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| BNP Residential Properties, Inc. Announces Operating Results for the First Quarter of 2001 |
CHARLOTTE, N.C., April 27 /PRNewswire/ --
BNP Residential Properties, Inc. (Amex: BNP) today announced operating
results for the quarter ended March 31, 2001.
Overview: BNP Residential Properties, Inc. is a self-administered,
self-managed real estate investment trust focused on owning and operating
apartment communities in North Carolina and Virginia. We currently own and
operate fifteen apartment communities containing 3,681 units. We also own 43
restaurant properties, which we lease to a third party under a master lease on
a triple-net basis. In addition, we manage four apartment communities,
containing 891 apartment units, for third party owners.
BNP Residential Properties, Inc., is structured as an UpREIT, or umbrella
partnership real estate investment trust. We are the sole general partner and
own a controlling interest in BNP Residential Properties Limited Partnership,
the operating partnership. All of our operations are conducted through the
operating partnership.
Operating Results:
See Tabular Information Below
Revenue: For the first quarter of 2001, total revenue increased by 5.6%
over the same period in 2000. The increase in total revenue is attributable
to an increase in revenue from apartment operations and other income. During
the first quarter of 2001, apartment operations accounted for approximately
86% of total revenue.
Apartments: Apartment rental revenue increased by 6.4% for the first
quarter of 2001 as compared to the same period in 2000. The increase is
primarily attributable to the acquisition of Oak Hollow Phase II in late
December 2000. Also contributing to the increase in apartment rental revenue
was an increase in revenue per occupied unit. For all apartments, revenue per
occupied unit increased to $736 per month in the first quarter of 2001 as
compared to $729 per month in 2000. For the first quarter, average economic
occupancy for all apartments was 95.2% as compared to 96.4% in 2000.
On a same units basis, apartment revenue was flat for the quarter, with an
increase in revenue per occupied unit being offset by a decline in occupancy.
On a same units basis, revenue per occupied unit increased to $738 per month
in the first quarter of 2001 as compared to $729 per month in 2000. Average
economic occupancy was 95.5% for the first quarter of 2001 as compared to
96.4% in 2000.
Restaurants: Restaurant rental revenue for the first quarter of 2001
declined by 2.3% from the same period in 2000. The decline in restaurant
rental revenue was due to the sale of one restaurant in June 2000. Restaurant
rental revenue is the greater of a specified minimum rent or a percentage of
food sales. For the first quarters of both 2001 and 2000, we received the
minimum guaranteed rent.
"Same store" sales (sales at our restaurant properties that were open
throughout the first quarter of both years) decreased by 6.9% for the first
quarter of 2001.
Expenses: Expenses increased by 10.1% for the first quarter. Apartment
operations expense increased by 12.8% for the first quarter of 2001. This
increase is primarily attributable to the acquisition of Oak Hollow Phase II
in late December 2000, and increases in onsite personnel costs and insurance.
Corporate administration expense increased by 22.5%. This increase is
primarily attributable to a change in accounting for the unconsolidated
subsidiary and the timing of professional services for accounting and tax
preparation. Interest expense increased primarily as a result of the
acquisition of Oak Hollow Phase II.
Net Income: On a per share basis, net income for the first quarter
decreased to $0.08 per share in 2001 from $0.12 per share in 2000. This
decrease reflects the impact of an increase in the non-cash charge for
depreciation and an increase in interest expense.
Funds from Operations: On a per share basis, funds from operations
declined for the first quarter to $0.35 per share from $0.37 per share.
Forward Looking Statement Disclosure: This press release includes forward-
looking statements concerning the Company's operations, economic performance
and financial condition, including, in particular, forward-looking statements
regarding future operations and performance. Such statements are subject to
various risks and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors, including the
consummation, and timing of, pending acquisitions and those factors identified
in the Company's annual report on Form 10-K for the year ending
December 31, 2000.
Information Requests: More information may be obtained by calling the
company's Corporate Offices at (704) 944-0100 or on the Internet through the
company website at http://www.bnproperties.com. Information requests may be e-mailed
to the investor relations department at investor.relations@bnproperties.com.
