WASHINGTON, Jan. 27 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today reported fourth quarter 2004 diluted earnings
per share of $0.42 on net income of $26.8 million, compared to diluted
earnings per share of $0.05 on net income of $13.2 million for the fourth
quarter of 2003. For the year ended December 31, 2004, diluted earnings per
share were $1.43 on net income of $93.6 million compared to $0.89 on net
income of $72.9 million for the same period a year ago.
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For the fourth quarter of 2004, diluted funds from operations available to
common shareholders (Diluted FFO) were $33.8 million or $0.62 per share
compared to $36.5 million or $0.62 per share for the fourth quarter of 2003.
Diluted FFO for the twelve months ended December 31, 2004 was $184.9 million
or $3.09 per share as compared to $178.5 million or $3.07 per share for the
same period in 2003.
Fourth quarter 2004 results were impacted by two impairment charges on
disposed real estate which totaled $2.5 million and reduced earnings per share
and Diluted FFO per share for the quarter by $0.05 per share. Fourth quarter
2004 results also include the impact of $4.6 million of prepayment penalties
on the early extinguishment of mortgage debt which reduced earnings per share
and Diluted FFO per share for the quarter by $0.08 per share. Full year 2004
results were similarly impacted.
Fourth quarter 2003 and full year 2003 results were also impacted by
impairment charges on real estate which totaled $4.5 million for the fourth
quarter and $7.3 million for the year. These impairments reduced earnings per
share and Diluted FFO per share for the quarter by $0.09 and $0.08,
respectively, and reduced full year diluted earnings per share and Diluted FFO
per share by $0.14 and $0.12, respectively. Fourth quarter 2003 and full year
2003 results also include a reduction of net earnings available to common
shareholders related to the original issuance costs associated with redeemed
or repurchased preferred stock.
These costs reduced earnings per share and Diluted FFO per share for the
quarter by $0.12 and $0.11, respectively and reduced full year diluted
earnings per share and Diluted FFO per share by $0.15 and $0.14, respectively.
Fourth quarter 2004 and 2004 full year net income also includes gains from
the disposition of real estate of $27.7 million ($0.50 per diluted share) and
$47.5 million ($0.87 per diluted share), respectively. Fourth quarter 2003
and 2003 full year net income includes gains from the disposition of real
estate of $0.8 million ($0.02 per diluted share) and $14.5 million ($0.28 per
diluted share), respectively. These gains had no impact on reported Diluted
FFO per share.
Portfolio Report
CarrAmerica President and COO, Philip L. Hawkins, commented, "Operating
conditions during 2004 showed gradual improvement in all of CarrAmerica's
markets, resulting in increased demand and modestly improving occupancy rates.
With these improving conditions, lease economics are beginning to improve in
some of our markets as well. We expect the real estate recovery to continue
at a similar pace in 2005 with vacancy rates declining and lease economics
gradually improving." Mr. Hawkins continued, "Although the investment climate
remained highly competitive, we believe that the Company was very successful
in meeting its investment goals in 2004, markedly upgrading the quality of our
assets and cash flow."
Occupancy for consolidated stabilized properties was 88.2% at December 31,
2004, up from 87.0% at September 30, 2004 and up from 87.8% at December 31,
2003. Same store property operating income for the fourth quarter of 2004
decreased 2.1% on a GAAP basis over the same period in 2003. Adjusting for
termination fees, same store property operating income for the fourth quarter
of 2004 decreased by 1.8% as compared to the previous year. The average
occupancy rate for same store properties was 88.0% in the fourth quarter, up
from 87.2% at the end of the third quarter. The same store average occupancy
rate for all of 2004 was 88.0%, down from 90.2% for 2003.
For the fourth quarter, rental rates decreased 8.3% on average on the
leases executed during the quarter. Leasing activity has improved, with 1.1
million square feet leased throughout our portfolio in the fourth quarter.
Acquisitions
During the fourth quarter, CarrAmerica completed the acquisition of
Mission Towers, a 12-story, Class A office building in Santa Clara,
California. The building is 100% leased to Sun Microsystems and PMC Sierra
through October 2011. The 282,000 square foot building was purchased for
$129.7 million, of which $51.6 million is attributable to the value of in-
place above-market rents. The building is expected to provide a year one GAAP
return of 6.8%. As a result of the above-market, in-place leases, the current
GAAP returns, which reflect the mark to market of rents, are significantly
less than year one cash yields, which are expected to be approximately 11.1%.
