-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, V5t98NVVwlPuVeZ0mDp+1+g95+dW836zRb8QybBEm2WzVhPVOsHIiHl63E+HYJ3Z uwMAOBtLXdC8xjKyy27veQ== 0000928385-01-000276.txt : 20010205 0000928385-01-000276.hdr.sgml : 20010205 ACCESSION NUMBER: 0000928385-01-000276 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010202 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CARRAMERICA REALTY CORP CENTRAL INDEX KEY: 0000893577 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 521796339 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11706 FILM NUMBER: 1523832 BUSINESS ADDRESS: STREET 1: 1850 K STREET NW STREET 2: SUITE 500 CITY: WASHINGTON STATE: DC ZIP: 20006 BUSINESS PHONE: 2027297500 MAIL ADDRESS: STREET 1: 1700 PENNSYLVANIA AVENUE STREET 2: SUITE 700 CITY: WASHINGTON STATE: DC ZIP: 20006 FORMER COMPANY: FORMER CONFORMED NAME: CARR REALTY CORP DATE OF NAME CHANGE: 19940218 8-K 1 0001.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20543 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported) February 2, 2001 Commission File No. 1-11706 CARRAMERICA REALTY CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 52-1796339 - ---------------------------------------- ---------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 1850 K Street, N.W., Washington, D.C. 20006 - -------------------------------------------------------------------------------- (Address or principal executive office) (Zip code) Registrant's telephone number, including area code: (202) 729-1000 ------------- CarrAmerica Realty Corporation Form 8-K Item 7 Financial Statements and Exhibits (c) Exhibits Exhibits Number ------ 99.1 Press Release, February 2, 2001 entitled "Supplemental Operating and Financial Data". 99.2 Press Release, February 2, 2001. Item 9 Regulation FD Disclosure Attached hereto as Exhibits 99.1 and 99.2 are copies of certain Supplemental Information included in the Company's press release, dated February 2, 2001 and the Company's Press Release, dated February 2, 2001. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: February 2, 2001 CARRAMERICA REALTY CORPORATION By: /s/ Stephen E. Riffee ---------------------- Stephen E. Riffee Principal Accounting Officer 3 EXHIBIT INDEX Exhibit Number - ------ 99.1 Press Release, February 2, 2001 entitled "Supplemental Information" 99.2 Press Release, February 2, 2001 4 EX-99.1 2 0002.txt EXHIBIT 99.1 Exhibit 99.1 [LOGO OF CarrAmerica] America's Workplace(R) Fourth quarter 2000 [GRAPHIC OMITTED] [GRAPHIC OMITTED] [GRAPHIC OMITTED] Supplemental Operating and Financial Data For the Quarter Ended December 31, 2000 All dollar amounts shown in this report are in U.S. dollars unless otherwise noted. This supplemental Operating and Financial Data is not an offer to sell or solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made by means of a prospectus. TABLE OF CONTENTS
PAGE ---- CORPORATE OVERVIEW The Company .......................................................................................... 1 Board of Directors / Executive Officers / Research Coverage........................................... 2 Regional Offices / Investor Relations / Information Requests ......................................... 3 FINANCIAL HIGHLIGHTS Key Quarterly Financial Data.......................................................................... 4 Consolidated Balance Sheets........................................................................... 5 Statements of Operations.............................................................................. 6 FFO Statement......................................................................................... 7 Same Store Results and Analysis....................................................................... 8 Statements of EBITDA.................................................................................. 9 Financial Ratios...................................................................................... 10 Share and Operating Partnership Unit Data............................................................. 11 Debt Capitalization Summary........................................................................... 12-13 SEGMENT ANALYSIS Core Operating Properties ------------------------- Current Summary of Portfolio Operating Properties..................................................... 14-17 Lease Roll-over Schedule and Stabilized Properties.................................................... 18 Operating Portfolio Leasing Economics................................................................. 19 Top 25 Tenants by Rent ............................................................................... 20 Development ----------- Current Development Activity by Market................................................................ 21 Land Held for Future Development Schedule............................................................. 22
Fourth quarter 2000 CORPORATE OVERVIEW THE COMPANY - ----------- CarrAmerica Realty Corporation (the "Company") is a self-administered and self- managed equity real estate investment trust ("REIT"), organized under the laws of Maryland, which owns, develops, acquires and operates office properties. The Company's office properties are located primarily in 13 suburban markets across the United States. CURRENT PORTFOLIO (consolidated, stabilized; as of 12/31/00) 252 Properties 20.4 Million Square Feet (consolidated/unconsolidated; as of 12/31/00) 283 Properties 23.9 Million Square Feet CARRAMERICA MISSION STATEMENT - ----------------------------- Our primary goal is to excel in meeting the needs of our customers by providing built environments of the highest quality and services that continue to set new standards of excellence. The core values that infuse our efforts are quality, integrity, a sense of community and a genuine commitment to people. UNSECURED SENIOR DEBT RATINGS - ----------------------------- Rating Outlook ------ ------- Duff & Phelps: BBB Stable Moody's: Baa3 Positive Standard & Poor's: BBB Stable YEAR-TO-DATE AVERAGE OCCUPANCY (stabilized) - ------------------------------ 96.9% Consolidated Properties 97.4% All Properties REGIONAL DISTRIBUTION - --------------------- (consolidated, stabilized; as of 12/31/00) Based on Based on Square NOI Footage ------------ ------------ Pacific Region 49.58% 47.74% Southeast Region 26.50% 22.99% Central Region 13.34% 16.00% Mountain Region 10.58% 13.27% TOP 5 MARKETS - ------------- (consolidated, stabilized; as of 12/31/00) % of NOI % of Sq. Ft. ------------ ---------------- San Francisco Bay Area 29.82% 25.29% Washington D.C. Metro 20.14% 14.33% Orange County/Los Angeles 7.75% 8.89% Seattle 6.39% 7.35% Dallas 6.37% 7.88% --------- ------------ 70.47% 63.74% ========= ============ 1 BOARD OF DIRECTORS - ------------------ Thomas A. Carr Chairman of the Board, President and Chief Executive Officer CarrAmerica Realty Corporation Ronald Blankenship Vice Chairman and Chief Operating Officer Security Capital Group Incorporated Andrew F. Brimmer President Brimmer & Company Inc. Oliver T. Carr, Jr. Chairman of the Board The Oliver Carr Company James Clark Chairman of the Board and President Clark Enterprises, Inc. Timothy Howard Executive Vice President and Chief Financial Officer Fannie Mae Caroline S. McBride Managing Director Security Capital Global Strategic Group, Inc. William D. Sanders Chairman Security Capital Group Incorporated Wesley S. Williams, Jr. Partner Covington & Burling EXECUTIVE OFFICERS - ------------------ Thomas A. Carr President & Chief Executive Officer Philip L. Hawkins Chief Operating Officer Richard F. Katchuk Chief Financial Officer Karen B. Dorigan Chief Investment Officer RESEARCH COVERAGE - ----------------- Louis Taylor Deutsche Banc Alex Brown (212) 469-4912 Christopher Haley/Donald Fandetti First Union (443) 263-6773/(443) 263-6537 James Kammert Goldman, Sachs & Company (212) 855-0670 John Lutzius/Elizabeth Morse Green Street Advisors (949) 640-8780 David Fick/Ken Weinberg Legg Mason Wood Walker (410) 454-5018/(410) 454-5175 David Harris Lehman Brothers (212) 526-5702 Steve Sakwa/Karin Ford Merrill Lynch & Company, Inc. (212) 449-0335/(212) 499-7810 Greg Whyte Morgan Stanley Dean Witter (212) 761-6331 Fred Carr, Jr. The Penobscot Group, Inc. (617) 723-9600 Jonathan Litt/Gary Boston Salomon Smith Barney (212) 816-0231/(212) 816-1383 2 CORPORATE HEADQUARTERS - ---------------------- 1850 K Street, N.W. Suite 500 Washington, D.C. 20006 (202) 729-1000 REGIONAL OFFICES - ---------------- Atlanta, Georgia J. Thad Ellis, Regional Managing Director Austin, Texas Jeffrey S. Pace, Regional Managing Director Chicago, Illinois Gerald J. O'Malley, Regional Managing Director Dallas, Texas William Vanderstraaten, Regional Managing Director Denver, Colorado William Krokowski, Regional Managing Director Florida J. Thad Ellis, Regional Managing Director Northern California Leah N. Segawa, Regional Managing Director Phoenix, Arizona Robert Milkovich, Regional Managing Director Salt Lake City William Krokowski, Regional Managing Director Seattle/Portland Clete Casper, Regional Managing Director Southern California Malcolm O'Donnell, Regional Managing Director Washington, D.C. John Donovan, Regional Managing Director STOCK EXCHANGE LISTINGS - ----------------------- New York Stock Exchange TRADING SYMBOL - -------------- CRE INVESTOR RELATIONS - ------------------ CarrAmerica Realty Corporation 1850 K Street, N.W. Washington, D.C. 20006 Telephone: (202) 729-1000 Fax: (202) 729-1060 CONTACT - ------- Stephen M. Walsh Vice President, Capital Markets Telephone: (202) 729-1764 E-mail: swalsh@carramerica.com ---------------------- INFORMATION REQUEST - ------------------- To request a standard Investor Relations package, Annual Report, or to be added to our mailing or fax list, please contact or address an e-mail to: Investor Relations at (202) 729-7518 Or 1 (800) 417-2277 swalsh@carramerica.com ---------------------- [LOGO OF CARRAMERICA] PLEASE VISIT OUR CORPORATE WEB SITE AT: --------------------------------------- www.carramerica.com ------------------- 3 Fourth quarter 2000 FINANCIAL HIGHLIGHTS CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Key Quarterly Financial Data
