WASHINGTON, Jan. 26 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today reported fourth quarter 2005 diluted earnings
per share of $0.41 on net income of $28.2 million, compared to diluted
earnings per share of $0.42 on net income of $26.8 million for the fourth
quarter of 2004. For the year ended December 31, 2005, diluted earnings per
share, including the impairment charges discussed below, were $2.29 on net
income of $148.7 million compared to $1.43 on net income of $93.6 million a
year ago. Net income for the three and twelve months ended December 31, 2005
includes gains from dispositions of properties of $26.9 million and $130.7
million, respectively. Net income for the three and twelve months ended
December 31, 2004 includes gains from dispositions of properties of $27.7
million and $47.5 million, respectively.
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For the fourth quarter of 2005, diluted funds from operations available to
common shareholders (Diluted FFO), including the impairment charges discussed
below, were $39.4 million or $0.62 per share compared to $33.8 million or
$0.62 per share for the fourth quarter of 2004. Diluted FFO for the year
ended December 31, 2005 was $162.9 million or $2.63 per share as compared to
$184.9 million or $3.09 per share for the same period in 2004. The gains
associated with the disposition of real estate had no impact on reported
Diluted FFO or Diluted FFO per share.
The three and twelve months ended December 31, 2005 include $5.5 million
and $10.4 million, respectively, of impairment losses as compared to $2.5
million in the three and twelve months ended December 31, 2004.
Portfolio Report
CarrAmerica President and COO, Philip L. Hawkins, commented, "The markets
continue to recover in line with our expectations with good leasing activity,
decreasing vacancies and improving rental economics." Mr. Hawkins continued,
"In 2006, we expect to concentrate on continued increased occupancy within our
portfolio and a renewed focus on the creation of new Class A product through
our development team."
Occupancy for consolidated properties was 89.4% at December 31, 2005 as
compared to 88.2% at December 31, 2004. Same store property operating income
for the fourth quarter of 2005 was flat on a GAAP basis over the same period
in 2004 due primarily to higher average occupancies offset by the impact of
rental rates in new leases being substantially lower than rental rates in
expiring leases in many of CarrAmerica's markets. The average occupancy rate
for same store properties was 89.7% in the fourth quarter of 2005, up from
89.0% during the fourth quarter of 2004. The Company has executed leases for
approximately 500,000 square feet of office space for which revenue
recognition has not yet begun and which are not included in its occupancy
statistics as of December 31, 2005.
For the fourth quarter of 2005, rental rates decreased 16.7% on average on
the leases executed during the quarter. The Company leased 500,000 square
feet of office space in the fourth quarter of 2005 versus 1.1 million square
feet for the same period in 2004. For the year ended December 31, 2005,
CarrAmerica leased a total of 2.9 million square feet of office space as
compared to 3 million square feet for the same period in 2004.
Acquisitions
During the fourth quarter, CarrAmerica acquired Tyson's International
Plaza, comprised of two, 10-story Class A office buildings totaling 434,606
square feet in Tysons Corner, Virginia, for $123.0 million. The project is
73% committed, and is expected to provide a year one GAAP return of
approximately 5.4% and a stabilized GAAP return of approximately 7%.
Also during the fourth quarter, CarrAmerica acquired 18911 and 19015 North
Creek Plaza in Bothell, Washington for $45.4 million. The project is
comprised of two, Class A office buildings totaling 193,454 square feet. The
project is 93% committed, and is expected to provide a year one GAAP return of
approximately 6% and a stabilized GAAP return of approximately 7.2%.
For the full year 2005, CarrAmerica acquired property totaling
approximately $429.0 million, including its pro rata share of assets acquired
in joint ventures.
Subsequent to the end of the fourth quarter, CarrAmerica closed on the
acquisition of the Casey Family Building, a 77,759-square-foot office
building, and adjacent land parcels expected to support the additional
development of approximately 600,000 square feet of office and retail space in
Seattle, Washington for $52.0 million. The Casey Family building, which was
acquired for $22.0 million, is 100% leased, and is expected to provide a year
one GAAP and stabilized GAAP return of approximately 7.6%. The development of
the adjacent land parcels is expected to occur over a three to five year
period, and to provide a stabilized GAAP return approximately 100-200 basis
points higher than that of the Casey Family Building.
