WASHINGTON, July 28 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today reported second quarter 2005 diluted earnings
per share of $0.14 on net income of $11.9 million, compared to diluted
earnings per share of $0.19 on net income of $14.0 million for the second
quarter of 2004. For the first six months of 2005, diluted earnings per share
were $1.69 compared to $0.39 for the same period a year ago. Net income for
the three and six months ended June 30, 2005 includes gains from disposition
of properties of $4.4 million and $92.5 million, respectively.
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For the second quarter of 2005, diluted funds from operations available to
common shareholders (Diluted FFO), including the impairment charges discussed
below, were $42.3 million or $0.69 per share compared to $47.7 million or
$0.80 per share for the second quarter of 2004. Diluted FFO for the six-month
period ended June 30, 2005 was $83.4 million or $1.38 per share as compared to
$96.0 million or $1.61 per share for the same period in 2004. The gains
associated with the disposition of real estate had no impact on reported
Diluted FFO or Diluted FFO per share.
Net income and Diluted FFO in the second quarter of 2005 were negatively
impacted by $1.9 million or $.03 per diluted share, by the change in
application of our revenue recognition policy more fully described below.
The three and six months ended June 30, 2005 include $0.2 million and $4.2
million, respectively, of impairment losses on three properties.
Portfolio Report
CarrAmerica President and COO, Philip L. Hawkins, commented, "The office
market experienced continued expansion in the second quarter nationally with
most of our markets benefiting from increased job growth." Mr. Hawkins
continued, "We were pleased to see these economic trends, combined with strong
leasing from our market teams, impact our portfolio with occupancy rising
above last quarter as well as second quarter 2004."
Occupancy for consolidated stabilized properties was 88.3% at June 30,
2005, 88.1% at March 31, 2005 and 87.1% at June 30, 2004. Same store property
operating income for the second quarter of 2005 decreased 6.7% on a GAAP basis
over the same period in 2004 due primarily to the impact of lease termination
fees and rental rates in new leases being substantially lower than rental
rates in expiring leases in many of CarrAmerica's markets. Adjusting for
termination fees, same store property operating income for the second quarter
of 2005 decreased by 3.1% as compared to the previous year. The average
occupancy rate for same store properties was 88.8% in the second quarter, up
from 87.9% during the first quarter. The Company has executed leases for
approximately 1.4 million square feet of office space for which revenue
recognition has not yet begun and which are not included in our occupancy
statistics as of June 30, 2005.
For the second quarter, rental rates decreased 18.9% on average on the
leases executed during the quarter. The Company leased 1.1 million square
feet of office space in the second quarter of 2005 versus 0.8 million square
feet for the same period in 2004. In addition, subsequent to the end of the
quarter, the Company executed two additional leases totaling 252,000 square
feet.
Acquisitions
In the second quarter, a joint venture in which CarrAmerica is a 20%
partner acquired Colonnade I, II & III, a 984,000 square foot Class A property
located in Dallas, Texas for $153.5 million. CarrAmerica will also lease and
manage the property. CarrAmerica expects to receive a year one unleveraged
GAAP return on its investment of 8.1% and a stabilized unleveraged GAAP return
on its investment of approximately 9.25%.
Also in the second quarter, CarrAmerica acquired North Creek Corporate
Center in Bothell, Washington for approximately $16.8 million. The three-
building, 95,267 square foot, office/R&D property is expected to provide a
year one GAAP return of 7.4%.
CarrAmerica is also under contract to purchase two additional properties
with contingencies waived which are expected to close in the third quarter.
The first is a 168,000 square foot Class A office building in Rosslyn,
Virginia which is being purchased for $61.7 million. The building is
currently 94% leased with an expected year-one GAAP return of approximately
7%. The second is a 3-building, 156,000 square foot Class A R&D project in
Redmond, Washington which is being purchased for approximately $35.6 million.