GAAP returns are expected to steadily rise to approximately 10.0% in 2011 as
the amount attributable to the value of above-market rents is amortized.
Also during the fourth quarter, a joint venture in which CarrAmerica is a
20% partner acquired 6836 N. Dallas Parkway, a 32,293 square foot building in
the Legacy submarket of Dallas, for $5.8 million. CarrAmerica expects to
receive a year one and stabilized GAAP return on its investment of 9.4%.
For the full year 2004, CarrAmerica acquired property totaling $464.3
million, including its pro rata share of assets acquired in joint ventures.
Other Investments
During the fourth quarter, CarrAmerica made a $13.7 million mezzanine loan
on two properties in Dallas, Texas.
Dispositions
During the fourth quarter, CarrAmerica sold John Marshall II, a 223,000
square foot office building in Northern Virginia in which it owned a 50
percent interest, for $59.3 million. CarrAmerica recorded a gain of
approximately $20.1 million in connection with the sale.
Also during the fourth quarter, CarrAmerica sold two properties in
Northern California totaling approximately 135,000 square feet for $11.8
million. In connection with these sales, CarrAmerica recognized impairment
charges totaling $2.5 million.
For the full year 2004, including its 50% interest in John Marshall II,
CarrAmerica has completed sales of properties with net proceeds totaling
approximately $254.3 million, and recognized total gains net of impairment
charges of $37.4 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 quarter, a joint venture in which CarrAmerica
owns a 30% interest closed on the sale of approximately 82,000 square feet of
office space in its Terrell Place project in Washington DC for $32.6 million.
CarrAmerica's share of the gain on the sale was approximately $1.7 million.
CarrAmerica is currently marketing for sale CarrAmerica Corporate Center,
an approximately 1 million square foot office project located in Pleasanton,
California. In addition, the Company is marketing two additional assets
totaling approximately 291,000 square feet in Southern California.
CarrAmerica is seeking to consummate these transactions by the end of the
first quarter of 2005, but there can be no assurance that the properties will
be marketed successfully or that, even if marketed successfully, the sales
will be completed in the expected time frame.
Capital Markets
During the fourth quarter, CarrAmerica prepaid approximately $74.5 million
in mortgage debt. The Company incurred $3.0 million in prepayment penalties
to retire this indebtedness, which is included in interest expense in the
Company's financial statements. For the full year 2004, the Company repaid a
total of $107.7 million of fixed rate mortgage debt. In addition, during the
fourth quarter, two joint ventures in which CarrAmerica owns partial
interests, refinanced or prepaid mortgage obligations.
CarrAmerica's share of prepayment penalties associated with the ventures
was $1.6 million and is included as a reduction of equity in earnings of
unconsolidated entities in the Company's financial statements.
CarrAmerica Earnings Estimates
On Friday, January 28, CarrAmerica management will discuss earnings
guidance for 2005. Diluted earnings per share of $0.28 - $0.53 and Diluted
FFO per share of $2.75 - $3.00 for 2005 will be discussed. First quarter 2005
diluted earnings per share and Diluted FFO per share of $0.13 to $0.17 and
$0.73 to $0.77, respectively, will also be discussed. The projections for
2005 are based in part on the following assumptions:
2005
Average Office Portfolio Occupancy 88.0% - 90.0%
Real Estate Service Revenue $17.0 - $20.0 million
General and Administrative Expense $39.0 - $41.0 million
Termination Fees $ 1.0 - $ 2.0 million
Estimates for the first quarter and full year 2005 include a gain on the
sale of a partial interest in the Terrell Place project (see Dispositions
section earlier in this document) but exclude any other potential gains,
losses or asset impairments associated with property dispositions currently
contemplated or otherwise. 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. The 2005 estimates also include the impact of
lost property income of approximately $6.5-$7.0 million associated with the
vacancy of the International Monetary Fund from our International Square
property in Washington, D.C. The Company expects to incur approximately 2-4
months of downtime associated with the commencement of a 394,000 square foot
lease in approximately 80.0% of the vacated space. Our 2005 estimate also
assumes that straight-line rents on in-place leases that expire in 2005 exceed
market rental rates by 8.0% - 12.0% and that, on a weighted average basis,
dispositions will exceed acquisitions by approximately $150.0 million for the
year.
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 February 18,
2005. CarrAmerica's common stock will begin trading ex-dividend on February
16, 2005 and the dividend will be paid on February 28, 2005. 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 18, 2005. The preferred stock will begin
trading ex-dividend on February 16, 2005 and the dividends will be paid on
February 28, 2005.
