Core Portfolio Net Operating Income Increased 7.6%
ARLINGTON, Va., April 18 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today the Operating Partnership's Funds From Operations (FFO) of
$38.4 million for the quarter ended March 31, 2001, an increase of 27.7% over
the first quarter of 2000. The Company's first quarter 2001 FFO per diluted
share was $0.88, up 10% over the prior year's first quarter. The increase is
attributed to the strength of apartment market conditions in all of the
Company's locations.
"We are pleased with our first quarter results," said Ernest Gerardi, Jr.,
CEO of Smith Residential Realty. "We achieved our growth targets in FFO and
in core portfolio NOI -- getting us off to an excellent start for the year.
Our markets continue to demonstrate resilience and interest in urban living is
still strong. We remain comfortable with analysts' current consensus for the
year."
Dividend Declaration
The Board of Directors of Charles E. Smith Residential Realty, Inc.
declared a dividend of $0.585 per share for the quarter ended March 31, 2001.
The dividend will be payable on May 10, 2001 to all shareholders of record as
of May 2, 2001.
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 66% of its Operating Partnership
and is its sole general partner.
The Operating Partnership's total revenue was $106.6 million for the first
quarter of 2001 an increase of 19.9% over the first quarter of 2000. The
Operating Partnership's operating income before depreciation for the first
quarter of 2001 was $61.1 million, up 14.5% over the first quarter of 2000.
The Operating Partnership's total Funds from Operations (FFO) was $38.4
million for the first quarter of 2001, an increase of 10% per diluted share
over the first quarter of 2000.
Recent Events
In February, the Company made an investment in Plaza 440, a 457-unit
luxury high-rise in downtown Chicago. The investment was made in the form of
a $23.8 million participating loan, which includes an option to convert to a
90% ownership interest after two years. As part of this transaction Smith
Residential will manage the property under a multi-year contract. Plaza 440
is a 50-story high-rise, built in 1991. It is located just north of the
Chicago River, within close walking distance of the Loop and a substantial
number of retail, dining, and entertainment venues, including the new
Nordstrom department store on Michigan Avenue.
The Company also announced that Steve Hallsey has joined the Company as
Executive Vice President of Residential Operations. Mr. Hallsey will report
to Denny Minami, the Company's Chief Operating Officer, and will be
responsible for day-day operations and overall management of Smith
Residential's entire multifamily portfolio. Prior to joining Smith
Residential, Mr. Hallsey was Senior Vice President of Asset Management for
Glenborough Realty Trust. Previously, he was President and COO of Western
National Group, which managed 38,000 multifamily units including Irvine
Apartment Communities' portfolio.
Quarterly Conference Call
The Company will hold a conference call on Thursday, April 19, 2001, to
review the information reported in this release. The conference call will
begin at 11:00 a.m. (EDT). To participate, please call 1-888-793-1728 shortly
before 11:00 a.m. that day, and identify yourself as a participant in the
Charles E. Smith Residential Realty First Quarter 2001 Operating Results
conference call. If you are unable to join the dial-in call at 11:00 AM, a
recording will be available from 1:30 p.m. (EDT), April 19th until 1:30 p.m.
(EDT), April 22nd. To access the PostView, please call 1-800-633-8284 and
enter reservation number 18388949 followed by the "#" sign. In addition to
the dial-in call, a live web cast of the conference will be available on the
Company's web site at http://www.smithreit.com . Playback of the web cast
will be available on the web site following the call and can be found under
the MultiMedia section.
Charles E. Smith Residential Realty, Inc. (NYSE: SRW) is a leader in
providing urban living solutions in selected American cities. The Company is
a self-managed real estate investment trust that develops, acquires, owns,
leases, and manages multifamily residential rental properties. The Company is
based in Arlington, Va., with operations in Washington, D.C., Northern Va.,
Chicago, Boston, and Southeast Fla. As of April 2001, the Company owns or has
an interest in a portfolio of over 30,000 apartments. Total capitalization of
the Company, including its operating partnerships, exceeds $3 billion.
Investor information, including press releases about Charles E. Smith
Residential Realty, is available on the Company's web site at
http://www.smithreit.com and also through PR Newswire's Company News on Call
by fax at 1-800-758-5804, ext. 101271, or at http://www.prnewswire.com .
