Brandywine Realty Trust Reports Core FFO per Diluted Share of $0.31 for Fourth Quarter of 2013 and $1.38 for 2013; Affirms 2014 FFO Guidance Range of $1.40 – $1.49 per Diluted Share;
PR Newswire Association LLC |
"2013 was an outstanding year for our Company with superb execution on operations, investments and balance sheet management," stated
Financial Highlights – Fourth Quarter
- Net income allocated to common shares totaled
$19.0 million or$0.12 per diluted share in the fourth quarter of 2013 compared to a net loss of ($30.8 million ) or ($0.21 ) per diluted share in the fourth quarter of 2012. - Core Funds from Operations available to common shares and units (FFO) in the fourth quarter of 2013 totaled
$49.6 million or$0.31 per diluted share versus$48.2 million or$0.33 per diluted share in the fourth quarter of 2012. Our fourth quarter 2013 Core FFO payout ratio was 48.4% ($0.15 common share distribution /$0.31 Core FFO per diluted share). FFO per the NAREIT definition totaled$46.8 million or$0.29 per diluted share in the fourth quarter of 2013 compared to$21.1 million or$0.14 per diluted share in the fourth quarter of 2012. - In the fourth quarter of 2013, we incurred
$20.0 million of revenue maintaining capital expenditures which along with other adjustments to FFO, resulted in$23.8 million or$0.15 per diluted share of Cash Available for Distribution (CAD) versus$27.9 million or$0.19 per diluted share in the fourth quarter of 2012 when we incurred$13.8 million of revenue maintaining capital expenditures. Our fourth quarter 2013 CAD payout ratio was 100.0% ($0.15 common share distribution /$0.15 CAD per diluted share).
Financial Highlights – Full Year 2013
- Net income allocated to common shares totaled
$35.5 million or$0.23 per diluted share in 2013 compared to a net loss of ($8.2 million ) or ($0.06 ) per diluted share in 2012. - Core FFO available to common shares and units in 2013 totaled
$214.8 million or$1.38 per diluted share versus$201.7 million or$1.38 per diluted share in 2012. Our Core FFO payout ratio for 2013 was 43.5% ($0.60 common share distribution /$1.38 Core FFO per diluted share). FFO per the NAREIT definition totaled$210.4 million or$1.35 per diluted share in 2013 compared to$170.5 million or$1.16 per diluted share in 2012. - In 2013, we incurred
$67.0 million of revenue maintaining capital expenditures which along with other adjustments to FFO, resulted in$114.4 million or$0.73 per diluted share of CAD versus$116.6 million or$0.80 per diluted share in 2012 when we incurred$48.3 million of revenue maintaining capital expenditures. Our CAD payout ratio for 2013 was 82.2% ($0.60 common share distribution /$0.73 CAD per diluted share).
Portfolio Highlights
- In the fourth quarter of 2013, our Net Operating Income (NOI) excluding termination revenues and other income items increased 3.1% on a GAAP basis and 6.2% on a cash basis for our 196 same store properties, which were 89.6% and 87.7% occupied on
December 31, 2013 andDecember 31, 2012 , respectively. For full year 2013, our NOI excluding termination revenues and other income items increased 3.5% on a GAAP basis and 4.8% on a cash basis. - During the fourth quarter of 2013, we commenced occupancy on 923,784 square feet of total leasing activity including 397,700 square feet of renewals, 398,869 square feet of new leases and 127,215 square feet of tenant expansions. We have an additional 551,064 square feet of executed new leasing scheduled to commence subsequent to
December 31, 2013 . - During the fourth quarter of 2013, we achieved a 90.5% tenant retention ratio in our core portfolio with positive net absorption of 343,705 square feet resulting in an overall retention rate for 2013 of 68.3% with 289,271 square feet of positive net absorption. For the full year 2013, we achieved an 8.6% increase on our renewal rental rates and a 7.1% increase on our new lease/expansion rental rates, both on a GAAP basis.
- At
December 31, 2013 , our core portfolio of 200 properties comprising 24.0 million square feet was 89.5% occupied and we are now 91.8% leased (reflecting new leases commencing afterDecember 31 , 2013).
