Crescent Real Estate Equities Company Announces 29% Per Share Increase in Third Quarter Operating Results.FT. WORTH, Texas--(BUSINESS WIRE)--Oct. 30, 1998-- HIGHLIGHTS -- Total 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 ") increased 63% to $91.7 million for the quarter ended Sept. 30, 1998 from $56.1 million for the same period in 1997. -- Office property 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. increased 12% for the nine months ended Sept. 30, 1998 over the same period in 1997. 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 for these office properties increased to 91% at Sept. 30, 1998 as compared to 87% at Sept. 30, 1997. -- During 1998, 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 1.3 million net rentable square feet with an increase in the 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 and FFO annual net effective rate of 23% and 41%, 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. -- Hotel property 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 increased 7% for the nine months ended September September: see month. 30, 1998 over the same period in 1997. -- Cash dividends were increased 45% to $0.55 per share for the quarter ended Sept. 30, 1998. -- On Aug. 11, 1998, affiliates of Union Bank, AG and the Company exercised the right provided under the forward share purchase agreement dated Aug. 12, 1997 to extend the term of the agreement until Aug. 12, 1999. -- Effective Sept. 30, 1998, the Company terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: the forward swap Forward Swap A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a "forward start swap," "delayed start swap," and a "deferred start swap. equity arrangement with Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. International. As of that date, the Company repurchased the 6,659,254 shares held by Merrill Lynch and the additional contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the share obligation provided for under that arrangement by issuing a $209.3 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. . This note is secured by a first mortgage lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. on the Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; Center mixed-use mixed-use adj. Containing or zoned for commercial and residential facilities or development: a 40-story mixed-use tower; a mixed-use parcel of land. property complex. FINANCIAL REVIEW Crescent Real Estate Equities Company Crescent Real Estate Equities Co. (NYSE: CEI) is a Fort Worth, Texas-based real estate investor with holdings mainly in office and hotel properties, including several landmark buildings in the southern United States. (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 and nine months ended Sept. 30, 1998. FFO for the third quarter of 1998 was $91.7 million, or $.62 per share and equivalent unit (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. ), as compared to $56.1 million, or $.48 per share and equivalent unit (diluted), for the third quarter of 1997, representing a 29% increase per share and equivalent unit. FFO for the nine months ended Sept. 30, 1998, was $262.6 million, or $1.87 per share and equivalent unit (diluted), as compared to $134.6 million, or $1.29 per share and equivalent unit (diluted), for the nine months ended Sept. 30, 1997, representing a 45% increase per share and equivalent unit. For the third quarter of 1998, net income applicable to common shareholders was $27.8 million, or $.21 per share (diluted), on total revenues of $179.8 million, compared with net income applicable to common shareholders of $30.4 million, or $.29 per share (diluted), on total revenues of $120.1 million, for the third quarter of 1997. For the nine months ended Sept. 30, 1998, net income applicable to common shareholders was $108.7 million, or $.85 per share (diluted), on total revenues of $510.0 million, compared with net income applicable to common shareholders of $72.2 million, or $.79 per share (diluted), on total revenues of $300.1 million, for the nine months ended Sept. 30, 1997. 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]. W. 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 , Crescent's President and Chief Executive Officer commented, "the operating results generated from our investment sectors continue to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our claim that our embedded Inserted into. See embedded system. growth is one of the strongest in the industry as evidenced by same store year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. growth in office and hotel of 12% and 7%, respectively. Furthermore, as we look into our investment sectors, we see strong underlying fundamentals that should continue to support our internal growth going forward." INVESTMENT SECTOR HIGHLIGHTS The following is a summary of quarter and year-to-date operating highlights: Office Properties ----------------- Same store net operating income growth for the nine months ended Sept. 30, 1998, compared to the nine months ended Sept. 30, 1997, was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12% for the 16.3 million square feet