- ------------------------------------------------------------------------------------------------------------------- ($ and shares in thousands) 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99 ----------------------------------------------------------------------------- Shares and Units: - ----------------- Common Shares 65,018 65,759 66,307 67,027 66,826 Outstanding OP Units (a) 6,088 6,480 6,364 6,480 6,480 Convertible Preferred Shares 480 480 480 480 680 Combined Shares and OP Units (a) 71,586 72,719 73,151 73,987 73,986 Weighted Average - Basic 65,152 65,987 66,856 66,967 66,818 Weighted Average - Diluted 73,432 74,767 74,684 74,233 74,101 Share Price: - ------------ At the end of the period $ 31.31 $ 30.25 $ 26.52 $ 21.25 $ 21.38 High during period $ 31.50 $ 30.75 28.31 22.32 22.69 Low during period $ 28.80 $ 27.44 21.38 19.94 17.94 Capitalization Summary (continuing operations): - ----------------------------------------------- Market Value of Common Equity $2,241,537 $2,199,750 $1,939,965 $1,572,224 $1,581,451 Preferred Equity 400,000 400,000 400,000 400,000 400,000 Total Debt (e) 1,211,158 1,215,710 1,432,972 1,609,911 1,603,371 Total Market Capitalization (e) 3,852,695 3,815,460 3,772,937 3,582,135 3,584,822 Total Debt / Total Market Capitalization (e) 31.4% 31.9% 38.0% 44.9% 44.7% Financial Information (continuing operations): - ---------------------------------------------- Total Assets (g) $3,072,841 $3,112,140 $3,318,363 $3,477,034 $3,479,072 Book Value of Real Estate Assets (before accumulated depreciation) (e) 2,909,604 3,015,812 3,313,038 3,312,305 3,287,885 Total Liabilities (e) 1,336,448 1,346,789 1,540,890 1,705,397 1,699,771 Total Minority Interest (Including OP) (e) 89,687 90,455 89,389 92,405 92,586 Total Shareholders Equity (e) 1,646,706 1,674,896 1,688,084 1,679,232 1,686,715 Total Operating Revenues (e) 132,669 139,357 144,439 141,566 133,847 Property NOI 82,942 91,912 94,625 92,397 87,361 Property Operating Margin 66.7% 69.8% 68.0% 67.6% 67.3% EBITDA (e) 83,765 90,094 90,076 89,892 83,810 EBITDA per share - basic (e) 1.29 1.37 1.35 1.34 1.24 EBITDA per share - diluted (e) 1.14 1.20 1.21 1.21 1.12 Interest Coverage Ratio (c, e) 3.9 3.6 3.6 3.3 3.4 Interest Coverage Ratio (d, e) 3.5 3.3 3.1 3.0 2.9 Fixed Charge Coverage Ratio (c, e) 2.4 2.5 2.4 2.3 2.3 Fixed Charge Coverage Ratio (d, e) 2.3 2.3 2.2 2.1 2.0 Adjusted Funds From Operations (e, f) 55,138 56,348 55,430 53,516 49,219 Dividends declared .4625 .4625 .4625 .4625 .4625 FFO payout ratio - Diluted (e) 61.7% 61.7% 62.5% 64.2% 70.1% Net-Straight Line revenue/expense adjustment 3,844 3,168 3,465 3,001 4,969 Portfolio Size (including unconsolidated - ---------------------------------------- properties): - ----------- Buildings 283 284 281 282 275 Total Square Footage 23,914 24,569 24,331 24,317 23,797 Current Weighted Average Occupancy 97.7% 97.5% 98.4% 96.7% 97.6%
(a) Operating Partnership (b) See page 7 for definition of Funds from Operations (FFO). (c) Excluding covering capitalized interest. (d) Including covering capitalized interest. (e) Restated to exclude discontinued operations. (f) Represents diluted Funds from Operations (FFO). (g) Restated to account for discontinued operations. 4 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets
- ------------------------------------------------------------------------------------------------------------------- (In thousands) December 31, December 31, 2000 1999 --------------- -------------- Assets - ------ Rental Property: Land $ 644,326 $ 674,390 Buildings 1,836,214 2,082,533 Tenant Improvements 325,936 304,983 Furniture, fixtures and equipment 6,844 5,916 ------------- ----------- 2,813,320 3,067,822 Less - accumulated depreciation (381,260) (323,455) ------------- ----------- Net rental property 2,432,060 2,744,367 Land held for future development and sale 47,984 104,050 Construction-in-progress 48,300 116,013 Cash and cash equivalents - unrestricted 24,704 51,886 Cash and cash equivalents - restricted 39,482 12,475 Accounts and notes receivable 70,693 34,734 Investments 269,193 67,143 Accrued straight-line rents 54,960 47,764 Tenant leasing costs, net 54,522 58,848 Deferred financing costs, net 11,311 15,621 Prepaid expenses and other assets, net 19,632 18,503 Net assets of discontinued operations - 207,668 ------------- ----------- $ 3,072,841 $ 3,479,072 ============= =========== Liabilities and Stockholders' Equity - ------------------------------------ Liabilities: Mortgages and notes payable $ 1,211,158 $ 1,603,371 Accounts payable and accrued expenses 96,147 68,643 Rent received in advance and security deposits 29,143 27,757 ------------- ----------- 1,336,448 1,699,771 ------------- ----------- Minority interest 89,687 92,586 Stockholders' equity: Preferred stock 93 95 Common stock 650 668 Additional paid in capital 1,755,985 1,816,990 Cumulative dividends in excess of net income (110,022) (131,038) ------------- ----------- 1,646,706 1,686,715 ------------- ----------- $ 3,072,841 $ 3,479,072 ============= ==============
5 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations
- --------------------------------------------------------------------------------------------------------------------------------- (In thousands, except per share amounts) Three Months Ended December Twelve Months Ended 31, December 31, ----------------------------- --------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Revenues: Rental income (1): Minimum base rent $ 106,583 $ 110,506 $ 448,068 $ 422,440 Recoveries from tenants 14,616 15,925 64,344 58,426 Parking and other tenant charges 3,218 3,411 19,447 17,983 ---------- ---------- ---------- ---------- Total rental revenue 124,417 129,842 531,859 498,849 ---------- ---------- ---------- ---------- Real estate service income 8,252 4,005 26,172 17,054 ---------- ---------- ---------- ---------- Total operating revenues 132,669 133,847 558,031 515,903 ---------- ---------- ---------- ---------- Operating expenses: Property expenses: Operating expenses 30,157 31,701 124,119 122,676 Real estate taxes 11,318 10,779 45,864 44,529 Interest expense 21,571 24,465 98,348 89,057 General and administrative 12,134 10,008 46,189 38,894 Depreciation and amortization 29,376 31,433 128,542 119,700 ---------- ---------- ---------- ---------- Total operating expenses 104,556 108,386 443,062 414,856 ---------- ---------- ---------- ---------- Real estate operating income 28,113 25,461 114,969 101,047 Other operating income: Interest income 2,020 1,075 4,372 3,936 Equity in earnings of unconsolidated entities 2,685 1,376 7,596 5,167 Gain on settlement of treasury locks - - - 4,489 --------- ---------- ---------- ---------- Total other operating income 4,705 2,451 11,968 13,592 --------- ---------- ---------- ---------- Income from continuing operations before gain on sale of assets, income taxes, and minority interest 32,818 27,912 126,937 114,639 Income taxes - (783) - (783) Minority interest (6,994) (2,995) (16,149) (17,599) ---------- ---------- ---------- ---------- Income from continuing operations before gain on sale of assets 25,824 24,134 110,788 96,257 Discontinued operations - (Loss) income from operations of discontinued Executive Suites subsidiary (less applicable income tax expense) - (1,891) 456 (7,862) Discontinued operations - Gain on sale of discontinued operations (less applicable income tax expense of $21,131) - - 31,852 - ---------- ---------- ---------- ---------- Net income before gain on sale of assets: 25,824 22,243 143,096 88,395 Gain on sale of assets and other provisions net of income taxes 8,448 5,006 36,371 54,822 ---------- ---------- ---------- ---------- Net income $ 34,272 $ 27,249 $ 179,467 $ 143,217 ========== ========== ========== ========== Basic net income per common share: Net income from continuing operations $ 0.26 $ 0.23 $ 1.14 $ 0.90 Discontinued operations - (0.03) 0.01 (0.12) Gain on sale of discontinued operations - - 0.48 - Gain on sale of assets, net 0.13 0.08 0.55 0.81 ---------- ---------- ---------- ---------- Net income $ 0.39 $ 0.28 $ 2.18 $ 1.59 ---------- ---------- ---------- ---------- Diluted net income per share: Net income from continuing operations $ 0.25 $ 0.23 $ 1.12 $ 0.90 Discontinued operations - (0.03) 0.01 (0.12) Gain on sale of discontinued operations - - 0.47 - Gain on sale of assets, net 0.13 0.08 0.53 0.81 ---------- ---------- ---------- ---------- Net income $ 0.38 $ 0.28 $ 2.13 $ 1.59 ========== ========== ========== ==========
NOTE: (1) Rental income includes $3,844 and $4,969 of accrued straight-line rents for the three month periods ended December 31, 2000 and 1999, respectively, and $13,478 and $14,331 of accrued straight-line rents for the twelve month periods ended December 31, 2000 and 1999, respectively. 6 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Consolidated Funds From Operations - -------------------------------------------------------------------------------- The National Association of Real Estate Investment Trusts (NAREIT) defines funds from operations ("FFO") as net income (loss) (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from debt restructuring or sales of property, plus depreciation and amortization of assets uniquely significant to the real estate industry and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. NAREIT's definition for FFO excludes discontinued operations, however, the Company has elected to calculate FFO from discontinued operations, the Company's executive suites business. FFO for discontinued operations includes executive suites earnings before depreciation, amortization and deferred taxes ("EBDADT"). The Company has restated the prior year to conform with the current year presentation which excludes the add back of development losses associated with the Company's executive suites business. The Company continues to exclude the gain on settlement of treasury locks for the restated 1999 FFO.