Investment Highlights
- During the fourth quarter, as previously announced, we closed on the formation of a 50/50 joint venture with an affiliate of
DRA Advisors LLC which simultaneously acquired our wholly-ownedAustin, Texas office portfolio comprising 7 properties and 1,398,826 square feet along with related assets for$330.0 million or$236 per square foot. The joint venture secured$230.6 million of mortgage financing with a weighted-average maturity of 5.0 years and a weighted-average interest rate of 3.39%, resulting in$271.5 million of net proceeds to us which is being used for general corporate purposes. We are providing property management and leasing services to the joint venture and are obligated to fund the first$5.2 million of property capital expenditures of which$0.8 million had been funded as ofDecember 31 , 2013.DRA Advisors and we have each committed$100.0 million of additional equity capital to further grow theAustin, Texas joint venture. - During the fourth quarter, as previously announced, we completed the acquisition from Parkway Properties of 74% of the remaining 75% common ownership interest that we did not already own in One and
Two Commerce Square inPhiladelphia's Central Business District . For the acquisition of the ownership interest, the parties valued One andTwo Commerce Square at$331.8 million or$175 per square foot.Commerce Square consists of two 41-story trophy class office towers totaling 1,896,142 square feet which recently achieved LEED-Silver certification following a comprehensive capital program. As ofDecember 31, 2013 ,One Commerce Square was 83.7% occupied andTwo Commerce Square was 89.6% occupied. In connection with our acquisition of the ownership interest, we assumed$237.1 million of existing mortgage debt with a weighted-average remaining maturity of 5.4 years and a weighted-average rate of 4.35%, and we funded$73.1 million of remaining acquisition and closing costs from available corporate funds. - During the fourth quarter, as previously announced, we completed the acquisition from Parkway Properties of
Four Points Centre for$41.5 million , or$216 per square foot, and several nearby land parcels for$5.8 million in the Northwest submarket inAustin , Texas. Four Points Centre consists of two LEED-Gold, three-story buildings built in 2008 totaling 192,396 square feet that are currently 100% leased. The land parcels are entitled to build up to 480,000 square feet of additional office space. We funded this acquisition from available corporate funds. - During the fourth quarter, we acquired the ground parcel underlying our 100% occupied, 730,187 square foot Cira Centre trophy class office tower in the University City submarket of
Philadelphia, Pennsylvania for$24.6 million which we funded from available corporate funds. The acquisition of the ground parcel gives us 100% fee ownership of Cira Centre. - As previously announced, we are underway with the development of
FMC Tower at Cira Centre South, a trophy class mixed-use office tower designed by the architectural firms ofPelli Clark Pelli and Bower Lewis Thrower to be located at the southern end of our Cira Centre project in University City. Upon completion,FMC Tower at Cira Centre South will approximate 830,000 rentable square feet comprising 575,000 square feet of office space, 10,000 square feet of retail and 260 luxury apartment suites (265,000 square feet), 70-100 of which will be fully furnished with concierge services and the balance to be market rate rental housing. The office component is projected to cost$236.0 million with the residential component costing$105.0 million for a total anticipated investment of$341.0 million . Brandywine has executed a 16-year lease with FMC for 253,000 square feet and a 20-year lease with theUniversity of Pennsylvania for 100,000 square feet, bringing the total office pre-leasing to 61.4%. Groundbreaking will occur in the second quarter of 2014 with completion scheduled for June 2016. Initial funding of the development will be from available corporate funds with a review underway of other institutional debt and/or equity sources. - We are continuing the
$158.5 million development of evo at Cira South, a 33-story, 850-bed student housing tower in the University City submarket ofPhiladelphia, Pennsylvania , which we are developing in a 30/30/40 joint venture with Campus Crest Communities, Inc. (30%) andHarrison Street Real Estate Capital (40%), with completion expected in the third quarter of 2014. The partners have fulfilled their$60.7 million equity contributions and funding of the$97.8 million construction loan is underway with$1.0 million advanced as ofDecember 31 , 2013. We satisfied our$18.2 million 30% share of the equity commitment via an$8.5 million ground lease contribution and funded the remaining$9.7 million from available corporate funds. - As part of our Cira South master plan, we are developing a one-acre elevated park known as
Cira Green on the roof of theCira South Garage directly between theFMC Tower and evo properties.Cira Green is expected to be completed in the third quarter of 2014, will extend the recreational green belt created by theSchuylkill River Trail andPenn Park and will be an outstanding amenity for the entire University City neighborhood. We will fund the$11.3 million cost ofCira Green from available corporate funds. - We are continuing the
