Attached files
| file | filename |
|---|---|
| EX-99.2 - SUPPLEMENTAL - Douglas Emmett Inc | ex99-2.htm |
| 8-K - COVER PAGE - Douglas Emmett Inc | form8k.htm |
 |
808
Wilshire Boulevard, 2nd
Floor T:
310.255.7700
Santa
Monica, California 90401F: 310.255.7702
|
FOR IMMEDIATE
RELEASE
|
Mary
Jensen, Vice President – Investor Relations
310.255.7751
or mjensen@douglasemmett.com
|
Douglas
Emmett, Inc. Announces
2009
Fourth Quarter and Year-End Earnings Results
Reports
FFO of $0.30 Per Diluted Share for the Quarter
and
$1.27 Per Diluted Share for the Year
SANTA
MONICA, CALIFORNIA – February 9, 2010 – Douglas Emmett, Inc. (NYSE:DEI), a real
estate investment trust (REIT), today announced its 2009 fourth quarter and
year-end financial results for the period ended December 31, 2009.
Financial
Results
Funds
From Operations (FFO) for the three months ended December 31, 2009 totaled $46.3
million, or $0.30 per diluted share, compared to $55.6 million, or $0.36 per
diluted share, for the three months ended December 31, 2008. For the
year ended December 31, 2009, FFO totaled $198.1 million, or $1.27 per diluted
share, compared to $211.7 million, or $1.36 per diluted share, for the year
ended December 31, 2008.
The
Company reported a GAAP net loss attributable to common stockholders of $8.9
million, or ($0.07) per diluted share, for the three months ended December 31,
2009, compared to a GAAP net loss attributable to common stockholders of $6.4
million, or ($0.05) per diluted share, for the three months ended December 31,
2008. For the year ended December 31, 2009, the Company reported a
GAAP net loss attributable to common stockholders of $27.1 million, or ($0.22)
per diluted share, compared to $28.0 million, or ($0.23) per diluted share for
the year ended December 31, 2008.
Same
Property Net Operating Income (NOI) on a cash basis decreased 1.1% for the three
months ended December 31, 2009 compared to the three months ended December 31,
2008. Same Property NOI on a GAAP basis for the three months ended
December 31, 2009 decreased 0.7% compared to the three months ended December 31,
2008.
Company
Operations
Office: During the
fourth quarter of 2009, the Company signed 157 new and renewal leases totaling
more than 715,000 square feet, compared to 575,000 square feet in the third
quarter. New leasing activity continued at a strong pace during the
fourth quarter of 2009, entering into 58 new leases totaling approximately
192,000 square feet compared to the third quarter when we entered into 62 new
leases aggregating approximately 214,000 square feet. Both quarters
are significantly higher than the quarterly average of 124,200 square feet
signed in the first and second quarters of 2009.
As of
December 31, 2009, the Company’s office portfolio was 91.7% leased and 90.6%
occupied, compared to 91.8% leased and 90.7% occupied at September 30, 2009.
This excludes the six properties acquired in March 2008 and owned by Douglas
Emmett Fund X, the Company’s institutional fund. As of December 31,
2009, the Company’s office portfolio, including the Fund X properties, was 90.3%
leased and 89.0% occupied, compared to 90.4% leased and 89.2% occupied at
September 30, 2009. The occupied percentage represents the leased
portion of the Company’s office portfolio less those leases where the rent
commencement date has yet to occur.
Douglas
Emmett Fund X was deconsolidated from the Company’s results at the end of
February 2009. Therefore, the Company’s financial statements reflect
the results of the Fund X properties on a consolidated basis for the period from
March 2008 (when the Company acquired the properties) through February 2009 and
on an unconsolidated basis for the remainder of the 2009 year.
If the
results of the Fund X properties were reflected on an unconsolidated basis in
all applicable periods, total office revenues for the Company would have
decreased to $122.4 million for the quarter ended December 31, 2009 from $122.6
million for the quarter ended December 31, 2008. Total office revenues for the
year ended December 31, 2009 would have increased to $493.2 million from $491.6
million for the year ended December 31, 2008.
Same
property office revenues, on a cash basis, decreased to $114.1 million in the
fourth quarter of 2009 from $114.5 million in the fourth quarter of
2008.
