First Potomac Realty Trust Reports Second Quarter 2006 Results.BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md. -- First Potomac Potomac (pətō`mək), river, 285 mi (459 km) long, formed SE of Cumberland, Md., by the confluence of its North and South branches and flowing generally SE to Chesapeake Bay. 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. Trust (NYSE NYSE See: New York Stock Exchange : FPO (For Position Only) A low-resolution image used to mark the placement of the final image. During the draft stages of a publication, FPOs are often used instead of the high-resolution images, which take up a significant amount of storage. ): E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Highlights: E[acute accent]--Reports FFO FFO See: Funds from operations of $0.39 per 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. share ($0.43 before certain charges). E[acute accent]--FFO increases 21% over prior-year quarter. E[acute accent]--Completes acquisitions of $36.1 million in second quarter of 2006. E[acute accent]--Sells 6600 Business Parkway for a gain of $0.36 per diluted share. E[acute accent]--Same-property NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics increases 6.5% on an accrual basis A method of accounting that reflects expenses incurred and income earned for Income Tax purposes for any one year. Taxpayers who use the accrual method must include in their taxable income any money that they have the right to receive as payment for services, once it and 8.2% on a cash basis over prior-year quarter. E[acute accent]--In July July: see month. 2006, closes on follow-on offering Follow-On Offering An offering of additional shares after a company has had an initial public offering. Notes: This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project. of 3,450,000 common shares at $27.46 per share. E[acute accent]First Potomac Realty Trust (NYSE: FPO), a self-administered, self-managed real estate investment trust that focuses on owning and operating industrial and flex properties in the Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. metropolitan area and other major markets in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). and Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , reported results for the three and six months ended June June: see month. 30, 2006. E[acute accent]The Company's net income for the second quarter of 2006 was $7.5 million, or $0.36 per diluted share, compared with net income of $1.0 million, or $0.06 per diluted share, for the second quarter of 2005. The Company's 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) for the second quarter of 2006 were $8.4 million, a 21% increase over the prior-year quarter, or $0.39 per diluted share ($9.3 million, or $0.43 per diluted share, before certain charges), compared with $6.9 million, or $0.39 per diluted share, during the second quarter of 2005. E[acute accent]Net income for the Company for the first six months of 2006 was $8.6 million, or $0.42 per diluted share, compared with net income of $1.6 million, or $0.10 per diluted share, for the prior-year period. The Company's FFO for the first six months of 2006 were $17.4 million, or $0.81 per diluted share ($18.4 million, or $0.85 before certain charges), compared with $12.6 million, or $0.76 per diluted share, for the first six months of 2005. E[acute accent]The Company's portfolio was 88.7% leased at June 30, 2006, including 421,100 square feet of vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. attributable to the September September: see month. 30, 2005, acquisition of a vacant property, 2000 Gateway Boulevard Gateway Boulevard is a major one-way street in Edmonton, Alberta. It is part of the Alberta provincial highway 2. It's a northbound road and it runs parallel with Calgary Trail, which is the southbound part of Highway 2. . Excluding 2000 Gateway Boulevard, the Company's portfolio was 92.6% leased. A list of the Company's assets, as well as additional information regarding the Company's results of operations can be found in the Company's Second Quarter 2006 Supplemental Financial Report, which is posted on the Company's website (www.first-potomac.com). E[acute accent]Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. J. Donatelli, chief executive officer of First Potomac Realty Trust, stated, "We continue to execute our business plan of adding value to properties that we acquire. All of our markets are benefiting from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. demand and supply trends, and our properties are experiencing strong leasing in the form of increased traffic and lease rollups. With an active pipeline of potential transactions, we are well positioned to continue sourcing opportunities that put our leasing expertise to work. We look forward to an active second half of the year." E[acute accent]Earnings and FFO Guidance E[acute accent]The Company incurred charges during the second quarter of 2006 totaling approximately $1.0 million, including a loss of $0.7 million on an interest-rate lock agreement associated with the Company's recent private placement of senior notes, debt retirement charges of $0.1 million associated with the prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of a term loan, and a $0.2 million stock-based compensation charge for restricted common shares that were granted in 2005 and vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) in 2006. The Company's previous guidance did not include these charges. E[acute accent]The Company reaffirmed guidance for 2006 of $1.75 to $1.90 in FFO per diluted share, excluding the above-mentioned charges. E[acute accent]The following presents a reconciliation of net income per diluted share to FFO per diluted share for the Company's full year 2006 guidance range:
Guidance Range for Full Year 2006 Low Range High Range
----------------------------------------------------------------------
Net income per diluted share $0.52 $0.57
Real estate depreciation and minority
interest per diluted share 1.55 1.65
Less: Gain on sale of disposed property (0.36) (0.36)
----------------------------
FFO per fully diluted share 1.71 1.86
Charges 0.04 0.04
----------------------------
FFO per diluted share excluding gain on
sale of disposed property and charges $1.75 $1.90
============================
