Inland Real Estate Corporation Announces First Quarter 2004 Results.Business Editors OAK BROOK A brook is a small stream. Brook may refer to the following places:
Inland INLAND. Within the same country. 2. It seems not to be agreed whether the term inland applies to all the United States or only to one state. It has been holden in Now York that a bill of exchange by one person in one state, on another person in another, is an Real Estate Corporation, a self-administered public real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). "), today announced that net income for first quarter 2004, which ended March 31, 2004, was $11.9 million or $0.18 per share (basic and 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. ), compared to net income of $9.9 million or $0.15 per share (basic and diluted) for the quarter ended March 31, 2003. 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 "), a widely accepted measure of REIT performance, for the quarter ended March 31, 2004 was $20.3 million or $0.31 per share (basic and diluted), compared to FFO of $18.2 million or $0.28 per share for the prior comparable period, an increase of 11%. See below for a reconciliation of FFO and FFO per share to net income and net income per share. The Company considers FFO to be a widely accepted and appropriate measure of performance for REITs that also provides a relevant basis for comparison among other REITs. As defined by the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts "), FFO means net income 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 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , excluding gains (or losses) from sales of property, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures in which the REIT holds an interest. The calculation of FFO may vary from entity to entity. Our presentation of FFO may not be comparable to other similarly titled measures presented by other REITs. FFO does not represent cash flows from operations as defined by GAAP, it is not indicative indicative: see mood. of cash available to fund all cash flow needs and liquidity, including our ability to pay distributions, and should not be considered as an alternative to net income, as determined in accordance to GAAP, for the purpose of evaluating our operating performance. The chart below reflects our FFO for the periods presented, reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to net income for these periods:
Three months Three months
ended ended
March 31, March 31,
2004 2003
-------------- --------------
Net income $ 11,885,511 9,874,542
Gain on sale of investment properties (873,073) -
Equity in depreciation of
unconsolidated ventures - 20,512
Amortization on in place lease
intangibles 318,908 71,199
Amortization on leasing commissions 175,153 110,617
Depreciation, net of minority interest 8,767,994 8,144,791
-------------- --------------
Funds From Operations $ 20,274,493 18,221,581
============== ==============
Net income per share, basic and
diluted $ .18 .15
============== ==============
Funds From Operations per common
share, basic and diluted $ .31 .28
============== ==============
Weighted average common shares
outstanding, basic 65,849,672 64,658,652
============== ==============
Weighted average common shares
outstanding, diluted 65,852,946 64,664,106
============== ==============
NYSE NYSE See: New York Stock Exchange Listing The Company is in the process of completing its application to list its shares on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and anticipates that trading will begin on June June: see month. 9, 2004. Acquisitions In the first three months of 2004, the Company acquired two retail centers: Hastings Hastings, city, England Hastings, city (1991 pop. 74,979) and district, East Sussex, SE England. A resort and residential city, Hastings is backed by cliffs and has a 3-mi (4.8-km) marine esplanade, parks, and bathing beaches. Marketplace in Hastings, Minnesota Hastings is a city in Minnesota at the confluence of the Mississippi and St. Croix Rivers. The population was 18,204 at the 2000 census. It is the county seat of Dakota County6. and a Cub Food Store in Arden Hills, Minnesota Arden Hills is a city in Ramsey County, Minnesota, United States. The population was 9,652 at the 2000 census. Bethel University and Seminary is located in the city of Arden Hills. Also, the campus of Northwestern College is partially in Arden Hills. . These centers comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 166,000 square feet and were acquired for all cash, for an aggregate of $23 million. Dispositions In the first three months of 2004, the Company sold one retail center, comprising approximately 12,499 square feet, for approximately $3 million. Proceeds from this disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of will be used to acquire new properties. Leasing As of March 31, 2004, the Company's portfolio was 94.7% leased, as compared to 94.6% leased as of March 31, 2003 and 94.9% leased as of December December: see month. 31, 2003. Summary Inland Real Estate Corporation is a self-administered public REIT that owns 138 neighborhood, community and single-tenant retail centers located in the Midwestern Mid·west or Middle West A region of the north-central United States around the Great Lakes and the upper Mississippi Valley. It is generally considered to include Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, Missouri, Kansas, and 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. . This press release may contain 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. . Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe", "expect", "anticipate", "intend", "estimate", "may", "will", "should" and "could." There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For a more complete discussion of these risks and uncertainties, please see the Company's filing 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. for the year ended December 31, 2003.
