DDR increased FFO per share by 16.4 percent for 4th quarter 1994 as compared to 4th quarter 1993.CLEVELAND--(BUSINESS WIRE)--Feb. 21, 1995--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. Corp. (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 fourth quarter of 1994. 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 $10.3 million, or $.64 per share for the fourth quarter of 1994, a 16.4% increase on a per share basis over fourth quarter 1993 FFO FFO See: Funds from operations . Net income for the fourth quarter was $5.5 million, or $.34 per share; an increase of 6.25% on a per share basis, over the fourth quarter 1993. For the year ended December 31, 1994 Funds From Operations and net income were $38.0 million and $21.1 million or $2.40 and $1.34 per share, respectively. This represents an increase of 22.4% and 21.8% per share, respectively, over the year ended December 31, 1993, after adjusting for the effects of the Initial Public Offering completed in February, 1993. Commenting on the fourth quarter and year end results, Scott A. Wolstein, President and Chief Executive Officer, stated, ``We are extremely pleased with the Company's fourth quarter performance. Our budgeted goals for FFO were successfully achieved 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 financings 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 year.'' During the fourth quarter of 1994 the Company completed the acquisition of 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 in Starkville, Mississippi Starkville is a city in Oktibbeha County, Mississippi, United States. As of the 2000 census, the city population was 21,869. It is the county seat of Oktibbeha CountyGR6. The campus of Mississippi State University is located in Starkville. ; Tupelo, Mississippi Tupelo (IPA: [tu:pəlo]) is the largest city and county seat within Lee County, Mississippi. It is the eighth largest city in the state of Mississippi, smaller than Meridian, and larger than Olive Branch. and Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. . The Company also issued $100 million of senior unsecured variable rate notes during the quarter. This financing significantly reduced the borrowings on the Company's secured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities and will also significantly reduce interest costs during 1995. In January 1995, the Company successfully completed a 2,875,000 common share offering and received net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $76.5 million which were used to retire secured variable rate debt. Although this common share offering will initially have a dilutive effect on FFO per share it will significantly enhance the Company's future financing flexibility and also favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. position the Company to take advantage of attractive acquisition and development opportunities for continued growth in FFO per share. During 1994, the Company acquired 14 shopping centers at a total cost of $179.7 million, bringing the total acquisition since the Company's initial public offering in February, 1993 to 31 properties, at a total cost of approximately $331.6 million. The Company also completed expansions at 7 locations aggregating 260,000 square feet of GLA during 1994 representing an aggregate investment of approximately $11.1 million and commenced construction on 11 additional expansions aggregating approximately 230,000 square feet of GLA representing an aggregate investment of approximately $15.4 million. The Company commenced construction at three development projects during 1994 at locations 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. The Erie, Pennsylvania and Xenia, Ohio development projects are nearing completion and certain anchor tenants at each location have already opened for business. Both projects were 100% leased prior to completion of construction and will yield first year investment returns approaching 13% per annum Per annum Yearly. . The Company will commence construction on two additional retail projects during the first quarter of 1995. The two projects, located in Canton, Ohio Canton is a city in the U.S. state of Ohio and the county seat of Stark CountyGR6. The municipality is located in northeastern Ohio and is situated on the Nimishillen Creek, approximately 24 miles (38 km) south of Akron[4] and Highland Heights, Ohio Highland Heights is a city in Cuyahoga County, Ohio in the United States. Highland Heights is a suburb of Cleveland, Ohio. Highland Heights was originally part of Mayfield Township. The population was 8,082 at the 2000 census. will represent an aggregate of approximately 600,000 square feet and will reflect an investment by the Company of approximately $35 million. 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 1994 by approximately eight (8) 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. . 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 13.8 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 97.2%. -0-
