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| AMLI Residential Announces Fourth Quarter and Full Year 2001 Operating Results and Declares Dividend |
CHICAGO, Feb. 5 /PRNewswire-FirstCall/ -- AMLI Residential Properties Trust (NYSE: AML) announces today operating results for the fourth quarter and full year ended December 31, 2001. Funds From Operations, Net Income and Operating EPS Funds From Operations ("FFO") for the fourth quarter 2001 was $14,901,000, or $0.58 per common share, compared to $16,877,000, or $0.68 per common share, for the fourth quarter 2000. Earnings for the fourth quarter 2001 included a charge to reduce the carrying value of the Company's inventory of land held for development by $2,086,000, or $0.08 per share. Excluding this impairment provision, FFO per share would have been $0.66, a decrease of 2.9% from the comparable period in 2000, $0.01 below First Call's current estimates and in line with the Company's previous guidance. FFO for the year ended December 31, 2001 was $63,142,000, or $2.51 per share, compared to $67,859,000, or $2.75 per share, for the year ended December 31, 2000. Excluding the impairment provision established during the fourth quarter, FFO per share for 2001 would have been $2.59 per share, a decrease of 5.8% from the comparable period in 2000. "The actual results of operations for the quarter were consistent with our expectations of several months ago," commented Allan Sweet, AMLI's President. "In addition, we reduced the capitalized cost bases of several of our land parcels to adjust their current carrying value to the lower of cost or market, as required by GAAP, a condition that speaks more to the general state of the apartment development business than to the locations and potential use of our land portfolio. Also, it is important to point out that we knew we would experience some dilution in each of our 'per share' calculations, because we sold properties and raised equity during the year, ahead of our ability to find suitable investment opportunities." Net income for the quarter and year ended December 31, 2001 was $5,872,000 and $45,746,000, respectively, as compared to $19,269,000 and $76,533,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter and year ended December 31, 2001 was $0.21 and $2.12, respectively, compared to $0.90 and $3.59, respectively, for the comparable periods of 2000, decreases of 76.7% and 40.9%, respectively. "The number of acquisitions and dispositions for the year were below planned levels," noted Robert Chapman, AMLI's Chief Financial Officer. "Our net income and EPS reflect substantially less gains on sales of properties this year, especially during the fourth quarter, compared to last year's periods, primarily because it was very difficult to find and close good transactions in 2001, given the wide bid-ask spread by most buyers and sellers in the market. Unlike FFO, net income and EPS include the results of property sales." Additionally, Operating EPS (like FFO per share because it excludes the results of property sales, but unlike FFO per share because it includes depreciation expense) was $1.08 per diluted share for the year ended December 31, 2001 as compared to $1.57 per diluted share for the year ended December 31, 2000. Depreciation expense increased significantly between 2001 and 2000, primarily because the Company sold a number of older communities with low depreciable bases and began depreciating a large number of new acquisitions and developments with much higher bases. Same Community Results On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended December 31, 2001 versus the prior year's quarter, total property revenues were flat, operating expenses decreased 4.8% and net operating income ("NOI") increased 2.9%. Weighted average occupancy, quarter over comparable quarter, decreased from 92.5% to 90.8%, while the weighted average rental rate increased by 2.0%. For the year 2001 compared to 2000, total property revenues increased 1.9%, operating expenses increased 3.7% and NOI increased 0.8%. Weighted average occupancy, year over year, decreased by 0.8% to 92.0%, while the weighted average rental rate increased by 3.0%. Other Operating Results Total property revenues, including both wholly-owned communities and co- investment communities (at 100%) were $69,382,000 and $280,463,000, respectively, for the quarter and year ended December 31, 2001, as compared with $65,057,000 and $240,042,000, respectively, for comparable periods in 2000, an increase of 6.6% and 16.8%, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and year ended December 31, 2001 was $20,911,000 and $89,354,000, respectively, representing decreases of 10.7% and 3.9% from prior periods, respectively. Excluding the Company's share of co-investment partnerships' interest expense, which has historically been included in the Company's disclosure, EBITDA for the quarter and year ended December 31, 2001 was $23,852,000 and $103,019,000, respectively, representing a decrease of 10.2% and an increase of 0.6% from prior periods, respectively. Fourth Quarter Activities During the fourth quarter, AMLI privately placed $20 million of Series D cumulative convertible preferred shares to The Equitable Life Assurance Society of the United States. Additionally, AMLI entered into a joint venture with Northwestern Mutual to develop and own AMLI at Barrett Walk, a 310-apartment home community in Kennesaw, Georgia. The joint venture is structured such that cash flow and sales proceeds will be shared 75% to Northwestern Mutual and 25% to AMLI until certain benchmarks are achieved, at which point AMLI will receive an increased portion of the cash flow and residual interest. AMLI has begun development of this community. AMLI also broke ground for AMLI at Seven Bridges, which will, upon completion, contain 520 apartment