Multifamily: Same
property multifamily revenues, on a cash basis, decreased to $16.1 million for
the quarter ended December 31, 2009 from $16.6 million for the quarter ended
December 31, 2008. Same property multifamily revenues, on a GAAP basis,
decreased to $17.0 million for the quarter ended December 31, 2009 from $17.5
million for the quarter ended December 31, 2008.
As of
December 31, 2009, the Company’s multifamily portfolio was 99.0% leased compared
to 99.4% leased at September 30, 2009.
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Financings, Equity
Repurchase and Cash Position
As
previously announced, during the fourth quarter, the Company consummated the
renewal of its revolving credit facility extending its maturity date to October
30, 2010. The pricing and other terms and conditions remain the same
as prior to the extension. The available proceeds under the credit facility are
$350 million, of which there is zero drawn. A second one-year
extension option remains available to the Company, which would extend the
maturity to October 30, 2011. In addition, during the fourth quarter,
the Company extended the maturity date of its $18 million Honolulu Club loan to
March 1, 2011. All of the terms and conditions of this loan remain
the same as prior to the extension.
During
2009, the Company repurchased a total of 1,069,500 share equivalents for
approximately $8.2 million, which represents an average cost of $7.68 per
share.
At
December 31, 2009, the Company had approximately $73 million in cash and cash
equivalents on hand, an increase of approximately $64 million from the beginning
of 2009.
Dividends
During
the quarter, the Company’s Board of Directors declared a quarterly cash dividend
of $0.10 per common share. The dividend was paid on January 15, 2010 to
shareholders of record as of December 31, 2009. On an annualized basis, this
represents a dividend of $0.40 per common share.
On
January 13, 2010, the Company announced that none of the Company’s 2009
dividends will be classified as ordinary income or capital gains for United
States federal income tax purposes. 100% of the Company’s 2009
dividends will be classified as a return of capital. Additional information on
the taxability of Douglas Emmett’s Common Stock dividends can be found on the
Investor Relations section of the Company website at www.douglasemmett.com.
Guidance
The
Company is establishing its full year 2010 FFO guidance range of $1.19 - $1.25
per diluted share. This guidance excludes any impact from future acquisitions,
dispositions, equity purchases, debt financings, recapitalizations, or similar
matters. Further, this also assumes that non-cash interest expense
for 2010 relating to the Company’s pre-IPO interest rate swap contracts will
approximate straight-line amortization and that one-month LIBOR will average
1.00% during the period from August 1, 2010 to December 31, 2010, the period
following the expiration of $1.11 billion of interest rate swap
contracts.
Conference Call and Webcast
Information
A
conference call to discuss the Company’s 2009 fourth quarter and year-end
financial results is scheduled for Wednesday, February 10, 2010 at 2:00 pm
Eastern Time or 11:00 am Pacific Time. Interested parties can access
the live call or the replay via the:
|
·
|
Internet: Go to www.douglasemmett.com
at least fifteen minutes prior to the start time of the call in order to
register, download and install any necessary audio software;
or
|
|
·
|
Phone: 877-298-7945
(U.S./Canada) or 706-758-2996 (International) – conference ID
#49868811.
|
A replay
of the live call will be available for 90 days on the Company’s website, at
www.douglasemmett.com.
Alternatively, a digital replay will be available at approximately 2:00 p.m.
Pacific Time / 5:00 p.m. Eastern Time, on Wednesday, February 10, 2010 through
Wednesday, February 17, 2010 using 800-642-1687 (U.S./Canada), or 706-645-9291
(International) and conference ID #49868811.
Supplemental
Information
Supplemental
financial information for the Company’s 2009 fourth quarter and year-end
financial results can be accessed on the Company’s website under the Investor
Relations section at www.douglasemmett.com.
About Douglas Emmett,
Inc.
Douglas
Emmett, Inc. (NYSE: DEI) is a fully integrated, self-administered and
self-managed real estate investment trust (REIT), and one of the largest owners
and operators of high-quality office and multifamily properties located in
premier submarkets in California and Hawaii. The Company’s properties are
concentrated in ten submarkets – Brentwood, Olympic Corridor, Century City,
Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino, Warner
Center/Woodland Hills, Burbank and Honolulu. The Company focuses on
owning and acquiring a substantial share of top-tier office properties and
premier multifamily communities in neighborhoods that possess significant supply
constraints, high-end executive housing and key lifestyle amenities. The Company
maintains a website at www.douglasemmett.com.
