Maguire Properties Reports Second Quarter 2006 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 real estate investment trust, today reported results for the second quarter ended June June: see month. 30, 2006. Significant Second Quarter and Recent Events --Expanded executive management team through the appointment of Mr. Martin Griffiths Griffiths is a surname with Welsh origins, as in Gruffydd ap Llywelyn Fawr. People called Griffiths recorded here include:
n. 1. A horseman or trooper. Such a regiment of rutters Never defied men braver. - Beau. & Fl. 1. That which ruts. , executive vice president, major transactions and promotion of Mr. Mark T. Lammas, executive vice president, development to provide additional expertise, oversight
Oversight may refer to:
--Completed a $125 million 10-year, fixed rate, financing on Glendale Glendale. 1 City (1990 pop. 148,134), Maricopa co., S central Ariz., adjacent to Phoenix; inc. 1910. It is located in a rich agricultural region irrigated by the Salt River project. Glendale has become one of the fastest-growing U.S. Center with $33 million of 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). used to reduce the Company's term loan balance to $332 million. --Completed new leases and renewals totaling 320,296 square feet including a new lease with Countrywide coun·try·wide adv. & adj. Throughout a whole country; nationwide: launched a fundraising campaign countrywide; a countrywide search. Adj. 1. Home Loan for 37,982 square feet at 801 N. Brand in Glendale and a renewal through 2017 with Orrick Orrick may refer to:
--Continued development activities at Mission City in 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. , Park Place and WAMU WAMU Washington Mutual WAMU West African Monetary Union Campus in Orange County, and Lantana lantana (lăntā`nə): see verbena. lantana Any of more than 150 shrubs that make up the genus Lantana in the verbena family, native to the New World and African tropics. in Los Angeles County. Second Quarter 2006 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 June 30, 2006 was $18.8 million, or $0.41 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, compared to FFO available to common shareholders of $22.8 million or $0.53 per diluted share, for the quarter ended June 30, 2005. FFO available to common shareholders for the quarter ended June 30, 2006 was impacted by a $3.1 million cash and $1.0 million non-cash loss from 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 related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of the Glendale Center mortgage and paydown Paydown A payment made towards an outstanding loan balance. Notes: Every time you make a mortgage payment you are "paying down" your loan. See also: Loan, Mortgage, Principal paydown In a corporate or U.S. of the term loan. FFO available to common shareholders for the quarter ended June 30, 2005 was impacted by a $1.1 million non-cash loss from early extinguishment of debt related to the sales of 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 and 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 office buildings. Excluding these losses on early extinguishment of debt, FFO would have been $0.48 and $0.55 per diluted share for the quarters ended June 30, 2006 and June 30, 2005, respectively. The FFO results for the quarter ended June 30, 2006 were also negatively impacted by a $1.0 million charge, or $.02 per diluted share, related to immediately 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) common stock grants to the two new executive hires. FFO available for common shareholders for the six months ended June 30, 2006 was $42.4 million, or $0.92 per diluted share, compared to FFO available for common shareholders of $43.0 million, or $1.00 per diluted share for the six months ended June 30, 2005. Excluding losses on early extinguishment of debt, FFO available to common shareholders would have been $1.00 and $1.04 per diluted share for the six months ended June 30, 2006 and 2005, respectively. Net loss available to common shareholders for the quarter ended June 30, 2006 was $14.5 million, or $0.31 per diluted share, compared to net loss available to common shareholders of $12.1 million, or $0.28 per diluted share, for the quarter ended June 30, 2005. Net income available to common shareholders for the six months ended June 30, 2006 was $70.3 million, or $1.53 per diluted share, compared to net loss available to common shareholders of $14.7 million, or $0.34 per diluted share, for the six months ended June 30, 2005. The weighted average number of diluted common shares outstanding was 46,156,438 for the quarter ended June 30, 2006 (46,290,201 for purposes of calculating diluted FFO per share available to common shareholders) and the weighted average number of diluted common shares outstanding for the quarter ended June 30, 2005 was 43,146,500 (43,336,808 for purposes of calculating diluted FFO per share available to common shareholders). The weighted average number of diluted common shares outstanding was 46,073,631 for the six months ended June 30, 2006 and the weighted average number of diluted common shares outstanding for the six months ended June 30, 2005 was 43,035,896 (43,217,427 for purposes of calculating diluted FFO per share available to common shareholders). As of June 30, 2006, the Company has whole or partial interests in 25.7 million square feet, consisting of 23 properties with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 15.4 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 10.0 million square feet, including surface parking, which in total accommodates over 32,000 vehicles. The Company also owns undeveloped land that it believes can support up to 7.3 million square feet of office, retail and residential uses and up to an additional 3.6 million square feet of structured parking. Mr. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. F. Maguire III, our Chairman and Chief Executive Officer, commented, "Pushing forward on our development projects during the quarter remained a priority and we continue to be enthusiastic about the potential value creation of our pipeline. We are pleased to expand our management capabilities with the appointments of three executive vice presidents and are confident their collective expertise and talent will assist us in implementing our growth initiatives. Additionally, we remain focused on delivering 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. value to our shareholders over the next several years through well located, high quality development projects in our robust markets of 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, ." 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. , August 2, 2006, 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); ID #2068990. 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 August 10, 2006. To access this replay, dial 800-642-1687 (Domestic) or 706-645-9291 (International). The required passcode for the replay is #2068990. A webcast replay will also be available through the Investor Relations section of the Company's website, 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 potential 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; risks associated with joint ventures; 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 our 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. filed with the Securities and Exchange Commission on March 16, 2006. 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)
(Unaudited)
June 30, December 31,
2006 2005
------------ ------------
ASSETS
Investments in real estate: $3,221,003 $3,897,893
Less: accumulated depreciation and
amortization (308,450) (309,270)
------------ ------------
2,912,553 3,588,623
Cash and cash equivalents 49,087 45,034
Restricted cash 182,483 69,020
Rents and other receivables 16,478 16,821
Deferred rents 35,143 38,304
Due from affiliates 10,024 872
Deferred leasing costs and value of in-place
leases, net 161,272 219,100
Deferred loan costs, net 20,320 22,787
Acquired above market leases, net 26,481 40,928
Other assets 33,914 27,702
Investment in unconsolidated joint venture 28,431 -
------------ ------------
Total assets $3,476,186 $4,069,191
============ ============
LIABILITIES, MINORITY INTERESTS AND
STOCKHOLDERS' EQUITY
Mortgage loans $2,623,131 $3,205,234
Other secured loans 65,000 148,000
Accounts payable and other liabilities 149,100 107,515
Dividends and distributions payable 24,925 24,701
Capital leases payable 7,007 7,450
Acquired below market leases, net 79,955 99,584
------------ ------------
Total liabilities 2,949,118 3,592,484
Minority interests 38,975 40,070
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 100 100
Common Stock, $0.01 par value,
100,000,000 shares authorized,
46,962,286 and 45,814,651 shares issued
and outstanding at June 30, 2006 and
December 31, 2005, respectively 470 458
Additional paid-in capital 670,867 664,428
Accumulated deficit and dividends (200,520) (233,481)
Accumulated other comprehensive income,
net 17,176 5,132
------------ ------------
Total stockholders' equity 488,093 436,637
------------ ------------
Total liabilities, minority interests
and stockholders' equity $3,476,186 $4,069,191
============ ============
MAGUIRE PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
-----------------------
June 30, June 30,
2006 2005
----------- -----------
Revenues:
Rental $67,587 $79,435
Tenant reimbursements 20,810 28,669
Hotel operations 6,888 5,763
Parking 10,176 11,417
Management, leasing and development
services to affiliates 1,462 1,001
Interest and other 2,544 1,137
----------- -----------
Total revenues 109,467 127,422
----------- -----------
Expenses:
Rental property operating and maintenance 21,240 25,865
Hotel operating and maintenance 4,262 3,821
Real estate taxes 8,819 11,207
Parking 3,071 3,140
General and administrative and other 8,568 5,293
Ground lease 17 666
Depreciation and amortization 35,170 43,254
Interest 34,306 43,373
Loss from early extinguishment of debt 4,107 442
----------- -----------
Total expenses 119,560 137,061
----------- -----------
Loss from continuing operations before
equity in loss of unconsolidated joint
venture and minority interests (10,093) (9,639)
Equity in loss of unconsolidated joint
venture (1,985) -
Minority interests 2,322 2,755
----------- -----------
