-----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, D4QDKdsB9MhqdN5vIY/zT/iX+Q2lnmvs+tOq/hxMLwUqm3o5xSV44rOTRA/XQryf GcdSrazjg8DpBbpYUvzZNQ== 0000923118-01-000008.txt : 20010223 0000923118-01-000008.hdr.sgml : 20010223 ACCESSION NUMBER: 0000923118-01-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010213 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOME PROPERTIES OF NEW YORK INC CENTRAL INDEX KEY: 0000923118 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 161455126 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13136 FILM NUMBER: 1548362 BUSINESS ADDRESS: STREET 1: 850 CLINTON SQ CITY: ROCHESTER STATE: NY ZIP: 14604 BUSINESS PHONE: 7165464900 MAIL ADDRESS: STREET 1: 850 CLINTON SQUARE CITY: ROCHESTER STATE: NY ZIP: 14604 8-K 1 0001.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Act of 1934 Date of Report (Date of earliest event reported): February 13, 2001 HOME PROPERTIES OF NEW YORK, INC. ------------------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 1-13136 16-1455126 ---------------- ------------ ------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File No.) Identification No.) 850 Clinton Square, Rochester, New York 14604 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (716)546-4900 Not Applicable ------------------------------------------------------------------ (Former name or former address, if changed since last report.) Item 7. FINANCIAL STATEMENTS AND EXHIBITS c. Exhibits Exhibit 99.1 Press Release Exhibit 99.2 Supplemental Information Item 9. Regulation FD On February 13, 2001, the Registrant issued a press release announcing its results for the fourth quarter of 2000. The related press release is attached hereto as Exhibit 99.1. Attached as Exhibit 99.2 is information supplemental to the financial information contained in the February 13, 2001 press release. On February 13, 2001, the Registrant held its fourth quarter 2000 investor conference call. Also, the conference call included slides shown during the conference call, and the written description of those slides is included in the following script from that conference call: SLIDE 1: This slide contains the logo of Home Properties of New York, Inc. in the top center with the following text: Fourth Quarter and Year End 2000 ;Earnings Conference Call and Webcast February 13, 2001 (David) Good morning. Thank you for participating in our fourth quarter earnings conference call. We are broadcasting this call live over the Internet. You can view supporting, synchronized slides via our Web site at www.homeproperties.com. The movement of the slides will be controlled by Home Properties; and, while everything should go smoothly, this is our first webcast and the Internet is sometimes unpredictable. The complete webcast will be available for playback through our web site within about 90 minutes following its conclusion. SLIDE 2: THIS SLIDE CONTAINS THE FOLLOWING: "FORWARD LOOKING STATEMENTS; THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, IT CAN GIVE NO ASSURANCE THAT THESE EXPECTATIONS WILL BE ACHIEVED . . ." (David) Before we begin, I would like to remind you that some of our discussion this morning will involve forward-looking statements. Please refer to the safe- harbor language included in our press release, which describes certain risk factors that may impact our future results. Also, please be aware that this call is being recorded and members of the press may be participating. I will assume that all of you have already seen our earnings press release, which was issued early this morning. We have also made available several pages of supplemental schedules. If you didn't receive this information and would like to get on our fax list, give us a call. The press release and supplemental schedules are also available today on our web site. SLIDE 3: THIS SLIDE CONTAINS THE FOLLOWING CAPTION, FOLLOWED BY PHOTOGRAPHS OF THE PARTICIPANTS: "CONFERENCE CALL PARTICIPANTS"; THE PHOTOGRAPHS ARE OF NORMAN LEENHOUTS, CHAIRMAN AND CO-CEO, AMY TAIT, EXECUTIVE VICE PRESIDENT AND DIRECTOR, ED PETTINELLA, EXECUTIVE VICE PRESIDENT AND DIRECTOR AND DAVID P. GARDNER, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER; BELOW THE PHOTOGRAPHS IS WRITTEN "HOME PROPERTIES CENTRAL OFFICE (716) 546-4900. (David continued) Here with me this morning is Norman Leenhouts, Chairman and Co-Chief Executive Officer. (Norman - "Good morning.") Amy Tait is also joining us for her last quarterly conference call in her capacity as an Executive Vice President. (Amy - "Hello, everyone.") And finally, I am pleased to introduce Ed Pettinella, the newest member of our senior management team, who just joined us a little over a week ago as an Executive Vice President and Director. (Ed - "Glad to be here.") [Music begins here] Amy, what is that music I'm hearing? I hope this noise in the background isn't bothering any of our conference call participants! SLIDE 4: PHOTOGRAPH OF A FIRE WITH THE CAPTION: "THE HEAT IS ON ..." (Play music "The Heat is On!") (Amy) I'm sorry about that little interruption, David. But, after 22 consecutive quarters of meeting, and usually beating, analysts estimates, we are definitely feeling the heat from disappointing the street this quarter. I just couldn't resist sticking that in there to set the tone for this conference call. (David) Do you mind if I continue now, Amy? Thank you. SLIDE 5: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "FFO PER SHARE". THE SLIDE ALSO CONTAINS A GRAPH LISTING THE YEARS 1994, 1995, 1996, 1997, 1998, 1999 AND 2000 FROM LEFT TO RIGHT ALONG THE X-AXIS. FOLLOWING 1994 THERE IS AN * WITH THE FOLLOWING NOTED AT THE BOTTOM OF THE SLIDE: "*PRO FORMA RESULTS ARE PRESENTED AS IF TRANSACTIONS RELATED TO THE INITIAL PUBLIC OFFERING AND THE COMPANY'S FORMATION HAD OCCURRED ON JANUARY 1, 1993." ALONG THE LEFT SIDE OF THE Y-AXIS ARE THE POINTS $1.60, $1.80, $2.00, $2.20, $2.40, $2.60, $2.80, $3.00, $3.20 AND $3.40. THERE IS A BAR ABOVE THE POINT ON THE X-AXIS MARKED 1994 WITH THE FIGURE $1.76 PRINTED ABOVE THE BAR, ABOVE THE POINT MARKED 1995, THE FIGURES $1.83 AND IN PARENTHESIS THE FIGURE +3.9%; ABOVE THE POINT MARKED 1996, THE FIGURES $1.96 AND IN PARENTHESIS THE FIGURE +7.1%; ABOVE THE POINT MARKED 1997, THE FIGURES $2.11 AND IN PARENTHESIS THE FIGURE +7.6%; ABOVE THE POINT MARKED 1998, THE FIGURES $2.45 AND IN PARENTHESIS THE FIGURE +16.1%; ABOVE THE POINT MARKED 1999, THE FIGURES $2.78 AND IN PARENTHESIS THE FIGURE + 13.5%; AND ABOVE THE POINT MARKED 2000, THE FIGURES $2.94 AND IN PARENTHESIS THE FIGURE +5.6%. (David) Certainly, our fourth quarter financial results were a disappointment for all of us. However, we still generated 19% growth in our total Funds From Operations, with FFO per share up about 1/2 of one percent, at 75 cents on a diluted basis. These results were in line with the lowered estimates that we released in January. For the full year, our total FFO rose 36%, with FFO per share increasing by 5.6% to $2.94. SLIDE 6: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "CORE PROPERTY PERFORMANCE*". THE * IS NOTED AT THE BOTTOM OF THE SLIDE: " *REFLECTS 23,530 APARTMENT UNITS OWNED THROUGHOUT 1999 AND 2000." THE FOLLOWING TABLE IS ALSO ON THE SLIDE: 4Q Year 2000 2000 --------- --------- Rental Rates + 5.8% + 5.7% Rental Revenues + 6.2% + 5.8% Other Income + 44.1% + 32.2% Operating Expenses + 9.5% + 5.3% Net Operating Income + 5.8% + 7.6% (David) During the quarter, we achieved 6.2% growth in core property rental revenues, consisting of a combination of rental rate increases, which averaged a record 5.8%, plus occupancy gains of 0.3%. "Other income" at our core communities increased by a record-breaking 44% this quarter, reflecting our ongoing successful efforts to increase ancillary income. While the fourth quarter included a one-time benefit from a favorable insurance settlement, most of these additional revenues represented a broad mix of fees and charges, including laundry, cable, and net profits from corporate apartments. These record results on the revenue side would usually have given us reason to celebrate. However, expenses at our core properties increased by a substantial 9.5% this quarter -- another record that we would have preferred not to have broken. For the quarter, we still achieved net operating income growth of 5.8%, with 7.6% same-store growth for the full year. SLIDE 7: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "SAME PROPERTY NOI GROWTH". THIS SLIDE ALSO CONTAINS A GRAPH LISTING THE YEARS 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999 AND 2000 FROM LEFT TO RIGHT ALONG THE X-AXIS. ALONG THE LEFT SIDE OF THE Y-AXIS ARE THE POINTS 0.0%, 1.0%, 2.0%, 3.0%, 4.0%, 5.0%, 6.0%, 7.0%, 8.0%, 9.0% AND 10.0% FROM BOTTOM TO TOP. THERE ARE BARS ABOVE EACH YEAR ON THE X-AXIS WITH THE FOLLOWING FIGURES MARKED: 1990 - 2.7%, 1991 - 4.4%, 1992 - 1.8%, 1993 - 2.7%, 1994 - 2.2%, 1995 - 5.0%, 1996 - 5.9%, 1997 - 8.4%, 1998 - 6.9%, 1999 - 9.0% AND 2000 - 7.6%. (David) We think that 7.6% NOI growth is quite commendable, considering that at this time last year, we were only expecting 6% same-store growth for 2000. This also comes on the heels of the 9% NOI growth we generated in 1999. It's interesting to note that during 1999, we beat our NOI projections due to savings in operating expenses, including utilities. As we have explained many times before, some of our same-property NOI growth reflects a return on incremental investments in our communities above and beyond normal capital replacements. After charging ourselves a 10% cost of capital on these additional expenditures, the adjusted NOI growth that added to the bottom line during 2000 was about 4%. SLIDE 8: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "GAS PRICE VOLATILITY" AND THE FOLLOWING SUBTITLE "HENRY HUB NYMEX MONTHLY SETTLE JANUARY 1996- FEBRUARY 2001". THE SLIDE ALSO CONTAINS A GRAPH WITH AN X-AXIS LISTING THE MONTHS JANUARY 1996, APRIL 1996, JULY 1996, OCTOBER 1996, JANUARY 1997, APRIL 1997, JULY 1997, OCTOBER 1997, JANUARY 1998, APRIL 1998, JULY 1998, OCTOBER 1998, JANUARY 1999, APRIL 1999, JULY 1999, OCTOBER 1999, JANUARY 2000, APRIL 2000, JULY 2000, OCTOBER 2000 AND JANUARY 2001 FROM LEFT TO RIGHT. THE Y-AXIS HAS THE POINTS: $1.50, $2.50, $3.50, $4.50, $5.50, $6.50, $7.50, $8.50, $9.50 AND $10.50 FROM BOTTOM TO TOP. THE X-AXIS MONTHS EACH HAVE A POINT MARKED ABOVE THEM, WITH THE SPACES IN BETWEEN