Safe Harbor
Statement
Except
for the historical facts, the statements in this press release are
forward-looking statements based on our beliefs about and assumptions made by
and information currently available to us about known and unknown risks, trends,
uncertainties and factors that are beyond our control or ability to predict.
Although we believe that our assumptions are reasonable, they are not guarantees
of future performance and some will inevitably prove to be
incorrect. As a result, our actual future results can be expected to
differ from our expectations, and those differences may be
material. Accordingly, investors should use caution in relying on
forward-looking statements to anticipate future results or
trends. For a discussion of some of the risks and uncertainties that
could cause actual results to differ from those contained in the forward-looking
statements, see “Risk Factors” in our Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
--tables
follow--
page
2 of 7
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Douglas
Emmett, Inc.
Consolidated
Balance Sheets
(unaudited
and in thousands)
|
December
31, 2009
|
December
31, 2008
|
|||||||
|
Assets
|
||||||||
|
Investment
in real estate:
|
||||||||
|
Land
|
$ | 835,407 | $ | 900,213 | ||||
|
Buildings and
improvements
|
5,017,569 | 5,528,567 | ||||||
|
Tenant improvements and lease
intangibles
|
534,084 | 552,536 | ||||||
|
Investment
in real estate, gross
|
6,387,060 | 6,981,316 | ||||||
|
Less: accumulated
depreciation
|
(688,893 | ) | (490,125 | ) | ||||
|
Investment
in real estate, net
|
5,698,167 | 6,491,191 | ||||||
|
Cash
and cash equivalents
|
72,740 | 8,655 | ||||||
|
Tenant
receivables, net
|
1,841 | 2,427 | ||||||
|
Deferred
rent receivables, net
|
40,395 | 33,039 | ||||||
|
Interest
rate contracts
|
108,027 | 176,255 | ||||||
|
Acquired
lease intangible assets, net
|
11,691 | 18,163 | ||||||
|
Investment
in unconsolidated real estate fund
|
97,127 | ― | ||||||
|
Other
assets
|
29,944 | 31,304 | ||||||
|
Total assets
|
$ | 6,059,932 | $ | 6,761,034 | ||||
|
Liabilities
|
||||||||
|
Secured
notes payable
|
$ | 3,258,000 | $ | 3,672,300 | ||||
|
Unamortized
non-cash debt premium
|
15,459 | 20,485 | ||||||
|
Interest
rate contracts
|
237,194 | 407,492 | ||||||
|
Accrued
interest payable
|
26,263 | 22,982 | ||||||
|
Accounts
payable and accrued expenses
|
46,630 | 46,463 | ||||||
|
Acquired
lease intangible liabilities, net
|
139,340 | 195,036 | ||||||
|
Security
deposits
|
32,501 | 35,890 | ||||||
|
Dividends
payable
|
12,160 | 22,856 | ||||||
|
Other
liabilities
|
― | 57,316 | ||||||
|
Total
liabilities
|
3,767,547 | 4,480,820 | ||||||
|
Equity
|
||||||||
|
Douglas
Emmett, Inc. stockholders’ equity:
|
||||||||
|
Common
stock
|
1,216 | 1,219 | ||||||
|
Additional
paid-in capital
|
2,290,419 | 2,284,429 | ||||||
|
Accumulated
other comprehensive income (loss)
|
(186,255 | ) | (274,111 | ) | ||||
|
Accumulated
deficit
|
(312,017 | ) | (236,348 | ) | ||||
|
Total Douglas Emmett, Inc.
stockholders’ equity
|
1,793,363 | 1,775,189 | ||||||
|
Noncontrolling
interests
|
499,022 | 505,025 | ||||||
|
Total equity
|
2,292,385 | 2,280,214 | ||||||
|
Total liabilities and
equity
|
$ | 6,059,932 | $ | 6,761,034 | ||||
page 3
of 7
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Douglas
Emmett, Inc.