(In thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ----------------------------- ----------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Net income from continuing operations before minority interest: $ 41,266 $ 32,135 $ 163,308 $ 168,678 Adjustments to derive funds from continuing operations: 31,300 30,913 128,861 117,829 Add: Depreciation and amortization Deduct: Minority interests' (non Unitholders) share of depreciation, amortization and net income (362) (206) (1,084) (609) Gain loss on settlement of treasury locks - - - (4,489) Gain on sale of assets, net of income taxes (8,448) (5,006) (36,371) (54,822) ----------- ------------ ------------ ------------- FFO from continuing operations before allocations to the minority Unitholders 63,756 57,836 254,714 226,587 Less: FFO allocable to the minority Unitholders (4,112) (3,983) (16,342) (16,545) ----------- ------------ ------------ ------------- CarrAmerica Realty Corporation's FFO from continuing operations 59,644 53,853 238,372 210,042 Less: Preferred stock dividends (8,842) (8,932) (35,206) (35,448) ----------- ------------ ------------ ------------- CarrAmerica Realty Corporation's FFO from continuing operations attributable to common shares 50,802 44,921 203,166 174,594 Discontinued operations - 6,307 13,368 23,759 Gain on sale of discontinued operations - - 31,852 - ----------- ------------ ------------ ------------- CarrAmerica Realty Corporation's FFO attributable to common shares $ 50,802 $ 51,228 $ 248,386 $ 198,353 =========== ============ ============ ============= Weighted average common shares outstanding: Basic 65,152 66,818 66,221 67,858 Diluted 73,432 74,101 74,425 75,160 Basic funds from operations per common share: Funds from continuing operations $ 0.78 $ 0.67 $ 3.07 $ 2.57 Funds from discontinued operations - 0.09 0.20 0.35 Funds from sale of discontinued operations - - 0.48 - ----------- ------------ ------------ ------------- Total funds from operations $ 0.78 $ 0.76 $ 3.75 $ 2.92 =========== ============ ============ ============= Diluted funds from operations per share: Funds from continuing operations $ 0.75 $ 0.66 $ 2.96 $ 2.56 Funds from discontinued operations - 0.09 0.18 0.32 Funds from sale of discontinued operations - - 0.43 - ----------- ------------ ------------ ------------- Total funds from operations $ 0.75 $ 0.75 $ 3.57 $ 2.88 =========== ============ ============ ============= CarrAmerica Realty Corporation's FFO from continuing operations attributable to common shares $ 50,802 $ 44,921 $ 203,166 $ 174,594 Series A Preferred share dividends 224 315 922 1,258 Minority interest from convertible partnership units 4,112 3,983 16,342 16,545 ----------- ------------ ------------ ------------- Adjusted FFO from continuing operations attributable to common shares $ 55,138 $ 49,219 $ 220,430 $ 192,397 =========== ============ ============ ============= Weighted average common shares outstanding - Basic 65,152 66,818 66,221 67,858 Weighted average conversion of Series A Preferred shares 480 680 495 680 Weighted average conversion of operating partnership units 6,118 6,498 6,281 6,498 Incremental options 1,682 105 1,428 124 ----------- ------------ ------------ ------------- Adjusted weighted average common shares - Diluted 73,432 74,101 74,425 75,160 =========== ============ ============ =============
7 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Same Store Operating Property Results - -------------------------------------------------------------------------------- (In thousands)
Three Months Ended % Twelve Months Ended % December 31, Change December 31, Change ----------------------- ------------ ----------------------- -------------- 2000 1999 2000 1999 ---- ---- ---- ---- Real Estate Operating Revenue $ 101,102 $ 95,088 6.3% $ 383,019 $ 357,429 7.2% Real Estate Operating Expenses 33,747 31,985 5.5% 123,192 120,253 2.4% ------------ ----------- ----------- ---------- Total Real Estate Operating Income - GAAP Basis $ 67,355 $ 63,103 6.7% $ 259,827 $ 237,176 9.6% ============ =========== =========== ========== Straight-line Rent Adjustment 2,386 1,950 22.4% 5,532 7,249 23.7% ------------ ----------- ----------- ---------- Total Real Estate Operating Income - Cash Basis $ 64,969 $ 61,153 6.2% $ 254,295 $ 229,927 10.6% ============ =========== =========== ========== Average Occupancy 97.3% 96.9% 0.4% 97.2% 96.8% 0.4% ============ =========== =========== ========== Same Store Square Footage 16,877,351 16,222,276 ============ ===========
8 CarrAMERICA Realty Corporation and Subsidiaries Statements of EBITDA - -------------------------------------------------------------------------------- (In thousands)
Twelve Months Three Months Ended Ended December 31, December 31, ---------------------------- ---------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- CONTINUING OPERATIONS: Revenues: Rental Income $124,417 $ 129,842 $531,859 $498,849 Real estate service income 8,252 4,005 26,172 17,054 Other income (1) 4,705 2,451 11,968 9,103 ---------- ----------- ---------- ---------- Total revenue 137,374 136,298 569,999 525,006 ---------- ----------- ---------- ---------- Operating expenses: Property operating expenses: Operating expenses 30,157 31,701 124,119 122,676 Real estate taxes 11,318 10,779 45,864 44,529 General and administrative 12,134 10,008 46,189 38,894 ---------- ----------- ---------- ---------- Total operating expenses 53,609 52,488 216,172 206,099 ---------- ----------- ---------- ---------- EBITDA $ 83,765 $ 83,810 $353,827 $318,907 ========== =========== ========== ==========
NOTE: (1) Balance has been restated to exclude discontinued operations. Also excludes gains on sales of assets and gain on settlement of treasury locks. 9 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Financial Ratios
- ------------------------------------------------------------------------------------------------------------------------------------ Financial Position Ratios for Continuing Operations: December 31, December 31, - ---------------------------------------------------- 2000 1999 ---- ---- Total Debt / Total Capitalization (Book Value) (3) 42.4% 48.7% Total Debt / Total Capitalization (Market) (3) 31.4% 44.7% Operating Ratios for Continuing Operations: Three Months Ended Twelve Months Ended - ------------------------------------------- December 31, December 31, ------------------------------- ----------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Secured EBITDA / Total EBITDA (3) 37.1% 32.1% 35.4% 34.5% Interest Coverage (1, 3) Excluding covering capitalized interest 3.88 3.43 3.60 3.58 Covering capitalized interest 3.51 2.87 3.20 2.76 Fixed charge coverage (3) Excluding covering capitalized interest 2.44 2.30 2.41 2.33 Covering capitalized interest 2.29 2.04 2.22 1.95 Diluted FFO Payout Ratio (2, 3) 61.7% 70.1% 62.5% 72.3% G & A as a % of Revenue 8.8% 7.3% 8.1% 7.4%
NOTES: (1) Calculated as EBITDA before minority interests allocation, extraordinary items, and nonrecurring charges divided by interest expense for the period. (2) Dividends paid per common share divided by diluted FFO per share. (3) Restated to exclude discontinued operations. 10 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Share and Operating Partnership Unit Data - -------------------------------------------------------------------------------- The following table sets forth the Common and Series A Preferred shares of the Company and dividend and non-dividend paying operating partnership Units outstanding at December 31, 2000 and December 31, 1999, and the weighted average Common and Series A Preferred shares of the Company and dividend and non-dividend paying operating partnership Units outstanding for the quarters and years ended December 31, 2000 and 1999. The non-dividend paying Units are not entitled to any distributions until they convert into dividend paying Units on fixed dates in the future. (In thousands)
CarrAmerica Realty CarrAmerica Corporation Realty A Series A Corporation Convertible Dividend Paying Non-Dividend Common Shares Preferred Shares Units Paying Units Outstanding Outstanding (a) Outstanding(b) Outstanding ------------------ -------------------- ------------------- ---------------- Outstanding as of: December 31, 2000 65,018 480 5,656 432 December 31, 1999 66,826 680 6,048 432 ================== ==================== =================== ================ Weighted average for the three months ended December 31: 2000 65,152 480 5,686 432 1999 66,818 680 6,066 432 ================== ==================== =================== ================ Weighted average for the twelve months ended December 31: 2000 66,221 495 5,849 432 1999 67,858 680 6,003 495 ================== ==================== =================== ================
Notes: (a) Series A Preferred shares are convertible into common shares on a one-for- one basis. (b) Operating partnership Units are convertible into cash or common shares on a one-for-one basis. (c) The Company has the following Cumulative Redeemable Preferred shares outstanding which are not included in the table above: Series B 8,000,000 Shares Series C 6,000,000 Shares Series D 2,000,000 Shares 11 CARRAMERICA CORPORATION AND SUBSIDIARIES Debt Collection Summary - -------------------------------------------------------------------------------- ($in thousands)