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.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Three Months Ended March 31,
(dollars in thousands, except per %
share data) 2001 2000 Change
Financial Highlights
Revenue from the Operating Partnership $106,576 $88,854 19.9%
Funds From Operations of the Operating
Partnership 38,358 30,042 27.7%
Funds From Operations - attributable to
shareholders 25,467 18,889 34.8%
Per Share - basic $0.89 $0.81 9.9%
Per Share - diluted (a) $0.88 $0.80 10.0%
Net Income - attributable to common
shareholders 12,905 10,614 21.6%
Per Common Share - basic $0.58 $0.51 13.7%
Per Common Share - diluted $0.56 $0.51 9.8%
Dividends Declared per Share $0.585 $0.55 6.4%
Total Assets $2,170,786 $1,809,520 20.0%
Interest Coverage Ratio 2.98 3.09
As of March 31,
Apartment Units 2001 2000
Core Portfolio 19,712 17,424
Acquisition/Disposition
Portfolio 1,044 5,251
Redevelopment Portfolio 5,479 1,912
Development Portfolio (in
service) 951 1,298
Total 27,186 25,885
(a) Weighted average shares and partnership units outstanding on a
diluted basis during the periods were as follows (in 000's):
Three Months Ended March 31,
2001 2000
Common Shares and equivalents 23,262 21,101
Convertible Preferred
Shares/Units 7,233 2,640
Common Partnership Units 13,245 13,835
Total Shares and Partnership
Units 43,740 37,576
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Three Months Ended March 31,
(dollars in thousands, except per
share data) 2001 (a) 2000 % Change
REVENUE $106,576 $88,854 19.9%
EXPENSES
Operating expenses (45,493) (35,499) 28.2%
Depreciation and amortization (12,592) (10,567) 19.2%
48,491 42,788 13.3%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 895 783 14.3%
EQUITY IN INCOME OF PROPERTY SERVICE
BUSINESSES 2,983 519 474.8%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (3,856) (2,695) 43.1%
Interest expense, net (21,873) (17,793) 22.9%
NET INCOME OF THE OPERATING
PARTNERSHIP 26,640 23,602 12.9%
Minority Interest (8,538) (7,977) 7.0%
Net Income 18,102 15,625 15.9%
Less income attributable to
preferred shares (5,197) (5,011) 3.7%
Net Income attributable to
common shares $12,905 $10,614 21.6%
Net Income per common share -
basic $0.58 $0.51 13.7%
Net Income per common share -
diluted $0.56 $0.51 9.8%
NET INCOME OF THE OPERATING
PARTNERSHIP $26,640 $23,602 12.9%
Preferred dividends (b) (989) (4,473) -77.9%
Depreciation of rental
property 12,384 10,567 17.2%
Depreciation of unconsolidated
properties 323 239 35.1%
Amortization of goodwill - 107 -100.0%
FUNDS FROM OPERATIONS OF THE
OPERATING
PARTNERSHIP 38,358 30,042 27.7%
Minority Interest (12,891) (11,153) 15.6%
FFO attributable to shareholders $25,467 $18,889 34.8%
Funds From Operations per share
- basic $0.89 $0.81 9.9%
Funds From Operations per share
- diluted $0.88 $0.80 10.0%
(a) Includes consolidated results of Smith Realty Company due to change
in voting control.
(b) Includes Preferred Shares which are not considered common share
equivalents for the period in question.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Portfolio Details
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Three Months Ended March 31,
(dollars in thousands) 2001 2000 (e) % Change
CORE PORTFOLIO (a)
Revenue $73,964 $68,187 8.5%
Operating Expenses (28,552) (25,987) 9.9%
45,412 42,200 7.6%
ACQUISITION/DISPOSITION PORTFOLIO (b)
Revenue 4,598 4,328
Operating Expenses (1,657) (1,762)
2,941 2,566 N/A
REDEVELOPMENT PORTFOLIO (c)
Revenue 17,483 12,218
Operating Expenses (8,094) (5,578)
9,389 6,640 N/A
DEVELOPMENT PORTFOLIO (d)
Revenue 5,732 3,295
Operating Expenses (2,311) (1,799)
3,421 1,496 N/A
RETAIL PORTFOLIO
Revenue 628 826 -24.0%
Operating Expenses (487) (373) 30.6%
141 453 -68.9%
TOTAL PORTFOLIO
Revenue 102,405 88,854 15.3%
Operating Expenses (41,101) (35,499) 15.8%
$61,304 $53,355 14.9%
(a) Includes 19,712 apartment units.
(b) Includes the following properties:
2000 Acquisitions 2000 Dispositions
New River Village (Southeast FL) Orleans Village
Delaware Place (Chicago, IL) Berkeley
Reston Landing (Tysons/Dulles, VA) Worldgate Centre
2201 Wilson Blvd (Rosslyn/Ballston, VA)
(c) Includes the following properties:
Buchanan House (Crystal City, VA)
Mirador (Southeast FL)
Harbour House (Southeast FL)
Ocean View (Southeast FL)
Ocean Crest Club (Southeast FL)
Ocean Crest Beach (Southeast FL)
Sagamore Towers (Boston, MA)
(d) Includes the following properties: *
Alban Towers (Washington, D.C.)
One Superior Place (Chicago, IL)
Park Connecticut (Washington, D.C.)
* Excludes 1 project under contingent pre-purchase agreement.