$77.0 million development of The Parc atPlymouth Meeting , a 398-unit multi-family project inPlymouth Meeting, Pennsylvania , in a 50/50 joint venture with Toll Brothers which we expect to complete by the end of 2015. The partners fully funded$31.0 million of initial project equity with our share fully satisfied by our contribution of the underlying land parcel. The remaining construction costs will be funded from a$56.0 million construction loan whose closing inDecember 2013 resulted in a$3.0 million return of capital to each partner. As ofDecember 31, 2013 ,$20.2 million had been spent on the development inclusive of land costs,$4.8 million of funded equity capital was on hand for upcoming costs and the$56.0 million construction loan was fully available with no outstanding balance. - We are continuing the
$18.8 million redevelopment of660 West Germantown Pike , a 154,392 square foot office building located inPlymouth Meeting, Pennsylvania , that we acquired vacant in the first quarter of 2012 for$9.1 million . We will fund the remaining$1.2 million of costs from available corporate funds as we complete the lease-up of this property by year-end 2014. As ofDecember 31, 2013 ,660 West Germantown Pike was 80.3% leased and occupied. - We are continuing the
$7.4 million development of200 Radnor Chester Road , a 17,884 square foot restaurant and retail center adjoining ourRadnor, Pennsylvania office properties. We will fund the remaining$1.4 million of costs from available corporate funds in anticipation of the second quarter 2014 stabilization date. As ofDecember 31, 2013 ,200 Radnor Chester Road was 90.7% pre-leased. - We and an affiliate of
The Shooshan Company have entered into a 50/50 joint venture to build4040 Wilson Boulevard , a 426,900 square foot office building representing the final phase of the eight-building, mixed-use, Liberty Center complex developed by Shooshan in the Ballston submarket ofArlington , Virginia. Shooshan contributed its land parcel to the venture, and we will contribute up to$36.0 million of which$13.5 million has been funded to date from available corporate funds. Groundbreaking will occur upon reaching certain pre-leasing levels, at which point the joint venture expects to seek third-party construction financing.
Capital Markets Highlights
- At
December 31, 2013 , our net debt to gross assets measured 42.6%, reflecting the fact that we had no outstanding balance on our$600.0 million unsecured revolving credit facility and$263.2 million of cash and cash equivalents on hand. - For the quarter ended
December 31, 2013 , we had a 2.6 EBITDA to interest coverage ratio and a 7.5 ratio of net debt to annualized quarterly EBITDA reflecting our consolidated EBITDA excluding certain capital market and transactional items and our pro rata share of unconsolidated EBITDA, interest and debt. Excluding the debt and 13 days of EBITDA from theCommerce Square transaction which closed onDecember 19, 2013 provides a 6.8 ratio of net debt to annualized quarterly EBITDA as defined above.
Distributions
On
2014 Earnings and FFO Guidance
Based on current plans and assumptions and subject to the risks and uncertainties more fully described in our
Guidance for 2014 |
Range or Value |
||
Earnings per diluted share allocated to common shareholders |
|
to |
|
Plus: real estate depreciation and amortization |
1.40 |
1.40 |
|
FFO per diluted share |
|
to |
|
Our 2014 FFO guidance does not include income arising from the sale of undepreciated real estate. Our 2014 earnings and FFO per diluted share each reflect
- Occupancy improving to a range of 91 – 92% by year-end 2014 with 93 – 94% leased;
- 6.0% – 8.0% GAAP increase in overall lease rates with a resulting 3.0% – 5.0% increase in 2014 same store GAAP NOI;
- No capital markets or acquisition activity and no share issuance under our ATM program;
$150.0 million of aggregate sales activity at an 8.5% capitalization rate weighted towards the second half of 2014; and- FFO per diluted share based on 160.5 million fully diluted weighted average common shares.
We will provide a Core FFO calculation if our 2014 activity necessitates an adjustment for capital market or transactional items.
Non-GAAP Supplemental Financial Measures
We compute our financial results in accordance with generally accepted accounting principles (GAAP). Although FFO, NOI and CAD are non-GAAP financial measures, we believe that FFO, NOI and CAD calculations are helpful to shareholders and potential investors and are widely recognized measures of real estate investment trust performance. At the end of this press release, we have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measure.
Funds from Operations (FFO) and Core FFO
We compute FFO in accordance with standards established by the
Net Operating Income (NOI)
NOI is a non-GAAP financial measure equal to net income available to common shareholders, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, non-controlling interests and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, gains on early extinguishment of debt, income from discontinued operations, income from unconsolidated joint ventures and non-controlling interests. In some cases, we also present NOI on a cash basis, which is NOI after eliminating the effect of straight-lining of rent and deferred market intangible amortization. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income as an indication of our performance, or as an alternative to cash flow from operating activities as a measure of our liquidity or ability to make cash distributions to shareholders.
