ARLINGTON, Va., Feb. 6 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily residential
REIT, today announced Funds from Operations (FFO) for the year 2000 of $100.8
million, up 39.2% over the prior year. 2000 FFO per share was up 12.4%, to
$3.63 per diluted share. For the quarter ended December 31, 2000, FFO was
$28.4 million, up 41.0% over fourth quarter 1999. Fourth quarter 2000 FFO per
diluted share was $1.00, up 14.9% over fourth quarter 1999. The Company
attributed the increases primarily to operating income growth in core
portfolio properties.
"Our 2000 results reflect our success in capitalizing on the growing urban
living trend. It was truly an extraordinary year -- the best in our history
in many respects, with record FFO per share exceeding consensus estimates and
a total shareholder return of over 40%," said Ernest Gerardi, Jr., CEO of
Smith Residential. "The key driver, 10.7% growth in core portfolio NOI,
illustrates the expertise of our management team in leasing and operating high
quality high-rise properties. Most important, our focused efforts in four of
the strongest U.S. urban living markets position us for continued double-digit
FFO per share growth in 2001."
Executive Transition
Smith Residential Realty also announced that, for health reasons, Mr.
Gerardi plans to reduce his work schedule in the future and will step down as
CEO when a replacement is appointed. At that time, in addition to
facilitating the transition, Mr. Gerardi will remain on the Board of Directors
and will continue in strategy planning and special projects for the Company.
A national recruiting firm has been retained to assist in identifying and
evaluating external and internal CEO candidates. A special committee of the
Board, including two outside Board members, selected the recruiting firm and
will interview the final candidates.
Commenting on this transition, Mr. Gerardi said, "Smith Residential will
continue its successful strategic focus -- targeting the high-rise rental
apartment market in selected cities, with premier properties catering to the
growing upscale urban living customer segment. The Company has experienced, in
depth management in place and I am confident its growth will continue through
the combination of strong core operations, the development of quality
properties in prime locations, and the acquisition of well-located properties
with repositioning opportunities."
Recent Activity
During the quarter, Smith Residential acquired three properties, totaling
684 units, in Southeast Fla., Northern Va., and Boston.
New River Village in Ft. Lauderdale, Fla., and 2201 Wilson Boulevard in
Arlington, Va., are both mid-rise properties, which were acquired through pre-
purchase agreements totaling approximately $58 million. The purchase contracts
for 2201 Wilson Boulevard and New River Village both contain contingent
earnout provisions under which the sellers may receive additional post-closing
payments based on achievement by the properties of certain minimum yields.
New River Village (240 units) is 94% leased and will stabilize in the first
quarter of 2001. 2201 Wilson Boulevard (219 units) is 100% leased and reached
stabilization in December 2000.
In the Boston market, the Company acquired Sagamore Towers (225 units) for
approximately $20 million. This high-rise property, located adjacent to a
commuter train stop in the close-in suburb of Quincy, is just a short train
ride to downtown Boston. A $9 million repositioning program will include
initial upgrades to common areas, to be followed by kitchen and bath upgrades.
The purchase of these properties was funded from the $75 million
disposition of two Northern Virginia properties.
New Credit Facility
Smith Residential also announced it has closed on a $150 million, three-
year revolving credit facility with a bank group led by PNC Bank, replacing an
existing bank facility scheduled to expire in March 2001. Terms and
conditions of the new line of credit are comparable to the previous facility.
Operating Results
Charles E. Smith Residential Realty is structured as an umbrella
partnership real estate investment trust, or UPREIT, in which all property
ownership and business operations are conducted in an Operating Partnership
and its subsidiaries and affiliates. Charles E. Smith Residential Realty,
Inc. (the REIT) currently owns approximately 65% of its Operating Partnership
and is its sole general partner.
The Operating Partnership's total Funds from Operations (FFO) was $43.3
million for the fourth quarter of 2000, an increase of 33.9% over 1999. For
the year ended December 31, 2000, the Operating Partnership's FFO was $155.5
million, up 33.4% over 1999.
The Operating Partnership's total revenue from rental properties was
$100.9 million for the fourth quarter of 2000, an increase of 22.4% over 1999,
and total rental property revenue for the year ended December 31, 2000, was
$383.2 million, an increase of 27.2% over 1999.
The Operating Partnership's operating income from rental properties before
depreciation for the fourth quarter of 2000 was $63.7 million, up 26.3% over
1999, and for the year ended December 31, 2000, operating income was $236.4
million, up 29.7% over 1999.