(e) Certain amounts have been reclassified to conform with the current
year's presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Portfolio Statistics
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units Q1 01 % of Total
(000's)
WASHINGTON, D.C. 3,595 $13,468 18.2%
NORTHERN VIRGINIA
Crystal City 4,007 16,280 22.0%
Rosslyn/Ballston 1,674 7,751 10.5%
Tysons/Dulles 2,617 8,926 12.1%
Other 3,525 11,488 15.5%
Total Northern Virginia 11,823 44,445 60.1%
BOSTON 469 3,093 4.2%
CHICAGO 3,825 12,958 17.5%
CORE RESIDENTIAL PORTFOLIO 19,712 $73,964 100%
REDEVELOPMENT PORTFOLIO (1) 2,980 $9,417 N/A
(1) Reflects properties held as of December 31, 1999 (Buchanan House,
Mirador, Ocean View).
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Portfolio Statistics
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Monthly GOI
Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market Q1 01 Q1 00 Q1 01 Q1 00
WASHINGTON, D.C. $1,249 10.3% 97.0% -0.3%
NORTHERN VIRGINIA
Crystal City 1,354 6.4% 95.7% -0.7%
Rosslyn/Ballston 1,543 10.2% 97.5% 0.0%
Tysons/Dulles 1,137 8.5% 95.8% -1.8%
Other 1,086 8.6% 97.4% -0.6%
Total Northern Virginia 1,253 8.0% 96.4% -0.9%
BOSTON 2,198 9.5% 99.8% 0.4%
CHICAGO 1,129 7.9% 94.4% 0.3%
CORE RESIDENTIAL PORTFOLIO $1,251 8.5% 96.3% -0.5%
REDEVELOPMENT PORTFOLIO (1) $1,053 8.8% 96.0% -1.4%
(1) Reflects properties held as of December 31, 1999 (Buchanan House,
Mirador, Ocean View).
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Funds Available for Distribution (FAD) Calculation
For the Three Months Ended March 31, 2001 and 2000
(Unaudited)
Three Months Ended March 31,
(dollars in thousands, except
per share data) 2001 2000 % Change
FFO OF THE OPERATING PARTNERSHIP $38,358 $30,042 27.7%
Amortization of deferred
financing costs 390 390 0.0%
Recurring capital improvements
(a) (5,242) (1,872) 180.0%
Principal curtailments on
mortgage debt (1,469) (1,314) 11.8%
Other 300 236 27.1%
FAD OF THE OPERATING PARTNERSHIP 32,337 27,482 17.7%
Minority Interest (10,867) (10,202) 6.5%
FAD attributable to shareholders $21,470 $17,280 24.2%
Funds Available for Distribution
per Share - basic $0.75 $0.74 1.4%
Dividend declared per Share $0.585 $0.55 6.4%
Payout Ratios
As a percentage of FFO 66% 68%
As a percentage of FAD 78% 74%
(a) Capital improvements consist of the following:
Core Residential Portfolio $5,236 $1,754
Disposition & Retail Portfolios 6 118
Total Recurring capital
improvements 5,242 1,872
Non-recurring Core
Repositioning 7,010 5,071
Acquisition Portfolio 346 -
Redevelopment Portfolio 14,597 4,245
Total $27,195 $11,188
Non-recurring Core Repositioning improvements (primarily kitchen and
bath renovations) as well as capital improvements on the acquisition and
redevelopment portfolios are excluded from the FAD calculation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Debt Composition
As of March 31, 2001
(Unaudited)
Average Average
Years
Interest Dollars in % of to
Matur-
Rate Thousands Total ity
Fixed Rate Debt
Long Term Mortgages 7.26% $1,109,088 84.9% 9.0
Variable Rate Debt
Construction Loans 6.55% 22,137 1.7% 0.9
$300M Revolver 6.46% 134,000 10.3% 9.2
$100M Revolver 6.25% 41,000 3.1% 2.8
$50M Revolver N/A - 0.0% 2.8
Sub-Total 6.43% 197,137 15.1% 6.9
Total Debt 7.13% $1,306,225 100.0% 8.7
Scheduled principal payments:
Apr. 2001 - Dec. 2001 37,658
Year Ending December 31,
2002 27,691
2003 6,130
2004 76,326
2005 8,456
2006 108,378
Thereafter 1,041,586
$1,306,225
As of As of As of As of As of
3/31/01 12/31/00 9/30/00 6/30/00 3/31/00
Debt to Total Market
Capitalization Ratio 39.4% 37.3% 36.1% 39.5% 40.5%
Market Capitalization
(in millions) $3,319 $3,278 $3,106 $2,730 $2,644
Stock Price $45.490 $47.000 $45.375 $38.000 $36.125
* Debt to Total Market Capitalization Ratio at 3/31/01 is based on
22,698,543 common shares, 7,232,949 convertible preferred shares/units,
and 13,213,990 partnership units outstanding at a common stock price of
$45.490, plus $50M of perpetual preferred shares.
SOURCE Charles E. Smith Residential Realty, Inc.
 back to top
Related links:
http://www.charlesesmith.com
CONTACT:
Investors: Greg Samay, 703-769-1069, or
Media: Susan Goyette, 703-769-6746, both of Charles E. Smith
Residential Realty, Inc.
|