Cash Available for Distribution (CAD)
CAD is a non-GAAP financial measure that is not intended as an alternative to cash flow from operating activities as determined under GAAP. CAD is presented solely as a supplemental disclosure with respect to liquidity because we believe it provides useful information regarding our ability to fund our distributions. Because other companies do not necessarily calculate CAD the same way as we do, our presentation of CAD may not be comparable to similarly titled measures provided by other companies.
Revenue Maintaining Capital Expenditures
Revenue maintaining capital expenditures, a non-GAAP financial measure, are a component of our CAD calculation and represent the portion of capital expenditures required to maintain our current level of funds available for distribution. Revenue maintaining capital expenditures include current tenant improvement and allowance expenditures for all tenant spaces that have been owned for at least one year, and that were not vacant during the twelve-month period prior to the date that the tenant improvement or allowance expenditure was incurred. Revenue maintaining capital expenditures also include other expenditures intended to maintain our current revenue base. Accordingly, we exclude capital expenditures related to development and redevelopment projects, as well as certain projects at our core properties that are intended to attract prospective tenants in order to increase revenues and/or occupancy rates.
Fourth Quarter Earnings Call and Supplemental Information Package
We will host a conference call on
We have prepared a supplemental information package that includes financial results and operational statistics related to the fourth quarter earnings report. The supplemental information package is available in the "Investor Relations – Financial Reports" section of our website at www.brandywinerealty.com.
Looking Ahead - First Quarter 2014 Conference Call
We anticipate we will release our first quarter 2014 earnings on
About
Forward-Looking Statements
Estimates of future earnings per share, FFO per share, common share dividend distributions and certain other statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our and our affiliates' actual results, performance, achievements or transactions to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: our ability to lease vacant space and to renew or relet space under expiring leases at expected levels; competition with other real estate companies for tenants; the potential loss or bankruptcy of major tenants; interest rate levels; the availability of debt, equity or other financing; risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; unanticipated operating and capital costs; our ability to obtain adequate insurance, including coverage for terrorist acts; dependence upon certain geographic markets; and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which our tenants operate. Additional information on factors which could impact us and the forward-looking statements contained herein are included in our filings with the
|
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands) |
||||||
|
|
|||||
2013 |
2012 |
|||||
(unaudited) |
||||||
ASSETS |
||||||
Real estate investments: |
||||||
Rental properties |
$ 4,669,289 |
$ 4,726,169 |
||||
Accumulated depreciation |
(983,808) |
(954,665) |
||||
Rental property, net |
3,685,481 |
3,771,504 |
||||
Construction-in-progress |
74,174 |
48,950 |
||||
Land inventory |
93,351 |
102,439 |
||||
Real estate investments, net |
3,853,006 |
3,922,893 |
||||
Cash and cash equivalents |
263,207 |
1,549 |
||||
Accounts receivable, net |
17,389 |
13,232 |
||||
Accrued rent receivable, net |
126,295 |
122,066 |
||||
Investment in real estate ventures, at equity |
180,512 |
193,555 |
||||
Deferred costs, net |
122,954 |
122,243 |
||||
Intangible assets, net |
132,329 |
