Maguire Properties Reports First Quarter 2005 Financial Results.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- Maguire Maguire (Mac Uidhir) is a surname of Irish origin. It may refer to:
See: New York Stock Exchange : MPG The extension used on the MPEG file format. See MPEG. 1. (jargon) MPG - Miles per gallon, as in "Your MPG may vary", i.e. "Your mileage may vary". 2. (filename extension) mpg - A filename extension for a file in MPEG format. ), a Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, focused real estate investment trust, today reported results for the first quarter ended March 31, 2005. Significant First Quarter and Recent Events --Completed a tax deferred reverse exchange for the acquisition of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. Tech Center in Sorrento Sorrento (sōr-rān`tō), town (1991 pop. 16,459), Campania, S Italy, on the Sorrento Peninsula, which separates the Bay of Naples from the Gulf of Salerno. Beautifully situated, it is a tourist center and a summer resort. Mesa in San Diego County, California San Diego County is a county located on the Pacific Ocean in the far southwest of the U.S. state of California, United States along its border with Mexico. According to the 2000 Census, its population was 2,813,833, making it the third largest county by population in the state and , a 38-acre office campus featuring 647,000 square feet of office space and development land that can support 1.2 million square feet of office space. --Completed the acquisition of CommonWealth's Fifth Street Properties portfolio, which includes ten office properties comprising nearly 5.0 million square feet, 3.9 million square feet of structured parking garages and development land that can support over 1.5 million square feet of office space. --Completed a new $133.0 million, ten-year mortgage financing with Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. for San Diego Tech Center at a fixed rate of 5.70%. --Completed a new $100.0 million, seven-year mortgage financing with Wachovia Securities Wachovia Securities, located in Richmond, Virginia (soon to be moved to St. Louis), is the third largest brokerage firm in the United States as of 2006 with $689 billion retail client assets under management. It is a subsidiary of Wachovia Corporation. , secured by the 3121 Michelson Mi·chel·son , Albert Abraham 1852-1931. German-born American physicist who with Edward Morley disproved the existence of ether, the hypothetical medium of electromagnetic waves. He won a 1907 Nobel Prize in physics. Noun 1. office building, Shops at Park Place and two parking garages, at Park Place II at a fixed rate of 5.39%. --Completed three new separate mortgages totaling $388.0 million with Greenwich Greenwich, borough, Greater London, England Greenwich (grĭn`īj, grĕn`–), outer borough (1991 pop. 200,800) of Greater London, SE England, on the Thames River. Manufactures include telephone equipment and underwater cable. Capital in ten-year mortgage financings for 801 North Brand, 700 North Central and Wells Fargo Center Wells Fargo Center is the name of several buildings in the United States:
v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: fixed rate of 5.38%. --Completed four new separate mortgages totaling $529.2 million with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. in seven-year mortgage financings for Mission City Corporate Center, Regents Square I & II, One Renaissance Renaissance (rĕnəsäns`, –zäns`) [Fr.,=rebirth], term used to describe the development of Western civilization that marked the transition from medieval to modern times. Square and Pacific Arts Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ at a blended fixed rate of 5.14%. --Completed a two-year variable rate mortgage for $62.9 million with Nomura Nomura (野村 or 乃村 or 埜村) is a Japanese surname. It can refer to: People
See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 2.25% (subject to adjustment to either 1.75% or 2.75%) through maturity. --Completed a two-year, variable rate mortgage for $42.0 million with Nomura secured by Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum Research Park I and II at an interest rate of 30-day LIBOR plus 2.0% through maturity. --Completed new leases and renewals for 403,491 square feet including 183, 361 square feet of leases with New Century at Park Place. --Completed a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , five-year executive equity incentive program for senior management. --Entered into a forward commitment for a new $273 million, 10-year, 5.8% fixed rate loan on 777 Tower which is expected to fund in the fourth quarter of 2006. Obtained terms for a new $458 million fixed rate loan on Gas Company Tower which is expected to fund in the third quarter of 2006. First Quarter Financial Results 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 ) available to common shareholders for the quarter ended March 31, 2005 was $20.2 million, or $0.47 per 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. share, compared to FFO available to common shareholders of $19.4 million, or $0.46 per basic and diluted share, for the quarter ended March 31, 2004. First quarter 2005 results included a $1.2 million, or $0.02 per basic and diluted share, loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt in connection with the replacement of our $100 million secured credit facility as part of the CommonWealth transaction financing and the early 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 approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $96 million of our Park Place II bridge loan. Excluding the loss on early extinguishment of debt, funds from operations (FFO) available to common shareholders would have been $21.2 million, or $0.49 per basic and diluted share for the quarter ended March 31, 2005. The weighted average number of basic and diluted common shares outstanding was 42,924,061 (43,162,860 for purposes of calculating diluted FFO per share available to common shareholders) for the quarter ended March 31, 2005 and the weighted average number of basic and diluted common shares outstanding for the quarter ended March 31, 2004 was 42,329,921 and 42,578,570, respectively. Net loss available to common shareholders for the quarter ended March 31, 2005 was $2.6 million, or $0.06 per basic and diluted share compared to net income available to common shareholders of $5.9 million, or $0.14 per basic and diluted share, for the quarter ended March 31, 2004. Including San Diego Tech Center, the Company currently owns approximately 25.8 million square feet, consisting of 24 office properties with approximately 15.8 million net rentable square feet, one 350-room hotel with 266,000 square feet and total on and off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off structured parking of approximately 10.1 million square feet, plus surface parking, which in total accommodates over 33,000 vehicles. The Company also owns undeveloped land that it believes can support up to 7.6 million square feet of office, retail and residential uses. Mr. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Gilchrist Gilchrist is a surname, and may refer to