THE MONTHS LISTED ALSO HAVING POINTS MARKED. THE POINTS MARKED ON THE GRAPH FOR THE MONTHS LISTED ARE AS FOLLOWS: January 1996 $ 3.45 April 1996 $ 2.78 July 1996 $ 2.65 October 1996 $ 1.83 January 1997 $ 4.00 April 1997 $ 1.81 July 1997 $ 2.15 October 1997 $ 3.35 January 1998 $ 2.31 April 1998 $ 2.30 July 1998 $ 2.36 October 1998 $ 2.03 January 1999 $ 1.77 April 1999 $ 1.85 July 1999 $ 2.26 October 1999 $ 2.56 January 2000 $ 2.34 April 2000 $ 2.90 July 2000 $ 4.37 October 2000 $ 5.31 January 2001 $ 9.98 (David) The biggest story here, as it is throughout much of the country, is in utility expenses. This graph demonstrates just how volatile natural gas prices were during 2000. While it has always been our policy to hedge some of our exposure to this volatility by purchasing forward contracts, our past experience has been that this has been expensive insurance. During the past five years, and back almost ten years if there were room on this graph, you can see relatively stable natural gas prices. Historically, as we enter each heating season, rates experience some pressure but start settling back down around January. The 1999/2000 heating season did not follow this same pattern. Rates continued to climb during the summer months instead of leveling off. This unusual pattern made it more difficult to execute our hedging policies. SLIDE 9: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "GAS PRICE VOLATILITY" AND THE FOLLOWING SUBTITLE: "HENRY HUB NYMEX MONTHLY SETTLE OCTOBER 1999- FEBRUARY 2001 (INCLUDES NYMEX FORECAST NOV.00-JUNE 01 @ 9-12-00). IT ALSO CONTAINS THE FOLLOWING INDICATORS: THE LINE WITH A BLACK DIAMOND AS THE POINT IS THE ACTUAL NYMEX MONTHLY CLOSE AND THE LINE WITH A BLACK BOX AS THE POINT IS THE FORECAST NYMEX AT 9-12-00. THE X-AXIS IS MARKED WITH THE FOLLOWING POINTS FROM LEFT TO RIGHT: OCTOBER 1999, DECEMBER, FEBRUARY, APRIL, JUNE, AUGUST, OCTOBER, DECEMBER, FEBRUARY, APRIL AND JUNE. THE Y- AXIS IS MARKED WITH THE FOLLOWING POINTS FROM BOTTOM TO TOP: $1.50, $2.50, $3.50, $4.50, $5.50, $6.50, $7.50, $8.50, $9.50 AND $10.50. THE FOLLOWING SETS FORTH THE POINTS MARKED ON THE GRAPH: Actual NYMEX Forecast NYMEX Monthly Close at 9-12-00 October 1999 $2.56 $2.56 December $2.12 $2.12 February 2000 $2.61 $2.61 April $2.90 $2.90 June $4.41 $4.41 August $3.82 $3.82 October $5.31 $5.31 December $6.02 $5.23 February 2001 $6.29 $4.97 April $4.49 June $4.40 The October, 2000 point also has the following noted at it: "10-26 3{rd} Quarter Conference Call". (David) When we gave earnings guidance during our third quarter conference call, the NYMEX future prices indicated that rates were expected to moderate. At this time, gas prices had only reached a little over $5.00 per decatherm. Extreme weather conditions added further pressure on already reduced inventories of natural gas. The months of November and December of 2000 combined were the coldest on record in the country in 100 years. We had a tough comparison for the fourth quarter, as November and December of 1999 combined were the warmest on record in 100 years. The months of December and January yielded spot prices topping out at over $10 per decatherm. January and February have seen some moderation of temperatures, and prices have also now moderated to around $6.50 per decatherm. For 2001, our estimated variable natural gas costs are based on a weighted average of $6.65 per decatherm. To give you some sensitivity, each dollar swing in actual prices up or down from this level will affect earnings by about 2 1/2 to 3 cents per share on an annual basis. If this graph continued out to include the 2001/2002 heating season, you would see that futures contracts are anticipating continued moderation in prices for next winter. SLIDE 10: THIS SLIDE CONTAINS THE FOLLOWING TITLE: "CORE PROPERTY OPERATING EXPENSES" Followed by the following table: 4th Quarter Full Year Variance (%) Variance (%) ----------------- ------------------ Gas $ 688 (+ 34.0%) $ 852 (+11.1%) Personnel $ 749 (+ 16.1%) $ 1,667 (+ 8.4%) Insurance $ 184 (+ 81.4%) $ 319 (+40.9%) Snow Removal $ 93 (+ 193.8%) $ 64 (- 9.6%) Other Expenses $ 204 (+ 1.5%) $ 1,412 (+ 2.8%) ---------- ---------- --------- ---------- Total Expenses $1,918 (+ 9.5%) $ 4,186 (+ 5.3%) (David) This slide focuses on the expense categories which were troublesome during the fourth quarter. A more detailed comparison of all expense items for our core communities is included in our supplemental schedules. As shown here, the major areas of increase occurred in gas, personnel, insurance and snow removal. Gas costs at our core communities were up 34% for the quarter. However, if we also include communities that were acquired in 1999 before the fourth quarter, our total same-store comparison was up 47%, as noted in our earlier press release. Our increased personnel costs relate to two factors. One was the heavy snowfall in December, which contributed to overtime for maintenance personnel. Also, our revenue results were so strong, we ended up paying out more in site-level bonuses than we initially projected. 75% of site-level bonuses are calculated based on revenues, with 25% determined after considering expense targets. After experiencing very favorable insurance rates the last few years, an increase of about 35% was anticipated this year. What was unexpected was the decision of our insurance carrier not to honor their most recent three-year commitment. This past November, with two years remaining on our contract, our rates were increased by over 80% compared with historical levels. We are pursuing an amicable resolution to this problem, but are, for now, accruing insurance costs at the new higher premium. Finally, major snowstorms in December resulted in outlays for snow removal contracts that nearly tripled last years' expense for the fourth quarter. SLIDE 11: THIS SLIDE HAS THE FOLLOWING TITLE: "2000 ACQUISITIONS" WITH THE FOLLOWING TABLE PRESENTED:
Community Market Date Units Price (mm) - ------------------ ----------- -------------- ------------ ------------ Old Friends Baltimore 2/1/00 51 $2.00 Gateside (6) Philadelphia 3/15/00 2,113 $135.90 Schostak (2) Detroit 3/22/00 360 $14.40 Elmwood Terrace Baltimore 6/30/00 504 $20.60 East Meadow No.VA/DC 8/1/00 150 $13.00 Southbay Manor Long Island 9/11/00 61 $3.00 Hampton Court Detroit 9/29/00 182 $6.00 Bayberry Detroit 9/29/00 120 $5.70 Blackhawk Chicago 10/20/00 371 $17.50 Figoni (5) Long Island 11/1/00 429 $26.50 Orleans Village No.VA/DC 11/16/00 851 $67.40 Cypress Place Chicago 12/27/00 192 $10.10 TOTAL 2000 5,384 $322.10 TOTAL 1999 10,127 $487.25 TOTAL 1999 AND 2000 15,511 $809.35
(David) Most of the property results discussed so far have pertained to the 23,530 apartment units owned since the beginning of 1999. We continue to have positive news concerning the 15,511 units in communities recently acquired. Our winter expenses affected all of our communities, including the recent acquisitions completed during 1999 and 2000. Nevertheless, these communities generated net operating income during 2000 which approximated a 9.9% yield on our total investments of over $800 million. This is down slightly from our typical double-digit initial returns, but is still quite an accomplishment, particularly since we see tremendous future upside in these communities beyond the initial returns. SLIDE 12: THIS SLIDE HAS THE FOLLOWING TITLE: "MARKET BREAKDOWN" WITH THE FOLLOWING TABLE PRESENTED: % Owned Market Owned Portfolio - -------------- ------------- -------- Baltimore, MD 6,787 17.4% Eastern PA 6,276 16.1% Detroit, MI 5,693 14.6% Rochester, NY 2,975 7.6% New Jersey 2,657 6.8% DC/Northern VA 2,591 6.6% Buffalo, NY 2,519 6.5% Chicago, IL 2,018 5.2% All Others 7,525 19.2% Total Units 39,041 100.0% (David) Our supplemental schedules show the breakdown of our owned communities by market area. Property-by- property comparisons are also included and grouped by region. Every community has its own unique story. However, with minor exceptions, each of our markets is supporting positive growth in rental rates -- both for the fourth quarter and the full year. Needless to say, our properties in Buffalo and Syracuse, New York were hit the hardest by snow and cold weather in December, contributing to a negative NOI growth rate for the quarter, but still positive growth for the full year. It is worth noting that only about 18% of our owned portfolio is now located in Upstate, New York. Occupancy levels throughout our portfolio remain quite healthy, averaging 95.1%. On a same-property comparison, I am happy to say that we currently are about 1/2 % ahead on occupancies and have nearly 1% fewer apartments available to rent today than we did a year ago. This is true even though we are aggressively pushing rents. Recently, there has been some concern about the auto industry and the Detroit market. Chrysler and two auto parts manufacturers have specifically announced potential layoffs affecting the Detroit market. Of course, most of the auto workers own their own homes or pay higher rents than we typically charge. Approximately 2% of our Detroit resident base is employed by these companies. While a softening in the overall market is certainly not good news, we feel pretty well protected in the Class B apartment sector. In the Detroit region, only 4.8% of our units are available to rent, versus 5.4% available a year ago. It is important to keep in mind that, when auto workers are laid off, they continue to collect 90% of their salary for one year. SLIDE 13: THIS SLIDE HAS THE TITLE "OTHER CORPORATE INCOME" WITH THE FOLLOWING TABLE PRESENTED:
Q4 '00 Q4 '99 YTD '00 YTD '99 ------------- ------------ ------------ ------------ Management fees 1,380 1,329 5,416 5,336 Development fees 1,180 1,873 4,841 6,303 Other 157 274 389 444 General & Administrative (1,683) (2,190) (7,364) (7,449) Interest expense ( 512) ( 476) (1,937) (1,242) Depreciation ( 125) ( 99) ( 470) ( 358) Taxes 276 ( 29) 178 ( 132) --------- --------- ------- ------------ Total Other Income 673 682 1,053 2,902 COMBINED EBITDA 1,019 1,277 3,188 4,642