The project is 100% leased with an expected year-one GAAP return of
approximately 8.13%. The consummation of these acquisitions remains subject
to customary closing conditions.
Dispositions
In the second quarter, CarrAmerica closed on the sale of Westlake
Spectrum, a two-building, 107,000 square foot office property in Los Angeles
for $21.3 million. The Company recorded a gain of approximately $3.8 million
in connection with this sale.
Also during the second quarter, a joint venture in which we are a 35%
partner sold Royal Ridge V, a 123,750 square foot office building in Dallas,
Texas. The building was sold pursuant to an option to purchase exercised by
the tenant. The Company recognized a gain of $0.8 million on the sale.
CarrAmerica is currently in the process of marketing additional properties
for sale. Of those properties, three had book values in excess of the
undisclosed cash flows we expect to receive from the operation and sale of the
properties. The Company recognized an impairment loss of $4.2 million related
to these three properties in the first half of 2005. One building in Phoenix,
Arizona is under contract for sale with contingencies waived. There can be no
assurance that any of these additional sales will be consummated.
Application of Revenue Recognition Policy
In a letter dated February 7, 2005 sent by the Chief Accountant of the
Securities and Exchange Commission ("Commission") to the American Institute of
Certified Public Accountants, the Chief Accountant addressed a number of
issues related to lease accounting by tenants. In that letter, the Chief
Accountant indicated that leasehold improvements made by a tenant that are
funded by landlord incentives or allowances under an operating lease should in
certain circumstances be recorded as leasehold improvement assets by the
tenant. This letter caused REITs and their accounting firms to reevaluate
their treatment of tenant improvements and lease incentives. Based upon the
implications of the Chief Accountant's letter, we have concluded that if a
tenant improvement is deemed to be owned by the tenant for accounting purposes
that we must record the amounts funded to construct the tenant improvements as
a lease incentive instead of as an asset, and as a result, the amount funded
would be amortized as a reduction of rental revenue rather than as an increase
to depreciation expense. This change in presentation will have no effect on
our net income or Diluted FFO.
This consideration of the issues raised in the Chief Accountant's letter
also resulted in examination of when revenue recognition under an operating
lease should begin. Historically, we began to recognize revenue under a lease
when possession or control of the space leased was turned over to our tenant.
In instances where our tenant contracted directly with third parties for their
tenant improvement work, we determined that the tenant took possession of the
space and we would begin recognizing revenue when we turned over the space to
the tenant to begin construction. However, after discussions with our
registered independent public accounting firm, we have concluded that if we
are the owner of the tenant improvements revenue recognition cannot commence
until the leasehold improvements are substantially completed. In contrast, if
we determine that the tenant allowances we are funding are lease incentives,
then we will commence revenue recognition when possession or control of the
space is turned over to the tenant for construction to begin.
As a result of this change in the timing of revenue recognition under
leases where we own the improvements and where our tenant took possession or
control of the space before the improvements were complete, we reduced base
rental revenue previously recorded in the first quarter of 2005 by
approximately $1.0 million. This change did not have a material impact on or
require a material adjustment to our audited financial statements for fiscal
years ended on or before December 31, 2004.
CarrAmerica Earnings Estimates
On Friday, July 29, CarrAmerica management will discuss earnings guidance
for 2005 which includes the impairment charges previously disclosed. Diluted
earnings per share of $1.66 - $1.76 and Diluted FFO per share of $2.61 - $2.71
for 2005 will be discussed. Third quarter 2005 diluted earnings (loss) per
share and Diluted FFO per share of $(0.05) to $0.00 and $0.60 to $0.65
respectively, will also be discussed. Estimates for 2005 reflect the change
in the application of our revenue recognition policy described earlier which
is expected to reduce our full year diluted earnings per share and diluted FFO
per share by $.08, compared to our prior estimates. Since we consider a space
occupied when revenue recognition commences, this change also reduced our
forecasted 2005 average occupancy by 150 basis points. In addition, full year
diluted earnings per share and diluted FFO per share have been reduced by
approximately $0.02 per share related to an expected debt prepayment penalty
in the fourth quarter in connection with a building sale. The projections for
2005 are based in part on the following assumptions:
2005
Average Office Portfolio Occupancy 87.0% - 89.0%
Real Estate Service Revenue $20.0 - $22.0 million
General and Administrative Expense $40.0 - $42.0 million
Termination Fees $ 2.0 - $ 2.5 million
Debt prepayment penalties $ 1.0 - $ 2.0 million
Estimates for full year 2005 include gains on the sale of property and the
impairment charges previously disclosed (see Dispositions section earlier in
this document) but exclude any other potential gains, losses or asset
impairments associated with property dispositions currently in process,
contemplated or otherwise. Any gains or losses on the sales of real estate
will have an impact on net income, which may be material, but will not have an
impact on FFO, since those amounts are not added back in the calculation of
FFO. Any impairments of real estate will negatively impact both net income
and FFO, which may be material. The 2005 estimates also include the impact of
lost property income of approximately $5.0 to $5.5 million associated with the
vacancy of the International Monetary Fund from our International Square
property in Washington, D.C. The Company expects to incur approximately 2-4
months of downtime associated with the commencement of a 394,000 square foot
lease in approximately 80.0% of the vacated space. Our 2005 estimate also
assumes that straight-line rents on in-place leases that expire in 2005 exceed
market rental rates by 8% - 12%. For leases that expire in the second half of
2005, straight-line rents on in-place leases will be less than market rental
rates by 3% - 5%. On a weighted average basis, dispositions will exceed
acquisitions by approximately $100 million for the year.
CarrAmerica Announces Second Quarter Dividend
The Board of Directors of CarrAmerica today declared a second quarter
dividend for its common stock of $0.50 per share. The dividend will be
payable to shareholders of record as of the close of business August 19, 2005.
CarrAmerica's common stock will begin trading ex-dividend on August 17, 2005
and the dividend will be paid on August 31, 2005. The Company also declared a
dividend on its Series E preferred stock. The Series E Cumulative Redeemable
preferred stock dividend is $.46875 per share.
The Series E preferred stock dividends are payable to shareholders of
record as of the close of business on August 19, 2005. The preferred stock
will begin trading ex-dividend on August 17, 2005 and the dividends will be
paid on August 31, 2005.
CarrAmerica Second Quarter Webcast and Conference Call
CarrAmerica will conduct a conference call to discuss 2005 second quarter
results on Friday, July 29, 2005 at 11:00 AM, ET. A live webcast of the call
will be available through a link at CarrAmerica's web site,
http://www.carramerica.com. The phone number for the conference call is
1-800-946-0786 for U.S. participants and 1-719-457-2662 for international
participants. The call is open to all interested persons. A taped replay of
the conference call can be accessed from 2:00 PM on July 29, 2005 until
midnight August 12, 2005, by dialing 1-888-203-1112 for U.S. callers and
1-719-457-0820 for international callers, passcode 6422044.
