DDR increased FFO per share by 15.4% for 3rd quarter 1994 as compared to 3rd quarter 1993.CLEVELAND--(BUSINESS WIRE)--Nov. 4, 1994--Developers Diversified diversified (di·verˑ·s Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Corporation (NYSE NYSE See: New York Stock Exchange :DDR (Double Data Rate) Refers to an SDRAM memory chip that increases performance by doubling the effective data rate of the frontside bus. For more details, see SDRAM. DDR - Double Data Rate Random Access Memory ) announces solid operating results for the third quarter of 1994. Net Income for the third quarter was $5.2 million, or $.33 per share; an increase of 22.2% on a per share basis, over the third quarter of 1993. 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''), a widely accepted measure of REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). performance, grew to $9.6 million, or $.60 per share for the third quarter of 1994, a 15.4% increase on a per share basis over third quarter 1993 FFO FFO See: Funds from operations . For the nine month period ended September September: see month. 30, 1994 Net Income and Funds From Operations were $15.7 million and $27.7 million or $1.00 and $1.76 per share, respectively. This represents an increase of 29.9% and 24.8% per share, respectively, over the nine month period ended September 30, 1993, after adjusting for the effects of the Initial Public Offering completed in February February: see month. , 1993. Commenting on the third quarter, Scott A. Wolstein, President and Chief Executive Officer, stated ``We are very pleased with the Company's third quarter performance. We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that we have successfully achieved our budgeted goals for FFO performance despite significant increases in interest rates over the prior year as well as the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). 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 completed by the Company during the third quarter.'' With a view toward strengthening the Company balance sheet and minimizing the Company's exposure to variable rate debt, the Company (i) successfully completed the sale of 500,000 common shares at an offering price of 31-5/8 in July July: see month. of 1994 and (ii) completed the sale of $60 million convertible subordinate debentures with a 5 year maturity, 7% coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer , and a conversion price of 33-3/8. The proceeds from both financings were used to reduce secured variable rate indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . In reporting its FFO, the Company applies a conservative interpretation of the NAREIT NAREIT National Association of Real Estate Investment Trusts definition of Funds From Operations. The Company does not add back the amortization of deferred finance costs in computing computing - computer its FFO, and does not apply a straight line method of computing its 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 . The effect of adopting a more liberal interpretation of the NAREIT definition as the majority of publicly traded real estate trusts have done would have the effect of increasing the Company's FFO for the first nine months of 1994 by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. six (6) cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . During the first nine months of 1994, the Company acquired 11 shopping centers shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into at a total cost of $122.4 million, bringing the total acquisitions since the Company's initial public offering in February, 1993 to 28 properties, at a total cost of approximately $274.3 million. The Company also has executed letters of intent to acquire six (6) additional shopping centers aggregating approximately 1.8 million square feet at a purchase price of approximately $130 million. The Company also completed six expansions during 1994 at a cost of approximately $10.6 million and has 10 additional expansions under construction at an additional cost of approximately $11.3 million. The Company has three development projects under construction in Erie, Pennsylvania “Erie” redirects here. For other uses, see Erie (disambiguation). Erie (pronounced IPA: /ˈɪəri/) is a major industrial city on the shore of Lake Erie in the northwestern corner of the U.S. , Xenia, Ohio Xenia (pronounced Zeen-yuh) is a city in the U.S. state of Ohio and the county seat of Greene CountyGR6. The municipality is located in southwestern Ohio near Dayton. , and Aurora, Ohio Aurora is a city located in Portage County, Ohio, United States. It is co-extant with, and formed from, the former township of Aurora, which was formed from the Connecticut Western Reserve. As of the 2000 census, the city had a total population of 13,556. representing an aggregate investment of approximately $40 million. Developers Diversified Realty Corporation Developers Diversified Realty Corporation is one of the largest owners and developers of retail shopping centers in the U.S. Based in Beachwood, Ohio, an eastern suburb of Greater Cleveland, DDRC, a publicly traded company on the NYSE, leads the real estate industry in power is a self-administered and self-managed Real Estate Investment Trust (``REIT'') operating as a fully-integrated real estate company which acquires, develops, owns, leases and manages shopping center and business centers. Aggregate Company owned gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. currently approximates 12.7 million square feet and the overall occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) is approximately 97.3%. -0-