Loss from continuing operations (9,756) (6,884)
Loss from discontinued operations before
minority interests - (500)
Minority interests attributable to
discontinued operations - 95
----------- -----------
Loss from discontinued operations - (405)
Net loss (9,756) (7,289)
Preferred stock dividends (4,766) (4,766)
----------- -----------
Loss available to common shareholders $(14,522) $(12,055)
=========== ===========
Basic loss per share available to common
shareholders $(0.31) $(0.28)
Diluted loss per share available to common
shareholders $(0.31) $(0.28)
Weighted-average common shares outstanding:
Basic 46,156,438 43,146,500
Diluted 46,156,438 43,146,500
MAGUIRE PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Six Months Ended
-----------------------
June 30, June 30,
2006 2005
----------- -----------
Revenues:
Rental $135,367 $137,960
Tenant reimbursements 42,878 50,334
Hotel operations 13,564 11,678
Parking 20,499 21,057
Management, leasing and development services
to affiliates 3,117 1,262
Interest and other 3,324 1,853
----------- -----------
Total revenues 218,749 224,144
----------- -----------
Expenses:
Rental property operating and maintenance 42,971 45,248
Hotel operating and maintenance 8,447 7,665
Real estate taxes 18,185 19,320
Parking 5,950 5,787
General and administrative and other 14,702 10,951
Ground lease 285 1,332
Depreciation and amortization 69,778 71,680
Interest 67,390 68,744
Loss from early extinguishment of debt 4,749 1,650
----------- -----------
Total expenses 232,457 232,377
----------- -----------
Loss from continuing operations before
equity in loss of unconsolidated joint
venture, gain on sale of real estate and
minority interests (13,708) (8,233)
Equity in loss of unconsolidated joint
venture (2,810) -
Gain on sale of real estate 108,469 -
Minority interests (12,144) 3,411
----------- -----------
Income (loss) from continuing operations 79,807 (4,822)
Loss from discontinued operations before
minority interests - (375)
Minority interests attributable to
discontinued operations - 71
----------- -----------
Loss from discontinued operations - (304)
Net income (loss) 79,807 (5,126)
Preferred stock dividends (9,532) (9,532)
----------- -----------
Income (loss) available to common
shareholders $70,275 $(14,658)
=========== ===========
Basic income (loss) per share available to
common shareholders $1.53 $(0.34)
Diluted income (loss) per share available to
common shareholders $1.53 $(0.34)
Weighted-average common shares outstanding:
Basic 45,941,032 43,035,896
Diluted 46,073,631 43,035,896
MAGUIRE PROPERTIES, INC.
FUNDS FROM OPERATIONS (a)
(in thousands, except for per share amounts)
Three Months Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Reconciliation of net (loss)
income to funds from
operations:
Net income (loss) available
to common shareholders $(14,522) $(12,055) $70,275 $(14,658)
Adjustments:
Minority interests (2,322) (2,850) 12,144 (3,482)
Gain on sale of real
estate - - (108,469) -
Real estate depreciation
and amortization,
including discontinued
operations 35,095 43,155 69,616 71,481
Real estate depreciation
and amortization from
unconsolidated joint
venture 3,497 - 5,850 -
--------- --------- --------- ---------
Funds from operations
available to common
shareholders and unit
holders (FFO) $21,748 $28,250 $49,416 $53,341
========= ========= ========= =========
Company share of FFO (b) $18,750 $22,847 $42,410 $43,032
========= ========= ========= =========
FFO per share - basic $0.41 $0.53 $0.92 $1.00
========= ========= ========= =========
FFO per share - diluted $0.41 $0.53 $0.92 $1.00
========= ========= ========= =========
Reconciliation of FFO to FFO
before loss from early
extinguishment of debt:
FFO available to common
shareholders and unit
holders (FFO) $21,748 $28,250 $49,416 $53,341
Add: loss from early
extinguishment of debt 4,107 442 4,107 1,650
Add: loss from early
extinguishment of debt -
discontinued operations - 672 - 672
--------- --------- --------- ---------
FFO before loss from early
extinguishment of debt $25,855 $29,364 $53,523 $55,663
========= ========= ========= =========
Company share of FFO before
loss from early
extinguishment of debt (b) $22,290 $23,748 $45,934 $44,905
========= ========= ========= =========
FFO per share before loss
from early extinguishment
of debt - basic $0.48 $0.55 $1.00 $1.04
========= ========= ========= =========
FFO per share before loss
from early extinguishment
of debt - diluted $0.48 $0.55 $1.00 $1.04
========= ========= ========= =========
(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), (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, (iii) the
early repayment of debt associated with properties sold or (iv)
the restructuring or replacement of corporate level financings
to accommodate property acquisitions. Consequently, management
views these losses as costs to complete the respective
acquisition or disposition of 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 a weighted average interest in our operating
partnership for the three and six months ended June 30, 2006 and
June 30, 2005 of 86.2%, 85.8%, 80.9% and 80.7% respectively.
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