March 31, 2000 Performance Highlights
- Funds From Operations (FFO) increased 12 percent from one year ago
- Company completed industrial facility leases totaling 1.3 million
square feet and generating 9 percent increase in effective rents over
ending rates on expired leases
- Industrial same-store net operating income increased 10 percent from
one year ago
- Multifamily same-store net operating income increased 11 percent from
one year ago
- March 31, 2000 industrial occupancy rate: 97 percent
- March 31, 2000 multifamily occupancy rate: 95 percent
- 669 senior apartment units under development in California.
NEWPORT BEACH, Calif., May 3 /PRNewswire/ -- Pacific Gulf Properties Inc.
(NYSE: PAG), an equity real estate investment trust (REIT) that owns, develops
and manages industrial and multifamily properties today reported operating
results for the quarter ended March 31, 2000. In this quarter, pro forma
Funds From Operations (assuming the conversion of all preferred shares)
totaled $15.7 million, or $.67 per share. This represents an increase of 12%
per share over the $14 million, or $0.60 per share, generated one year ago,
due primarily to increases in same-store rents.
Net operating income, or gross rental income less rental operating
expenses, for the first quarter of 2000, was $24.9 million on revenues of
$32.9 million, compared with $22.1 million on revenues of $29.7 million for
the same period in 1999. This represents a 13% increase for the Company.
Income before gain on sale of real estate increased 9%, from $7.7 million for
the first quarter of 1999 to $8.4 million for the first quarter of 2000. Due
to the Company's sale of its Park Place Apartments in Southern California, at
a gain of $3.4 million in the first quarter of 1999, income available to
common shareholders decreased in the first quarter of 2000 to $8.1 million, or
$0.39 per fully diluted share, compared with $9.8 million, or $.48 per fully
diluted share, in the first quarter of 1999.
Said Pacific Gulf Properties' Chairman and Chief Executive Officer, Glenn
L. Carpenter, "The Company's strong operating performance and growth during
the first quarter of 2000 confirm our successful positioning within both the
industrial and senior rental housing sectors. We will continue to invest in
industrial product to fit the needs of the growing small to mid-sized
businesses in the West.
"Also of significance is the Company's increasing emphasis on active
seniors housing. With 2,107 apartment units designed exclusively for
individuals 55 years and older, including 669 units currently under
construction, we intend to continue our emphasis on developing housing
communities geared to this growing population segment," Mr. Carpenter said.
INDUSTRIAL PORTFOLIO
Within the Company's industrial portfolio, Pacific Gulf Properties
completed leases for 1.3 million square feet at its stabilized properties
during the first quarter, generating a 9% increase in effective rental rates
over ending rates on expired leases. Industrial properties generated 82% of
the Company's total net operating income for the three months ended March 31,
2000.
Same-store results for the 12.8 million square feet of industrial
properties owned during both the first quarter of 2000 and the first quarter
of 1999 reflect an increase in net operating income of 10%, due primarily to a
9% increase in rental revenues.
As of March 31, 2000 the occupancy rate in the Company's industrial
portfolio was 97%, up from 95% as of March 31, 1999. During the first three
months of 2000, Pacific Gulf sold two properties, recognizing a gain of
$891,000, and acquired a 7.6 acre site in Rancho Santa Margarita, California
on which the Company plans to construct a 110,000 square foot business park.
MULTIFAMILY PORTFOLIO
Same-store net operating income in the multifamily operations increased
11% during the first quarter versus the same period one year ago, resulting
primarily from a 8% increase in rental revenues. Overall occupancy for the
multifamily portfolio was 95% on March 31, 2000, matching the occupancy rate
on March 31, 1999.
At March 31, 2000, Pacific Gulf's multifamily portfolio was comprised of
3,069 units. Of these units, 1,631 are family-style apartment units which are
being marketed for sale. The Company has executed listing agreements with
brokers to market these properties and expects to complete the disposition of
these properties before December 31, 2000.
The remaining 1,438 units are communities designed for active seniors age
55 and older. The Company intends to continue its investment in the active
senior communities and currently has 669 senior apartment units under
development in Anaheim Hills, Temecula and Sacramento, California.
Pacific Gulf Properties is a real estate investment trust (REIT) that
owns, develops and manages a growing portfolio of industrial properties
targeting small to mid-size tenants in selected high-growth U. S. western
markets. The Company's industrial portfolio is comprised of 75 properties
encompassing more than 15.5 million square feet of space. Pacific Gulf
Properties also maintains a smaller multifamily portfolio of eight rental
communities comprising almost 1,500 units designed for the burgeoning
population of active seniors age 55 and older. The Company is headquartered
in Newport Beach, California. For more information, please visit the
Company's web site at http://www.pacificgulf.com .
Forward-looking statements and comments in this press release are made
pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934. Such statements relating to, among other things,
events, conditions, prospects and financial trends that may affect the
company's future plans of operations, business strategy, growth of operations
and financial position are not guarantees of future performance and are
necessarily subject to risks and uncertainties, some of which are significant
in scope and nature, including without limitation, increased competition,
adverse economic trends, increasing interest rates and other factors.
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, December 31,
2000 1999
(unaudited) (audited)
ASSETS
Real estate assets
Operating properties
Land $231,707 $232,665
Buildings 657,578 657,347
889,285 890,012
Accumulated depreciation (79,497) (72,715)
809,788 817,297
Properties under development,
including land 64,872 52,815
874,660 870,112
Cash and cash equivalents 2,067 2,177
Accounts receivable 4,063 4,005
Other assets 16,409 15,627
$897,199 $891,921
LIABILITIES AND SHAREHOLDERS' EQUITY
Loans payable $424,457 $418,343
Accounts payable and accrued liabilities 17,959 17,244
Dividends payable 10,374 10,366
452,790 445,953
Minority interests in
consolidated partnerships 18,049 18,077
Commitments and contingencies --- ---
Shareholders' equity
Preferred shares, $.01 par value;
10,000,000 shares authorized;
2,763,116 Senior Cumulative
Convertible Class A shares
outstanding at March 31, 2000,
and Dec. 31, 1999, respectively 28 28
Preferred shares, $.01 par value;
300,000 shares authorized; Class C
Junior Participating Cumulative
Preferred Stock; no shares outstanding --- ---
Common shares, $.01 par value;
100,000,000 shares authorized;
20,704,495 and 20,685,402 shares
outstanding at March 31, 2000 and
December 31,1999, respectively 208 207
Less: Restricted stock and notes
receivable issued for common stock (2,008) (1,011)
Additional paid-in capital 425,559 424,450
Retained Earnings 2,573 4,217
426,360 427,891
$897,199 $891,921
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2000 1999
REVENUES
Rental income
Industrial properties $26,226 $23,330
Multifamily properties 6,704 6,360
32,930 29,690
EXPENSES
Rental property expenses
Industrial properties 5,814 5,283
Multifamily properties 2,230 2,277
8,044 7,560
Depreciation 7,261 6,060
Interest (including amortization
of debenture discount and financing
costs of $172 and $213, respectively) 7,071 6,737
General and administrative expenses 1,827 1,380
Minority interest in earnings
of consolidated partnerships 302 297
24,505 22,034
INCOME BEFORE GAINS ON SALE OF REAL ESTATE 8,425 7,656
Gains on sale of real estate 891 3,351
NET INCOME 9,316 11,007
Less preferred dividend requirements 1,264 1,236
INCOME AVAILABLE TO COMMON SHAREHOLDERS $8,052 $9,771
Earnings per share
Basic $0.39 $0.49
Diluted $0.39 $0.48
FUNDS FROM OPERATIONS(a)
SUPPLEMENTAL TABLE
(in thousands, except share data)
For the Three Months Ended
March 31, March 31,
2000 1999
Income Available to Common Shareholders $8,052 $9,771
Gain on sale of real estate (891) (3,351)
Depreciation and amortization 7,261 6,060
Funds From Operations $14,422 $12,480
Weighted Average Common Shares Outstanding 20,603 19,952
Funds From Operations per Common Share $0.70 $0.63
(a) Industry analysts generally consider Funds From Operations ("FFO") an
appropriate measure of performance of a real estate investment trust
("REIT"). Funds From Operations present amounts available to common
shareholders and is defined as net income (computed in accordance
with generally accepted accounting principles), excluding gains (or
losses) from debt restructuring and sales of property, plus
depreciation and amortization (excluding amortization of deferred
financing costs and depreciation of non real estate assets), and
after adjustments for unconsolidated partnerships and joint ventures
and preferred dividend requirements.
PRO FORMA FUNDS FROM OPERATIONS (b)
Funds From Operations $14,422 $12,480
Preferred Dividend Requirements 1,264 1,236
Interest Expense on Debentures --- 256
Amortization of Debenture
Discount and Costs --- 30
Pro Forma Funds From Operations $15,686 $14,002
Weighted Average
Common Shares Outstanding 20,603 19,952
Additional Shares Assuming Conversion
Other (c) 91 106
Preferred Stock 2,763 2,763
Debentures --- 653
Pro Forma Weighted Average
Outstanding Shares 23,457 23,474
Pro Forma Funds From Operations
per Common Share $0.67 $0.60
(b) Pro Forma Funds From Operations Calculations -- Assumes the
conversion of Convertible Subordinated Debentures and Preferred Stock
and excludes the conversion of limited partnership units (consistent
with the Company's previous calculation methodology).
(c) Represents non-vested restricted stock and options as converted.
SOURCE Pacific Gulf Properties Inc.
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Related links:
http://www.pacificgulf.com
Company News On-Call:
http://www.prnewswire.com/comp/671475.html or fax,
800-758-5804, ext. 671475
CONTACT:
Donald G. Herrman, Chief Financial Officer of
Pacific Gulf Properties Inc., 949-223-5000; or Victoria J. Baker,
General Information, 703-370-8652, for Pacific Gulf Properties
Inc.
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