-----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, P3h9oQM38sgPsIw+hSlJOCtiHe+IyTav8maXZs6jJPUQ/ySOq3m0+XsJwMq7ginR xnT7bF/aLOEQTKLQeKu60Q== 0000912595-04-000128.txt : 20041104 0000912595-04-000128.hdr.sgml : 20041104 20041104170808 ACCESSION NUMBER: 0000912595-04-000128 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20041104 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041104 DATE AS OF CHANGE: 20041104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MID AMERICA APARTMENT COMMUNITIES INC CENTRAL INDEX KEY: 0000912595 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 621543819 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12762 FILM NUMBER: 041120370 BUSINESS ADDRESS: STREET 1: 6584 POPLAR AVE STREET 2: STE 340 CITY: MEMPHIS STATE: TN ZIP: 38138 BUSINESS PHONE: 9016826600 MAIL ADDRESS: STREET 1: 6584 POPLAR AVE STREET 2: SUITE 340 CITY: MEMPHIS STATE: TN ZIP: 38138 8-K 1 er3q04.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 November 4, 2004 Date of Report (Date of earliest event reported) MID-AMERICA APARTMENT COMMUNITIES, INC. (Exact Name of Registrant as Specified in Charter) TENNESSEE 1-12762 62-1543819 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) 6584 POPLAR AVENUE, SUITE 300 MEMPHIS, TENNEESSEE 38138 (Address of principal executive offices) (901) 682-6600 (Registrant's telephone number, including area code) (Former name or address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 Results of Operations and Financial Condition On November 4, 2004, the Registrant issued an earnings release for the quarter ended September 30, 2004, a copy of which is furnished as Exhibit 99.1 to this Current Report. This release is furnished by the Registrant pursuant to Item 2.02 of Form 8-K and is not to be considered "filed" under the Exchange Act, and shall not be incorporated by reference into any previous or future filing by the Registrant under the Securities Act or the Exchange Act. ITEM 9.01 Financial Statements and Exhibits (c) Exhibits Exhibit Number Description -------- ------------------------------------ 99.1 Press Release dated November 4, 2004 99.2 Supplemental Data Schedules 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. MID-AMERICA APARTMENT COMMUNITIES, INC. Date: November 4, 2004 /s/Simon R.C. Wadsworth Simon R.C. Wadsworth Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) EX-99 2 er3q04x.txt EXHIBIT 99.1 Press Release Dated November 4, 2004 ================================================================================ PRESS RELEASE ================================================================================ FROM: SIMON R.C. WADSWORTH SUBJECT: MID-AMERICA ANNOUNCES THIRD QUARTER RESULTS DATE: NOVEMBER 4, 2004 - -------------------------------------------------------------------------------- Memphis, TN, Mid-America Apartment Communities, Inc. (NYSE: MAA) reported Funds From Operations ("FFO") of $17,135,000 or $0.73 per share/unit for the third quarter ended September 30, 2004. This includes rental revenue of $1,298,000 that reflects the effect of straight-lining of the greater level of lease concessions granted principally in this quarter; excluding this, FFO would have been $15,837,000, or $0.68 per share/unit which is at the upper end of our forecast range. Results also include $0.02 per share/unit of previously announced losses attributable to the Florida hurricanes. This compares to FFO of $8,655,000, or $0.41 per share/unit for the same quarter of a year ago which included a non-cash adjustment of $5,987,000 or $0.28 per share/unit related to the redemption of preferred stock. FFO is the generally accepted measure of operating performance for real estate investment trusts. Reconciliation and discussion of FFO can be found later in this release. The net loss available for common shareholders for the quarter ended September 30, 2004 was $576,000 or $0.03 per common share, as compared to a net loss of $3,062,000 or $0.17 per common share for the same quarter a year ago, which included the charge of $0.28 for redemption of preferred stock and a $0.10 gain on the sale of a property. Highlights for the quarter were: o Average same store physical occupancy at the end of the third quarter was 95.1%, an increase from 94.7 % at the same point in the prior year and 93.3% at the end of the preceding second quarter. o Reflecting the increased physical occupancy, after recording straight-line leasing concessions, same store revenue increased by 1.7% over the same quarter last year, and net operating income increased by 1.5%. o Debt service coverage improved to 2.49 from 2.37 a year ago. o As previously announced, during the fourth quarter the Company sold a property, recording a gain of $5.8 million and its joint venture sold a property on which the Company's share of the gain was $3.2 million. o The Company is in the process of completing the acquisition of three upscale properties totaling 964 apartments located in South Florida, Austin and Houston for a total price of $78.75 million. Eric Bolton, Chairman and CEO said, "We're pleased with the improvement in occupancy achieved during the quarter. This marks the highest quarter-end occupancy performance we've had since the first quarter of 2001. We expect this positive result will lead to continued stable performance in the fourth quarter and into next year. Leasing concessions should decline over the next couple of quarters and with a steady improvement in the job market underway, we anticipate that we will be in a position to recover pricing momentum early next year. There is significant upside to re-capture in this area of revenue performance within our portfolio as a result of maintaining high leasing standards and the physical condition of our properties during the weak market environment of the last two years. Operating expenses remain under tight control with same store property operating expenses up only 0.4% over prior year, excluding the impact of the non-routine expenses incurred in the third quarter as a result of the hurricanes affecting our Florida region. "We expect to be successful in acquiring almost $200 million of high quality assets this year at attractive prices that have further enhanced our portfolio quality and level of investment in major growth markets. We expect to capture additional new growth next year and remain committed to our strict investment disciplines." Simon Wadsworth, Executive Vice-President and CFO said, "Before the impact of straight-line leasing concessions that increased our reported FFO to 73 cents per share/unit, third quarter results were at the top end of our revised guidance issued several weeks ago. As noted at that time, we incurred an estimated $0.02 per share/unit charge to Q3 results as a result of the storm damage incurred at several of our Florida properties. Our balance sheet is strong, and we've reduced interest rate risk by fixing, swapping or forward-swapping over 80% of our debt. Refinancings during the quarter brought our interest rate at the end of September to 5.2%." "The impact of straight-lining $1.298 million of leasing concessions, which is required under generally accepted accounting principles, is to bring rental revenue that we would have recognized in future quarters forward into the third quarter. Therefore we need to adjust our forecast. We expect FFO per share for the fourth quarter to be within a range of $0.75 to $0.78 per share/unit and total for the year to be $2.98 to $3.01. We are also establishing an early estimate of FFO for 2005 of $3.00 to $3.10 per share/unit. Important assumptions are same-store growth rate of NOI in the 2% to 2.5% range, reflecting continued improvement in our markets, and our ability to complete acquisitions on terms similar to this year. We'll discuss these assumptions more fully in our conference call." The company has expanded disclosure, especially on market performance, in supplemental disclosure schedules. These supplemental disclosure schedules can be found in an expanded version of this earnings release on the investors page of our web site at www.maac.net. The company will host a conference call to further discuss third quarter results on Friday, November 5, 2004 at 9:15 AM Central Time. The conference call-in number is 866-238-0637 and the moderator's name is Eric Bolton. MAA is a self-administered, self-managed apartment-only real estate investment trust which currently owns or has ownership interest in 37,224 apartment units throughout the southeast and southcentral U.S. For further details, please refer to our website at www.maac.net or contact Simon R. C. Wadsworth at (901) 682-6668, ext. 105. 6584 Poplar Ave., Suite 300, Memphis, TN 38138. Certain matters in this press release may constitute forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements include, but are not limited to, statements made about anticipated market conditions, anticipated acquisitions, redevelopment opportunities, and property financing. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including a downturn in general economic conditions or the capital markets, competitive factors including overbuilding or other supply/demand imbalances in some or all of our markets, shortage of acceptable property acquisition candidates, the ability to complete planned dispositions, risk of future goodwill or asset impairment, changes in interest rates and other items that are difficult to control, as well as the other general risks inherent in the apartment and real estate businesses. Reference is hereby made to the filings of Mid-America Apartment Communities, Inc., with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K, and its annual report on Form 10-K, particularly including the risk factors contained in the latter filing.
- ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share data) - ---------------------------------------------------------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, ------------------------------ ----------------------------- 2004 2003 2004 2003 ------------- --------------- -------------- ------------- Property revenues $ 67,378 $ 59,117 $ 198,651 $ 172,565 Management and fee income, net 149 215 443 729 Property operating expenses (29,419) (25,746) (83,657) (71,716) Depreciation (17,181) (14,599) (51,061) (41,973) Property management expenses (2,401) (2,217) (7,968) (6,768) General and administrative (1,953) (1,749) (6,839) (5,349) - ---------------------------------------------------------------------------------------------------------------------------- Income from continuing operations before non-operating items 16,573 15,021 49,569 47,488 Interest and other non-property income 155 202 434 662 Interest expense (12,868) (11,426) (37,239) (33,319) Gain (loss) on debt extinguishment 38 101 (179) (104) Amortization of deferred financing costs (436) (461) (1,301) (1,583) Minority interest in operating partnership income (464) (778) (1,418) (1,117) Loss from investments in unconsolidated entities (61) (8) (135) (316) Net gain on insurance and other settlement proceeds 248 2,075 3,104 2,600 - ---------------------------------------------------------------------------------------------------------------------------- Income from continuing operations 3,185 4,726 12,835 14,311 Discontinued operations: Income (loss) from discontinued operations (54) (177) 343 (331) Gain (loss) on sale of discontinued operations - 1,921 - 1,921 - ---------------------------------------------------------------------------------------------------------------------------- Net income 3,131 6,470 13,178 15,901 Preferred dividend distribution (3,707) (3,545) (11,119) (11,395) Premiums and original issuance costs associated with the redemption of preferred stock - (5,987) - (5,987) - ---------------------------------------------------------------------------------------------------------------------------- Net income (loss) available for common shareholders $ (576) $ (3,062) $ 2,059 $ (1,481) ============================================================================================================================ Weighted average common shares - Diluted 20,338 18,302 20,545 17,961 Net income (loss) per share available for common shareholders ($0.03) ($0.17) $0.10 ($0.08)
- ---------------------------------------------------------------------------------------------------------------------------- FUNDS FROM OPERATIONS (in thousands except per share data) - ---------------------------------------------------------------------------------------------------------------------------- Net income $ 3,131 $ 6,470 $ 13,178 $ 15,901 Addback: Depreciation real estate assets 16,830 14,259 50,040 40,944 Subtract: Net gain on insurance and other settlement proceeds 248 2,075 3,104 2,600 Subtract: Net gain on insurance and other settlement proceeds of discontinued operations - - 526 82 Addback: Depreciation real estate assets of discontinued operations 230 228 681 790 Subtract: Gain (loss) on sale of discontinued operations - 1,921 - 1,921 Addback: Depreciation real estate assets of unconsolidated entities 435 448 1,333 1,481 Subtract: Preferred dividend distribution 3,707 3,545 11,119 11,395 Addback: Minority interest in operating partnership income 464 778 1,418 1,117 - ---------------------------------------------------------------------------------------------------------------------------- Funds from operations before premiums and original issuance costs associated with the redemption of preferred stock 17,135 14,642 51,901 44,235 Premiums and original issuance costs associated with the redemption of preferred stock - 5,987 - 5,987 - ---------------------------------------------------------------------------------------------------------------------------- Funds from operations 17,135 8,655 51,901 38,248 Addback: Premiums and original issuance costs associated with the redemption of preferred stock - 5,987 - 5,987 Recurring capex (4,149) (3,374) (10,691) (9,590) - ---------------------------------------------------------------------------------------------------------------------------- Adjusted funds from operations $ 12,986 $ 11,268 $ 41,210 $ 34,645 - ---------------------------------------------------------------------------------------------------------------------------- Weighted average common shares and units - Diluted 23,350 21,324 23,217 20,922 Funds from operations before premiums and original issuance costs associated with the redemption of preferred stock per shares and units - Diluted $ 0.73 $ 0.69 $ 2.24 $ 2.11 Funds from operations per share and unit - Diluted $ 0.73 $ 0.41 $ 2.24 $ 1.83 Adjusted funds from operations per share and unit - Diluted $ 0.56 $ 0.53 $ 1.77 $ 1.66
- -------------------------------------------------------------------------------- NON-GAAP FINANCIAL DEFINITIONS - -------------------------------------------------------------------------------- Funds From Operations (FFO) FFO represents net income (computed in accordance with U.S. generally accepted accounting principles, or GAAP) excluding extraordinary items, minority interest in Operating Partnership income, gain on disposition of real estate assets, plus depreciation of real estate and adjustments for joint ventures to reflect FFO on the same basis. This definition of FFO is in accordance with the National Association of Real Estate Investment Trust's definition. Disposition of real estate assets includes sales of discontinued operations as well as proceeds received from insurance and other settlements from property damage. Our calculation of FFO may differ from the methodology for calculating FFO utilized by other REITs and, accordingly, may not be comparable to such other REITs. FFO should not be considered as an alternative to net income. The Company believes that FFO is helpful in understanding the Company's operating performance in that FFO excludes depreciation expense on real estate assets. The Company believes that GAAP historical cost depreciation of real estate assets is generally not correlated with changes in the value of those assets, whose value does not diminish predictably over time, as historical cost depreciation implies. While the Company has included the amount charged to retire preferred stock in excess of carrying values in its FFO calculation in response to the SEC's Staff Policy Statement relating to EITF Topic D-42 concerning the calculation of earnings per share for the redemption of preferred stock, the Company believes that FFO before amount charged to retire preferred stock in excess of carrying values is also an important measure of operating performance as the amount charged to retire preferred stock in excess of carrying values is a non-cash adjustment representing issuance costs in prior periods for preferred stock. Adjusted Funds From Operations (AFFO) For purposes of these computations, AFFO is composed of FFO less recurring capital expenditures plus the premiums and original issuance costs of preferred stock that was redeemed. As an owner and operator of real estate, we consider AFFO to be an important measure of performance from core operations because AFFO measures our ability to control revenues, expenses and recurring capital expenditures. Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) For purposes of these computations, EBITDA is composed of net income before net gain on discontinued operations and insurance and other settlement proceeds, and gain or loss on debt extinguishment, plus depreciation, interest expense, and amortization of deferred financing costs. EBITDA is a non-GAAP financial measure we use as a performance measure. As an owner and operator of real estate, we consider EBITDA to be an important measure of performance from core operations because EBITDA does not include various income and expense items that are not indicative of our operating performance. EBITDA should not be considered as an alternative to net income as an indicator of financial performance. Our computation of EBITDA may differ from the methodology utilized by other companies to calculate EBITDA. EX-99 3 er3q04x2.txt EXHIBIT 99.2 Supplemental Data Schedules
- ------------------------------------------------------------------------------------------------------------------------ COMMUNITY STATISTICS Dollars in thousands except Average Rental Rate - ------------------------------------------------------------------------------------------------------------------------ Properties are grouped by operational responsibility As of September 30, 2004 ----------------------------------------------------------------------------------- Percent to Average Gross Total of Physical Rental Units Real Assets Gross Assets Occupancy Rate ---------------- -------------- ---------------- --------------- -------------- Atlanta 2,500 $ 153,055 8.1% 95.4% $ 748.25 Dallas 3,616 $ 200,803 10.6% 90.6% $ 735.68 Houston 1,310 $ 62,410 3.3% 91.9% $ 716.99 Tampa 1,120 $ 64,740 3.4% 94.9% $ 784.22 - ------------------------------------------------------------------------------------------------------------------------ Large Tier Markets 8,546 $ 481,008 25.4% 92.8% $ 742.85 Austin 1,254 $ 55,890 3.0% 91.2% $ 626.59 Greenville 1,492 $ 60,946 3.2% 97.3% $ 544.79 Jacksonville 3,631 $ 194,854 10.3% 94.8% $ 774.91 Memphis 4,837 $ 221,378 11.7% 95.0% $ 630.09 Nashville 1,855 $ 118,682 6.3% 97.2% $ 711.85 All other middle 2,320 $ 101,385 5.4% 95.7% $ 636.68 - ------------------------------------------------------------------------------------------------------------------------ Middle Tier Markets 15,389 $ 753,135 39.9% 95.3% $ 666.55 Augusta/Aiken 912 $ 37,539 2.0% 97.2% $ 606.79 Chattanooga 943 $ 35,645 1.9% 96.1% $ 573.65 Columbia 576 $ 29,636 1.6% 95.0% $ 656.87 Columbus 1,293 $ 60,275 3.2% 96.0% $ 685.99 Huntsville 544 $ 27,031 1.4% 91.4% $ 628.28 Jackson, TN 664 $ 31,757 1.7% 95.0% $ 589.73 Jackson, MS 1,577 $ 66,783 3.5% 97.8% $ 625.82 Lexington 924 $ 57,808 3.1% 96.3% $ 693.23 Little Rock 808 $ 37,857 2.0% 96.5% $ 631.64 Macon/Warner Robbins 904 $ 49,263 2.6% 96.5% $ 672.04 Southeast Georgia 678 $ 31,700 1.7% 95.7% $ 642.11 All other small 3,578 $ 188,337 10.0% 95.6% $ 721.79 - ------------------------------------------------------------------------------------------------------------------------ Small Tier Markets 13,401 $ 653,631 34.7% 96.0% $ 660.87 - ------------------------------------------------------------------------------------------------------------------------ Total Portfolio (including JV properties) 37,336 $ 1,887,774 100.0% 94.9% $ 681.98 ========================================================================================================================
NUMBER OF APARTMENT UNITS 2004 2003 --------------------------------------------------- --------------------------------- September 30 June 30 March 31 December 31 September 30 -------------------- -------------- ------------- ---------------- --------------- 100% Owned Properties 35,766 35,382 35,142 34,686 34,185 Properties in Joint Ventures 1,570 1,570 1,570 1,048 1,048 - ------------------------------------------------------------------------------------------------------------------------ Total Portfolio 37,336 36,952 36,712 35,734 35,233 ========================================================================================================================
- --------------------------------------------------------------------------------------------------------------------------- SAME STORE Dollars in thousands except Average Rental Rate - --------------------------------------------------------------------------------------------------------------------------- Properties are grouped by operational responsibility CURRENT PERIOD ACTUALS As of September 30, 2004 unless otherwise noted Three Months Ended September 30, 2004 Average Twelve ---------------------------- Physical Economic Rental Month Units Revenue Expense NOI Occupancy Occupancy(1) Rate Turn Rate ------- --------- --------- --------- ----------- ------------- --------- ----------- Atlanta 1,412 $ 2,788 $ 1,197 $ 1,591 95.5% 87.7% $ 700.97 67.8% Dallas 1,402 $ 2,287 $ 1,250 $ 1,037 89.0% 73.8% $ 645.45 67.8% Houston 1,002 $ 1,855 $ 930 $ 925 92.6% 78.6% $ 669.82 70.7% Tampa 1,120 $ 2,567 $ 1,121 $ 1,446 94.9% 87.7% $ 784.22 63.2% - ------------------------------------------------------------------------------------------------------------- Large Tier Markets 4,936 $ 9,497 $ 4,498 $ 4,999 93.0% 82.3% $ 697.77 67.3% Austin 976 $ 1,627 $ 922 $ 705 90.5% 78.2% $ 596.76 71.9% Greenville 1,492 $ 2,245 $ 1,080 $ 1,165 97.3% 87.5% $ 544.79 72.4% Jacksonville 2,846 $ 6,157 $ 2,365 $ 3,792 95.3% 90.9% $ 726.44 68.7% Memphis 3,821 $ 6,329 $ 3,122 $ 3,207 94.6% 85.0% $ 608.75 65.7% Nashville 966 $ 1,951 $ 786 $ 1,165 96.8% 90.1% $ 666.36 76.0% All other middle 2,016 $ 3,730 $ 1,719 $ 2,011 95.6% 84.6% $ 654.30 68.5% - ------------------------------------------------------------------------------------------------------------- Middle Tier Markets 12,117 $22,039 $ 9,994 $12,045 95.1% 86.7% $ 639.72 69.0% Augusta/Aiken 728 $ 1,283 $ 539 $ 744 97.7% 84.1% $ 594.44 71.7% Columbia 576 $ 1,009 $ 573 $ 436 95.0% 81.1% $ 656.87 74.5% Columbus 1,293 $ 2,689 $ 1,102 $ 1,587 96.0% 93.7% $ 685.99 113.5% Huntsville 544 $ 951 $ 399 $ 552 91.4% 79.6% $ 628.28 67.7% Jackson, TN 664 $ 1,066 $ 571 $ 495 95.0% 82.7% $ 589.73 77.1% Jackson, MS 1,381 $ 2,679 $ 1,006 $ 1,673 97.6% 91.7% $ 631.22 69.7% Lexington 554 $ 991 $ 393 $ 598 96.0% 84.9% $ 610.81 70.4% Little Rock 808 $ 1,493 $ 558 $ 935 96.5% 92.0% $ 631.64 65.0% Macon/Warner Robbins 904 $ 1,819 $ 709 $ 1,110 96.5% 91.9% $ 672.04 68.4% Southeast Georgia 678 $ 1,271 $ 500 $ 771 95.7% 88.2% $ 642.11 67.4% All other small 3,860 $ 8,251 $ 3,124 $ 5,127 95.8% 89.6% $ 718.12 70.2% - ------------------------------------------------------------------------------------------------------------- Small Tier Markets 11,990 $23,502 $ 9,474 $14,028 96.0% 88.8% $ 664.45 74.7% - ------------------------------------------------------------------------------------------------------------- Total Same Store 29,043 $55,038 $23,966 $31,072 95.1% 86.7% $ 659.79 71.1% ============================================================================================================= (1) Economic Occupancy represents Net Potential Rent less Delinquencies, Vacancies and Cash Concessions divided by Net Potential Rent.
PERCENT CHANGE FROM THREE MONTHS ENDED JUNE 30, 2004 (PRIOR QUARTER) AND SEPTEMBER 30, 2003 (PRIOR YEAR) Revenue Expense NOI Physical Occupancy Average Rental Rate ------------------ ------------------- -------------------- -------------------- ------------------- Prior Prior Prior Prior Prior Prior Prior Prior Prior Prior Quarter Year Quarter Year Quarter Year Quarter Year Quarter Year --------- -------- ---------- -------- ---------- --------- ----------- -------- ---------- -------- Atlanta -0.3% 0.6% 2.8% -7.4% -2.5% 7.6% 3.0% 3.9% 0.3% -4.6% Dallas -1.8% -1.9% 1.5% -4.4% -5.6% 1.3% 2.0% -0.9% 2.5% -2.1% Houston -1.5% -5.0% 12.2% 3.1% -12.3% -11.9% 0.5% 0.1% 0.0% -1.1% Tampa 3.1% 6.1% 4.3% 9.5% 2.1% 3.7% 2.6% -0.1% 0.7% 2.5% - --------------------------------------------------------------------------------------------------------------------------- Large