of office properties owned as of Jan. 1, 1997. For these properties, the occupancy at Sept. 30, 1998 and 1997 was approximately 91% and 87%, respectively. For the nine months ended Sept. 30, 1998, leases were executed (all of which have commenced or will commence during the next twelve months) renewing or re-leasing 1.3 million net rentable square feet of office space at a weighted average full-service rental rate (including expense recoveries) and a 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 $20.61 and $13.00 per square foot, respectively, compared to expiring leases with a weighted average full-service rental rate and a FFO annual net effective rate of $16.69 and $9.21 per square foot, a 23% and 41% increase, respectively (weighted average full-service rental rates include 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 ). The leases executed for the nine months ended Sept. 30, 1998, all of which have commenced or will commence during the next twelve months, required tenant improvement and leasing costs of $4.88 and $3.13 per square foot, respectively, or $0.85 and $0.61 per square foot per year, respectively. The overall office portfolio was approximately 90% leased (based on commenced leases) and 93% leased (based on executed leases) at Sept. 30, 1998. Hotel & Resort Properties ------------------------- Same store hotel rental income growth, including weighted average base rent and percentage rent, to the Company from the hotel lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). for the nine months ended Sept. 30, 1998, compared to the nine months ended Sept. 30, 1997, was approximately 7% for the four full-service hotel properties and two destination health and fitness resorts owned as of Jan. 1, 1997 (weighted average base rent includes scheduled rent increases that would be taken into account under generally accepted accounting principles). For the third quarter of 1998, weighted average occupancy, average daily rate and revenue per available room for the seven full-service hotel properties and two destination health and fitness resorts (including Four Seasons Hotel-Houston which was acquired in September 1997, Ventana Ventana Medical Ventana Medical is one of the world’s leading developers and manufacturers of medical diagnostic instrument and reagent systems providing leading-edge automation technology for use in slide-based diagnosis of cancer and infectious disease. Country Inn which was acquired in December December: see month. 1997, and Omni Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum Hotel which was acquired in January January: see month. 1998) were 80%, $214 and $170, respectively, compared to 78%, $197 and $153, respectively, for the same period of 1997. For the nine months ended Sept. 30, 1998, weighted average occupancy, average daily rate and revenue per available room for the seven full-service hotel properties and two destination health and fitness resorts (including Four Seasons Hotel-Houston, Ventana Country Inn and Omni Austin Hotel) were 77%, $222 and $169 respectively, compared to 78%, $202 and $156, respectively, for the same period of 1997. During the third quarter, the Company's Ventana Country Inn hotel property, located in Big Sur Big Sur Scenic region along the Pacific coast of California, U.S. It comprises a ruggedly beautiful stretch of seacoast 100 mi (160 km) long. Popular with tourists and naturalists, it extends southward from Carmel to the Hearst Castle at San Simeon. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , was the recipient One who receives. The person to whom an e-mail message is sent is the recipient. (communications) recipient - One who receives; receiver. E.g. "No recipient of the e-mail message will know about the other addressees who were listed in the BCC header." of a major award from the readers of Travel & Leisure magazine. Ventana was chosen as the number two "Best Small Hotel in the World," and received the highest ranking of any small hotel in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Residential Development Properties ---------------------------------- -- The Woodlands Woodlands refers to several places:
Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the - For the nine months ended Sept. 30, 1998, The Woodlands sold 1,234 lots with an average sales price of $53,000 per lot and 124 acres of commercial land, compared to 1,062 lots with an average sales price of $46,000 per lot and 17 acres of commercial land, for the same period of 1997. -- Desert Mountain, Scottsdale, Arizona Scottsdale (O'odham Vaṣai S-vaṣonĭ) is a city in Maricopa County, Arizona, United States, adjacent to Phoenix. Scottsdale has become internationally recognized as a premier and posh tourist destination, while maintaining its own identity and culture as " - For the nine months ended Sept. 30, 1998, Desert Mountain sold 148 lots with an average sales price of $381,000 per lot (including club membership), compared to 95 lots with an average sales price of $367,000 per lot (including club membership), for the same period of 1997. Beginning in October October: see month. 