Also subsequent to the end of the fourth quarter, CarrAmerica closed on
the acquisition of 3553 North First Street in San Jose, California, an
85,585-square-foot office building, for $10.3 million. The property is
expected to provide a year one GAAP return of approximately 2.2%, and a
stabilized GAAP return of approximately 9.3%. These expected returns reflect
a four-month leaseback to NetIQ and CarrAmerica's estimates as to the leasing
of the building thereafter.
Dispositions
During the fourth quarter, CarrAmerica completed the following property
sales:
* Six buildings totaling 166,928 square feet in San Jose, California for
$19.2 million with a gain of $3.0 million.
* One building totaling 92,000 square feet in Phoenix, Arizona for $12.0
million with no gain or loss. CarrAmerica had previously recognized an
impairment loss of $0.2 million associated with the sale of this
building.
* One building totaling 145,444 square feet in Burbank, California for
$42.8 million with a gain of $15.7 million. The building was 36% leased
at the time of the sale.
* Four buildings totaling 533,371 square feet in Dallas, Texas for $43.0
million with a $1.0 million gain. CarrAmerica had previously recognized
impairment losses of approximately $5.8 million associated with the sale
of these buildings.
Also during the fourth quarter, a joint venture in which CarrAmerica is a
20% partner sold 300 W. 6th Street, a 428,000-square-foot building in Austin,
Texas for $131.7 million. Net proceeds to CarrAmerica after repayment of
property level debt were approximately $16.6 million, and CarrAmerica realized
a gain of approximately $7.7 million net of $4.0 million of tax in connection
with the sale.
For the full year 2005, CarrAmerica sold properties or interests in
properties totaling approximately $477.0 million, and recognized gains net of
impairment charges of $120.3 million. Under the NAREIT definition of FFO,
gains on property sales are excluded from FFO but impairment charges reduce
Diluted FFO.
Subsequent to the end of the fourth quarter, CarrAmerica sold a
258,058-square-foot building in Reston, Virginia for $51.9 million with a
gain of approximately $17.7 million. The building was approximately 17%
leased at the time of the sale.
In the fourth quarter, CarrAmerica announced its plans to market its
wholly-owned Denver and Chicago properties (with the exception of One Parkway
North in Chicago) for sale and expects to reinvest those proceeds into office
properties in CarrAmerica's other markets. The Company expects to begin
marketing those assets in the first quarter of 2006. There can be no
assurance that these dispositions will be consummated on favorable terms, if
at all.
Development
CarrAmerica's current development pipeline includes one project under
construction in the Legacy submarket of Dallas. The project, Three Legacy
Town Center, is approximately 154,000 square feet with a projected total
project cost of $25.0 million and a year one stabilized GAAP return of 9.3%.
The project is a joint venture of CarrAmerica and institutional investors
advised by JPMorgan Asset Management. Completion is scheduled for June 2006.
In addition, CarrAmerica's development pipeline for 2006 is expected to
include commitments for $300 to $500 million in new, wholly owned and joint
venture development projects, of which CarrAmerica's share is expected to be
$200 to $300 million. This includes the first phase of the recently announced
Casey Project in the South Lake Union submarket of Seattle, which, when fully
built out, will include approximately 600,000 square feet of office and retail
space. We also anticipate that the 2006 pipeline will include an assemblage
in Washington, D.C. at 901 K Street, NW, to include the development of a
200,000-square-foot, Class A office building and restoration of the historic
Mt. Vernon United Methodist Church, with total project costs projected to be
approximately $104.0 million. Both of these projects are scheduled for
construction commencement in late 2006 or early 2007. We also expect to begin
the development of additional projects (including projects in joint ventures)
in San Diego, Austin, Salt Lake City, and Seattle.
Capital Markets
In the fourth quarter, CarrAmerica issued an aggregate of $250.0 million
principal amount of senior unsecured notes that bear interest at 5.50% and
mature on December 15, 2010. In addition, the company repaid $19.0 million in
mortgage indebtedness and $15.4 million of notes payable.
