Core Portfolio Net Operating Income Grows 7.5%
ARLINGTON, Va., July 18 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today Funds From Operations (FFO) for the Company's Operating
Partnership of $44.0 million for the quarter ended June 30, 2001, an increase
of 23.6% over the second quarter of 2000. The Company's second quarter 2001
FFO per diluted share was $1.00, up 9.9% over the prior year's second quarter.
For the six month period ended June 30, 2001, the Company's FFO was $1.88 per
diluted share, up 9.9% compared with the first six months of 2000.
"We are pleased with our healthy FFO and core portfolio NOI growth," said
Denny Minami, President of Smith Residential. "Our portfolio performance and
outlook continue on track and, with our second quarter results, we anticipate
that our performance for the year will exceed current consensus estimates. We
are also pleased with the positive response we have received to the planned
merger with Archstone Communities and preparations are proceeding smoothly."
Recent Events
In May of 2001, Charles E. Smith Residential Realty and Archstone
Communities (NYSE: ASN) announced plans to merge, creating a combined entity
that will operate under the name Archstone-Smith Trust. The combined company
will continue to use the Charles E. Smith brand name for its urban high-rise
portfolio, with the Archstone brand name used for other communities. Subject
to shareholder and other customary approvals, the merger is expected to close
in the third quarter 2001.
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 June 30, 2001.
The Smith Residential dividend will be payable on August 30, 2001, to all
shareholders of record as of August 16, 2001, consistent with Archstone
Communities' record and payment dates.
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 70% of its Operating Partnership
and is its sole general partner.
The Operating Partnership's total FFO was $44.0 million for the second
quarter of 2001, an increase of 23.6% over the second quarter of 2000. For
the first six months of 2000, the Operating Partnership's FFO was $82.4
million, up 27.4% over the same six month period of 2000.
The Operating Partnership's total portfolio revenue was $105.3 million for
the second quarter of 2001, an increase of 11.2% over the second quarter of
2000. For the first six months of 2001, the Operating Partnership's total
portfolio rental revenue was $207.7 million, up 13.2% over the same six month
period of 2000.
The Operating Partnership's portfolio operating income from rental
properties before depreciation for the second quarter of 2001 was $65.5
million, up 9.8% over the second quarter of 2000. For the first six months of
2001, portfolio operating income was $126.8 million, up 12.2% over the same
six month period of 2000.
Quarterly Conference Call
The Company will hold a conference call on Thursday, July 19, 2001, to
review the information reported in this release. The conference call will
begin at 11:00 AM (Eastern Time). To listen, please call 1-800-633-8741
shortly before 11:00 AM that day and identify yourself as a participant in the
Charles E. Smith Residential Realty Second 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 PM, July 19th until 1:30 PM, July 22nd.
To access the PostView, please call 1-800-633-8284 and enter reservation
number 19173674 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. As of July
2001, the Company owns or has an interest in a portfolio of over 30,000
apartments. Total capitalization of the Company, including its operating
partnership, exceeds $3.5 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
"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.