1998, Desert Mountain began a marketing program to promote three new villages of the development consisting of approximately 120 lots. Currently, the effort has provided Desert Mountain 54 lot reservations for which contracts are being processed. It is anticipated that over 40% of the 120 lots should close during the fourth quarter. -- Mira Vista, Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. - Beginning in the third quarter of 1998, a focused marketing effort was underway to promote the final major phase of the development consisting of approximately 96 lots. Currently, the effort has resulted in 65 new lot contracts, 50 of which occurred during the Grand Opening event weekend in late August. During the third quarter, 21 lot contracts closed, and it is anticipated that an additional 42 lots (17 of which have already closed) will close during the fourth quarter. Refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. Storage Properties ------------------------------- Americold Logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. has approximately $62 million of expansion and new product refrigerated storage properties under construction for specific accounts and is currently evaluating another $157 million of development projects. Americold Logistics, including the recent acquisitions of Freezer freezer the compartment in which meat and offal are stored at freezing temperatures of 10 to 16°F (-12 to -9°C) although there is a trend to lower temperatures of 0 to -22°F (-18 to -30°C). Services and Carmar Group, has a market share of approximately 30%, while the market share of the next largest competitor is only approximately 6%, 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. industry sources. Industry consolidation by Americold Logistics has created a market share that Americold Logistics believes will allow it to offer current and future customers a national solution to their refrigerated storage and distribution needs. Americold Logistics believes its ability to offer a national solution will permit it to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the recent trend of food producers focusing on core businesses and outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. needs in refrigerated storage and distribution. According to industry sources, during the period between 1987 and 1997, refrigerated storage space provided by third parties grew by 60% while refrigerated storage space provided by food producers grew by only 1%. Certain matters discussed within this press release are 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 federal securities laws, and the transactions contemplated herein are subject to certain closing conditions. Although 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. believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, Crescent's actual results could differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from Crescent's expectations include changes in real estate conditions (including rental rates and competing properties) or in industries in which Crescent's principal tenants compete, failure to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. anticipated transactions, timely leasing of unoccupied square footage, timely releasing of 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. square footage upon expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , the ability to close pending transactions, finding acquisition opportunities which meet Crescent's investment strategy, the nature and structure of new investments, financing risks (such as the availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay ), Crescent's ability to service existing debt, the possibility that Crescent's outstanding debt (which requires so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. balloon payments The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at of principal) may be refinanced at higher interest rates or otherwise on terms less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to Crescent and the fact that interest rates under the credit facility and certain other loans may increase, and other risks detailed from time to time in Crescent's SEC reports, including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Crescent is a fully integrated real estate company which owns through its subsidiaries a portfolio of real estate assets, consisting primarily of 89 office properties and 7 retail properties with a total of 32.6 million square feet, a 38% interest in 97 refrigerated storage properties with a total of approximately 515 million cubic feet, 90 behavioral behavioral pertaining to behavior. behavioral disorders see vice. behavioral seizure see psychomotor seizure. healthcare properties, 7 full-service hotel properties with a total of 2,257 rooms, 2 destination health and fitness resorts and economic interests in 5 residential development corporations. The office rental properties are located primarily in 17 metropolitan submarkets in Texas. For further information, please contact Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Crenshaw cren·shaw also cran·shaw n. A variety of winter melon (Cucumis melo var. inodorus) having a greenish-yellow rind and sweet, usually salmon-pink flesh. [Origin unknown.] at 817/321-1492 or Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Picker at 817/321-1447, Co-Chief Financial Officers, or refer to Crescent's web page at cei-crescent.com. -0-