CarrAmerica's Annual Meeting to be Held on April 27, 2006
CarrAmerica also announced that its Annual Meeting of Stockholders will be
held on Thursday, April 27, 2006 at the Willard Inter-Continental Hotel in
Washington, D.C., commencing at 9:30 a.m. ET. The record date for
determination of the right to vote at the Annual Meeting of Stockholders is
March 3, 2006.
CarrAmerica Earnings Estimates
On Friday, January 27, CarrAmerica management will discuss earnings
guidance for 2006. Diluted earnings per share of $0.25 - $0.43 and Diluted
FFO per share of $2.52 - $2.70 will be discussed. First quarter 2006 diluted
earnings per share and Diluted FFO per share of $0.28 - $0.34 and $0.62 -
$0.68, respectively, will also be discussed. The projections for 2006 are
based in part on the following assumptions:
2006
Average Office Portfolio Occupancy 91.0% - 93.0%
Real Estate Service Revenue $22.0 - $24.0 million
General and Administrative Expense $42.0 - $44.0 million
Termination Fees $1.0 - $3.0 million
Estimates for 2006 include gains on the sale of property already completed
(approximately $17.7 million) and previously discussed above but exclude any
other potential gains, losses or asset impairments associated with property
dispositions currently in process, contemplated or otherwise, including any
potential gains or losses or asset impairments that may in the future be
recognized as a result of the sale of some or all of CarrAmerica's properties
located in Chicago and Denver. Any gains or losses on the sales of real
estate will have an impact on net income, which may be material, but will not
have an impact on FFO, since those amounts are not added back in the
calculation of FFO. Any impairments of real estate will negatively impact
both net income and FFO, which may be material.
CarrAmerica's 2006 estimate also assumes that straight-line rents on in-
place leases that expire in 2006 exceed market rental rates by 10.0 % - 12.0%.
For 2006, on a weighted basis, building acquisitions are expected to
approximately equal dispositions.
CarrAmerica Announces Fourth Quarter Dividend
The Board of Directors of CarrAmerica today declared a fourth quarter
dividend for its common stock of $0.50 per share. The dividend will be
payable to shareholders of record as of the close of business on February 17,
2006. CarrAmerica's common stock will begin trading ex-dividend on February
15, 2006 and the dividend will be paid on February 28, 2006. The Company also
declared a dividend on its Series E preferred stock. The Series E Cumulative
Redeemable preferred stock dividend is $.46875 per share. The Series E
preferred stock dividends are payable to shareholders of record as of the
close of business on February 17, 2006. The preferred stock will begin
trading ex-dividend on February 15, 2006 and the dividends will be paid on
February 28, 2006.
Solely for purposes of satisfying U.S. federal income tax withholding
obligations under section 1.1445-8 of the federal income tax regulations with
respect to payments to certain affected non-U.S. stockholders, the Company
will characterize 100% of each of the fourth quarter dividends described above
paid to certain affected non-U.S. stockholders as a capital gain dividend to
reflect the taxable composition of its aggregate dividend payment to
stockholders in 2005.
Accordingly, the Company will characterize as a capital gain dividend
$0.50 per share of the dividend for its common stock and $0.46875 per share of
the dividend for its Series E preferred stock. This characterization is
relevant only for purposes of withholding on payments to certain affected
foreign stockholders and has no effects on U.S. stockholders.
CarrAmerica Fourth Quarter Webcast and Conference Call
CarrAmerica will conduct a conference call to discuss 2005 fourth quarter
results on January 27, 2006, at 11:00 am ET. A live webcast of the call will
be available through a link at CarrAmerica's web site,
http://www.carramerica.com. The phone number for the conference call is
1-800-475-3716 for U.S. participants and 1-719-457-2728 for international
participants. The call is open to all interested persons. A taped replay of
the conference call can be accessed from 2:00 PM ET on January 27, 2006
through midnight on February 10, 2006 by dialing 1-888-203-1112 for U.S.
callers and 1-719-457-0820 for international callers, passcode 9698240.