Tier Markets 0.0% 0.3% 4.6% -0.6% -3.9% 1.1% 2.2% 0.9% 0.9% -1.5% Austin 2.4% -2.9% 4.9% 14.0% -0.7% -18.7% -1.0% -2.2% 0.2% -1.1% Greenville -3.1% 5.0% 8.8% -10.8% -12.0% 25.5% 2.5% -1.1% -0.6% -1.2% Jacksonville 0.6% -0.4% 7.9% 5.3% -3.5% -3.6% 1.4% 0.1% 0.6% 2.3% Memphis -1.1% 1.9% 9.3% 3.3% -9.5% 0.5% 0.6% 1.1% -0.9% -0.8% Nashville 4.4% 4.7% 6.4% -4.4% 3.1% 11.9% 2.7% 1.1% 0.0% 0.5% All other middle 0.5% 2.4% 10.1% 6.0% -6.5% -0.4% 2.2% 1.1% 0.2% 1.4% - --------------------------------------------------------------------------------------------------------------------------- Middle Tier Markets 0.1% 1.5% 8.4% 2.7% -5.8% 0.5% 1.3% 0.3% -0.1% 0.4% Augusta/Aiken 0.3% 0.9% 14.0% 12.3% -7.7% -6.1% 6.5% 1.7% -2.3% -1.3% Columbia -2.9% 8.7% 17.4% 7.7% -20.9% 10.1% 5.4% 1.4% -0.8% -1.3% Columbus -4.5% 0.9% 10.2% 11.9% -12.7% -5.5% 2.1% -1.5% 0.6% 2.0% Huntsville 1.8% -4.9% -0.7% -4.3% 3.8% -5.3% -1.6% -6.2% 0.3% -1.4% Jackson, TN 0.2% -0.7% 10.0% -0.9% -9.2% -0.4% -0.8% -0.5% 1.1% 1.2% Jackson, MS 4.0% 6.3% 4.1% 2.5% 3.8% 8.6% 2.8% -0.4% 1.1% 3.4% Lexington 4.9% 6.9% 4.8% -4.1% 4.9% 15.7% 1.2% 4.1% -0.3% 1.3% Little Rock -1.3% 0.8% 6.3% -3.5% -5.4% 3.5% 1.7% 1.8% 0.2% 0.6% Macon/Warner Robbins -0.8% 0.1% 6.6% -4.4% -5.0% 3.2% 0.9% -0.9% 0.8% 0.3% Southeast Georgia 0.8% -0.8% 6.6% 0.6% -2.7% -1.7% 1.0% -0.9% 0.1% 1.0% All other small 2.6% 3.7% 5.3% 2.4% 1.0% 4.6% 2.2% 1.5% 0.3% 1.6% - --------------------------------------------------------------------------------------------------------------------------- Small Tier Markets 0.8% 2.5% 7.1% 2.4% -3.0% 2.6% 2.1% 0.4% 0.3% 1.2% - --------------------------------------------------------------------------------------------------------------------------- Total Same Store 0.4% 1.7% 7.1% 2.0% -4.2% 1.5% 1.8% 0.4% 0.2% 0.4% ===========================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (in thousands) - -------------------------------------------------------------------------------------------------------------------------- September 30, December 31, 2004 2003 --------------- --------------- Assets Gross real estate assets $ 1,745,632 $ 1,670,417 Accumulated depreciation (382,499) (339,704) Other real estate assets, net 25,712 21,136 - ------------------------------------------------------------------------------------- Real estate assets, net 1,388,845 1,351,849 Cash and cash equivalents, including restricted cash 15,897 20,880 Other assets 39,240 33,804 Assets held for disposition 13,119 - - ------------------------------------------------------------------------------------- Total assets $ 1,457,101 $ 1,406,533 ===================================================================================== Liabilities Notes payable $ 1,016,786 $ 951,941 Other liabilities 61,933 61,279 Liabilities associated with assets held for disposition 188 - - ------------------------------------------------------------------------------------- Total liabilities 1,078,907 1,013,220 Shareholders' equity and minority interest 378,194 393,313 - ------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 1,457,101 $ 1,406,533 =====================================================================================
- -------------------------------------------------------------------------------------------------------------------------- SHARE AND UNIT DATA (in thousands) - -------------------------------------------------------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, -------------------------------- --------------------------- 2004 2003 2004 2003 --------------- --------------- -------------- ----------- Weighted average common shares - Basic 20,338 18,302 20,218 17,961 Weighted average common shares - Diluted 20,686 18,606 20,545 18,193 Weighted average common shares and units - Basic 23,003 21,020 22,889 20,690 Weighted average common shares and units - Diluted 23,350 21,324 23,217 20,922 Common shares at September 30 - Basic 20,582 19,503 20,582 19,503 Common shares at September 30 - Diluted 20,938 19,830 20,938 19,830 Common shares and units at September 30 - Basic 23,240 22,204 23,240 22,204 Common shares and units at September 30 - Diluted 23,596 22,531 23,596 22,531
- -------------------------------------------------------------------------------------------------------------------------- OPERATING RESULTS (Dollars and shares in thousands except per share data) - -------------------------------------------------------------------------------------------------------------------------- Three Months Ended Trailing September 30, 2004 4 Quarters --------------------- ------------ Net income $ 3,131 $ 17,483 (Gain) loss on debt extinguishment (38) (36) Net gain on insurance and other settlement proceeds (248) (3,364) Gain on sale of discontinued operations - 2 Depreciation 17,181 67,163 Amortization of deferred financing costs 436 1,768 Interest expense 12,868 48,916 - -------------------------------------------------------------------------------------------------- EBITDA $ 33,330 $ 131,932 - --------------------------------------------------------------------------------------------------
Three Months Ended September 30, ---------------------------------- 2004 2003 ----------------- -------------- EBITDA/Debt Service 2.49x 2.37x EBITDA/Fixed Charges 2.51x 2.43x Total Debt as % of Gross Real Estate Assets 57% 55%
- --------------------------------------------------------------------------------------------------------------------------- DEBT AS OF SEPTEMBER 30, 2004 - --------------------------------------------------------------------------------------------------------------------------- Dollars in thousands Principal Average Years Average Balance to Maturity(1) Rate --------------- ------------------ ---------- Conventional - Fixed Rate or Swapped(2) $ 684,481 7.6 6.1% Tax-free - Fixed Rate or Swapped 108,531 15.7 5.1% Conventional - Variable Rate(2) 190,344 8.8 2.5% Tax-free - Variable Rate 10,855 16.2 2.5% Capped - Variable Rate(3) 22,575 3.7 2.2% - ---------------------------------------------------------------------------------------- Total $ 1,016,786 8.7 5.2% (1) Maturities on swapped balances are calculated using the life of the underlying variable debt. (2) Excludes the impact of a $25 million forward swap which goes into effect on December 1, 2004 and has an effective rate of 5.2%. (3) As the cap rate of 6.0% has not been reached, the average rate represents the rate on the underlying variable debt.
FIXED RATE MATURITIES Balance Rate ------------ ------- 2004 $ 47,500 7.0% 2005 99,262 5.0% 2006 49,608 6.9% 2007 92,800 5.9% 2008 132,104 5.8% 2009 100,230 6.4% 2010 90,000 5.5% 2011 101,000 5.2% Thereafter 80,508 6.2% - ----------------------------------------------------------------- Total $ 793,012 5.9%
- --------------------------------------------------------------------------------------------------------------------------- OTHER DATA - --------------------------------------------------------------------------------------------------------------------------- Three Months Ended September 30, Nine Months Ended September 30, ---------------------------------- ---------------------------------- 2004 2003 2004 2003 ------------------ ------------- ------------------ ------------- PER SHARE DATA Dividend declared per common share $0.585 $0.585 $1.755 $1.755
DIVIDEND INFORMATION (latest declaration) Payment Payment Record per Share Date Date --------------- ---------------- ------------- Common Dividend - quarterly $0.5850 10/30/2004 10/22/2004 Preferred Series F - monthly $0.1927 11/15/2004 11/01/2004 Preferred Series H - quarterly $0.51875 09/23/2004 09/13/2004
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