CRESCENT REAL ESTATE EQUITIES COMPANY
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
Sept. 30, Dec. 31,
1998 1997
----------- -----------
(unaudited) (audited)
ASSETS:
Investments in Real Estate:
Land $ 385,487 $ 353,374
Land held for development or sale 105,387 94,954
Building and improvements 3,549,869 2,923,097
Furniture, fixtures and equipment 61,463 51,705
Less - accumulated depreciation (356,675) (278,194)
------------ ------------
Net investment in real estate 3,745,531 3,144,936
Cash and cash equivalents 90,052 66,622
Restricted cash and cash
equivalents 37,516 41,528
Accounts receivable, net 24,928 30,179
Deferred rent receivable 63,383 39,588
Investments in real estate
mortgages and equity of
unconsolidated companies 746,211 601,770
Notes receivable, net 172,027 156,676
Other assets, net 99,735 98,681
------------ ------------
Total assets $ 4,979,383 $ 4,179,980
============ ============
IABILITIES:
Borrowings under credit
facility $ 750,000 $ 350,000
Notes payable 1,523,554 1,360,124
Accounts payable, accrued expenses
and other liabilities 113,612 127,258
------------ ------------
Total liabilities 2,387,166 1,837,382
------------ ------------
MINORITY INTERESTS:
Operating partnership, 6,549,629
and 6,397,072 units, respectively 128,831 117,103
Investment joint ventures 26,841 28,178
------------ ------------
Total minority interests 155,672 145,281
------------ ------------
SHAREHOLDERS' EQUITY:
Preferred shares, $.01 par value,
authorized 100,000,000 shares:
6 3/4% Series A Convertible
Cumulative Preferred Shares,
8,000,000 shares issued and
outstanding at Sept. 30, 1998 200,000 --
Series B Convertible Preferred
Shares, 6,948,734 shares issued
and outstanding at
Sept. 30, 1998 225,000 --
Common shares, $.01 par value,
authorized 250,000,000 shares,
120,945,262 shares issued,
114,286,008 shares outstanding,
and 6,659,254 shares held in
treasury as of Sept. 30, 1998,
and 117,977,907 shares
issued and outstanding as of
Dec. 31, 1997 1,142 1,179
Additional paid-in capital 2,112,179 2,253,928
Deferred compensation
on restricted shares (90) (283)
Retained deficit (92,554) (57,507)
Accumulated other
comprehensive income (9,132) --
------------ ------------
Total shareholders' equity 2,436,545 2,197,317
------------ ------------
Total liabilities and
shareholders' equity $ 4,979,383 $ 4,179,980
============ ============
TOTAL COMMON SHARES AND
UNITS OUTSTANDING 127,385,266(a) 130,772,051(a)
COMMON SHARE PRICE $ 25.250 $ 39.375
MARKET VALUE OF EQUITY $ 3,584,978 $ 5,149,150
TOTAL MARKET CAPITALIZATION
INCLUDING DEBT $ 5,858,532 $ 6,859,274
DEBT AS A % OF TOTAL MARKET
CAPITALIZATION 39% 25%
(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)
For the three months
ended Sept. 30,
--------------------
(unaudited)
1998 1997
---- ----
REVENUES:
Office and retail properties $ 146,037 $ 92,014
Hotel properties 12,798 9,032
Behavioral healthcare
properties 13,824 13,824
Interest and other income 7,134 5,187
------------ ------------
Total revenues 179,793 120,057
------------ ------------
EXPENSES:
Real estate taxes 18,531 10,607
Repairs and maintenance 10,379 6,301
Other rental property operating 33,338 22,500
Corporate general and
administrative 4,335 2,372
Interest expense 37,940 23,075
Amortization of deferred financing
costs 1,944 937
Depreciation and amortization 29,770 20,549
------------ ------------
Total expenses 136,237 86,341
------------ ------------
Operating income 43,556 33,716
OTHER INCOME AND EXPENSE:
Equity in net income of
unconsolidated companies 9,253 1,119
Write-off of costs associated
with unsuccessful acquisitions (18,435) --
------------ ------------
Total other income and expense (9,182) 1,119
------------ ------------
INCOME BEFORE MINORITY INTERESTS 34,374 34,835
Minority interests (3,217) (4,432)
------------ ------------
NET INCOME 31,157 30,403
PREFERRED STOCK DIVIDENDS (3,375) --
------------ ------------
NET INCOME APPLICABLE TO COMMON
SHAREHOLDERS $ 27,782 $ 30,403
============ ============
PER COMMON SHARE DATA:
Net Income - Basic $ 0.23 $ 0.30
============ ============
Net Income - Diluted $ 0.21 $ 0.29
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 120,819,630 99,894,600
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 134,172,062 104,257,252
============ ============
DEBT SERVICE COVERAGE RATIO 3.2 3.4
============ ============
For the nine months
ended Sept. 30,
--------------------
(unaudited)
1998 1997
---- ----
REVENUES:
Office and retail properties $ 409,937 $ 247,333
Hotel properties 38,350 26,453
Behavioral healthcare
properties 41,471 15,966
Interest and other income 20,288 10,364
------------ ------------
Total revenues 510,046 300,116
------------ ------------
EXPENSES:
Real estate taxes 51,937 28,229
Repairs and maintenance 28,181 17,244
Other rental property operating 93,003 59,100
Corporate general and
administrative 11,036 9,855
Interest expense 110,067 54,687
