WASHINGTON, Oct. 27 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today reported third quarter 2005 diluted earnings per
share of $0.17 on net income of $13.6 million, compared to diluted earnings
per share of $0.61 on net income of $37.6 million for the third quarter of
2004. For the first nine months of 2005, diluted earnings per share,
including the impairment charges discussed below, were $1.88 on net income of
$120.5 million compared to $1.01 on net income of $66.8 million a year ago.
Net income for the three and nine months ended September 30, 2005 includes
gains from disposition of properties of $11.2 million and $103.7 million,
respectively. Net income for the three and nine months ended September 30,
2004 includes gains from dispositions of properties of $19.8 million.
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For the third quarter of 2005, diluted funds from operations available to
common shareholders (Diluted FFO), including the impairment charges discussed
below, were $40.1 million or $0.64 per share compared to $51.2 million or
$0.85 per share for the third quarter of 2004. Diluted FFO for the nine-month
period ended September 30, 2005 was $123.6 million or $2.02 per share as
compared to $147.2 million or $2.46 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.
The three and nine months ended September 30, 2005 include $0.6 million
and $4.9 million, respectively, of impairment losses.
Portfolio Report
CarrAmerica President and COO, Philip L. Hawkins, commented,
"CarrAmerica's markets continue to recover in terms of both occupancy and
rents. With 700,000 square feet of leasing accomplished in the third quarter,
we continue to see evidence of increased demand related to job growth and
economic expansion."
Occupancy for consolidated properties was 87.6% at September 30, 2005 as
compared to 87.0% at September 30, 2004. Same store property operating income
for the third quarter of 2005 decreased 6.3% on a GAAP basis over the same
period in 2004 due primarily to the impact of rental rates in new leases being
substantially lower than rental rates in expiring leases in many of
CarrAmerica's markets and also as a result of approximately 400,000 square
feet of office space in Washington, D.C. being out of service for most of the
third quarter as it was prepared for a new tenant. The average occupancy rate
for same store properties was 86.2% in the third quarter of 2005, down from
87.4% during the third quarter of 2004 due primarily to the lost occupancy
associated with the 400,000 square foot tenant noted above. The Company has
executed leases for approximately 800,000 square feet of office space for
which revenue recognition has not yet begun and which are not included in our
occupancy statistics as of September 30, 2005.
For the third quarter of 2005, rental rates decreased 18.0% on average on
the leases executed during the quarter. The Company leased 717,000 square
feet of office space in the third quarter of 2005 versus 566,000 square feet
for the same period in 2004.
Acquisitions
During the third quarter, CarrAmerica completed the acquisition of
approximately 719,000 square feet in 9 office buildings for a total price of
approximately $213.0 million. The properties are located in Arlington, VA,
San Diego, Northern California and Seattle. These properties include:
* Park Place, a 166,000 square foot, Class A office building in Rosslyn,
Virginia for approximately $61.6 million. The building is currently
94.0% leased or committed with an expected year-one GAAP return of
approximately 7.0%.
* West Willows Technology Center, a 3-building, 156,000 square foot, Class
A R&D project located in Redmond, Washington for approximately $35.6
million. The project is 100% leased to Cingular with an expected year-
one GAAP return of approximately 8.1%.
* Chancellor Park, a two-building, 191,000 square foot, Class A office
project in the University Town Center (UTC) submarket of San Diego,
California for approximately $56.0 million. The project is currently
79.0% leased and is expected to provide a year one GAAP return of 6.0%
and a stabilized GAAP return of approximately 7.2%.
* 313 and 323 Fairchild Drive, a two-building 132,000 square foot, Class A
office project in Mountain View, California for $53.6 million. The
buildings are 100% leased to Nokia through 2009 and are expected to
provide a year one GAAP return of 6.7%. Rental rates on in-place leases
are significantly above current market rental rates. As a result,
current GAAP returns, which reflect the mark to market of rents, are
significantly less than year one cash yields, which are expected to be
approximately 9.3%.
* 2711 North First Street in San Jose, California, a 75,000 square foot,
office/R&D project for approximately $6.2 million, a substantial
discount to replacement cost. The property was acquired vacant, giving
CarrAmerica an opportunity to utilize leasing and management skills to
improve the property and its income. The building is proximate to an
established CarrAmerica property management staff overseeing 4.5 million
square feet of office and R&D space in Silicon Valley.