A copy of supplemental material on the Company's fourth quarter operations
is available on the Company's web site, http://www.carramerica.com, or by
request from:
Stephen Walsh
CarrAmerica Realty Corporation
1850 K Street, NW, Suite 500
Washington, D.C. 20006
(Telephone) 202-729-1764
E-mail: stephen.walsh@carramerica.com
CarrAmerica owns, develops and operates office properties in 12 markets
throughout the United States. The company has become one of America's leading
office companies by meeting the needs of its customers with superior service,
a large portfolio of quality office properties and extraordinary development
capabilities. Currently, CarrAmerica and its affiliates own, directly or
through joint ventures, interests in a portfolio of 285 operating office
properties, totaling approximately 26.3 million square feet. CarrAmerica's
markets include Austin, Chicago, Dallas, Denver, Los Angeles, Orange County,
Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle and
metropolitan Washington, D.C. For additional information on CarrAmerica,
including space availability, visit our web site at
http://www.carramerica.com.
Estimates of Diluted FFO and earnings per share and certain other
statements in this release, including management's expectations about, among
other things, operating performance and financial conditions, may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance, dividends, achievements or
transactions of the company and its affiliates or industry results to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
factors include, among others, the following: national and local economic,
business and real estate conditions that will, among other things, affect
demand for office space, the extent, strength and duration of any economic
recovery, including the effect on demand for office space and the creation of
new office development, availability and creditworthiness of tenants, the
level of lease rents, and the availability of financing for both tenants and
CarrAmerica; adverse changes in real estate markets, including, among other
things, the extent of tenant bankruptcies, financial difficulties and
defaults, the extent of future demand for office space in CarrAmerica's core
markets and barriers to entry into markets which we may seek to enter in the
future, the extent of the decreases in rental rates, our CarrAmerica's ability
to identify and consummate attractive acquisitions on favorable terms,
CarrAmerica's ability to consummate any planned dispositions in a timely
manner and on acceptable terms, CarrAmerica's ability to successfully reinvest
the proceeds from dispositions in other properties or markets with improved
returns, CarrAmerica's ability to complete development projects on time and
within budget and CarrAmerica's ability to stabilize such projects, and
changes in operating costs, including real estate taxes, utilities, insurance
and security costs; actions, strategies and performance of affiliates that we
may not control or companies in which we have made investments; ability to
obtain insurance at a reasonable cost; ability to maintain CarrAmerica's
status as a REIT for federal and state income tax purposes; ability to raise
capital; effect of any terrorist activity or other heightened geopolitical
crisis; governmental actions and initiatives; and environmental/safety
requirements. For a further discussion of these and other factors that could
impact the company's future results, performance, achievements or
transactions, see the documents filed by the company from time to time with
the Securities and Exchange Commission, and in particular the section titled,
"The Company -- Risk Factors" in the company's Annual Report or Form 10-K.
CARRAMERICA REALTY CORPORATION
Consolidated Balance Sheets
December 31, December 31,
(In thousands) 2005 2004
(Unaudited)
Assets
Rental property:
Land $761,901 $779,482
Buildings 2,045,146 2,064,678
Tenant improvements 469,633 448,515
Furniture, fixtures and equipment 49,007 45,879
3,325,687 3,338,554
Less: Accumulated depreciation (755,647) (750,530)
Net rental property 2,570,040 2,588,024
Land held for future development or sale 40,141 41,676
Assets held for sale 33,840 -
Cash and cash equivalents 15,811 4,735
Restricted deposits 4,472 1,364
Accounts and notes receivable, net 61,358 52,438
Investments in unconsolidated entities 130,384 138,127
Accrued straight-line rents 88,162 84,396