CarrAmerica's Annual Meeting to be Held April 28, 2005
CarrAmerica also announced that its Annual Meeting of Stockholders will be
held on Thursday, April 28, 2005 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 4, 2005.
CarrAmerica Fourth Quarter Webcast and Conference Call
CarrAmerica will conduct a conference call to discuss 2004 fourth quarter
results on January 28, 2005, 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-
800-946-0705 for U.S. participants and 1-719-457-2637 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 EST on January 28, 2005
through midnight on February 3, 2005 by dialing 1-888-203-1112 for U.S.
callers and 1-719-457-0820 for international callers, passcode 372444.
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 workplace companies by meeting the rapidly changing 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 292 operating office properties, totaling over 26 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 and the accompanying summary financial information,
including statements regarding management's expectations about, among other
things, operating performance and financial condition, 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 properties and our ability to lease vacant space at
favorable rental rates, our ability to obtain debt or equity financing if and
when needed on favorable terms, or at all, possible charges or payments
resulting from our guarantee of certain leases of HQ Global Workplaces, Inc.,
the impact of future acquisitions or dispositions not currently contemplated
or expected, the ability of the general economy to recover timely from
economic downturns or otherwise sustain periods of growth, availability and
creditworthiness of tenants, the availability of financing for both tenants
and the company, adverse changes in the real estate markets including, among
other things, competition with other companies, risks of real estate
acquisition and development (including the failure of pending acquisitions or
dispositions to close in a timely manner, on current terms, or at all, and
pending developments to be completed on time and within budget), actions,
strategies and performance of affiliates that the company may not control or
companies in which the company has made investments, our ability to maintain
our status as a REIT for federal income tax purposes, governmental actions and
initiatives, the ability to obtain insurance at a reasonable cost 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 on
Form 10-K.
CARRAMERICA REALTY CORPORATION
Consolidated Balance Sheets
December 31, December 31,
(In thousands) 2004 2003
(Unaudited)
Assets
Rental property:
Land $779,482 $690,410
Buildings 2,064,678 1,974,913
Tenant improvements 448,515 420,533
Furniture, fixtures and equipment 45,879 48,216
3,338,554 3,134,072
Less: Accumulated depreciation (750,530) (692,901)
Net rental property 2,588,024 2,441,171
Land held for future development or sale 41,676 41,284
Assets related to properties held for sale - 10,626
Cash and cash equivalents 4,735 4,299
Restricted deposits 1,364 2,549
Accounts and notes receivable, net 52,438 17,829
Investments in unconsolidated entities 138,127 137,604
Accrued straight-line rents 84,396 84,552
Tenant leasing costs, net 53,908 51,547
Intangible assets, net 98,354 23,966
Prepaid expenses and other assets, net 18,170 20,591
$3,081,192 $2,836,018
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable, net $1,941,130 $1,727,648
Accounts payable and accrued expenses 107,409 95,586
Rent received in advance and
security deposits 40,304 34,757
2,088,843 1,857,991
Minority interest 65,378 70,456
Stockholders' equity:
Preferred stock 201,250 201,250
Common stock 548 529
Additional paid-in capital 1,025,388 976,644
Cumulative dividends in excess of
net income (300,500) (270,852)
Accumulated other comprehensive
income 285 -
926,971 907,571
Commitments and contingencies
$3,081,192 $2,836,018
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31, December 31,
(In thousands, except per share 2004 2003 2004 2003
amounts) (Unaudited) (Unaudited)
Revenues:
Rental income (1):
Minimum base rent $102,695 $97,263 $395,114 $380,995
Recoveries from tenants 14,566 16,947 55,753 61,985
Parking and other tenant
charges 3,501 3,354 18,126 18,210
Total rental revenue 120,762 117,564 468,993 461,190
Real estate service revenue 6,327 4,786 23,328 24,337
Total operating revenues 127,089 122,350 492,321 485,527
Operating expenses:
Property expenses:
Operating expenses 31,353 28,988 120,294 118,906