Consolidated
Statements of Operations
(unaudited
and in thousands, except per share data)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009(1)
|
2008(2)
|
2009(1)
|
2008(2)
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Office
rental:
|
||||||||||||||||
|
Rental
revenues
|
$
|
98,898
|
|
$ |
110,471
|
|
$ |
406,117
|
|
$ |
433,487
|
|||||
|
Tenant
recoveries
|
8,248
|
9,869
|
31,407
|
32,392
|
||||||||||||
|
Parking
and other income
|
15,266
|
17,726
|
65,243
|
71,498
|
||||||||||||
|
Total
office revenues
|
122,412
|
(3)
|
138,066
|
(3)
|
502,767
|
(4)
|
537,377
|
(4)
|
||||||||
|
Multifamily
rental:
|
||||||||||||||||
|
Rental
revenues
|
15,953
|
16,380
|
64,127
|
66,510
|
||||||||||||
|
Parking
and other income
|
1,056
|
1,124
|
4,166
|
4,207
|
||||||||||||
|
Total
multifamily revenues
|
17,009
|
17,504
|
68,293
|
70,717
|
||||||||||||
|
Total
revenues
|
139,421
|
155,570
|
571,060
|
608,094
|
||||||||||||
|
Operating
Expenses:
|
||||||||||||||||
|
Office expenses
|
38,602
|
(5)
|
44,200
|
(5)
|
154,270
|
(6)
|
166,124
|
(6)
|
||||||||
|
Multifamily
expenses
|
4,562
|
4,191
|
17,925
|
17,079
|
||||||||||||
|
General and
administrative
|
5,992
|
6,389
|
23,887
|
22,646
|
||||||||||||
|
Depreciation and
amortization
|
54,288
|
63,793
|
226,620
|
248,011
|
||||||||||||
|
Total
operating expenses
|
103,444
|
118,573
|
422,702
|
453,860
|
||||||||||||
|
Operating income
|
35,977
|
36,997
|
148,358
|
154,234
|
||||||||||||
|
Gain on disposition of interest
in unconsolidated
real estate
fund
|
―
|
―
|
5,573
|
―
|
||||||||||||
|
Other income
(loss)
|
439
|
3,091
|
(12)
|
3,580
|
||||||||||||
|
Loss, including depreciation,
from
unconsolidated real estate
fund
|
(2,050
|
) |
―
|
(3,279
|
) |
―
|
||||||||||
|
Interest expense
|
(45,643
|
) |
(48,147
|
) |
(184,797
|
) |
(193,727
|
) | ||||||||
|
Net
loss
|
(11,277
|
) |
(8,059
|
) |
(34,157
|
) |
(35,913
|
) | ||||||||
|
Less: Net
loss attributable to noncontrolling
interests
|
2,368
|
1,690
|
7,093
|
7,920
|
||||||||||||
|
Net
loss attributable to common stockholders
|
$
|
(8,909
|
)
|
$ |
(6,369
|
)
|
$ |
(27,064
|
)
|
$ |
(27,993
|
) | ||||
|
Net
loss per common share – basic and diluted(7)
|
$
|
(0.07
|
)
|
$ |
(0.05
|
)
|
$ |
(0.22
|
)
|
$ |
(0.23
|
) | ||||
|
Weighted
average shares of common stock
outstanding – basic and
diluted(7)
|
121,568
|
121,777
|
121,553
|
120,726
|
||||||||||||
|
(1)
|
Douglas
Emmett Fund X, LLC (Fund X) was deconsolidated from our financial
statements as of the end of February 2009 and is presented on an
unconsolidated basis beginning March 2009. As a result, the
consolidated operating results of Douglas Emmett, Inc. for 2009 presented
above reflect the impact of the properties owned by Fund X only for the
months of January and February 2009 on a consolidated
basis.
|
|
(2)
|
The
properties currently owned by Fund X were acquired by us at the end of
March 2008. As such, our consolidated operating results reflect
the impact of the properties now owned by Fund X for the period from March
26, 2008 through December 31, 2008.
|
|
(3)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the entire fourth quarter of 2008, total office revenues
for the fourth quarter of 2008 would have been $122,612 (after subtracting
office revenues attributable to the properties contributed to Fund X of
$15,454) in comparison to the total office revenues of $122,412 for the
fourth quarter of 2009 shown above.
|
|
(4)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the period during 2008 following our acquisition of the
properties and for all of 2009, total office revenues would have been
$491,567 for 2008 (after subtracting office revenues attributable to the
properties contributed to Fund X of $45,810) in comparison to total office
revenues of $493,191 for 2009 (after subtracting office revenues
attributable to the properties contributed to Fund X of
$9,576).