Quarterly Conference Call
The Company will hold a conference call on Wednesday, February 7, 2001, to
review the information reported in this release. The conference call will
begin at 11:00 AM (EST). To participate, please call 800-621-5175 shortly
before 11:00 AM that day, and identify yourself as a participant in the
Charles E. Smith Residential Realty 2000 Operating Results conference call.
An audio version of the call will be available on the Company's web site at
http://www.charlesesmith.com .
If you are unable to join the call at 11:00 AM, a recording will be
available from 1:00 PM (EST), February 7th until 1:00 PM (EST), February 9th.
To access the PostView, please call 800-633-8284 and enter reservation number
17394569 followed by the "#" sign. An audio replay of the conference call
will be available on the Company's web site at http://www.charlesesmith.com .
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange under the symbol "SRW."
The Company and its subsidiaries and affiliates own, acquire, develop, and
manage multifamily residential units in Washington, D.C., Northern Va.,
Chicago, Boston, and Southeast Fla. The Company owns or has an interest in
approximately 28,000 units and has another 1,600 units under construction or
subject to pre-purchase agreements. The total market capitalization of the
Company -- Charles E. Smith Residential Realty, Inc., including its Operating
Partnership -- exceeds $3.2 billion.
This news release contains forward-looking statements regarding the
Company's outlook, including statements of goals, intentions, and expectations
based on assumptions about general economic and market conditions, competitive
dynamics and other factors that, by their nature, are subject to significant
uncertainties, some of which are discussed in the Company's filings with the
Securities and Exchange Commission. Because of these uncertainties, and the
assumptions on which statements in this release are based, actual future
results may differ materially.
Investor information, including press releases about Charles E. Smith
Residential Realty, is available on the Company's web site at
http://www.charlesesmith.com and also through PR Newswire's News on Call by
fax at 800-758-5804, ext. 101271, or at http://www.prnewswire.com .
(Tables to Follow)
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three Months and Year Ended December 31, 2000 and 1999
Three Months Ended December 31,
(dollars in thousands, except per
share data) 2000 1999 % Change
Financial Highlights
Revenue from the Operating
Partnership $100,921 $82,484 22.4%
Funds From Operations of the
Operating Partnership 43,323 32,345 33.9%
Funds From Operations - attributable
to shareholders 28,368 20,120 41.0%
Per Share - basic $1.02 $0.88 15.9%
Per Share - diluted (a) $1.00 $0.87 14.9%
Net Income - attributable to common
shareholders 53,759 46,594 15.4%
Per Common Share - basic $2.46 $2.30 7.0%
Per Common Share - diluted $2.14 $2.20 -2.7%
Dividends Declared per Share $0.585 $0.55 6.4%
Total Assets
Interest Coverage Ratio (b) 3.28 3.62
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three Months and Year Ended December 31, 2000 and 1999
Year Ended December 31,
(dollars in thousands,
except per share data) 2000 1999 % Change
Financial Highlights
Revenue from the Operating
Partnership $383,233 $301,233 27.2%
Funds From Operations of the
Operating Partnership 155,453 116,512 33.4%
Funds From Operations - attributable
to shareholders 100,847 72,464 39.2%
Per Share - basic $3.68 $3.25 13.2%
Per Share - diluted (a) $3.63 $3.23 12.4%
Net Income - attributable to common
shareholders 94,692 82,237 15.1%
Per Common Share - basic $4.44 $4.24 4.7%
Per Common Share - diluted $4.09 $4.04 1.2%
Dividends Declared per Share $2.27 $2.17 4.6%
Total Assets $2,074,943 $1,704,778 21.7%
Interest Coverage Ratio (b) 3.21 3.33
As of As of
Apartment Units December 31, December 31,
2000 1999
Core Portfolio 16,435 15,482
Acquisition/Disposition Portfolio 9,236 7,635
Development Portfolio (in service) 1,515 1,058
Total 27,186 24,175
(a) Weighted average shares and partnership units outstanding on a diluted
basis during the periods were as follows (in 000's):
Three Months Year Ended
Ended December 31, December 31,
2000 1999 2000 1999
Common Shares
(includes common