(David) For the fourth quarter, interest and dividend income was relatively flat, as was the net contribution from other corporate income, which consists primarily of management fees and development fees related to affordable housing. At the end of the year, we were successful in closing the sale of our affordable housing development business to the key personnel that ran that division. While the selling price was close to the book value of the related assets, after transaction costs, we are reporting a net loss of approximately $1 million on this disposition. By retaining the general partner interests and management of over 8,000 affordable apartment units, we feel as though we accomplished the best of both worlds. It has allowed us to reduce our dependence on the complex and volatile affordable housing development business, while allowing us to keep the stable income stream from managing 161 completed affordable housing communities which we control as the general partner. Effective January 1, 2001, we are making an election to treat the largest of our existing management companies as a wholly owned taxable REIT subsidiary, or TRS. This is in response to the recently enacted REIT Modernization Act which allows REITs to offer services historically not allowed directly to residents through the use of a TRS. The TRS will be consolidated with all other owned activities. This will result in the other income line in 2001 being shown gross of historical allocations, like G & A and interest expense, which will now affect those expense line items. Going forward, a reasonable run rate for the other income line would be approximately $1.1 million per quarter. You might also note while reviewing our operating statement, that our General and Administrative expenses for the fourth quarter were about equal to last year's, even though our company grew significantly. This can be attributed to substantially lower bonuses for employees at our central and regional offices this year, as bonuses are tied to FFO growth per share. We all shared the pain of higher operating expenses together. For 2001, General & Administrative expenses will increase as expenses previously netted against other income will now be included directly in the G & A line item. This expense, which averaged 4.1% of total revenue for 2000, is now estimated to average slightly over 5% of total revenue. With that, I'll turn it over to Amy to discuss our Capital Markets activities. SLIDE 14: THIS SLIDE HAS THE TITLE "CONSERVATIVE CAPITAL STRUCTURE". THE SLIDE ALSO CONTAINS A PIE CHART. ON THE LEFT ABOVE THE PIE CHART THERE IS A BOX WITHIN WHICH IS STATED: "EQUITY, 60%, FOLLOWED BY COMMON STOCK (48%), OPERATING PARTNERSHIP INTERESTS (36%) AND CONVERTIBLE PREFERRED (16%)". ON THE RIGHT ABOVE THE PIE CHART IS A BOX WITHIN WHICH IS STATED: "DEBT, 40%, FOLLOWED BY FIXED (99%) AND FLOATING (1%)". THE PIE CHART IS DIVIDED INTO FIVE PIECES: THE LARGEST PART IS LABELED "FIXED RATE DEBT", FOLLOWED BY (IN ORDER OF SIZE) "COMMON STOCK", "OPERATING PARTNERSHIP INTERESTS", CONVERTIBLE PREFERRED" AND "FLOATING RATE DEBT". BELOW THE PIE CHART IS THE CAPTION: "TOTAL CAPITALIZATION = $2.1 BILLION". ON THE LOWER LEFT OF THE SLIDE IS THE CAPTION: *$27-15/16 SHARE AT 12/31/00". (Amy) Thank you, David. Well, I'm glad to know that I can retire feeling comfortable that our balance sheet is in great shape. We ended 2000 pretty close to where we started. With a stock price of $27-15/16 per share at the end of the quarter, debt reflected 40% on our total market capitalization of $2.1 billion. Nearly all of our debt was at fixed interest rates, with weighted average maturities of about eleven years and average interest rates of 7.4%. Our $100 million unsecured revolving credit facility was available in its entirety. Our interest coverage ratio was 3.1 times for the quarter; and our fixed charge ratio, which includes preferred dividends, averaged 2.5 times coverage. Fitch recently reconfirmed our corporate debt rating at BBB, and our convertible preferred equity rating at BBB-. SLIDE 15: THIS SLIDE HAS THE TITLE "EQUITY CAPITAL SOURCES 2000". THE SLIDE HAS A PIE CHART CONSISTING OF THREE PARTS. THE LARGEST PART IS LABELED "CONVERTIBLE PREFERRED $115M (50%)"; THE SECOND IS LABELED "DRIP $57M (25%)" AND THE THIRD IS LABELED "UPREIT UNITS $59M (25%). BELOW THE PIE CHART IS THE CAPTION "TOTAL $231 MILLION". (Amy) Our primary source of equity during 2000 was the sale of $115 Million of Convertible Preferred Shares to several new Institutional Investors, with conversion prices ranging from $30 to $31.60 per share. These preferred issues allowed us to expand our equity base without diluting the value of our common shares. We continued to use UPREIT units very effectively as currency for acquisitions, issuing nearly $60 Million in Operating Partnerhsip Units. While these units were often priced below our estimate of net asset value, these transactions enabled us to acquire properties at even greater discounts to the market values for the properties. Our DRIP generated another $57 Million of new equity captial. SLIDE 16: This slide has the title "Net Asset Valuation (000's)" and is followed by the table set forth below: 9.0% 9.5% 10.0% ------------ ------------ ------------ Cap Cap Cap Real Estate Value $2,192 $2,076 $1,973 Other Assets/Liab. (746) (746) (746) ------------ ------------ ------------ Net Asset Value $1,446 $1,330 $1,227 NAV Per Share $32.47 $29.88 $27.55 (Amy) We've been pleased with the convertible preferred shares we issued in 2000. However, we don't intend to issue additional equity in the near future, since we think the underlying value of our stock exceeds recent trading prices by a healthy margin. Given recent declines in interest rates, and the ability for private apartment buyers to obtain substantial leverage from lenders such as Fannie Mae and Freddie Mac, we see cap rates dropping by as much as 50 basis points in our markets. Today, we estimate the net asset value of Home Properties to be about $32.50 per share, using a nominal cap rate of 9%. However, the market seems to be assigning a value to our company based on a cap rate of over 10%. Given these market conditions, we have developed several strategic initiatives which Ed is going to review. SLIDE 17: THIS SLIDE IS TITLED: "CAPITAL MARKETS INITIATIVES" . THE SLIDE HAS THE FOLLOWING BULLET POINTS: * Continued Share Repurchases * Property Sales * Increase Leverage Target to 45% * Modify Dividend Reinvestment Plan (Ed) Thanks, Amy. Quite simply, our plan is to opportunistically take advantage of the continued disconnect we see between Wall Street and Main Street valuations. First, we will continue to repurchase our shares, subject to the many restrictions and black out periods which limit our flexibility. During the fourth quarter, we were able to repurchase about 470,000 shares in the open market at an average price of just over $27.00 per share. We still have the authorization and the financial capacity to buy back another 1.3 million shares, which represents approximately 6% of our common shares currently outstanding. So, if you are contemplating selling a significant block of shares, it may make sense for you to call us first. SLIDE 18: THIS SLIDE HAS THE TITLE "POTENTIAL PROPERTY SALES". THE SLIDE HAS THE FOLLOWING BULLET POINTS: * $200 million of properties identified for sale * Properties are located in seven markets * Sale proceeds to be applied to acquisitions with higher growth prospects and/or share repurchases * Focus on 1031 exchanges (Ed) We are also contemplating the sale of several of our mature properties. We have recently identified about two dozen properties with over 5,000 units. The majority of these properties are stable communities in the Upstate, New York markets of Syracuse, Buffalo and Rochester. Others are spread over several markets, where they are less efficient to operate due to their remote locations and/or their small size. Our total estimate of value for these communities is about $200 million. We will not sell, however, unless we reach our targeted prices at levels which would allow us to reinvest the proceeds at higher returns -- either by repurchasing shares or making acquisitions with repositioning potential. Several of these properties were originally acquired through UPREIT transactions, so that sales will have to be matched with suitable acquisitions using 1031 exchanges. Our best guess is that we will end up selling about $100 million of properties this year, or about 5% of our owned portfolio. SLIDE 19: THIS SLIDE HAS THE TITLE: "LEVERAGE TARGET:. THE SLIDE HAS THE FOLLOWING BULLET POINTS: * Increase to 45% * Provides Sufficient Funds for: * $100 million in share repurchases OR * $200 million in acquisitions (beyond property sales) (Ed) Also, given the widening spreads between the effective cost of our equity capital versus our debt capital, we think that now is a good time to lock in long term interest rates on some additional mortgage borrowings. This would increase our debt-to-market capitalization ratio by about 5% of our total market capitalization, without having a significant impact on our interest coverage ratios. We continue to build a structured ladder of maturities to take advantage of the current yield curve and to smooth out the level of refinancing over time. Increasing our total debt-to-market capitalization ratio from a current level of 40% to a targeted level of 45% could provide sufficient funds, for example, to buy back about $100 million of our common shares. Alternatively, depending on market conditions, these proceeds could be used to purchase additional properties. Without raising a single additional dollar of equity, we could finance approximately $200 million of acquisitions, while keeping our leverage under 45%. If we are also successful in selling half of the $200 million of existing communities being offered for sale, that would support up to $300 million of acquisitions. At this point, we cannot commit to a precise combination of sources and uses of capital for 2001, as we expect to remain opportunistic. However, we do have a lot of flexibility to take advantage of opportunities going forward. SLIDE 20: THIS SLIDE HAS THE TITLE: "DIVIDEND REINVESTMENT & STOCK PURCHASE PLAN", THE SLIDE HAS A GRAPH, IN TWO COLORS (OPTIONAL CASH IS REPRESENTED BY BLUE, DIVIDEND REINVESTMENT IS REPRESENTED BY RED). THE X-AXIS HAS THE POINTS 1996, 1997, 1998, 1999 AND 2000, GOING FROM LEFT TO RIGHT. THE Y-AXIS IS MARKED "IN MILLIONS" AND HAS THE POINTS $0, $10, $20, $30, $40, $50, $60 AND $70, GOING FROM BOTTOM TO TOP. THERE ARE BARS ABOVE EACH OF THE YEARS ON THE X-AXIS WITH THE FOLLOWING FIGURES: Optional Cash Dividend Reinvestment -------------- ----------------------- 1996 $14.4 $ 0.2 1997 $35.6 $ 0.9 1998 $65.8 $ 6.5 1999 $37.7 $ 11.0 2000 $41.4 $ 14.4 (Ed) Finally, we plan to amend our Dividend Reinvestment and Stock Purchase Plan to avoid further dilution from issuing new shares at or below our underlying net asset value. Over the past several years, the Plan has generated approximately $220 million of much needed equity to support the growth of our Company. During the initial years, when we opened the spigot for larger investors, significant proceeds were raised at much more favorable executions than other capital-raising alternatives available at the time. However, during the past two years, our stock has been trading consistently below its net asset value. Therefore, one could argue that issuing these shares has been dilutive to shareholder value. We stopped allowing large investors to participate through our waiver program; however, we felt justified in continuing the Plan for smaller investors for three reasons: 1. These proceeds could be applied towards purchasing properties at even larger discounts to their inherent value, thereby supporting accretive acquisitions; 2. It was important to preserve the habit of monthly investment in HME for investors, so that they would be there for us when our stock price improved; and, 3. The Plan provided attractive incentives for our employees and apartment residents to build ownership in Home Properties. We have been anxious to protect this aspect of the program for these important constituencies. At worst, we always felt that we had the ability to offset these stock sales with open market repurchases. When we were able to repurchase stock, it was usually at lower prices than where we were issuing new shares under the DRIP. We now believe that capital market conditions have changed sufficiently for us to consider a significant modification to our Dividend Reinvestment Plan. Where we stand today, we do not see any near-term catalyst to raise our stock price up to or above net asset value. In fact, we could have easily decided to suspend our dividend reinvestment and direct stock purchase plan altogether. It is not something that we would start fresh today; however, we are reluctant to take away this program from our residents and employees. While the dollars from these constituencies are relatively small, the number of participants is large. We believe the goodwill and loyalty generated is meaningful. SLIDE 21: THIS SLIDE HAS THE TITLE "MODIFICATIONS TO DRIP PROGRAM" AND CONTINUES WITH THE FOLLOWING BULLET POINTS: * Reduce maximum monthly investment from $5,000 to $1,000 * Reduce discount from 3% to 2% for both cash purchases and reinvested dividends * Future change to open market purchases under consideration (Ed) REIT tax rules do not permit us to treat different groups of shareholders differently, so we have been working on some changes that will reduce participation from outside investors, while continuing to encourage participation from small long-term investors like our employees and residents. Currently, anyone wishing to purchase up to $5,000 per month under the Optional Cash Purchase component of our plan can do so without our approval and receives a 3% discount off our average five-day trading price. Recently, we have been bringing in about $3 to $4 million per month from these $5,000 and under investors. We now plan to cut that threshold back to only $1,000 permitted per month. In addition, we plan to reduce the discount from 3% to 2% on both cash purchases and dividends that are reinvested. While this discount is still attractive for long-term investors, it may no longer be worth the hassle for those investors that try to resell their shares and make a quick profit off the discount. Once finalized and implemented, we expect that these changes will significantly reduce participation in the plan. However, if the volume is still large after a few month transition period, we will also shift to fulfilling investment orders with open market purchases, rather than continuing to issue new shares. I look forward to meeting many of you personally and hope that you will help to guide me as I learn about the challenges and opportunities facing Home Properties and our industry as a whole. Although Amy's last day is officially tomorrow, she has generously offered to help introduce me to our institutional investors and analysts over the coming months. We will be scheduling several meetings around the country. Please call me or David if you would like to set something up at your convenience. I guess that leaves it to Norman, to review our accomplishments and outlook. SLIDE 22: THIS SLIDE HAS THE TITLE "SENIOR MANAGEMENT TEAM" AND CONTAINS THE FOLLOWING INFORMATION: Officer Title ----------- ----------------- Norman P. Leenhouts Chaiman, Co-CEO Nelson B. Leenhouts President, Co-CEO Edward J. Pettinella Executive Vice President David P. Gardner SVP, Chief Financial Officer Ann M. McCormick SVP, Secretary, General Counsel Scott A. Doyle SVP, Property Management Jodi A. Falk SVP, Information Systems (Norman) Thank you, Ed. I can't tell you what a pleasure it is to have you on board. Your background of 28 years in commercial banking, fresh insights and perspective are a welcome addition to our strategic planning process. I also know that I'll still get plenty of advice from Amy, whether I ask for it or not. I am delighted that she will remain as a consultant and non-employee director of Home Properties, while also spending more time with my grandchildren. Ed has played key roles in both the IPO of Rochester Community Savings Bank and its subsequent merger into Charter One. In addition to his Wall Street experience, Ed has had substantial exposure to real estate, including some experience he would rather forget - working out troubled loans and joint ventures. But what really made Ed an attractive candidate was his proven track record of leading and motivating people, through hard work and integrity, that is consistent with our company culture. Until my brother, Nelson, and I are ready to retire in a few years, we look forward to working closely with Ed. We plan to prepare him to assume the primary leadership role in our Company after a gradual transition period. All of the members of the senior management team are anxious to help in this process. SLIDE 23: THIS SLIDE HAS THE TITLE "CHALLENGES FACED DURING 2000" AND CONTAINS THE FOLLOWING BULLET POINTS: * Succession planning * Reduced dependence on affordable housing development * Energy prices and rough weather * Stock price under-performance (Norman) In summary, 2000 was one of the most challenging years we have faced since going public. It was a time to simplify our organization and prepare for the future. Ed's coming on board was a tremendous, positive step in formulating our succession plan. We are also pleased to have the prolonged process of selling the affordable housing development business behind us, with an outcome that is beneficial to our employees and shareholders. Our business is already easier to explain and manage, so we can focus more attention on our core business. As we've already mentioned, unprecedented increases in natural gas prices, combined with record cold weather, contributed towards energy costs that were more than we could have predicted or hedged against. Since we include heat in rents at most of our communities, we recoup the added expense of higher heating costs when leases are renewed, typically on each anniversary of a resident's stay with us. Buying utilities in bulk, at rates well below what an individual consumer would pay, is a tremendous advantage for us. Residents know that they can stay warm and comfortable throughout the year, without upsetting their monthly budgets. We believe that this winter's temporary pressure on earnings will be more than offset by an ongoing competitive marketing advantage for our apartments over the long term. We are already implementing record-setting rent increases for our Company with great success. We have also made the decision to hedge more of our fuel costs by locking in forward contracts before next year's heating season, eliminating over 50% of our exposure. We believe that our overrun on heating costs this winter contributed to our recent stock price under-performance relative to our peers. SLIDE 24: THIS SLIDE HAS THE TITLE "COMPARISON OF CUMULATIVE RETURNS" AND CONTAINS A LINE GRAPH WITH THE FOLLOWING POINTS: S&P 500 HME Equity REIT's ------- ------ -------------- 1995 100 100 100 1996 120.26 143.04 135.27 1997 157.6 185.79 162.67 1998 199.57 200.14 134.2 1999 238.54 230.18 128 2000 214.36 239.16 161.75 The following caption is on the lower right side of the slide: "December 31, 1995 = 100". (Norman) While our shareholders did receive a positive total return of 10% during 2000, we were punished by the market. After four years of outperforming our peer group, total returns for HME shareholders lagged the average apartment REIT during 2000 by over 20%. Nevertheless, our five-year track record has still outperformed the REIT sector by a wide margin. We are even ahead of the S&P 500 for this time period. SLIDE 25: THIS SLIDE HAS THE TITLE "OTHER ACHIEVEMENTS FOR 2000" AND CONTAINS THE FOLLOWING BULLET POINTS: * Record revenue growth of 6.6% * Same property NOI growth of 7.6% * 400 employees completed training programs * Achieved investment grade credit rating * $115 million in preferred shares issued * $91 million in capital upgrades completed * 5,384 units acquired for $322 million (Norman) We did have several significant positive achievements during 2000, which demonstrated the ongoing strength of our organization and business plan. We increased revenues by 6.6% at our core properties and grew our bottom line NOI by 7.6%, despite pressures on operating expenses. Over 400 employees completed significant new educational programs, which I will elaborate on later. For the first time, we applied for and received an institutional-grade credit rating of triple B from the Fitch rating agency. This exercise confirmed the stability associated with investment in class B apartments and acknowledged the benefit of utilizing non-recourse, fixed rate mortgage debt in our capital structure. This credit rating enabled us to efficiently tap the market for convertible preferred equity, attracting $115 million in new