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| Boddie-Noell Properties, Inc. Reports First Quarter Operating Results |
CHARLOTTE, N.C., April 30 /PRNewswire/ -- Boddie-Noell Properties, Inc. (Amex: BNP) today announced operating results for the quarter ended March 31, 1999. Overview: Boddie-Noell Properties, Inc. is a real estate investment trust focused on owning and operating apartment communities. We own and operate fifteen apartment communities containing a total of 3,440 apartments. We also have the right to acquire an additional apartment community containing 108 units, which is currently under construction. BNP Management, Inc., an unconsolidated subsidiary, provides third-party management services for four apartment communities, containing a total of 891 apartments, and one shopping center. In addition to our apartment properties, we own 47 restaurant properties, which are leased on a triple net basis to a restaurant operator. We, along with our management subsidiary, operate in the states of North Carolina and Virginia. Operating Results: See Tabular Information Below Revenue: For the quarter ended March 31, 1999, our revenue increased by 41.3 percent from the same period in 1998. We have two principal sources of revenue: apartment operations and restaurant rental revenue. The increase in total revenue was attributable to a significant increase in apartment revenue. Apartments: Revenue from our apartments increased by 54.7 percent for the first quarter as compared to the first quarter of 1998. The increase in apartment revenue was the result of the acquisition of five apartment properties during 1998 and one apartment property in January 1999. For the first quarter, average economic occupancy for all apartments was 94.6 percent and the average revenue received per occupied unit was $729. On a "same store" basis, revenue from apartments was unchanged for the first quarter of 1999 as compared to the first quarter of 1998. "Same store" average economic occupancy for the quarter increased by 0.9 percent to 95.2 percent in 1999 from 94.3 percent in 1998, while average revenue per occupied unit decreased to $732 from $736 in the first quarter of 1998. Restaurants: For the quarter, "same store" sales at the Company's restaurant properties decreased by 3.0 percent from those in the first quarter of 1998. Despite the decrease in sales, restaurant rental income remained unchanged. Restaurant rental income is the greater of the minimum rent of $4.5 million per year or 9.875 percent of food sales. For the first quarter of 1999 and 1998, restaurant rental income was the minimum rent. We have agreed to sell three restaurants to Boddie-Noell Enterprises under the non-economic clause of the restaurant master lease. Following the sale of the properties, we expect that minimum rent will be approximately $4.3 million in 1999 and $4.2 million per year thereafter. We expect to receive approximately $2 million proceeds from these property sales, which we will apply to reduce the line of credit secured by them. We expect the sales to be completed by June 1, 1999. We do not expect the sale of these properties to have a material effect on our operating results. Expenses: Expenses for the first quarter were in line with management's expectations. Increases in expenses for apartment operations, interest, depreciation and amortization were attributable to the acquisition of five apartment properties during 1998 and one apartment property in January 1999. Funds from Operations: Funds from operations of the Operating Partnership for the quarter increased by 20.2 percent to $2,858,000 from $2,375,000 in the first quarter of 1998. Funds from operations per share increased by 8.6% to $0.38 from $0.35 in the first quarter of 1998. Net Income: Net income available to shareholders for the quarter decreased by 26.1 percent to $810,000 from $1,095,000 (before a first quarter 1998 extraordinary charge of $51,000 for loss on early extinguishment of debt) in the first quarter of 1998. On a per share basis, net income (after the extraordinary item) decreased by 22.2 percent to $0.14 per share for the first quarter of 1999 from $0.18 per share for the first quarter of 1998. Dividend Declaration: On April 20, 1999, the Board of Directors declared a regular quarterly dividend in the amount of $0.31 per share to be paid on May 18, 1998, to shareholders of record on May 3, 1998. 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 identified in our annual report on Form 10-K for the year ending December 31, 1998. More information may be obtained by calling our Corporate Offices at (704) 944-0100 or on the Internet through our website at http://www.bnproperties.com . You may also e-mail information requests to our investor relations department at investor.relations@bnproperties.com . BODDIE-NOELL PROPERTIES, INC. Consolidated Statements of Operations and Funds from Operations Dollars in thousands, except per share data Three months ended March 31 1999 1998 Revenues Apartment rental income $ 7,116 $ 4,599 Restaurant rental income 1,125 1,125 Management fees and other 119 192 8,360 5,916 Expenses Apartment operations 2,309 1,449 Depreciation and amortization 1,875 1,132 Administrative 470 320 Interest 2,682 1,741 7,336 4,643 Income before minority interest and extraordinary item 1,025 1,274 Minority interest in operating partnership 214 178 Income before extraordinary item 810 1,095 Extraordinary item - loss on early extinguishment of debt -- 51 Net income $ 810 $ 1,044 Income before minority interest and extraordinary item $ 1,025 $ 1,274 Add: Depreciation 1,732 1,003 Amortization of management intangible 102 102 Funds from Operations before minority interest in Operating Partnership $ 2,858 $ 2,378 Per share amounts: Income before extraordinary item $ 0.14 $ 0.19 Net income $ 0.14 $ 0.18 Funds from operations $ 0.38 $ 0.35 Weighted average shares outstanding 5,985 5,844 Weighted average Operating Partnership minority units outstanding 1,579 950SOURCE Boddie-Noell Properties, Inc.
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CONTACT:
Philip S. Payne, Executive Vice President &
CFO of Boddie-Noell Properties, Inc., 704-944-0100, or fax,
704-944-2039