share equivalents) 22,753 20,528 21,940 19,638
Convertible
Preferred
Shares/Units 7,233 2,640 7,233 2,894
Common Partnership
Units 13,549 13,860 13,664 13,561
Total Shares and
Partnership
Units 43,535 37,028 42,837 36,093
(b) Excludes gains on sales and extraordinary losses on extinguishment of
debt.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three Months and Year Ended December 31, 2000 and 1999
Three Months Ended December 31,
(dollars in thousands,
except per share data) 2000 1999 (c) % Change
RENTAL PROPERTIES (a)
Revenue $100,921 $82,484 22.4%
Operating expenses (37,259) (32,083) 16.1%
Depreciation and amortization (11,785) (9,602) 22.7%
51,877 40,799 27.2%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 616 515 19.6%
EQUITY IN INCOME OF PROPERTY SERVICE
BUSINESSES BEFORE GAINS (LOSSES) 3,328 2,485 33.9%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (2,783) (2,822) -1.4%
Interest expense, net (20,917) (14,299) 46.3%
Gain on sales 67,265 56,608 18.8%
Equity in gain (loss) on sales (5,359) 802 -768.2%
Extraordinary item - loss on
extinguishment of debt - (1) -100.0%
NET INCOME OF THE OPERATING
PARTNERSHIP 94,027 84,087 11.8%
Minority Interest (35,055) (32,297) 8.5%
Net Income 58,972 51,790 13.9%
Less income attributable to
preferred shares (5,213) (5,196) 0.3%
Net Income attributable to
common shares $53,759 $46,594 15.4%
Net Income per common share -
basic $2.46 $2.30 7.0%
Net Income per common share -
diluted $2.14 $2.20 -2.7%
NET INCOME OF THE OPERATING
PARTNERSHIP $94,027 $84,087 11.8%
Preferred dividends (b) (989) (4,285) -76.9%
(Gain) loss on sales (61,906) (57,410) 7.8%
Depreciation of rental property 11,785 9,602 22.7%
Depreciation of unconsolidated
properties 297 242 22.7%
Amortization of goodwill 109 108 0.9%
Extraordinary item - loss on
extinguishment of debt - 1 -100.0%
FFO OF THE OPERATING PARTNERSHIP 43,323 32,345 33.9%
Minority Interest (14,955) (12,225) 22.3%
FFO attributable to shareholders $28,368 $20,120 41.0%
Funds From Operations per Share
- basic $1.02 $0.88 15.9%
Funds From Operations per Share
- diluted $1.00 $0.87 14.9%
(a) Details are shown on the following table.
(b) Includes Preferred Series which are not considered common share
equivalents for the period in question.
(c) Certain amounts have been reclassified to conform to the current
year's presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three Months and Year Ended December 31, 2000 and 1999
Year Ended December 31,
(dollars in thousands,
except per share data) 2000 1999 (c) % Change
RENTAL PROPERTIES (a)
Revenue $383,233 $301,233 27.2%
Operating expenses (146,796) (118,950) 23.4%
Depreciation and amortization (44,778) (33,906) 32.1%
191,659 148,377 29.2%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 2,465 1,192 106.8%
EQUITY IN INCOME OF PROPERTY SERVICE
BUSINESSES BEFORE GAINS (LOSSES) 8,373 5,740 45.9%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (11,290) (9,607) 17.5%
Interest expense, net (78,026) (56,003) 39.3%
Gain on sales 71,426 63,673 12.2%
Equity in gain (loss) on sales (5,359) 802 -768.2%
Extraordinary item - loss on
extinguishment of debt - (360) -100.0%
NET INCOME OF THE OPERATING
PARTNERSHIP 179,248 153,814 16.5%
Minority Interest (64,309) (58,536) 9.9%
Net Income 114,939 95,278 20.6%
Less income attributable to
preferred shares (20,247) (13,041) 55.3%
Net Income attributable to
common shares $94,692 $82,237 15.1%
Net Income per common share -
basic $4.44 $4.24 4.7%
Net Income per common share -
diluted $4.09 $4.04 1.2%
NET INCOME OF THE OPERATING
PARTNERSHIP $179,248 $153,814 16.5%
Preferred dividends (b) (3,955) (8,093) -51.1%
(Gain) loss on sales (66,067) (64,475) 2.5%
Depreciation of rental property 44,778 33,906 32.1%
Depreciation of unconsolidated
properties 1,015 570 78.1%
Amortization of goodwill 434 430 0.9%
Extraordinary item - loss on
extinguishment of debt - 360 -100.0%
FFO OF THE OPERATING PARTNERSHIP 155,453 116,512 33.4%
Minority Interest (54,606) (44,048) 24.0%
FFO attributable to shareholders $100,847 $72,464 39.2%
Funds From Operations per Share
- basic $3.68 $3.25 13.2%
Funds From Operations per Share
- diluted $3.63 $3.23 12.4%
(a) Details are shown on the following table.
(b) Includes Preferred Series which are not considered common share
equivalents for the period in question.
