Duke-Weeks Announces 15.7 Percent Increase in First Quarter FFO Per Share, Achieving Double-Digit Growth for the 18th Consecutive Quarter.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--April 26, 2000 Same Store Growth Tops 5.6 Percent Common and Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Dividends Also Announced Duke-Weeks 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 :DRE DRE Digital rectal examination. Mentioned in: Rectal Examination ) reported today that 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 67.3 percent to $75.0 million for the first quarter of 2000 versus $44.9 million for the same period in 1999. On a per share basis, FFO increased 15.7 percent to $0.59 per share in the first quarter of 2000 from $0.51 per share for the first quarter of 1999. This is the Company's eighteenth consecutive quarter of double-digit growth in FFO per share. Net income available for common shareholders for the first quarter of 2000 increased to $48.9 million on revenues of $188.8 million, up from $27.4 million on revenues of $114.3 million for the first quarter last year. On a per share basis, first quarter net income available for common shareholders increased 21.9 percent to $0.39 per share compared with $0.32 per share for the first quarter of 1999. All per share amounts reported are 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. with basic per share information also included in the financial table accompanying this press release. Additionally, the Company's Board of Directors declared a quarterly dividend of $.39 per common share, or $1.56 per share on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The dividend is payable on May 31, 2000 to common shareholders of record on May 15, 2000. The Board also declared today the following dividends on the Company's outstanding preferred stock:
NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
----- ------ ------------ ----------- ------------
Series A DREPRA $.56875 May 17, 2000 May 31, 2000
Series B Not Listed $.99875 June 16, 2000 June 30, 2000
Series D DREPRD $.46094 June 16, 2000 June 30, 2000
Series E DREPRE $.51563 June 16, 2000 June 30, 2000
Series F DREPRF $.50000 July 17, 2000 July 31, 2000
Commenting on Duke-Weeks' first quarter performance, Tom Hefner, Chairman and Chief Executive Officer, stated, "Coming into 2000, our most important goals were to improve same store performance and outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. capital recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. expectations while maintaining our industry-leading track record of earnings growth. With per share FFO growth of nearly 16 percent, same store growth of 5.6 percent and $149 million of dispositions in the first quarter, Duke-Weeks is off to another great start." Property information at March 31, 2000 was as follows: -- The Company's 871 in-service properties totaling 92.2 million square feet were 91.2 percent leased. -- The Company had 9.9 million square feet under development that were 55.0 percent pre-leased with an estimated cost of $712 million. The pipeline includes $535 million of developments with an expected stabilized return of 11.5 percent that Duke-Weeks plans to own after completion. Duke-Weeks also had 2.2 square feet of properties totaling $177 million in its build-to-suit for sale portfolio at March 31, 2000. -- Including projects under development, the Company's total portfolio at the end of the first quarter consisted of 933 properties totaling more than 102.0 million square feet. The Company also disclosed the following information for the first quarter of 2000: -- Duke-Weeks renewed 69 percent of leases up for renewal, totaling 2.4 million square feet, on which it attained a 10.0 percent growth in net effective rents. -- Year-to-date same property 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. for 2000 increased 5.6 percent. -- Property sales in the first quarter were $149 million at an average capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. of 9.2 percent. -- Duke-Weeks' interest and fixed-charge coverage ratios Fixed-Charge Coverage Ratio A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following: in the first quarter were 4.0 and 2.8, respectively, and its debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. ratio was 40 percent at March 31, 2000. When used in this press release, the word "believes," "expects," "estimates" and similar expressions are intended to identify 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. . Such statements are subject to certain risks and uncertainties which could cause actual results to differ materially. In particular, among the factors that could cause actual results to differ materially are continued qualification as a real estate investment trust, general business and economic conditions, competition, increases in real estate construction costs, interest rates, accessibility of debt and equity capital markets and other risks inherent in the real estate business including tenant defaults, potential liability relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental matters and liquidity of real estate investments. Readers are advised to refer to Duke-Weeks' 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. Report as filed with the Securities and Exchange Commission on March 29, 1996 for additional information concerning these risks. Duke-Weeks Realty Corporation is one of the largest office and industrial real estate companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and has the longest ongoing record in the industry (18 consecutive quarters) of double-digit growth in funds from operations per share. Offering a complete range of real estate products and services, Duke-Weeks produces more than $750 million in annual revenue from approximately 5,000 tenants and focuses on building dominant market positions in each of its 13 geographic platforms across the Midwest and the Sunbelt. Duke-Weeks owns interests in more than 100 million square feet of properties, has approximately 1,500 employees and owns or controls approximately 3,900 acres of undeveloped land that can support approximately 60 million square feet of future development. Visit Duke-Weeks on the web at www.dukereit.com A copy of the Company's first quarter 2000 supplemental information fact book will be available after 8:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. today in the Investor Information section of the Company's web site at www.dukereit.com. These materials are also available upon written request to: Thomas K. Peck Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. Duke-Weeks Realty Corporation 8888 Keystone key·stone n. 1. Architecture The central wedge-shaped stone of an arch that locks its parts together. Also called headstone. 2. The central supporting element of a whole. Crossing, Suite 1200 Indianapolis, IN 46240
Financial Highlights
(in thousands, except per share data)
---------------------------
Three Months Ended
March 31
---------------------------
Operating Results 2000 1999
----------------------------------------------------------------------
Revenues $ 188,799 $ 114,254
Earnings from rental operations 54,912 36,099
Earnings from service operations 5,376 5,036
Net income - common shareholders 48,859 27,394
Funds from operations - Basic 75,030 44,860
Funds from operations - Diluted 89,606 53,073
Per Share:
Funds from operations - Basic $ 0.60 $ 0.52
Funds from operations - Diluted $ 0.59 $ 0.51
Net income - common shareholders
- Basic $ 0.39 $ 0.32
Net income - common shareholders
- Diluted $ 0.39 $ 0.32
Dividend payout ratio of funds
from operations 66.1% 66.7%
Weighted average shares outstanding
Basic 126,070 86,370
Diluted 152,825 103,153
---------------------------
March 31 December 31
Balance Sheet Data 2000 1999
----------------------------------------------------------------------
Net real estate investments $5,093,542 $5,046,809
Total assets 5,646,440 5,486,238
Total debt 2,276,447 2,113,476
Shareholders' equity 2,678,282 2,668,597
Common shares outstanding at
end of period 126,463 125,823
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion