-----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, SYnQZceUyZqJugOE9uMgI9F9TvuToW97hiTi8lxnFpVbg7hXASCHv4Q89ROhxfGF aS1ONGQFPDzRzH/HLXuTyA== 0000910079-99-000006.txt : 19990512 0000910079-99-000006.hdr.sgml : 19990512 ACCESSION NUMBER: 0000910079-99-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990331 ITEM INFORMATION: FILED AS OF DATE: 19990511 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BEDFORD PROPERTY INVESTORS INC/MD CENTRAL INDEX KEY: 0000910079 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 680306514 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-12222 FILM NUMBER: 99617239 BUSINESS ADDRESS: STREET 1: 270 LAFAYETTE CIRCLE STREET 2: P. O. BOX 1058 CITY: LAFAYETTE STATE: CA ZIP: 94549 BUSINESS PHONE: 510-283-89 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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): May 11, 1999 BEDFORD PROPERTY INVESTORS, INC. (Exact name of Registrant as specified in its charter) Maryland 1-12222 68-0306514 (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification No.) incorporation) 270 Lafayette Circle, Lafayette, California 94549 (Address of principal executive offices) Registrant telephone number, including area code: (925) 283-8910 Item 5. Other Events On January 29, 1998, Bedford Property Investors, Inc. (the Company) acquired the Didde Building, a 20,168 square foot office building located in Overland Park, Kansas from the Didde Corporation for $2,120,000. On February 12, 1998, the Company acquired the Cabrillo Executive Center, a 60,321 square foot office building located in Phoenix, Arizona from Montrose 270 LP for $6,000,000. On February 19, 1998, the Company acquired the Parkpoint Business Center, a five building 67,869 square foot office/flex complex located in Santa Rosa, California from AB REO IV, LLC for $6,350,000. On March 30, 1998, the Company acquired 5502 Oberlin Drive, a 20,771 square foot R&D building located in San Diego, California from PCG Sorrento Mesa, LLP, for $2,150,000. On March 31, 1998, the Company acquired the Cimarron Business Park, a five building 94,800 square foot light industrial complex located in Scottsdale, Arizona from PMRA III, a Group Trust for $6,150,000. On May 27, 1998, the Company acquired the Texaco Building, an 11 story 237,055 square foot class "A" office building located in Denver, Colorado, from Dentex Associates for $34,750,000. On June 19, 1998, the Company acquired 6960 Flanders Drive, a 33,144 square foot R&D/office building located in San Diego, California from The Geo Group LP for $3,400,000. On June 19, 1998, the Company acquired the Austin Service Center, a 159,598 square foot five building service flex located in Austin, Texas from Mercantile Bank N.A. for $11,000,000. On July 7, 1998, the Company acquired Rio Salado Corporate Centre a 78,389 square foot office building along with an adjacent 3 acre vacant parcel located in Tempe, Arizona from Wells Fargo Bank for $5,075,000. On July 14, 1998, the Company acquired 3880 Cypress Drive a 35,100 square foot office building located in Petaluma, California from White Phonic Associates for $5,380,000. On July 14, 1998, the Company acquired 2180 and 2190 S. McDowell Boulevard for a total of 75,802 square feet of R&D/industrial space located in Petaluma, California from Oakmead 26 and 27 for $6,540,000. On August 20, 1998, the Company acquired 10232 S. 51st Street, a 39,280 square foot R&D building in Phoenix, Arizona from Calsonic North America, Inc. for $2,232,500. On November 24, 1998, the Company acquired the Expressway Corporate Center, a ten building, 79,331 square foot, service/flex complex, in Tempe Arizona from The Fidelity Mutual Life Insurance Company, for $4,570,000. In addition, during fiscal 1998, the Company acquired development properties and land held for future development for a total of $49,490,000. The acquisitions in 1998 were financed with borrowing from the Company's credit facility with Bank of America. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits: A. Financial Statements The Historical Summary of Gross Income and Direct Operating Expenses of Cabrillo Executive Center for the year ended December 31, 1997 (see Attachment A). The Historical Summary of Gross Income and Direct Operating Expenses of Parkpoint Business Center for the year ended December 31, 1997 (see Attachment B). The Historical Summary of Gross Income and Direct Operating Expenses of Cimarron Business Park for the year ended December 31, 1997 (see Attachment C). The Historical Summary of Gross Income and Direct Operating Expenses of The Texaco Building for the year ended December 31, 1997 (see Attachment D). B. Pro forma Financial Information The pro forma consolidated income statement for the year ended December 31, 1998, showing the effect of the acquisitions of Didde Building, Cabrillo Executive Center, Parkpoint Business Center, 5502 Oberlin Drive, Cimarron Business Park, The Texaco Building, 6960 Flanders Drive, Austin Service Center, Rio Salado Corporate Centre, 3880 Cypress Drive, 2180 S. McDowell Boulevard, 2190 S. McDowell Boulevard, 10232 S. 51st Street and Expressway Corporate Center (see Attachment E). C. Exhibit 23.1 Consent of KPMG LLP SIGNATURE 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, hereunto duly authorized. BEDFORD PROPERTY INVESTORS, INC. By: /s/ Hanh Kihara Hanh Kihara Senior Vice President and Chief Financial Officer Date: May 11, 1999 Attachment A Cabrillo Executive Center HISTORICAL SUMMARY OF GROSS INCOME AND DIRECT OPERATING EXPENSES For the Year Ended December 31, 1997 CONTENTS Independent Auditors' Report 1 Historical Summary of Gross Income and Direct Operating Expenses 2 Notes to Historical Summary of Gross Income and Direct Operating Expenses 2-3 Independent Auditors' Report The Board of Directors Bedford Property Investors, Inc.: We have audited the accompanying historical summary of gross income and direct operating expenses (the Summary) of Cabrillo Executive Center (the Property) for the year ended December 31, 1997. The Summary is the responsibility of management. Our responsibility is to express an opinion on the Summary based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Summary presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Summary was prepared to comply with the rules and regulations of the Securities and Exchange Commission and excludes certain expenses, described in note A, that would not be comparable to those resulting from the proposed future operations of the Property. It is not intended to be a complete presentation of the Property's revenues and expenses. In our opinion, the Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses, exclusive of expenses described in note A, of the Property for the year ended December 31, 1997, in conformity with generally accepted accounting principles. KPMG LLP San Francisco, California April 30, 1999 Cabrillo Executive Center Historical Summary of Gross Income and Direct Operating Expenses Year Ended December 31, 1997 Gross income: Rental income $ 739,412 Common area reimbursement 109,988 Other 59,226 908,626 Direct operating expenses: Real property tax 107,924 Utilities, repairs and maintenance 254,878 Insurance 5,615 Administrative 32,875 401,292 Operating income $ 507,334 Notes to Historical Summary of Gross Income and Direct Operating Expenses A. Property and Basis of Accounting The historical summary of gross income and direct operating expenses has been prepared in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission and relates to the operations of Cabrillo Executive Center (the Property). In accordance with Rule 3-14, direct operating expenses are presented exclusive of depreciation, interest, management fees and income taxes as these expenses would not be comparable to the proposed future operations of the Property. In addition, direct operating expenses do not include any adjustments for real property tax reassessments which may be made after transfer of ownership. Rental income of the Property is recognized on a straight line basis over the term of the related leases. For the year ended December 31, 1997, rental income on a straight-line basis exceeded contractual income by $34,320. B. Leases Minimum future rents of the Property as of December 31, 1997 are as follows (in thousands): 1998 $ 907 1999 949 2000 546 2001 337 2002 62 $2,801 The minimum future rents shown above do not include tenants' obligations for reimbursement of operating expenses, insurance and real estate taxes. C. Estimated Taxable Operating Results and Cash to be Made Available by Operations (unaudited) Pro forma cash available from operations and pro forma taxable income for 1997 are shown below. Pro forma taxable operating results are derived by deducting depreciation over 39 years; however, as a Real Estate Investment Trust (REIT), Bedford Property Investors, Inc. is not subject to federal income tax if it qualifies under the Internal Revenue Code REIT provisions. Bedford Property Investors, Inc. intends to pay dividends in amounts that exceed 95% of taxable income requirements. Dividends paid to the REIT shareholders are classified as return of capital, dividend income or capital gains. Revenues (1) $874,306 Operating expenses 401,292 Pro forma cash available from operations 473,014 Depreciation expense 143,945 Pro forma taxable income $329,069 (1) Excludes $34,320 which represents the excess of aggregate straight-line rents over rental income on a contractual basis. Attachment B Parkpoint Business Center HISTORICAL SUMMARY OF GROSS INCOME AND DIRECT OPERATING EXPENSES For the Year Ended December 31, 1997 CONTENTS Independent Auditors' Report 1 Historical Summary of Gross Income and Direct Operating Expenses 2 Notes to Historical Summary of Gross Income and Direct Operating Expenses 2-3 Independent Auditors' Report The Board of Directors Bedford Property Investors, Inc.: We have audited the accompanying combined historical summary of gross income and direct operating expenses (the Summary) of Parkpoint Business Center (the Property) for the year ended December 31, 1997. The Summary is the responsibility of management. Our responsibility is to express an opinion on the Summary based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Summary presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Summary was prepared to comply with the rules and regulations of the Securities and Exchange Commission and excludes certain expenses, described in note A, that would not be comparable to those resulting from the proposed future operations of the Property. It is not intended to be a complete presentation of the Property's revenues and expenses. In our opinion, the Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses, exclusive of expenses described in note A, of the Property for the year ended December 31, 1997, in conformity with generally accepted accounting principles. KPMG LLP San Francisco, California April 30, 1999 Parkpoint Business Center Historical Summary of Gross Income and Direct Operating Expenses Year Ended December 31, 1997 Gross income: Rental income $ 640,812 Common area reimbursement 23,519 664,331 Direct operating expenses: Real property tax 52,342 Utilities, repairs and maintenance 255,633 Insurance 12,079 Administrative 451 320,505 Operating income $ 343,826 Notes to Historical Summary of Gross Income and Direct Operating Expenses A. Property and Basis of Accounting The historical summary of gross income and direct operating expenses has been prepared in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission and relates to the operations of Parkpoint Business Center (the Property). In accordance with Rule 3-14, direct operating expenses are presented exclusive of depreciation, interest, management fees and income taxes as these expenses would not be comparable to the proposed future operations of the Property. In addition, direct operating expenses do not include any adjustments for real property tax reassessments which may be made after transfer of ownership. Rental income of the Property is recognized on a straight line basis over the term of the related leases. For the year ended December 31, 1997, rental income on a straight-line basis exceeded contractual income by $27,474. B. Leases Minimum future rents of the Property as of December 31, 1997 are as follows (in thousands): 1998 $ 679 1999 644 2000 486 2001 321 2002 112 $2,242 The minimum future rents shown above do not include tenants' obligations for reimbursement of operating expenses, insurance and real estate taxes. C. Estimated Taxable Operating Results and Cash to be Made Available by Operations (unaudited) Pro forma cash available from operations and pro forma taxable income for 1997 are shown below. Pro forma taxable operating results are derived by deducting depreciation over 39 years; however, as a Real Estate Investment Trust (REIT), Bedford Property Investors, Inc. is not subject to federal income tax if it qualifies under the Internal Revenue Code REIT provisions. Bedford Property Investors, Inc. intends to pay dividends in amounts that exceed 95% of taxable income requirements. Dividends paid to the REIT shareholders are classified as return of capital, dividend income or capital gains. Revenues (1) $636,857 Operating expenses 320,505 Pro forma cash available from operations 316,352 Depreciation expense 114,708 Pro forma taxable income $201,644 (1) Excludes $27,474 which represents the excess of aggregate straight-line rents over rental income on a contractual basis. Attachment C Cimarron Business Park HISTORICAL SUMMARY OF GROSS INCOME AND DIRECT OPERATING EXPENSES For the Year Ended December 31, 1997 CONTENTS Independent Auditors' Report 1 Historical Summary of Gross Income and Direct Operating Expenses 2 Notes to Historical Summary of Gross Income and Direct Operating Expenses 2-3 Independent Auditors' Report The Board of Directors Bedford Property Investors, Inc.: We have audited the accompanying historical summary of gross income and direct operating expenses (the Summary) of Cimarron Business Park (the Property) for the year ended December 31, 1997. The Summary is the responsibility of management. Our responsibility is to express an opinion on the Summary based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Summary presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Summary was prepared to comply with the rules and regulations of the Securities and Exchange Commission and excludes certain expenses, described in note A, that would not be comparable to those resulting from the proposed future operations of the Property. It is not intended to be a complete presentation of the Property's revenues and expenses. In our opinion, the Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses, exclusive of expenses described in note A, of the Property for the year ended December 31, 1997, in conformity with generally accepted accounting principles. KPMG LLP San Francisco, California April 30, 1999 Cimarron Business Park Historical Summary of Gross Income and Direct Operating Expenses Year Ended December 31, 1997 Gross income: Rental income $ 689,710 Common area reimbursement 54,921 Other 2,104 746,735 Direct operating expenses: Real property tax 91,323 Utilities, repairs and maintenance 78,409 Insurance 7,909 Administrative 24,004 201,645 Operating income $ 545,090 Notes to Historical Summary of Gross Income and Direct Operating Expenses A. Property and Basis of Accounting The historical summary of gross income and direct operating expenses has been prepared in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission and relates to the operations of Cimarron Business Park (the Property). In accordance with Rule 3-14, direct operating expenses are presented exclusive of depreciation, interest, management fees and income taxes as these expenses would not be comparable to the proposed future operations of the Property. In addition, direct operating expenses do not include any adjustments for real property tax reassessments which may be made after transfer of ownership. Rental income of the Property is recognized on a straight line basis over the term of the related leases. For the year ended December 31, 1997, rental income on a straight-line basis exceeded contractual income by $16,355. B. Leases Minimum future rents of the Property as of December 31, 1997 are as follows (in thousands): 1998 $ 710 1999 490 2000 281 2001 152 2002 158 Thereafter 206 $ 1,997 The minimum future rents shown above do not include tenants' obligations for reimbursement of operating expenses, insurance and real estate taxes. C. Estimated Taxable Operating Results and Cash to be Made Available by Operations (unaudited) Pro forma cash available from operations and pro forma taxable income for 1997 are shown below. Pro forma taxable operating results are derived by deducting depreciation over 39 years; however, as a Real Estate Investment Trust (REIT), Bedford Property Investors, Inc. is not subject to federal income tax if it qualifies under the Internal Revenue Code REIT provisions. Bedford Property Investors, Inc. intends to pay dividends in amounts that exceed 95% of taxable income requirements. Dividends paid to the REIT shareholders are classified as return of capital, dividend income or capital gains. Revenues (1) $730,380 Operating expenses 201,645 Pro forma cash available from operations 528,735 Depreciation expense 114,642 Pro forma taxable income $414,093 (1) Excludes $16,355 which represents the excess of aggregate straight-line rents over rental income on a contractual basis. Attachment D The Texaco Building HISTORICAL SUMMARY OF GROSS INCOME AND DIRECT OPERATING EXPENSES For the Year Ended December 31, 1997 CONTENTS Independent Auditors' Report 1 Historical Summary of Gross Income and Direct Operating Expenses 2 Notes to Historical Summary of Gross Income and Direct Operating Expenses 2-3 Independent Auditors' Report The Board of Directors Bedford Property Investors, Inc.: We have audited the accompanying historical summary of gross income and direct operating expenses (the Summary) of the Texaco Building (the Property) for the year ended December 31, 1997. The Summary is the responsibility of management. Our responsibility is to express an opinion on the Summary based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Summary is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Summary. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Summary presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying Summary was prepared to comply with the rules and regulations of the Securities and Exchange Commission and excludes certain expenses, described in note A, that would not be comparable to those resulting from the proposed future operations of the Property. It is not intended to be a complete presentation of the Property's revenues and expenses. In our opinion, the Summary referred to above presents fairly, in all material respects, the gross income and direct operating expenses, exclusive of expenses described in note A, of the Property for the year ended December 31, 1997, in conformity with generally accepted accounting principles. KPMG LLP San Francisco, California April 30, 1999 The Texaco Building Historical Summary of Gross Income and Direct Operating Expenses Year Ended December 31, 1997 Gross income: Rental income $ 4,517,083 Common area reimbursement 131,355 Other 177,355 4,825,793 Direct operating expenses: Real property tax 494,224 Utilities, repairs and maintenance 941,976 Insurance 30,655 Administrative 190,632 1,657,487 Operating income $3,168,306 Notes to Historical Summary of Gross Income and Direct Operating Expenses A. Property and Basis of Accounting The historical summary of gross income and direct operating expenses has been prepared in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission and relates to the operations of the Texaco Building (the Property). In accordance with Rule 3-14, direct operating expenses are presented exclusive of depreciation, interest, management fees and income taxes as these expenses would not be comparable to the proposed future operations of the Property. In addition, direct operating expenses do not include any adjustments for real property tax reassessments which may be made after transfer of ownership. Rental income of the Property is recognized on a straight line basis over the term of the related leases. For the year ended December 31, 1997, rental income on a straight-line basis exceeded contractual income by $238,240. B. Leases Minimum future rents of the Property as of December 31, 1997 are as follows (in thousands): 1998 $ 4,279 1999 4,279 2000 4,715 2001 4,755 2002 4,755 Thereafter 9,907 $32,690 The minimum future rents shown above do not include tenant obligations for reimbursement of operating expenses, insurance and real estate taxes. C. Estimated Taxable Operating Results and Cash to be Made Available by Operations (unaudited) Pro forma cash available from operations and pro forma taxable income for 1997 are shown below. Pro forma taxable operating results are derived by deducting depreciation of 39 years; however, as a Real Estate Investment Trust (REIT), Bedford Property Investors, Inc. is not subject to federal income tax if it qualifies under the Internal Revenue Code REIT provisions. Bedford Property Investors, Inc. intends to pay dividends in amounts that exceed 95% of taxable income requirements. Dividends paid to the REIT shareholders are classified as return of capital, dividend income or capital gains. Revenues (1) $4,587,553 Operating expenses 1,657,487 Pro forma cash available from operations 2,930,066 Depreciation expense 811,050 Pro forma taxable income $2,119,016 (1) Excludes $238,240 which represents the excess of straight-line rents over rental income on a contractual basis. Attachment E BEDFORD PROPERTY INVESTORS, INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1998 (Unaudited) (in thousands, except share and per share amounts) Consolidated Properties Pro Forma Pro Forma Historical Acquired (1) Adjustments Consolidated Property operations: Rental income $73,451 $ 4,534 - $77,985 Rental expenses: Operating expenses 11,026 716 - 11,742 Real estate taxes 6,220 488 - 6,708 Depreciation and amortization 10,265 572 - 10,837 Income from property operations 45,940 2,758 - 48,698 General and administrative expenses (3,386) - - (3,386) Interest income 223 - - 223 Interest expense (11,164) - (4,627) (2) (15,791) Income before minority interest and gain on sale 31,613 2,758 (4,627) 29,744 Minority interest (117) - - (117) Net income $31,496 $ 2,758 $(4,627) $29,627 Earnings per share - basic $ 1.39 $ 1.31 Weighted average number of shares - basic 22,634,656 22,634,656 Earnings per share - assuming dilution $ 1.38 $ 1.30 Weighted average number of shares - assuming dilution 22,929,807 22,929,807
