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| BNP Residential Properties Announces Operating Results for The Second Quarter of 2000 |
CHARLOTTE, N.C., July 21 /PRNewswire/ -- BNP Residential Properties, Inc. (Amex: BNP) today announced operating results for the quarter ended June 30, 2000 (second quarter of 2000). Overview: BNP Residential Properties, Inc. (formerly 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. 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 43 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: Total revenue was flat for the second quarter and first six months periods of 2000 as compared to 1999. We have two principal sources of revenue: apartment operations and restaurant rental revenue. For both periods increases in apartment revenue were offset by declines in restaurant revenue and other income. Apartments: Revenue from our apartments increased by 1.4 percent for the second quarter and 1.8 percent for the first six months of 2000 as compared to the same periods in 1999. For the second quarter, average economic occupancy for all apartments was 96.5 percent as compared to 95.7 percent in 1999. Average revenue received per occupied unit was $735 per month for the second quarter of 2000 as compared with $733 in 1999. For the first six months of 2000, the average economic occupancy for all apartments was 96.4 percent as compared to 95.1 percent in 1999. Average revenue per occupied unit was $732 per month as compared to $731 in 1999. Restaurants: In June 2000, we sold one restaurant to Boddie-Noell Enterprises, the lessee, under the non-economic clause of the restaurant master lease. Following the sale of this property, we expect the annual minimum rent will be $4,162,000 in 2000, and $4,117,000 per year thereafter. We intend to apply the $643,000 proceeds from the sale to reduce our line of credit and fund capital improvements. We expect the sale of this restaurant to reduce funds from operations for the balance of 2000 by approximately $25,000. Restaurant rental revenue for the second quarter and for the first six months of 2000 was the minimum rent, however, as a result of the sale of a restaurant property in the second quarter of 2000 and the sale of three restaurant properties in 1999, restaurant rental revenue decreased by 5.2 percent for the second quarter and decreased by 5.8 percent for the first six months. "Same store" sales at our restaurant properties decreased by 4.8 percent for the second quarter, and decreased by 2.2 percent for the first six months, compared to 1999 amounts. Expenses: Expenses increased by 3.2 percent for the second quarter and by 3.3 percent for the first six months of 2000. Apartment operating expenses increased by 4.3 percent for the second quarter and 4.5 percent for the first six months of 2000. Funds from Operations: Funds from operations of the Operating Partnership for the second quarter decreased by 10.2 percent to $2,389,000 from $2,660,000 in the second quarter of 1999. Funds from operations per share for the second quarter decreased 5.7 percent to $0.33 per share from $0.35 per share from the second quarter of 1999. For the first six months of 2000, funds from operations for the Operating Partnership decreased by 6.5 percent to $5,158,000 from $5,518,000 in 1999. On a per share basis, funds from operations for the first six months of 2000 decreased by 4.1% to $0.70 per share from $0.73 per share in 1999. The decline in net income reflects the decline in restaurant rental revenue, increase in interest expense, and increase in non-cash charges for depreciation. Net Income: For the second quarter, net income available to common shareholders decreased by 42.0 percent. For the first six months of 2000, net income decreased by 26.9 percent. The decline in net income reflects the decline in restaurant rental revenue, increase in interest expense, increase in non-cash charges for depreciation, and increase in the minority interest in the operating partnership. President's Statement: Overall, operating results for both the quarter and year-to-date period were in line with our expectations. Our apartment properties continue to show good results despite the fact that we operate in some of the most competitive apartment markets in the country. We believe our apartment properties are well positioned to continue to compete effectively in our markets. We are, however, very disappointed in the continued decline in sales at our restaurant properties. We will continue to monitor the Hardee's situation, but, in reality, there is very little we can do but wait and see how the situation plays out. Dividend Declaration: On July 20, 2000, the Board of Directors declared a regular quarterly dividend in the amount of $0.31 per share to be paid on August 15, 2000, to shareholders of record on August 1, 2000. 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, 1999. Information Requests: 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 . BNP Residential Properties, Inc. Consolidated Statements of Operations and Funds from Operations Dollars in thousands, except per share data Three months ended Six months ended June 30 June 30 2000 1999 2000 1999 Revenues Apartment rental income $7,346 $7,243 $14,620 $14,359 Restaurant rental income 1,050 1,107 2,103 2,232 Interest and other income 60 190 213 309 8,457 8,541 16,937 16,901 Expenses Apartment operations 2,577 2,471 4,857 4,650 Depreciation and amortization 1,939 1,875 3,853 3,750 Administrative 686 692 1,326 1,291 Interest 2,762 2,676 5,509 5,359 7,963 7,714 15,546 15,050 Income before minority interest 493 827 1,391 1,851 Minority interest in operating partnership (114) (172) (321) (386) Net income $ 380 $ 655 $1,070 $1,465 Income before minority interest $ 493 $ 827 $1,391 $1,851 Depreciation 1,794 1,732 3,564 3,464 Amortization of management intangible 102 102 203 203 Funds from operations - Operating Partnership 2,389 2,660 5,158 5,518 Minority interest in funds from operations (551) (554) (1,190) (1,151) Funds from operations available to shareholders - basic $1,838 $2,106 $3,968 $4,367 Per share amounts - basic: Net income $ 0.07 $ 0.10 $ 0.19 $ 0.24 Funds from operations $ 0.33 $ 0.35 $ 0.70 $ 0.73 Per share amounts - diluted: Net income $ 0.07 $ 0.10 $ 0.19 $ 0.24 Funds from operations $ 0.33 $ 0.35 $ 0.70 $ 0.73 Weighted average shares outstanding 5,707 5,999 5,708 5,992 Weighted average Operating Partnership minority units outstanding 1,710 1,579 1,712 1,579 Weighted average total shares and minority units outstanding 7,417 7,578 7,420 7,571 We provide the following information for use by analysts and other members of thefinancial community for use in their detailed analyses: Three months ended Six months ended June 30 June 30 2000 1999 2000 1999 Numerators: For basic per share amounts - Net income - basic $ 380 $ 655 $1,070 $1,465 Income before minority interest $ 493 $ 827 $1,391 $1,851 Depreciation 1,794 1,732 3,564 3,464 Amortization of management intangible 102 102 203 203 Minority interest in FFO (551) (554) (1,190) (1,151) Funds from operations available to shareholders - basic $1,838 $2,106 $3,968 $4,367 For diluted per share amounts - Income before minority interest $ 493 $ 827 $1,391 $1,851 Income before minority interest $ 493 $ 827 $1,391 $1,851 Depreciation 1,794 1,732 3,564 3,464 Amortization of management intangible 102 102 203 203 Funds from operations available to shareholders - diluted $2,389 $2,660 $5,158 $5,518 Denominators: For basic per share amounts - Weighted average shares outstanding 5,707 5,999 5,708 5,992 Effect of dilutive securities: Convertible Operating Partnership units 1,710 1,579 1,712 1,579 Stock options (A) -- -- -- -- For diluted per share amounts - Adjusted weighted average shares and assumed conversions 7,417 7,578 7,420 7,571 (A) Includes only dilutive stock options.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