70,620 |
||||
Notes receivable |
7,026 |
7,226 |
||||
Other assets |
62,377 |
53,325 |
||||
Total assets |
$ 4,765,095 |
$ 4,506,709 |
||||
LIABILITIES AND EQUITY |
||||||
Mortgage notes payable, including premiums |
$ 670,151 |
$ 442,974 |
||||
Unsecured credit facility |
- |
69,000 |
||||
Unsecured term loans |
450,000 |
450,000 |
||||
Unsecured senior notes, net of discounts |
1,475,230 |
1,503,356 |
||||
Accounts payable and accrued expenses |
83,693 |
71,579 |
||||
Distributions payable |
25,584 |
23,652 |
||||
Deferred income, gains and rent |
71,635 |
82,947 |
||||
Acquired lease intangibles, net |
34,444 |
33,859 |
||||
Other liabilities |
32,923 |
55,826 |
||||
Total liabilities |
2,843,660 |
2,733,193 |
||||
|
||||||
Preferred shares - Series E |
40 |
40 |
||||
Common shares |
1,566 |
1,434 |
||||
Additional paid-in capital |
2,971,596 |
2,780,194 |
||||
Deferred compensation payable in common stock |
5,407 |
5,352 |
||||
Common shares held in grantor trust |
(5,407) |
(5,352) |
||||
Cumulative earnings |
522,528 |
479,734 |
||||
Accumulated other comprehensive loss |
(2,995) |
(15,918) |
||||
Cumulative distributions |
(1,592,515) |
(1,493,206) |
||||
|
1,900,220 |
1,752,278 |
||||
Non-controlling interests |
21,215 |
21,238 |
||||
Total equity |
1,921,435 |
1,773,516 |
||||
Total liabilities and equity |
$ 4,765,095 |
$ 4,506,709 |
||||
|
||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||
(unaudited, in thousands, except share and per share data) |
||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||
Revenue |
||||||||||||
Rents |
$ 114,333 |
$ 110,977 |
$ 461,387 |
$ 437,560 |
||||||||
Tenant reimbursements |
18,492 |
19,931 |
79,087 |
77,060 |
||||||||
Termination fees |
1,551 |
711 |
4,497 |
3,233 |
||||||||
Third party management fees, labor reimbursement and leasing |
3,401 |
3,095 |
13,053 |
12,116 |
||||||||
Other |
881 |
1,681 |
4,186 |
5,710 |
||||||||
Total revenue |
138,658 |
136,395 |
562,210 |
535,679 |
||||||||
Operating Expenses |
||||||||||||
Property operating expenses |
40,985 |
39,494 |
160,406 |
152,319 |
||||||||
Real estate taxes |
12,973 |
13,036 |
55,612 |
53,402 |
||||||||
Third party management expenses |
1,646 |
1,315 |
5,751 |
5,127 |
||||||||
Depreciation and amortization |
47,721 |
46,323 |
197,021 |
188,382 |
||||||||
General & administrative expenses |
7,305 |
7,204 |
27,628 |
25,413 |
||||||||
Total operating expenses |
110,630 |
107,372 |
446,418 |
424,643 |
||||||||
Operating income |
28,028 |
29,023 |
115,792 |
111,036 |
||||||||
Other income (expense) |
||||||||||||
Interest income |
596 |
377 |
1,044 |
3,008 |
||||||||
Historic tax credit transaction income |
- |
- |
11,853 |
11,840 |
||||||||
Interest expense |
(30,248) |
(33,194) |
(121,937) |
(132,939) |
||||||||
Deferred financing costs |
(1,174) |
(2,418) |
(4,676) |
(6,208) |
||||||||
Recognized hedge activity |
- |
(2,985) |
- |
(2,985) |
||||||||
Interest expense - financing obligation |
(279) |
(242) |
(972) |
(850) |
||||||||
Equity in income of real estate ventures |
(93) |
1,359 |
3,664 |
2,741 |
||||||||
Net gain (loss) from remeasurement of investment in RE ventures |
(981) |
- |
6,866 |
- |
||||||||
Net gain (loss) on real estate venture transactions |
25,921 |
- |
29,604 |
(950) |
||||||||
Net loss on sale of undepreciated real estate |
(8) |
- |
(137) |
- |
||||||||
Loss on early extinguishment of debt |
(992) |
(20,453) |
(2,119) |
(22,002) |
||||||||
Income (loss) from continuing operations |
20,770 |
(28,533) |
38,982 |
(37,309) |
||||||||
Discontinued operations: |
||||||||||||
Income (loss) from discontinued operations |
(121) |
1,835 |
825 |
9,064 |
||||||||
Net gain on disposition of discontinued operations |
353 |
- |
3,382 |
34,774 |
||||||||
Total discontinued operations |
232 |
1,835 |
4,207 |
43,838 |
||||||||
Net income (loss) |
21,002 |
(26,698) |
43,189 |
6,529 |
||||||||