|
|
(5)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the entire fourth quarter of 2008, total office expenses
for the fourth quarter of 2008 would have been $38,949 (after subtracting
office expenses attributable to the properties contributed to Fund X of
$5,251) in comparison to the total office expenses of $38,602 for the
fourth quarter of 2009 shown above.
|
|
(6)
|
If
the properties contributed to Fund X had been an unconsolidated equity
investment for the period during 2008 following our acquisition of the
properties and for all of 2009, total office expenses would have been
$150,423 for 2008 (after subtracting office expenses attributable to the
properties contributed to Fund X of $15,701) in comparison to total office
expenses of $151,572 for 2009 (after subtracting office expenses
attributable to the properties contributed to Fund X of
$2,698).
|
|
(7)
|
Diluted
shares are calculated in accordance with accounting principles generally
accepted in the United States (GAAP) and include common stock plus
dilutive equity instruments, as appropriate. This amount
excludes OP units and vested LTIP units (Long-Term Incentive Plan units
that are limited partnership units in our operating partnership), which
are included in the non-GAAP calculation of fully diluted shares on the
following page of this release.
|
page 4
of 7
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Douglas
Emmett, Inc.
FFO
Reconciliation
(unaudited
and in thousands, except per share data)
|
Three
Months Ended
December
31,
|
Twelve
Months Ended
December
31,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Funds
From Operations (FFO) (1)
|
||||||||||||||||
|
Net
loss attributable to common stockholders
|
$ | (8,909 | ) | $ | (6,369 | ) | $ | (27,064 | ) | $ | (27,993 | ) | ||||
|
Depreciation
and amortization of real estate assets
|
54,288 | 63,793 | 226,620 | 248,011 | ||||||||||||
|
Net
loss attributable to noncontrolling interests
|
(2,368 | ) | (1,690 | ) | (7,093 | ) | (7,920 | ) | ||||||||
|
Loss
on asset disposition
|
― | ― | ― | 65 | ||||||||||||
|
Gain
on disposition of interest in unconsolidated real estate
fund
|
― | ― | (5,573 | ) | ― | |||||||||||
|
Less:
adjustments attributable to consolidated joint venture and
unconsolidated
investment in real estate fund
|
3,249 | (157 | ) | 11,183 | (470 | ) | ||||||||||
|
FFO
|
$ | 46,260 | $ | 55,577 | $ | 198,073 | $ | 211,693 | ||||||||
|
Weighted
average share equivalents outstanding - fully diluted
|
155,657 | 156,062 | 155,561 | 156,172 | ||||||||||||
|
FFO
per share - fully diluted
|
$ | 0.30 | $ | 0.36 | $ | 1.27 | 1.36 | |||||||||
|
(1)
|
We
calculate funds from operations before noncontrolling interest (FFO) in
accordance with the standards established by the National Association of
Real Estate Investment Trusts (NAREIT). FFO represents net income (loss),
computed in accordance with accounting principles generally accepted in
the United States of America (GAAP), excluding gains (or losses) from
sales of depreciable operating property, real estate depreciation and
amortization (excluding amortization of deferred financing costs) and
after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a supplemental performance measure because, in
excluding real estate depreciation and amortization and gains and losses
from property dispositions, it provides a performance measure that, when
compared year over year, captures trends in occupancy rates, rental rates
and operating costs. We also believe that, as a widely recognized measure
of the performance of REITs, FFO will be used by investors as a basis to
compare our operating performance with that of other
REITs. However, because FFO excludes depreciation and
amortization and captures neither the changes in the value of our
properties that results from use or market conditions nor the level of
capital expenditures and leasing commissions necessary to maintain the
operating performance of our properties, all of which have real economic
effect and could materially impact our results from operations, the
utility of FFO as a measure of our performance is limited. Other equity
REITs may not calculate FFO in accordance with the NAREIT definition and,
accordingly, our FFO may not be comparable to such other REITs’ FFO.
Accordingly, FFO should be considered only as a supplement to net income
as a measure of our performance. FFO should not be used as a measure of
our liquidity, nor is it indicative of funds available to fund our cash
needs, including our ability to pay dividends. FFO should not be used as a
supplement to or substitute for cash flow from operating activities
computed in accordance with
GAAP.
|
page
5of 7
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Douglas
Emmett, Inc.