homes in Woodridge, Illinois, a western suburb of Chicago. The community is being developed in joint venture with the National Electrical Benefit Fund (NEBF). Also during the quarter, AMLI completed the initial lease-up and stabilization of AMLI at Summit Ridge, which contains 432 apartment homes in Lee's Summit, Missouri, a suburb of Kansas City. 2002 Outlook AMLI's current expectations for full year 2002 FFO per share is in the range of $2.58 to $2.66 (generally plus or minus $0.01 per share per quarter based on current mid-range estimates of $0.60, $0.64, $0.67 and $0.71 per share per quarter). AMLI anticipates that full year Operating EPS for 2002 will range from $1.15 to $1.21, (generally plus or minus $0.01 per share per quarter based on current mid-range estimates of $0.23, $0.27, $0.32 and $0.36 per share per quarter), approximately 45% of FFO per share. The Company currently projects a modest decrease in same community NOI during the first half of the year followed by a modest increase during the second half of 2002 compared to similar periods in 2001. Overall, same store NOI growth is currently expected to be flat to 2% growth for the entire year 2002. With regard to investment activity, the Company expects to start one to three new developments, including its downtown Austin project, and it seeks to be an active acquirer. AMLI anticipates having capital available to fund a significant level of investment in 2002 from the following sources: (i) internally generated cash flow (anticipated to be in the $10-$15 million range, after dividend payments), (ii) proceeds available from certain assets sold in 2001 (iii) proceeds from unidentified asset sales in 2002, (iv) proceeds from the Company's Series D preferred share issuance in 2001, (v) third party mortgage financing and (vi) co-investment partner equity capital. The amount of fee income expected to be earned in 2002 will depend (i) on the number and terms of new co-investments and (ii) whether a co-investment community is sold, which might entitle AMLI to an incentive promoted interest payment. The Company's current guidance does not include a promoted interest from sale. Dividend Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share for the quarter ended December 31, 2001. This dividend, which is based on an annual dividend rate of $1.92 per common share, is payable on February 26, 2002 to all common shareholders of record as of February 15, 2002. Conference Call AMLI will hold a conference call on Wednesday, February 6, 2002 at 2:30 p.m. ET to review these results. The call may be joined by calling 877-601-5719 - Passcode: AMLI. A live webcast and replay of the call can be accessed at http://www.amli.com/company_info or at http://www.streetevents.com. Supplemental Information AMLI produces Quarterly Supplemental Information that provides detailed information regarding the Company's activities during the quarter. The Fourth Quarter Supplemental Information is available on AMLI's website at http://www.amli.com/company_info/share_report.html. About AMLI The AMLI(R) portfolio currently includes 71 apartment communities containing 27,258 apartment homes, with an additional 2,937 apartment homes under development or in lease-up in eight locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain Regions areas of the U.S. AMLI Residential also serves as institutional advisor and asset manager for large pension funds, tax-exempt foundations and other financial institutions through AMLI's co-investment business. AMLI employs approximately 875 people who are dedicated to achieving AMLI's mission -- Provide An Outstanding Living Environment For Our Residents. Forward Looking Statements Certain matters discussed in this press release are forward looking statements within the meaning of Federal Securities Law. Although the Company believes expectations reflected in such forward looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking statements can be identified by the Company's use of the words "project," "believe," "expect," "anticipate," "intend," "estimate," "assume," and other similar expressions that predict or indicate future events, achievements or trends or that do not relate to historical matters. The Company does not assure the future results or outcome of the matters described in forward-looking statements; rather, these statements merely reflect the Company's current expectations of the approximate outcomes of the matters discussed. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control. The reader is cautioned to make her/her own judgement with regard to the statements discussed in this press release and the assumption noted by the Company herein. The Company is making forward-looking statements because it believes investors, analysts and others, many of whom prepare models and projections of the Company's performance, are interested in the Company's current estimates of its future activities. The Company advises such parties to make their own determination of any relevant or material assumption used by them. Many factors may cause the Company's actual performance in any period or periods to differ materially from the anticipated future performance expressed or implied by these forward-looking statements. Certain of the factors that could cause the Company's actual performance to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, general economic conditions, local real estate conditions, the timely development and lease-up of communities, other risks detailed from time to time in the Company's SEC reports, including the annual report on form 10-K for the year ended December 31, 2000. AMLI press releases and other company information are available at AMLI's web site located at http://www.amli.com .SOURCE AMLI Residential Properties Trust
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