Total investments year-to-date, including CarrAmerica's minority
investment in a joint venture earlier in the year, are approximately $260.4
million.
Dispositions
During the third quarter, CarrAmerica closed on the sale of Hacienda West,
a 208,000 square foot project in Pleasanton, California for $38.3 million.
The Company recorded a gain of approximately $11.1 million in connection with
this sale.
Also, during the third quarter, CarrAmerica closed on the sale of three
buildings totaling 440,000 square feet, located in Phoenix and Tucson, Arizona
for approximately $64.3 million. The company recognized an impairment loss of
approximately $0.6 million associated with the sale of these buildings.
Subsequent to the end of the third quarter, CarrAmerica closed on the sale
of one additional building totaling 92,000 square feet in Phoenix, Arizona for
$12.0 million with no gain or loss. CarrAmerica had previously recognized an
impairment loss of $0.2 million on this property in the second quarter of
2005.
Also subsequent to the third quarter, a joint venture in which CarrAmerica
is a 20% partner sold 300 W. 6th Street, a 428,000 square foot building in
Austin, Texas for $131.7 million. Net proceeds to CarrAmerica after repayment
of property level debt was approximately $16.6 million, and CarrAmerica
realized a gain of approximately $7.7 million net of $4.0 million of tax in
connection with the sale.
On a year to date basis, including its 20% interest in 300 W. 6th Street
and its sale of a portion of CarrAmerica Corporate Center, CarrAmerica has
completed sales totaling $373.9 million.
One additional project in Reston, Virginia is under contract for sale with
contingencies waived. Closing on this project is expected to occur in January
2006, subject to normal closing contingencies. CarrAmerica is in the process
of marketing additional assets for sale in Dallas, Texas; Burbank, California
and San Jose, California. There is no assurance that any of these additional
sales will be consummated.
We have decided, based on current returns and other market factors, that
we will seek to sell our wholly-owned properties in Chicago and Denver. We
expect to begin marketing these properties early in 2006. We intend to
reinvest the proceeds from the sale of Chicago and Denver in our other markets
where we believe we will recognize a greater return on our invested capital.
We have not yet begun to market these properties and, as a result, have not
yet determined their fair market value or expected sales prices. There can be
no assurance that these dispositions will be consummated on favorable terms,
if at all.
Capital Markets
On August 5, 2005, CarrAmerica issued 2,649,000 shares of common stock.
The net proceeds of the offering was approximately $99.5 million and was used
to repay a portion of the borrowings under our $500.0 million revolving credit
facility and in turn fund current and potential acquisitions and other working
capital and general corporate purposes, including the funding of dividends on
our common and preferred stock and making distributions to third party
unitholders in certain of our subsidiaries.
CarrAmerica Earnings Estimates
On Friday, October 28, CarrAmerica management will discuss earnings
guidance for 2005 and 2006 which includes the impairment charges previously
disclosed. Diluted earnings per share of $2.01 - $2.05 and Diluted FFO per
share of $2.64 - $2.68 for 2005 will be discussed. Fourth quarter 2005
diluted earnings per share and Diluted FFO per share of $0.12 - $0.16 and
$0.62 - $0.66 respectively, will also be discussed. Diluted earnings per
share of ($0.01) - $0.17 and Diluted FFO per share of $2.52 - $2.70 for 2006
will also be discussed. The projections for 2005 and 2006 are based in part
on the following assumptions:
2005 2006
Average Office Portfolio
Occupancy 87.5% - 88.0% 91.0% - 93.0%
Real Estate Service
Revenue $22.0 - $22.5 million $22.0 - $24.0 million
General and Administrative
Expense $41.0 - $42.0 million $41.0 - $43.0 million
Termination Fees $ 3.5 - $ 4.0 million $ 1.0 - $ 3.0 million
Debt prepayment penalties $ 1.0 - $ 2.0 million -----
Estimates for 2005 include gains on the sale of property ($111.4 million)
and the impairment charges ($4.9 million) 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, including any potential gains
or losses or asset impairments that may in the future be recognized as a
result of the sale of some or all of our properties located in Chicago and
Denver. 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. Our 2006 estimate also assumes that straight-line
rents on in-place leases that expire in 2006 exceed market rental rates by
10.0 % -12.0%. On a weighted average basis for the full year, dispositions
are expected to exceed acquisitions by approximately $50.0 to $65.0 million
for the year. For 2006, on a weighted basis, acquisitions are expected to
approximately equal dispositions.
