Company Declares Dividend of $0.55 per Share
ARLINGTON, Va., April 19 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today Funds From Operations (FFO) of $18.9 million for the quarter
ended March 31, 2000, an increase of 20.1% over the first quarter of 1999. The
Company's first quarter 2000 FFO per share was $0.80, up 11.1% over the prior
year's first quarter. Per share amounts are for diluted shares. The per
share increase is attributed to the core portfolio net operating income growth
of 7.8%, driven by a revenue increase of 5.8%.
"We are pleased to get 2000 off to an excellent start," said Ernest A.
Gerardi, Jr., President and CEO of Smith Residential Realty. "Our continued
strong core portfolio performance demonstrates the power of our urban living
strategy and the effectiveness of our operations. This, along with the leasing
success of our 809-unit One Superior Place in Chicago, bodes well for our $360
million development pipeline delivering over the next two years."
Dividend Declaration
The Board of Directors of Charles E. Smith Residential Realty, Inc.
declared a dividend of $0.55 per share for the quarter ended March 31, 2000.
The dividend will be payable on May 12, 2000, to all shareholders of record as
of May 2, 2000.
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 revenue from rental properties was $88.9
million for the first quarter of 2000, an increase of 28.7% over the first
quarter of 1999. The Operating Partnership's operating income from rental
properties before depreciation was $53.4 million for the first quarter of
2000, up 28.6% over the first quarter of 1999. The Operating Partnership's
total Funds from Operations (FFO) was $30.0 million for the first quarter of
2000, an increase of 18.3% over the first quarter of 1999.
Quarterly Conference Call
The Company will hold a conference call on Thursday, April 20, 2000, to
review the information reported in this release. The conference call will
begin at 11:00 AM (EST). To participate, please call 1-888-211-7905 shortly
before 11:00 AM that day, and identify yourself as a participant in the
Charles E. Smith Residential Realty First Quarter 2000 conference call.
If you are unable to join the call at 11:00 AM, a recording will be available
from 1:00 PM (EST), April 20th until 1:00 PM (EST), April 23rd. To access
this service, please call 1-800-633-8284 and enter Reservation Number 14529812
followed by the "#" sign.
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 26,000 units and has approximately 3,500 units under
construction or pre-purchase agreement. The total market capitalization of the
Company -- Charles E. Smith Residential Realty, Inc., including its Operating
Partnership -- exceeds $2.6 billion.
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
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.
(Table to Follow)
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three Months Ended March 31, 2000 and 1999
(Unaudited)
3 Months Ended March 31,
(dollars in thousands,
except per share data) 2000 1999 % Change
Financial Highlights
Revenue from the Operating Partnership $88,854 $69,033 28.7%
Funds From Operations of the Operating
Partnership 30,042 25,398 18.3%
Funds From Operations - attributable
to shareholders 18,889 15,730 20.1%
Per Share - basic $0.81 $0.72 12.5%
Per Share - diluted (a) $0.80 $0.72 11.1%
Net Income of the Operating Partnership $23,602 $19,551 20.7%
Net Income - attributable to common