Principal Maturity ---------------------------------------------- Principal Interest Maturity 2005 & Description of Notes/Lender Property Outstanding Rate Date 2001 2002 2003 2004 Thereafter - --------------------------- -------- ----------- ---- ---- ---- ---- ---- ---- ---------- General Electric Capital Corp. Bannockburn $ 17,714 9.52% 31-Aug-01 $17,714 $ - $ - $ - $ - Manufacturers Life Quorum North $ 6,369 8.27% 10-Dec-01 $ 6,369 $ - $ - $ - $ - NY Life NELO (Note 1) $ 39,443 8.25% 10-Dec-01 $39,443 $ - $ - $ - $ - NML Square 24 Associates (Note 2) $ 32,179 8.90% 1-Jun-02 $ 2,586 $29,593 $ - $ - $ - Union Bank of California Jaycor $ 11,611 7.35% 1-Feb-03 $ 689 $ 742 $10,180 $ - $ - GE Capital Parkway North $ 24,164 6.92% 1-Dec-03 $ 0 $ 0 $24,164 $ - $ - Sun Life Assurance Company of Canada Canyon Park Commons $ 5,196 9.13% 1-Dec-04 $ 250 $ 274 $ 300 $ 4,372 $ - UBS Mortgage Finance Inc. U.S. West $ 19,883 7.92% 1-Dec-05 $ 3,270 $ 3,615 $ 3,980 $ 4,363 $ 4,655 UBS Mortgage Finance Inc. U.S. West $ 5,606 7.92% 1-Dec-05 $ 833 $ 972 $ 1,126 $ 1,297 $ 1,378 UBS Mortgage Finance Inc. U.S. West $ 8,476 7.92% 1-Dec-05 $ 1,243 $ 1,450 $ 1,680 $ 1,936 $ 2,167 UBS Mortgage Finance Inc. U.S. West $ 8,476 7.92% 1-Dec-05 $ 1,243 $ 1,450 $ 1,680 $ 1,936 $ 2,167 Salomon Brothers Redmond East $ 26,616 8.38% 1-Jan-06 $ 436 $ 474 $ 515 $ 560 $ 24,631 State Farm Peterson (Note 3) $ 19,522 7.20% 1-Jan-06 $ 745 $ 800 $ 859 $ 923 $ 16,195 Teachers Insurance & Annuity Concord Place $ 7,374 7.35% 1-Jan-06 $ 159 $ 172 $ 186 $ 201 $ 6,656 Farm Bureau Life Insurance Co. Wateridge Pavilion $ 3,368 8.25% 1-Nov-06 $ 63 $ 68 $ 74 $ 80 $ 3,083 Teachers Ins. and Ann. Assoc. of Amer. Wasatch Corporate Center $ 12,269 8.15% 2-Jan-07 $ 228 $ 247 $ 268 $ 291 $ 11,235 Metropolitan Life Insurance Company 2600 West Olive $ 19,152 6.75% 1-Jan-09 $ - $ - $ - $ - $ 19,152 Midland Loan Services Palomar Oaks $ 9,811 8.85% 1-Apr-09 $ 163 $ 178 $ 194 $ 212 $ 9,064 Northwest Mutual 1255 23rd St $ 38,300 8.12% 1-Apr-09 $ 324 $ 519 $ 563 $ 610 $ 36,284 Northwest Mutual 1730 Penn, I Square (Note 4) $183,700 8.12% 1-Apr-09 $ 1,552 $ 2,490 $ 2,700 $ 2,928 $174,030 GE Capital South Coast $ 15,000 7.13% 10-Jun-09 $ 111 $ 233 $ 250 $ 269 $ 14,137 Business Men's Assurance Co. Sorensen $ 2,364 7.75% 1-Jul-11 $ 150 $ 162 $ 175 $ 189 $ 1,688 Berkshire Life Insurance Co. Sorensen $ 1,572 8.88% 1-May-17 $ 44 $ 48 $ 53 $ 58 $ 1,369 Aid Association for Lutherans 1747 Penn $ 14,418 9.50% 10-Jul-17 $ 376 $ 414 $ 455 $ 500 $ 12,673 Aid Association for Lutherans 900 19th Street $ 15,711 8.25% 15-Jul-19 $ 373 $ 406 $ 440 $ 478 $ 14,014 Riggs 1775 Penn $ 11,864 7.63% 1-Sep-09 $ 119 $ 128 $ 138 $ 149 $ 11,330 --------------- ---------------------------------------------- $560,158 8.09% $78,483 $44,435 $49,980 $21,352 $ 365,908 ======== ===== ======= ======= ======= ======= =========
12 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Debt Capitalization Summary - continued ($ In thousands) Unsecured Bonds Payable - -----------------------
Principal Maturity ------------------------------------ Principal Interest Maturity Outstanding Rate Date 2001 2002 2003 ----------- ---- ---- ---- ---- ---- 7.200% Notes due 2004 $ 150,000 7.200% 1-Jul-04 $ - $ - $ - ========= ========= ========= ========= 7.375% Notes due 2007 $ 125,000 7.375% 1-Jul-07 $ - $ - $ - ========= ========= ========= ========= 6.625% Notes due 2006 $ 100,000 6.625% 1-Mar-05 $ - $ - $ - ========= ========= ========= ========= 6.875% Notes due 2008 $ 100,000 6.875% 1-Mar-08 $ - $ - $ - ========= ========= ========= ========= Principal Maturity ---------------------------------- Principal Interest Maturity 2005 & Outstanding Rate Date 2004 Thereafter ----------- ---- ---- ---- ---------- 7.200% Notes due 2004 $ 150,000 7.200% 1-Jul-04 $ 150,000 $ - ========= ========= ========= 7.375% Notes due 2007 $ 125,000 7.375% 1-Jul-07 $ - $ 125,000 ========= ========= ========= 6.625% Notes due 2006 $ 100,000 6.625% 1-Mar-05 $ - $ 100,000 ========= ========= ========= 6.875% Notes due 2008 $ 100,000 6.875% 1-Mar-08 $ - $ 100,000 ========= ========= =========
Unsecured Line of Credit Amount Amount - ------------------------ Outstanding Outstanding Available Interest Maturity Beginning End Lender Commitment Rate Date of Year Advances Repayments of Year - ------ ---------- ---- ---- ------- -------- ---------- ------- Carr America Realty Corp. - ------------------------ Morgan Guaranty Trust $ 274,000 LIBOR+.700% 26-Aug-01 $ 343,000 $ 317,000 $ 484,000 $ 176,000 ========= ========= ========= ========= ========= Omni Offices Inc. - ---------------- Morgan Guaranty Trust $ 200,000 LIBOR+.700% 26-Aug-01 $ 140,500 $ - $ 140,500 $ - ========= ========= ========= ========= =========
Note LIBOR at month end was a follows: 30 day 6.57% 90 day 6.40% 180 day 6.20% Note 4 Secured by International Square, 1730 Pennsylvania Avenue and 1255 23rd Street. Note 1 Secured by Valley Business Park II and 3745 North First St Note 3 Secured by Century Springs West, Glenridge, Midori, Lakewood and Parkwood. Note 2 Secured by Sunnyvale Technology Center, Highland Corporate Center, and Hacienda West 13 fourth quarter 2000 SEGMENT ANALYSIS CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Current Summary of Portfolio Operating Properties ________________________________________________________________________________ The following table sets forth certain information about each operating property owned by the Company or through joint ventures as of December 31, 2000:
------------------------------------------------------------------------------------------------------------------ Percentage Net Rentable Area Percent Number of Total Property (square feet)/(1)/ Leased/(2)/ of Buildings Square Feet -------- ------------- ------ ------------ ----------- Consolidated Properties ----------------------- SOUTHEAST REGION Downtown Washington, D.C.: International Square 1,014,556 100.0% 3 900 19/th/ Street 101,215 100.0% 1 2550 M Street 187,931 96.8% 1 1730 Pennsylvania Avenue 229,377 100.0% 1 1255 23/rd/ Street 306,126 99.3% 1 1747 Pennsylvania Avenue 152,104 99.8% 1 1775 Pennsylvania Avenue 143,981 97.5% 1 Suburban Washington, D.C.: One Rock Spring Plaza 205,721 98.4% 1 Sunrise Corporate Center 260,253 99.2% 3 Reston Crossing East & West 327,788 100.0% 2 Atlanta, GA: Glenridge 64,219 91.9% 1 Century Springs West 95,055 83.1% 1 Holcomb Place 72,889 100.0% 1 Midori 99,691 100.0% 1 Parkwood 150,270 98.5% 1 Lakewood 80,483 100.0% 1 The Summit 179,085 100.0% 1 Spalding Ridge 128,233 99.3% 1 2400 Lake Park Drive 100,918 78.6% 1 680 Engineering Drive 62,154 100.0% 1 Embassy Row 464,895 92.6% 3 Embassy 100, 500 190,470 100.0% 2 Waterford Centre 82,344 97.4% 1 --------------------------- -------------------------- Southeast Region Subtotal 4,699,758 97.6% 31 23.0% --------------------------- -------------------------- PACIFIC REGION Southern California, Orange County/Los Angeles: Scenic Business Park 140,812 98.1% 4 Harbor Corporate Park 151,924 96.1% 4 Plaza PacifiCare 104,377 100.0% 1 Katella 80,609 97.2% 1 Warner Center 344,147 98.2% 12 South Coast Executive Center 161,692 100.0% 2 Warner Premier 61,553 66.3% 1 Von Karman 104,138 100.0% 1 2600 W. Olive 144,831 100.0% 1 Bay Technology Center 107,481 100.0% 2 Pacific Corporate Plaza 1, 2, 3 125,298 100.0% 3 Alton Deere Plaza 182,183 82.1% 6 Westlake Spectrum 108,084 100.0% 2
14 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Current Summary of Portfolio Operating Properties ________________________________________________________________________________
Percentage Net Rentable Area Percent Number of Total Property (square feet)/(1)/ Leased/(2)/ of Buildings Square Feet -------- ------------ ------ ------------ ----------- Southern California, San Diego: Del Mar Corporate Plaza 123,142 100.0% 2 Wateridge Pavilion 62,194 84.5% 1 Towne Center Technology Park 1, 2, 3 182,120 100.0% 3 Lightspan 64,800 100.0% 1 La Jolla Spectrum 79,759 100.0% 1 Palomar Oaks Technology Park 170,358 100.0% 6 Jaycor 105,358 100.0% 1 Highlands Corporate Center 205,085 99.0% 5 Northern California, San Francisco Bay Area: CarrAmerica Corporate Center 1,001,976 99.8% 6 Valley Business Park I 61,600 100.0% 2 Bayshore Centre 2 94,874 100.0% 1 Rincon Centre 201,178 100.0% 3 Valley Centre II 212,082 100.0% 4 Valley Office Centre 68,881 100.0% 2 Valley Centre 102,291 100.0% 2 Valley Business Park II 166,928 100.0% 6 Rio Robles 368,178 100.0% 7 3745 North First Street 67,582 100.0% 1 Baytech Business Park 300,000 100.0% 4 3571 North First Street 116,000 100.0% 1 San Mateo Center I 70,000 100.0% 1 Oakmead West Land A-G 425,981 100.0% 7 San Mateo II & III 141,404 100.0% 2 Hacienda West 206,992 99.3% 2 Sunnyvale Technology Center 165,520 100.0% 5 Clarify Corporate Center 1, 2, 3, 4 258,048 100.0% 4 Valley Technology Center 1, 2, 3, 4 & 5 460,590 100.0% 7 Golden Gateway Commons 273,327 98.6% 3 Techmart Commerce Center 265,979 100.0% 1 Freemont Technology Park 1, 2, 3 139,304 100.0% 3 Portland, OR: Sunset Corporate Park 132,531 97.9% 3 Rock Creek Corp Center 142,662 100.0% 1 Seattle, WA: Redmond 396,497 100.0% 10 Redmond Hilltop B & C 90,880 100.0% 2 Canyon Park 316,978 96.4% 6 Willow Creek 96,179 100.0% 1 Willow Creek Corp. Center 1, 2, 3, 4, 5, 6 329,009 100.0% 6 Canyon Park Commons 1, 2, 4 176,846 100.0% 3 Canyon Park Commons 95,290 100.0% 1 ----------------------- ----------------------------- Pacific Region Subtotal 9,755,532 98.9% 167 47.7% ----------------------- -----------------------------
15 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Current Summary of Portfolio Operating Properties ________________________________________________________________________________
