ARLINGTON, Va., July 26 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), the nation's leading urban multifamily REIT,
announced today Funds From Operations (FFO) of $0.91 per diluted share for
the quarter ended June 30, 2000, an increase of 12.3% over the second quarter
of 1999. The FFO increase is attributable primarily to record core portfolio
net operating income growth of 10.7% compared to the second quarter of 1999.
For the six month period ended June 30, 2000, the Company's FFO was $1.71 per
diluted share, up 12.5% compared with the first six months of 1999.
Ernest Gerardi, Jr., Smith Residential's CEO, said, "Our operating results
demonstrate excellent performance in all major facets of our business --
development, acquisitions, and core portfolio properties. This is due to the
strength of our markets and the skill of our management team and reflects the
ongoing advantage of our strategic focus on the country's growing urban living
trend."
Dividend Declaration
On July 25, 2000, the Board of Directors of Charles E. Smith Residential
Realty, Inc. declared a dividend of $0.55 per share for the quarter ended June
30, 2000. The dividend will be payable on August 16, 2000, to all
shareholders of record as of August 4, 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 FFO was $35.6 million for the second
quarter of 2000, an increase of 24.3% over the second quarter of 1999. For the
first six months of 2000, the Operating Partnership's FFO was $64.7 million,
up 19.7% over the same six month period of 1999.
The Operating Partnership's total revenue from rental properties was $94.7
million for the second quarter of 2000, an increase of 34.3% over the second
quarter of 1999. For the first six months of 2000, total rental revenue was
$183.6 million, an increase of 31.5% over total rental revenue for the first
six months of 1999.
The Operating Partnership's operating income from rental properties before
depreciation for the second quarter of 2000 was $59.6 million, up 35.8% over
the second quarter of 1999. For the first six months of 2000, operating income
was $113.0 million, up 32.3% over the same six month period of 1999.
Recent Activity
In May, Smith Residential announced the closing of a ten-year, $300
million secured line of credit with Freddie Mac. Initial availability under
the agreement is approximately $125 million, and borrowings can increase to
$300 million with the appreciation in value of the properties collateralizing
the borrowings and/or with the addition of properties to the collateral pool.
In June, the Company completed the acquisition of the newly developed
Reston Landing, a $44 million, 400-unit apartment property located in the
heart of Northern Virginia's Dulles Technology Corridor. The transaction was
funded primarily with proceeds from the $41 million disposition of Worldgate
Centre, a 231,000 square foot retail center located in Herndon, Va.
Quarterly Conference Call
The Company will hold a conference call on Thursday, July 27, 2000, to
review the information reported in this release. To participate, please call
1-888-209-3909 shortly before 11:00 AM that day, and identify yourself as a
participant in the Charles E. Smith Residential 2000 Second Quarter Operating
Results conference call.