shareholders 10,614 9,755 8.8%
Per Common Share - basic $0.51 $0.53 -3.8%
Per Common Share - diluted $0.51 $0.53 -3.8%
Dividends Declared per Share $0.55 $0.535 2.8%
Total Assets $1,809,520 $1,305,940 38.6%
Interest Coverage Ratio (b) 3.09 3.13
As of As of
Apartment Units March 31, 2000 March 31, 1999
Core Portfolio 17,424 17,424
Acquisition/Disposition Portfolio 7,163 2,428
Development Portfolio (in service) 1,298 678
Total 25,885 20,530
(a) Weighted average shares and partnership units outstanding on a diluted
basis during the periods were as follows (in 000's):
3 Months Ended March 31,
2000 1999
Common Shares (includes common
share equivalents) 21,101 18,606
Convertible Preferred Shares
(Series A & B) 2,640 3,354
Partnership Units 13,835 13,418
Total Shares and Partnership Units 37,576 35,378
(b) Excludes gains on sales and extraordinary losses on extinguishment of
debt.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three Months Ended March 31, 2000 and 1999
(Unaudited)
3 Months Ended March 31,
(dollars in thousands,
except per share data) 2000 1999 (c) % Change
RENTAL PROPERTIES (a)
Revenue $88,854 $69,033 28.7%
Operating expenses (35,499) (27,558) 28.8%
Depreciation and amortization (10,567) (8,228) 28.4%
42,788 33,247 28.7%
EQUITY IN INCOME OF UNCONSOLIDATED
PROPERTIES 783 116 575.0%
EQUITY IN INCOME OF PROPERTY SERVICE
BUSINESSES (PSBs) 519 2 N/A
OTHER INCOME AND EXPENSES
Corporate general and administrative
expenses (2,695) (2,209) 22.0%
Interest expense, net (17,793) (13,104) 35.8%
Gain on sales -- 1,858 -100.0%
Extraordinary item - loss on
extinguishment of debt -- (359) -100.0%
NET INCOME OF THE OPERATING PARTNERSHIP 23,602 19,551 20.7%
Minority Interest (7,977) (7,442) 7.2%
Net Income 15,625 12,109 29.0%
Less income attributable
to preferred shares (5,011) (2,354) 112.9%
Net Income attributable
to common shares $10,614 $9,755 8.8%
Net Income per common share - basic $0.51 $0.53 -3.8%
Net Income per common share - diluted $0.51 $0.53 -3.8%
NET INCOME OF THE OPERATING PARTNERSHIP $23,602 $19,551 20.7%
Preferred dividends (b) (4,473) (989) 352.3%
Gain on sales - (1,858) -100.0%
Depreciation of rental property 10,567 8,228 28.4%
Depreciation of unconsolidated
properties 239 -- N/A
Amortization of goodwill 107 107 0.0%
Extraordinary item - loss on
extinguishment of debt -- 359 -100.0%
FFO OF THE OPERATING PARTNERSHIP 30,042 25,398 18.3%
Minority Interest (11,153) (9,668) 15.4%
FFO attributable to shareholders $18,889 $15,730 20.1%
Funds From Operations per Share
- basic $0.81 $0.72 12.5%
Funds From Operations per Share
- diluted $0.80 $0.72 11.1%
(a) Details are shown on the following page.
(b) Excludes Series A & B, which are considered common share equivalents.
(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 Ended March 31, 2000 and 1999
(Unaudited)
3 Months Ended March 31,
(dollars in thousands) 2000 1999 (d) % Change
CORE RESIDENTIAL PORTFOLIO (a)
Revenue $61,587 $58,186 5.8%
Operating Expenses (23,495) (22,843) 2.9%
38,092 35,343 7.8%
ACQUISITION/DISPOSITION PORTFOLIO (b)
Revenue 19,130 6,726
Operating Expenses (8,786) (2,992)
10,344 3,734 N/A
DEVELOPMENT PORTFOLIO (c)
Revenue 5,690 1,567
Operating Expenses (2,408) (881)
3,282 686 N/A
RETAIL PORTFOLIO
Revenue 2,447 2,554 -4.2%
Operating Expenses (810) (842) -3.8%
1,637 1,712 -4.4%
TOTAL PORTFOLIO
Revenue 88,854 69,033 28.7%
Operating Expenses (35,499) (27,558) 28.8%
$53,355 $41,475 28.6%
(a) Includes 17,424 apartment units.
(b) Includes the following properties:
2000 Acquisitions 2000 Dispositions
Ocean View at Sunset Pointe (None)
- North (Southeast FL)
Ocean View at Sunset Pointe
- South (Southeast FL)
1999 Acquisitions 1999 Dispositions
Buchanan (Northern VA) The Manor
Parc Lincoln (Chicago, IL) Potomac View
Terrace (Chicago, IL) Columbian Stratford
Countryside (Chicago, IL) Windsor Towers
Somerset (Chicago, IL) Fort Chaplin
The Consulate (Washington, DC) Suburban Tower
Forte Towers (Southeast FL)
Ocean View at Aventura Beach
(Southeast FL)
(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 presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Core Residential Portfolio Statistics
For the Three Months Ended March 31, 2000 and 1999
(Unaudited)
Gross Monthly
Operating Income GOI Per Unit Occupancy
Number of % Change % Change
Apartment % of From From
Market/Sub-Market Units Q1 00 Total Q1 00 Q1 99 Q1 00 Q1 99
(000's)
WASHINGTON, D.C. 3,326 $11,234 18.2% $1,126 8.8% 97.7% -0.4%
NORTHERN VIRGINIA
Crystal City 4,007 15,306 24.9% 1,273 2.6% 96.4% -1.1%
Rosslyn/Ballston 1,110 4,640 7.5% 1,393 6.4% 96.8% 2.8%
Tysons/Dulles 2,617 8,230 13.4% 1,048 7.1% 97.5% 0.4%
Other 4,514 13,237 21.5% 978 7.3% 98.1% 1.3%
Total Northern
Virginia 12,248 41,413 67.3% 1,127 5.4% 97.2% 0.4%
BOSTON/CHICAGO 1,850 8,940 14.5% 1,611 4.5% 97.0% 2.3%
CORE RESIDENTIAL
PORTFOLIO 17,424 $61,587 100.0% $1,178 5.8% 97.3% 0.5%
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Funds Available for Distribution (FAD) Calculation
For the Three Months Ended March 31, 2000 and 1999
(Unaudited)
(dollars in thousands, 3 Months Ended March 31,
except per share data) 2000 1999 % Change
FFO OF THE OPERATING PARTNERSHIP $30,042 $25,398 18.3%
Amortization of deferred
financing costs 390 369 5.7%
Recurring capital improvements (a) (1,600) (2,851) -43.9%
Principal curtailments
on mortgage debt (1,314) (649) 102.5%
Other 236 12 1866.7%
FAD OF THE OPERATING PARTNERSHIP 27,754 22,279 24.6%
Minority Interest (10,303) (8,481) 21.5%
FAD attributable to shareholders $17,451 $13,798 26.5%
Funds Available for Distribution
per Share - basic $0.74 $0.63 17.5%
Dividend declared per Share $0.55 $0.535 2.8%
Payout Ratios
As a percentage of FFO 68% 74%
As a percentage of FAD 74% 85%
(a)Capital improvements consist
of the following:
Core Residential Portfolio $1,589 $2,707
Disposition Portfolio - 133
Retail Portfolio 11 11
Total Recurring capital
improvements 1,600 2,851
Non-recurring Core Repositioning 4,876 691
Total $6,476 $3,542
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 March 31, 2000
(Unaudited)
Average Average
Interest Dollars in % of Years to
Rate Thousands Total Maturity
Fixed Rate Debt
Long Term Mortgages 7.23% $865,365 80.8% 9.1
Variable Rate Debt
Construction Loans 7.24% 82,731 7.7% 1.3
$100M Revolver 7.17% 25,000 2.3% 0.9
$185M Revolver 7.11% 98,000 9.2% 0.9
Sub-Total 7.17% 205,731 19.2% 1.1
Total Debt 7.22% $1,071,096 100.0% 7.6
Maturity Schedule
2001 $249,410
2002 3,000
2004 29,605
2006 92,599
2007 84,199
2008 73,000
2009 212,185
2010 136,950
2011 38,000
2013 140,000
2020 12,148
$1,071,096
As of As of As of As of As of
3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
Debt to Total Market
Capitalization Ratio 40.5% 38.6% 38.8% 40.9% 43.8%
Market Capitalization
(in millions) $2,644 $2,509 $2,308 $2,113 $2,026
Stock Price $36.125 $35.375 $34.188 $33.938 $30.813
* Debt to Total Market Capitalization Ratio at 3/31/00 is based on
20,991,711 common shares, 2,640,325 convertible preferred shares, and
13,689,013 partnership units outstanding at a common stock price of
$36.125, $50M of perpetual preferred shares, $130M of Series E, F, G
& H convertible preferred shares, and $45M of Series H convertible
preferred partnership units.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.charlesesmith.com
CONTACT:
Investors, Chandler Spears, 703-769-1044 or
Media, Susan Goyette, 703-769-6746, both of Charles E. Smith
Residential Realty, Inc.
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