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| AMLI Residential Announces Second Quarter 2002 Operating Results and Declares Dividend |
CHICAGO, July 30 /PRNewswire-FirstCall/ -- AMLI Residential Properties Trust (NYSE: AML) announces today operating results for the second quarter ended June 30, 2002. Earnings Funds From Operations ("FFO") for the second quarter 2002 were $16,105,000, or $0.62 per common share, compared to $16,162,000, or $0.65 per common share, for the second quarter 2001, a per share decrease of 4.6%. FFO is consistent with First Call's current estimate and the Company's recently revised guidance. FFO for the six months ended June 30, 2002 was $31,933,000, or $1.23 per share, compared to $31,393,000, or $1.26 per share, for the six months ended June 30, 2001, a per share decrease of 2.4%. "As noted in our press release last week, results for the quarter were negatively impacted by weaker than expected property operations," commented Allan J. Sweet, AMLI President. "Several of our markets actually performed relatively well for the first six months of this year, compared to either last year's numbers or our current year's expectations; however, rental revenues in Dallas, which is our largest market, and in Austin, for example, dropped dramatically from collections in May. Continuing weakness in Atlanta, our second largest market, has been consistent with our expectations." Net income for the three and six months ended June 30, 2002 was $7,291,000 and $13,951,000, respectively, as compared to $14,225,000 and $20,630,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended June 30, 2002 was $0.29, compared to $0.67 for the comparable period of 2001, a decrease of 56.7%, which was primarily attributable to a large gain from the sale of a community last year. Additionally, Operating EPS was $0.26 per diluted share for the quarter ended June 30, 2002,as compared to $0.28 per diluted share for the quarter ended June 30, 2001. For the six months ended June 30, 2002, EPS was $0.54 compared to $0.96 for the comparable period of 2001, a decrease of 43.8%, and Operating EPS was $0.52 compared to $0.54 for the comparable period of 2001, a decrease of 3.7%. "Operating EPS" includes the operating results for properties whose operating results are reported as "Discontinued Operations" under GAAP. Same Community Results On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended June 30, 2002 versus the prior year's quarter, total property revenues decreased 3.3%, operating expenses increased 0.1%, and net operating income ("NOI") decreased 5.4%. Weighted average occupancy, quarter over comparable quarter, decreased from 92.2% to 92.0%, while the weighted average rental rate decreased by 2.7%. Other Operating Results Total property revenues, including both wholly-owned communities and co-investment communities (at 100%) were $69,191,000 and $137,095,000, respectively, for the quarter and six months ended June 30, 2002, as compared with $69,676,000 and $137,195,000 for the comparable period in 2001, a 0.7% and 0.1% decrease, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and six months ended June 30, 2002 were $25,910,000 and $51,125,000, respectively, representing decreases of 2.4% and 1.5%, respectively, from the same period last year. Second Quarter Activities During the second quarter, AMLI: -- Broke ground on AMLI Downtown Austin, a mixed-used development containing 220 apartment homes, a parking garage and retail space, in downtown Austin, Texas. -- Purchased AMLI at Bryan Place, a 420-unit luxury apartment community in Dallas, Texas, in a joint venture with an existing institutional partner. -- Acquired AMLI Upper West Side, a 194-unit community in Fort Worth, Texas. -- Completed the initial lease-up and stabilization of AMLI at Mill Creek in Gwinnett County, Georgia and closed on an $18 million first mortgage permanent loan. -- Sold AMLI at Champions Park and AMLI at Champions Centre in Houston, Texas. Both communities were owned in a joint venture. In addition to AMLI's 15% share of the net sale proceeds, AMLI received disposition fees of $239,000. -- Increased the mortgage financing on AMLI at Chevy Chase, a 592-unit community in suburban Chicago owned by a joint venture. As a result of the refinancing, AMLI received a promoted interest distribution of approximately $725,000 in excess of its 33% ownership, which has been treated by AMLI as a return of capital and is expected to be recognized as income when the property is ultimately sold. Additionally, AMLI is now entitled to receive 40% of all future cash flow distributions and 50% of any future distributions of sale or refinancing proceeds from this partnership. -- Modified mortgages on two wholly-owned communities that reduced the interest rates, extended the maturities, and provided additional proceeds of approximately $12,000,000. Subsequent Event AMLI currently expects to close the sale of AMLI at Greenwood Forest, a 316-unit co-investment community, on August 1, 2002. In connection with the sale, AMLI will receive a disposition fee of $403,000. Accounting for Share Options Yesterday, AMLI's Board of Trustees approved management's decision to change AMLI's policy for accounting for share options. In accordance with the rules governing the accounting for such a change, AMLI will commence reporting the value of share options awarded subsequent to January 1, 2002 as a charge against earnings and FFO. The accounting for options issued prior to 2002 is unaffected by this change, and AMLI anticipates that there will be no material effect on its 2002 results of operations. Common Share Repurchase Authorizations During the period from July 25 through July 29, 2002, AMLI repurchased on the open market 130,500 of its common shares at an average price of $21.62 per share pursuant to its previously announced 500,000 Common Share Repurchase Program, so that shares repurchased under this authorization now total 350,900. Yesterday, AMLI's Board of Trustees replaced the remaining 149,100 share authorization with a new 1,500,000 share authorization. AMLI anticipates acquiring shares under this new authorization from time to time as market conditions warrant. Outlook As stated in the Company's revised guidance issued last week, AMLI's current expectation for full year 2002 FFO per share is in the range of $2.42 to $2.48 per share. AMLI anticipates that full year Operating EPS for 2002 will be in the range of $1.01 to $1.07. The Company anticipates that previous FFO guidance for 2003 of $2.75 to $2.85 per share is no longer likely and will issue revised guidance at a later date this year. Dividend Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on August 20, 2002 to all common shareholders of record as of August 9, 2002 and is based on an annual dividend rate of $1.92 per common share. Conference Call AMLI will hold a conference call on Wednesday, July 31, 2002 at 3:30 p.m. ET to review these results. The call may be joined by calling 877-601-5719 - Passcode: AMLI. A live webcast of the conference call will also be available in the 'Company Info' section on AMLI's website (http://www.amli.com/comp/) and 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 Second Quarter Supplemental Information is available in the 'Company Info' section on our website (http://www.amli.com/comp/) under 'Shareholder Reports.' About AMLI The AMLI(R) portfolio currently includes 73 apartment communities containing 28,352 apartment homes, with an additional 2,757 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. More information on AMLI is available at http://www.amli.com . 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 his/her own judgment 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, 2001.SOURCE AMLI Residential
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