investment during 2000 from sophisticated institutions like Prudential, Equitable, Teachers Insurance, AEW and Pacific Life. We invested over $90 million in capital upgrades in our communities, which will generate solid future returns. In our experience, the work involved in spending this much money in improvements reflects many times the effort required to spend the same amount on new construction, which is probably also why the expected returns are higher. And finally, despite challenging capital market conditions, we were able to complete over $300 million of acquisitions, which we expect will provide long-term returns that exceed our blended cost of capital. SLIDE 26: THIS SLIDE HAS THE TITLE "PROPERTY PORTFOLIO". THE SLIDE ALSO CONTAINS A CHART LISTING THE POINTS IPO, 12/31/94, 12/31/95, 12/31/96, 12/31/97, 12/31/98, 12/31/99 AND 12/31/00 FROM LEFT TO RIGHT ALONG THE X-AXIS. ALONG THE LEFT SIDE OF THE Y-AXIS ARE MARKED 5,000, 10,000, 15,000, 20,000, 25,000, 30,000, 35,000, 40,000, 45,000, 50,000 AND 55,000. THERE IS A BAR ABOVE EACH OF THE POINTS ON THE X-AXIS, WITH THREE DIFFERENT PARTS, GREEN REPRESENTING TOTALLY OWNED, YELLOW REPRESENTING PARTIALLY OWNED, BLUE REPRESENTING FEE MANAGED. EACH BAR HAS A TOTAL FIGURE ABOVE IT AS FOLLOWS: Totally Owned Partially Owned Fee Managed Total ------------- --------------- ----------- -------- IPO 3,991 0 470 4,461 12/31/94 4,744 0 470 5,214 12/31/95 5,524 0 692 6,216 12/31/96 7,176 3,738 1,654 12,568 12/31/97 14,048 4,782 2,486 21,316 12/31/98 23,936 7,482 2,811 34,229 12/31/99 33,807 7,710 3,465 44,982 12/31/00 39,041 8,325 3,546 50,912 (Norman) With these recent acquisitions, we have now surpassed 50,000 units operated, with over 39,000 units wholly owned. SLIDE 27: THIS SLIDE IS TITLED "GATESIDE PORTFOLIO" AND CONTAINS PHOTOGRAPHS OF THREE OF THE COMMUNITIES PURCHASE WITH THE PORTFOLIO. THE PHOTOGRAPHS ARE OF MALVERN, MALVERN, PA, DEVON, ALLENTOWN, PA AND BRYN MAWR, BRYN MAWR, PA. (Norman) Here are some examples of what we acquired in 2000. The six Gateside Portfolio communities are located in suburban Philadelphia. The portfolio contains 2,113 units. We were able to acquire these properties for approximately $64,000 per unit. SLIDE 28: THIS SLIDE IS TITLED "SCHOSTAK COMMUNITIES" AND CONTAINS PHOTOGRAPHS OF THE TWO COMMUNITIES ACQUIRED: DEERFIELD WOODS IN LIVONIA, MI AND MACOMB MANOR IN ROSEVILLE, MI. (Norman) Here you see the two communities we acquired in the suburbs of Detroit, Michigan. These attractive garden-style properties contain 360 units that we acquired for $40,000 per unit. SLIDE 29: THIS SLIDE IS TITLED "FIGONI PORTFOLIO" AND SHOWS PHOTOGRAPHS OF TWO OF THE COMMUNITIES ACQUIRED: COLONIAL APARTMENTS, PATCHOGUE, NY AND EASTSIDE APARTMENTS, PATCHOGUE, NY. (Norman) Here you see two of the five communities we acquired on Long Island. These were part of the Figoni Portfolio that we purchased for about $62,000 per unit. SLIDE 30: THIS SLIDE IS TITLED "CURRENT OWNED COMMUNITIES" AND CONTAINS A MAP SHOWING THE 12 STATES IN WHICH HOME PROPERTIES OWNS COMMUNITIES AND WHERE THE 2001 CORE PROPERTIES, REGIONAL OFFICES AND RECENT ACQUISITIONS ARE LOCATED. THE INFORMATION PRESENTED IS AS OF 12/31/00. (Norman) And, here we are today. We now own 147 communities in 12 states. We are pleased to have achieved significant portfolio diversification within our targeted region. SLIDE 31: THIS SLIDE IS TITLED "AGE OF COMMUNITIES" AND CONTAINS A CHART WHICH STATES "EXISTING U.S. RENTAL APARTMENTS BY YEAR BUILT", AND ON THE LOWER RIGHT SIDE STATES THAT THE SOURCE IS THE NATIONAL MULTIHOUSING COUNCIL ESTIMATES BASED UPON CENSUS BUREAU DATA. THE X-AXIS HAS THE FOLLOWING POINTS, FROM LEFT TO RIGHT, 20S, 30'S, 40'S, 50'S, 60'S, 70'S, 80'S AND 90'S. ALONG THE LEFT SIDE OF THE Y-AXIS IS THE LABEL "NUMBER OF APARTMENTS (IN MILLIONS), WITH THE FOLLOWING POINTS, FROM BOTTOM TO TOP: 0, 0.5, 1, 1.5, 2, 2.5, 3, 3.5, 4, 4.5 AND 5. THERE ARE BARS ABOVE EACH OF THE POINTS OF THE X-AXIS GOING TO THE FOLLOWING POINTS: 20's 0.65 30's 0.6 40's 0.8 50's 1.3 60's 2.75 70's 4.7 80's 3.5 90's 1.75 (Norman) Our pricing discipline has kept us from committing to new acquisitions under current market conditions. In fact, we do not plan to close any new acquisitions during the first quarter. Nevertheless, we are optimistic that there is plenty of product out there that is crying out for the type of upgrading and repositioning we perform. Approximately two-thirds of the existing multi-family housing stock in our country was built before 1980. Last year, we looked at over 200,000 units available for sale in our markets. When Wall Street and Main Street valuation differences tip back in our favor, we will be ready to pounce. We improve our communities, inside and out, in ways that appeal to our residents and create value for shareholders. Upgrades to our communities generate attractive returns on the incremental capital invester, thereby allowing us to sustain extraordinary net operating income growth. SLIDE 32: THIS SLIDE HAS THE TITLE "CAPITAL IMPROVEMENTS COMPLETED IN 2000" WITH THE FOLLOWING BULLET POINTS: * 4,350 Kitchens Remodeled * 5,150 Bathrooms Remodeled * 13 New Community Centers * 13,500 Energy Efficient Windows Installed (Norman) The capital improvement projects completed at our owned communities during 2000 will boost our financial performance in 2001, since there is typically a lag period between the time we spend the money and when we start to benefit from higher rents and occupancies. We estimate that the cost simply to maintain the condition of our properties equates to approximately $400 per apartment annually. However, we actually spent an average of $2,500 per unit in 2000, as part of our long-term strategy to reposition and upgrade our communities. We estimate that the returns on these investments range from 10% to 20% annually, resulting from a combination of higher revenues and reduced annual operating expenses. While correcting deferred maintenance is our first priority upon acquisition of a property, there are many other worthy upgrade projects that may take years to complete such as remodeling kitchens and bathrooms, replacing windows, and adding community centers to offer expanded services and amenities. We maintain a team of professionals dedicated to design and oversight of our capital improvements. During 2000, we implemented $90 million of capital improvements, among them approximately 4,300 new kitchens, 5,200 new bathrooms, and 13 new community centers. SLIDE 33: THIS SLIDE HAS THE TITLE "OPERATING INITIATIVES" AND CONTAINS THE FOLLOWING BULLET POINTS: * Internet leasing * SafeRent * Referral centers * Community web sites * On-line payments * On-line service requests (Norman) We also have several operating initiatives underway which will add revenues, reduce costs, and improve services to residents. Our enhanced Website uses "state-of-the-art" technology so that visitors can quickly navigate to their area of interest. Prospective residents search for apartments, view property photos and floor plans, fill out guest cards, and download lease applications. The Internet is also playing a growing part in the way we attract and retain new residents. Approximately 4,500 potential residents visited our communities as a result of the Internet in 2000. Nearly 1,300 of these visits, or almost 29% resulted in a lease- signing. In 2000, we also introduced SafeRent technology to streamline the lease application process. It allows prospective residents to fill out and receive approval of their lease application within minutes. Imagine the difference between approving a lease on the spot versus telling a prospect that we will get back to them in two or three days. In 2001, we plan to upgrade our Referral Centers, which match potential residents with available units in our portfolio. These Centers were responsible for several hundred leases this year and will soon also be able to field maintenance emergency calls, perform marketing activities, and make referrals at any time, day or night. Our individual community internet portals are currently under development and should be rolled out in the coming months. These portals will provide a valuable marketing opportunity, while also allowing on- line rental payments and service requests. Together, these technology-driven advancements are freeing up our Leasing Consultants, who are then free to undertake value-adding activities. Our costs per lease are also being substantially reduced. SLIDE 34: THIS SLIDE HAS THE TITLE "EDUCATION PROGRAMS" AND CONTAINS THE FOLLOWING BULLET POINTS: * Leasing Training * Leadership 101 * Maintenance Training * On-Line Training * Lunch and Learn (Norman) Our expanded education programs are also contributing to increased productivity for our employees. With nearly 400 participants this year, we found that this investment is a great way to attract, retain and motivate talented personnel. A common knowledge-base about Home Properties, our industry, and the role each employee plays in our performance, helps the whole organization work towards maximizing shareholder value. Our leasing training brings employees to our central offices in Rochester, NY for a week-long curriculum focusing on "Home Properties Ambassadorship." Leasing consultants gain a foundation of company specific and industry-wide knowledge, customer service techniques, and an understanding of the application and leasing process. The Leadership 101 program for managers provides in-depth industry knowledge, budgeting, financial management and marketing methods, best employment practices and team-building techniques. The impact of individual property performance on the Company's bottom line is further clarified using case-studies, real community business plans and financial exercises. We also provide an intensive, four-day curriculum for our maintenance staff that provides invaaluable methods for minimizing risk and liability throughout a community, as well as focusing on technical and product knowledge, and customer service techniques. WE also rolled-out our on-line learning curriculum this year. Internet learning sites host valuable training in areas such as employee orientation, fair housing standards, safety issues and customer service. Finally, we began offering lunch and learn programs in 2000. Offered during a more casual, lunch-time setting, these mini-courses provide a