SAN DIEGO, May 15 /PRNewswire/ -- Burnham Pacific Properties, Inc.
(NYSE: BPP) announced today operating results for the first quarter ended
March 31, 2000.
Funds From Operations ("FFO") for the first quarter of 2000 on a
fully-diluted basis was $6.3 million or $0.20 per share (based on
32,283,000 shares), as compared to $10.1 million or $0.27 per share (based on
37,112,000 shares) for the quarter ended March 31, 1999. Fully-diluted FFO
for the first quarter of 2000 does not assume the conversion of the Company's
convertible preferred stock and other common stock equivalents because such
conversion would be accretive to the Company. Fully-diluted FFO for the first
quarter of 1999 does not assume the conversion of the Company's convertible
preferred stock but does assume conversion of other common stock equivalents.
FFO for both the 1999 and 2000 periods is calculated in accordance with the
revised definition adopted by the Board of Governors of the National
Association of Real Estate Investment Trusts (NAREIT) effective January 1,
2000. FFO is considered the primary earnings measure for equity REITs.
First quarter earnings are in line with the Company's expectations, and
the results are consistent with the dilutive effects for the year 2000
referred to in the Company's 1999 fourth quarter earnings release. The
expected year-over-year decline in FFO for the quarter was primarily
attributable to lower revenues resulting from asset sales occurring subsequent
to March 31, 1999, a decrease in lease termination fees, and an increase in
borrowing costs which is partially due to the refinancing of the Company's
line of credit during the fourth quarter of 1999. We anticipate that the
foregoing dilutive effects will continue to impact the Company's earnings.
J. David Martin, Burnham Pacific's Chief Executive Officer and President,
commented, "We continue active discussions with certain interested parties in
pursuit of strategic alternatives. We are also continuing the sale of
selected assets to reduce debt and increase our financial flexibility."
Review of Results
For the first quarter ended March 31, 2000, revenues decreased
$4.0 million to $31.1 million from $35.1 million in the first quarter of 1999.
Including the one-time revenue and expense items referenced below, net income
available to common shareholders was ($80,000) as compared to $311,000 or
$0.01 per share for the prior year period.
Revenues in the 2000 and 1999 three-month periods included one-time lease
termination fees of $76,000 and $762,000, respectively. The 2000 three-month
period was unfavorably impacted by costs of $339,000 associated with the
Company's pursuit of strategic alternatives. The 1999 three-month period was
unfavorably impacted by costs of $1.5 million related to the Company's
decision to outsource its property management function to third-party
providers, $748,000 associated with the abandonment of prospective acquisition
transactions in process prior to the AMB portfolio acquisition, and
$1.9 million recognized as the cumulative effect of a change in accounting
principle.
Leasing Results
The Company executed leases for approximately 233,000 square feet during
the first quarter at a weighted average rent of $17.05 per square foot per
year, with approximately 73,000 square feet representing space not previously
occupied, and approximately 120,000 square feet representing renewals of
existing tenants. Of the total, approximately 25,000 square feet was leased
to anchor tenants (tenants greater than 14,000 square feet) at a weighted
average rent of $12.00 per square foot per year, as compared to a weighted
average rent for anchor tenants in the Company's overall portfolio of
$9.35 per square foot per year; and approximately 208,000 square feet was
leased to non-anchor tenants at a weighted average rent of $17.66 per square
foot per year, as compared to a weighted average rent for non-anchor tenants
in the Company's overall portfolio of $16.42 per square foot per year.
Rental rates on renewals increased approximately 7% over the previous
rates. Same-store net operating income increased 2.7% in the current quarter,
as compared to the same quarter a year ago, and economic occupancy at
March 31, 2000 was 91.4%.
Burnham Pacific is a real estate investment trust (REIT) that focuses on
value-added retail real estate opportunities throughout the United States. On
a quarterly basis, Burnham Pacific makes available supplemental information
that includes property and corporate level detail which is available upon
request. More information on Burnham Pacific may be obtained by calling
800.462.5181, or visiting the Company's web site at http://www.burnhampacific.com.
This news release contains forward-looking statements that predict or
indicate future events or trends or that do not relate to historical matters.
We cannot assure the future events or outcomes of the matters described in
these statements; rather, these statements merely reflect our current
expectations of the approximate outcome of the matter discussed. Investors
should read the documents the Company files from time to time with the SEC,
including the risk factors that were disclosed in our Form 10-K that was filed
with the SEC on March 30, 2000. You should be aware that the risk factors
contained in that Form 10-K may not be exhaustive. Therefore, we recommend
that you read the information in that Form 10-K together with other reports
and documents that we file with the SEC from time to time, including our Forms
10-K, 10-Q and 8-K which may supplement, modify, supersede or update those
risk factors.
CONSOLIDATED STATEMENTS OF INCOME
Quarter Ended Quarter Ended Quarter Ended
03/31/2000 03/31/1999 12/31/1999
Revenues
Rents $29,295 $34,435 $30,096
Fee Income 1,200 384 1,020
Interest and Other 565 316 639
Total Revenues 31,060 35,135 31,755
Costs and Expenses
Interest 9,145 9,888 8,522
Rental Operating 9,513 9,374 10,026
General & Administrative 2,246 1,754 2,120
Restructuring Charge 0 1,500 0
Abandoned Acquisition Costs 0 748 0
Costs Associated with Unsolicited
Proposals and Pursuit of
Strategic Alternatives 339 0 1,876
Depreciation & Amortization 7,463 7,161 7,387
Total Costs and Expenses 28,706 30,425 29,931
Income from Operations before
Income from Unconsolidated
Subsidiaries, Minority Interest,
Gain on Sales of Real Estate and
Cumulative Effect of Change in
Accounting Principle 2,354 4,710 1,824
Income (Loss) from
Unconsolidated Subsidiaries 49 (31) 431
Minority Interest (1,083) (1,102) (1,074)
Gain on Sales of Real Estate 0 0 872
Income before Cumulative Effect
of Change in Accounting
Principle 1,320 3,577 2,053
Cumulative Effect of Change
in Accounting Principle 0 (1,866) 0
Net Income $1,320 $1,711 $2,053
Dividends Paid to
Preferred Stockholders (1,400) (1,400) (1,400)
Income (Loss) Available
to Common Stockholders $(80) $311 $653
Basic Earnings Per Share:
Income (Loss) before Cumulative
Effect of Change in
Accounting Principle $(0.002) $0.07 $0.02
Cumulative Effect of Change
in Accounting Principle 0.000 (0.06) 0.00
Net Income (Loss) $(0.002) $0.01 $0.02
Diluted Earnings Per Share:
Income (Loss) before
Cumulative Effect of Change
in Accounting Principle $(0.002) $0.07 $0.02
Cumulative Effect of Change
in Accounting Principle 0.000 (0.06) 0.00
Net Income (Loss) $(0.002) $0.01 $0.02
Funds from Operations-Diluted:
Income (Loss) before Cumulative
Effect of Change in
Accounting Principle $(80) $311 $653
Adjustments:
Depreciation & Amortization of
Real Estate and
Tenant Improvements 6,424 6,780 7,213
Cumulative Effect of Change
in Accounting Principle 0 1,866 0
Gain on Sales of Real Estate 0 0 (872)
Minority Interest 0 1,102 0
Funds from Operations-Diluted $6,344 $10,059 $6,994
Funds from Operations Per Share:
Basic $0.20 $0.28 $0.22
Diluted $0.20 $0.27 $0.22
Weighted Average Shares
Outstanding-FFO:
Basic 32,283,274 31,954,075 32,268,274
Diluted 32,283,274 37,111,634 32,268,274
CONSOLIDATED BALANCE SHEETS
03/31/2000 12/31/1999
ASSETS
Real Estate $1,037,932 $1,036,294
Less Accumulated Depreciation (71,598) (65,494)
Real Estate-Net 966,334 970,800
Real Estate Held for Sale 8,742 8,737
Cash and Cash Equivalents 6,031 11,119
Restricted Cash 11,956 9,827
Receivables-Net 9,364 8,413
Investment in Unconsolidated
Subsidiaries 3,783 3,650
Other Assets 24,993 22,469
Total $1,031,203 $1,035,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts Payable and Other Liabilities $16,152 $29,224
Tenant Security Deposits 2,608 2,606
Notes Payable 407,432 400,410
Line of Credit Advances 149,420 138,420
Total Liabilities 575,612 570,660
Commitments and Contingencies
Minority Interest 65,617 66,350
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 March 31, 2000
and December 31, 1999 28 28
Common Stock, Par Value $.01/Share,
95,000,000 Shares Authorized, 32,318,796
and 32,273,546 Shares Outstanding
at March 31, 2000 and
December 31, 1999, Respectively 323 323
Paid in Capital in Excess of Par 529,342 528,811
Dividends Paid in Excess of Net Income (139,719) (131,157)
Total Stockholders' Equity 389,974 398,005
Total $1,031,203 $1,035,015
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, 619-652-4700, fax 619-652-4711, dbplatt@bpac.com
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