If you are unable to join the call at 11:00 AM, a recording will be
available from 1:00 PM (EST), July 27th until 1:00 PM (EST), July 30th. To
access the PostView, please call 1-800-633-8284 and enter reservation number
15483753 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 28,000 units and has approximately 2,200 units under
construction or subject to pre-purchase agreements. The total market
capitalization of the Company -- Charles E. Smith Residential Realty, Inc.,
including its Operating Partnership -- exceeds $2.9 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 at 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.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Financial Highlights
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
(dollars in thousands, except per share data)
Three Months Ended June 30,
2000 1999 % Change
Financial Highlights
Revenue from the
Operating Partnership $94,716 $70,522 34.3%
Funds From Operations of the
Operating Partnership 35,603 28,647 24.3%
Funds From Operations -
attributable to shareholders 23,050 17,958 28.4%
Per Share - basic $0.92 $0.81 13.6%
Per Share - diluted (a) $0.91 $0.81 12.3%
Net Income of the
Operating Partnership $32,026 $21,704 47.6%
Net Income - attributable to
common shareholders 15,815 11,208 41.1%
Per Common Share - basic $0.75 $0.58 29.3%
Per Common Share - diluted $0.73 $0.58 25.9%
Dividends Declared per Share $0.55 $0.535 2.8%
Interest Coverage Ratio (b) 3.11 3.32
(dollars in thousands, except per share data)
Six Months Ended June 30,
2000 1999 %Change
Financial Highlights
Revenue from the
Operating Partnership $183,570 $139,555 31.5%
Funds From Operations of the
Operating Partnership 64,676 54,053 19.7%
Funds From Operations -
attributable to shareholders 40,858 33,696 21.3%
Per Share - basic $1.73 $1.53 13.1%
Per Share - diluted (a) $1.71 $1.52 12.5%
Net Income of the
Operating Partnership $55,628 $41,255 34.8%
Net Income - attributable to
common shareholders 26,429 20,963 26.1%
Per Common Share - basic $1.26 $1.11 13.5%
Per Common Share - diluted $1.24 $1.11 11.7%
Dividends Declared per Share $1.10 $1.07 2.8%
Total Assets $1,839,395 $1,284,914 43.2%
Interest Coverage Ratio (b) 3.10 3.22
As of As of
Apartment Units June 30, 2000 June 30, 1999
Core Portfolio 17,424 17,424
Acquisition/Disposition
Portfolio 7,748 2,428
Development Portfolio
(in service) 1,515 564
Total 26,687 20,416
(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,
2000 1999 2000 1999
Common Shares
(includes common
share equivalents) 21,604 19,468 21,348 19,027
Convertible Preferred
Shares:
Series A&B 2,640 2,952 2,640 3,152
Series E&F 1,352 -- -- --
Partnership Units 13,668 13,164 13,751 13,291
Total Shares and
Partnership
Units 39,264 35,584 37,739 35,470
(b)Excludes gains on sales and extraordinary losses on extinguishment of
debt.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Operating Summary
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
(dollars in thousands, Three Months Ended June 30,
except per share data) 2000 1999 (c) % Change
RENTAL PROPERTIES (a)
Revenue $94,716 $70,522 34.3%
Operating expenses (35,084) (26,600) 31.9%
Depreciation and
amortization (10,895) (7,713) 41.3%
Total Rental Properties 48,737 36,209 34.6%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 542 214 153.3%
EQUITY IN INCOME OF
PROPERTY SERVICE BUSINESSES 1,636 1,126 45.3%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (3,002) (2,420) 24.0%
Interest expense, net (20,048) (13,418) 49.4%
Gain (loss) on sales 4,161 (7) N/A
Extraordinary item -
loss on extinguishment
of debt -- -- N/A
NET INCOME OF THE
OPERATING PARTNERSHIP 32,026 21,704 47.6%
Minority Interest (11,200) (8,095) 38.4%
Net Income 20,826 13,609 53.0%
Less income attributable
to preferred shares (5,011) (2,401) 108.7%
Net Income attributable
to common shares $15,815 $11,208 41.1%
Net Income per
common share - basic $0.75 $0.58 29.3%
Net Income per