Net (income) loss from discontinued operations attributable |
||||||||||||
to non-controlling interests - LP units |
(3) |
(32) |
(55) |
(797) |
||||||||
Net (income) loss from continuing operations attributable to |
||||||||||||
non-controlling interests - LP units |
(214) |
523 |
(357) |
863 |
||||||||
Net (income) loss attributable to non-controlling interests |
(217) |
491 |
(412) |
66 |
||||||||
Net income (loss) attributable to |
20,785 |
(26,207) |
42,777 |
6,595 |
||||||||
Preferred share distributions |
(1,725) |
(2,573) |
(6,900) |
(10,405) |
||||||||
Preferred share redemption charge |
- |
(1,962) |
- |
(4,052) |
||||||||
Amount allocated to unvested restricted shareholders |
(85) |
(90) |
(363) |
(376) |
||||||||
Net income (loss) attributable to common shareholders |
$ 18,975 |
$ (30,832) |
$ 35,514 |
$ (8,238) |
||||||||
PER SHARE DATA |
||||||||||||
Basic income (loss) per common share |
$ 0.12 |
$ (0.21) |
$ 0.23 |
$ (0.06) |
||||||||
Basic weighted-average shares outstanding |
156,722,149 |
143,478,042 |
153,140,458 |
143,257,097 |
||||||||
Diluted income (loss) per common share |
$ 0.12 |
$ (0.21) |
$ 0.23 |
$ (0.06) |
||||||||
Diluted weighted-average shares outstanding |
158,187,817 |
143,478,042 |
154,414,311 |
143,257,097 |
||||||||
|
||||||||||||
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION |
||||||||||||
(unaudited, in thousands, except share and per share data) |
||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||
Reconciliation of Net Income to Funds from Operations: |
||||||||||||
Net income (loss) attributable to common shareholders |
$ 18,975 |
$ (30,832) |
$ 35,514 |
$ (8,238) |
||||||||
Add (deduct): |
||||||||||||
Net income (loss) attributable to non-controlling interests - LP units |
214 |
(523) |
357 |
(863) |
||||||||
Amount allocated to unvested restricted shareholders |
85 |
90 |
363 |
376 |
||||||||
Net (gain) loss on real estate venture transactions |
(25,921) |
- |
(29,604) |
950 |
||||||||
Net income from discontinued operations attributable to non-controlling interests - LP units |
3 |
32 |
55 |
797 |
||||||||
Net gain on disposition of discontinued operations |
(353) |
- |
(3,382) |
(34,774) |
||||||||
Net (gain) loss from remeasurement of investment in real estate ventures |
981 |
- |
(6,866) |
- |
||||||||
Depreciation and amortization: |
||||||||||||
Real property - continuing operations |
38,880 |
37,467 |
160,665 |
148,871 |
||||||||
Leasing costs (includes acquired intangibles) - continuing operations |
8,806 |
8,819 |
36,217 |
38,983 |
||||||||
Real property - discontinued operations |
30 |
1,900 |
1,922 |
10,208 |
||||||||
Leasing costs (includes acquired intangibles) - discontinued operations |
- |
- |
3 |
291 |
||||||||
Company's share of unconsolidated real estate ventures |
5,283 |
4,260 |
15,959 |
14,788 |
||||||||
Funds from operations |
$ 46,983 |
$ 21,213 |
$ 211,203 |
$ 171,389 |
||||||||
Funds from operations allocable to unvested restricted shareholders |
(168) |
(87) |
(830) |
(856) |
||||||||
Funds from operations available to common share and unit holders (FFO) |
$ 46,815 |
$ 21,126 |
$ 210,373 |
$ 170,533 |
||||||||
FFO per share - fully diluted |
$ 0.14 |
$ 1.35 |
$ 1.16 |
|||||||||
Capital market and transactional items |
$ 2,775 |
$ 27,050 |
$ 4,424 |
$ 31,127 |
||||||||
Core FFO, excluding capital market and transactional items |
$ 49,590 |
$ 48,176 |
$ 214,797 |
$ 201,660 |
||||||||
Core FFO per share, excluding capital market and transactional items - fully diluted |
$ 0.31 |
$ 0.33 |
$ 1.38 |
$ 1.38 |
||||||||
Weighted-average shares/units outstanding - fully diluted |
159,951,556 |
146,772,116 |
156,203,398 |
146,408,921 |
||||||||
Distributions paid per common share |
$ 0.15 |
$ 0.15 |
$ 0.60 |
$ 0.60 |
||||||||
Payout ratio of FFO (Distributions paid per common share/ FFO per diluted share) |
51.7% |
107.1% |
44.4% |
51.7% |
||||||||