convenient way for employees to receive personal, as well as professional development in life-work balance, time management, computer skills and other helpful topics. SLIDE 35: This slide is titled "Outlook for 2001 and Beyond" and contains the following bullet points: * Implementing substantial rent increases * Favorable demographic trends * FFO growth still hampered by loss of development fees and energy costs in 2001 * More favorable prospects for 2002 * Time to cull portfolio and take advantage of lower interest rates (Norman) Initiatives that we have underway encompass capital markets, property management, information technology, and education. Together, these changes will support long-term favorable results. In the coming year, we plan to implement significant rent increases throughout our portfolio, averaging 7.5%. These increases reflect the upgrades we are making to our communities. In addition, they will allow us to recoup higher heating costs from our occupants. While these rent increases may seem aggressive, they are supported by the overall strength in our high barrier-to-entry markets. We also stand to benefit from favorable long term demographic trends, which point towards a growing number of rental households from Echo Baby Boomers, empty nesters, and immigration. Despite excellent results at our communities, we expect that our FFO growth will continue to be hampered in 2001 by the remaining impact of higher energy costs and the disposition of our affordable housing development operations. As anticipated, the sale has a dilutive impact, since the development division was sold at a low multiple to earnings, which is appropriate for that business. After these impacts have been digested, the outlook for 2002 is very favorable. Fuel prices are already off their peak levels; and, as David explained, futures contracts reflect continued moderation in prices anticipated for next winter. Until then, we are prepared to batten down the hatches, taking the time to cull our existing portfolio and take advantage of lower interest rates. SLIDE 36: THIS SLIDE IS TITLED "FFO PER SHARE". THE SLIDE CONTAINS A GRAPH LISTING THE YEARS 1994*, 1995, 1996, 1997, 1998, 1999, 2000 AND 2001 (COMPANY ESTIMATE) FROM LEFT TO RIGHT ALONG THE X-AXIS. ALONG THE Y-AXIS THE FOLLOWING POINTS ARE MARKED: $1.60, $1.80, $2.00, $2.20, $2.40, $2.60, $2.80, $3.00, $3.20 AND $3.40. ABOVE EACH OF THE YEARS MARKED ON THE X-AXIS THERE IS A BAR WITH THE FOLLOWING FIGURES MARKED: 1994* $1.76 1995 $1.83 (+ 3.9%) 1996 $1.96 (+ 7.1%) 1997 $2.11 (+ 7.6%) 1998 $2.45 (+ 16.1%) 1999 $2.78 (+ 13.5%) 2000 $2.94 (+ 5.6%) 2001 $3.10 (+ 5.4%) *Pro forma results are presented as if transactions related to the initial public offering and the Company's formation had occurred on January 1, 1993. (Norman) Our first quarter of 2001 looks particularly dismal at this point, since the negative impact from utilities is concentrated in the first quarter. The guidance that we issued this morning works out to about an 11% drop in FFO per share from Q1 2000 to Q1 2001. However, we expect to end the full year with FFO growth in the 5 to 6% range. It is premature to be too specific about 2002, but we are very optimistic about FFO growth in that year. There is a lag between the time when we are absorbing higher utility costs and when we are able to fully pass these on to residents as their leases renew. Assuming that operating expenses stabilize in 2002, and the revenue increases continue to kick in, we could experience a very positive impact to net operating income as we play catch up. At this point, we expect positive FFO growth for 2002 to be in the 8 to 10% range. SLIDE 37: THIS SLIDE IS TITLED "DIVIDEND POLICY" AND CONTAINS A CHART SHOWING DIVIDEND PER SHARE, FFO PER SHARE AND PAYOUT RATIO. THE CHART HAS THE YEARS 1994 (1), 1995, 1996, 1997, 1998, 1999, 2000, AND 2001 (2) FROM LEFT TO RIGHT ALONG THE X-AXIS. THE FOOTNOTES ARE: (1) BASED ON ANNUALIZED FOURTH QUARTER 1994 DIVIDEND AND (2) BASED ON CURRENT DIVIDEND AND CURRENT COMPANY FFO ESTIMATES. ALONG THE LEFT Y-AXIS THE FOLLOWING POINTS ARE MARKED FROM THE BOTTOM TO THE TOP: $1.00, $1.50, $2.00, $2.50, $3.00, $3.50 AND $4.00. ALONG THE RIGHT Y-AXIS THE FOLLOWING POINTS ARE MARKED FROM THE BOTTOM TO THE TOP: 0.0%, 20.0%, 40.0%, 60.0%, 80.0% AND 100.0%. SET FORTH BELOW IN THE TABLE IS THE INFORMATION SHOWN ON THE SLIDE: Dividend Per Share FFO per Share Payout Ratio ------------------ ------------- ------------ 1994 $1.65 $1.76 93.8% 1995 $1.66 $1.83 90.7% 1996 $1.69 $1.96 86.2% 1997 $1.74 $2.11 82.5% 1998 $1.83 $2.45 74.7% 1999 $1.97 $2.78 70.9% 2000 $2.16 $2.94 73.5% 2001 $2.28 $3.10 73.5% (Norman) As you know, we just increased our dividends in November by 7.5%. Since our FFO expectations have since moderated, this results in our payout ratio going back up to about 73% of FFO for 2000 and 2001. We are comfortable with this payout ratio, which provides an ample cushion for replacement reserves, property upgrades and contingencies. We plan to continue to increase dividends, approximately in line with future FFO growth rates. By the way, when calculating our payout ratio, we hope that you will look at our numbers on an annualized basis. For example, given the significant seasonality in our quarterly earnings, it would be misleading to look at our dividend coverage just for the first quarter alone. We are particularly confident in the sustainability and growth of our dividends, since our leverage is low, our debt is almost entirely at fixed rates of interest (with very little maturing over the next few years), and our markets are not prone to over-building. Maintaining a healthy dividend yield also provides us with a competitive advantage when negotiating acquisitions which utilize operating partnership units as part of the consideration. With a track record of over 30 consecutive years of positive same- store growth, we are confident that our cash flow and our dividends will continue to grow faster than the rate of inflation. SLIDE 38: THIS SLIDE IS TITLED "QUESTIONS & ANSWERS" AND CONTAINS THE PHOTOGRAPHS OF THE CONFERENCE CALL PARTICIPANTS. THE PHOTOGRAPHS ARE OF NORMAN LEENHOUTS, CHAIRMAN AND CO-CEO, AMY TAIT, EXECUTIVE VICE PRESIDENT AND DIRECTOR, ED PETTINELLA, EXECUTIVE VICE PRESIDENT AND DIRECTOR AND DAVID P. GARDNER, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER; BELOW THE PHOTOGRAPHS IS WRITTEN "HOME PROPERTIES CENTRAL OFFICE (716) 546-4900. (Norman) With that, I'd like to open up the phone lines for questions. SLIDE 39: THIS SLIDE CONTAINS THE LOGO OF HOME PROPERTIES OF NEW YORK, INC. AS WELL AS THE FOLLOWING STATEMENTS: FOURTH QUARTER AND YEAR END 2000 EARNINGS CONFERENCE CALL AND WEBCAST, FEBRUARY 13, 2001 (David) If there are no further questions, we'd like to thank you all for your continued interest and investment in Home Properties. Have a great day! 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. Dated: February 15, 2001 HOME PROPERTIES OF NEW YORK, INC. (Registrant) By: /s/ David P. Gardner ------------------------------- David P. Gardner, Senior Vice President EX-99 2 0002.txt EXHIBIT 99.1 FOR IMMEDIATE RELEASE HOME PROPERTIES REPORTS FOURTH QUARTER AND YEAR END 2000 RESULTS ROCHESTER, NY, February 13, 2001 /PRNewswire / -- Home Properties (NYSE:HME) today released financial results for the fourth quarter and full year 2000. For the quarter ended December 31, 2000, Funds From Operations (FFO) was $32,553,000, or $.75 per share, compared with $27,403,000, or $.74 per share for the quarter ended December 31, 1999. These results were in line with lowered Company estimates for the quarter and equate to a 19% increase in total FFO over the comparable prior-year period, or a 0.5% increase on a per-share basis. FFO for the year ended December 31, 2000, was $120,854,000, or $2.94 per share, compared with $89,132,000 for 1999, or $2.78 per share. This resulted in a 36% increase in total FFO from the prior year, or a 5.6% increase on a per-share basis. FFO, a primary earnings measure for equity REITs, has been calculated in conformance with NAREIT guidelines. (Note that reported results reflect "diluted" FFO per share.) FOURTH QUARTER OPERATING RESULTS For the fourth quarter of 2000, same- property comparisons (for 95 "Core" properties containing 23,530 apartment units owned since the beginning of 1999) reflected an increase in rental revenues of 6.2% and a net operating income increase of 5.8% over the fourth quarter of 1999. Other property income improved 44%, reflecting successful efforts to increase ancillary income, as well as a one-time increase to earnings from insurance proceeds. Property level operating expenses increased by 9.5%, primarily due to increases in gas utility expenses, personnel expense, property insurance, real estate taxes, and snow removal costs. Average economic occupancy for the Core properties was 94.9% during the fourth quarter of 2000, up from 94.6% during the fourth quarter of 1999, with average monthly rental rates increasing 5.8% to $717. Occupancies for the 15,511 apartment units acquired between January 1, 1999, and December 31, 2000 (the "Recently Acquired Communities") averaged 94.4% during the fourth quarter, at average monthly rents of $788. FULL YEAR OPERATING RESULTS For the year ended December 31, 2000, same property comparisons for the Core properties showed an increase in rental revenues of 5.8% and a net operating income increase of 7.6% over 1999. Property level operating expenses increased by 5.3%, primarily due to increases in gas utility expenses, personnel expense, property insurance, and real estate taxes. Average economic occupancy for the Core properties increased slightly from 94.6% to 94.7%, with average monthly rents rising 5.7%. The yield on the Recently Acquired Communities during 2000 averaged approximately 10% on an annualized basis (calculated as the net operating income from the properties, less an allowance for general and administrative expenses equal to 3% of revenues, all divided by the acquisition costs plus capital improvement expenditures in excess of normalized levels). INTEREST AND DIVIDEND INCOME Interest and dividend income was about flat during the fourth quarter of 2000, with interest income from increased levels of financing to affiliates accounting for the annual increase of $654,000. DEVELOPMENT AND MANAGEMENT ACTIVITIES "Other Income" reflects