BNP Residential Properties, Inc.
Consolidated Statements of Operations and Funds from Operations
Dollars in thousands, except per share data
Three months ended
March 31
2001 2000
Revenues
Apartment rental income $7,741 $7,274
Restaurant rental income 1,029 1,053
Interest and other income 187 153
8,957 8,480
Expenses
Apartment operations 2,573 2,281
Depreciation and amortization 2,051 1,914
Administrative 739 641
Interest 2,983 2,747
8,346 7,582
Income before minority interest 611 898
Minority interest in operating partnership (141) (207)
Net income $470 $691
Income before minority interest $611 $898
Depreciation 1,907 1,769
Amortization of management intangible 102 102
Funds from operations - Operating Partnership 2,619 2,769
Minority interest in funds from operations (603) (639)
Funds from operations available to
shareholders - basic $2,016 $2,130
Per share amounts - basic:
Net income $0.08 $0.12
Funds from operations $0.35 $0.37
Per share amounts - diluted:
Net income $0.08 $0.12
Funds from operations $0.35 $0.37
Weighted average shares outstanding 5,707 5,709
Weighted average Operating Partnership
minority units outstanding 1,707 1,713
Weighted average total shares and
minority units outstanding 7,414 7,423
We provide the following information for analysts and other members of the
financial community to use in their detailed analyses:
Three months ended
March 31
2001 2000
Numerators:
For basic per share amounts -
Net income - basic $470 $691
Income before minority interest $611 $898
Depreciation 1,907 1,769
Amortization of management intangible 102 102
Minority interest in FFO (603) (639)
Funds from operations available to
shareholders - basic $2,016 $2,130
For diluted per share amounts -
Income before minority interest $611 $898
Income before minority interest $611 $898
Depreciation 1,907 1,769
Amortization of management intangible 102 102
Funds from operations available to
shareholders - diluted $2,619 $2,769
Denominators:
For basic per share amounts -
Weighted average shares outstanding 5,707 5,709
Effect of dilutive securities:
Convertible Operating Partnership units 1,707 1,713
Stock options (a) -- --
For diluted per share amounts -
Adjusted weighted average shares
and assumed conversions 7,414 7,423
(a) Includes only dilutive stock options.
BNP Residential Properties, Inc.
Summary Consolidated Balance Sheets
March 31 December 31
2001 2000
(unaudited)
Assets
Real estate investments at cost:
Apartment properties $219,034,217 $217,818,208
Restaurant properties 39,702,060 39,702,060
258,736,277 257,520,268
Less accumulated depreciation (34,969,870) (32,815,205)
223,766,407 224,705,063
Cash and cash equivalents 1,166,235 1,056,052
Other current assets 2,145,914 1,510,541
Investment in and advances to Management Company -- 714,892
Notes receivable 100,000 100,000
Intangible related to acquisition of
management operations, net 1,419,738 1,521,288
Deferred financing costs, net 1,041,144 1,083,560
Total assets $229,639,438 $230,691,396
Liabilities and Shareholders' Equity
Mortgage and other notes payable $163,560,329 $163,611,737
Accounts payable and accrued expenses 1,666,461 944,248
Escrowed security deposits and
deferred revenue 1,190,175 1,183,626
Deferred credit for interest defeasance 625,024 666,688
167,041,989 166,406,299
Minority interest in operating partnership 19,348,383 19,737,035
Shareholders' equity:
Common stock, $.01 par value, 100,000,000
shares authorized, 5,706,950 shares issued
and outstanding at March 31, 2001,
and December 31, 2000 57,069 57,069
Additional paid-in capital 69,707,155 69,707,155
Distributions in excess of net income (26,515,158) (25,216,162)
Total shareholders' equity 43,249,066 44,548,062
Total liabilities and shareholders' equity $229,639,438 $230,691,396
SOURCE BNP Residential Properties, Inc.
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CONTACT:
Philip S. Payne, Executive Vice President &
CFO of BNP Residential Properties, Inc., 704-944-0100, or fax,
704-944-2039