E[acute accent]Barry Bass, chief financial officer of First Potomac Realty Trust, stated, "We reaffirmed our guidance for 2006, but given the nature and timing of our acquisitions and the timing of some of our leasing activity, which will not take effect until later in the year, we are more comfortable at the lower end of our guidance range." E[acute accent]"Our portfolio and our balance sheet are poised for significant growth. We had a very active quarter in terms of capital raising and began our 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. program. In addition, the completion of our senior notes private placement and the recently completed follow-on offering of common stock provide us with substantial capacity for future acquisitions. " E[acute accent]Second Quarter Acquisitions E[acute accent]1408 Stephanie Way (Chesapeake, Virginia Chesapeake is an independent city located in the South Hampton Roads region of eastern Virginia in the United States. One of the Seven Cities of Hampton Roads, Chesapeake was formed in 1963 by a political consolidation of the City of South Norfolk with the former Norfolk County, ) - On May 11, 2006, the Company acquired a 51,209-square-foot flex/office property in Chesapeake, Virginia for $5.1 million. The building was First Data Corporation's mail-sorting facility, which they vacated in April 2006. The property, which has remained vacant since that time, is situated on 3.9 acres. The acquisition was funded with a portion of the proceeds from the sale of 6600 Business Parkway, through a 1031 like-kind exchange. E[acute accent]Landmark Portfolio (Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. ) - On June 26, 2006, the Company acquired a 415,839-square-foot portfolio of flex/office properties in Richmond, Virginia for the total consideration of $31.0 million. The purchase price was comprised of $18.2 million in cash and the assumption of $12.8 million in debt secured by the properties and fair valued at $13.2 million. The cash portion of the purchase was funded with a combination of proceeds from the recent sale of 6600 Business Parkway in Elkridge, Maryland Elkridge is a census-designated place (CDP) in Howard County, Maryland, United States. The population was 22,042 at the 2000 census. Founded early in the 18th century, Elkridge is located at the confluence of three counties, the other two being Anne Arundel and Baltimore counties. , through a 1031 like-kind exchange and a portion of the proceeds from private placement of unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. notes. The acquisition is expected to generate a first-year cash NOI return of approximately 8.1%. The portfolio is comprised of the following: E[acute accent]Airpark air·park n. A small airport typically located near a business area or industrial park. Business Center (7610-7618 & 7620-7628 Whitepine Road, Richmond, Virginia) - A two-building, 42,178-square-foot multi-tenanted flex/office property in Richmond, Virginia. The property was 100% leased to eight tenants. E[acute accent]Chesterfield Chesterfield, city (1991 pop. 73,352) and district, Derbyshire, central England. An important industrial center, Chesterfield produces mining equipment, railroad cars, metal products, glass, and pottery. Business Center (7321-7499 Whitepine Road, Richmond, Virginia) - An eight-building, 190,049-square-foot multi-tenanted flex/office property in Richmond, Virginia. The property was 93% leased to 45 tenants. E[acute accent]Hanover Hanover, city, Germany Hanover, Ger. Hannover, city (1994 pop. 524,820), capital of Lower Saxony, N Germany, on the Leine River and the Midland Canal. Business Center (303-306 Ashcake ash·cake n. Chiefly Southern U.S. See johnnycake. See Regional Note at johnnycake. [From its being baked in hot ashes.] Noun 1. Road & 340 Hill Carter Parkway, Ashland, Virginia Ashland is a town located just north of Richmond in Hanover County, Virginia. The population was 6,619 at the 2000 census. Ashland is home to Randolph-Macon College (1830). "The Center of the Universe" is a popular thematic phrase displayed on signs in the town. ) - A four-building, 183,612-square-foot multi-tenanted flex/office property in Ashland, Virginia. The property was 93% leased to 29 tenants. E[acute accent]Disposition E[acute accent]On May 11, 2006, the Company sold its property located at 6600 Business Parkway in Elkridge, Maryland, to an institutional buyer for $15.4 million in cash. The Company reported a gain on the sale of $7.5 million, or $0.36 per diluted share, in its second quarter results. Operating results and the gain on sale for the 6600 Business Parkway property are reflected as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. on the Company's Consolidated Statement of Operations See Income statement. . The proceeds from the sale were used to complete a Section 1031 like-kind exchange, which occurred on May 11, 2006, with the purchase of 1408 Stephanie Way (see above) and on June 26, 2006, with the purchase of the Landmark portfolio (see above). E[acute accent]Common Stock Offering E[acute accent]The Company completed an offering of 3,450,000 common shares of beneficial interest at $27.46 per share, which closed on July 21, 2006, raising 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 approximately $90.2 million. The Company used $55.5 million of the net proceeds to pay off the balance on its unsecured 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. facility and will use the balance to fund pending acquisitions. E[acute accent]Financing E[acute accent]On June 22, 2006, the Company completed a private placement of unsecured Senior Notes totaling $75.0 million. The transaction is comprised of $37.5 million in 7-year Series A Senior Notes bearing a fixed interest rate of 6.41% and $37.5 million in 10-year Series B Senior Notes bearing a fixed interest rate of 6.55%. The proceeds of the Senior Notes were used to repay outstanding 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. . E[acute accent]Credit Facility E[acute accent]On April 26, 2006, the Company entered into an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and restated unsecured revolving credit facility, which increased the permitted borrowings under the facility from $100.0 to $125.0 million. The facility, which matures in May 2009, has a feature that