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| BNP Residential Properties Announces Operating Results For The Second Quarter of 2001 |
CHARLOTTE, N.C., July 30 /PRNewswire/ -- BNP Residential Properties, Inc. (Amex: BNP) today announced operating results for the quarter ended June 30, 2001 (second quarter of 2001). Overview: BNP Residential 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 3,681 apartments and provide third-party management services for three apartment communities containing a total of 713 apartments. In addition to our apartment properties, we own 42 restaurant properties, which are leased on a triple net basis to a restaurant operator. We operate in the states of North Carolina and Virginia. 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: Total revenue increased 9.3% for the second quarter and 7.4% for the first six months of 2001 as compared to 2000. The increase was primarily attributable to increases in apartment revenue and other income. Apartments: Revenue from our apartments increased by 6.4% for the second quarter and 6.4% for the first six months of 2001 as compared to the same periods in 2000. The increase for both periods was primarily attributable to the acquisition of Oak Hollow Apartments -- Phase II in late December 2000. For the second quarter, average economic occupancy for all apartments was 94.5% as compared to 96.5% in 2000. Average revenue received per occupied unit was $749 per month for the second quarter of 2001 as compared with $735 in 2000. For the first six months of 2001, the average economic occupancy for all apartments was 94.9% as compared to 96.4% in 2000. Average revenue per occupied unit was $742 per month as compared to $732 in 2000. On a same units basis (apartments owned and operated for the full period in both years), apartment revenue for both the quarter and year-to-date periods was essentially flat with gains in average revenue per occupied unit being offset by losses in average economic occupancy. On a same units basis, average economic occupancy for the second quarter was 94.9% in 2001 as compared to 96.5% in 2000. Average revenue per occupied unit for the second quarter was $751 per month in 2001 as compared to $735 per month in 2000. For the first six months of 2001, same units average economic occupancy was 95.2% as compared to 96.4% in 2000. Average revenue per occupied unit was $745 per month for the first six months of 2001 as compared to $732 per month in 2000. Restaurants: Restaurant rental revenue for the second quarter and for the first six months of 2001 was the minimum rent, however, as a result of the sale of a restaurant property in the second quarter of 2000, restaurant rental revenue decreased by 3.5% for the second quarter and decreased by 2.9% for the first six months. "Same store" sales at our restaurant properties decreased by 2.7% for the second quarter, and decreased by 4.7% for the first six months, compared to 2000 amounts. Other Income: Other income, which includes the Company's third-party management activities, increased by $351,000 for the second quarter of 2001 and $385,000 for the first six months of 2001. These increases are primarily attributable to the consolidation of our management company's operations and the receipt of a refund of approximately $140,000 in disputed North Carolina franchise taxes paid for the years 1997 and 1998. Prior to this year, the results of the Company's third-party management activities were reported on an unconsolidated basis and were reflected on our financial statements as net equity income. Beginning in 2001, the results of these activities are reported on a consolidated basis. As a result of this change, our financial statements now reflect the gross revenue and expenses associated with these activities. Expenses: Expenses increased by 8.2% for the second quarter and by 9.1% for the first six months of 2001. Apartment operating expenses increased by 12.1% for the second quarter and by 12.4% for the first six months of 2001. The increase in expenses is primarily the result of the acquisition of Oak Hollow -- Phase II in late December 2000 and increases in onsite personnel costs and insurance. Funds from Operations: Funds from operations of the Operating Partnership for the second quarter increased by 13.1% to $2,701,000 from $2,389,000 in the second quarter of 2000. Funds from operations per share for the second quarter increased 12.1% to $0.37 per share from $0.33 per share from the second quarter of 2000. For the first six months of 2001, funds from operations for the Operating Partnership increased by 3.1% to $5,320,000 from $5,158,000 in 2000. On a per share basis, funds from operations for the first six months of 2001 increased by 2.9% to $0.72 per share from $0.70 per share in 2000. Net Income: For the second quarter, net income available to common shareholders increased by 26.6%. For the first six months of 2001, net income decreased by 11.0%. 