Third Quarter Performance Highlights
- Funds From Operations (FFO) increased 15% over the corresponding quarter
one year ago
- Company completed industrial facility leases totaling 736,000 square
feet, and generating 20% increase in effective rents over ending rates
on expired leases
- Industrial same-store net operating income increased 9% over one year
ago
- Multifamily same-store net operating income increased 16% over one year
ago
- September 30 industrial portfolio occupancy rate: 97%
- September 30 multifamily portfolio occupancy rate: 97%
NEWPORT BEACH, Calif., Nov. 7 /PRNewswire/ -- Pacific Gulf Properties Inc.
(NYSE: PAG), an equity real estate investment trust (REIT) that owns, develops
and manages industrial and multifamily properties, including rental housing
for 'active seniors,' today reported the Company's operating results for
September 30, 2000. For the third quarter ended September 30, pro forma Funds
From Operations (assuming the conversion of all preferred shares) totaled
$17,103,000, or $0.71 per share. That number reflects an increase of 15% per
share over the $14,560,000, or $0.62 per share, generated one year ago, which
is due primarily to strong increases in same-store rents.
For the nine months ended September 30, pro forma Funds From Operations
increased 13% to $49,254,000, or $2.07 per share, over $43,226,000, or $1.84
per share, for the one-year-ago period. That increase also was due to strong
growth in same-store rents.
Net operating income, or gross rental income less rental operating
expenses, for the third quarter of 2000 was $26,807,000 on revenues of
$34,932,000, versus $23,619,000 on revenues of $31,557,000 for the year-ago
period. This represents a 13% increase for the Company. Income available to
common shareholders was $8,318,000, or $0.39 per diluted share, compared with
$7,677,000, or $0.38 per diluted share, as reported in the third quarter of
1999.
Net operating income for the first nine months of 2000 was $77,736,000 on
revenues of $101,929,000, versus $68,983,000 on revenues of $92,111,000 one
year ago, representing a 13% increase. Income available to common
shareholders increased to $26,788,000, or $1.27 per diluted share, from
$25,550,000, or $1.26 per diluted share, one year ago.
INDUSTRIAL PORTFOLIO
Within the Company's industrial portfolio, Pacific Gulf Properties
completed leases for 736,000 square feet at its stabilized properties during
the third quarter of 2000. This activity generated a 20% increase in
effective rental rates over ending rates on expired leases. Industrial
properties generated 82% of the Company's total net operating income during
the third quarter and the first nine months of 2000. For the first nine
months of 2000, 3.1 million square feet were re-leased at the Company's
stabilized properties, reflecting a 14% increase in effective rental rates
over ending rates on expired leases.
Same-store results for the 12.1 million square feet of industrial
properties owned during both the third quarter of 2000 and the third quarter
of 1999 reflect an increase in net operating income of 9%, due primarily to an
8% increase in rental revenues. For the first nine months of 2000, compared
with the first nine months of 1999, same-store net operating income increased
10%, due to a 9% increase in rental revenues.
As of September 30, the occupancy rate in the Company's industrial
portfolio was 97%, compared to 96% in 1999.
MULTIFAMILY PORTFOLIO
Same-store net operating income in the multifamily operations increased
16% during the third quarter, versus the same period one year ago, resulting
primarily from a 7% increase in rental revenues. For the first nine months of
2000, same-store net operating income increased 12% over the same period one
year ago, due primarily to an 8% increase in revenues. Overall occupancy for
the multifamily portfolio at September 30 was 97% in 2000, compared with 96%
in 1999.
At September 30, 2000, Pacific Gulf Properties' multifamily portfolio
included 3,069 units, of which 1,438 are in rental communities designed for
active seniors age 55 and better.
SPECIAL MEETING OF SHAREHOLDERS
On November 9, 2000, Pacific Gulf Properties will hold a special meeting
of shareholders at which shareholders will consider and vote upon the sale of
the Company's industrial properties portfolio to CalWest Industrial
Properties, LLC, and the sale of the Company's remaining assets and
liquidation.
Pacific Gulf Properties is a real estate investment trust (REIT) that
owns, develops and manages a portfolio of industrial properties targeting
small to mid-size tenants in selected high-growth U.S. western markets. The
Company's industrial portfolio includes 72 properties encompassing more than
14.9 million square feet of space. Pacific Gulf also maintains a multifamily
portfolio that includes eight rental communities comprising approximately
1,500 units designed for the burgeoning population of active seniors age 55
and older. The company is headquartered in Newport Beach, California. For
more information please visit the Company's web site, http://www.pacificgulf.com.
Forward-looking statements and comments in this press release are made
pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934. Such statements relating to, among other things,
events, conditions, prospects and financial trends that may affect the
company's future plans of operations, business strategy, growth of operations
and financial position are not guarantees of future performance and are
necessarily subject to risks and uncertainties, some of which are significant
in scope and nature, including without limitation, increased competition,
adverse economic trends, increasing interest rates and other factors.