A copy of supplemental material on the Company's second quarter operations
is available on the Company's web site, http://www.carramerica.com, or by
request from:
Stephen Walsh
CarrAmerica Realty Corporation
1850 K Street, NW, Suite 500
Washington, D.C. 20006
(Telephone) 202-729-1764
E-mail: stephen.walsh@carramerica.com
CarrAmerica owns, develops and operates office properties in 12 markets
throughout the United States. The Company has become one of America's leading
office workplace companies by meeting the rapidly changing needs of its
customers with superior service, a large portfolio of quality office
properties and extraordinary development capabilities. Currently, CarrAmerica
and its affiliates own, directly or through joint ventures, interests in a
portfolio of 290 operating office properties, totaling close to 27 million
square feet. CarrAmerica's markets include Austin, Chicago, Dallas, Denver,
Los Angeles, Orange County, Portland, Salt Lake City, San Diego, San Francisco
Bay Area, Seattle and metropolitan Washington, D.C. For additional information
on CarrAmerica, including space availability, visit our web site at
http://www.carramerica.com
Estimates of Diluted FFO and earnings per share and certain other
statements in this release, including management's expectations about, among
other things, operating performance and financial conditions, may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation of lease rents, and the availability of financing for both tenants
and us; adverse changes in real estate markets, including, among other things,
the extent of tenant bankruptcies, financial difficulties and defaults, the
extent of future demand for office space in our core markets and barriers to
entry into markets which we may seek to enter in the future, the extent of the
decreases in rental rates, our ability to identify and consummate attractive
acquisitions on favorable terms, our ability to consummate any planned
dispositions in a timely manner on acceptable terms, and changes in operating
costs, including real estate taxes, utilities, insurance and security costs;
actions, strategies and performance of affiliates that we may not control or
companies in which we have made investments; ability to obtain insurance at a
Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual results, performance, dividends, achievements or transactions of the
Company and its affiliates or industry results to be materially different from
any future results, performance, achievements or transactions expressed or
implied by such forward-looking statements. Such factors include, among
others, the following: national and local economic, business, financial and
real estate conditions that will, among other things, affect demand for office
space, the extent, strength and duration of any economic recovery, including
the effect on demand for office space and the creation of new office
development, availability and creditworthiness of tenants, the level
reasonable cost; ability to maintain our status as a REIT for federal and
state income tax purposes; ability to raise capital; the effect of any changes
in accounting policies or financial statement presentation; the effect of any
terrorist activity or other heightened geopolitical crisis; governmental
actions and initiatives; and environmental/safety requirements. For a further
discussion of these and other factors that could impact the Company's future
results, performance, achievements or transactions, see the documents filed by
the Company from time to time with the Securities and Exchange Commission, and
in particular the section titled, "The Company - Risk Factors" in the
Company's Annual Report or Form 10-K.
CARRAMERICA REALTY CORPORATION
Consolidated Balance Sheets
June 30, December 31,
(In thousands) 2005 2004
(Unaudited)
Assets
Rental property:
Land $737,361 $779,482
Buildings 1,963,096 2,064,678
Tenant improvements 437,429 448,515
Furniture, fixtures and equipment 46,350 45,879
3,184,236 3,338,554
Less: Accumulated depreciation (757,840) (750,530)
Net rental property 2,426,396 2,588,024
Land held for future development or sale 41,718 41,676
Assets held for sale 11,826 -
Cash and cash equivalents 7,332 4,735
Restricted deposits 2,237 1,364
Accounts and notes receivable, net 54,210 52,438
