NEWPORT BEACH, Calif., May 5 /PRNewswire/ -- Glenn L. Carpenter, Chairman
of the Board and Chief Executive Officer of Pacific Gulf Properties Inc.
(NYSE: PAG), reported today that revenues and income available to common
shareholders for the quarter ended March 31, 1998 were $25,318,000 and
$6,208,000. This compares with $14,813,000 and $3,082,000 for the quarter
ended March 31, 1997. Income available to common shareholders per share for
the quarter ended March 31, 1998 was $.31 (basic earnings per share), compared
with $.27 (basic earnings per share) for the similar period in 1997. Funds
from operations for the quarter ended March 31, 1998 were $12,103,000, or $.52
per share assuming the conversion of all preferred shares and all remaining
subordinated debentures ("proforma basis"), as compared with $5,766,000, or
$.47 per share, for the quarter ended March 31, 1997 on the same basis.
Carpenter commented that the increase in first quarter per share results
were primarily attributable to internal growth from the existing portfolio.
Carpenter further stated that these increases were a result of the Company's
current business strategy of growing from within and not relying on external
growth. However, the Company still was active in its acquisition program
during the first quarter, closing escrow on 1,079,461 square feet of
industrial property for a total investment of $54,005,000.
During the first quarter, Pacific Gulf leased approximately 793,000 square
feet of industrial space at its stabilized properties. The effective rental
rates on these leases were on average 10% higher than the ending rate on the
previous leases for the same space. Overall occupancy for the stabilized
industrial portfolio was 96% as of March 31, 1998, compared with 97% as of
March 31, 1997.
For the multifamily operations, "same store" net operating income
increased from $7,896,000 in the three-month period ended March 31, 1997, to
$8,568,000 for the similar period in 1998, representing an increase of 9%.
Overall occupancy for the multifamily portfolio was 95% as of March 31, 1998,
compared with 94% as of March 31, 1997.
In 1997, the Company adopted and reported earnings per share giving effect
to the Financial Accounting Standards Board's Statement of Financial
Accounting Standards No. 128 which requires the calculation and disclosure of
basic and diluted earnings per share including a reconciliation of the
weighted average shares utilized in the calculations. As restated for the
change and as reflected on the attached consolidated statements of operations
and on the Funds from Operations supplemental table, the Company's
calculations of weighted average outstanding shares for 1997 have been revised
and, accordingly, are not comparative to previous releases.
Pacific Gulf Properties Inc., a self-administered and self-managed equity
real estate investment trust, owns, operates, leases, acquires, rehabilitates
and develops industrial and multifamily properties located in selected markets
within the western United States.
Financial tables follow
Other supplemental data available upon request
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Three Months Ended March 31
1998 1997
(Unaudited)
REVENUES
Rental operations
Industrial properties $16,307 $7,232
Multifamily properties 9,011 7,581
25,318 14,813
EXPENSES
Rental property operating expenses
Industrial properties 3,783 1,816
Multifamily properties 3,238 2,918
7,021 4,734
Depreciation 4,390 2,356
Interest (including amortization of
debenture discount and financing costs
of $221 and $222 respectively) 5,275 3,953
General and administrative expenses 1,111 688
Minority partners' interest in earnings
of consolidated partnerships 106 --
17,903 11,731
NET INCOME $7,415 $3,082
Less preferred dividend requirements 1,207 --
INCOME AVAILABLE TO COMMON SHAREHOLDERS $6,208 $3,082
Earnings per share
Basic $0.31 $0.27
Diluted $0.31 $0.26
FUNDS FROM OPERATIONS (a)
SUPPLEMENTAL TABLE
(In thousands except share data)
For the Three Months Ended
Mar. 31, 1998 Mar. 31, 1997
Income Available to Common Shareholders $6,208 $3,082
Depreciation 4,390 2,356
Funds from Operations 10,598 5,438
Weighted Average Common Shares Outstanding (b) 19,930 11,440
Funds from Operations per Common Share $.53 $.48
(a) Industry analysts generally consider funds from operation ("FFO") an
appropriate measure of performance of a real estate investment trust
("REIT"). Funds from operations represent 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.
(b) 1997 calculations have been revised to conform to the current year
presentation.
PROFORMA FUNDS FROM OPERATIONS (c)
Funds from Operations $10,598 $5,438
Preferred Dividend Requirements 1,207 --
Interest Expense on Debentures 264 291
Amortization of Debenture Discount and Costs 34 37
Pro Forma Funds from Operations $12,103 $5,766
Weighted Average Common Shares Outstanding 19,930 11,440
Additional Shares Assuming Conversion
Other (d) 105 96
Preferred Stock 2,763 --
Debentures 669 713
Proforma Weighted Average Outstanding Shares 23,467 12,249
Proforma Funds from Operations per Common Share $.52 $.47
(c) Proforma 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).
(d) Represents non-vested restricted stock and options as converted.
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands except share data)
Mar. 31, 1998 Dec. 31, 1997
(Unaudited)
ASSETS
Real estate assets
Operating Properties
Land $201,382 $185,789
Buildings 557,432 515,160
758,814 700,949
Accumulated depreciation (43,475) (39,148)
715,339 661,801
Properties under development, including land 36,953 32,107
752,292 693,908
Cash and cash equivalents 3,526 1,466
Receivables 3,894 3,399
Other assets 13,775 13,698
$773,487 $712,471
LIABILITIES AND SHAREHOLDERS' EQUITY
Loans payable $334,845 $283,852
Accounts payable and accrued liabilities 11,692 9,009
Dividends payable 9,602 8,852
Convertible subordinated debentures 12,376 12,592
368,515 314,305
Minority partners' interest in consolidated partnerships18,207 9,326
Commitments and contingencies -- --
Shareholders' equity
Preferred shares, $.01 par value; 5,000,000 shares
authorized; 1,351,351 Senior Cumulative Convertible
shares Class A and 1,411,765 shares Class B issued and
outstanding at March 31, 1998 and December 31,
1997, respectively 28 28
Common shares, $.01 par value; 25,000,000 shares
authorized; 19,987,145 and 19,968,189 shares outstanding
at March 31, 1998 and December 31, 1997, respectively 200 200
Excess shares, $.01 par value; 30,000,000 shares
authorized; no shares outstanding -- --
Outstanding restricted stock (771) (818)
Additional paid-in capital 411,252 411,187
Distributions in excess of earnings (23,944) (21,757)
386,765 388,840
$773,487 $712,471
SOURCE Pacific Gulf Properties Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 671475
CONTACT:
Donald G. Herrman, Chief Financial Officer,
or Cindy L. Smith, Investor Relations, both of Pacific Gulf
Properties Inc., 949-223-5000
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