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National Golf Properties reports 11 percent FFO per share growth in 1996.



SANTA MONICA Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. , Calif.--(BUSINESS WIRE)--Feb. 25, 1997--National Golf Properties Inc. (NYSE NYSE

See: New York Stock Exchange
:TEE) reported 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
) of $42.0 million for the year ended Dec. 31, 1996, a 15% increase from $36.4 million for the year ended Dec 31, 1995.

On a per-share basis, NGP NGP Neo-Geo Pocket (SNK)
NGP Nearest Grid Point
NGP New Growth Point (UK)
NGP National Grid Project
NGP Next-Generation Program (fire suppression)
NGP Next Generation Product
 reported an 11% increase in FFO to $2.10 per share for the year ended Dec. 31, 1996, from $1.89 per share from a year earlier. The difference in growth rates Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Notes:
Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
 between aggregate FFO and FFO per share is attributable attributable

emanating from or pertaining to attribute.


attributable proportion
see attributable risk (below).

attributable risk
 to the issuance of 1,577,820 shares of NGP common stock during the third quarter of 1996 as partial consideration for the purchase of 20 golf courses.

NGP has adopted the new definition of FFO published by the National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ).

Rent revenues increased 28% to $58.9 million in 1996 from $45.9 million in 1995. The increase in rent revenues was due to same-store rent growth of 2.9% and rent received from 35 golf courses acquired during the year. Net income totaled $13.4 million or $1.17 per share in 1996, compared with $13.3 million or $1.25 per share in 1995. The decrease in net income per share was primarily due to increased interest and depreciation expense in 1996.

For the year, NGP declared de·clare  
v. de·clared, de·clar·ing, de·clares

v.tr.
1. To make known formally or officially. See Synonyms at announce.

2. To state emphatically or authoritatively; affirm.

3.
 distributions to stockholders of $1.66 per share and reduced its payout ratio Payout Ratio

The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share.

Notes:
The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend.
 to approximately ap·prox·i·mate  
adj.
1. Almost exact or correct: the approximate time of the accident.

2.
 79% of FFO from approximately 85% a year earlier.

For the quarter ended Dec. 31, 1996, FFO increased 17% to $10.9 million from $9.3 million in the fourth quarter of 1995. On a per- per- word element [L.], (1) throughout; completely; extremely; (2) in chemistry, a large amount; combination of an element in its highest valence.

per-
pref.
1.
 share basis, NGP reported an 8% increase in FFO to $0.52 per share for the quarter ended Dec. 31, 1996, from $0.48 per share from a year earlier. Rent revenues increased 32% to $15.9 million in the fourth quarter of 1996 from $12.1 million the prior year.

Net income increased to $3.6 million or $0.29 per share in fourth quarter of 1996 compared with $2.8 million or $0.27 per share a year earlier primarily due to a gain from the sale of a golf course in the fourth quarter of 1996.

NGP acquired 35 golf courses for approximately $155 million in 1996 including the purchase of 20 golf courses from Golf Enterprises for $58 million, a transaction in which NGP issued $41 million of common stock as partial consideration. As expected, this transaction was accretive to FFO per share in 1996.

NGP leased 31 if its 35 golf course acquisitions in 1996 to American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of  Golf Corp., which operates approximately 250 courses in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and United Kingdom.

In addition, NGP leased two courses to Cobblestone Golf Group, which operates 22 courses in the southwestern south·west  
n.
1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north.

2. An area or region lying in the southwest.

3.
 United States; one course to The Links Group, which operates 11 courses in the southeastern south·east  
n.
1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north.

2. An area or region lying in the southeast.

3.
 United States; and one course to Evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e.  Alliance Golf Limited, which operates 25 courses in nine states.

NGP currently owns 116 golf courses geographically ge·o·graph·ic   also ge·o·graph·i·cal
adj.
1. Of or relating to geography.