Investments in unconsolidated entities 164,302 138,127
Accrued straight-line rents 82,471 84,396
Tenant leasing costs, net 50,080 53,908
Intangible assets, net 91,690 98,354
Prepaid expenses and other assets 25,179 18,170
$2,957,441 $3,081,192
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable, net $1,783,725 $1,941,130
Accounts payable and accrued expenses 90,847 107,409
Rent received in advance and
security deposits 34,907 40,304
1,909,479 2,088,843
Minority interest 59,617 65,378
Stockholders' equity:
Preferred stock 201,250 201,250
Common stock 557 548
Additional paid-in capital 1,042,804 1,025,388
Cumulative dividends in excess of
net income (256,493) (300,500)
Accumulated other comprehensive income 227 285
988,345 926,971
Commitments and contingencies
$2,957,441 $3,081,192
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands, except per share
amounts) 2005 2004 2005 2004
(Unaudited) (Unaudited)
Revenues:
Rental income (1):
Minimum base rent $96,640 $95,429 $199,777 $191,171
Recoveries from tenants 13,727 13,219 28,466 26,658
Parking and other tenant charges 4,171 6,374 7,751 10,479
Total rental revenue 114,538 115,022 235,994 228,308
Real estate service revenue 5,222 5,301 10,795 10,767
Total operating revenues 119,760 120,323 246,789 239,075
Operating expenses:
Property expenses:
Operating expenses 29,764 29,494 60,743 58,176
Real estate taxes 10,059 9,886 21,254 20,601
General and administrative 10,179 10,758 20,928 21,030
Depreciation and amortization 34,644 30,344 69,338 60,930
Total operating expenses 84,646 80,482 172,263 160,737
Real estate operating income 35,114 39,841 74,526 78,338
Other (expense) income:
Interest expense (28,147) (27,835) (57,646) (54,176)
Equity in earnings of
unconsolidated entities 972 1,749 2,042 3,747
Interest and other income 1,562 530 3,012 1,224
Net other expense (25,613) (25,556) (52,592) (49,205)
Income from continuing
operations before income
taxes, minority interest,
impairment losses on real
estates and gain (loss) on
sale of properties 9,501 14,285 21,934 29,133
Income taxes (130) (32) (302) (154)
Minority interest (1,977) (2,139) (3,768) (4,165)
Impairment losses on real estate - - (4,000) -
Gain (loss) on sale of properties 663 (48) 88,757 (58)
Income from continuing
operations 8,057 12,066 102,621 24,756
Discontinued operations - Net
operations of sold properties 3,811 1,941 4,289 4,481
Net income 11,868 14,007 106,910 29,237
Less: Dividends on preferred
and restricted stock (4,044) (3,938) (8,089) (7,877)
Net income available to common
shareholders $7,824 $10,069 $98,821 $21,360
Basic net income per share:
Continuing operations $0.07 $0.15 $1.73 $0.31
Discontinued operations 0.07 0.04 0.07 0.09
Net income $0.14 $0.19 $1.80 $0.40
Diluted net income per share:
Continuing operations $0.07 $0.15 $1.62 $0.31
Discontinued operations 0.07 0.04 0.07 0.08
Net income $0.14 $0.19 $1.69 $0.39
NOTE: (1) Rental income includes $(331) and $801 of accrued straight line
rents for the three months ended June 30, 2005 and 2004, respectively,
and $2,156 and $3,037 for the six months ended June 30, 2005 and 2004,
respectively.
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Cash Flow
Six Months Ended
(In thousands) June 30,
2005 2004
(Unaudited)
Cash flow from operating activities:
Net income $106,910 $29,237
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 69,670 66,511
Minority interest 3,768 4,165
Equity in earnings of
unconsolidated entities (2,042) (3,747)
(Gain) loss sale of properties (88,757) 58
Gain on sale of properties -
discontinued operations (3,773) (66)
Gain on sale of residential
property - (326)
Impairment losses on real estate 4,210 -
Lease intangibles amortization 4,022 (601)
Amortization of deferred
financing costs 2,222 2,613
(Recovery of) provision for
uncollectible accounts (148) 148
Stock based compensation 2,754 1,762
Other 906 548
Change in assets and liabilities:
Decrease in accounts receivable 2,054 9,119
Increase in accrued straight-line
rents (2,684) (3,037)
Additions to tenant leasing costs (7,282) (6,966)
Increase in intangible assets,
prepaid expenses and other
assets (8,111) (11,239)
Decrease in accounts payable and
accrued expenses (18,883) (12,294)
Decrease in rent received in
advance and security deposits (5,511) (369)
Total adjustments (47,585) 46,279