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands - except per share data)
(Unaudited)
Quarter Ended September 30
--------------------------
1994 1993
------- -------
Revenues:
Base rent (2) $16,455 $10,470
Percentage and overage rent 204 272
Recoveries from tenants 3,683 2,606
Management fee income 135 115
Other 564 645
------- -------
21,041 14,108
------- -------
Expenses:
Operating and maintenance 1,867 1,528
Real estate taxes 2,432 1,662
Rent 33 33
General and administrative 1,440 1,082
Interest 5,713 3,830
Depreciation and amortization 4,203 2,721
------- -------
15,688 10,856
------- -------
Income before equity in net loss of
joint venture and extraordinary item 5,353 3,252
Equity in net loss of joint venture (68) (69)
------- -------
Income before extraordinary item 5,285 3,183
Extraordinary item (58) -
------- -------
Net Income $ 5,227 $ 3,183
------- -------
------- -------
Funds From Operations (``FFO''):
Net income $ 5,227 $ 3,183
Depreciation and amortization of
real property (3) 4,171 2,684
Depreciation of personal property 32 37
Equity in net loss of joint venture 68 69
Joint venture FFO 33 25
Extraordinary item 58 -
------- -------
$ 9,589 $ 5,998
------- -------
------- -------
Per share data:
Net income $ 0.33 $ 0.27
------- -------
------- -------
FFO $ 0.60 $ 0.52
------- -------
------- -------
Weighted average shares outstanding
(000's) 15,998 11,618
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands - except Per Share Data)
(Unaudited)
Nine month period ended September 30,
-------------------------------------
Pro Forma Historical
1994 1993(1) 1993
------- ------- -------
Revenues:
Base rent (2) $45,602 $28,030 $28,030
Percentage and overage rent 909 949 949
Recoveries from tenants 10,822 6,722 6,722
Management fee income 358 376 376
Other 1,665 1,814 1,739
------- ------- -------
59,356 37,891 37,816
------- ------- -------
Expenses:
Operating and maintenance 5,746 4,178 4,178
Real estate taxes 6,721 4,709 4,709
Rent 98 98 98
General and administrative 4,241 2,984 2,884
Interest 15,049 9,665 11,319
Depreciation and amortization 11,652 7,063 7,063
------- ------- -------
43,507 28,697 30,251
------- ------- -------
Income before equity in net
loss of joint venture, non
recurring transfer costs and
consent fees and extraordinary
item 15,849 9,194 7,565
Equity in net loss of joint
venture (121) (268) (268)
Non recurring transfer costs
and consent fees - - (2,641)
------- ------- -------
Income before extraordinary item 15,728 8,926 4,656
Extraordinary item (58) - (731)
------- ------- -------
Net income $15,670 $ 8,926 $ 3,925
------- ------- -------
------- ------- -------
Funds From Operations (``FFO''):
Net income $15,670 $ 8,926 $ 3,925
Depreciation of real
property (3) 11,556 6,957 6,957
Depreciation of personal
property 96 106 106
Equity in net loss of joint
venture 121 268 268
Joint venture FFO 181 75 75
Non recurring charges and
extraordinary item 58 - 3,372
------- ------- -------
$27,682 $16,332 $14,703
------- ------- -------
------- ------- -------
Per share data:
Net income $ 1.00 $ 0.77 $ 0.38
------- ------- -------
------- ------- -------
FFO $ 1.76 $ 1.41 $ 1.43
------- ------- -------
------- ------- -------
Weighted average shares
outstanding (000's) 15,715 11,618 10,270
(1) Pro forma adjustments have been made to the historical results
to reflect the results of operations assuming that the Initial
Public Offering had been completed on January 1, 1993. The above
pro forma amounts for the nine month period ended September 30,
1993, reflect only the adjustments relating to the Company's Initial
Public Offering and do not reflect any pro forma adjustments
relating to the acquisitions of shopping centers and do not include
any pro forma adjustments associated with the secondary offering,
which was completed in the fourth quarter of 1993.
(2) The Company recognizes rental income as billed as opposed to
utilizing the straight line method since the effect of applying the
straight line method is not material. Accordingly, no adjustment
for straight line rents is required for purposes of determining FFO.
(3) Does not include the amortization of the deferred finance costs
of approximately $300,000 and $200,000 for the three month period
ended September 30, 1994, and 1993, respectively, $800,000 and
$300,000 for the nine month period ended September 30, 1994 and
1993, respectively. If the amortization of deferred finance costs
were added back for purposes of determining FFO, as is done by the
majority of real estate investment trusts, the FFO per share for the
three and nine month periods ended September 30, 1994 would be $0.62
and $1.81 respectively and $0.54 and $1.43 for the three and nine
month periods ended September 30, 1993, respectively.
CONTACT: Developers Diversified Realty Corporation, Cleveland Cleveland, former county, England Cleveland, former county, NE England, created under the Local Government Act of 1972 (effective 1974). It was composed of the county boroughs of Hartlepool and Teeside and parts of the former counties of Durham and Scott A. Wolstein, 216/247-4700 |
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