Percentage Net Rentable Area Percent Number of Total Property (square feet)/(1)/ Leased/(2)/ of Buildings Square Feet -------- ------------- ------ ------------ ----------- CENTRAL REGION Austin, TX: City View Centre 136,183 100.0% 3 City View Center 128,716 100.0% 1 Tower of the Hills 166,149 99.7% 2 Chicago, IL: Parkway North I 249,314 87.8% 1 Unisys 364,115 89.8% 2 The Crossings 296,230 91.7% 2 Bannockburn I & II 209,582 97.8% 2 Bannockburn IV 108,469 96.0% 1 Dallas, TX: Cedar Maple Plaza 112,682 78.9% 3 Quorum North 116,084 92.9% 1 Quorum Place 178,296 97.1% 1 Tollway Plaza 1, 2 359,903 99.4% 2 Two Mission Park 78,046 100.0% 1 Commons @ Las Colinas 1, 3 604,234 100.0% 2 5000 Quorum 161,823 97.2% 1 ----------------------- --------------------------- Central Region Subtotal 3,269,826 95.6% 25 16.0% ----------------------- --------------------------- MOUNTAIN REGION Denver, CO: Harlequin Plaza 329,210 90.2% 2 Quebec Court I 130,000 100.0% 1 Quebec Court II 157,294 100.0% 1 Quebec Centre 106,865 83.9% 3 Phoenix, AZ: Camelback Lakes 201,373 99.9% 2 Pointe Corridor 178,114 68.7% 1 Four Gateway 136,817 98.5% 1 Highland Park 78,970 88.5% 1 The Grove @ Black Canyon 104,571 95.9% 1 U.S. West 532,506 100.0% 4 Concord Place 133,555 73.3% 1 Salt Lake City, UT: Sorenson Research Park 283,076 93.4% 5 Wasatch Corporate Center 178,231 100.0% 3 Wasatch Corporate Center 17, 18 121,654 100.0% 2 Sorenson X 41,288 100.0% 1 ----------------------- --------------------------- Mountain Region Subtotal 2,713,524 93.6% 29 13.3% ----------------------- --------------------------- ----------------------- TOTAL CONSOLIDATED PROPERTIES: 20,438,640 252 ======================= ============= WEIGHTED AVERAGE 97.4% =============
16 CARRAMERICA REALTY CORPORATION AND SUBSIDARIES Current Summary of Portfolio Operating Properties - --------------------------------------------------------------------------------
Company's Net Effective Rentable Number Property Area Percent of Property Ownership (square feet)/(1)/ Leased/(2)/ Buildings - -------- --------- ------------------ ----------- --------- Unconsolidated Properties - ------------------------- Washington, D.C.: 1919 Pennsylvania 49.0% (4) 263,931 98.3% 1 Bond Building 15.0 (5) 242,787 98.4% 1 1717 Pennsylvania Avenue 50.0 (3) 184,446 100.0% 1 Booz-Allen & Hamilton Building 50.0 (6) 222,989 100.0% 1 Portland, OR: GM Call Center 16.2 (7) 103,279 100.0% 1 Chicago Market Office: Parkway North 35.0 (8) 653,914 100.0% 5 Dallas Market Office: Royal Ridge 35.0 (8) 370,997 99.0% 3 Austin Market Office: Riata 35.0 (8) 905,673 100.0% 13 Denver Market Office: Panorama 35.0 (8) 527,200 96.7% 5 TOTAL UNCONSOLIDATED PROPERTIES 3,475,216 31 ========= == WEIGHTED AVERAGE 99.1% ==== ALL OPERATING PROPERTIES - ------------------------ TOTAL: 23,913,856 283 ========== === WEIGHTED AVERAGE 97.7% ====
(1) Includes office and retail space but excludes storage space. (2) Includes space for leases that have been executed and have commenced as of December 31, 2000. (3) The Company holds a 50% interest in the limited liability company that owns the property and serves as the entity's managing member. (4) The Company holds a 49% interest in the property by an interest in a partnership. (5) The Company holds an effective 15% interest in the property by virtue of a 30.6% limited partner interest in a partnership that has a 49% limited partner interest in the property. (6) The Company holds a 50% joint venture interest, and is the managing venturer. (7) The Company holds a 16.2% joint venture interest. (8) The Company holds a 35% joint venture interest. 17 CARRMERICA REALTY CORPORATION AND SUBSIDARIES Lease Rollover Schedule - Stabilized Properties - --------------------------------------------------------------------------------
Square Current YTD Avg. Vacant Region / Market Feet Occupancy Occupancy S.F. 2001 2002 2003 2004 2005 2006 2007 - --------------- ----- --------- --------- ------ ---- ---- ---- ---- ---- ---- ---- PACIFIC REGION: San Francisco Bay Area 5,168,715 99.9% 99.3% 7,228 226,732 755,252 662,673 661,261 560,485 805,854 480,873 Orange County / Los 1,817,129 96.1% 97.9% 70,601 201,169 232,065 225,908 296,329 286,137 125,599 158,673 Angeles Seattle 1,501,679 99.2% 98.2% 11,500 114,705 24,274 230,924 274,241 438,686 96,179 0 San Diego 992,816 98.8% 98.2% 11,657 162,389 28,498 151,465 38,201 87,344 43,781 0 Portland 275,193 99.0% 51.9% 2,794 0 0 0 31,497 74,368 0 122,127 MOUNTAIN REGION: Denver 723,369 93.2% 93.8% 49,377 53,772 118,086 94,365 44,571 186,197 7,448 0 Phoenix 1,365,906 92.2% 94.3% 107,013 71,259 206,194 97,657 113,787 113,389 46,617 532,777 Salt Lake City 624,249 97.0% 97.2% 18,630 34,802 45,520 158,940 273,636 12,389 80,332 0 CENTRAL REGION: Chicago 1,227,710 91.8% 94.5% 100,865 183,782 264,201 299,699 82,496 133,926 4,477 0 Dallas 1,611,068 97.3% 97.6% 43,901 112,177 144,050 268,261 139,134 85,280 18,824 18,516 Austin 431,048 99.9% 99.1% 534 128,460 11,364 27,942 247,369 7,387 7,992 0 SOUTHEAST REGION: Washington, D.C. Downtown Properties 2,135,290 99.4% 98.9% 11,966 47,474 193,351 235,691 514,053 89,823 252,385 219,882 Suburban Properties 793,762 99.3% 99.1% 5,393 6,259 39,922 27,339 87,504 245,734 53,400 423 Atlanta 1,770,706 95.3% 94.3% 82,498 275,367 397,167 417,728 167,795 84,567 26,373 79,259 Totals 20,438,640 97.4% 96.9% 523,957 1,618,347 2,459,944 2,898,592 2,971,874 2,405,712 1,569,261 1,612,530 ---------- ---- ---- ------- --------- --------- --------- --------- --------- --------- --------- 2011 & Region / Market 2008 2009 2010 Thereafter - --------------- ---- ---- ---- ---------- PACIFIC REGION: San Francisco Bay Area 678,592 199,903 129,862 0 Orange County / Los Angeles 203,390 0 17,258 0 Angeles Seattle 0 235,478 0 75,692 San Diego 0 84,949 97,054 287,478 Portland 0 0 44,407 0 MOUNTAIN REGION: Denver 169,553 0 0 0 Phoenix 0 20,866 56,347 0 Salt Lake City 0 0 0 0 CENTRAL REGION: Chicago 43,669 12,800 0 101,795 Dallas 112,961 444,494 223,470 0 Austin 0 0 0 0 SOUTHEAST REGION: Washington, D.C. Downtown Propert 221,074 77,976 15,117 256,498 Suburban Propert 0 327,788 0 0 Atlanta 0 39,482 75,711 124,759 Totals 1,429,239 1,443,736 659,226 846,222 --------- --------- ------- -------
18 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Operating Portfolio Lease Economics - --------------------------------------------------------------------------------
% Change Weighted Lease Tenant Total Total New GAAP Prior GAAP in GAAP Average Commissions Improvements L/C's and Executed Rental Rental Rental Lease Term Per Sq. Per Sq. T/I's Per Market Sq. Footage Rate Rate Rate in Years Foot Foot Sq. Foot - -------------------------- ------------- ---------- ------------ ---------- ------------ ------------- -------------- ---------- Atlanta 213,619 20.19 19.95 1.23% 3.73 2.64 5.77 8.41 Austin 33,165 23.93 21.23 12.72% 4.01 2.27 4.99 7.26 Chicago 137,484 24.76 24.64 0.48% 3.48 3.69 14.07 17.77 Dallas 138,521 22.62 18.82 20.18% 3.69 7.25 9.99 17.24 Denver 100,094 19.10 18.35 4.10% 4.25 1.80 6.74 8.55 Los Angeles/Orange County 203,166 24.41 20.95 16.48% 4.26 5.84 9.29 15.13 Phoenix 55,401 22.31 20.26 10.13% 3.44 3.82 5.71 9.53 Salt Lake City 42,693 17.65 17.12 3.09% 4.48 2.64 10.15 12.79 San Diego 329,839 28.71 22.56 27.27% 5.43 7.95 10.58 18.53 San Francisco Bay 866,878 33.72 18.15 85.94% 4.26 4.42 4.13 8.55 Seattle 150,175 19.81 17.31 14.45% 6.27 5.94 9.00 14.95 Suburban Washington DC 93,279 30.12 29.27 2.89% 5.26 3.81 1.61 5.42 Downtown Washington DC 186,686 35.79 31.80 12.55% 5.85 3.69 3.65 7.34 Total 2,551,000 28.92 20.82 38.94% 4.29 4.79 6.78 11.57
19 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES 25 Largest Tenants - Based on Annualized Base Rent - --------------------------------------------------------------------------------
Percentage of Portfolio Percentage of Occupied Tenant Annualized Rent Square Feet Square Feet - ------------------------------------- ---------------------------- --------------------- ---------------------------------- International Monetary Fund 4.17% 498,918 2.59% Applied Materials, Inc. 2.41% 425,981 2.21% Qwest Communications 2.37% 532,506 2.76% Peoplesoft, Inc. 2.22% 359,686 1.87% AT&T 2.19% 575,748 2.99% Patton Boggs, L.L.P. 1.98% 180,444 0.94% Nokia, Inc. 1.90% 380,764 1.98% Nortel Networks, Inc. 1.65% 258,048 1.34% Nextel Communications, Inc. 1.50% 331,203 1.72% Citigroup 1.47% 229,135 1.19% Franklin Resources, Inc. 1.21% 118,616 0.62% Software AG of North America 1.20% 209,521 1.09% SBC Communications 1.17% 202,093 1.05% Sun Microsystems, Inc. 1.16% 241,436 1.25% Safeco Insurance Co. of America 1.00% 265,658 1.38% Federal Deposit Insurance Corp. 0.99% 121,878 0.63% Boston Scientific 0.92% 212,082 1.10% King & Spalding 0.89% 92,596 0.48% Unisys Corporation 0.88% 197,404 1.02% The Walt Disney Company 0.84% 129,347 0.67% Lattice Semiconductor Corp 0.80% 132,700 0.69% Chronicle of Higher Education 0.75% 91,721 0.48% Merrill Lynch, Pierce, Fenner 0.69% 77,443 0.40% KLA Instruments Corporation 0.67% 132,150 0.69% TSMC North America, Inc. 0.66% 110,590 0.57% --------------- ---------------- ------------------ TOTAL 35.69% 6,107,668 31.71% ================ ================ ==================
20 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES 2000 Development Activity by Market at December 31, 2000 ================================================================================ ($ In Thousands)