common share - diluted $0.73 $0.58 25.9%
NET INCOME OF THE
OPERATING PARTNERSHIP $32,026 $21,704 47.6%
Preferred dividends (b) (3,504) (999) 250.8%
(Gain) loss on sales (4,161) 7 N/A
Depreciation of
rental property 10,895 7,713 41.3%
Depreciation of
unconsolidated properties 239 114 109.6%
Amortization of goodwill 108 108 0.0%
Extraordinary item -
loss on extinguishment
of debt -- -- N/A
FFO OF THE
OPERATING PARTNERSHIP 35,603 28,647 24.3%
Minority Interest (12,553) (10,689) 17.4%
FFO attributable to
shareholders $23,050 $17,958 28.4%
Funds From Operations
per Share - basic $0.92 $0.81 13.6%
Funds From Operations
per Share - diluted $0.91 $0.81 12.3%
(dollars in thousands, Six Months Ended June 30,
except per share data) 2000 1999 (c) % Change
RENTAL PROPERTIES (a)
Revenue $183,570 $139,555 31.5%
Operating expenses (70,583) (54,158) 30.3%
Depreciation and
amortization (21,462) (15,941) 34.6%
Total Rental Properties 91,525 69,456 31.8%
EQUITY IN INCOME OF
UNCONSOLIDATED PROPERTIES 1,325 330 301.5%
EQUITY IN INCOME OF
PROPERTY SERVICE BUSINESSES 2,155 1,128 91.0%
OTHER INCOME AND EXPENSES
Corporate general and
administrative expenses (5,697) (4,629) 23.1%
Interest expense, net (37,841) (26,522) 42.7%
Gain (loss) on sales 4,161 1,851 124.8%
Extraordinary item -
loss on extinguishment
of debt -- (359) -100.0%
NET INCOME OF THE
OPERATING PARTNERSHIP 55,628 41,255 34.8%
Minority Interest (19,177) (15,537) 23.4%
Net Income 36,451 25,718 41.7%
Less income attributable
to preferred shares (10,022) (4,755) 110.8%
Net Income attributable
to common shares $26,429 $20,963 26.1%
Net Income per
common share - basic $1.26 $1.11 13.5%
Net Income per
common share - diluted $1.24 $1.11 11.7%
NET INCOME OF THE
OPERATING PARTNERSHIP $55,628 $41,255 34.8%
Preferred dividends (b) (8,946) (1,988) 350.0%
(Gain) loss on sales (4,161) (1,851) 124.8%
Depreciation of
rental property 21,462 15,941 34.6%
Depreciation of
unconsolidated properties 478 122 291.8%
Amortization of goodwill 215 215 0.0%
Extraordinary item -
loss on extinguishment
of debt -- 359 -100.0%
FFO OF THE
OPERATING PARTNERSHIP 64,676 54,053 19.7%
Minority Interest (23,818) (20,357) 17.0%
FFO attributable
to shareholders $40,858 $33,696 21.3%
Funds From Operations
per Share - basic $1.73 $1.53 13.1%
Funds From Operations
per Share - diluted $1.71 $1.52 12.5%
(a) Details are shown on the following page.
(b) YTD excludes Series A&B, and QTD excludes Series A, B, E, & F, which
are considered common share equivalents for the period in question.
(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 and Six Months Ended June 30, 2000 and 1999
(Unaudited)
Three Months Ended June 30,
(dollars in thousands) 2000 1999 (d) % Change
CORE RESIDENTIAL PORTFOLIO (a)
Revenue $64,249 $59,445 8.1%
Operating Expenses (22,980) (22,179) 3.6%
Total 41,269 37,266 10.7%
ACQUISITION/DISPOSITION
PORTFOLIO (b)
Revenue 21,255 6,730
Operating Expenses (9,047) (2,863)
Total 12,208 3,867 N/A
DEVELOPMENT PORTFOLIO (c)
Revenue 6,883 1,805
Operating Expenses (2,250) (780)
Total 4,633 1,025 N/A
RETAIL PORTFOLIO (b)
Revenue 2,329 2,542 -8.4%
Operating Expenses (807) (778) 3.7%
Total 1,522 1,764 -13.7%
TOTAL PORTFOLIO
Revenue 94,716 70,522 34.3%
Operating Expenses (35,084) (26,600) 31.9%
Total $59,632 $43,922 35.8%
Six Months Ended June 30,
(dollars in thousands) 2000 1999 (d) % Change
CORE RESIDENTIAL PORTFOLIO (a)
Revenue $125,836 $117,631 7.0%
Operating Expenses (46,475) (45,022) 3.2%
Total 79,361 72,609 9.3%
ACQUISITION/DISPOSITION
PORTFOLIO (b)
Revenue 40,385 13,456
Operating Expenses (17,833) (5,855)
Total 22,552 7,601 N/A
DEVELOPMENT PORTFOLIO (c)
Revenue 12,573 3,372
Operating Expenses (4,658) (1,661)
Total 7,915 1,711 N/A
RETAIL PORTFOLIO (b)
Revenue 4,776 5,096 -6.3%
Operating Expenses (1,617) (1,620) -0.2%
Total 3,159 3,476 -9.1%
TOTAL PORTFOLIO
Revenue 183,570 139,555 31.5%
Operating Expenses (70,583) (54,158) 30.3%
Total $112,987 $85,397 32.3%
(a) Includes 17,424 apartment units.