Tenant leasing costs, net 60,922 53,908
Intangible assets, net 124,554 98,354
Prepaid expenses and other assets 22,488 18,170
$3,152,172 $3,081,192
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable, net $1,875,706 $1,941,130
Accounts payable and accrued
expenses 110,953 107,409
Rent received in advance and
security deposits 32,534 40,304
2,019,193 2,088,843
Minority interest 58,470 65,378
Stockholders' equity:
Preferred stock 201,250 201,250
Common stock 587 548
Additional paid-in capital 1,153,045 1,025,388
Cumulative dividends in excess of
net income (280,708) (300,500)
Accumulated other comprehensive
income 335 285
1,074,509 926,971
Commitments and contingencies
$3,152,172 $3,081,192
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31, December 31,
(In thousands, except per share
amounts) 2005 2004 2005 2004
(Unaudited) (Unaudited)
Revenues:
Rental income (1):
Minimum base rent $97,059 $95,471 $374,827 $364,070
Recoveries from tenants 16,139 14,566 58,667 55,753
Parking and other tenant charges 2,935 3,501 15,398 18,126
Total rental revenue 116,133 113,538 448,892 437,949
Real estate service revenue 7,813 6,327 23,736 23,328
Total operating revenues 123,946 119,865 472,628 461,277
Operating expenses:
Property expenses:
Operating expenses 30,295 29,688 116,954 113,279
Real estate taxes 10,288 10,166 40,487 39,245
General and administrative 10,829 10,517 41,878 41,851
Depreciation and amortization 35,514 32,625 133,923 119,916
Total operating expenses 86,926 82,996 333,242 314,291
Real estate operating income 37,020 36,869 139,386 146,986
Other (expense) income:
Interest expense (30,997) (32,440) (117,743) (114,978)
Equity in earnings of
unconsolidated entities 803 (631) 3,554 6,760
Interest and other income 2,065 952 7,086 2,681
Net other expense (28,129) (32,119) (107,103) (105,537)
Income from continuing
operations before income
taxes, minority interest,
impairment losses on real
estates and gain on sale
of properties 8,891 4,750 32,283 41,449
Income taxes 103 (207) (627) (342)
Minority interest (2,609) (5,313) (9,773) (11,670)
Impairment loss on real estate (3,700) - (3,700) -
Gain on sale of properties 7,738 27,658 96,524 27,600
Income from continuing
operations 10,423 26,888 114,707 57,037
Discontinued operations - Net
operations of sold properties 17,759 (94) 34,012 36,550
Net income 28,182 26,794 148,719 93,587
Less: Dividends on preferred
and restricted stock (4,027) (3,971) (16,111) (15,885)
Net income available to common
shareholders $24,155 $22,823 $132,608 $77,702
Basic net income per share:
Continuing operations $0.12 $0.42 $1.75 $0.77
Discontinued operations 0.30 - 0.61 0.67
Net income $0.42 $0.42 $2.36 $1.44
Diluted net income per share:
Continuing operations $0.11 $0.42 $1.74 $0.76
Discontinued operations 0.30 - 0.55 0.67
Net income $0.41 $0.42 $2.29 $1.43
NOTE: (1) Rental income includes $7,082 and $1,397 of accrued straight
line rents for the three months ended Dec. 31, 2005 and 2004,
respectively, and $13,056 and $6,149 for the twelve months ended Dec. 31,
2005 and 2004, respectively.
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Cash Flow
Twelve Months Ended
(In thousands) December 31,
2005 2004
(Unaudited)
Cash flow from operating activities:
Net income $148,719 $93,587
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 141,412 135,095
Minority interest 9,773 11,670
Equity in earnings of unconsolidated
entities (3,554) (6,760)
Operating distributions from
unconsolidated entities 7,295 5,705
Gain on sale of properties (96,524) (27,600)
Gain on sale of properties -
discontinued operations (34,141) (19,870)
Gain on sale of residential property (375) (326)
Impairment losses on real estate 10,359 2,524
Lease intangibles amortization 10,304 (175)
Amortization of deferred
financing costs 4,634 5,083
(Recovery of) provision for
uncollectible accounts (713) 1,552
Stock based compensation 5,634 4,138
Other 2,824 (1,688)
Change in assets and liabilities:
(Increase) decrease in accounts
receivable (896) 3,239
Increase in accrued straight-line
rents (13,405) (6,149)
Additions to tenant leasing costs (17,006) (14,538)
Increase in intangible assets (23,909) (5,014)
Increase in prepaid expenses and
other assets (7,955) (1,364)
Decrease in accounts payable and
accrued expenses (17,030) (4,961)
(Decrease) increase in rent
received in advance and security
deposits (10,460) 5,787