allows the Company to increase the size of the facility to up to $225.0 million. Borrowings on the facility bear interest at 120 to 160 basis points over LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). depending on the Company's overall leverage levels. E[acute accent]Financial Structure E[acute accent]At June 30, 2006, the Company's debt-to-total-market capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. ratio was 44.2% based on the Company's closing stock price of $29.79. The interest coverage ratio for the quarter was 2.3 times and the fixed charge coverage ratio was 2.0 times compared with 2.3 and 2.0 times, respectively, for the quarter ended March 31, 2006. E[acute accent]Of the $509.4 million of debt outstanding at June 30, 2006, $454.4 million was fixed-rate debt with a weighted average interest rate of 5.7% and a weighted average maturity of 6.2 years. The remaining $55.0 million was floating-rate debt, comprised of borrowings on the Company's revolving credit facility. The floating-rate debt had a weighted average interest rate of 6.5% and a weighted average maturity of 2.8 years at June 30, 2006. E[acute accent]Dividends E[acute accent]On July 11, 2006, the Company declared a dividend of $0.31 per common share for the quarter ended June 30, 2006. The dividend is payable on August 10, 2006, to common shareholders of record on July 31, 2006. E[acute accent]Investor Conference Call and Webcast E[acute accent]First Potomac Realty Trust will host a conference call on Thursday, July 27, 2006, at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , to discuss second quarter results. The number to call for this interactive teleconference is (617) 213-8840. A replay of the conference call will be available through August 3, 2006, by dialing (617) 801-6888 and entering the confirmation number, 15884304 when prompted for the pass code. E[acute accent]The Company will also provide an online Web simulcast and rebroadcast of its second quarter 2006 conference call. The live broadcast of the call can be accessed from the Investor Info page of First Potomac's web site, www.first-potomac.com, as well as www.streetevents.com and www.earnings.com on July 27, 2006, beginning at 11:00 a.m. EDT. The online replay will follow shortly after the call and continue for 90 days using the same links. E[acute accent]About First Potomac Realty Trust E[acute accent]First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning and operating industrial and flex properties in the Washington, D.C. metropolitan area and other major markets in Virginia and Maryland. The Company owns a 137-building portfolio totaling approximately 9.5 million square feet. The Company's largest tenant is the U.S. Government. E[acute accent]Non-GAAP Financial Measures E[acute accent]Funds from Operations - Funds from operations ("FFO") represents net income (loss) before minority interest (computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. 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 or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), including gains (or losses) from debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and excluding any gains or losses on the sale of property, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The Company considers funds from operations a useful additional measure of performance for an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, the Company believes that FFO provides a meaningful additional indication of its performance. The Company also considers funds from operations an appropriate supplemental performance measure given its wide use by investors and analysts. The Company computes funds from operations in accordance with standards established by the Board of Governors of NAREIT NAREIT National Association of Real Estate Investment Trusts in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating funds from operations utilized by other equity real estate investment trusts ("REITs") and, accordingly, may not be comparable to such other REITs. Further, funds from operations does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity. The Company's FFO calculations are reconciled to net income in the Company's Consolidated Statement of Operations included in this release. E[acute accent]NOI - The Company defines 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. ("NOI") as operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. (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 , tenant reimbursements, and other income) less property and related expenses (property expenses, real estate taxes, and insurance). Management believes that NOI is a useful supplemental measure of the Company's property operating performance because it excludes general and administrative expenses, interest expense and depreciation and amortization thereby providing a performance measure of the revenues and expenses directly associated with owning and operating commercial real estate properties, and provides a prospective not immediately apparent from net income. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to other REITs. The Company's NOI calculations are reconciled to total revenue and total 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. at the end of this release. E[acute accent]Same-Property NOI - The Company defines same-property NOI as NOI for the Company's properties wholly owned during the entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. of the periods reported. The Company's same-property NOI calculations are reconciled to NOI at the end of this release. E[acute accent]Forward Looking Statements E[acute accent]The 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. contained in this press release are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from the Company's expectations include changes in general or regional economic conditions; the Company's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs operating costs npl → gastos mpl operacionales ; the Company's ability to complete acquisitions on acceptable terms; and other risks detailed in the Company's Annual Report 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. and described from time to time in the Company's filings with the SEC. Many of these factors are beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events.