Core FFO payout ratio, excluding capital market and transactional items |
48.4% |
45.5% |
43.6% |
43.5% |
||||||||
CASH AVAILABLE FOR DISTRIBUTION (CAD): |
||||||||||||
Funds from operations available to common share and unit holders |
$ 46,815 |
$ 21,126 |
$ 210,373 |
$ 170,533 |
||||||||
Add (deduct): |
||||||||||||
Rental income from straight-line rent, including discontinued operations |
(3,800) |
(5,764) |
(20,136) |
(23,568) |
||||||||
Financing Obligation - |
(210) |
(245) |
(759) |
(802) |
||||||||
Deferred market rental income, including discontinued operations |
(1,777) |
(1,640) |
(7,180) |
(6,178) |
||||||||
Company's share of unconsolidated real estate ventures' straight-line and deferred market rent |
(810) |
(267) |
(1,665) |
(1,218) |
||||||||
Historic tax credit transaction income |
- |
- |
(11,853) |
(11,840) |
||||||||
Preferred unit redemption charge |
- |
1,962 |
- |
4,052 |
||||||||
Straight-line and deferred market ground rent expense activity |
223 |
498 |
1,541 |
1,992 |
||||||||
Stock-based compensation costs |
976 |
2,015 |
6,883 |
6,049 |
||||||||
Fair market value amortization - mortgage notes payable |
91 |
91 |
363 |
364 |
||||||||
Losses from early extinguishment of debt |
992 |
20,453 |
2,119 |
22,002 |
||||||||
Recognized hedge activity |
- |
2,985 |
- |
2,985 |
||||||||
Acquisition-related costs |
1,325 |
459 |
1,695 |
480 |
||||||||
Sub-total certain items |
(2,990) |
20,547 |
(28,992) |
(5,682) |
||||||||
Less: |
Revenue maintaining capital expenditures: |
|||||||||||
Building improvements |
(4,313) |
(2,480) |
(6,715) |
(5,172) |
||||||||
Tenant improvements |
(12,567) |
(7,506) |
(38,336) |
(31,419) |
||||||||
Lease commissions |
(3,129) |
(3,828) |
(21,956) |
(11,694) |
||||||||
Total revenue maintaining capital expenditures |
(20,009) |
(13,814) |
(67,007) |
(48,285) |
||||||||
Cash available for distribution |
$ 23,816 |
$ 27,859 |
$ 114,374 |
$ 116,566 |
||||||||
CAD per share - fully diluted |
$ 0.15 |
$ 0.19 |
$ 0.73 |
$ 0.80 |
||||||||
Weighted-average shares/units outstanding - fully diluted |
159,951,556 |
146,772,116 |
156,203,398 |
146,408,921 |
||||||||
Distributions paid per common share |
$ 0.15 |
$ 0.15 |
$ 0.60 |
$ 0.60 |
||||||||
CAD payout ratio (Distributions paid per common share / CAD per diluted share) |
100.0% |
78.9% |
82.2% |
75.0% |
||||||||
|
|||||
SAME STORE OPERATIONS - 4TH QUARTER |
|||||
(unaudited and in thousands) |
|||||
Of the 204 properties owned by the Company as of |
|||||
Three Months Ended |
|||||
2013 |
2012 |
||||
Revenue |
|||||
Rents |
$ 108,416 |
$ 105,539 |
|||
Tenant reimbursements |
17,011 |
16,275 |
|||
Termination fees |
1,551 |
711 |
|||
Other |
608 |
1,473 |
|||
127,586 |
123,998 |
||||
Operating expenses |
|||||
Property operating expenses |
39,728 |
38,694 |
|||
Real estate taxes |
11,819 |
11,442 |
|||
Net operating income |
$ 76,039 |
$ 73,862 |
|||
Net operating income - percentage change over prior year |
2.9% |
||||
Net operating income, excluding termination fees & other |
$ 73,880 |
$ 71,678 |
|||
Net operating income, excluding termination fees & other - percentage change over prior year |
3.1% |
||||
Net operating income |
$ 76,039 |
$ 73,862 |
|||
Straight line rents |
(2,996) |
(5,102) |
|||
Above/below market rent amortization |
(1,460) |
(1,493) |
|||
Non-cash ground rent |
223 |
498 |
|||
Cash - Net operating income |
$ 71,806 |
$ 67,765 |
|||
Cash - Net operating income - percentage change over prior year |
6.0% |
||||
Cash - Net operating income, excluding termination fees & other |
$ 69,647 |
$ 65,581 |
|||
Cash - Net operating income, excluding termination fees & other - percentage change over prior year |
6.2% |
||||
The following table is a reconciliation of Net Income to Same Store net operating income: |
|||||
Three Months Ended |
|||||
2013 |
2012 |
||||
Net income: |
$ 21,002 |
$ (26,698) |
|||
Add/(deduct): |
|||||
Interest income |
