-for-two basis for Common Shares.
CRESCENT REAL ESTATE EQUITIES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share data)
Quarter Ended
March 31,
(unaudited)
1997 1996
---- ----
REVENUES:
Office and retail properties $ 70,415 $ 37,465
Hotel properties 8,985 4,532
Interest and other income 4,674 1,063
----------- -----------
Total revenues 84,074 43,060
----------- -----------
EXPENSES:
Real estate taxes 7,925 4,033
Repairs and maintenance 5,151 2,200
Other rental property operating 17,520 8,721
Corporate general and administrative 4,845 1,158
Interest expense 14,744 9,159
Amortization of deferred financing costs 649 983
Depreciation and amortization 13,952 9,054
----------- -----------
Total expenses 64,786 35,308
----------- -----------
Operating income 19,288 7,752
OTHER INCOME:
Equity in net income of residential
development corporations 957 811
----------- -----------
INCOME BEFORE MINORITY INTERESTS 20,245 8,563
Minority interests (3,494) (1,583)
----------- -----------
NET INCOME $ 16,751 $ 6,980
=========== ===========
PER SHARE DATA:
Net income $ 0.23 $ 0.15
=========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING 72,305,184 47,070,628
=========== ===========
DEBT SERVICE COVERAGE RATIO 3.0 2.9
=========== ===========
CRESCENT REAL ESTATE EQUITIES COMPANY
STATEMENTS OF FUNDS FROM OPERATIONS
(dollars in thousands, except per share data)
Quarter Ended
March 31,
1997 1996
---- ----
INCOME BEFORE MINORITY INTERESTS $20,245 $ 8,563
ADJUSTMENTS:
Depreciation and amortization of real
estate assets 13,496 8,889
Adjustment for unconsolidated
investments in real estate mortgages
and common stock of residential
development corporations 266 322
Minority interest in Joint Ventures (416) --
------- -------
FUNDS FROM OPERATIONS $33,591 $17,774
======= =======
WEIGHTED-AVERAGE SHARES/UNITS OUTSTANDING 85,586 57,719
DIVIDEND PAID PER SHARE DURING PERIOD $ 0.305 $ 0.275
SUPPLEMENTAL INFORMATION:
Rental income from straight-line rents $(3,276) $ (887)
Residential development capital
expenditures (454) (476)
Non-incremental revenue generating exp.:
Hotel property capital expenditures (675) (139)
Office and retail property capital
expenditures (491) --
Tenant improvement and leasing costs (2,614) (777)
Depreciation and amortization of non-real
estate assets 293 165
Amortization of deferred financing costs 649 983
CONTACT: Crescent Real Estate 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. Lucas Lucas (l `kəs), variant of Luke. , 817/877-0477
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