FIRST POTOMAC REALTY TRUST
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ -----------
(unaudited) (unaudited)
Revenues:
Rental $21,093,153 $15,615,521 $41,412,271 $29,510,300
Tenant
reimbursements
and other 4,130,365 2,128,594 8,185,509 4,369,174
------------ ------------ ------------ -----------
Total revenue 25,223,518 17,744,115 49,597,780 33,879,474
Operating expenses:
Property operating 4,412,756 3,136,461 9,115,157 6,133,669
Real estate taxes
and insurance 2,149,090 1,492,981 4,321,219 2,852,491
General and
administrative 2,529,541 1,766,836 5,063,903 3,637,574
Depreciation and
amortization 7,957,102 5,792,569 15,819,774 10,833,823
------------ ------------ ------------ -----------
Total operating
expenses 17,048,489 12,188,847 34,320,053 23,457,557
Operating income 8,175,029 5,555,268 15,277,727 10,421,917
Other expenses
(income):
Interest expense 7,252,548 4,587,902 13,842,803 9,017,256
Interest and other
income (164,795) (22,587) (568,126) (37,110)
Loss on interest-
rate lock
agreement 671,230 - 671,230 -
Loss from early
retirement of
debt 121,015 - 121,015 -
------------ ------------ ------------ -----------
Total other
expenses 7,879,998 4,565,315 14,066,922 8,980,146
Income from
continuing
operations before
minority interests 295,031 989,953 1,210,805 1,441,771
Minority interests (14,619) (67,797) (66,706) (107,967)
------------ ------------ ------------ -----------
Income from
continuing
operations 280,412 922,156 1,144,099 1,333,804
Discontinued
operations
Income from
operations of
disposed property 115,955 125,211 375,814 251,051
Gain on sale of
disposed property 7,474,862 - 7,474,862 -
Minority interests
in discontinued
operations (370,363) (9,014) (385,782) (20,198)
------------ ------------ ------------ -----------
Income from
discontinued
operations 7,220,454 116,197 7,464,894 230,853
------------ ------------ ------------ -----------
Net income $7,500,866 $1,038,353 $8,608,993 $1,564,657
------------ ------------ ------------ -----------
Depreciation and
amortization of
real estate
assets 7,957,102 5,792,569 15,819,774 10,833,823
Discontinued
operations
depreciation and
amortization - 35,450 3,000 70,891
Minority interests 384,982 76,811 452,489 128,165
Gain on sale of
disposed property (7,474,862) - (7,474,862) -
------------ ------------ ------------ -----------
Funds from
operations
(FFO) $8,368,088 $6,943,183 $17,409,394 $12,597,536
============ ============ ============ ===========
Charges:
Loss on interest-
rate lock
agreement 671,230 671,230
Loss from early
retirement of
debt 121,015 121,015
General and
administrative 177,912 177,912
------------ ------------
FFO before charges $9,338,245 $18,379,551
============ ============
Basic net income
per share:
Continuing
operations $0.01 $0.05 $0.06 $0.09
Income from
discontinued
operations 0.36 0.01 0.36 0.01
------------ ------------ ------------ -----------
Net income $0.37 $0.06 $0.42 $0.10
Weighted average
common shares
outstanding
- basic 20,401,473 16,440,039 20,285,318 15,345,158
Diluted net income
per share:
Continuing
operations $0.01 $0.05 $0.06 $0.09
Income from
discontinued
operations 0.35 0.01 0.36 0.01
------------ ------------ ------------ -----------
Net income $0.36 $0.06 $0.42 $0.10
Weighted average
common shares
outstanding
- dilutive 20,611,356 16,634,743 20,511,793 15,529,363
FFO per share
- basic $0.39 $0.40 $0.81 $0.77
Weighted average
common shares and
units outstanding
- basic FFO 21,450,940 17,555,399 21,445,350 16,460,518
FFO per share -
diluted - after
charges $0.39 $0.39 $0.80 $0.76
FFO per share -
diluted - before
charges $0.43 $0.39 $0.85 $0.76
Weighted average
common shares and
units outstanding