(596) |
(377) |
|||
Interest expense |
30,248 |
33,194 |
|||
Deferred financing costs |
1,174 |
2,418 |
|||
Recognized hedge activity |
- |
2,985 |
|||
Interest expense - financing obligation |
279 |
242 |
|||
Equity in income of real estate ventures |
93 |
(1,359) |
|||
Loss from remeasurement of investment in a real estate venture |
981 |
- |
|||
Net gain on real estate venture transactions |
(25,921) |
- |
|||
Net loss on sale of undepreciated real estate |
8 |
- |
|||
Loss on early extinguishment of debt |
992 |
20,453 |
|||
Depreciation and amortization |
47,721 |
46,323 |
|||
General & administrative expenses |
7,305 |
7,204 |
|||
Total discontinued operations |
(232) |
(1,835) |
|||
Consolidated net operating income |
83,054 |
82,550 |
|||
Less: Net operating income of non same store properties |
(2,979) |
(568) |
|||
Less: Eliminations and non-property specific net operating income |
(4,036) |
(8,120) |
|||
Same Store net operating income |
$ 76,039 |
$ 73,862 |
|||
|
|||||
SAME STORE OPERATIONS - YEAR |
|||||
(unaudited and in thousands) |
|||||
Of the 204 properties owned by the Company as of |
|||||
Twelve Months Ended |
|||||
2013 |
2012 |
||||
Revenue |
|||||
Rents |
$ 430,382 |
$ 418,602 |
|||
Tenant reimbursements |
64,195 |
63,616 |
|||
Termination fees |
4,497 |
3,182 |
|||
Other |
2,898 |
5,317 |
|||
501,972 |
490,717 |
||||
Operating expenses |
|||||
Property operating expenses |
152,868 |
151,007 |
|||
Real estate taxes |
47,431 |
46,814 |
|||
Net operating income |
$ 301,673 |
$ 292,896 |
|||
<br /> | |||||
Net operating income - percentage change over prior year |
3.0% |
||||
Net operating income, excluding termination fees & other |
$ 294,278 |
$ 284,397 |
|||
Net operating income, excluding termination fees & other - percentage change over prior year |
3.5% |
||||
Net operating income |
$ 301,673 |
$ 292,896 |
|||
Straight line rents |
(17,195) |
(20,209) |
|||
Above/below market rent amortization |
(5,765) |
(5,865) |
|||
Non-cash ground rent |
1,541 |
1,992 |
|||
Cash - Net operating income |
$ 280,254 |
||||
Cash - Net operating income - percentage change over prior year |
4.3% |
||||
Cash - Net operating income, excluding termination fees & other |
$ 272,859 |
$ 260,315 |
|||
Cash - Net operating income, excluding termination fees & other - percentage change over prior year |
4.8% |
||||
The following table is a reconciliation of Net Income to Same Store net operating income: |
|||||
Twelve Months Ended |
|||||
2013 |
2012 |
||||
Net income: |
$ 43,189 |
$ 6,529 |
|||
Add/(deduct): |
|||||
Interest income |
(1,044) |
(3,008) |
|||
Historic tax credit transaction income |
(11,853) |
(11,840) |
|||
Interest expense |
121,937 |
132,939 |
|||
Deferred financing costs |
4,676 |
6,208 |
|||
Recognized hedge activity |
- |
2,985 |
|||
Interest expense - financing obligation |
972 |
850 |
|||
Equity in income of real estate ventures |
(3,664) |
(2,741) |
|||
Net gain from remeasurement of investment real estate ventures |
(6,866) |
- |
|||
Net (gain) loss on real estate venture transactions |
(29,604) |
950 |
|||
Net loss on sale of undepreciated real estate |
137 |
- |
|||
Loss on early extinguishment of debt |
2,119 |
22,002 | |||
Depreciation and amortization |
197,021 |
188,382 |
|||
General & administrative expenses |
27,628 |
25,413 |
|||
Total discontinued operations |
(4,207) |
(43,838) |
|||
Consolidated net operating income |
340,441 |
324,831 |
|||
Less: Net operating income of non same store properties |
(8,948) |
(676) |
|||
Less: Eliminations and non-property specific net operating income |
(29,820) |
(31,259) |
|||
Same Store net operating income |
$ 301,673 |
$ 292,896 |
|||
SOURCE
Wordcount: | 6544 |
Minersville Native, Team Win $1M For Super Bowl Commercial
Ziegler Financial Advisor Rob Hellman Plans March 4 Social Security Seminar
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News