- Table to Follow -
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Three Months Ended June 30,
(dollars in thousands, except per
share data) 2001 2000 % Change
Financial Highlights
Revenue from the Operating Partnership $109,145 $94,716 15.2%
Funds From Operations of the Operating
Partnership 44,016 35,603 23.6%
Funds From Operations - attributable
to shareholders 29,442 23,050 27.7%
Per Share - basic $1.02 $0.92 10.9%
Per Share - diluted (a) $1.00 $0.91 9.9%
Net Income - attributable to common
shareholders 15,707 15,815 -0.7%
Per Common Share - basic $0.68 $0.75 -9.3%
Per Common Share - diluted $0.67 $0.73 -8.2%
Per Common Share - other (b) $0.75 $0.62 21.0%
Dividends Declared per Share $0.585 $0.55 6.4%
Total Assets
Interest Coverage Ratio (c) 3.22 3.11
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Six Months Ended June 30,
(dollars in thousands, except per share
data) 2001 2000 % Change
Financial Highlights
Revenue from the Operating Partnership $215,721 $183,570 17.5%
Funds From Operations of the Operating
Partnership 82,374 64,676 27.4%
Funds From Operations - attributable to
shareholders 54,897 40,858 34.4%
Per Share - basic $1.91 $1.73 10.4%
Per Share - diluted (a) $1.88 $1.71 9.9%
Net Income - attributable to common
shareholders 28,612 26,429 8.3%
Per Common Share - basic $1.26 $1.26 0.0%
Per Common Share - diluted $1.24 $1.24 0.0%
Per Common Share - other (b) $1.31 $1.13 15.9%
Dividends Declared per Share $1.17 $1.10 6.4%
Total Assets $2,221,206 $1,839,395 20.8%
Interest Coverage Ratio (c) 3.10 3.10
As of June 30,
Apartment Units 2001 2000
Core Portfolio 17,830 17,424
Acquisition/Disposition Portfolio 1,044 7,748
Redevelopment Portfolio 7,361 -
Development Portfolio (in service) 1,051 1,515
Total 27,286 26,687
(a) Weighted average shares and partnership units outstanding on a diluted
basis during the periods were as follows (in 000's):
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Common Shares and equivalents 23,726 21,604 23,426 21,348
Convertible Preferred Shares/Units 7,181 3,992 7,207 2,640
Common Partnership Units 13,178 13,668 13,210 13,751
Total Shares and Partnership
Units 44,085 39,264 43,843 37,739
(b) Excludes merger related costs and gain on sales from the diluted per
share calculation.
(c) Excludes merger related costs and gain on sales.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Three Months Ended June 30,
(dollars in thousands, except per
share data) 2001 (a) 2000 % Change
REVENUE $109,145 $94,716 15.2%
EXPENSES
Operating expenses (43,803) (35,084) 24.9%
Depreciation and amortization (12,808) (10,895) 17.6%
52,534 48,737 7.8%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 1,206 542 122.5%
EQUITY IN INCOME OF UNCONSOLIDATED
PROPERTY SERVICE BUSINESSES 4,007 1,636 144.9%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (3,279) (3,002) 9.2%
Interest expense, net (22,426) (20,048) 11.9%
Gain on sales - 4,161 -100.0%
Merger related costs (2,901) - N/A
NET INCOME OF THE OPERATING
PARTNERSHIP 29,141 32,026 -9.0%
Minority Interest (9,211) (11,200) -17.8%
Net Income 19,930 20,826 -4.3%
Less income attributable to
preferred shares (4,223) (5,011) -15.7%
Net Income attributable to
common shares $15,707 $15,815 -0.7%
Net Income per common share -
basic $0.68 $0.75 -9.3%
Net Income per common share -
diluted $0.67 $0.73 -8.2%
Net Income per common share -
other (b) $0.75 $0.62 21.0%
NET INCOME OF THE OPERATING
PARTNERSHIP $29,141 $32,026 -9.0%
Preferred dividends (c) (957) (3,504) -72.7%
Gain on sales - (4,161) -100.0%
Depreciation of rental property 12,586 10,895 15.5%
Depreciation of unconsolidated
properties 345 239 44.4%
Amortization of goodwill - 108 -100.0%
Merger related costs 2,901 - N/A
FUNDS FROM OPERATIONS OF THE
OPERATING
PARTNERSHIP 44,016 35,603 23.6%
Minority Interest (14,574) (12,553) 16.1%
FFO attributable to shareholders $29,442 $23,050 27.7%
Funds From Operations per share
- basic $1.02 $0.92 10.9%
Funds From Operations per share
- diluted $1.00 $0.91 9.9%
(a) Includes consolidated results of Smith Realty Company due to change in
voting control.
(b) Excludes merger related costs and gain on sales from the diluted per
share calculation.