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
Sept. 30, 2000 December 31, 1999
(Unaudited) (Audited)
ASSETS
Real estate assets
Operating properties
Land $229,134 $232,665
Buildings 658,311 657,347
887,445 890,012
Accumulated depreciation (84,097) (72,715)
803,348 817,297
Properties held for sale 34,778 --
Properties under development,
including land 50,237 52,815
888,363 870,112
Cash and cash equivalents 4,284 2,177
Accounts receivable 6,215 4,005
Other assets 18,315 15,627
$917,177 $891,921
LIABILITIES AND SHAREHOLDERS' EQUITY
Loans payable $437,273 $418,343
Accounts payable and accrued liabilities 21,893 17,244
Dividends payable 10,654 10,366
469,820 445,953
Minority interests in consolidated
partnerships 16,426 18,077
Commitments and contingencies -- --
Shareholders' equity
Preferred shares, $.01 par value;
10,000,000 shares authorized;
2,763,116 Senior Cumulative Convertible
Class A shares outstanding at September
30, 2000, and Dec. 31, 1999, respectively 28 28
Preferred shares, $.01 par value; 300,000
shares authorized; Class C Junior
Participating Cumulative Preferred
Stock; no shares outstanding -- --
Common shares, $.01 par value; 100,000,000
shares authorized; 21,340,608 and
20,685,402 shares outstanding at
September 30, 2000 and December 31,
1999, respectively 214 207
Less: Restricted stock and notes
receivable issued for common stock (11,105) (1,011)
Additional paid-in capital 439,171 424,450
Retained Earnings 2,623 4,217
430,931 427,891
$917,177 $891,921
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
(Unaudited)
Nine Months Ended September 30
2000 1999
REVENUES
Rental income
Industrial properties $81,352 $72,812
Multifamily properties 20,577 19,299
101,929 92,111
EXPENSES
Rental property expenses
Industrial properties 17,439 16,187
Multifamily properties 6,754 6,941
24,193 23,128
Depreciation 22,104 19,067
Interest (including amortization of
debenture discount and financing costs
of $532 and $633 respectively) 21,925 20,518
General and administrative expenses 5,661 5,026
Minority partners' interest in earnings
of consolidated partnerships 896 967
74,779 68,706
INCOME BEFORE GAIN ON SALES OF
REAL ESTATE 27,150 23,405
Gain on sales of real estate 3,431 5,852
NET INCOME 30,581 29,257
Less preferred dividend requirements 3,793 3,707
INCOME AVAILABLE TO COMMON SHAREHOLDERS $26,788 $25,550
EARNINGS PER SHARE
Basic $1.28 $1.28
Diluted $1.27 $1.26
DIVIDENDS DECLARED PER COMMON SHARE $1.32 $1.29
PACIFIC GULF PROPERTIES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
2000 1999
REVENUES
Rental income
Industrial properties $27,872 $24,986
Multifamily properties 7,060 6,571
34,932 31,557
EXPENSES
Rental property expenses
Industrial properties 5,873 5,496
Multifamily properties 2,252 2,442
8,125 7,938
Depreciation 7,537 6,688
Interest (including amortization of
debenture discount and financing costs of
$175 and $210, respectively) 7,401 6,965
General and administrative expenses 2,011 1,907
Minority interest in earnings of
consolidated partnerships 292 374
25,366 23,872
INCOME BEFORE GAIN ON SALES OF REAL ESTATE 9,566 7,685
Gain on sales of real estate 16 1,228
NET INCOME 9,582 8,913
Less preferred dividend requirements 1,264 1,236
INCOME AVAILABLE TO COMMON SHAREHOLDERS $8,318 $7,677
EARNINGS PER SHARE
Basic $0.39 $0.38
Diluted $0.39 $0.38
DIVIDEND DECLARED PER COMMON SHARE $0.44 $0.43
FUNDS FROM OPERATIONS (a)
SUPPLEMENTAL TABLE
(In thousands except share data)
For the Three Months Ended For the Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
Income Available to
Common Shareholders $8,318 $7,677 $26,788 $25,550
Gain on sales of
real estate (16) (1,228) (3,431) (5,852)
Depreciation 7,537 6,688 22,104 19,067
Funds from Operations $15,839 $13,137 $45,461 $38,765
Weighted Average Common
Shares Outstanding 21,214 20,165 20,854 20,036
Funds from Operations
per Common Share $0.75 $ 0.65 $ 2.18 $1.93
(a) Industry analysts generally consider funds from operations ("FFO") an
appropriate measure of performance of a real estate investment trust
("REIT"). Funds from operations represent amounts available to common
shareholders and is defined as net income (computed in accordance with
generally accepted accounting principles), excluding gains (or losses)
from debt restructuring and sales of property, plus depreciation and
amortization (excluding amortization of deferred financing costs and
depreciation of non real estate assets), and after adjustments for
unconsolidated partnerships and joint ventures and preferred dividend
requirements.
PRO FORMA FUNDS FROM OPERATIONS (b)
Funds from Operations $15,839 $13,137 $45,461 $38,765
Preferred Dividend
Requirements 1,264 1,236 3,793 3,707
Interest Expense on
Debentures --- 166 --- 671
Amortization of Debenture
Discount and Costs --- 21 --- 83
Pro Forma Funds from
Operations $17,103 $14,560 $49,254 $43,226
Weighted Average Common
Shares Outstanding 21,214 20,165 20,854 20,036
Additional Shares
Assuming Conversion
Other (c) 230 135 141 134
Preferred Stock 2,763 2,763 2,763 2,763
Debentures --- 465 --- 590
Pro Forma Weighted
Average Outstanding
Shares 24,207 23,528 23,758 23,523
Pro Forma Funds from
Operations per Common
Share $0.71 $0.62 $2.07 $1.84
(b) Pro Forma Funds from Operations Calculations -- Assumes the conversion
of Convertible Subordinated Debentures and Preferred Stock and
excludes the conversion oflimited partnership units (consistent with
the Company's previous calculation methodology).
(c) Represents non-vested restricted stock and options as converted.
SOURCE Pacific Gulf Properties Inc.
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Related links:
http://www.pacificgulf.com
Company News On-Call:
http://www.prnewswire.com/comp/671475.html or fax,
800-758-5804, ext. 671475
CONTACT:
Donald G. Herrman, Chief Financial Officer,
949-223-5000, or Victoria J. Baker, General Information,
703-370-8652, both of Pacific Gulf Properties Inc.
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