CarrAmerica Announces Third Quarter Dividend
The Board of Directors of CarrAmerica today declared a third 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 November 18,
2005. CarrAmerica's common stock will begin trading ex-dividend on November
16, 2005 and the dividend will be paid on November 30, 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 November 18, 2005. The preferred stock will begin
trading ex-dividend on November 16, 2005 and the dividends will be paid on
November 30, 2005.
CarrAmerica Third Quarter Webcast and Conference Call
CarrAmerica will conduct a conference call to discuss 2005 third quarter
results on Friday, October 28, 2005 at 11:00 A.M, 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-
800-475-3716 for U.S. participants and 1-719-457-2728 for international
participants. The call is open to all interested persons. A taped replay of
the conference call can be accessed from 3:00 PM ET on October 28, 2005 until
midnight November 11, 2005, by dialing 1-888-203-1112 for U.S. callers and 1-
719-457-0820 for international callers, passcode 8955457.
A copy of supplemental material on the Company's third 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 companies by meeting the 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 294 operating office
properties, totaling approximately 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 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 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 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 and on acceptable terms, our ability to
successfully reinvest the proceeds from dispositions in other properties or
markets with improved returns, our ability to complete development projects on
time and within budget and our ability to stabilize such projects, 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 reasonable cost; ability to maintain our status as a REIT for
federal and state income tax purposes; ability to raise capital; 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
September 30, December 31,
(In thousands) 2005 2004
(Unaudited)
Assets
Rental property:
Land $750,414 $779,482
Buildings 2,002,284 2,064,678
Tenant improvements 455,441 448,515
Furniture, fixtures and equipment 48,387 45,879
3,256,526 3,338,554
Less: Accumulated depreciation (759,879) (750,530)
Net rental property 2,496,647 2,588,024
Land held for future development or sale 41,782 41,676
Assets held for sale 35,785 -
Cash and cash equivalents 6,590 4,735
Restricted deposits 103,267 1,364
Accounts and notes receivable, net 54,927 52,438
Investments in unconsolidated entities 153,919 138,127
Accrued straight-line rents 83,869 84,396
Tenant leasing costs, net 57,886 53,908
Intangible assets, net 104,223 98,354
Prepaid expenses and other assets 22,385 18,170
$3,161,280 $3,081,192
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable, net $1,900,621 $1,941,130
Accounts payable and accrued expenses 90,325 107,409
Rent received in advance and
security deposits 37,187 40,304
2,028,133 2,088,843
Minority interest 59,902 65,378
Stockholders' equity:
Preferred stock 201,250 201,250
Common stock 584 548
Additional paid-in capital 1,147,021 1,025,388
Cumulative dividends in excess of
net income (275,869) (300,500)
Accumulated other comprehensive income 259 285
1,073,245 926,971
Commitments and contingencies
$3,161,280 $3,081,192
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share
amounts) 2005 2004 2005 2004
(Unaudited) (Unaudited)
Revenues:
Rental income (1):
Minimum base rent $92,962 $94,663 $285,812 $278,546
Recoveries from tenants 14,062 14,529 42,528 41,187
Parking and other tenant charges 4,712 4,146 12,463 14,625
Total rental revenue 111,736 113,338 340,803 334,358
Real estate service revenue 5,128 6,234 15,923 17,001
Total operating revenues 116,864 119,572 356,726 351,359
Operating expenses:
Property expenses:
Operating expenses 30,655 29,830 90,515 87,120
Real estate taxes 10,292 9,804 31,193 30,051
General and administrative 10,121 10,304 31,049 31,334
Depreciation and amortization 34,751 32,024 102,310 91,215
Total operating expenses 85,819 81,962 255,067 239,720
Real estate operating income 31,045 37,610 101,659 111,639
Other (expense) income:
Interest expense (29,100) (28,362) (86,746) (82,538)
Equity in earnings of
unconsolidated entities 709 3,644 2,751 7,391
Interest and other income 2,009 505 5,021 1,729
Net other expense (26,382) (24,213) (78,974) (73,418)
Income from continuing
operations before income
taxes, minority interest,
impairment losses on real
estates and gain (loss) on
sale of properties 4,663 13,397 22,685 38,221
Income taxes (428) 19 (730) (135)
Minority interest (3,396) (2,192) (7,164) (6,357)
Impairment losses on real estate - - (4,000) -
Gain (loss) on sale of properties 29 - 88,786 (58)
Income from continuing
operations 868 11,224 99,577 31,671
Discontinued operations - Net
operations of sold properties 12,759 26,332 20,960 35,122
Net income 13,627 37,556 120,537 66,793
Less: Dividends on preferred
and restricted stock (4,020) (3,931) (12,062) (11,794)
Net income available to common
shareholders $9,607 $33,625 $108,475 $54,999
Basic net income per share:
Continuing operations $(0.05) $0.13 $1.57 $0.37
Discontinued operations 0.22 0.49 0.38 0.65
Net income $0.17 $0.62 $1.95 $1.02
Diluted net income per share:
Continuing operations $(0.05) $0.13 $1.54 $0.36
Discontinued operations 0.22 0.48 0.34 0.65
Net income $0.17 $0.61 $1.88 $1.01
NOTE: (1) Rental income includes $3,817 and $1,715 of accrued straight
line rents for the three months ended Sept. 30, 2005 and 2004, respectively,
and $5,973 and $4,752 for the nine months ended Sept. 30, 2005 and 2004,
respectively.