- diluted FFO 21,660,823 17,750,103 21,671,826 16,644,723
FIRST POTOMAC REALTY TRUST
Consolidated Balance Sheets
June 30, December 31,
2006 2005
------------- -------------
(unaudited)
Assets:
Rental property, net $774,205,375 $668,730,088
Cash and cash equivalents 4,352,399 3,355,692
Escrows and reserves 10,520,068 9,818,004
Accounts and other receivables, net of
allowance for doubtful accounts of
$243,556 and $338,775, respectively 2,731,581 2,705,065
Accrued straight-line rents, net of
allowance for doubtful accounts of
$30,164 and $35,288 respectively 3,966,358 3,638,022
Deferred costs, net 8,088,961 6,675,659
Prepaid expenses and other assets 3,965,053 3,322,586
Intangible assets, net 31,913,067 29,518,100
------------- -------------
Total assets $839,742,862 $727,763,216
============= =============
Liabilities:
Mortgage loans $379,390,285 $369,266,174
Notes payable 75,000,000 -
Credit facility 55,000,000 26,998,642
Accounts payable and accrued expenses 4,974,767 4,734,159
Accrued interest 2,233,485 1,618,091
Rents received in advance 2,570,458 2,932,172
Tenant security deposits 4,297,357 3,972,822
Deferred market rent 8,552,788 7,281,744
------------- -------------
Total liabilities 532,019,140 416,803,804
Minority interests 16,054,980 21,628,564
Shareholders' equity:
Common shares, $0.001 par value,
100,000,000 shares authorized:
20,538,647 and 20,072,755 shares
issued and outstanding, respectively 20,539 20,073
Additional paid-in capital 344,876,363 338,563,952
Dividends in excess of accumulated
earnings (53,228,160) (49,253,177)
------------- -------------
Total shareholders' equity 291,668,742 289,330,848
------------- -------------
Total liabilities and
shareholders' equity $839,742,862 $727,763,216
============= =============
FIRST POTOMAC REALTY TRUST
Net Operating Income (NOI)
Same-Property Analysis
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Total revenue $25,223,518 $17,744,115 $49,597,780 $33,879,474
Property operating
expenses 4,412,756 3,136,461 9,115,157 6,133,669
Real estate taxes
and insurance 2,149,090 1,492,981 4,321,219 2,852,491
------------ ------------ ------------ ------------
NOI 18,661,672 13,114,673 36,161,404 24,893,314
Less: Non same-
property NOI (5,768,360) (1,011,881) (11,532,326) (1,280,315)
------------ ------------ ------------ ------------
Same-property(1)
NOI - accrual
basis $12,893,312 $12,102,792 $24,629,078 $23,612,999
============ ============ ============ ============
Straight-line
revenue, net (245,392) (339,045) (382,437) (651,934)
Deferred market
rental revenue (209,198) (263,922) (462,192) (530,238)
------------ ------------ ------------ ------------
Same-property NOI
- cash basis $12,438,722 $11,499,825 $23,784,449 $22,430,827
============ ============ ============ ============
Same-property NOI
growth - accrual
basis 6.5% 4.3%
Same-property NOI
growth - cash
basis 8.2% 6.0%
(1) Same property comparisons are based upon those properties owned
for the entirety of the periods presented. Same properties for the
periods compared exclude the following non same-properties: 1400
Cavalier Boulevard, Enterprise Center, Glenn Dale Business Center,
Gateway Centre Manassas, 1434 Crossways Boulevard, 2000 Gateway
Boulevard, 403/405 Glenn Drive, Diamond Hill Distribution Center,
Linden Business Center, Prosperity Business Center, Owings Mills
Business Center, 1000 Lucas Way, River's Bend Center, Northridge I
& II, Crossways I, Sterling Park Business Center, 1408 Stephanie
Way, Airpark Business Center, Chesterfield Business Center and
Hanover Business Center. The three months ended June 30, 2006 and
2005 includes Reston Business Campus.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion