WASHINGTON, Feb. 5 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today reported fourth quarter 2003 diluted earnings
per share of $0.05 on net income of $13.2 million, compared to diluted
earnings per share of $0.34 on net income of $23.5 million for the fourth
quarter of 2002. For the year ended December 31, 2003, diluted earnings per
share were $0.89 on net income of $72.9 million, compared to diluted earnings
per share of $1.39 on net income of $109.3 million for the year ended December
31, 2002.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO )
For the fourth quarter of 2003, diluted funds from operations available to
common shareholders (Diluted FFO) were $36.5 million or $0.62 per share
compared to $50.5 million or $0.86 per share for the fourth quarter of 2002.
Diluted FFO for the year ended December 31, 2003 was $178.5 million or $3.07
per share, compared to $189.8 million or $3.20 per share in 2002. As a result
of recent changes to the definition of FFO by NAREIT and a clarification of an
accounting standard by the Securities & Exchange Commission (SEC), Diluted FFO
is now reduced by impairment losses on real estate and original issuance costs
associated with the redemption of preferred stock. Excluding the impairment
losses on real estate, the impact of preferred stock redemptions (which are
more fully described below), and the impact of the HQ Global Workplaces, Inc.
(HQ Global) lease guarantee charges, Diluted FFO per share for the fourth
quarter of 2003 would have been $0.81 versus $0.88 in 2002 and for year ended
December 31, 2003 would have been $3.34 versus $3.45 in 2002.
In the third quarter of 2003, NAREIT, in response to comments from the
SEC, revised its definition of FFO to include impairment charges on real
estate. Also in the third quarter of 2003, the SEC issued a clarification of
Emerging Issues Task Force Topic D-42 which provides that in calculating
earnings per share (and therefore Diluted FFO per share), net earnings
available to common shareholders (or Diluted FFO) must be reduced by the
original issuance costs associated with redeemed or repurchased preferred
stock.
The impact of these changes and our previously discussed HQ lease
guarantee charges is as follows:
Three Months Ended Twelve Months Ended
(In millions, except per Dec. 31, Dec. 31, Dec. 31, Dec. 31,
share amounts) 2003 2002 2003 2002
Impact on Diluted FFO/Net
Income:
Impairment losses $(4.6) $(1.2) $(7.3) $(2.5)
HQ lease guarantees - - $(0.8) $(8.7)
Preferred stock
issuance costs $(6.2) $(0.2) $(8.0) $(4.6)
Impact on Diluted EPS:
Impairment losses $(0.09) $(0.02) $(0.13) $(0.05)
HQ lease guarantees - - $(0.02) $(0.17)
Preferred stock
issuance costs $(0.12) - $(0.15) $(0.08)
Impact on Diluted FFO
per share:
Impairment losses $(0.08) $(0.02) $(0.12) $(0.04)
HQ lease guarantees - - $(0.01) $(0.14)
Preferred stock
issuance costs $(0.11) - $(0.14) $(0.07)
(1) Preferred stock issuance costs are not included in the calculation of
net income but are subtracted from net income to arrive at net income
available to common shareholders.
Portfolio Report
CarrAmerica President and COO, Philip L. Hawkins, said, "CarrAmerica's
markets continue to experience a highly competitive leasing environment but
with leasing activity improving, vacancy rates are beginning a slow decline in
most of our markets." Mr. Hawkins continued, "With the gradual market
improvement, we believe that rental economics have begun to stabilize."
Occupancy for stabilized properties was 87.8% at December 31, 2003, down
from 88.5% at September 30, 2003 and down from 92.3% at December 31, 2002.
Same store property operating income for the fourth quarter of 2003 decreased
8.5% on a GAAP basis over the same period in 2002. Adjusting for termination
fees, same store property operating income for the fourth quarter of 2003
decreased by 7.5%. The average occupancy rate for same store properties was
88.0% in the fourth quarter of 2003 as compared to 92.2% for fourth quarter
2002.