(b) Includes the following properties:
2000 Acquisitions
Ocean View at Sunset Pointe - North (Southeast FL)
Ocean View at Sunset Pointe - South (Southeast FL)
Dearborn Place (Chicago, IL)
Reston Landing (Northern VA)
1999 Acquisitions
Buchanan (Northern VA)
The Park Lincoln (formerly, Park West) (Chicago, IL)
Terrace (Chicago, IL)
Countryside (Chicago, IL)
Stonegate (formerly, Somerset) (Chicago, IL)
The Consulate (Washington, DC)
Forte Towers (Southeast FL)
Ocean View at Aventura Beach (Southeast FL)
2000 Dispositions
Worldgate Centre
1999 Dispositions
The Manor
Potomac View
Columbian Stratford
Windsor Towers
Fort Chaplin
Suburban Tower
(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's presentation.
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Core Residential Portfolio Statistics
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units Q2 00 % of Total
(000's)
WASHINGTON, D.C. 3,326 $11,671 18.2%
NORTHERN VIRGINIA
Crystal City 4,007 16,156 25.1%
Rosslyn/Ballston 1,110 4,952 7.7%
Tysons/Dulles 2,617 8,474 13.2%
Other 4,514 13,522 21.1%
Total Northern Virginia 12,248 43,104 67.1%
BOSTON/CHICAGO 1,850 9,474 14.7%
CORE RESIDENTIAL PORTFOLIO 17,424 $64,249 100.0%
Monthly GOI Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market Q2 00 Q2 99 Q2 00 Q2 99
WASHINGTON, DC $1,170 9.8% 98.0% -0.7%
NORTHERN VIRGINIA
Crystal City 1,344 8.0% 98.1% 0.8%
Rosslyn/Ballston 1,487 9.5% 97.7% 3.1%
Tysons/Dulles 1,079 6.5% 98.0% 0.8%
Other 999 7.6% 98.0% 1.4%
Total Northern
Virginia 1,173 7.8% 98.0% 1.2%
BOSTON/CHICAGO 1,707 7.6% 97.3% 1.0%
CORE RESIDENTIAL
PORTFOLIO $1,229 8.1% 97.9% 0.9%
Gross Operating Income
Number of
Apartment
Market/Sub-Market Units YTD 00 % of Total
(000's)
WASHINGTON, D.C. 3,326 $22,905 18.2%
NORTHERN VIRGINIA
Crystal City 4,007 31,462 25.0%
Rosslyn/Ballston 1,110 9,592 7.6%
Tysons/Dulles 2,617 16,704 13.3%
Other 4,514 26,759 21.3%
Total Northern Virginia 12,248 84,517 67.2%
BOSTON/CHICAGO 1,850 18,414 14.6%
CORE RESIDENTIAL PORTFOLIO 17,424 $125,836 100.0%
Monthly GOI Per Unit Occupancy
% Change % Change
From From
Market/Sub-Market YTD 00 YTD 99 YTD 00 YTD 99
WASHINGTON, D.C. $1,148 9.3% 97.9% -0.5%
NORTHERN VIRGINIA
Crystal City 1,309 5.3% 97.3% -0.1%
Rosslyn/Ballston 1,440 8.0% 97.2% 2.9%
Tysons/Dulles 1,064 6.8% 97.8% 0.6%
Other 988 7.4% 98.1% 1.4%
Total Northern
Virginia 1,150 6.6% 97.6% 0.8%
BOSTON/CHICAGO 1,659 6.1% 97.2% 1.7%
CORE RESIDENTIAL
PORTFOLIO $1,204 7.0% 97.6% 0.7%
CHARLES E. SMITH RESIDENTIAL REALTY, INC.