Real estate taxes 10,643 11,153 41,360 40,783
General and administrative 10,517 11,796 41,851 42,767
Depreciation and amortization 35,094 31,170 129,721 121,218
Total operating expenses 87,607 83,107 333,226 323,674
Real estate operating
income 39,482 39,243 159,095 161,853
Other (expense) income:
Interest expense (32,440) (26,704) (114,978) (104,492)
Equity in earnings (loss) of
unconsolidated entities (631) 2,077 6,760 7,034
Obligations under lease
guarantees - - - (811)
Impairment loss on
investments - (1,100) - (1,100)
Other income 952 1,033 2,681 1,128
Net other expense (32,119) (24,694) (105,537) (98,241)
Income from continuing
operations before income
taxes, minority interest
and gain on sale of
properties 7,363 14,549 53,558 63,612
Income taxes (207) 33 (342) (402)
Minority interest (5,313) (539) (11,670) (8,924)
Impairment loss on real estate - (1,509) - (4,210)
Gain on sale of properties 27,658 795 27,600 4,160
Income from continuing
operations 29,501 13,329 69,146 54,236
Discontinued operations - Net
operations of sold properties (2,707) (179) 24,441 18,701
Net income 26,794 13,150 93,587 72,937
Less: Dividends on
preferred and restricted
stock and issuance costs
of redeemed preferred
stock (3,971) (10,932) (15,885) (26,532)
Net income available to
common shareholders $22,823 $2,218 $77,702 $46,405
Basic net income per share:
Continuing operations $0.47 $0.06 $0.99 $0.53
Discontinued operations (0.05) (0.01) 0.45 0.36
Net income $0.42 $0.05 $1.44 $0.89
Diluted net income per share:
Continuing operations $0.47 $0.06 $0.98 $0.53
Discontinued operations (0.05) (0.01) 0.45 0.36
Net income $0.42 $0.05 $1.43 $0.89
NOTE: (1) Rental income includes $1,397 and $3,006 of accrued straight
line rents for the three months period ended Dec. 31, 2004 and 2003,
respectively, and $6,149 and $8,935 for the twelve months period ended Dec.
31, 2004 and 2003, respectively.
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Cash Flow
Twelve Months Ended
(In thousands) December 31,
2004 2003
(Unaudited)
Cash flow from operating activities:
Net income $93,587 $72,937
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 135,095 132,995
Minority interest 11,670 8,924
Equity in earnings of
unconsolidated entities (6,760) (7,034)
Gain sale of properties (27,600) (4,160)
Gain on sale of properties -
discontinued operations (19,870) (10,317)
(Gain) loss on sale of
residential property (326) 171
Impairment losses on real estate 2,524 7,255
Impairment loss on investments - 1,100
Obligations under lease guarantees - 811
Provision for uncollectible accounts 1,552 2,608
Stock based compensation 3,986 3,548
Other 3,416 (142)
Change in assets and liabilities:
Decrease in accounts receivable 3,239 7,905
Increase in accrued straight-line rents (6,149) (8,906)
Additions to tenant leasing costs (14,538) (19,434)
Increase in intangible assets and
prepaid expenses and other assets (6,422) (8,934)
Decrease in accounts payable and
accrued expenses (4,961) (4,768)
Increase (decrease) in rent
received in advance and security
deposits 5,787 (1,081)
Total adjustments 80,643 100,541
Net cash provided by operating
activities 174,230 173,478
Cash flows from investing activities:
Rental property additions (10,516) (17,033)
Additions to tenant improvements (48,327) (33,634)
Additions to land held for
development or sale and
construction in progress (3,656) (16,448)
Rental property acquisitions (449,170) (73,133)
Issuance of notes receivable (31,230) (8,009)
Payments on notes receivable - 64
Distributions from unconsolidated
entities 30,446 14,658
Investments in unconsolidated entities (15,294) (28,353)
Acquisition of minority interest (5,392) (2,330)
Decrease in restricted deposits 1,185 1,956
Proceeds from sale of residential
property 2,727 14,164
Proceeds from sales of properties 233,365 52,156
Net cash used in investing
activities (295,862) (95,942)
Cash flows from financing activities:
Repurchase of common stock - (7,858)
Repurchase of preferred stock - (254,518)
Exercises of stock options 43,449 22,170
Proceeds from the sale of preferred
stock - 194,664
Repayment of unsecured notes (150,000) -
Proceeds from the issuance of
unsecured notes, net 419,967 -
Proceeds from mortgages - 3,216
Net borrowings on unsecured credit
facility 51,500 155,500
Net repayments of mortgages and
notes payable (107,886) (56,365)
Dividends and distributions to
minority interests (134,962) (135,284)
Net cash provided by (used in)
financing activities 122,068 (78,475)
Increase (decrease) in
unrestricted cash and cash