Total adjustments (33,733) 86,348
Net cash provided by operating
activities 114,986 179,935
Cash flows from investing activities:
Rental property additions (13,380) (10,516)
Additions to tenant improvements (53,802) (48,327)
Additions to land held for
development or sale and
construction in progress (2,445) (3,656)
Rental property acquisitions and
deposits (393,912) (449,170)
Issuance of notes receivable (12,615) (31,230)
Payments on notes receivable 6,448 -
Distributions from unconsolidated
entities 23,709 24,741
Investments in unconsolidated
entities (16,073) (15,294)
Acquisition of minority interest (6,559) (5,392)
Increase in restricted deposits (828) 1,185
Proceeds from sale of residential
property 1,663 2,727
Proceeds from sales of properties 449,472 233,365
Net cash used in investing
activities (18,322) (301,567)
Cash flows from financing activities:
Issuance of common stock 99,408 -
Exercises of stock options 23,349 43,449
Repayment of unsecured notes (100,000) (150,000)
Termination of interest rate swap
agreement (1,996) -
Proceeds from the issuance of
unsecured notes, net 247,470 419,967
Net (repayments) borrowings on
unsecured credit facility (175,000) 51,500
Net repayments of mortgages and
notes payable (38,822) (107,886)
Dividends and distributions to
minority interests (139,997) (134,962)
Net cash (used in) provided by
financing activities (85,588) 122,068
Increase in cash and cash
equivalents 11,076 436
Cash and cash equivalents, beginning
of the period 4,735 4,299
Cash and cash equivalents, end of the
period $15,811 $4,735
Supplemental disclosure of cash flow
information:
Cash paid for interest (net of
capitalized interest of $76 and
$457 for the twelve months ended
December 31, 2005 and 2004,
respectively) $119,102 $112,088
Income tax payments $4,787 $(54)
CARRAMERICA REALTY CORPORATION
Funds From Operations
Funds from operations ("FFO") and funds available for distribution ("FAD")
are used as measures of operating performance for real estate companies. We
provide FFO and FAD as a supplement to net income calculated in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). Although FFO and FAD are widely used measures of operating
performance for equity REITs, they do not represent net income calculated in
accordance with GAAP. As such, they should not be considered an alternative to
net income as an indication of our operating performance. In addition, FFO or
FAD does not represent cash generated from operating activities in accordance
with GAAP, nor do they represent cash available to pay distributions and
should not be considered as an alternative to cash flow from operating
activities, determined in accordance with GAAP, as a measure of our liquidity,
nor are they indicative of funds available to fund our cash needs, including
our ability to make cash distributions. The National Association of Real
Estate Investment Trusts (NAREIT) defines FFO as net income (computed in
accordance GAAP), excluding gains (losses) on sales of property, plus
depreciation and amortization of assets uniquely significant to the real
estate industry and after adjustments for unconsolidated partnerships and
joint ventures. Adjustments for unconsolidated partnerships and joint
ventures are calculated to reflect FFO on the same basis.
We believe that FFO and FAD are helpful to investors as a measure of our
performance because they exclude various items included in net income that do
not relate to or are not indicative of our operating performance, such as
gains and losses on sales of real estate and real estate related depreciation
and amortization, which can make periodic analyses of operating performance
more difficult to compare. FAD deducts various capital items and non-cash
revenue from diluted FFO available to common shareholders. Our management
believes, however, that FFO and FAD, by excluding such items, which can vary
among owners of identical assets in similar condition based on historical cost
accounting and useful life estimates, can help compare the operating
performance of a company's real estate between periods or as compared to
different companies. Our FFO or FAD may not be comparable to FFO or FAD
reported by other REITs. These REITs may not define FFO in accordance with
the current NAREIT definition or may interpret the current NAREIT definition
differently than us. They may include or exclude items which we include or
exclude from FAD.