Funds Available for Distribution (FAD) Calculation
For the Three and Six Months Ended June 30, 2000 and 1999
(Unaudited)
(dollars in thousands, Three Months Ended June 30,
except per share data) 2000 1999 % Change
FFO OF THE
OPERATING PARTNERSHIP $35,603 $28,647 24.3%
Amortization of deferred
financing costs 544 248 119.4%
Recurring capital
improvements (a) (3,585) (3,548) 1.0%
Principal curtailments
on mortgage debt (1,331) (801) 66.2%
Other (17) 263 -106.5%
FAD OF THE
OPERATING PARTNERSHIP 31,214 24,809 25.8%
Minority Interest (11,006) (9,256) 18.9%
FAD attributable
to shareholders $20,208 $15,553 29.9%
Funds Available for
Distribution per Share
- basic $0.81 $0.70 15.7%
Dividend declared per Share $0.55 $0.535 2.8%
Payout Ratios
As a percentage of FFO 60% 66%
As a percentage of FAD 68% 76%
(dollars in thousands, Six Months Ended June 30,
except per share data) 2000 1999 % Change
FFO OF THE
OPERATING PARTNERSHIP $64,676 $54,053 19.7%
Amortization of deferred
financing costs 934 617 51.4%
Recurring capital
improvements (a) (5,185) (6,399) -19.0%
Principal curtailments
on mortgage debt (2,645) (1,450) 82.4%
Other 219 275 -20.4%
FAD OF THE
OPERATING PARTNERSHIP 57,999 47,096 23.2%
Minority Interest (21,359) (17,737) 20.4%
FAD attributable
to shareholders $36,640 $29,359 24.8%
Funds Available for
Distribution per Share
- basic $1.55 $1.33 16.5%
Dividend declared per Share $1.10 $1.07 2.8%
Payout Ratios
As a percentage of FFO 64% 70%
As a percentage of FAD 71% 80%
(a)Capital improvements consist of the following:
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Core Residential
Portfolio $3,574 $3,380 $5,163 $6,087
Disposition &
Retail Portfolios 11 168 22 312
Total Recurring
capital improvements 3,585 3,548 5,185 6,399
Non-recurring
Core Repositioning 5,006 849 9,882 1,540
Total $8,591 $4,397 $15,067 $7,939
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 June 30, 2000
(Unaudited)
Average Average
Interest Dollars in % of Years to
Rate Thousands Total Maturity
Fixed Rate Debt
Long Term Mortgages 7.28% $917,527 85.1% 9.0
Variable Rate Debt
Construction Loans 7.85% 86,306 8.0% 1.0
$300M Revolver 7.38% 69,000 6.4% 9.9
$100M Revolver 7.71% 5,000 0.5% 0.7
$50M Revolver 7.71% 0 0.0% 0.7
Sub-Total 7.64% 160,306 14.9% 4.9
Total Debt 7.33% $1,077,833 100.0% 8.4
Maturity Schedule
2001 $131,404
2002 6,372
2004 29,488
2006 92,448
2007 84,091
2008 73,000
2009 211,502
2010 205,950
2011 38,000
2012 53,494
2013 140,000
2020 12,084
Total $1,077,833
As of As of As of As of As of
6/30/00 3/31/00 12/31/99 9/30/99 6/30/99
Debt to
Total Market
Capitalization
Ratio 39.5% 40.5% 38.6% 38.8% 40.9%
Market Capitalization
(in millions) $2,730 $2,644 $2,509 $2,308 $2,113
Stock Price $38.000 $36.125 $35.375 $34.188 $33.938
* Debt to Total Market Capitalization Ratio at 6/30/00 is based on
21,268,954 common shares, 3,991,923 convertible preferred shares, and
13,610,460 partnership units outstanding at a common stock price of
$38.00, $50M of perpetual preferred shares, $80M of Series 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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