CHARLOTTE, N.C., Nov. 2 /PRNewswire/ -- Boddie-Noell Properties, Inc.
(Amex: BNP) today announced operating results for the quarter ended
September 30, 1999 (third quarter of 1999).
    Overview:  Boddie-Noell Properties, Inc., is a self-administered,
self-managed real estate investment trust that owns and operates fourteen
apartment communities containing 3,440 apartment units.  We also own 44
restaurant properties, which are leased to a third-party operator on a triple-
net lease basis.  Through our management subsidiary we manage an additional
five apartment communities, containing 891 apartment units, and one shopping
center.  All of our operations are in the states of North Carolina and
Virginia.
    Operating Results:

                     See Tabular Information Below

    Revenue:  For the third quarter of 1999, total revenue increased by
16.2 percent over the same period in 1998.  For the first nine months of 1999,
total revenue increased by 31.6 percent over the same period in 1998.  We have
two principal sources of revenue: apartment operations and restaurant rental
revenue.  For both the quarter and first nine months the increase in total
revenue was attributable to a significant increase in apartment revenue.
    Apartments:  Revenue from our apartments increased by 20.5 percent for the
third quarter and 40.4 percent for the first nine months of 1999 as compared
to the same periods in 1998.  The increases for both the quarter and year-to-
date periods were principally due to the acquisition of one apartment
community in second quarter 1998, four apartment communities in the third
quarter of 1998, and one apartment community in the first quarter of 1999.
For the third quarter, average economic occupancy for all apartments was
94.7 percent and the average revenue received per occupied unit was $726 per
month.  For the first nine months of 1999, the average economic occupancy for
all apartments was 95.0 percent and the average revenue per occupied unit was
$730.
    On a "same store" basis, revenue from apartments decreased by 1.4 percent
for the third quarter of 1999 as compared to the third quarter of 1998.  For
the quarter, average economic occupancy for the 2,208 apartments included in
the "same store" comparison decreased to 95.1 percent from 95.3 percent, while
average revenue per occupied unit decreased to $730 per month from $738.  For
the first nine months of 1999, "same store" apartment revenue decreased by
0.1 percent.  For this period, average economic occupancy increased to
95.3 percent from 94.7 percent, while average revenue per occupied unit for
the first nine months decreased to $733 from $737 per month.
    Restaurants:  Restaurant rental revenue for the third quarter declined by
6.4 percent and for the first nine months of 1999 declined by 2.7 percent from
the same periods in 1998.  The decline in both periods was due to the sale of
three restaurant properties in June 1999.  For both the quarter and year to
date periods, we received the minimum guaranteed rent.  Restaurant sales
declined by 3.6 percent for the third quarter and 2.6 percent for the first
nine months of 1999.
    Expenses:  Expenses increased by 18.1 percent for the third quarter and by
42.8 percent for the first nine months of 1999. Apartment operating expenses
increased by 31.9 percent for the third quarter and 51.2 percent for the first
nine months of 1999.  These increases are primarily attributable to the
acquisition of five apartment communities during 1998 and one apartment
community in the first quarter of 1999.
    Net Income: For the third quarter, net income decreased by 0.1 percent.
On a per share basis, net income for the third quarter increased to $0.12 per
share from $0.11.  For the first nine months of 1998, net income decreased by
24.1 percent.  On a per share basis, net income for the first nine months
decreased to $0.36 per share from $0.48.  The decline in net income for the
first nine months was primarily attributable to an increase in the non-cash
charges of depreciation and amortization associated with the acquisition of
five apartment communities in 1998 and one apartment community in the first
quarter of 1999.
    Funds from Operations: Funds from operations increased by 0.2 percent for
the third quarter and 10.0 percent for the first nine months of 1999.  On a
per share basis, funds from operations declined for the third quarter to
$0.35 per share from $0.37 per share.  For the first nine months, funds from
operations per share increased to $1.08 per share from $1.07 per share.
    Share Buy Back Program:  Subsequent to quarter end, we have purchased a
number of shares pursuant to a share buy back program announced in December
1998.  During the period October 7, 1999 through November 1, 1999, we
purchased, on the open market, a total of 56,500 shares of common stock at an
average price of $9.59 per share.  These are all of the shares that have been
purchased under the share buy back program and represent approximately
1.0 percent of the outstanding common stock.
    President's Statement:  During the third quarter we continued to
experience some weakness in the majority of our apartment markets.  This
weakness appears to be the result of new apartment construction and robust
home sales. While we have been able to maintain high occupancy levels, we have
not been able to achieve the rental rates we would like.  As a result,
apartment rental revenue was lower for the third quarter than expected.
    We have begun to see what we believe are signs of improving market
conditions, most notably in Greensboro, but we do not expect any significant
improvement in our apartment markets for the remainder of the year.  In light
of this, we will continue to emphasize occupancy as a means of maximizing cash
flow from our properties.  We will also strive to maintain our competitive
position by keeping the properties in an excellent state of repair and by
making selective improvements.  We have excellent properties in good locations
and believe we are well positioned to compete effectively in our markets.
    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.
    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