Net cash provided by operating
activities 59,325 75,516
Cash flows from investing activities:
Rental property additions (3,649) (3,974)
Additions to tenant improvements (17,052) (23,707)
Additions to land held for
development or sale and
construction in progress (282) (2,458)
Rental property acquisitions and
deposits (16,455) (139,993)
Issuance of notes receivable (8,395) (5,421)
Payments on notes receivable 5,693 2,409
Distributions from unconsolidated
entities 4,058 -
Investments in unconsolidated
entities (14,321) (358)
Acquisition of minority interest (4,403) (4,201)
Increase in restricted deposits (873) (373)
Proceeds from sale of residential
property 930 2,727
Proceeds from sales of properties 212,581 10,512
Net cash provided by (used in)
investing activities 157,832 (164,837)
Cash flows from financing activities:
Exercises of stock options 14,907 31,857
Repayment of unsecured notes (100,000) -
Termination of interest rate swap
agreement (1,996) -
Proceeds from the issuance of
unsecured notes, net - 222,718
Net repayments on unsecured credit
facility (56,000) (68,500)
Net repayments of mortgages and
notes payable (2,927) (25,874)
Dividends and distributions to
minority interests (68,544) (66,920)
Net cash (used in) provided by
financing activities (214,560) 93,281
Increase in cash and cash
equivalents 2,597 3,960
Cash and cash equivalents, beginning
of the period 4,735 4,299
Cash and cash equivalents, end of the
period $7,332 $8,259
Supplemental disclosure of cash flow
information:
Cash paid for interest (net of
capitalized interest of $361
for the three months ended June
30, 2004) $59,822 $51,889
Income tax payments $417 $358
CARRAMERICA REALTY CORPORATION
Funds From Operations
Funds from operations ("FFO") and funds available for distribution ("FAD")
are used as measures of operating performance for real estate companies. We
provide FFO and FAD as a supplement to net income calculated in accordance
with accounting principles generally accepted in the United States of America
("GAAP"). Although FFO and FAD are widely used measures of operating
performance for equity REITs, they do not represent net income calculated in
accordance with GAAP. As such, they should not be considered an alternative to
net income as an indication of our operating performance. In addition, FFO or
FAD does not represent cash generated from operating activities in accordance
with GAAP, nor do they represent cash available to pay distributions and
should not be considered as an alternative to cash flow from operating
activities, determined in accordance with GAAP, as a measure of our liquidity,
nor are they indicative of funds available to fund our cash needs, including
our ability to make cash distributions. The National Association of Real
Estate Investment Trusts (NAREIT) defines FFO as net income (computed in
accordance GAAP), excluding gains (losses) on sales of property, plus
depreciation and amortization of assets uniquely significant to the real
estate industry and after adjustments for unconsolidated partnerships and
joint ventures. Adjustments for unconsolidated partnerships and joint ventures
are calculated to reflect FFO on the same basis.
We believe that FFO and FAD are helpful to investors as a measure of our
performance because they exclude various items included in net income that do
not relate to or are not indicative of our operating performance, such as
gains and losses on sales of real estate and real estate related depreciation
and amortization, which can make periodic analyses of operating performance
more difficult to compare. FAD deducts various capital items and non-cash
revenue from diluted FFO available to common shareholders. Our management
believes, however, that FFO and FAD, by excluding such items, which can vary
among owners of identical assets in similar condition based on historical cost
accounting and useful life estimates, can help compare the operating
performance of a company's real estate between periods or as compared to
different companies. Our FFO or FAD may not be comparable to FFO or FAD
reported by other REITs. These REITs may not define FFO in accordance with the
current NAREIT definition or may interpret the current NAREIT definition
differently than us. They may include or exclude items which we include or
exclude from FAD.