Rental rates decreased 12.3% on average on the rolling leases executed
during the twelve-month period ended December 31, 2003.
For the fourth quarter, rental rates decreased 18.9% on average on the
rolling leases executed during the quarter.
Acquisitions
During the fourth quarter, CarrAmerica completed the acquisition of 1888
Century Park East in a joint venture with Beacon Capital Partners, LLC. In
addition to its 35% ownership position in the project, CarrAmerica will be
providing property management services for the building. The joint venture
paid $119 million for the 474,973 square foot, 21-story, office building
located in Los Angeles' Century City submarket.
Also during the fourth quarter, CarrAmerica acquired the remaining 50%
interest in 1717 Pennsylvania Avenue in Washington, D.C. from its partner for
$34.0 million, including the assumption of approximately $12.0 million in
existing mortgage debt. This purchase brings CarrAmerica's interest in the
property to 100%.
During 2003, CarrAmerica made investments in four buildings, two through
joint ventures, with a total value of $429.0 million. CarrAmerica's initial
investment in these assets, including its pro-rata share of debt, was
approximately $164.9 million.
Dispositions
During the fourth quarter, CarrAmerica closed on the sale of a 95,000
square foot office building in Atlanta for $7.2 million, with a gain of
approximately $0.3 million. Also during the fourth quarter, the company sold
its remaining land in Boca Raton, Florida for $6.3 million, with a $0.1
million gain.
During 2003, the company sold five office buildings for an aggregate of
$46.5 million with a total gain of $14.4 million. In the second quarter of
2003, the company recorded an impairment loss of $2.7 million on one of the
sold properties.
The company also announced plans to sell its Tower of the Hills property
in Austin, Texas for approximately $11.0 million. The company recorded an
impairment loss in the fourth quarter of 2003 of $3.0 million associated with
its expected sale in 2004. The sale is expected to close in the first quarter
of 2004 and is subject to customary closing conditions.
In the fourth quarter, the company also announced plans to market its
Atlanta, Georgia and Portland, Oregon office portfolios for sale and expects
to reinvest the proceeds in office properties in CarrAmerica's other markets.
The company expects to begin marketing the properties later in the first
quarter of 2004. In connection with these dispositions, the company expects
to realize a net gain on an aggregate basis.
Development Update
CarrAmerica owns a 30% interest in a 476,000 square foot office
development, Terrell Place, in Washington, D.C. The total cost of this
project, which was substantially completed in the fourth quarter of 2003, is
expected to be $159.0 million, of which $133.6 million had been invested as of
December 31, 2003. CarrAmerica's share of the total project costs for this
development is expected to be approximately $47.7 million, of which $40.1
million had been expended as of December 31, 2003. This project is currently
54.1% leased or committed, including a 243,791 square foot lease with the law
firm of Venable LLP. The stabilized year-one unleveraged return on
CarrAmerica's invested capital (exclusive of fees) is expected to be
approximately 10.5%.
CarrAmerica has one residential condominium project under construction
with expected total project costs of $20.4 million, of which $17.4 million had
been invested as of December 31, 2003. The project is located adjacent to the
Terrell Place project in Washington, D.C. Most of the 29 residential
condominium units have been sold.Also in the fourth quarter, CarrAmerica
announced that the law firm of Alston & Bird LLP signed a 118,849 square foot
lease in The Atlantic Building, a 290,000 square foot office and retail
project in Washington, D.C. CarrAmerica is providing development management
and leasing and property management services as well as $21.9 million in
mezzanine financing for the project. Construction of the project commenced in
January 2004.
Corporate Restructuring
In December 2003, CarrAmerica's Board of Directors approved a plan to
restructure the manner in which we hold our assets, by converting to what is
commonly referred to as an umbrella partnership REIT, or UPREIT structure. To
effect the UPREIT restructuring, we intend to form a new wholly-owned
partnership, CarrAmerica Realty Operating Partnership, L.P. (OP), to which
CarrAmerica Realty Corporation will contribute substantially all of its assets
and liabilities, including the assumption of the obligations under our
unsecured credit facility and our senior unsecured notes, in exchange for the
general partnership interest and units of limited partnership in the OP. We
are currently seeking, and the UPREIT restructuring is subject to, the
necessary consents from our lenders, joint venture partners and others to
undertake the UPREIT restructuring. There can be no assurance that such
consents will be obtained or that the UPREIT restructuring will be
consummated. We do not expect that the UPREIT restructuring will require
shareholder approval or the consent of any of our public bondholders.
The company is undertaking the UPREIT restructuring to enable us to better
compete with other office REITs, many of which are structured as UPREITs, for
the acquisition of properties from tax-motivated sellers. As an UPREIT, we
anticipate that the OP will be able to issue units of limited partnership
interest in the OP to tax-motivated sellers who contribute properties to the
OP, thereby enabling those sellers to realize certain tax benefits that would
be unavailable if we purchased properties directly for cash.
Capital Markets Transactions
The company completed the redemption of all of the company's remaining
outstanding Series B Cumulative Redeemable Preferred Stock and its Series C
and Series D Depositary Shares representing its Series C and Series D
Cumulative Redeemable Preferred Stock, respectively. The redemption date was
October 12, 2003 for all outstanding shares. The total cost to the company of
the redemptions was approximately $196.3 million, excluding any accrued but
unpaid dividends on the redeemed shares through the date of redemption. In
connection with the redemption, the company reduced its net earnings available
to common stockholders by $6.2 million in the fourth quarter for the original
issuance costs related to the redeemed shares.
CarrAmerica Earnings Estimates
On Friday, February 6, CarrAmerica management will discuss earnings
guidance for 2004. Based on management's view of current market conditions
and certain assumptions with regard to rental rates and other projections, an
expected range of diluted earnings per share of $0.53 - $0.73 and Diluted FFO
per share of $3.00 - $3.20 for 2004 will be discussed. First quarter 2004
diluted earnings per share and Diluted FFO per share are projected to be $0.13
- $0.17 and $0.74 - $0.78, respectively. Projections for the first quarter
and full year 2004 exclude any potential gains, losses or asset impairments
associated with property dispositions currently contemplated or otherwise.
The projections for 2004 are based in part on the following assumptions:
2004
Average Office Portfolio Occupancy 87% - 90%
Real Estate Service Revenue $20 - $23 million
General and Administrative Expense $39 - $41 million
The 2004 estimate assumes on a weighted average basis acquisitions will
exceed dispositions by $50.0 million for the year. By definition, Diluted FFO
excludes gains or losses on the disposition of properties.
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 17,
2004. CarrAmerica's common stock will begin trading ex-dividend on February
12, 2004 and the dividend will be paid on March 1, 2004.
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, 2004. The preferred stock will
begin trading ex-dividend on February 12, 2004 and the dividends will be paid
on March 1, 2004.
CarrAmerica's Annual Meeting to be Held April 29, 2004
CarrAmerica also announced that its Annual Meeting of Stockholders will be
held on Thursday, April 29, 2004 at The Ritz Carlton Hotel at 1150 22nd
Street, N.W. 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 5, 2004.
CarrAmerica Fourth Quarter Webcast and Conference Call -- Note Time Change
CarrAmerica will conduct a conference call to discuss 2003 fourth quarter
results on February 6, 2004, at 12:30 pm 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 1-888-855-5428 for U.S.
participants and 1-719-457-2665 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 February 6, 2004 through midnight on February 12,
2004 by dialing 1-888-203-1112 for U.S. callers and 1-719-457-0820 for
international callers, passcode 796335. 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 297 operating office properties. CarrAmerica's markets include
Atlanta, 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 delays or the inability to
consummate, or higher than expected costs associated with, our proposed UPREIT
conversion, 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 the current economic
downturn, 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 to close 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) 2003 2002
(Unaudited)
Assets
Rental property
Land $ 690,410 $ 668,223
Buildings 1,974,347 1,954,840
Tenant improvements 420,533 367,901
Furniture, fixtures and equipment 48,216 40,191
3,133,506 3,031,155
Less: Accumulated depreciation (692,901) (587,123)
Net rental property 2,440,605 2,444,032
Land held for future development
or sale 41,284 44,778
Construction in progress 566 12,732
Assets related to properties held
for sale 10,626 -
Cash and cash equivalents 4,299 5,238
Restricted deposits 2,549 4,505
Accounts and notes receivable, net 17,829 20,391
Investments in unconsolidated
entities 137,604 125,079
Accrued straight-line rents 84,552 74,884
Tenant leasing costs, net 51,547 42,170
Prepaid expenses and other assets, net 44,557 44,111
$ 2,836,018 $ 2,817,920
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable, net $ 1,727,648 $ 1,603,949
Accounts payable and accrued
expenses 95,586 104,368
Rent received in advance and
security deposits 34,757 35,590
1,857,991 1,743,907
Minority interest 70,456 76,222
Stockholders' equity:
Preferred stock 201,250 254,518
Common stock 529 518
Additional paid in capital 976,644 955,862
Cumulative dividends in excess
of net income (270,852) (213,107)
907,571 997,791
Commitments and contingencies
$ 2,836,018 $ 2,817,920
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
(In thousands, except per December 31, December 31,
share amounts) 2003 2002 2003 2002
(Unaudited) (Unaudited)
Revenues:
Rental income (1):
Minimum base rent $104,770 $105,855 $411,749 $414,441
Recoveries from tenants 16,947 18,241 61,985 67,368
Parking and other tenant
charges 3,354 4,555 18,210 13,576
Total rental revenue 125,071 128,651 491,944 495,385
Real estate service revenue 4,786 7,363 24,337 24,538
Total operating revenues 129,857 136,014 516,281 519,923
Operating expenses:
Property expenses:
Operating expenses 31,410 33,517 128,819 125,115
Real estate taxes 11,690 10,792 43,214 43,994
General and administrative 11,796 12,305 42,767 41,650
Depreciation and amortization 33,585 33,619 130,871 124,862
Total operating expenses 88,481 90,233 345,671 335,621
Real estate operating
income 41,376 45,781 170,610 184,302
Other (expense) income:
Interest expense (26,704) (25,445) (104,492) (99,018)
Other income 1,033 468 1,128 1,086
Impairment loss on investments (1,100) (500) (1,100) (500)
HQ lease guarantees - - (811) (8,693)
Equity in earnings of
unconsolidated entities 2,077 1,299 7,034 7,188
Total other expense (24,694) (24,178) (98,241) (99,937)
Income from continuing
operations before income
taxes, minority interest,
impairment losses on real
estate, and gain on sale
of properties 16,682 21,603 72,369 84,365
Income taxes 33 (57) (402) (257)
Minority interest (539) (2,681) (8,924) (13,801)
Impairment losses on real
estate property (4,554) (1,171) (7,255) (2,496)
Gain on sale of properties 795 5,270 4,160 15,652
Income from continuing
operations 12,417 22,964 59,948 83,463
Discontinued operations -
Net operations of sold or
held for properties 451 537 2,672 6,757
Discontinued operations -
Gain on sale of properties 282 - 10,317 19,085
Net income $ 13,150 $ 23,501 $ 72,937 $109,305
Basic net income per share:
Continuing operations $ 0.04 $ 0.33 $ 0.64 $ 0.92
Discontinued operations 0.01 0.01 0.05 0.13
Gain on sale of
discontinued operations - - 0.20 0.36
Net income $ 0.05 $ 0.34 $ 0.89 $ 1.41
Diluted net income per share:
Continuing operations $ 0.04 $ 0.33 $ 0.64 $ 0.91
Discontinued operations 0.01 0.01 0.05 0.13
Gain on sale of
discontinued operations - - 0.20 0.35
Net income $ 0.05 $ 0.34 $ 0.89 $ 1.39
NOTE: (1) Rental income includes $3,006 and $2,583 of accrued straight
line rents for the three months period and $8,935 and $9,926 for the
twelve months period ended December 31, 2003 and 2002, respectively.
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Cash Flow
Twelve Months Ended
(Unaudited and in thousands) December 31,
2003 2002
Cash flow from operating activities:
Net income $ 72,937 $ 109,305
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 132,995 130,186
Minority interest 8,924 13,801
Equity in earnings of
unconsolidated entities (7,034) (7,188)
Gain sale of properties (4,160) (15,652)
Impairment losses on real estate 7,255 2,496
Impairment losses on investments 2,268 500
Gain on sale of discontinued
operations (10,317) (19,085)
Gain on sale of residential
property (997) -
Obligations under lease
guarantees 811 8,693
Provision for uncollectible
accounts 2,608 7,052
Stock based compensation 3,548 4,310
Other (142) 3,027
Change in assets and liabilities:
Decrease in accounts receivable 7,905 3,989
Increase in accrued straight-line
rents (8,906) (9,927)
Additions to tenant leasing costs (19,434) (11,240)
Increase in prepaid expenses and
other assets (15,272) (14,557)
(Decrease) increase in accounts
payable and accrued expenses (4,768) 5,535
(Decrease) increase in rent
received in advance and security
deposits (1,081) 874
Total adjustments 94,203 102,814
Net cash provided by operating
activities 167,140 212,119
Cash flows from investing activities:
Acquisition and development of
rental property (117,462) (201,105)
Additions to land held for
development or sale (4,210) (2,071)
Additions to construction in
progress (12,238) (7,746)
Issuance of notes receivable (8,009) (1,442)
Payments on notes receivable 64 3,586
Distributions from unconsolidated
entities 14,658 10,933
Investments in unconsolidated
entities (28,353) (13,688)
Acquisition of minority interest (2,330) (9,557)
Decrease in restricted deposits 1,956 905
Proceeds from sale of residential
property 14,164 -
Proceeds from sales of properties 52,156 176,119
Net cash used by investing
activities (89,604) (44,066)
Cash flows from financing activities:
Repurchase of common stock (7,858) (35,923)
Repurchase of preferred stock (254,583) (145,482)
Exercises of stock options 22,170 28,810
Proceeds from the sale of preferred
stock 194,664 -
Proceeds from the issuance of
unsecured notes - 617,982
Net repayments on unsecured credit
facility 155,500 (369,000)
Proceeds from mortgage refinancing 3,216 -
Net repayments of mortgages payable (56,365) (117,526)
Deferred financing costs - (1,448)
Dividends and distributions to
minority interests (135,219) (148,385)
Net cash used by financing
activities (78,475) (170,972)
Increase in unrestricted cash
and cash equivalents (939) (2,919)
Cash and cash equivalents, beginning
of the period 5,238 8,157
Cash and cash equivalents, end of the
period $ 4,299 $ 5,238
Supplemental disclosure of cash flow
information:
Cash paid for interest (net of
capitalized interest of $1,696 and
$3,274 for the twelve months ended
December 31, 2003 and 2002,
respectively) $ 104,582 $ 87,594
Cash paid for income taxes $ 10 $ (933)
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 is it 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,
2003 2002 2003 2002
Net income $13,150 $23,501 $72,937 $109,305
Adjustments: Minority interest 539 2,681 8,924 13,801
FFO allocable to
the minority
Unitholders (2,282) (4,036) (15,404) (17,884)
Depreciation and
amortization -
REIT properties 31,545 32,276 124,916 119,349
Depreciation and
amortization -
Equity properties 3,150 3,006 12,378 12,723
Depreciation and
amortization -
Discontinued
operations 84 463 1,139 5,173
Minority interests'
(non Unitholders)
share of
depreciation,
amortization and
net income (279) (352) (1,219) (1,159)