2. Concerning the topography of a specific region.



ge
 diversified diversified (di·verˑ·s  among 27 states. The portfolio consists of 53 daily fee courses, 43 private club courses and 20 resort courses. -0-
                  NATIONAL GOLF PROPERTIES INC.
                     4Q96 Financial Summary
       (In thousands, except per-share and property data)


Income Statement Data       Three Months Ended          Year Ended
                                 Dec. 31,                Dec. 31,
                          1996     1995   Growth   1996     1995  Growth


Base Rent Revenue       $15,528  $11,219  38.4%  $54,609  $42,200  29.4%
Percentage Rent Revenue     403      867 (53.5%)   4,289    3,731  15.0%
Total Rent Revenue      $15,931  $12,086  31.8%  $58,898  $45,931  28.2%

Funds From Operations
  (New Definition)      $10,857  $ 9,256  17.3%  $41,995  $36,447  15.2%
Per Share               $  0.52  $  0.48   8.3%  $  2.10  $  1.89  11.1%
Funds From Operations
  (Old Definition)      $11,233  $ 9,533  17.8%  $43,278  $37,628  15.0%
Per Share               $  0.53  $  0.49   8.2%  $  2.16  $  1.95  10.8%

Weighted Average
  Common Stock and OP
  Units Outstanding      21,028   19,308    --    20,025   19,308    --

Distributions Declared
  Per Share             $  0.42  $  0.41   2.4%  $  1.66  $  1.61   3.1%
Payout Ratio (New FFO
 Definition)                81%      85%    --       79%      85%    --
Payout Ratio (Old FFO
 Definition)                79%      84%    --       77%      83%    --


Balance Sheet Data                        Dec. 31, 1996    Dec. 31, 1995

Real Estate Before Accumulated
  Depreciation                              $515,794          $362,068
Total Assets                                $469,945          $347,967

Variable-Rate Debt                           $24,890           $12,000
  Weighted Average Variable Interest Rate      7.78%             7.44%
Fixed-Rate Debt                             $205,059          $131,176
  Weighted Average Fixed Interest Rate         8.14%             8.22%
Total Debt                                  $229,949          $143,176
  Weighted Average Blended Interest Rate       8.10%             8.16%

Market Capitalization (Including Debt)      $896,047          $584,845
Total Debt/Market Capitalization                 26%               24%

Common Stock Outstanding                      12,304            10,622
OP Units Outstanding                           8,738             8,686
Total Common Stock & OP Units Outstanding     21,042            19,308


Course Data                      Feb. 25, 1997    Dec. 31, 1996

Daily Fee Courses                      53               52
Private Courses                        43               43
Resort Courses                         20               19
Total Courses                         116              114


Other Data                                 Year Ended
                                          Dec. 31, 1996

Same Store Rent Growth                          2.9%
Same Store Revenue Growth (Course Level)        6.3%
Same Store Rounds Growth                        0.3%
Golf Course Acquisitions                          35
Aggregate Initial Golf Course Investment    $155,013

-0-

                  NATIONAL GOLF PROPERTIES INC.
                       FFO Reconciliation
         (Dollars in thousands, except per-share data)

                                    Three Months Ended     Year Ended
                                          Dec. 31,          Dec. 31,
                                       1996     1995     1996     1995

Net income                           $ 3,638  $ 2,829  $13,412  $13,286
Minority interest                      2,776    2,393   10,852   11,366
Depreciation & amortization            5,672    4,032   19,124   14,027
Amortization -- restricted stock         321      236    1,089      943
Write off of option payable               --       --       --     (101)
(Gain) loss on asset dispositions     (1,174)      43   (1,199)  (1,893)
Funds from operations -- old
  definition                          11,233    9,533   43,278   37,628
Amortization -- restricted stock        (321)    (236)  (1,089)    (943)
Amortization -- loan costs               (44)     (30)    (147)    (195)
Depreciation -- corporate                (11)     (11)     (47)     (43)
Funds from operations -- new
  definition                         $10,857   $9,256  $41,995  $36,447

Per share:
Funds from operations -- old
  definition                           $0.53    $0.49    $2.16    $1.95
Funds from operations -- new
  definition                           $0.52    $0.48    $2.10    $1.89

-0-

                  NATIONAL GOLF PROPERTIES INC.
                   CONSOLIDATED BALANCE SHEETS
                (In thousands, except share data)