INLAND REAL ESTATE CORPORATION
Financial Highlights
Three months Three months
ended ended
March 31, 2004 March 31, 2003
-------------- --------------
Income:
Rental income $ 33,461,451 30,280,090
Additional rental income 14,518,903 12,374,115
Lease termination income - 369,819
Interest income 152,626 126,898
Dividend income 257,849 273,548
Other income 417,698 113,876
-------------- --------------
48,808,527 43,538,346
Expenses:
Professional services 215,596 81,442
General and administrative expenses 1,461,502 1,091,856
Bad debt expense 1,053,172 686,784
Property operating expenses 15,267,464 14,187,349
Interest expense 10,636,377 9,617,209
Depreciation 8,949,508 7,991,161
Amortization 525,380 229,413
Acquisition cost expenses 35,561 16,383
-------------- --------------
38,144,560 33,901,597
-------------- --------------
Income from operations 10,663,967 9,636,749
Minority interest (216,358) (180,304)
Loss from operations of unconsolidated
ventures - (100,298)
-------------- --------------
Income before discontinued operations 10,447,609 9,356,147
Income from discontinued operations
(including gain on sale of
investment property of $873,073
for the three months ended
March 31, 2004) 1,437,902 518,395
-------------- --------------
Net income 11,885,511 9,874,542
Other comprehensive income:
Unrealized gain (loss) on investment
securities, net of amounts
realized of $289,658 and $2,299,
for the three months ended
March 31, 2004 and 2003,
respectively 36,850 (444,449)
-------------- --------------
Comprehensive income $ 11,922,361 9,430,093
============== ==============
Income before discontinued operations
per common share, basic and diluted $ .16 .14
============== ==============
Income from discontinued operations per
common share, basic and diluted $ .02 .01
============== ==============
Net income per common share, basic and
diluted $ .18 .15
============== ==============
Weighted average common shares
outstanding, basic 65,849,672 64,658,652
============== ==============
Weighted average common shares
outstanding, diluted 65,852,946 64,664,106
============== ==============
INLAND REAL ESTATE CORPORATION
Financial Highlights
March 31, 2004
(unaudited) December 31, 2003
---------------- -----------------
Investment properties:
Land $ 349,689,424 346,088,070
Construction in progress 1,615,940 -
Building and improvements 931,072,688 920,542,755
---------------- -----------------
1,282,378,052 1,266,630,825
Less accumulated depreciation 154,111,920 147,341,377
---------------- -----------------
Net investment properties 1,128,266,132 1,119,289,448
Cash and cash equivalents 36,831,836 58,388,077
Investment in securities (net of
an unrealized gain of $1,538,615
and $1,501,765 at March 31, 2004
and December 31, 2003, respectively) 12,400,201 12,040,689
Assets held for sale (net of
accumulated depreciation of
$4,953,170 and $2,835,477 at
March 31, 2004 and December 31,
2003, respectively) 26,926,021 14,443,761
Restricted cash 9,089,100 13,329,091
Accounts and rents receivable (net
of provision for doubtful accounts
of $3,727,024 and $2,966,275 at
March 31, 2004 and December 31,
2003, respectively) 33,697,540 30,020,794
Investment in and advances to
joint venture - 8,392,406
Deposits and other assets 9,551,638 1,941,614
Acquired above market lease
intangibles (net of accumulated
amortization of $1,134,907 and
$933,811 at March 31, 2004 and
December 31, 2003, respectively) 5,588,980 5,772,521
Acquired in-place lease
intangibles (net of accumulated
amortization of $1,059,704 and
$740,796 at March 31, 2004 and
December 31, 2003, respectively) 12,440,241 10,414,375
Leasing fees (net of accumulated
amortization of $1,541,345 and
$1,368,464 at March 31, 2004 and
December 31, 2003, respectively) 1,965,855 1,990,576
Loan fees (net of accumulated
amortization of $5,553,393 and
$5,096,350 at March 31, 2004 and
December 31, 2003, respectively) 4,223,727 4,632,258
---------------- -----------------
Total assets $ 1,280,981,271 1,280,655,610
================ =================
INLAND REAL ESTATE CORPORATION
Financial Highlights
March 31, 2004
(unaudited) December 31, 2003
---------------- -----------------
Liabilities:
Accounts payable and accrued
expenses $ 1,992,157 1,994,427
Acquired below market lease
intangibles (net of accumulated
amortization of $1,811,359 and
$1,459,136 at March 31, 2004
and December 31, 2003,
respectively) 7,802,604 8,154,827
Accrued interest 1,922,451 1,809,480
Accrued real estate taxes 25,881,738 25,492,747
Distributions payable 5,417,604 5,406,012
Security and other deposits 2,493,566 2,485,207
Mortgages payable 608,683,093 615,511,713
Line of credit 135,000,000 135,000,000
Prepaid rents and unearned
income 3,837,668 3,151,431
Liabilities associated with
assets held for sale 13,687,403 7,741,868
Other liabilities 2,265,490 2,440,372
---------------- -----------------
Total liabilities 808,983,774 809,188,084
---------------- -----------------
Minority interest 20,714,779 20,973,496
---------------- -----------------
Redeemable common stock relating
to Put Agreement (3,932,584
Shares) 35,000,000 35,000,000
---------------- -----------------
Stockholders' Equity:
Preferred stock, $.01 par value,
6,000,000 Shares authorized;
none issued and outstanding at
March 31, 2004 and December
31, 2003 - -
Common stock, $.01 par value,
100,000,000 Shares authorized;
62,055,975 and 61,660,061
Shares issued and outstanding
at March 31, 2004 and December
31, 2003, respectively 620,560 616,600
Additional paid-in capital (net
of offering costs of $58,816,092
and redeemable common stock
relating to Put Agreement of
$35,000,000) 596,410,068 592,169,119
Deferred stock compensation (36,000) (48,000)
Accumulated distributions in
excess of net income (182,250,525) (178,745,454)
Accumulated other comprehensive
income 1,538,615 1,501,765
---------------- -----------------
Total stockholders' equity 416,282,718 415,494,030
---------------- -----------------
Commitments and contingencies
Total liabilities and
stockholders' equity $ 1,280,981,271 1,280,655,610
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