Teleconference and Webcast Maguire Properties will conduct a conference call and audio webcast at 10:00 A.M. Pacific Time (1:00 p.m. Eastern Time) tomorrow, Wednesday Wednesday: see week. , May 4, 2005, to discuss the financial results of the first quarter and provide a company update. The conference call can be accessed by dialing 800-443-9874 (Domestic), or 706-634-1231 (International); no passcode is required. The conference call can also be accessed via audio webcast through the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's web site, located at www.maguireproperties.com, or can be accessed through CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network at www.streetevents.com. A replay of the conference call will be available approximately two hours following the call through May 11, 2005. To access this replay dial 800-642-1687 (Domestic) or 706-645-9291 (International). The required passcode for the replay is 5281083. A webcast replay will also be available through the Investor Relations section of the Company's web site, located at www.maguireproperties.com, or through CCBN at www.streetevents.com. About Maguire Properties, Inc. Maguire Properties, Inc. is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. Maguire Properties, Inc. is a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. real estate company with substantial in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For more information on Maguire Properties, visit the Company's website at www.maguireproperties.com. Business Risks This press release contains 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. based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; risks associated with the ability to complete any contemplated tax deferred exchange; failure to manage effectively the Company's growth and expansion into new markets to complete acquisitions or to integrate acquisitions successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in the securities markets; potential liability for uninsured losses and environmental contamination contamination /con·tam·i·na·tion/ (kon-tam?i-na-shun) 1. the soiling or making inferior by contact or mixture. 2. the deposition of radioactive material in any place where it is not desired. ; risks associated with our Company's potential failure to qualify as a REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). under the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. of 1986, as 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 possible adverse changes in tax and environmental laws; and risks associated with the Company's dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" in the 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. filed by the Company with the Securities and Exchange Commission on March 15, 2005. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
MAGUIRE PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2005 2004
----------- -----------
(unaudited)
ASSETS
Investments in real estate: 3,422,008 2,419,743
Less: accumulated depreciation and
amortization (211,078) (199,078)
----------- -----------
3,210,930 2,220,665
Assets associated with real estate held for
sale 417,907 -
----------- -----------
3,628,837 2,220,665
Cash and cash equivalents 59,443 64,495
Restricted cash 163,583 71,123
Rents and other receivables 8,113 8,038
Deferred rents 26,076 24,734
Due from affiliates 3,449 3,913
Deferred leasing costs and value of in-place
leases, net 245,479 152,528
Deferred loan costs, net 27,134 15,826
Acquired above market leases 41,287 37,207
Other assets 17,556 5,365
----------- -----------
Total assets $4,220,957 $2,603,894
=========== ===========
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Mortgage loans $2,987,730 $1,550,250
Other secured loans 100,200 255,200
Accounts payable and other liabilities 81,093 77,330
Dividends and distributions payable 24,693 24,692
Capital leases payable 7,297 5,408
Acquired lease obligations 89,399 81,449
Obligations associated with real estate assets
held for sale 343,737 -
----------- -----------
Total liabilities 3,634,149 1,994,329
Minority interests 67,282 72,198
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000
shares authorized: 7.625% Series A
Cumulative Redeemable Preferred Stock,
$25.00 liquidation preference, 10,000,000
shares issued and outstanding at March 31,
2005 100 100
Common Stock, $0.01 par value, 100,000,000
shares authorized, 43,331,332 and 43,258,489
shares issued and outstanding at March 31,
2005 and December 31, 2004, respectively 433 433
Additional paid in capital 653,582 653,099
Unearned and accrued stock compensation, net (4,723) (5,184)
Dividends in excess of earnings (138,968) (119,033)
Accumulated other comprehensive income, net 9,102 7,952
----------- -----------
Total stockholders' equity 519,526 537,367
----------- -----------
Total liabilities, minority interests and
stockholders' equity $4,220,957 $2,603,894
=========== ===========
MAGUIRE PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Three
months months
ended ended
March 31, March 31,
2005 2004
----------- -----------
Revenues:
Rental $55,646 $36,431
Tenant reimbursements 20,821 18,903
Hotel operations 5,915 5,199
Parking 9,067 7,149
Management, leasing and development services
to affiliates 261 697
Interest and other 712 848
----------- -----------
Total revenues 92,422 69,227
----------- -----------
Expenses:
Rental property operating and maintenance 18,567 14,506
Hotel operating and maintenance 3,844 3,711
Real estate taxes 7,768 4,988
Parking 2,595 2,047
General and administrative and other 6,324 4,436
Depreciation and amortization 27,771 16,178
Interest 23,945 12,930
Loss from early extinguishment of debt 1,208 -
----------- -----------
Total expenses 92,022 58,796
----------- -----------
Income from continuing operations before
minority interests 400 10,431
Minority interests attributable to continuing
operations 853 (1,400)
----------- -----------
Income from continuing operations 1,253 9,031
Income from discontinued operations before
minority interests 1,131 627
Minority interests attributable to discontinued
operations (221) (129)
----------- -----------
Income from discontinued operations 910 498
Net income 2,163 9,529
Preferred stock dividends (4,766) (3,601)
----------- -----------
Net (loss) income available to common
shareholders $(2,603) $5,928
=========== ===========
Basic (loss) income per share from continuing
operations available to common shareholders $(0.08) $0.13
Diluted (loss) income per share from continuing
operations available to common shareholders $(0.08) $0.13
Basic (loss) income per share available to
common shareholders $(0.06) $0.14
Diluted (loss) income per share available to
common shareholders $(0.06) $0.14
Weighted-average common shares outstanding:
Basic 42,924,061 42,329,921
Diluted 42,924,061 42,578,570
MAGUIRE PROPERTIES, INC.