Estimated Estimated Estimated Remaining Wholly Owned Construction Stabilizatio In Place Costs to Property Under Construction Square Feet Start Date Completion Date Date Dev Costs Complete - ---------------------------------------------- ------------- ----------- --------------- ------------ ---------- ----------- Atlanta The Forum 90,000 4Q00 4Q01 4Q02 2,365 10,065 ----------- --------- ----------- Atlanta Subtotal 90,000 2,365 10,065 San Diego La Jolla B Spectrum Technology Park 76,894 3Q99 2Q00 2Q01 9,110 14,958 ----------- --------- ----------- San Diego Subtotal 76,894 9,110 14,958 Salt Lake City Creekside 1 78,056 2Q00 1Q01 1Q01 9,832 (38) Creekside 2 0 2Q00 1Q01 1Q01 1,728 0 ----------- --------- ----------- Salt Lake City Subtotal 78,056 11,560 (38) Denver Dry Creek Corporate Center Building 3 92,356 4Q99 4Q00 1Q01 8,567 2,899 ----------- --------- ----------- Denver Subtotal 92,356 8,567 2,899 Washington DC King Street Exchange 22,385 1Q00 1Q01 1Q01 3,452 1,197 ----------- --------- ----------- Washington DC Subtotal 22,385 3,452 1,197 Austin Braker 3 192,451 2Q00 3Q01 3Q01 13,246 17,367 ----------- --------- ----------- Austin Subtotal 192,451 13,246 17,367 Total/Weighted Average 552,142 48,300 46,448 Less: Placed in service - Project to date 0 0 0 ----------- --------- ----------- Total/Weighted Average 552,142 48,300 46,448 =========== ========= =========== (1) Building under contract to be sold to user upon completion Partially Owned Property Under Construction (1) % Ownership - ----------------------------------------------------------------------------------------------------------------------------------- Austin 300 West Sixth Street 20% 444,870 2Q00 4Q01 3Q02 22,332 72,271 ----------- --------- ----------- Austin Subtotal 444,870 22,332 72,271 Chicago Nine Parkway North 35% 129,433 4Q00 4Q01 4Q02 3,023 19,942 ----------- --------- ----------- Chicago Subtotal 129,433 3,023 19,942 Dallas Custer Court 49% 120,047 3Q00 3Q01 1Q02 3,548 12,258 Royal Ridge Bldg 7 35% 132,709 2Q00 1Q01 3Q01 7,697 7,769 ----------- --------- ----------- Dallas Subtotal 252,756 11,245 20,027 Denver Panorama Corporate Center VIII 35% 136,850 1Q00 1Q01 2Q01 15,588 9,093 ----------- --------- ----------- Denver Subtotal 136,850 15,588 9,093 Washington DC 799 9/th/ Street 40% 201,464 2Q00 4Q01 4Q02 27,491 34,439 1201 F Street 35% 227,165 3Q98 1Q00 1Q01 69,633 2,906 ----------- --------- ----------- Washington DC Subtotal 428,629 97,124 37,345 Total/Weighted Average 1,392,538 149,312 158,678 Less: Placed in service (163,888) (51,389) (944) ----------- --------- ----------- Total/Weighted Average 1,228,650 97,923 157,734 =========== ========= =========== Total/Weighted Average 1,780,792 146,223 204,182 =========== ========= =========== (1) Project Yields represent Carr's yields, exclusive of fees.
Total % % Estimated Currently Projected Stabilized Leased or Costs Return Committed ---------- ----------- ------------ 12,430 10.7% 72.2% ---------- ----------- ------------ 12,430 10.7% 72.2% 24,068 15.4% 100.0% ---------- ----------- ------------ 24,068 15.4% 100.0% 9,794 10.5% 100.0% 1,728 12.0% 100.0% ---------- ----------- ------------ 11,522 10.7% 100.0% 11,466 11.9% 100.0% ---------- ----------- ------------ 11,466 11.9% 100.0% 4,649 n/a (1) 100.0% ---------- ----------- ------------ 4,649 100.0% 30,613 11.5% 100.0% ---------- ----------- ------------ 30,613 11.5% 100.0% 94,748 12.4% 95.5% 0 ---------- 94,748 12.4% 95.5% ========== =========== ============ - -------------------------------------- 94,603 10.5% 68.4% ---------- ----------- ------------ 94,603 10.5% 68.4% 22,965 10.0% 0.0% ---------- ----------- ------------ 22,965 10.0% 0.0% 15,806 10.8% 41.7% 15,466 9.9% 67.8% ---------- ----------- ------------ 31,272 10.4% 55.4% 24,681 9.6% 100.0% ---------- ----------- ------------ 24,681 9.6% 100.0% 61,930 9.6% 74.3% 72,539 10.6% 92.8% ---------- ----------- ------------ 134,469 10.1% 84.1% 307,990 10.2% 67.6% (52,333) ---------- 255,657 10.2% 63.3% ========== =========== ============ 350,405 10.7% 75.5% ========== =========== ============
21 CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Land Held For Future Development and Sale Summary - --------------------------------------------------------------------------------
Consolidated ------------------------------------------ Buildable Square Region/Property Market Acres Footage - --------------------------------------------- ---------------------------------- ------------ ------------------------- Wholly Owned Land - --------------------------------------------- Pacific Region: Canyon Pointe A-B Seattle, WA 10 173,760 Sunset Corporate Portland, OR 9 124,800 ------------ ------------------------- Subtotal 19 298,560 Mountain Region: Dry Creek Corporate Center Denver, CO 49 770,356 Sorenson Research Park XI Salt Lake City, UT 6 80,238 Wasatch 16 Salt Lake City, UT 5 80,238 Creekside 2 owned Salt Lake City, UT 6 78,000 Creekside 3 optioned Salt Lake City, UT 6 78,482 ------------ ------------------------- Subtotal 72 1,087,314 Central Region: Braker Pointe (1) Austin, TX 8 0 Tollway Plaza III Dallas, TX 4 134,400 Royal Ridge IV & V Dallas, TX 29 417,000 ------------ ------------------------- Subtotal 41 551,400 Southeast Region: Peninsula Corporate Center 1-2 Boca Raton, FL 20 221,350 Preston Ridge Atlanta, GA 14 96,000 ------------ ------------------------- Subtotal 34 317,350 ------------ ------------------------- ------------ ------------------------- Total 166 2,254,624 ------------ ------------------------- (1) Hotel/Motel land. - --------------------------------------------------------------------------------------------------------------------------------- Partially Owned Buildable Square - --------------- Region/Property Market Acres Footage - --------------------------------------------- ---------------------------------- ------------ ------------------------- Mountain Region: Panorama IV Denver, CO 8 136,850 Panorama VI Denver, CO 9 129,898 Panorama VII Denver, CO 6 100,000 Panorama IX Denver, CO 6 125,490 ------------ ------------------------- Subtotal 29 492,238 ------------ ------------------------- Central Region: Riata 1 Austin, TX 4 61,585 Riata Crossing 4 Austin, TX 5 79,780 Riata Crossing 6 Austin, TX 8 48,125 Parkway North Chicago, IL 14 250,567 Royal Ridge Bldg. 4-6 Dallas, TX 18 316,786 Royal Ridge Bldg. 8 Dallas, TX 9 132,709 ------------ ------------------------- Subtotal 58 889,552 ------------ ------------------------- ------------ ------------------------- Total 87 1,381,790 ------------ ------------------------- ------------ ------------------------- Total All Land 253 3,636,414 ------------ -------------------------
22 EX-99.2 3 0003.txt EXHIBIT 99.2 Immediate Karen L. Widmayer: Media Contact (202) 729-1789 Stephen Walsh: Analyst Contact (202) 729-1764 CARRAMERICA ANNOUNCES 13.6% FFO GROWTH PER SHARE IN FOURTH QUARTER 2000 Washington D.C. - February 2, 2001 - CarrAmerica Realty Corporation (NYSE:CRE) today reported fourth quarter Funds From Operations (FFO) from continuing operations of $55.1 million or $0.75 per diluted share, a 13.6% increase over the same period in 1999. FFO for the twelve month period ended December 31, 2000 was $220.4 million or $2.96 per diluted share as compared to $192.4 million or $2.56 per diluted share for the same period in 1999, a 15.6% increase. CarrAmerica President and Chief Executive Officer, Thomas A. Carr, commented, "CarrAmerica's performance in 2000 concluded strongly." Mr. Carr continued, "We have been, over the last 18 months, preparing the company for the types of economic conditions now apparent. A conservative investment strategy, tremendous success in pre-leased development, excellent performance in our markets and a significant repositioning of our balance sheet; all have contributed to this strong position." Strong Operating Portfolio Performance -------------------------------------- Performance of operating properties remains strong with an average occupancy of 96.9% at December 31, 2000. Property net operating income was $82.9 million for the fourth quarter, down 5.0% from the same period in 1999 as a result of property sales and the previously announced joint venture with New York State Teachers' Retirement System. For the twelve months ended December 31, 2000, same store operating income grew by 9.6% on a GAAP basis and 10.6% on a cash basis over the same period in 1999. Same store portfolio operating income during the quarter grew 6.7% on a GAAP basis and 6.2% on a cash basis over the same period in 1999. The occupancy rate for same store properties was 97.3% in the fourth quarter of 2000 as compared to 96.9% for fourth quarter 1999. Rental rates increased 38.9% on average on the rolling leases executed during the twelve-month period ended December 31, 2000. -CONTINUED- CarrAmerica Release of February 2, 2000 Page Two Development Update - ------------------ As of December 31, 2000, CarrAmerica and its affiliate, CarrAmerica Development, Inc., had approximately 552,000 square feet of wholly owned projects under development in six of the Company's markets. Total cost of this development is expected to be approximately $94.7 million, of which $48.3 million had been invested as of December 31, 2000. This development pipeline is currently 95.5% leased or committed and the year-one unleveraged return on CarrAmerica's invested capital is expected to be approximately 12.4%. CarrAmerica or its affiliates own a partial interest in seven development projects totaling approximately 1.2 million square feet under development in Austin, Chicago, Dallas, Denver