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands - except per share data)
Quarter Ended December 31
1994 1993
Revenues:
Base rent (2) $17,143 $12,175
Percentage and overage rent 685 456
Recoveries from tenants 4,119 3,215
Management fee income 121 142
Other 550 727
_______ _______
22,618 16,715
_______ _______
Expenses:
Operating and maintenance 1,803 1,594
Real estate taxes 2,796 2,010
Rent 33 33
General and administrative 1,364 1,356
Interest 6,374 3,741
Depreciation and amortization 4,559 3,331
_______ _______
16,929 12,065
_______ _______
Income before equity in net loss of
joint venture, gain on sale of land
and extraordinary item 5,689 4,650
Equity in net loss of joint venture (65) (79)
Gain on sale of land - 122
_______ _______
Income before extraordinary item 5,624 4,693
Extraordinary item (158) -
_______ _______
Net Income $ 5,466 $ 4,693
_______ _______
_______ _______
Funds From Operations (``FFO''):
Net income $ 5,466 $ 4,693
Depreciation of real property (3) 4,526 3,294
Depreciation of personal property 33 37
Equity in net loss of joint venture 65 79
Joint venture FFO 35 30
Gain on sale of land - (122)
Extraordinary item 158 -
_______ _______
$10,283 $ 8,011
_______ _______
_______ _______
Per share data:
Income before extraordinary item $ 0.35 $ 0.32
_______ _______
_______ _______
Net income $ 0.34 $ 0.32
_______ _______
_______ _______
FFO $ 0.64 $ 0.55
_______ _______
_______ _______
Weighted average shares outstanding
(000's) 16,077 14,685
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands - except per share data)
Year ended December 31
Pro Forma Historical
1994 1993(1) 1993
Revenues:
Base rent (2) $62,745 $40,205 $40,205
Percentage and overage rent 1,594 1,406 1,406
Recoveries from tenants 14,941 9,936 9,936
Management fee income 479 518 518
Other 2,215 2,541 2,466
_______ _______ _______
81,974 54,606 54,531
_______ _______ _______
Expenses:
Operating and maintenance 7,549 5,937 5,937
Real estate taxes 9,517 6,720 6,720
Rent 131 131 131
General and administrative 5,605 4,175 4,075
Interest 21,423 13,407 15,060
Depreciation and amortization 16,211 10,393 10,393
_______ _______ _______
60,436 40,763 42,316
_______ _______ _______
Income before equity in net loss of
joint venture, gain on sale of land,
non-recurring transfer costs and
and consent fees and
extraordinary item 21,538 13,843 12,215
Equity in net loss of joint venture (186) (347) (347)
Gain on sale of land - 122 122
Non recurring transfer costs and
consent fees - - (2,641)
_______ _______ _______
Income before extraordinary item 21,352 13,618 9,349
Extraordinary item (216) - (731)
_______ _______ _______
Net Income $21,136 $13,618 $ 8,618
_______ _______ _______
_______ _______ _______
Funds From Operations (``FFO''):
Net income $21,136 $13,618 $ 8,618
Depreciation of real property (3) 16,081 10,250 10,250
Depreciation of personal property 130 143 143
Equity in net loss of joint venture 186 347 347
Joint venture FFO 217 105 105
Gain on sale of land - (122) (122)
Non recurring charges and
extraordinary item 216 - 3,372
_______ _______ _______
$37,966 $24,341 $22,713
_______ _______ _______
_______ _______ _______
Per share data:
Income before extraordinary item $ 1.35 $ 1.10 $ .82
_______ _______ _______
_______ _______ _______
Net income $ 1.34 $ 1.10 $ .76
_______ _______ _______
_______ _______ _______
FFO $ 2.40 $ 1.96 $ 2.00
_______ _______ _______
_______ _______ _______
Weighted average shares outstanding
(000's) 15,806 12,391 11,383
(1) 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 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 year ended December 31, 1993, reflect only the adjustments relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 or any offerings completed thereafter. (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 December 31, 1994, and 1993, respectively, $1,030,000 and $540,000 for the year ended December 31, 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 month period ended December 31, 1994 and year ended December 31, 1994 would be $0.66 and $2.47 respectively and $0.56 and $2.01 for the three month period and year ended December 31, 1993 (pro forma), respectively. CONTACT: Developers Diversified Realty Corporation, Cleveland Scott A. Wolstein, 216/247-4700 |
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