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, 2000. 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 2001 2000 2001 2000 Revenues Apartment rental income $7,815 $7,346 $ 15,556 $ 14,620 Restaurant rental income 1,013 1,050 2,043 2,103 Interest and other income 411 60 598 213 9,239 8,457 18,197 16,937 Expenses Apartment operations 2,887 2,577 5,460 4,857 Depreciation and amortization 2,125 1,939 4,176 3,853 Administrative 789 686 1,528 1,326 Interest 2,813 2,762 5,796 5,509 8,614 7,963 16,960 15,546 Income before minority interest 625 493 1,236 1,391 Minority interest in operating partnership (144) (114) (285) (321) Net income $481 $380 $952 $1,070 Income before minority interest $625 $493 $1,236 $1,391 Depreciation 1,974 1,794 3,881 3,564 Amortization of management intangible 102 102 203 203 Funds from operations - Operating Partnership 2,701 2,389 5,320 5,158 Minority interest in funds from operations (622) (551) (1,225) (1,190) Funds from operations available to shareholders - basic $2,079 $1,838 $4,095 $3,968 Per share amounts - basic: Net income $0.09 $0.07 $0.17 $0.19 Funds from operations $0.37 $0.33 $0.72 $0.70 Per share amounts - diluted: Net income $0.09 $0.07 $0.17 $0.19 Funds from operations $0.37 $0.33 $0.72 $0.70 Weighted average shares outstanding 5,707 5,707 5,707 5,708 Weighted average Operating Partnership minority units outstanding 1,706 1,710 1,707 1,712 Weighted average total shares and minority units outstanding 7,413 7,417 7,414 7,420 We provide the following information to analysts and other members of the financial community for use in their detailed analyses: Three months ended Six months ended June 30 June 30 2001 2000 2001 2000 Numerators: For basic per share amounts - Net income - basic $ 481 $ 380 $ 952 $1,070 Income before minority interest $ 625 $ 493 $1,236 $1,391 Depreciation 1,974 1,794 3,881 3,564 Amortization of management intangible 102 102 203 203 Minority interest in FFO (622) (551) (1,225) (1,190) Funds from operations available to shareholders - basic $2,079 $1,838 $4,095 $3,968 For diluted per share amounts - Income before minority interest $ 625 $ 493 $1,236 $1,391 Income before minority interest $ 625 $ 493 $1,236 $1,391 Depreciation 1,974 1,794 3,881 3,564 Amortization of management intangible 102 102 203 203 Funds from operations available to shareholders - diluted $2,701 $2,389 $5,320 $5,158 Denominators: For basic per share amounts - Weighted average shares outstanding 5,707 5,707 5,707 5,708 Effect of dilutive securities: Convertible Operating Partnership units 1,706 1,710 1,707 1,712 Stock options (A) 3 -- 1 -- For diluted per share amounts - Adjusted weighted average shares and assumed conversions 7,416 7,417 7,415 7,420 (A) Includes only dilutive stock options. BNP Residential Properties, Inc. Summary Consolidated Balance Sheets June 30 December 31 2001 2000 (unaudited) Assets Real estate investments at cost: Apartment properties $219,704,033 $217,818,208 Restaurant properties 39,158,921 39,702,060 258,862,954 257,520,268 Less accumulated depreciation (36,806,770) (32,815,205) 222,056,184 224,705,063 Cash and cash equivalents 665,323 1,056,052 Other current assets 2,538,718 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 1,318,188 1,521,288 Deferred financing costs, net 992,051 1,083,560 Total assets $227,670,464 $230,691,396 Liabilities and Shareholders' Equity Mortgage and other notes payable $163,058,314 $163,611,737 Accounts payable and accrued expenses 1,943,376 944,248 Escrowed security deposits and deferred revenue 1,175,373 1,183,626 Deferred credit for interest defeasance 583,360 666,688 166,760,423 166,406,299 Minority interest in operating partnership 18,948,649 19,737,035 Shareholders' equity: Common stock, $.01 par value, 100,000,000 shares authorized, 5,706,950 shares issued and outstanding at June 30, 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 (27,802,832) (25,216,162) Total shareholders' equity 41,961,392 44,548,062 Total liabilities and shareholders' equity $227,670,464 $230,691,396SOURCE BNP Residential Properties, Inc.
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CONTACT:
Philip S. Payne, Executive Vice President &
CFO of BNP Residential Properties, Inc., +1-704-944-0100, or fax,
+1-704-944-2039