and Washington, D.C. The total cost of these projects is expected to be $255.0 million and the projects are currently 63.3% leased or committed. CarrAmerica's share of the total project costs for these developments is expected to be approximately $98.9 million and the year-one unleveraged return on CarrAmerica's invested capital (exclusive of fees) is expected to be approximately 10.2%. CarrAmerica and its affiliate, CarrAmerica Development, Inc., have pending developments totaling $291.0 million that are expected to commence construction in 2001, including a 450,000 square foot project located across from the MCI Arena in downtown Washington, D.C. CarrAmerica's share of the total project costs for these developments is expected to be approximately $120.9 million. During the fourth quarter, CarrAmerica and its affiliates placed in service approximately 456,000 square feet of new office space in wholly owned projects with total project costs of approximately $82.4 million at an expected year-one unleveraged return on invested capital of approximately 11.3%. In addition, 209,000 square feet were placed in service in partially owned projects in which CarrAmerica owns approximately 35% on average, with total project costs of $35.1 million and an average yield of 11.2%. Growth in Fee Service Revenue - ----------------------------- For the twelve months ended December 31, 2000, CarrAmerica and its affiliates generated real estate service income of $26.2 million, an increase of 53.5% over the prior year. Dispositions - ------------ During the fourth quarter, the Company and its affiliates sold three operating properties totaling $49.0 million as well as the previously announced South Florida portfolio sale for $93.3 million. In addition, $13.5 million in land was sold. In January 2001, the company and its affiliate sold one property for $6.5 million. These sales resulted in a total pre-tax gain of $7.0 million. -CONTINUED- CarrAmerica Release of February 2, 2001 Page Three In addition, the previously announced sale of the Phoenix portfolio properties is expected to close in the first quarter at a purchase price of $97.9 million and three land parcels are under contract to be sold at a purchase price of $5.3 million. The Company anticipates the proceeds from the sale of these assets to be used to repay amounts outstanding on the Company's line of credit, to fund future development project costs and for other general corporate purposes. There can be no assurance that any pending disposition will occur on such terms or at all. Balance Sheet Repositioning - --------------------------- In the fourth quarter, CarrAmerica and its affiliates repaid $33.3 million in maturing mortgage debt. The Company has improved its fixed charge coverage ratio, including capitalized interest, from 2.0 times for the three months ended December 31, 1999 to 2.3 times for the three months ended December 31, 2000. In addition, the Company's leverage ratio, as measured by total debt to total market capitalization, improved from 44.7% to 31.4% during this same period. CarrAmerica Stock Repurchase Plan Expanded - ------------------------------------------ CarrAmerica has purchased approximately $113.0 million of its common stock to date under the previously announced $150.0 million share repurchase program. The average price per share has been $28.71. CarrAmerica also announced that its Board of Directors has authorized an expansion of the existing share repurchase program of up to an additional $75.0 million of its outstanding shares. These additional shares will be purchased under the same terms and conditions as its current program. CarrAmerica Announces Fourth Quarter Dividend - --------------------------------------------- The Board of Directors of CarrAmerica yesterday declared a fourth quarter dividend for its common stock and its Series A Cumulative Convertible Redeemable preferred stock of $0.4625 per share. The dividends will be payable to common and Series A preferred shareholders of record as of the close of business on February 16, 2001. CarrAmerica's common stock will begin trading ex-dividend February 14, 2001, and the dividends payable to common shareholders will be paid on March 2, 2001. Dividends payable to Series A preferred shareholders will be paid on March 2, 2001. The Company also declared a regular dividend for its Series B, Series C, and Series D preferred stock. The Series B Cumulative Redeemable preferred stock dividend was declared to be $0.5356 per share, the Series C Cumulative Redeemable preferred stock dividend was declared to be $0.5344 per share, and the Series D Cumulative Redeemable preferred stock dividend was declared to be $0.5281 per share. The Series B, Series C and Series D preferred stock dividends are payable to shareholders of record as of the close of business on February 16, 2001. Such preferred stock will begin trading ex-dividend on February 14, 2001 and the dividends will be paid on February 28, 2001. -CONTINUED- CarrAmerica Release of February 2, 2001 Page Four CarrAmerica Fourth Quarter Webcast and Conference Call - ------------------------------------------------------ CarrAmerica will conduct a conference call to discuss 2000 fourth quarter operations on Monday, February 5, 2001, at 11:00 am ET. A live webcast of the call will be available through a link at CarrAmerica's web site, www.carramerica.com. The phone number for the conference call is 1-800-982-3654; - ------------------- for local Washington, D.C. area and international participants, 703-871-3021, and 06-022-1179 for Netherlands participants. The call is open to all interested persons. A taped replay of the conference call can be accessed immediately after the call through February 12, 2001, by dialing 1-888-266-2081 or 703-925-2533 for local Washington, D.C. area and international participants (access code 4884536 for all callers). A copy of supplemental material on the Company's fourth quarter operations is available on the Company's web site, www.carramerica.com, and is being filed ------------------- on Form 8-K with the Securities and Exchange Commission. A copy is also available on request from: Stephen Walsh CarrAmerica Realty Corporation 1850 K Street, NW, Suite 500 Washington, D.C. 20006 (Telephone) 202-729-1764 (e-mail) swalsh@carramerica.com ---------------------- CarrAmerica owns, develops and operates office properties in 13 markets throughout the United States. The Company is committed to becoming America's leading office workplace company by meeting the rapidly changing needs of its customers with superior service, a large portfolio of quality office properties, extraordinary development capabilities and land positions. CarrAmerica is a leading office innovator with interests in and strategic relationships with: HQ Global Workplaces, a global leader in executive office suites; Broadband Office, Inc., a leading global provider of network-based applications and communications, Internet and e-business solutions; e'ssention, the engine behind InfoCentre, a web-based operations and issues management platform and DukeSolutions, a Duke Energy subsidiary providing comprehensive energy management programs. Currently, CarrAmerica and its affiliates own, directly or through joint ventures, interests in a portfolio of 283 operating office properties and have 13 office buildings under development in eight key growth markets. CarrAmerica's markets include Atlanta, Austin, Chicago, Dallas, Denver, Los Angeles/Orange County, Phoenix, Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle and metropolitan Washington, D.C. For additional information on CarrAmerica, including space availability, visit our web site at www.carramerica.com. -CONTINUED- CarrAmerica Release of February 2, 2001 Page Five Certain statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such factors include, among others, the following: national and local economic, business and real estate conditions that will, among other things, affect demand for office properties, availability and creditworthiness of tenants, the level of lease rents and the availability of financing for both tenants and the Company, adverse changes in the real estate markets including, among other things, competition with other companies, risks of real estate acquisition and development (including the failure of pending acquisitions to close and pending developments to be completed on time and within budget), actions, strategies and performance of affiliates or joint ventures that the Company may not control, governmental actions and initiatives, and environmental/safety requirements. -CONTINUED- CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets - -------------------------------------------------------------------------------- (In thousands)
December 31, December 31, 2000 1999 ------------------- -------------------- Assets - ------ Rental Property: Land $ 644,326 $ 674,390 Buildings 1,836,214 2,082,533 Tenant Improvements 325,936 304,983 Furniture, fixtures and equipment 6,844 5,916 ------------------- -------------------- 2,813,320 3,067,822 Less - accumulated depreciation (381,260) (323,455) ------------------- -------------------- Net rental property 2,432,060 2,744,367 Land held for future development and sale 47,984 104,050 Construction-in-progress 48,300 116,013 Cash and cash equivalents - unrestricted 24,704 51,886 Cash and cash equivalents - restricted 39,482 12,475 Accounts and notes receivable 70,693 34,734 Investments 269,193 67,143 Accrued straight-line rents 54,960 47,764 Tenant leasing costs, net 54,522 58,848 Deferred financing costs, net 11,311 15,621 Prepaid expenses and other assets, net 19,632 18,503 Net assets of discontinued operations - 207,668 ------------------- -------------------- $ 3,072,841 $ 3,479,072 =================== ==================== Liabilities and Stockholders' Equity - ------------------------------------ Liabilities: Mortgages and notes payable $ 1,211,158 $ 1,603,371 Accounts payable and accrued expenses 96,147 68,643 Rent received in advance and security deposits 29,143 27,757 ------------------- -------------------- 1,336,448 1,699,771 ------------------- -------------------- Minority interest 89,687 92,586 Stockholders' equity: Preferred stock 93 95 Common stock 650 668 Additional paid in capital 1,755,985 1,816,990 Cumulative dividends in excess of net income (110,022) (131,038) ------------------- -------------------- 1,646,706 1,686,715 ------------------- -------------------- $ 3,072,841 $ 3,479,072 =================== ====================
CarrAMERICA Realty Corporation and Subsidiaries Consolidated Statements of Operations - -------------------------------------------------------------------------------- (In thousands, except per share amounts)
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------ ---------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Revenues: Rental income (1): Minimum base rent $ 106,583 $ 110,506 $ 448,068 $ 422,440 Recoveries from tenants 14,616 15,925 64,344 58,426 Parking and other tenant charges 3,218 3,411 19,447 17,983 ------------- --------------- ------------- -------------- Total rental revenue 124,417 129,842 531,859 498,849 ------------- --------------- ------------- -------------- Real estate service income 8,252 4,005 26,172 17,054 ------------- --------------- ------------- -------------- Total operating revenues 132,669 133,847 558,031 515,903 ------------- --------------- ------------- -------------- Operating expenses: Property expenses: Operating expenses 30,157 31,701 124,119 122,676 Real estate taxes 11,318 10,779 45,864 44,529 Interest expense 21,571 24,465 98,348 89,057 General and administrative 12,134 10,008 46,189 38,894 Depreciation and amortization 29,376 31,433 128,542 119,700 ------------- --------------- ------------- -------------- Total operating expenses 104,556 108,386 443,062 414,856 ------------- --------------- ------------- -------------- Real estate operating income 28,113 25,461 114,969 101,047 Other operating income: Interest income 2,020 1,075 4,372 3,936 Equity in earnings of unconsolidated entities 2,685 1,376 7,596 5,167 Gain on settlement of treasury locks - - - 4,489 ------------- --------------- ------------- -------------- Total other operating income 4,705 2,451 11,968 13,592 ------------- --------------- ------------- -------------- Income from continuing operations before gain on sale of assets, income taxes, and minority interest 32,818 27,912 126,937 114,639 Income taxes - (783) - (783) Minority interest (6,994) (2,995) (16,149) (17,599) ------------- --------------- ------------- -------------- Income from continuing operations before gain on sale of assets 25,824 24,134 110,788 96,257 Discontinued operations - (Loss) income from operations of discontinued Executive Suites subsidiary (less applicable income tax expense) - (1,891) 456 (7,862) Discontinued operations - Gain on sale of discontinued operations (less applicable income tax expense of $21,131) - - 31,852 - ------------- --------------- ------------- -------------- Net income before gain on sale of assets: 25,824 22,243 143,096 88,395 Gain on sale of assets and other provisions net of income taxes 8,448 5,006 36,371 54,822 ------------- --------------- ------------- -------------- Net income $ 34,272 $ 27,249 $ 179,467 $ 143,217 ============= =============== ============= ============== Basic net income per common share: Net income from continuing operations $ 0.26 $ 0.23 $ 1.14 $ 0.90 Discontinued operations - (0.03) 0.01 (0.12) Gain on sale of discontinued operations - - 0.48 - Gain on sale of assets, net 0.13 0.08 0.55 0.81 ------------- --------------- ------------- -------------- Net income $ 0.39 $ 0.28 $ 2.18 $ 1.59 ------------- --------------- ------------- -------------- Diluted net income per share: Net income from continuing operations $ 0.25 $ 0.23 $ 1.12 $ 0.90 Discontinued operations - (0.03) 0.01 (0.12) Gain on sale of discontinued operations - - 0.47 - Gain on sale of assets, net 0.13 0.08 0.53 0.81 ------------- --------------- ------------- -------------- Net income $ 0.38 $ 0.28 $ 2.13 $ 1.59 ============= =============== ============= ==============
NOTE: (1) Rental income includes $3,844 and $4,969 of accrued straight-line rents for the three month periods ended December 31, 2000 and 1999, respectively, and $13,478 and $14,331 of accrued straight-line rents for the twelve month periods ended December 31, 2000 and 1999, respectively. CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES Consolidated Funds From Operations - -------------------------------------------------------------------------------- The National Association of Real Estate Investment Trusts (NAREIT) defines funds from operations ("FFO") as net income (loss) (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from debt restructuring or sales of property, plus depreciation and amortization of assets uniquely significant to the real estate industry and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. NAREIT's definition for FFO excludes discontinued operations, however, the Company has elected to calculate FFO from discontinued operations, the Company's executive suites business. FFO for discontinued operations includes executive suites earnings before depreciation, amortization and deferred taxes ("EBDADT"). The Company has restated the prior year to conform with the current year presentation which excludes the add back of development losses associated with the Company's executive suites business. The Company continues to exclude the gain on settlement of treasury locks for the restated 1999 FFO.
(In thousands, except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------ -------------------------- 2000 1999 2000 1999 ---- ---- ---- ---- Net income from continuing operations before minority interest: $ 41,266 $ 32,135 $ 163,308 $ 168,678 Adjustments to derive funds from continuing operations: 31,300 30,913 128,861 117,829 Add: Depreciation and amortization Deduct: Minority interests' (non Unitholders) share of depreciation, amortization and net income (362) (206) (1,084) (609) Gain loss on settlement of treasury locks - - - (4,489) Gain on sale of assets, net of income taxes (8,448) (5,006) (36,371) (54,822) ----------- ----------- ------------ ----------- FFO from continuing operations before allocations to the minority 63,756 57,836 254,714 226,587 Unitholders Less: FFO allocable to the minority Unitholders (4,112) (3,983) (16,342) (16,545) ----------- ----------- ------------ ----------- CarrAmerica Realty Corporation's FFO from continuing operations 59,644 53,853 238,372 210,042 Less: Preferred stock dividends (8,842) (8,932) (35,206) (35,448) ----------- ----------- ------------ ----------- CarrAmerica Realty Corporation's FFO from continuing operations attributable to common shares 50,802 44,921 203,166 174,594 Discontinued operations - 6,307 13,368 23,759 Gain on sale of discontinued operations - - 31,852 - ----------- ----------- ------------ ----------- CarrAmerica Realty Corporation's FFO attributable to common shares $ 50,802 $ 51,228 $ 248,386 $ 198,353 =========== =========== ============ =========== Weighted average common shares outstanding: Basic 65,152 66,818 66,221 67,858 Diluted 73,432 74,101 74,425 75,160 Basic funds from operations per common share: Funds from continuing operations $ 0.78 $ 0.67 $ 3.07 $ 2.57 Funds from discontinued operations - 0.09 0.20 0.35 Funds from sale of discontinued operations - - 0.48 - ----------- ----------- ------------ ----------- Total funds from operations $ 0.78 $ 0.76 $ 3.75 $ 2.92 =========== =========== ============ =========== Diluted funds from operations per share: Funds from continuing operations $ 0.75 $ 0.66 $ 2.96 $ 2.56 Funds from discontinued operations - 0.09 0.18 0.32 Funds from sale of discontinued operations - - 0.43 - ----------- ----------- ------------ ----------- Total funds from operations $ 0.75 $ 0.75 $ 3.57 $ 2.88 =========== =========== ============ =========== CarrAmerica Realty Corporation FFO from continuing operations attributable to common shares $ 50,802 $ 44,921 $ 203,166 $ 174,594 Series A Preferred share dividends 224 315 922 1,258 Minority interest from convertible partnership units 4,112 3,983 16,342 16,545 ----------- ----------- ------------ ----------- Adjusted FFO from continuing operations attributable to common shares $ 55,138 $ 49,219 $ 220,430 $ 192,397 =========== =========== ============ =========== Weighted average common shares outstanding - Basic 65,152 66,818 66,221 67,858 Weighted average conversion of Series A Preferred shares 480 680 495 680 Weighted average conversion of operating partnership units 6,118 6,498 6,281 6,498 Incremental options 1,682 105 1,428 124 ----------- ----------- ------------ ----------- Adjusted weighted average common shares - Diluted 73,432 74,101 74,425 75,160 =========== =========== ============ ===========
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