Crescent Real Estate Equities Inc. announces second quarter operating results.NEW YORK--(BUSINESS WIRE)--July 26, 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) ), today announced its operating results for the quarter and six months ended June June: see month. 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 second quarter of 1995 were $18.7 million (excluding a $2.3 million profit from the sale of co-investment rights in the Ritz-Carlton Hotel Company
The Ritz-Carlton Hotel Company is the parent company to the luxury hotel chain, Ritz-Carlton Hotels. ), or $.67 per share and equivalent unit, as compared to $10.8 million, or $.48 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 second quarter of 1994. Including the profit from the sale of co-investment rights in the Ritz- arlton Hotel Company, funds from operations for the second quarter of 1995 would have been $21 million, or $.75 per share and equivalent unit. Funds from operations for the six months ended June 30, 1995 were $31.3 million (excluding the $2.3 million profit from sale), or $1.23 per share and equivalent unit, as compared to $21.6 million, or $.96 per share and equivalent unit on a pro forma basis for the six months ended June 30, 1994. Second quarter net income was $8.1 million, or $.39 per share, compared with pro forma net income of $3.4 million, or $.22 per share for the second quarter of 1994. For the six months ended June 30, 1995, net income was $11.9 million, or $.65 per share, compared with pro forma net income of $6.7 million, or $.42 per share for the six months ended June 30, 1994. "We are pleased to report a very successful quarter of operating results, as well as leasing and acquisition activity. Our 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. properties continued to perform at or above expectations and lot sale activity at Mira Vista Development Corp. continued to exceed expectations," stated 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. . "During the second quarter we also benefited from continued strengthening in our submarkets, completing over 1 million square feet of leasing transactions. At June 30, 1995, our office and retail properties, owned as of the beginning of the year, were 93 percent leased compared to 89 percent at Dec. 31, 1994. Acquisition activity continues at our planned pace, having invested over $130 million during the quarter increasing our year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. investments to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $220 million. Continuing with our investment strategy for the remainder of 1995, we intend to seek additional high quality properties located in our existing markets, as well as other selected recovering submarkets with substantial growth prospects." 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. is a real estate investment trust which owns a portfolio of real estate assets, including 25 office properties and two retail centers totaling 7.1 million square feet, two hotels totaling 908 rooms and economic interests in four single family residential land developments. The rental properties are located in 11 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
1995 1994 (a) 1995 1994(a)
---- ---- ---- ----
RENTAL REVENUES $26,073 $15,537 $51,285 $31,126
INTEREST AND OTHER INCOME 3,151(b) 138 3,898(b) 168
RENTAL PROPERTY EXPENSES 9,710 6,321 19,416 12,275 CORPORATE G & A EXPENSES 947 564 1,745 1,189 INTEREST EXPENSE 1,803 134 6,273 217 DEPRECIATION AND AMORTIZATION 6,759 5,293 13,356 10,911 INCOME FROM INVESTMENTS IN RESIDENTIAL DEVELOPMENT CORPORATIONS 1,002 1,467 1,939 2,697 MINORITY INTEREST (PARTNERSHIP UNITS) (2,935) (1,388) (4,465) (2,701) NET INCOME 8,072 3,442 11,867 6,698 WEIGHTED-AVERAGE SHARES OUTSTANDING 20,654 16,047 18,351 16,047 NET INCOME PER SHARE $ .39 $ .22 $ .65 $ .42
NOTES:
(a) Operating results for the six months and three months ended
June 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.
(b) Includes $2.3 million net profit from sale of co-investment rights
in the Ritz-Carlton Hotel Company.
SUMMARIZED BALANCE SHEET INFORMATION
(IN THOUSANDS)
(UNAUDITED)
JUNE 30TH,
1995 1994
---- ----
CASH AND CASH EQUIVALENTS $ 9,897 $ 27,666
INVESTMENT PROPERTIES, NET 609,509 276,800 TOTAL ASSETS 702,937 348,597 BORROWINGS UNDER CREDIT FACILITY 199,000 5,500
CRESCENT REAL ESTATE EQUITIES, INC.
STATEMENTS OF FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
1995 1994 1995 1994
------- ------- ------- -------
INCOME BEFORE MINORITY INTEREST $11,007 $ 4,830 $16,332 $ 9,399
ADJUSTMENTS: DEPRECIATION AND AMORTIZATION OF REAL ESTATE ASSETS 6,056 4,913 11,984 10,142 AMORTIZATION OF DEFERRED FINANCING COSTS 565 337 1,092 674 DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS 138 43 280 95 ADJUSTMENT FOR UNCONSOLIDATED INVESTMENTS IN REAL ESTATE MORTGAGES AND COMMON STOCK OF RESIDENTIAL DEVELOPMENT CORPORATIONS (a) 3,225 645 3,868 1,266
OTHER (b) (2,300) -- (2,300) --
------- ------- ------- -------
FUNDS FROM OPERATIONS (c) 18,691 $10,768 31,256 $21,576
======= =======
ADJUSTMENTS:
RENTAL INCOME FROM
STRAIGHT-LINE RENTS (130) (226)
NON-INCREMENTAL REVENUE
GENERATING EXP.;
RENTAL PROPERTY CAPITAL
EXPENDITURES (309) (582)
TENANT LEASING COSTS (861) N/A (1,683) N/A
RESIDENTIAL DEVELOPMENT
EXPENDITURES (404) (774)
------- -------
FUNDS AVAILABLE FOR
DISTRIBUTION $16,987 $27,991
======= =======
WEIGHTED-AVERAGE SHARES/UNITS
OUTSTANDING 28,104 22,522 25,344 22,522
PER SHARE DATA: FUNDS FROM OPERATIONS $ .67 $ .48 $ 1.23 $ .96 FUNDS AVAILABLE FOR DISTRIBUTION .60 N/A 1.10 N/A
NOTES:
(a) Represents undistributed operating cash flow held for future
development/investment expenditures or dividends.
(b) Represents $2.3 million net profit from sale of co-investment
rights in the Ritz-Carlton Hotel Company.
(c) "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).
The proposed changes to NAREIT'S definition of funds from operations would 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. -0- 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. , 212/836-4216
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