Same
Property Statistical and Financial Data
(unaudited
and in thousands, except statistics)
|
As
of December 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Same
Property Office Statistics
|
||||||||
|
Number
of properties
|
49 | 49 | ||||||
|
Rentable
square feet
|
11,889,282 | 11,888,907 | ||||||
|
%
leased
|
91.7 | % | 94.0 | % | ||||
|
%
occupied
|
90.6 | % | 93.3 | % | ||||
|
Same
Property Multifamily Statistics
|
||||||||
|
Number
of properties
|
9 | 9 | ||||||
|
Number
of units
|
2,868 | 2,868 | ||||||
|
%
leased
|
99.0 | % | 99.1 | % | ||||
|
Three
Months Ended December 31,
|
||||||||||||
|
2009
|
2008
|
%
Favorable
(Unfavorable)
|
||||||||||
|
Same
Property Net Operating Income – GAAP Basis (1)(3)
|
||||||||||||
|
Total
office revenues
|
$ | 122,412 | $ | 122,612 | (0.2 | )% | ||||||
|
Total
multifamily revenues
|
17,009 | 17,504 | (2.8 | ) | ||||||||
|
Total revenues
|
139,421 | 140,116 | (0.5 | ) | ||||||||
|
Total
office expense
|
(38,602 | ) | (38,949 | ) | 0.9 | |||||||
|
Total
multifamily expense
|
(4,562 | ) | (4,191 | ) | (8.9 | ) | ||||||
|
Total property
expense
|
(43,164 | ) | (43,140 | ) | (0.1 | ) | ||||||
|
Same
Property NOI - GAAP basis
|
$ | 96,257 | $ | 96,976 | (0.7 | )% | ||||||
|
Same
Property Net Operating Income - Cash Basis(1)(2)(3)
|
||||||||||||
|
Total
office revenues
|
$ | 114,053 | $ | 114,503 | (0.4 | )% | ||||||
|
Total
multifamily revenues
|
16,129 | 16,621 | (3.0 | ) | ||||||||
|
Total revenues
|
130,182 | 131,124 | (0.7 | ) | ||||||||
|
Total
office expense
|
(38,648 | ) | (38,994 | ) | 0.9 | |||||||
|
Total
multifamily expense
|
(4,562 | ) | (4,191 | ) | (8.9 | ) | ||||||
|
Total property
expense
|
(43,210 | ) | (43,185 | ) | (0.1 | ) | ||||||
|
Same
Property NOI - cash basis
|
$ | 86,972 | $ | 87,939 | (1.1 | )% | ||||||
NOTE: See
below for a description of same property, cash basis and NOI.
page
6 of 7
Douglas
Emmett, Inc. Announces 2009 Fourth Quarter & Year-End Earnings
Results
Douglas
Emmett, Inc.
Reconciliation
of Same Property NOI to GAAP Net Income (Loss)
(unaudited
and in thousands)
|
Three
Months Ended December 31,
|
||||||||
|
2009
|
2008
|
|||||||
|
Same
property office revenues - cash basis (1)(2)
|
$ | 114,053 | $ | 114,503 | ||||
|
GAAP
adjustments
|
8,359 | 8,109 | ||||||
|
Same
property office revenues - GAAP basis
|
122,412 | 122,612 | ||||||
|
Same
property multifamily revenues - cash basis
|
16,129 | 16,621 | ||||||
|
GAAP
adjustments
|
880 | 883 | ||||||
|
Same
property multifamily revenues - GAAP basis
|
17,009 | 17,504 | ||||||
|
Same
property revenues - GAAP basis
|
139,421 | 140,116 | ||||||
|
Same
property office expenses - cash basis
|
(38,648 | ) | (38,994 | ) | ||||
|
GAAP
adjustments
|
46 | 45 | ||||||
|
Same
property office expenses - GAAP basis
|
(38,602 | ) | (38,949 | ) | ||||
|
Same
property multifamily expenses - cash basis
|
(4,562 | ) | (4,191 | ) | ||||
|
GAAP
adjustments
|
― | ― | ||||||
|
Same
property multifamily expenses - GAAP basis
|
(4,562 | ) | (4,191 | ) | ||||
|
Same
property expenses - GAAP basis
|
(43,164 | ) | (43,140 | ) | ||||
|
Same
property Net Operating Income (NOI) (3)-
GAAP basis
|
96,257 | 96,976 | ||||||
|
Non-comparable
office revenues
|
― | 15,454 | ||||||
|
Non-comparable
office expenses
|
― | (5,251 | ) | |||||
|
Total
property NOI - GAAP basis
|
96,257 | 107,179 | ||||||
|
General
and administrative expenses
|
(5,992 | ) | (6,389 | ) | ||||
|
Depreciation
and amortization
|
(54,288 | ) | (63,793 | ) | ||||
|
Operating
income
|
35,977 | 36,997 | ||||||
|
Other
income
|
439 | 3,091 | ||||||
|
Loss,
including depreciation, from unconsolidated real estate
fund
|
(2,050 | ) | ― | |||||
|
Interest
expense
|
(45,643 | ) | (48,147 | ) | ||||
|
Net
loss
|
(11,277 | ) | (8,059 | ) | ||||
|
Less:
Net loss attributable to noncontrolling interests
|
2,368 | 1,690 | ||||||
|
Net
loss attributable to common stockholders
|
$ | (8,909 | ) | $ | (6,369 | ) | ||
|
(1)
|
To
facilitate a more meaningful comparison of NOI between periods, we
calculate comparable amounts for a subset of our owned properties referred
to as “same properties”. Same property amounts are calculated
as the amounts attributable to properties which have been owned and
operated by us during the entire span of both periods
compared. Therefore, any properties either acquired after the
first day of the earlier comparison period or sold or unconsolidated
before the last day of the later comparison period are excluded from same
properties. We may also exclude from the same property set any
property that is undergoing a major repositioning project that would
impact the comparability of its results between two
periods.
|
|
(2)
|
NOI
(as defined in the next footnote) includes the revenue and expense
directly attributable to our real estate properties calculated in
accordance with GAAP, and is specifically labeled as “GAAP
basis.” We also believe that NOI calculated on a cash basis is
useful for investors to understand our operations. Cash basis
NOI is also a non-GAAP measure, which we calculate by excluding from GAAP
basis NOI our straight-line rent adjustments and the amortization of
above/below market lease intangible assets and
liabilities. Accordingly, cash basis NOI should be considered
only as a supplement to net income as a measure of our
performance. Cash basis NOI should not be used as a measure of
our liquidity, nor is it indicative of funds available to fund our cash
needs, including our ability to pay dividends. Cash basis NOI
should not be used as a substitute for cash flow from operating activities
computed in accordance with GAAP.
|
|
(3)
|
Reported
net income (or loss) is computed in accordance with GAAP. In
contrast, net operating income (NOI) is a non-GAAP measure consisting of
the revenue and expense attributable to the real estate properties that we
own and operate. Although NOI is considered a non-GAAP measure,
we present NOI on a “GAAP basis” by using property revenues and expenses
calculated in accordance with GAAP. The most directly
comparable GAAP measure to NOI is net income (or loss), adjusted to
exclude general and administrative expense, depreciation and amortization
expense, interest income, interest expense, income from unconsolidated
partnerships, noncontrolling interests in consolidated partnerships, gains
(or losses) from sales of depreciable operating properties, net income
from discontinued operations and extraordinary
items. Management uses NOI as a supplemental performance
measure because, in excluding real estate depreciation and amortization
expense and gains (or losses) from property dispositions, it provides a
performance measure that, when compared year over year, captures trends in
occupancy rates, rental rates and operating costs. We also
believe that NOI will be useful to investors as a basis to compare our
operating performance with that of other REITs. However, because NOI
excludes depreciation and amortization expense and captures neither the
changes in the value of our properties that result from use or market
conditions, nor the level of capital expenditures and leasing commissions
necessary to maintain the operating performance of our properties (all of
which have real economic effect and could materially impact our results
from operations), the utility of NOI as a measure of our performance is
limited. Other equity REITs may not calculate NOI in a similar manner and,
accordingly, our NOI may not be comparable to such other REITs’
NOI. Accordingly, NOI should be considered only as a supplement
to net income as a measure of our performance. NOI should not be used as a
measure of our liquidity, nor is it indicative of funds available to fund
our cash needs, including our ability to pay dividends. NOI
should not be used as a substitute for cash flow from operating activities
computed in accordance with GAAP.
|
###
page
7of 7