EX-99 2 ex991.htm FOR FURTHER INFORMATION:

Exhibit 99.1

FOR FURTHER INFORMATION:


Peter B. Bedford

Hanh Kihara

Chairman of the Board and

Chief Financial Officer

Chief Executive Officer

(925) 283-8910




FOR IMMEDIATE RELEASE


BEDFORD PROPERTY INVESTORS

ANNOUNCES FIRST QUARTER 2005 RESULTS



LAFAYETTE, CA – April 18, 2005 – Bedford Property Investors, Inc. (NYSE:BED) today announced its financial results for the first quarter ended March 31, 2005.  Diluted earnings per share of common stock (EPS) for the first quarter of 2005 were $0.43, an increase of 48% compared with diluted EPS of $0.29 achieved for the first quarter of 2004.  Funds from operations (FFO) per share of common stock for the first quarter of 2005 were $0.46, a decrease of 36% when compared with FFO per share of $0.72 achieved for the first quarter of 2004.


Financial Results

Net income available to common stockholders for the first quarter of 2005 increased by approximately $2,150,000 when compared with the first quarter of 2004.  This increase is mainly due to gains of approximately $7,144,000 realized from the sales of operating properties and an increase of approximately $1,888,000 of net operating income from 2004 property acquisitions. These increases are partially offset by the following reductions: approximately $3,477,000 in net operating income resulting from the sales of operating properties in the fourth quarter of 2004 and the first quarter of 2005; approximately $1,736,000 due to reduced occupancy in our portfolio; approximately $1,144,000 due to additional preferred dividends resulting from the issuance of our Series B preferred stock in April 2004; and approximately $555,000 primarily due to increased personnel costs included in general and administrative expenses.


FFO for the first quarter of 2005 was approximately $7,247,000, compared to approximately $11,644,000 for the same period in 2004.  FFO is a non-GAAP financial measurement used by real estate investment trusts to measure and compare operating performance and is generally defined as net income computed in accordance with GAAP, excluding extraordinary items and gains or losses from sales of property, plus depreciation and amortization of assets related to real estate, and after adjustments for unconsolidated partnerships and joint ventures.  A reconciliation of our FFO to our net income available to common stockholders (the most directly comparable GAAP measure) is included in the financial data accompanying this press release.


Property Operations

As of March 31, 2005, our operating portfolio occupancy was 89%, 2% below the December 31, 2004 occupancy and 3% below the March 31, 2004 occupancy.  The average occupancy at our same-store operating properties, which consist of approximately 6.4 million square feet or 91% of the total square footage of our operating portfolio, was 89%.  



04/15/05 3:41 PM




During the first quarter of 2005, we renewed and released 155,633 square feet, or 47%, of the expiring footage of 330,609.  The average change in rental rates (on a cash basis) in these new leases was a decrease of 10.4%.  


The renewed and released rate achieved in the first quarter of 2005 of 47% was down from the renewed and released rate of 74% achieved during the twelve months of 2004.  The decrease resulted from a tenant vacating 189,000 square feet in one of our office buildings in Colorado at the end of January 2005.


Property Acquisitions

In the first quarter of 2005, we purchased one parcel of land of 1.05 acres in Las Vegas, Nevada for approximately $367,000.  The land will be held as a future development site.


Property Dispositions

In the first quarter of 2005, we sold a 109,780 square-foot R & D property in San Diego, California for $15,800,000.  This sale generated a gain of approximately $6,894,000.


In addition, we recorded a gain of $250,000 from funds released from escrow in the first quarter of 2005 in connection with a property sold in the fourth quarter of 2004.


Stock Repurchase

During the first quarter of 2005, we repurchased 30,074 shares of our common stock at the average of the high and low trading prices on the date of the repurchase.  These shares were not repurchased on the open market but from our employees who sold shares in settlement of their payroll taxes upon the vesting of their restricted stock.  Since the inception of our common stock repurchase program in November 1998, we have repurchased a total of 8,515,981 shares of our common stock at an average cost of $19.26 per share, which represents 37.6% of the shares of common stock outstanding at November 30, 1998.


Company Information

We are a self-administered equity real estate investment trust that acquires, develops, owns and operates multi-tenant suburban office and industrial properties.  Currently we own and manage approximately 7.6 million square feet of suburban office and industrial space located in Arizona, California, Colorado, Nevada, Oregon and Washington. As of March 31, 2005, we had 493 tenants.


We are traded on the New York Stock Exchange and the Pacific Exchange under the symbol “BED”, and our website is www.bedfordproperty.com.


Investors, analysts and other interested parties are invited to join our quarterly conference call on Tuesday, April 19, 2005 at 8:00 a.m. PDT.  To participate, callers may dial (877) 407-8291 five minutes beforehand.  Investors also have the opportunity to listen to the conference call live on the Internet, at our website at www.bedfordproperty.com, under Investor Relations – Investor Overview, by clicking on the webcast icon.  A replay of the call is available for one week at (877) 660-6853.  The replay account number is 297 and the replay conference number is 143428.