the net contribution from management and development activities after allocating certain overhead and interest expenses. Compared with the fourth quarter of last year, gross development fee revenues decreased by 37% to $1,180,000, and management fee revenues increased 4% to $1,380,000 (including development and management revenues recognized in both the Company and its subsidiaries). The net contribution for the fourth quarter was flat, helped by income tax refunds and a reduction to the incentive compensation included in the general and administrative allocation. The net contribution for the year decreased $1,849,000, or 64%. The Company closed on the sale of the affordable housing development operations on the last day of the year for $6.7 million. A loss on sale of $924,000 was recorded during the fourth quarter for this sale, mainly attributable to transaction costs incurred. ACQUISITIONS AND DISPOSITIONS During the fourth quarter of 2000, the Company acquired eight communities with a total of 1,843 apartment units in Long Island, Chicago, and Virginia. Total consideration was $121.5 million, or an average of $66,000 per unit. For the full year, net acquisitions have resulted in a 15% increase in the number of apartment units owned outright by Home Properties. The Company is considering the sale of $100 million to $200 million of properties in its portfolio, although no sale agreements have been finalized at this time. If completed, sale proceeds would be opportunistically applied to acquisitions with higher growth prospects and/or share repurchases of Home Properties common stock under its share repurchase program. CAPITAL MARKETS ACTIVITIES During the fourth quarter of 2000, the Company issued operating partnership units valued at $2.3 million in connection with property acquisitions, raised $15.3 million by issuing additional shares under its Dividend Reinvestment and Direct Stock Purchase Plan ("DRIP"), and repurchased $12.7 million of common shares in the open market at an average price of $27.03 through its Stock Repurchase Program. The Company completed the sale of $30 million of Series E convertible preferred equity in a private transaction with Prudential and Teachers Insurance. For the entire year, the Company accessed $231 million in new equity capital including $115 million of convertible preferred stock, $59 million of operating partnership units (which are convertible into shares of common stock on a one-for-one basis), and $57 million through the DRIP. The Company is exploring alternatives to eliminate or reduce the discount currently provided to optional cash purchasers under the DRIP. If participation in the DRIP does not decline significantly in response to these changes, the Company will switch to satisfying demand for shares sold under the Program to open market purchases from the existing method of issuing new shares. These changes are being contemplated due to the fact that the stock has been trading consistently below the Company's estimate of net asset value. During the quarter, the Company closed on a $43.7 million, non-recourse mortgage financing provided by Fannie Mae with interest fixed at a rate of 6.815% for a term of ten years, secured by the recently acquired 851-unit Orleans Village Apartments located in Arlington, Virginia. Proceeds from this loan and the Series E transaction referred to above were used to fully repay borrowings under the Company's unsecured line of credit. As of December 31, 2000, the Company's ratio of debt-to-total-market capitalization was 40%, with nothing outstanding on its $100 million revolving credit facility and $10.4 million of unrestricted cash on hand. Mortgage debt of $833 million was outstanding, at fixed rates of interest averaging 7.4% and with staggered maturities averaging approximately 11 years. Interest coverage averaged 3.1 times during the quarter, and the fixed charge ratio, which includes preferred dividends, averaged 2.5 times. The Company estimates its net asset value at December 31, 2000 to range from $30.00 to $32.50 (based on capitalizing the annualized fourth quarter property net operating income between 9.0% and 9.5%, after a 4% growth factor, and deducting a management fee equal to 3% of gross revenues). REVIEW AND OUTLOOK The Company reconfirms its previous FFO guidance of $3.10 per share for 2001 ($.060, $0.78, $0.85, and $0.87 per quarter, respectively). This estimate includes a total of $0.12 dilution to earnings (as previously communicated), reflecting higher operating expenses for heating costs due to escalating natural gas prices. For 2001, same store revenue increases are projected to be 7.5%, operating expenses are estimated to increase approximately 7.0%, resulting in net operating income growth of between 7.5% and 8.0%. A portion of the revenue growth represents above average rent increases in order to pass through to our residents the increased heating costs. According to Norman Leenhouts, Chairman and Co-CEO, "2000 was one of the most challenging years we have faced since going public. We have made positive strides in the areas of succession planning and exiting the affordable housing development business. Also, unprecedented increases in natural gas prices combined with record cold weather contributed towards energy costs that were more than reasonably anticipated. Our Core properties produced record results for increases in both rental income and weighted average rents, while also providing net operating income growth of 7.6%, despite pressures on certain expense items. "We start 2001 with a strong balance sheet, healthy markets, and solid occupancy levels. We look forward to taking advantage of lower interest rates and recycling capital to build shareholder value." CLARIFIED DEFINITION OF FFO The Company's previously reported 1999 FFO excluded a non-recurring loss on available-for-sale securities of $2,123,000 reported in the second quarter and a non-recurring acquisition expense of $6,225,000 reported in the third quarter in conformance with the NAREIT definition of FFO then in place ("FFO as previously reported"). Effective January 1, 2000, the Company has adopted NAREIT's clarified definition which modifies FFO to include certain non-recurring charges ("FFO as clarified"). Although both FFO calculations are presented in the financial statements, the Company believes using FFO as previously reported for 1999 represents the best guide to investors of comparable operations and growth between years. The Company will conduct a conference call and simultaneous webcast today at 11:00 AM Eastern Time to review the information reported in this release. To listen to the call, please dial 800-248-9412. A replay of the call will be available by dialing 800-633-8284 or 858-812-6440 and entering the reservation number 17420043. Call replay will become available beginning at approximately 1:00 PM Eastern Time and continue until approximately Midnight on Tuesday, February 20. The prepared portion of the conference call presentation will be filed with the SEC on a Form 8-K. The Company webcast will include the audio portion of our conference call. To view the live webcast, you will need to perform a five-minute Pre-event System Test through the "Investors" section of our web site, www.homeproperties.com under the heading, "Financial Information." This will install the necessary software plug-in program on your computer. If you are unavailable at the scheduled time, you may still view the archived webcast presentation at www.homeproperties.com, beginning at 2:30 PM that day. The Company produces Supplemental Information that provides details regarding property operations, other income, acquisitions, market geographic breakdown, debt, and net asset value. The Supplemental Information is available via the Company's web site or via facsimile upon request. This press release contains forward-looking statements. Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that may cause actual results to differ include general economic and local real estate conditions, the weather and other conditions that might affect operating expenses, the timely completion of repositioning activities within anticipated budgets, the actual pace of future acquisitions, and continued access to capital to fund growth. Home Properties, the 11th largest apartment company in the United States, is a fully integrated, self-administered, and self-managed real estate investment trust ("REIT"). With operations in select Northeast, Midwest, and Mid-Atlantic markets, the Company owns, operates, acquires, rehabilitates, and develops apartment communities. Currently, Home Properties operates 319 communities containing 50,912 apartment units. Of these, 39,041 units in 147 communities are owned directly by the Company; 8,325 units are partially owned and managed by the Company as general partner, and 3,546 units are managed for other owners. The Company also manages one million square feet of commercial space. Home Properties' common stock is traded on the New York Stock Exchange under the symbol "HME" and on the Berlin Stock Exchange under the symbol "HMP GR". For more information, view Home Properties' web site at www.homeproperties.com. Tables to follow.
FOURTH QUARTER RESULTS AVG. ECONOMIC OCCUPANCY Q4 '00 Q4 '00 vs. Q4 '99 --------------- -------- --------------------- - ----------------------- Average Monthly % Rental % Rental Rent/ Rate Revenue % NOI Q4 '00 Q4 '99 Occ Unit Growth Growth Growth -------- -------- --------- -------- --------- ------- Core Properties(a) 94.9% 94.6% $717 5.8% 6.2% 5.8% Acquisition Properties(B) 94.4% NA $788 NA NA NA -------- ------- ------ ---- ---- ---- TOTAL PORTFOLIO 94.7% 94.4% $744 NA NA NA Core Properties(a) 94.7% 94.6% $701 5.7% 5.8% 7.6% Acquisition Properties(B) 94.2% NA $766 NA NA NA ----- ------ ----- ----- ----- ----- TOTAL PORTFOLIO 94.5% 94.6% $723 NA NA NA
Avg. Economic Full Year Results Occupancy 2000 2000 vs. 1999 - ----------------- ------------ ----- ------------------------------------ Average Monthly % Rental %Rental Rent/ Rate Revenue % NOI 2000 1999 Occ Unit Growth Growth Growth ---- ---- -------- -------- ------- ------ Core Properties (a) 94.7% 94.6% $701 5.7% 5.8% 7.6% Acquisition Properties(b) 94.2% NA $766 NA NA NA ----- ----- ----- ----- ----- ----- TOTAL PORTFOLIO 94.5% 94.6% $723 NA NA NA