                                               Dec. 31,
                                           1996       1995
                          ASSETS
Property
  Land                                   $63,049    $51,909
  Buildings                              147,678    108,120
  Ground improvements                    263,803    168,872
  Furniture, fixtures and equipment       30,531     26,646
  Construction in progress                10,733      6,521
                                         515,794    362,068
  Less:  accumulated depreciation        (73,031)   (58,787)
  Net property                           442,763    303,281
Cash and cash equivalents                 11,224      7,089
Investments                                  286        809
Mortgage notes receivable                  2,971     27,441
Other assets                              12,701      9,347
Total assets                            $469,945   $347,967

          LIABILITIES AND STOCKHOLDERS' EQUITY

Notes payable                           $229,949   $143,176
Accounts payable and other liabilities     3,134      2,077
Due to affiliates                            641      1,807
Total liabilities                        233,724    147,060
Minority interest                         20,831     23,000
Commitments and contingencies
Stockholders' Equity:
  Preferred stock, $.01 par value,
    5 million shares authorized --
    none issued                               --         --
  Common stock, $.01 par value,
    40 million shares authorized,
    12,303,720 and 10,621,975
    shares issued and outstanding at
    Dec. 31, 1996 and 1995,
    respectively                             123        106
  Additional paid in capital             219,985    181,730
  Accumulated deficit                     (1,360)    (1,360)
  Unamortized restricted stock
    compensation                          (3,358)    (2,569)
  Total stockholders' equity             215,390    177,907
  Total liabilities and stockholders'
    equity                              $469,945   $347,967

-0-

                 NATIONAL GOLF PROPERTIES INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except per-share amounts)

                                           For the year
                                              ended
                                             Dec. 31,
                                    1996       1995      1994
Revenues:
  Rent from affiliates            $57,291    $45,339   $36,637
  Rent                              1,607        592        --
  Gain on sale of property          1,199      1,893        --
    Total revenues                 60,097     47,824    36,637

Expenses:
  General and administrative        4,734      4,258     4,709
  Depreciation and
    amortization                   19,124     14,027    10,413
  Total expenses                   23,858     18,285    15,122
  Operating income                 36,239     29,539    21,515

Other income (expense):
  Interest income from
    affiliates                      1,683      2,884     2,759
  Interest income                     427      1,260       700
  Other income                        238        114       194
  Interest expense                (14,067)    (8,793)   (2,212)

Income before provision for
  taxes and minority interest      24,520     25,004    22,956
Provision for taxes                  (256)      (352)     (368)
Income before minority interest    24,264     24,652    22,588
Income applicable to minority
  interest                        (10,852)   (11,366)  (10,712)
Net income                        $13,412    $13,286   $11,876
Net income per common share       $  1.17    $  1.25   $  1.12
Weighted average number of
  common stock and common
  stock equivalents                11,420     10,643    10,616

-0-

                  NATIONAL GOLF PROPERTIES INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS
             (In thousands, except per-share amounts)

                                        For the quarter
                                         ended Dec. 31,
                                     1996              1995
Revenues:
  Rent from affiliates            $ 15,285          $ 11,903
  Rent                                 646               183
  Gain on sale of property           1,174               (43)
    Total revenues                  17,105            12,043

Expenses:
  General and administrative         1,058               929
  Depreciation and amortization      5,672             4,032
    Total expenses                   6,730             4,961
  Operating income                  10,375             7,082

Other income (expense):
  Interest income from affiliates        1               585
  Interest income                      111               285
  Other income                          74                11
  Interest expense                  (4,094)           (2,615)
Income before provision for
  taxes and minority interest        6,467             5,348

Provision for taxes                    (53)             (125)
Income before minority interest      6,414             5,223
Income applicable to minority
  interest                          (2,776)           (2,393)
Net income                        $  3,638          $  2,830
Net income per common share       $   0.29          $   0.27
Weighted average number of
  common stock and common stock
  equivalents                       12,431            10,668





CONTACT: National Golf Properties Inc., Santa Monica

Edward Edward

killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302]

See : Patricide
 R. Sause/Neil M. Miller, 310/664-4100
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1997, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Feb 25, 1997
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