CARRAMERICA REALTY CORPORATION
Consolidated Statements of Cash Flow
Nine Months Ended
(In thousands) September 30,
2005 2004
(Unaudited)
Cash flow from operating activities:
Net income $120,537 $66,793
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 105,160 99,882
Minority interest 7,164 6,357
Equity in earnings of unconsolidated
entities (2,751) (7,391)
Operating distributions from
unconsolidated entities 6,525 3,498
(Gain) loss sale of properties (88,786) 58
Gain on sale of properties -
discontinued operations (14,938) (19,870)
Gain on sale of residential property (375) (326)
Impairment losses on real estate 4,859 -
Lease intangibles amortization 7,128 (704)
Amortization of deferred financing costs 3,429 3,713
(Recovery of) provision for uncollectible
accounts (886) 444
Stock based compensation 4,171 2,538
Other 1,729 (647)
Change in assets and liabilities:
Decrease in accounts receivable 4,002 4,847
Increase in accrued straight-line rents (6,501) (4,753)
Additions to tenant leasing costs (12,918) (10,052)
Increase in intangible assets, prepaid
expenses and other assets (10,782) (4,534)
Decrease in accounts payable and accrued
expenses (24,193) (19,785)
Decrease in rent received in advance and
security deposits (4,784) (1,679)
Total adjustments (22,747) 51,596
Net cash provided by operating activities 97,790 118,389
Cash flows from investing activities:
Rental property additions (7,369) (6,280)
Additions to tenant improvements (32,146) (36,707)
Additions to land held for development or
sale and construction in progress (381) (3,217)
Rental property acquisitions and deposits (226,633) (320,379)
Issuance of notes receivable (10,545) (13,164)
Payments on notes receivable 6,062 -
Distributions from unconsolidated entities 3,025 1,891
Investments in unconsolidated entities (14,545) (13,936)
Acquisition of minority interest (4,795) (4,406)
Increase in restricted deposits (101,895) (1,407)
Proceeds from sale of residential property 1,663 2,727
Proceeds from sales of properties 319,376 201,702
Net cash provided by (used in)
investing activities (68,183) (193,176)
Cash flows from financing activities:
Issuance of common stock 99,471 -
Exercises of stock options 18,486 34,881
Repayment of unsecured notes (100,000) (150,000)
Termination of interest rate swap agreement (1,996) -
Proceeds from the issuance of unsecured
notes, net - 419,967
Net borrowings (repayments) on unsecured
credit facility 65,000 (100,500)
Net repayments of mortgages and notes
payable (4,385) (30,043)
Dividends and distributions to minority
interests (104,328) (100,621)
Net cash (used in) provided by financing
activities (27,752) 73,684
Increase (decrease) in cash and cash
equivalents 1,855 (1,103)
Cash and cash equivalents, beginning of the
period 4,735 4,299
Cash and cash equivalents, end of the period $6,590 $3,196
Supplemental disclosure of cash flow information:
Cash paid for interest (net of capitalized
interest of $457 for the nine months ended
September 30, 2004) $97,426 $90,399
Income tax payments $516 $870
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
September 30,
2005 2004
Net income $13,627 $37,556
Adjustments:
Minority interest 3,396 2,192
FFO allocable to the minority Unitholders (3,100) (3,653)
Depreciation and amortization -
Consolidated properties 32,953 30,290
Depreciation and amortization -
Unconsolidated properties 4,401 3,685
Depreciation and amortization -
Discontinued operations 740 1,341
Amortization - Allowances for tenant owned
improvements 451 -
Minority interests' (non Unitholders)
share of depreciation, amortization and
net income (256) (258)
(Gain) loss on sale of properties (11,196) (19,804)
FFO as defined by NAREIT 41,016 51,349
Less: Preferred dividends and dividends on
unvested restricted stock (4,020) (3,790)
FFO attributable to common shareholders 36,996 47,559
FFO allocable to the minority Unitholders 3,100 3,653
Diluted FFO available to common shareholders(1) $40,096 $51,212
Less: Lease commissions (5,636) (3,088)
Lease incentives and allowances for
tenant owned improvements (2,604) (163)
Tenant improvements (9,218) (12,556)
Building capital additions (3,689) (2,359)
Lease intangible amortization(3) 2,655 (103)
Impairment losses 649 -
Straight line rent (3,817) (1,715)
Funds available for distribution to
common shareholders(2) $18,436 $31,228
CARRAMERICA REALTY CORPORATION
Funds From Operations
(Unaudited and in thousands) Nine Months Ended
September 30,
2005 2004
Net income $120,537 $66,793
Adjustments:
Minority interest 7,164 6,357
FFO allocable to the minority Unitholders (10,253) (10,713)
Depreciation and amortization -
Consolidated properties 96,826 86,224
Depreciation and amortization -
Unconsolidated properties 12,315 11,185
Depreciation and amortization -
Discontinued operations 2,850 8,661
Amortization - Allowances for tenant
owned improvements 451 -
Minority interests' (non Unitholders)
share of depreciation, amortization and
net income (804) (798)
(Gain) loss on sale of properties (103,726) (19,812)
FFO as defined by NAREIT 125,360 147,897
Less: Preferred dividends and dividends on
unvested restricted stock (12,062) (11,371)
FFO attributable to common shareholders 113,298 136,526
FFO allocable to the minority Unitholders 10,253 10,713
Diluted FFO available to common shareholders(1) $123,551 $147,239
Less: Lease commissions (12,919) (10,054)
Lease incentives and allowances for
tenant owned improvements (3,199) (2,427)
Tenant improvements (24,589) (36,263)
Building capital additions (7,639) (6,115)
Lease intangible amortization(3) 6,676 (704)
Impairment losses 4,859 -
Straight line rent (5,973) (4,752)
Funds available for distribution to common
shareholders(2) $80,767 $86,924
(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.
(3) Amortization associated with above/below market leases and lease
incentives.
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands, except
per share amounts) Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Diluted net income per common share $0.17 $0.61 $1.88 $1.01
Add: Depreciation and amortization 0.61 0.59 1.84 1.77
Gain on sale of properties (0.18) (0.33) (1.69) (0.33)
Minority interest adjustment 0.05 0.04 (0.01) 0.11
Adjustment for share difference (0.01) (0.06) - (0.10)
Diluted funds from operations
available to common shareholders $0.64 $0.85 $2.02 $2.46
Weighted average common shares
outstanding:
Diluted net income 57,534 54,669 61,248 54,332
Diluted funds from operations 62,731 60,069 61,248 59,799
CARRAMERICA REALTY CORPORATION
Funds From Operations (con't)
(Unaudited and in thousands,
except per share amounts) Projected Projected Projected
Three Months Twelve Months Twelve Months
Ended Ended Ended
December 31, December 31, December 31,
2005 2005 2006
Projected diluted net
income per common share $ 0.12 - 0.16 2.01 - 2.05 (0.01) - 0.17
Add: Projected depreciation
and amortization 0.59 2.42 2.39
Projected minority
interest 0.03 (0.01) 0.11
Projected amortization
of tenant owned
improvement
allowances 0.01 0.02 0.04
Less: Gain on sale of
properties (0.12) (1.80) -
Projected adjustment for
share difference (0.01) - (0.01)
Projected diluted funds
from operations per common
share $ 0.62 - 0.66 2.64 - 2.68 2.52 - 2.70
Projected weighted
average common shares
outstanding:
Projected diluted
net income 58,500 61,800 59,100
Projected diluted
funds from operations 63,600 61,800 64,200
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; Analyst: Stephen Walsh,
+1-202-729-1764, stephen.walsh@carramerica.com, both of
CarrAmerica Realty Corporation
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