See accompanying notes to pro forma financial statements. BEDFORD PROPERTY INVESTORS, INC. NOTES TO PRO FORMA FINANCIAL STATEMENTS PRO FORMA CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1998 (1) The unaudited pro forma consolidated statement of income reflects the property acquisitions in 1998 as if they had occurred on January 1, 1998. The Company acquired: (i) Didde building on January 29, 1998, (ii) Cabrillo Executive Center on February 12, 1998, (iii) Parkpoint Business Center on February 19, 1998, (iv) 5502 Oberlin Drive on March 30, 1998, (v) Cimarron Business Park on March 31, 1998, (vi)Texaco Building on May 27, 1998, (vii) 6960 Flanders Drive on June 19, 1998, (viii) The Austin Service Center on June 19, 1998, (ix) Rio Salado Corporate Centre on July 7, 1998, (x) 3880 Cypress Drive and 2180 and 2190 S. McDowell Boulevard on July 14, 1998, (xi) 10232 S. 51st Street on August 20, 1998, (xii) Expressway Corporate Center on November 24, 1998. The combining pro forma statement of income for the period from January 1 through December 31, 1998 for the properties acquired during the year is as follows (in thousands): Parkpoint Subtotal Didde Cabrillo Business 5502 Oberlin Cimarron Texaco carried Building Exec. Ctr. Center Drive Bus. Park Building forward Rental income $31 $111 $135 $57 $217 $1,979 $2,530 Rental expenses: Operating expenses 8 44 35 3 28 446 564 Real estate taxes 4 13 9 4 35 200 265 Depreciation and amortization 3 15 14 7 24 274 337 Income from property operations $16 $ 39 $ 77 $43 $130 $1,059 $1,364
Subtotal 6960 Austin Rio Salado Subtotal Brought Flanders Austin Rutland Austin Corp. carried Forward Drive Braker 2 10 Southpark Center forward Rental income $2,530 $180 $146 $205 $359 $ - $3,420 Rental expenses: Operating expenses 564 5 15 19 34 3 640 Real estate taxes 265 17 16 26 50 - 374 Depreciation and amortization 337 25 18 28 49 - 457 Income from property operations $1,364 $133 $ 97 $132 $226 $ (3) $1,949
Total Properties Subtotal 3880 2180 S. 2190 S. Expressway Acquired Brought Cypress McDowell McDowell 10232 S. Corporate Jan. 1 through Forward Drive Blvd. Blvd. 51st St. Center Dec. 31, 1998 Rental income $3,420 $298 $239 $170 $ - $407 $4,534 Rental expenses: Operating expenses 640 18 22 12 1 23 716 Real estate taxes 374 21 17 13 - 63 488 Depreciation and amortization 457 47 38 29 - 1 572 Income from property operations $1,949 $212 $162 $116 $ (1) $320 $2,758
(2) The unaudited pro forma consolidated statement of income reflects the effects of the mortgage loan financing of $20,900,000 as if it had occurred on January 1, 1998. Net proceeds from the mortgage loan financings and borrowings of $76,000,000 on the credit facility were utilized to finance the Company's acquisitions of real estate investments during 1998. The mortgage loan financing from Prudential Insurance Company of America was completed on February 9, 1998. Exhibit 23.1 Consent of Independent Certified Public Accountants The Board of Directors Bedford Property Investors, Inc.: We consent to the incorporation by reference in the registration statements on Form S-3 (No.'s 333-15233, 33-23687, 333-33643, and 333- 33795) and the registration statements on Form S-8 (No.'s 333-52375, 333-18215, 333-70681 and 333-74707) and the related prospectuses of Bedford Property Investors, Inc. of our reports dated April 30, 1999 with respect to the historical summaries of gross income and direct operating expenses of Cabrillo Executive Center, Parkpoint Business Center, Cimarron Business Park and The Texaco Building for the year ended December 31, 1997, which reports appear in the Form 8-K of Bedford Property Investors, Inc. filed on May 11, 1999. Our report on each Summary contains a paragraph that states that the Summary was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission, as described in note A to each Summary. The Summaries are not intended to be a complete presentation of the income and expense of Cabrillo Executive Center, Parkpoint Business Center, Cimarron Business Park and The Texaco Building. KPMG LLP San Francisco, California May 10, 1999 -----END PRIVACY-ENHANCED MESSAGE-----