(c) Includes Preferred Shares which are not considered common share
equivalents for the period in question.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Six Months Ended June 30,
(dollars in thousands, except per
share data) 2001 (a) 2000 % Change
REVENUE $215,721 $183,570 17.5%
EXPENSES
Operating expenses (89,296) (70,583) 26.5%
Depreciation and amortization (25,400) (21,462) 18.3%
101,025 91,525 10.4%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 2,101 1,325 58.6%
EQUITY IN INCOME OF UNCONSOLIDATED
PROPERTY SERVICE BUSINESSES 6,990 2,155 224.4%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (7,135) (5,697) 25.2%
Interest expense, net (44,299) (37,841) 17.1%
Gain on sales - 4,161 -100.0%
Merger related costs (2,901) - N/A
NET INCOME OF THE OPERATING
PARTNERSHIP 55,781 55,628 0.3%
Minority Interest (17,749) (19,177) -7.4%
Net Income 38,032 36,451 4.3%
Less income attributable to
preferred shares (9,420) (10,022) -6.0%
Net Income attributable to
common shares $28,612 $26,429 8.3%
Net Income per common share -
basic $1.26 $1.26 0.0%
Net Income per common share -
diluted $1.24 $1.24 0.0%
Net Income per common share -
other (b) $1.31 $1.13 15.9%
NET INCOME OF THE OPERATING
PARTNERSHIP $55,781 $55,628 0.3%
Preferred dividends (c) (1,946) (8,946) -78.2%
Gain on sales - (4,161) -100.0%
Depreciation of rental property 24,970 21,462 16.3%
Depreciation of unconsolidated
properties 668 478 39.7%
Amortization of goodwill - 215 -100.0%
Merger related costs 2,901 - N/A
FUNDS FROM OPERATIONS OF THE
OPERATING
PARTNERSHIP 82,374 64,676 27.4%
Minority Interest (27,477) (23,818) 15.4%
FFO attributable to shareholders $54,897 $40,858 34.4%
Funds From Operations per share
- basic $1.91 $1.73 10.4%
Funds From Operations per share
- diluted $1.88 $1.71 9.9%
(a) Includes consolidated results of Smith Realty Company due to change in
voting control.
(b) Excludes merger related costs and gain on sales from the diluted per
share calculation.
(c) 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 and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
(dollars in
thousands) 2001 2000(e) % Change 2001 2000(e) % Change
CORE PORTFOLIO (a)
Revenue $69,082 $64,552 7.0% $135,991 $126,277 7.7%
Operating Expenses (25,097) (23,642) 6.2% (51,078) (47,434) 7.7%
43,985 40,910 7.5% 84,913 78,843 7.7%
ACQUISITION/
DISPOSITION
PORTFOLIO (b)
Revenue 4,709 5,238 9,307 9,566
Operating Expenses (1,733) (1,824) (3,390) (3,586)
2,976 3,414 N/A 5,917 5,980 N/A
REDEVELOPMENT
PORTFOLIO (c)
Revenue 25,016 19,815 49,554 38,495
Operating Expenses (10,339) (7,647) (21,004) (15,420)
14,677 12,168 N/A 28,550 23,075 N/A
DEVELOPMENT
PORTFOLIO (d)
Revenue 5,951 4,420 11,683 7,715
Operating Expenses (2,258) (1,592) (4,569) (3,391)
3,693 2,828 N/A 7,114 4,324 N/A
RETAIL PORTFOLIO
Revenue 585 691 -15.3% 1,213 1,517 -20.0%
Operating Expenses (422) (379) 11.3% (909) (752) 20.9%
163 312 -47.8% 304 765 -60.3%
TOTAL PORTFOLIO