Amortization of deferred financing
costs 4,194 2,157
Depreciation and amortization 84,602 50,840
------------ ------------
Total expenses 383,020 222,112
------------ ------------
Operating income 127,026 78,004
OTHER INCOME AND EXPENSE:
Equity in net income of
unconsolidated companies 21,215 6,262
Write-off of costs associated
with unsuccessful acquisitions (18,435) --
------------ ------------
Total other income and expense 2,780 6,262
------------ ------------
INCOME BEFORE MINORITY INTERESTS 129,806 84,266
Minority interests (12,797) (12,018)
------------ ------------
NET INCOME 117,009 72,248
PREFERRED STOCK DIVIDENDS (8,325) --
------------ ------------
NET INCOME APPLICABLE TO COMMON
SHAREHOLDERS $ 108,684 $ 72,248
============ ============
PER COMMON SHARE DATA:
Net Income - Basic $ 0.91 $ 0.83
============ ============
Net Income - Diluted $ 0.85 $ 0.79
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 119,660,343 87,364,374
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 127,165,200 91,169,765
============ ============
DEBT SERVICE COVERAGE RATIO 3.2 3.5
============ ============
CRESCENT REAL ESTATE EQUITIES COMPANY
STATEMENTS OF FUNDS FROM OPERATIONS
(dollars in thousands, except per share data)
For the three months
ended Sept. 30,
--------------------
1998 1997
---- ----
INCOME BEFORE MINORITY INTERESTS $ 34,374 $ 34,835
ADJUSTMENTS:
Depreciation and amortization of real
estate assets 29,204 20,214
Write-off of costs associated with
unsuccessful acquisitions(a) 18,435 --
Adjustment for investments in real
estate mortgages and equity of
unconsolidated companies 13,237 1,434
Minority interest in joint ventures (200) (390)
Preferred stock dividends (3,375) --
------------ ------------
FUNDS FROM OPERATIONS $ 91,675 $ 56,093
============ ============
INVESTMENT SEGMENTS:
Office and retail properties $ 85,118 $ 51,612
Hotel properties 12,567 8,818
Behavioral healthcare properties 13,824 13,824
Refrigerated storage properties 7,729 --
Land development properties 12,446 3,199
Corporate general & administrative (4,335) (2,372)
Interest expense (37,940) (23,075)
Preferred stock dividends (3,375) --
Other(b) 5,641 4,087
------------ ------------
FUNDS FROM OPERATIONS $ 91,675 $ 56,093
============ ============
WEIGHTED AVERAGE SHARES/UNITS
OUTSTANDING - BASIC 133,963,864 113,034,099
WEIGHTED AVERAGE SHARES/UNITS
OUTSTANDING - DILUTED 147,316,296 117,396,751
DIVIDEND PAID PER SHARE DURING PERIOD $ 0.380 $ 0.305
SUPPLEMENTAL INFORMATION:
Rental income from straight-line rents $ (7,735) $ (7,383)
Residential development capital
expenditures (338) (160)
Non-incremental revenue generating exp.:
Hotel property capital expenditures (2,328) (1,208)
Office and retail property capital
expenditures (1,965) (1,051)
Tenant improvement and leasing costs (4,513) (2,702)
Depreciation and amortization of
non-real estate assets 369 162
Amortization of deferred financing costs 1,944 937
(a) Includes a $2,000 contingency for costs related to Station
Casinos, Inc. litigation.
(b) Includes Interest and other Income less depreciation and
amortization of non-real estate assets and amortization of
deferred financing costs.
For the nine months
ended Sept. 30,
------------------
1998 1997
---- ----
INCOME BEFORE MINORITY INTERESTS $ 129,806 $ 84,266
ADJUSTMENTS:
Depreciation and amortization of real
estate assets 82,919 49,434
Write-off of costs associated with
unsuccessful acquisitions(a) 18,435 --
Adjustment for investments in real
estate mortgages and equity of
unconsolidated companies 40,735 2,107
Minority interest in joint ventures (1,006) (1,192)
Preferred stock dividends (8,325) --
------------ ------------
FUNDS FROM OPERATIONS $ 262,564 $ 134,615
============ ============
INVESTMENT SEGMENTS:
Office and retail properties $ 241,237 $ 141,057
Hotel properties 37,677 25,816
Behavioral healthcare properties 41,471 15,966
Refrigerated storage properties 19,267 --
Land development properties 36,533 5,871
Corporate general & administrative (11,036) (9,855)
Interest expense (110,067) (54,687)
Preferred stock dividends (8,325) --
Other(b) 15,807 10,447
------------ ------------
FUNDS FROM OPERATIONS $ 262,564 $ 134,615
============ ============
WEIGHTED AVERAGE SHARES/UNITS
OUTSTANDING - BASIC 132,610,676 100,592,573
WEIGHTED AVERAGE SHARES/UNITS
OUTSTANDING - DILUTED 140,115,533 104,397,964
DIVIDEND PAID PER SHARE DURING PERIOD $ 1.140 $ 0.915
SUPPLEMENTAL INFORMATION:
Rental income from straight-line rents $ (23,795) $ (14,432)
Residential development capital
expenditures (1,137) (614)
Non-incremental revenue generating exp.:
Hotel property capital expenditures (4,180) (3,240)
Office and retail property capital
expenditures (3,668) (1,797)
Tenant improvement and leasing costs (17,572) (8,921)
Depreciation and amortization of
non-real estate assets 1,108 905
Amortization of deferred financing costs 4,194 2,157
(a) Includes a $2,000 contingency for costs related to Station
Casinos, Inc. litigation.
(b) Includes Interest and other Income less depreciation and
amortization of non-real estate assets and amortization of
deferred financing costs.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion