SAN DIEGO, Feb. 24 /PRNewswire/ -- Burnham Pacific Properties, Inc.
(NYSE: BPP) today announced that Funds From Operations ("FFO") on a diluted
basis (assuming conversion of the Company's convertible preferred stock and
other common stock equivalents) increased to $52,022,000 in 1998 from
$27,054,000 in 1997. On a per-share basis, FFO increased to $1.33 per share
from $1.26 per share in 1997. For the fourth quarter, diluted FFO increased
to $13,357,000 from $7,810,000 in 1997. On a per-share basis, FFO in the
fourth quarter decreased to $.32 as compared to $.33 in the fourth quarter of
1997. FFO is calculated based on the revised definition adopted by the Board
of Governors of the National Association of Real Estate Investment Trusts
(NAREIT) and is considered the primary earnings measure for equity REITs.
Review of Results
For the quarter ended December 31, 1998, as compared to the prior year
period, revenues grew $15,099,000 from $20,093,000 to $35,192,000. Net income
available to common stockholders before gains or losses on sales of real
estate was $3,428,000 or $.11 per share (diluted) as compared to $3,663,000 or
$.16 per share (diluted) for the prior year period.
For the twelve months ended December 31, 1998, as compared to the prior
year, revenues grew $63,549,000 from $68,174,000 to $131,723,000. Net income
available to common stockholders before gains or losses on sales of real
estate and extraordinary item was $14,970,000 or $.50 per share (diluted), as
compared to $12,854,000 or $.60 per share (diluted) in 1997.
Commenting on the year, David Martin, President and Chief Executive
Officer, stated, "Last year was a year of significant growth for the Company.
During the year, we integrated 28 properties acquired during the fourth
quarter of 1997, acquired 14 new properties in 1998, and continued to expand
geographically. We entered into a joint venture with the California Public
Employees' Retirement System ("CalPERS"), took over management of five
properties that they contributed to the venture, and purchased an additional
five properties on behalf of the venture in the fourth quarter.
We hired a new Chief Operating Officer, a new Director of Leasing, and
installed a team of experienced regional leasing specialists. Since
implementing an aggressive leasing program at mid-year, we have executed new
leases for 206,000 square feet, and renewed leases for an additional 69,400
square feet in the last six months of 1998. In 1999, we are focusing on
aggressive leasing and rehabilitation programs, and accretive acquisitions in
our CalPERS venture."
Leasing
The Company maintained its leasing momentum in the fourth quarter entering
into new leases for 66,612 square feet of previously vacant space at a
weighted average rent of $1.15 per square foot per month, and executing leases
relating to renewals, replacements, and expansions for 31,215 square feet at a
weighted average rent of $1.35 per square foot per month.
This leasing activity carried over into 1999 as the Company has executed
to date, leases for an additional 84,623 square feet.
Acquisitions
During the fourth quarter, the Company acquired, through its joint venture
with CalPERS, five properties containing approximately 330,188 square feet of
Company-owned space for an aggregate purchase price of approximately
$38,261,000. This brings the total square footage of property owned in the
CalPERS joint venture to 1,439,000 square feet.
Overlake Plaza: In October, the joint venture acquired 80,555 square feet
of this 340,836 square-foot promotional shopping center located in Redmond,
Washington, for approximately $13,310,000. The property is anchored by a
230,200 square-foot Sears (not owned) and a 26,640 square-foot Marshalls.
Woodinville Plaza: In December, the joint venture acquired a 44,875
square-foot leasehold subleased to T.J. Maxx and located in the Woodinville
Plaza Shopping Center, a 151,940 square-foot neighborhood shopping center in
Woodinville, Washington, for a purchase price of approximately $1,966,000.
The shopping center is anchored by an Albertson's supermarket and a Rite Aid
drugstore.
Silverton Plaza: In December, the joint venture acquired a 68,345 square-
foot neighborhood shopping center located in Silverton, Oregon, for a purchase
price of approximately $4,700,000. The property is anchored by a 35,470
square-foot Safeway supermarket and a 20,122 square-foot Rite Aid drugstore.
Snell & Branham Plaza: In December, the joint venture acquired a 94,289
square-foot neighborhood shopping center in San Jose, California, for
approximately $10,435,000. This property is anchored by a 44,000 square-foot
Safeway supermarket.
Laguna Niguel Plaza: In December, the joint venture acquired 42,124
square-feet of this neighborhood shopping center located in Laguna Niguel,
California, for a purchase price of approximately $7,850,000. The property is
anchored by a 38,917 square-foot Lucky supermarket (not owned) and a 15,000
square-foot Sav-On drugstore.
Dispositions
In December, as part of its continuing strategy of disposing of non-core
assets, the Company sold a 26,978 square-foot convenience center located in
San Diego, California, for approximately $2,800,000, recognizing a loss on
sale of approximately $1,814,000.
Also in December, the Company commenced the transfer of the residential
units in its 1000 Van Ness development project, located in San Francisco,
California, to a residential developer. No gain or loss was recognized on
this transaction.
BPP Retail, L.L.C.
As previously reported, the Company finalized its joint venture agreement
with CalPERS on August 31, 1998. On October 1, 1998, CalPERS made an initial
contribution to the joint venture of five retail properties valued at
approximately $80,000,000. During the fourth quarter, the joint venture
purchased the five properties mentioned earlier for approximately $38,261,000.
On December 22, 1998, the Company made an initial contribution of two retail
properties valued at approximately $22,195,000. On the same date, the Company
withdrew approximately $22,195,000 in cash from the joint venture pending the
finalization of the remainder of its required contributions, which are
expected to be completed in the first quarter of 1999.
Burnham Pacific is a fully integrated real estate operating company which
acquires, rehabilitates, develops and manages retail properties in the Western
United States. The Company currently has interests in 83 properties and
controls four major leaseholds. Burnham Pacific maintains offices in
California, Oregon and Washington and makes available quarterly supplemental
information that includes property and corporate level detail. More
information may be found by calling 800-462-5181 or visiting the Company's web
site at http://www.burnhampacific.com.
This news release contains forward-looking statements regarding future
events or financial performance of the Company. These statements are only
predictions and actual events or results may differ materially. Investors
should refer to the documents the Company files from time to time with the
Securities and Exchange Commission, specifically the cautionary statement
identifying certain factors that could affect future results included in the
"Risk Factors" section of the Company's most recently filed Registration
Statement.
BURNHAM PACIFIC
Consolidated Statements of Income
Quarter Ended Year Ended
12/31/98 12/31/97 12/31/98 12/31/97
Revenues
Rents $35,007 $19,854 $130,905 $67,413
Interest 185 239 818 761
Total Revenues 35,192 20,093 131,723 68,174
Costs and Expenses
Interest 9,435 5,645 35,630 18,472
Rental Operating 10,321 5,553 36,543 18,716
General & Administrative 1,765 756 5,723 3,035
Depreciation & Amortization 7,685 4,544 28,607 15,275
Total Costs and Expenses $29,206 $16,498 $106,503 $55,498
Income from Operations before
Income from Unconsolidated
Subsidiaries, Minority
Interest, Gain (Loss)
on Sales of Real Estate
and Extraordinary Item 5,986 3,595 25,220 12,676
Income from
Unconsolidated Subsidiaries 54 80 214 223
Minority Interest (1,212) (12) (4,864) (45)
Gain (Loss) on Sales
of Real Estate (1,814) 5,896 (1,814) 5,896
Income before
Extraordinary Item 3,014 9,559 18,756 18,750
Loss from Early
Extinguishment of Debt 0 0 0 (52)
Net Income $3,014 $9,559 $18,756 $18,698
Dividends Paid to
Preferred Stockholders (1,400) 0 (5,600) 0
Income Available to
Common Stockholders $1,614 $9,559 $13,156 $18,698
Basic Earnings Per Share:
Income before
Extraordinary Item $0.05 $0.41 $0.44 $0.88
Extraordinary Item 0 0 0 0
Income Available to
Common Stockholders $0.05 $0.41 $0.44 $0.88
Diluted Earnings Per Share:
Income before
Extraordinary Item $0.05 $0.41 $0.44 $0.87
Extraordinary Item 0 0 0 0
Income Available to
Common Stockholders $0.05 $0.41 $0.44 $0.87
Funds from Operations-Diluted:
Net Income $3,014 $9,559 $18,756 $18,698
Adjustments:
Depreciation & Amortization
of Real Estate and
Tenant Improvements 7,317 4,135 26,588 14,155
Loss (Gain) on Sales
of Real Estate 1,814 (5,896) 1,814 (5,896)
Loss from Early
Extinguishment of Debt 0 0 0 52
Minority Interest 1,212 12 4,864 45
Funds from
Operations-Diluted $13,357 $7,810 $52,022 $27,054
Funds from Operations
Per Share
Basic $0.34 $0.33 $1.39 $1.27
Diluted $0.32 $0.33 $1.33 $1.26
Weighted Average Shares
Outstanding-FFO
Basic 31,948,073 23,442,852 29,863,565 21,334,794
Diluted 41,796,955 23,614,534 39,214,956 21,499,872
BURNHAM PACIFIC
Consolidated Balance Sheets
December 31, 1998 and 1997
1998 1997
ASSETS
Real Estate $1,137,779 $964,755
Less Accumulated Depreciation (79,837) (55,823)
Real Estate-Net 1,057,942 908,932
Cash and Cash Equivalents 20,873 6,841
Restricted Cash 7,737 5,242
Receivables-Net 7,697 7,456
Investment in Unconsolidated Subsidiaries 3,438 3,683
Other Assets 16,489 11,641
Total $1,114,176 $943,795
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts Payable and Other Liabilities $50,572 $19,296
Tenant Security Deposits 2,982 2,396
Notes Payable 394,029 369,511
Line of Credit Advances 180,999 180,869
Total Liabilities 628,582 572,072
Commitments and Contingencies
Minority Interest 70,217 58,759
Preferred Stock 0 28,160
Stockholders' Equity:
Preferred Stock, Par Value $.01/Share,
5,000,000 Shares Authorized, 4,800,000
Shares Designated as Series 1997-A
Convertible Preferred, 2,800,000 Shares
Outstanding at December 31, 1998 and
1997, Respectively 28 17
Common Stock, Par Value $.01 Per Share,
95,000,000 Shares Authorized, 31,954,008
and 23,448,852 Shares Outstanding at
December 31, 1998 and 1997, Respectively 319 234
Paid in Capital in Excess of Par 524,957 376,326
Dividends Paid in Excess of Net Income (109,927) (91,773)
Total Stockholders' Equity 415,377 284,804
Total $1,114,176 $943,795
SOURCE Burnham Pacific Properties, Inc.
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Related links:
http://www.burnhampacific.com
CONTACT:
Daniel B. Platt, Chief Financial Officer of
Burnham Pacific Properties, 619-652-4700, Fax: 619-652-4711,
dbplatt@bpac.com
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