Revenue 105,343 94,716 11.2% 207,748 183,570 13.2%
Operating
Expenses (39,849) (35,084) 13.6% (80,950) (70,583) 14.7%
$65,494 $59,632 9.8% $126,798 $112,987 12.2%
(a) Includes 17,830 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)
Crystal Towers (Crystal City, VA)
Oaks of Tysons (Tysons/Dulles, VA)
Bedford Village (Tysons/Dulles, VA)
Ocean View (Southeast FL)
Harbour House (Southeast FL) - Acquired in 2000
Ocean Crest Club (Southeast FL) - Acquired in 2000
Ocean Crest Beach (Southeast FL) - Acquired in 2000
Sagamore Towers (Boston, MA) - Acquired in 2000
(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 and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units Q2 01 % of Total
(000's)
WASHINGTON, D.C. 3,595 $13,834 20.0%
NORTHERN VIRGINIA
Crystal City 3,095 13,305 19.3%
Rosslyn/Ballston 1,674 8,116 11.7%
Tysons/Dulles 1,647 5,740 8.3%
Other 3,525 11,650 16.9%
Total Northern Virginia 9,941 38,811 56.2%
BOSTON 469 3,194 4.6%
CHICAGO 3,825 13,243 19.2%
CORE RESIDENTIAL PORTFOLIO 17,830 $69,082 100%
REDEVELOPMENT PORTFOLIO (1) 4,862 $16,878 N/A
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Portfolio Statistics
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Monthly GOI Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market Q2 01 Q2 00 Q2 01 Q2 00
WASHINGTON, D.C. $1,283 8.8% 96.6% -1.2%
NORTHERN VIRGINIA
Crystal City 1,433 5.2% 96.3% -1.7%
Rosslyn/Ballston 1,616 9.4% 97.7% -0.4%
Tysons/Dulles 1,162 7.4% 96.0% -2.3%
Other 1,102 8.0% 96.5% -1.4%
Total Northern Virginia 1,301 7.2% 96.6% -1.4%
BOSTON 2,270 10.0% 99.4% 0.4%
CHICAGO 1,154 4.0% 94.2% -0.9%
CORE RESIDENTIAL PORTFOLIO $1,291 7.0% 96.2% -1.3%
REDEVELOPMENT PORTFOLIO (1) $1,157 9.3% 95.4% -1.3%
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units YTD 01 % of Total
(000's)
WASHINGTON, D.C. 3,595 $27,302 20.1%
NORTHERN VIRGINIA
Crystal City 3,095 25,884 19.0%
Rosslyn/Ballston 1,674 15,867 11.7%
Tysons/Dulles 1,647 11,313 8.3%
Other 3,525 23,137 17.0%
Total Northern Virginia 9,941 76,201 56.0%
BOSTON 469 $6,287 4.6%
CHICAGO 3,825 26,201 19.3%
CORE RESIDENTIAL PORTFOLIO 17,830 $135,991 100.0%
REDEVELOPMENT PORTFOLIO (1) 4,862 $33,350 N/A
(1) Reflects properties held as of December 31, 1999 (Buchanan House,
Mirador, Ocean View, Crystal Towers, Oaks of Tysons, Bedford Village).
Monthly GOI Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market YTD 01 YTD 00 YTD 01 YTD 00
WASHINGTON, D.C. $1,266 9.5% 96.8% -0.8%
NORTHERN VIRGINIA
Crystal City 1,394 5.6% 95.7% -1.2%
Rosslyn/Ballston 1,580 9.8% 97.6% -0.2%
Tysons/Dulles 1,145 7.3% 96.1% -2.1%
Other 1,094 8.3% 96.9% -1.1%
Total Northern Virginia 1,278 7.5% 96.5% -1.1%
BOSTON 2,234 9.8% 99.6% 0.4%
CHICAGO 1,142 5.9% 94.3% -0.3%
CORE RESIDENTIAL PORTFOLIO $1,271 7.7% 96.3% -0.8%
REDEVELOPMENT PORTFOLIO (1) $1,143 9.1% 95.8% -1.3%
(1) Reflects properties held as of December 31, 1999 (Buchanan House,
Mirador, Ocean View, Crystal Towers, Oaks of Tysons, Bedford Village).