(Unaudited and in thousands) Three Months Ended
December 31,
2005 2004
Net income $28,182 $26,794
Adjustments: Minority interest 2,609 5,313
FFO allocable to the
minority Unitholders (2,729) (3,687)
Depreciation and
amortization - Consolidated
properties 33,756 30,890
Depreciation and
amortization -
Unconsolidated properties 4,506 3,817
Depreciation and
amortization - Discontinued
operations 737 2,589
Amortization - Allowances
for tenant owned
improvements 727 -
Minority interests' (non
Unitholders) share of
depreciation, amortization
and net income (194) (266)
(Gain) loss on sale of
properties (26,939) (27,658)
FFO as defined by NAREIT 40,655 37,792
Less: Preferred dividends and
dividends on unvested
restricted stock (4,027) (3,971)
FFO attributable to common shareholders 36,628 33,821
FFO allocable to the minority
Unitholders 2,729 -
Diluted FFO available to common
shareholders(1) $39,357 $33,821
Less: Lease commissions (4,088) (4,486)
Lease incentives and
allowances for tenant owned
improvements (19,882) (1,277)
Tenant improvements (18,115) (12,064)
Building capital additions (5,968) (4,497)
Lease intangible
amortization(3) 2,453 530
Impairment losses 5,500 2,524
Straight line rent (7,082) (1,397)
FFO allocable to the
minority Unitholders - 3,687
Funds available for distribution to
common shareholders(2) $(7,825) $16,841
(Unaudited and in thousands) Twelve Months Ended
December 31,
2005 2004
Net income $148,719 $93,587
Adjustments: Minority interest 9,773 11,670
FFO allocable to the
minority Unitholders (12,982) (14,400)
Depreciation and
amortization - Consolidated
properties 126,681 122,989
Depreciation and
amortization -
Unconsolidated properties 16,821 15,002
Depreciation and
amortization - Discontinued
operations 7,488 5,375
Amortization - Allowances
for tenant owned
improvements 1,178 -
Minority interests' (non
Unitholders) share of
depreciation, amortization
and net income (998) (1,064)
(Gain) loss on sale of
properties (130,665) (47,470)
FFO as defined by NAREIT 166,015 185,689
Less: Preferred dividends and
dividends on unvested
restricted stock (16,111) (15,167)
FFO attributable to common
shareholders 149,904 170,522
FFO allocable to the minority
Unitholders 12,982 14,400
Diluted FFO available to common
shareholders(1) $162,886 $184,922
Less: Lease commissions (17,007) (14,540)
Lease incentives and
allowances for tenant owned
improvements (23,081) (3,704)
Tenant improvements (42,704) (48,327)
Building capital additions (13,607) (10,612)
Lease intangible
amortization(3) 9,129 (173)
Impairment losses 10,359 2,524
Straight line rent (13,055) (6,149)
FFO allocable to the
minority Unitholders - -
Funds available for distribution to
common shareholders(2) $72,920 $103,941
(1) Diluted funds from operations is computed as FFO attributable to
common shareholders adjusted to reflect all operating partnership
units as if they were converted to common shares for any period in
which they are not antidilutive.
(2) Adjustments to arrive at FAD do not include amounts associated with
properties in unconsolidated entities.
(3) Amortization associated with above/below market leases and lease
incentives.
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands, except
per share amounts) Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Diluted net income per common share $0.41 $0.42 $2.29 $1.43
Add: Depreciation and amortization 0.62 0.68 2.46 2.40
Gain on sale of properties (0.42) (0.50) (2.11) (0.79)
Minority interest adjustment 0.04 0.02 (0.01) 0.20
Adjustment for share difference (0.03) - - (0.15)
Diluted funds from operations
available to common shareholders $0.62 $0.62 $2.63 $3.09
Weighted average common shares
outstanding:
Diluted net income 58,065 54,865 61,848 54,414
Diluted funds from operations 63,621 54,865 61,848 59,858
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands,
except per share amounts) Projected Projected
Three Months Ended Twelve Months Ended
March 31, 2006 December 31, 2006
Projected diluted net income per
common share $0.28 - 0.34 $0.25 - 0.43
Add: Projected depreciation
and amortization 0.59 2.40
Projected minority interest 0.05 0.13
Projected amortization of
tenant owned improvement
allowances 0.01 0.04
Less: Gain on sale of properties (0.28) (0.28)
Projected adjustment for share
difference (0.03) (0.02)
Projected diluted funds from
operations per common share $0.62 - 0.68 $2.52 - 2.70
Projected weighted average common
shares outstanding:
Projected diluted net income 58,700 59,100
Projected diluted funds from
operations 63,800 64,200
SOURCE CarrAmerica Realty Corporation
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Related links:
http://www.carramerica.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
CONTACT:
Media: Karen Widmayer, +1-202-729-1789,
karen.widmayer@carramerica.com, or Analysts: Stephen Walsh:
+1-202-729-1764, stephen.walsh@carramerica.com, both of
CarrAmerica Realty Corporation
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