(c) Certain amounts have been reclassified to conform to the current
year's presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Rental Property Details
For the Three Months and Year Ended December 31, 2000 and 1999
Three Months Ended Year Ended
December 31, December 31,
(dollars in
thousands) 2000 1999(e) % Change 2000 1999(e) % Change
CORE RESIDENTIAL
PORTFOLIO (a)
Revenue $63,726 $58,706 8.6% $247,611 $229,893 7.7%
Operating Expenses (22,668) (22,249) 1.9% (91,449) (88,830) 2.9%
41,058 36,457 12.6% 156,162 141,063 10.7%
ACQUISITION/DISPOSITION
PORTFOLIO (b)
Revenue 28,338 18,414 103,515 56,938
Operating Expenses (11,754) (7,659) (43,408) (23,362)
16,584 10,755 N/A 60,107 33,576 N/A
DEVELOPMENT
PORTFOLIO (c)
Revenue 8,354 4,554 29,351 10,975
Operating Expenses (2,385) (1,765) (10,370) (5,187)
5,969 2,789 N/A 18,981 5,788 N/A
RETAIL PORTFOLIO
Revenue 503 810 -37.9% 2,756 3,427 -19.6%
Operating Expenses (452) (410) 10.2% (1,569) (1,571) -0.1%
51 400 -87.3% 1,187 1,856 -36.0%
TOTAL PORTFOLIO
Revenue 100,921 82,484 22.4% 383,233 301,233 27.2%
Operating
Expenses (37,259) (32,083) 16.1% (146,796) (118,950) 23.4%
$63,662 $50,401 26.3% $236,437 $182,283 29.7%
(a) Includes 16,435 apartment units.
(b) Includes the following residential and retail properties:
2000 Acquisitions
Ocean View at Sunset Pointe - North (Southeast FL)
Ocean View at Sunset Pointe - South (Southeast FL)
New River Village (Southeast FL)
Harbour House North/South (Southeast FL)
Dearborn Place (Chicago, IL)
Reston Landing (Northern VA)
2201 Wilson Blvd (Northern VA)
Sagamore Towers (Boston, MA)
2000 Dispositions
Orleans Village
Berkeley
Worldgate Centre
1999 Acquisitions
Buchanan (Northern VA)
The Park Lincoln (Chicago, IL)
Terrace (Chicago, IL)
Countryside (Chicago, IL)
Stonegate (Chicago, IL)
The Consulate (Washington, DC)
Forte Towers (Southeast FL)
Ocean View at Aventura Beach (Southeast FL)
1999 Dispositions
The Manor
Potomac View
Columbian Stratford
Windsor Towers
Fort Chaplin
Suburban Tower
(c) Includes the following properties: *
Springfield Station (Northern VA) (through 5/99)
Courthouse Place (Northern VA)
One Superior Place (Chicago, IL)
The Park Connecticut (Washington, DC)
* Excludes projects under contingent pre-purchase agreements.
(d) Certain amounts have been reclassified to conform with the current
year's presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Core Residential Portfolio Statistics
For the Three Months and Year Ended December 31, 2000 and 1999
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units Q4 00 % of Total
(000's)
WASHINGTON, D.C. 3,326 $12,311 19.3%
NORTHERN VIRGINIA
Crystal City 4,007 16,330 25.6%
Rosslyn/Ballston 1,110 5,076 8.0%
Tysons/Dulles 2,617 8,954 14.1%
Other 3,525 11,396 17.9%
Total Northern Virginia 11,259 41,756 65.5%
BOSTON/CHICAGO 1,850 9,659 15.2%
CORE RESIDENTIAL PORTFOLIO 16,435 $63,726 100.0%
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Core Residential Portfolio Statistics
For the Three Months and Year Ended December 31, 2000 and 1999
Monthly GOI
Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market Q4 00 Q4 99 Q4 00 Q4 99
WASHINGTON, D.C. $1,234 10.8% 98.0% -0.6%
NORTHERN VIRGINIA
Crystal City 1,359 5.8% 95.3% -1.6%
Rosslyn/Ballston 1,524 9.9% 96.0% -1.4%
Tysons/Dulles 1,140 11.0% 95.7% -1.6%
Other 1,078 8.7% 97.4% -0.6%
Total Northern Virginia 1,236 8.2% 96.1% -1.3%
BOSTON/CHICAGO 1,740 7.3% 97.3% 0.0%
CORE RESIDENTIAL PORTFOLIO $1,292 8.6% 96.6% -1.0%
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units YTD 00 % of Total
(000's)
WASHINGTON, D.C. 3,326 $47,349 19.1%
NORTHERN VIRGINIA
Crystal City 4,007 64,199 25.9%
Rosslyn/Ballston 1,110 19,887 8.0%