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Funds Available for Distribution (FAD) Calculation
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Three Months Ended June 30,
(dollars in thousands, except per
share data) 2001 2000 % Change
FFO OF THE OPERATING PARTNERSHIP $44,016 $35,603 23.6%
Amortization of deferred
financing costs 332 544 -39.0%
Recurring capital improvements
(a) (4,989) (4,019) 24.1%
Principal curtailments on
mortgage debt (1,320) (1,331) -0.8%
Other 526 (17) -3194.1%
FAD OF THE OPERATING PARTNERSHIP 38,565 30,780 25.3%
Minority Interest (12,769) (10,852) 17.7%
FAD attributable to shareholders $25,796 $19,928 29.4%
Funds Available for Distribution
per Share - basic $0.89 $0.79 12.7%
Dividend declared per Share $0.585 $0.55 6.4%
Payout Ratios
As a percentage of FFO 57% 60%
As a percentage of FAD 66% 70%
(a) Capital improvements consist of
the following:
Core Residential Portfolio $4,989 $3,705
Disposition & Retail Portfolios - 314
Total Recurring capital
improvements 4,989 4,019
Non-recurring Core
Repositioning 5,545 4,106
Acquisition Portfolio 364 231
Redevelopment Portfolio 22,251 6,799
Total $33,149 $15,155
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.
Funds Available for Distribution (FAD) Calculation
For the Three and Six Months Ended June 30, 2001 and 2000
(Unaudited)
Six Months Ended June 30,
(dollars in thousands, except per
share data) 2001 2000 % Change
FFO OF THE OPERATING PARTNERSHIP $82,374 $64,676 27.4%
Amortization of deferred financing
costs 722 934 -22.7%
Recurring capital improvements (a) (9,415) (5,756) 63.6%
Principal curtailments on mortgage
debt (2,789) (2,645) 5.4%
Other 826 219 277.2%
FAD OF THE OPERATING PARTNERSHIP 71,718 57,428 24.9%
Minority Interest (23,922) (21,149) 13.1%
FAD attributable to shareholders $47,796 $36,279 31.7%
Funds Available for Distribution
per Share - basic $1.67 $1.54 8.4%
Dividend declared per Share $1.17 $1.10 6.4%
Payout Ratios
As a percentage of FFO 61% 64%
As a percentage of FAD 70% 71%
(a) Capital improvements consist of
the following:
Core Residential Portfolio $9,409 $5,324
Disposition & Retail Portfolios 6 432
Total Recurring capital
improvements 9,415 5,756
Non-recurring Core
Repositioning 11,566 8,778
Acquisition Portfolio 710 231
Redevelopment Portfolio 38,653 11,578
Total $60,344 $26,343
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 June 30, 2001
(Unaudited)
Average Average
Interest Dollars in % of Years to
Rate Thousands Total Maturity
Fixed Rate Debt
Long Term Mortgages 7.25% $1,107,538 82.6% 8.8
Variable Rate Debt
Construction Loans 5.33% 30,046 2.2% 0.6
$300M Revolver 6.21% 139,000 10.4% 8.9
$100M Revolver 5.00% 64,000 4.8% 2.6
$50M Revolver N/A - 0.0% 2.6
Sub-Total 5.77% 233,046 17.4% 6.1
Total Debt 7.00% $1,340,584 100.0% 8.3
Scheduled principal payments:
Jul. 2001 - Dec. 2001 $36,253
Year Ending December 31,
2002 35,595
2003 6,125
2004 99,319
2005 8,451
2006 108,387
Thereafter 1,046,454
$1,340,584
As of As of As of As of As of
06/30/01 03/31/01 12/31/00 9/30/00 6/30/00
Debt to Total Market
Capitalization Ratio 37.6% 39.4% 37.3% 36.1% 39.5%
Market Capitalization (in
millions) $3,566 $3,319 $3,278 $3,106 $2,730
Stock Price $50.150 $45.490 $47.000 $45.375 $38.000
* Debt to Total Market Capitalization Ratio at 6/30/01 is based on
25,340,706 common shares, 4,892,949 convertible preferred shares/units,
and 13,136,882 partnership units outstanding at a common stock price of
$50.150, plus $50M of perpetual preferred shares.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.charlesesmith.com
http://www.smithreit.com
CONTACT:
Investors: Greg Samay, 703-769-1029, or
Media: Susan Goyette, 703-769-6746, both of Charles E. Smith
Residential Realty, Inc.
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