equivalents 436 (939)
Cash and cash equivalents, beginning
of the period 4,299 5,238
Cash and cash equivalents, end of the
period $4,735 $4,299
Supplemental disclosure of cash flow
information:
Cash paid for interest (net of
capitalized interest of $457 and
$1,696 for the twelve months ended
Dec. 31, 2004 and 2003,
respectively) $112,088 $104,582
Income tax (refunds) payments, net $(54) $10
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 Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
Net income $26,794 $13,150 $93,587 $72,937
Adjustments:
Minority interest 5,313 539 11,670 8,924
FFO allocable to the minority
Unitholders (3,687) (2,282) (14,400) (15,404)
Depreciation and amortization
- REIT properties 33,359 29,130 122,989 115,263
Depreciation and amortization
- Equity properties 3,817 3,150 15,002 12,378
Depreciation and amortization
- Discontinued operations 120 2,499 5,375 10,792
Minority interests' (non
Unitholders) share of
depreciation, amortization
and net income (266) (279) (1,064) (1,219)
Gain on sale of properties (27,658) (1,077) (47,470) (14,477)
FFO as defined by NAREIT 37,792 44,830 185,689 189,194
Less: Preferred dividends,
dividends on unvested
restricted stock
and preferred stock
redemption premium(3) (3,971) (10,569) (15,167) (26,148)
FFO attributable to common
shareholders 33,821 34,261 170,522 163,046
FFO allocable to the minority
Unitholders - 2,282 14,400 15,404
Diluted FFO available to common
shareholders(1) $33,821 $36,543 $184,922 $178,450
Less: Lease commissions (4,486) (5,770) (14,540) (17,979)
Tenant improvements (12,064) (11,592) (48,327) (33,634)
Building capital additions (4,497) (7,242) (10,612) (17,033)
Above/below market leases 530 (264) (173) (1,028)
Straight line rent (1,397) (3,006) (6,149) (8,935)
Impairment losses 2,524 5,645 2,524 8,355
FFO allocable to minority
Unitholders(1) 3,687 - - -
Funds available for distribution to
common shareholders(2) $18,118 $14,314 $107,645 $108,196
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 On July 31, 2003, the SEC issued a clarification of EITF Topic D-42
which requires us to subtract original issuance costs associated with
redeemed preferred securities from net income available to common
shareholders (and therefore, FFO available to common shareholders).
These amounts include $6,184 for the three months and $8,018 for the
twelve months ended Dec. 31, 2003, of original preferred stock issuance
costs associated with redemptions.
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands, except Three Months Twelve Months
per share amounts) Ended Ended
December 31, December 31,
2004 2003 2004 2003
Diluted net income per common share $0.42 $0.05 $1.43 $0.89
Add: Depreciation and amortization 0.68 0.59 2.40 2.38
Gain on sale of properties (0.50) (0.02) (0.79) (0.25)
Minority interest adjustment 0.02 0.01 0.20 0.26
Adjustment for share difference - (0.01) (0.15) (0.21)
Diluted funds from operations
available to common shareholders $0.62 $0.62 $3.09 $3.07
Diluted funds from operations
available to common shareholders,
excluding
Impairment losses $0.05 $0.08 $0.04 $0.12
Prepayment penalties on debt 0.08 - 0.08 -
HQ lease guarantees - - - 0.01
Preferred stock issuance costs - 0.11 - 0.14
$0.75 $0.81 $3.21 $3.34
Diluted net income per common share,
excluding
Impairment losses $0.05 $0.09 $0.05 $0.14
Prepayment penalties on debt 0.08 - 0.09 -
HQ lease guarantees - - - 0.02
Preferred stock issuance costs - 0.12 - 0.15
$0.55 $0.26 $1.57 $1.20
Weighted average common shares
outstanding:
Diluted net income 54,865 52,394 54,414 52,511
Diluted funds from operations 54,865 58,749 59,858 58,213
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands, Projected Projected
except per share amounts) Three Months Ended Twelve Months Ended
March 31, 2005 December 31, 2005
Projected diluted net income
per common share $0.13 - 0.17 0.28 - 0.53
Add: Projected depreciation
and amortization 0.60 2.39
Projected minority interest 0.04 0.14
Less: Gain on sale of properties (0.03) (0.03)
Projected adjustment for share
difference (0.01) (0.03)
Projected diluted funds from
operations per common share $0.73 - 0.77 2.75 - 3.00
Projected weighted average
common shares outstanding:
Projected diluted net income 55,300 55,700
Projected diluted funds from
operations 60,600 61,000
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 Analyst Contact: Stephen
Walsh, +1-202-729-1764, stephen.walsh@carramerica.com, both of
CarrAmerica Realty Corporation
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