(Unaudited and in thousands) Three Months Ended
June 30,
2005 2004
Net income $11,868 $14,007
Adjustments: Minority interest 1,977 2,139
FFO allocable to the
minority Unitholders (3,796) (3,502)
Depreciation and
amortization - Consolidated
properties 32,766 28,777
Depreciation and
amortization -
Unconsolidated properties 4,338 4,018
Depreciation and
amortization - Discontinued
operations 65 2,721
Minority interests' (non
Unitholders) share of
depreciation, amortization
and net income (263) (267)
(Gain) loss on sale of
properties (4,436) 48
FFO as defined by NAREIT 42,519 47,941
Less: Preferred dividends and
dividends on unvested
restricted stock (4,044) (3,782)
FFO attributable to common shareholders 38,475 44,159
FFO allocable to the minority Unitholders 3,796 3,502
Diluted FFO available to common
shareholders(1) $42,271 $47,661
Less: Lease commissions (3,012) (4,690)
Lease incentives (559) (1,002)
Tenant improvements (9,656) (13,667)
Building capital additions (2,102) (2,348)
Lease intangible
amortization 2,011 (331)
Impairment losses 210 -
Straight line rent 331 (801)
Funds available for distribution to
common shareholders(2) $29,494 $24,822
(Unaudited and in thousands) Six Months Ended
June 30,
2005 2004
Net income $106,910 $29,237
Adjustments: Minority interest 3,768 4,165
FFO allocable to the
minority Unitholders (7,153) (7,060)
Depreciation and
amortization - Consolidated
properties 65,651 57,673
Depreciation and
amortization -
Unconsolidated properties 7,914 7,500
Depreciation and
amortization - Discontinued
operations 332 5,581
Minority interests' (non
Unitholders) share of
depreciation, amortization
and net income (548) (540)
(Gain) loss on sale of
properties (92,530) (8)
FFO as defined by NAREIT 84,344 96,548
Less: Preferred dividends and
dividends on unvested
restricted stock (8,089) (7,563)
FFO attributable to common shareholders 76,255 88,985
FFO allocable to the minority
Unitholders 7,153 7,060
Diluted FFO available to common
shareholders(1) $83,408 $96,045
Less: Lease commissions (7,283) (6,966)
Lease incentives (595) (2,264)
Tenant improvements (15,371) (23,707)
Building capital additions (3,950) (3,756)
Lease intangible
amortization 4,022 (601)
Impairment losses 4,210 -
Straight line rent (2,156) (3,037)
Funds available for distribution to
common shareholders(2) $62,285 $55,714
(1) Diluted funds from operations is computed as FFO attributable to
common shareholders adjusted to reflect all operating partnership
units as if they were converted to common shares for any period in
which they are not antidilutive.
(2) Adjustments to arrive at FAD do not include amounts associated with
properties in unconsolidated entities.
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands, except
per share amounts) Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Diluted net income per common share $0.14 $0.19 $1.69 $0.39
Add: Depreciation and amortization 0.61 0.59 1.22 1.19
Gain on sale of properties (0.07) - (1.53) -
Minority interest adjustment 0.03 0.04 - 0.07
Adjustment for share difference (0.02) (0.02) - (0.04)
Diluted funds from operations
available to common shareholders $0.69 $0.80 $1.38 $1.61
Weighted average common shares
outstanding:
Diluted net income 55,466 54,339 60,444 54,272
Diluted funds from operations 60,665 59,732 60,444 59,697
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands,
except per share amounts) Projected Projected
Three Months Ended Twelve Months Ended
September 30, 2005 December 31, 2005
Projected diluted net
income per common share $ (0.05) - 0.00 1.66 - 1.76
Add: Projected depreciation
and amortization 0.62 2.46
Projected minority interest 0.02 (0.01)
Projected amortization of
tenant improvement
allowances 0.01 0.02
Less: Gain on sale of properties - (1.52)
Projected adjustment for share
difference - -
Projected diluted funds from
operations per common share $ 0.60 - 0.65 2.61 - 2.71
Projected weighted average
common shares outstanding:
Projected diluted net income 55,500 60,900
Projected diluted funds from
operations 61,100 60,900
SOURCE CarrAmerica Realty Corporation
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Related links:
http://www.carramerica.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO
AP Archive: http://photoarchive.ap.org PRN Photo Desk
photodesk@prnewswire.com
CONTACT:
Media: Karen Widmayer, +1-202-729-1789,
karen.widmayer@carramerica.com, or Analysts: Stephen Walsh,
+1-202-729-1764, stephen.walsh@carramerica.com, both of
CarrAmerica Realty Corporation
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