    BODDIE-NOELL PROPERTIES, INC.
    Consolidated Statements of Operations and Funds from Operations
    Dollars in thousands, except per share data


                             Three months ended          Nine months ended
                                September 30               September 30
                              1999         1998          1999         1998

    Revenues
    Apartment rental income $7,097        $5,888      $21,457       $15,287
    Restaurant rental income 1,053         1,125        3,286         3,375
    Interest and other income  137           120          447           472
                             8,288         7,133       25,189        19,134

    Expenses
    Apartment operations     2,474         1,876        7,432         4,916
    Depreciation and
     amortization            1,861         1,861        5,611         4,140
    Administrative             443           390        1,426         1,019
    Interest                 2,656         2,169        8,015         5,665
                             7,434         6,295        22,484       15,740
    Income before minority
     interest and
     extraordinary item        854           838        2,705         3,394
    Minority interest in
     operating partnership     179           159          566           524
    Income before
     extraordinary item        674           680        2,140         2,870
    Extraordinary item
     - loss on early
     extinguishment of debt     --            --           --            51
    Net income                $674          $680       $2,140        $2,819

    Income before minority
     interest and
     extraordinary item     $  854        $  838       $2,705        $3,394
    Depreciation             1,718         1,728        5,182         3,749
    Amortization of management
     intangible                102           102          305           305
    Funds from operations
     - Operating Partnership 2,673         2,668        8,191         7,447
    Minority interest in funds
     from operations          (561)         (468)      (1,713)       (1,151)
    Funds from operations
     available to shareholders
     - basic                $2,112        $2,200       $6,479        $6,296

    Per share amounts - basic:
     Income before
      extraordinary item    $ 0.12        $ 0.11       $ 0.36        $ 0.49
     Net income             $ 0.12        $ 0.11       $ 0.36        $ 0.48
     Funds from operations  $ 0.35        $ 0.37       $ 1.08        $ 1.07

    Per share amounts - diluted:
     Income before
      extraordinary item    $ 0.12        $ 0.11       $ 0.36        $ 0.48
     Net income             $ 0.12        $ 0.11       $ 0.36        $ 0.47
     Funds from operations  $ 0.35        $ 0.37       $ 1.08        $ 1.06

    Weighted average shares
     outstanding             6,007         5,961        5,997         5,908
    Weighted average
     Operating Partnership
     minority units
     outstanding             1,595         1,284        1,584         1,084
    Weighted average total
     shares and minority
     units outstanding       7,602         7,244        7,581         6,991

    We provide the following information for use by analysts and other members
    of the financial community for use in their detailed analyses:

                             Three months ended          Nine months ended
                                September 30               September 30
                             1999          1998          1999         1998

    Numerators:
    For basic per share
     amounts -
     Income before
      extraordinary item    $  674        $  680        $2,140      $2,870
     Extraordinary item         --            --            --          51
     Net income - basic     $  674        $  680        $2,140      $2,819

     Income before
      extraordinary item
      and minority interest $  854        $  838        $2,705      $3,394
     Depreciation            1,718         1,728         5,182       3,749
     Amortization of
      management intangible    102           102           305         305
     Minority interest in FFO (561)         (468)       (1,713)     (1,151)
     Funds from operations
      available to
      shareholders - basic  $2,112        $2,200        $6,479      $6,296

    For diluted per share
     amounts -
     Income before
      extraordinary item    $  854        $  838        $2,705      $3,394
     Extraordinary item         --            --            --          60
     Net income - diluted   $  854        $  838        $2,705      $3,334

     Income before
      extraordinary item    $  854        $  838        $2,705      $3,394
     Depreciation            1,718         1,728         5,182       3,749
     Amortization of
      management intangible    102           102           305         305
     Funds from operations
      available to shareholders
      - diluted             $2,673        $2,668        $8,191      $7,447

    Denominators:
     For basic per share
      amounts -

      Weighted average
       shares outstanding    6,007         5,961         5,997       5,908
     Effect of dilutive securities:
      Contingent stock,
       acquisition              --            --            --           2
      Convertible Operating
       Partnership units     1,595         1,289         1,584       1,085
      Stock options (A)         --             9            --          26
     For diluted per share
      amounts -
      Adjusted weighted average
       shares and assumed
       conversions           7,602         7,258         7,581       7,021

    (A) Includes only dilutive stock options.

 SOURCE  Boddie-Noell Properties, Inc.

Web site:  http://www.bnproperties.com