-Financial Tables Follow-


***






BEDFORD PROPERTY INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2005 AND DECEMBER 31, 2004

(Unaudited; in thousands, except share and per share amounts)

 

 

March 31,

  2005

 

December 31,

   2004(1)

Assets

   
    

Real estate investments:

   

  Industrial buildings

$406,142

 

$417,613

  Office buildings

326,945

 

332,695

  Properties under development

30,780

 

29,716

  Land held for development

13,969

 

13,529

 

777,836

 

793,553

  Less accumulated depreciation

88,708

 

85,436

 

689,128

 

708,117

  Operating properties held for sale, net

17,976

 

8,293

Total real estate investments

707,104

 

716,410

    

Cash and cash equivalents

4,398

 

24,218

Accounts receivable, net

489

 

679

Notes receivable, net

6,513

 

6,820

Other assets

43,532

 

45,356

    

Total assets

$762,036

 

$793,483

    

Liabilities and Stockholders’ Equity

   
    

Bank loan payable

$  30,875

 

$           -

Mortgage loans payable

349,611

 

351,335

Accounts payable and accrued expenses

8,533

 

13,135

Dividends payable

10,409

 

63,898

Other liabilities

13,289

 

14,657

    

    Total liabilities

412,717

 

443,025

    

Stockholders’ equity:

  Preferred stock, $0.01 par value; authorized

    6,795,000 shares; issued none



-

 



-

  Series A 8.75% cumulative redeemable preferred stock,

    $0.01 par value; authorized and issued 805,000 shares at

    March 31, 2005 and December 31, 2004; stated liquidation

    preference of $40,250




38,947

 




38,947

  Series B 7.625% cumulative redeemable preferred stock,

    $0.01 par value; authorized and issued 2,400,000 shares

    at March 31, 2005 and December 31, 2004; stated

    liquidation preference of $60,000




57,769

 




57,769

  Common stock, $0.02 par value; authorized 50,000,000

    shares; issued and outstanding 16,440,409 shares at

    March 31, 2005 and 16,325,584 shares at December 31, 2004



328

 



326

  Additional paid-in capital

292,172

 

289,132

  Deferred stock compensation

(12,773)

 

(10,114)

  Accumulated dividends in excess of net income

(27,199)

 

(25,700)

  Accumulated other comprehensive income

75

 

98

    

    Total stockholders’ equity

349,319

 

350,458

    

Total liabilities and stockholders' equity

$762,036

 

$793,483


(1) The information in this column was derived from the company's audited consolidated balance sheet for the year ended December 31, 2004.






BEDFORD PROPERTY INVESTORS, INC.

CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

(Unaudited; in thousands, except share and per share amounts)


  

Three Months

  

2005

 

2004

Rental income

 

$  23,634

 

$  22,747

Rental expenses:

    

     Operating expenses

 

4,533

 

3,648

     Real estate taxes

 

3,008

 

2,579

     Depreciation and amortization

 

7,412

 

6,120

     General and administrative expenses

 

2,061

 

1,506

Income from operations

 

6,620

 

8,894

     

Other income (expense)

    

     Interest income

 

140

 

19

     Interest expense

 

(5,361)

 

(5,027)

     

Income from continuing operations

 

1,399

 

3,886

     

Discontinued operations:

    

     Income from discontinued operations

 

367

 

1,730

     Gain on sale of operating properties

 

7,144

 

-

     

Income from discontinued operations

 

7,511

 

1,730

     

Net income

 

8,910

 

5,616

Preferred dividends – Series A

 

(880)

 

(880)

Preferred dividends – Series B

 

(1,144)

 

-

     

Net income available to common stockholders

 

$    6,886

 

$    4,736

     

Income per common share – basic:

    

     Income from continuing operations

 

$   (0.04)

 

$      0.19

     Income from discontinued operations

 

0.47

 

0.11

Net income available to common stockholders

 

$      0.43

 

$      0.30

     

Weighted average number of shares – basic

 

15,837,383

 

15,958,868

     

Income per common share – diluted:

    

     Income from continuing operations

 

$   (0.04)

 

$      0.18

     Income from discontinued operations

 

0.47

 

0.11

Net income available to common stockholders

 

$      0.43

 

$      0.29

     

Weighted average number of shares – diluted

 

15,900,293

 

16,273,156








BEDFORD PROPERTY INVESTORS, INC.

CONSOLIDATED FUNDS FROM OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004

 (in thousands, except share and per share amounts)




 

Three Months

 

    2005

 

    2004

    

Net income available to common

  stockholders


$         6,886

 


$         4,736

Adjustments:

   

   Depreciation and amortization:

   

      Continuing operations

7,412

 

6,120

      Discontinued operations

93

 

788

   Gain on sale of operating properties

(7,144)

 

-

    

Funds from Operations (FFO)(1)

$         7,247

 

$       11,644

    

FFO per share – diluted

$           0.46

 

$           0.72

    

Weighted average number

  of shares - diluted


15,900,293

 


16,273,156



(1)

Although FFO is not a financial measure calculated in accordance with accounting principles generally accepted in the United States of America (GAAP), we believe that FFO is an appropriate alternative measure of the performance of an equity real estate investment trust (REIT).  Presentation of this information provides the reader with an additional measure to compare the performance of equity REITs. FFO is generally defined by the National Association of Real Estate Investment Trusts as net income (loss) (computed in accordance with GAAP), excluding extraordinary items such as gains (losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  FFO as set forth in the table above has been computed in accordance with this definition.  FFO does not represent cash generated by operating activities in accordance with GAAP; it is not necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net income (loss) as an indicator of our operating performance or as an alternative to cash flow as a measure of liquidity.  Furthermore, FFO as disclosed by other REITs may not be comparable to our presentation.  The most directly comparable financial measure calculated in accordance with GAAP to FFO is net income available to common stockholders.