Gain on sale of
assets (1,077) (5,270) (14,477) (34,737)
FFO as defined by NAREIT 44,830 52,269 189,194 206,571
Less: Preferred
dividends,
dividends on
unvested restricted
stock and preferred
stock redemption
premium(2) (10,569) (5,765) (26,148) (34,636)
FFO attributable to common
shareholders 34,261 46,504 163,046 171,935
FFO allocable to the
minority Unitholders 2,282 4,036 15,404 17,884
Diluted FFO available to
common shareholders(3) $36,543 $50,540 $178,450 $189,819
Less: Lease commissions (5,770) (4,902) (17,979) (13,137)
Tenant improvements (11,592) (16,003) (33,634) (35,303)
Building capital
additions (7,340) (7,739) (17,131) (16,990)
Straight line rent (3,006) (2,583) (8,935) (9,926)
Funds available for distribution
to common shareholders(4) $8,835 $19,313 $100,771 $114,463
(1) FFO as defined by NAREIT, as amended by NAREIT during the third
quarter of 2003, includes land and building impairment charges of $4.6
and $1.2 million for the and $7.2 million and $2.5 million for the
three and twelve months ended December 30, 2003 and 2002,
respectively, which have been previously added back to arrive at FFO.
(2) 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).
This clarification is required to be reflected this quarter and be
applied retroactively. These amounts include $6,184 and $193 for the
three months and $8,018 and $4,581 for the twelve months ended Dec.
31, 2003 and 2002, respectively, of original preferred stock issuance
costs associated with redemptions.
(3) 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.
(4) Adjustments to arrive at FAD do not include amounts associated with
properties in unconsolidated entities.
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands,
except per share amounts) Three Months Twelve Months
Ended Ended
December 31, December 31,
2003 2002 2003 2002
Diluted net income per common share $ 0.05 $ 0.34 $ 0.89 $ 1.39
Add: Depreciation and amortization 0.59 0.61 2.38 2.31
Gain on sale of assets (0.02) (0.09) (0.25) (0.58)
Minority interest adjustment 0.03 0.07 0.26 0.30
Adjustment for share difference (0.03) (0.07) (0.21) (0.21)
Diluted funds from operations
available to common shareholders $ 0.62 $ 0.86 $ 3.07 $ 3.20
Diluted funds from operations
available to common shareholders,
excluding
Preferred stock issuance
costs $ 0.11 $ - $ 0.14 $ 0.07
Impairment of real estate 0.08 0.02 0.12 0.04
HQ lease guarantees - - 0.01 0.14
$ 0.81 $ 0.88 $ 3.34 $ 3.45
Diluted net income per common
share, excluding
Preferred stock issuance
costs $ 0.12 $ - $ 0.15 $ 0.08
Impairment of real estate 0.09 0.02 0.13 0.05
HQ lease guarantees - - 0.02 0.17
$ 0.26 $ 0.36 $ 1.19 $ 1.69
Weighted average common shares
outstanding:
Diluted net income 52,394 53,244 52,551 53,727
Diluted funds from operations 58,749 58,943 58,213 59,540
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, 2004 December 31, 2004
Projected diluted net income
per common share $ 0.13 - 0.17 $ 0.53 - 0.73
Add: Projected depreciation
and amortization 0.59 2.40
Projected minority interest 0.03 0.13
Less: Projected gain on sale
of assets and other
provisions, net - -
Projected adjustment for share
difference (0.01) (0.06)
Projected diluted funds from
operations per common share $ 0.74 - .078 $ 3.00 - 3.20
Projected weighted average
common shares outstanding:
Projected diluted net income 53,400 54,500
Projected diluted funds
from operations 59,000 60,100
SOURCE CarrAmerica Realty Corporation
 back to top
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, 888-776-6555 or 212-782-2840
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
|