FUNDS FROM OPERATIONS (a)
Three Three
Months Months
Ended Ended
March March
31, 31,
2005 2004
-------- --------
Reconciliation of net loss to funds from operations:
Net (loss) income available to common shareholders $(2,603) $5,928
Adjustments:
Minority interests (632) 1,529
Real estate depreciation and amortization 27,672 16,087
Real estate depreciation and amortization
included in discontinued operations 654 904
-------- --------
Funds from operations available to common
shareholders and Unit Holders (FFO) $25,091 $24,448
======== ========
Company share of FFO (b) $20,191 $19,435
======== ========
FFO per share - basic and diluted $0.47 $0.46
======== ========
Reconciliation of FFO to FFO before loss from early
extinguishment of debt:
FFO available to common shareholders and
unitholders (FFO) $25,091 $24,448
Add: loss from early extinguishment of debt 1,208 -
-------- --------
FFO before loss from early extinguishment of debt $26,299 $24,448
======== ========
Company share of FFO before loss from early
extinguishment of debt (b) $21,163 $19,435
======== ========
FFO per share before loss from early
extinguishment of debt - basic and diluted $0.49 $0.46
======== ========
(a) We calculate funds from operations, or FFO, as defined by the
National Association of Real Estate Investment Trusts, or NAREIT.
FFO represents net income (loss) (computed in accordance with
accounting principles generally accepted in the United States of
America, or GAAP), excluding gains (or losses) from sales of
property, extraordinary items, real estate related depreciation
and amortization (excluding amortization of deferred financing
costs) and after adjustments for unconsolidated partnerships and
joint ventures.
Management uses FFO as a supplemental performance measure because
in excluding real estate related depreciation and amortization and
gains and losses from property dispositions and extraordinary
items, it provides a performance measure that, when compared year
over year, captures trends in occupancy rates, rental rates and
operating costs. We also believe that, as a widely recognized
measure of the performance of REITs, FFO will be used by investors
as a basis to compare our operating performance with that of other
REITs.
Management also uses FFO before losses from the early
extinguishment of debt as a supplemental performance measure
because these losses create significant earnings volatility which
in turn results in less comparability between reporting periods
and less predictability about future earnings potential. The
losses represent costs to extinguish debt prior to the stated
maturity and the write-off of unamortized loan costs on the date
of extinguishment. The decision to extinguish debt prior to its
maturity generally results from (i) the assumption of debt in
connection with property acquisitions that is priced or structured
at less than desirable terms (e.g. floating interest rate instead
of fixed interest rate) and (ii) short-term bridge financing
obtained in connection with the acquisition of a property or
portfolio of properties until such time as the company completes
its long-term financing strategy and (iii) the restructuring or
replacement of corporate level financings to accommodate property
acquisitions. Consequently, management views these losses as
costs to complete the respective acquisition property or
properties.
However, because FFO excludes depreciation and amortization and
captures neither the changes in the value of our properties that
result from use or market conditions nor the level of capital
expenditures and leasing commissions necessary to maintain the
operating performance of our properties, all of which have real
economic effect and could materially impact our results from
operations, the utility of FFO as a measure of our performance is
limited. Other equity REITs may not calculate FFO in accordance
with the NAREIT definition and, accordingly, our FFO may not be
comparable to such other REITs' FFO. Accordingly, FFO should be
considered only as a supplement to net income as a measure of our
performance. FFO should not be used as a measure of our liquidity,
nor is it indicative of funds available to fund our cash needs,
including our ability to pay dividends or make distributions. FFO
also should not be used as a supplement to or substitute for cash
flow from operating activities (computed in accordance with GAAP).
(b) Based on an 80.5% and 79.5% weighted average interest in our
operating partnership for the three months ended March 31, 2005
and 2004, respectively.
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