Tysons/Dulles 2,617 34,530 13.9%
Other 3,525 43,819 17.7%
Total Northern Virginia 11,259 162,435 65.6%
BOSTON/CHICAGO 1,850 37,827 15.3%
CORE RESIDENTIAL PORTFOLIO 16,435 $247,611 100.0%
Monthly GOI
Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market YTD 00 YTD 99 YTD 00 YTD 99
WASHINGTON, D.C. $1,186 10.2% 97.9% -0.4%
NORTHERN VIRGINIA
Crystal City 1,335 5.7% 96.7% -0.7%
Rosslyn/Ballston 1,493 9.0% 96.6% 0.3%
Tysons/Dulles 1,100 8.6% 97.0% -0.3%
Other 1,036 7.7% 97.7% 0.4%
Total Northern Virginia 1,202 7.2% 97.0% -0.2%
BOSTON/CHICAGO 1,704 6.7% 97.4% 1.0%
CORE RESIDENTIAL PORTFOLIO $1,256 7.7% 97.2% -0.1%
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Funds Available for Distribution (FAD) Calculation
For the Three Months and Year Ended December 31, 2000 and 1999
Three Months Ended Year Ended
December 31, December 31,
(dollars in thousands, % %
except per share data) 2000 1999 Change 2000 1999 Change
FFO OF THE OPERATING
PARTNERSHIP $43,323 $32,345 33.9% $155,453 $116,512 33.4%
Amortization of
deferred financing
costs 371 386 -3.9% 1,671 1,492 12.0%
Recurring capital
improvements (a) (5,442) (3,676) 48.0% (14,889) (12,913) 15.3%
Principal
curtailments on
mortgage debt (1,307) (1,245) 5.0% (5,484) (3,780) 45.1%
Other 290 207 40.1% 795 448 77.5%
FAD OF THE OPERATING
PARTNERSHIP 37,235 28,017 32.9% 137,546 101,759 35.2%
Minority Interest (12,853) (10,561) 21.7% (48,316) (38,471) 25.6%
FAD attributable to
shareholders $24,382 $17,456 39.7% $89,230 $63,288 41.0%
Funds Available for
Distribution per
Share - basic $0.87 $0.76 14.5% $3.26 $2.84 14.8%
Dividend declared
per Share $0.585 $0.55 6.4% $2.27 $2.17 4.6%
Payout Ratios
As a percentage of
FFO 57% 63% 62% 67%
As a percentage of
FAD 67% 72% 70% 76%
(a) Capital improvements consist of the following:
Core Residential
Portfolio $5,314 $3,634 $13,852 $12,367
Disposition &
Retail Portfolios 128 42 1,037 546
Total Recurring
capital
improvements 5,442 3,676 14,889 12,913
Non-recurring Core
Repositioning 8,439 6,384 24,135 9,281
Total $13,881 $10,060 $39,024 $22,194
Non-recurring Core Repositioning improvements (primarily kitchen and
bath renovations) as well as capital improvements on the acquisition
portfolio are excluded from the FAD calculation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Debt Composition
As of December 31, 2000
Average Average
Interest Dollars in % of Years to
Rate Thousands Total Maturity
Fixed Rate Debt
Long Term Mortgages 7.29% $1,064,556 87.0% 9.2
Variable Rate Debt
Construction Loans 8.14% 14,859 1.2% 1.1
$300M Revolver 6.76% 112,000 9.2% 9.4
$100M Revolver 7.69% 32,000 2.6% 0.2
$50M Revolver N/A - 0.0% 0.2
Sub-Total 7.08% 158,859 13.0% 6.8
Total Debt 7.27% $1,223,415 100.0% 8.9
Scheduled principal payments:
Year Ending December 31,
2001 83,261
2002 20,361
2003 5,958
2004 33,781
2005 6,799
Thereafter 1,073,255
$1,223,415
As of As of As of As of As of
12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
Debt to Total Market
Capitalization Ratio 37.3% 36.1% 39.5% 40.5% 38.6%
Market Capitalization (in
millions) $3,278 $3,106 $2,730 $2,644 $2,509
Stock Price $47.000 $45.375 $38.000 $36.125 $35.375
* Debt to Total Market Capitalization Ratio at 12/31/00 is based on
21,916,759 common shares, 7,232,949 convertible preferred
shares/units, and 13,503,732 partnership units outstanding at a
common stock price of $47.000, plus $50M of perpetual preferred
shares.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.charlesesmith.com
CONTACT:
Investors: Greg Samay, 703-769-1029; Media:
Susan Goyette, 703-769-6746; both of Charles E. Smith Residential
Realty, Inc.
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