(a) Core Properties includes 95 properties with 23,530 apartment units owned throughout 1999 and 2000. (b) Reflects 52 properties with 15,511 apartment units acquired subsequent to January 1, 1999. HOME PROPERTIES OF NEW YORK, INC. SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data - Unaudited)
Three Months Ended Year Ended December 31 December 31 2000 1999 2000 1999 ------- ------- ------ ------ Rental income $80,821 $66,068 $298,860 $217,591 Other income - property related 3,309 2,371 11,389 6,878 Interest and dividend income 1,711 1,743 7,746 7,092 Other income 672 682 1,053 2,902 ---------- ---------- ---------- --------- Total revenues 86,513 70,864 319,048 234,463 Operating and maintenance 35,172 27,840 128,034 95,200 General and administrative 3,436 3,405 13,235 10,696 Interest 15,270 12,200 56,792 39,558 Depreciation and amortization 14,635 11,823 52,430 37,350 Loss on available-for-sale securities -- -- -- 2,123 Non-recurring acquisition expense -- -- -- 6,225 ----------- ---------- ---------- ---------- Total expenses 68,513 55,268 250,491 191,152 Income before gain (loss) on disposition of property, minority interest, and extraordinary item 18,000 15,596 68,557 43,311 Gain (loss) on disposition of property (969) -- ( 1,386) 457 ---------- --------- ---------- -------- Income before minority interest and extraordinary item 17,031 15,596 67,171 43,768 Minority interest 6,495 6,524 25,715 17,390 --------- -------- --------- --------- Income before extraordinary item 10,536 9,072 41,456 26,378 Extraordinary item, prepayment penalties, net of $78 allocated to minority interest -- -- -- (96) ----------- ---------- ----------- ---------- Net income 10,536 9,072 41,456 26,282 Preferred dividends ( 3,926) (1,141) ( 12,178) (1,153) ---------- --------- ---------- --------- Net income available to common shareholders 6,610 7,931 29,278 25,129 Extraordinary item -- -- -- 96 (Gain) loss on disposition of property 969 -- 1,386 ( 457) Preferred dividends 3,926 1,141 12,178 1,153 Depreciation - real property 14,509 11,717 51,914 37,015 Depreciation - real property, unconsolidated 43 90 383 458 Minority Interest 6,495 6,524 25,715 17,390 ---------- ---------- ---------- ---------- FFO as clarified{ (1) }$32,552 $27,403 $120,854 $80,784 ====== ======= Non-recurring items:{ Loss on available-for-sale securities NA -- NA 2,123 Non-recurring acquisition expense NA -- NA 6,225 ---------- ----------- FFO as previously reported (2) NA $27,403 NA $89,132 ====== ======= Weighted average shares/units outstanding: Shares - basic 21,314.8 19,406.7 20,639.2 18,697.7 Shares - diluted 21,412.4 19,515.2 20,755.7 18,800.9 Shares/units -- basic(2) 37,261.3 35,116.1 35,998.3 31,513.8 Shares/units -- diluted 43,625.1 36,904.1 41,128.4 32,044.9 Per share/unit: Net income - basic $.31 $.41 $1.42 $1.34 Net income - diluted $.31 $.41 $1.41 $1.34 FFO as clarified - basic $.77 $.75 $3.02 $2.53 FFO as clarified - diluted $.75 $.74 $2.94 $2.52 FFO as previously reported - basic (3) NA $.75 NA $2.79 FFO as previously reported - diluted (3) NA $.74 NA $2.78
(1) FFO as clarified has been calculated in conformance with NAREIT guidelines and is defined (as clarified effective January 1, 2000) as net income (calculated in accordance with generally accepted accounting principles) excluding gains or losses from sales of property, minority interest and extraordinary items plus depreciation from real property. (2) Basic includes common stock plus operating partnership units and Class A limited partnership interests (in 1999) in Home Properties of New York, L.P., which can be converted into shares of common stock. Diluted includes additional common stock equivalents and Series A through E convertible cumulative preferred stock (in 2000), which can be converted into shares of common stock. (3) FFO as previously reported is presented for comparative purposes. Prior to 2000, NAREIT's definition of FFO excluded certain non-recurring charges. The Company believes using FFO as previously reported for 1999 represents the best guide to investors of comparable operations and growth between years. HOME PROPERTIES OF NEW YORK, INC. SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data - Unaudited)
December 31, 2000 December 31, 1999 Real estate $1,895,269 $1,480,753 Accumulated depreciation (153,324) (101,904) ------------ ------------ Real estate, net 1,741,945 1,378,849 Cash and cash equivalents 10,449 4,742 Cash in escrows 36,676 28,281 Accounts receivable 11,510 6,842 Prepaid expenses 13,505 9,423 Deposits 877 897 Investment in and advances to affiliates 45,048 63,450 Deferred charges 3,825 2,610 Other assets 8,053 8,523 ------------ ------------- Total Assets $1,871,888 $1,503,617 ========== ========= Mortgage notes payable $ 832,783 $ 618,901 Line of credit -- 50,800 Other liabilities 49,300 36,913 ----------- ----------- Total liabilities 882,083 706,614 Minority interest 371,544 299,880 Series B convertible preferred stock 48,733 48,733 Stockholders' equity 569,528 448,390 ------------- ------------- Total liabilities and stockholders' equity $1,871,888 $1,503,617 ======== ======== Total shares/units outstanding: Common stock 21,565.7 19,598.5 Operating partnership units 15,854.5 14,034.3 Series A convertible cumulative preferred stock* 1,666.7 1,666.7 Series B convertible cumulative preferred stock* 1,679.5 1,679.5 Series C convertible cumulative preferred stock* 1,983.5 -- Series D convertible cumulative preferred stock* 833.3 -- Series E convertible cumulative preferred stock* 949.4 -- ------------ ------------- 44,532.6 36,979.0
*Common stock equivalent For further information: David Gardner, Senior Vice President and Chief Financial Officer, (716) 246-4113 Norman Leenhouts, Chairman and Co-CEO, (716) 246-4109 EX-99 3 0003.txt EXHIBIT 99.2
HOME PROPERTIES OWNED COMMUNITIES RESULTS FOURTH QUARTER 2000 Q4'00 VERSUS Q4 '99 % GROWTH ----------- # OF DATE Q4 '00 Q4 '00 YEAR AGO RENTAL RENTAL APTS. ACQU. RENT/MO. OCCUP. OCCUP. RATES REVS. NOI ------ ------- -------- -------- -------- ------- ------- --- Rochester, New York Region: 1600 East Avenue 164 9/18/97 $ 1,267 74.1% 74.2% -4.5% -4.7% -12.2% 1600 Elmwood 210 Original $ 841 92.8% 91.3% 5.9% 7.6% 19.0% Brook Hill 192 IPO $ 868 95.3% 89.9% 5.6% 11.9% 19.6% Finger Lakes Manor 153 Original $ 758 90.6% 91.9% 3.8% 2.4% 32.0% Hamlet Court 98 1/1/96 $ 670 93.0% 94.0% 4.5% 3.5% -3.3% Hill Court South 95 10/31/97 $ 616 97.2% 94.7% 3.9% 6.6% 49.8% Ivy Ridge 135 10/31/97 $ 612 93.8% 92.9% 4.6% 5.5% -1.3% Newcastle Apartments 197 Original $ 727 89.8% 92.8% 3.9% 0.5% 8.4% Northgate Manor 224 11/3/94 $ 659 80.9% 87.6% 2.3% -5.7% -15.4% Perinton Manor 224 Original $ 777 95.6% 96.3% 3.9% 3.2% 6.7% Pines of Perinton 508 9/29/98 $ 523 97.7% 99.6% 0.2% -1.5% -7.8% Riverton Knolls 240 Original $ 836 92.6% 79.8% 6.0% 22.9% 79.3% Spanish Gardens 220 IPO $ 654 93.0% 96.8% 5.0% 0.8% -6.9% Springcreek 82 Original $ 572 99.5% 96.0% 2.7% 6.4% 34.8% The Meadows 113 Original $ 651 93.8% 96.1% 4.3% 1.8% 3.6% Woodgate 120 6/30/97 $ 741 96.4% 94.8% 5.0% 6.6% 6.4% ------ ------------ -------- ------- ------ ------- ------ Total Rochester Region 2,975 $ 725 91.4% 90.7% 3.0% 3.8% 8.4% BUFFALO, NEW YORK REGION: Emerson Square 96 10/15/97 $ 579 96.4% 98.9% 5.1% 2.4% -21.5% Fairways 32 10/15/97 $ 694 95.7% 99.5% 4.0% 0.3% -13.3% Garden Village 315 IPO $ 644 94.6% 97.7% 2.5% -0.7% -11.9% Idylwood 720 1/1/95 $ 601 95.7% 95.4% 3.1% 3.4% -4.5% Paradise Lane 324 10/15/97 $ 613 97.2% 97.5% 3.4% 3.1% 3.1% Raintree Island 504 Original $ 634 96.9% 97.3% 3.6% 3.2% 1.1% Williamstowne Village 528 Original $ 632 95.3% 93.7% 1.6% 3.3% -0.5% ------ -------------- -------- -------- ------- ------- ------- Total Buffalo Region 2,519 $ 621 95.9% 96.1% 2.8% 2.8% -3.4% SYRACUSE, NEW YORK REGION: Candlewood Gardens 126 1/1/96 $ 529 98.3% 97.2% 4.1% 5.3% -16.3% Conifer Village 199 IPO $ 566 100.0% 100.0% 0.2% 0.2% -2.0% Fairview Heights 210 Original $ 809 97.0% 99.8% 4.9% 2.1% -8.1% Harborside Manor 281 9/30/94 $ 605 94.0% 95.7% 3.4% 1.6% 0.5% Pearl Street 60 5/17/95 $ 523 86.3% 82.5% 5.2% 10.0% 78.8% Village Green (includes 448 12/19/94 $ 637 93.2% 90.6% 3.2% 6.3% -5.1% Fairways) Westminster Place 240 1/1/96 $ 590 97.0% 95.4% 6.1% 7.9% -6.2% ------ ------------ -------- -------- ------- ------- ------- Total Syracuse Region 1,564 $ 625 95.4% 95.1% 3.6% 4.2% -3.7% LONG ISLAND, NY REGION Bayview / Colonial 160 11/1/00 n/a n/a n/a n/a n/a n/a Coventry Village 94 7/31/98 $ 1,032 98.4% 94.5% 10.1% 14.7% -15.3% East Winds 96 11/1/00 n/a n/a n/a n/a n/a n/a Lake Grove Apartments 368 2/3/97 $ 1,040 94.3% 96.7% 11.3% 8.4% 3.6% Maple Tree 84 11/1/00 n/a n/a n/a n/a n/a n/a Mid- Island Estates 232 7/1/97 $ 914 97.4% 96.9% 7.7% 8.1% 23.9% Ryder Terrace 24 11/1/00 n/a n/a n/a n/a n/a n/a South Bay Manor 61 9/11/00 $ 883 88.1% n/a n/a n/a n/a Terry Apartments 65 11/1/00 n/a n/a n/a n/a n/a n/a ----- ----- ------ ------ ----- ------ ----- Total Long Island Region 1,184 $ 988 95.2% 96.5% 10.0% 9.3% 6.8% HUDSON VALLEY, NY REGION Carriage Hill 140 7/17/96 $ 860 94.5% 91.6% 4.5% 7.8% -12.8% Cornwall Park 75 7/17/96 $ 1,247 96.3% 96.2% 13.4% 13.5% 16.9% Lakeshore Villas 152 7/17/96 $ 749 90.0% 96.7% 13.7% 5.6% -31.7% Mountainside 227 7/7/98 $ 852 96.6% 98.6% 5.8% 3.7% -4.5% Patricia 100 7/7/98 $ 955 97.3% 97.9% 10.3% 9.7% 30.0% Sunset Gardens 217 7/17/96 $ 665 92.3% 89.3% 7.6% 11.4% -9.8% ------ ------------ --------- -------- ------- -------- ------- Total Hudson 911 $ 835 94.5% 95.0% 8.4% 7.9% -4.3% Valley Region NEW JERSEY REGION East Hill Gardens 33 7/7/98 $ 949 99.1% 92.0% 10.0% 18.5% 32.6% Lakeview 106 7/7/98 $ 872 98.8% 96.5% 8.9% 11.4% 18.1% Oak Manor 77 7/7/98 $ 1,231 97.6% 98.1% 9.4% 9.0% 33.1% Pleasantview 1,142 7/7/98 $ 829 95.0% 94.9% 9.1% 9.1% 10.4% Pleasure Bay 270 7/7/98 $ 689 97.9% 95.0% 6.2% 9.6% 7.9% The Towers 137 7/7/98 $ 1,017 98.1% 96.9% 5.6% 7.0% 10.9% Wayne Village 275 7/7/98 $ 888 96.7% 96.1% 7.2% 7.9% 2.3% Windsor Realty 67 7/7/98 $ 833 94.0% 95.8% 8.5% 6.4% 9.1% Royal Gardens 550 5/28/97 $ 867 97.1% 96.2% 6.6% 7.5% 16.4% Apartments -------- ------------ --------- -------- -------- ------- ------- Total New Jersey Region 2,657 $ 853 96.4% 95.6% 7.8% 8.7% 12.1% EASTERN PENNSYLVANIA REGION Arbor Crossing 134 7/28/99 $ 673 97.1% 98.0% 5.5% 4.6% 11.7% Beechwood Gardens 160 7/7/98 $ 651 92.9% 99.1% 7.2% 0.5% -4.6% Broadlawn 316 3/15/00 $ 866 94.6% n/a n/a n/a n/a Castle Club 158 3/15/00 $ 709 98.3% n/a n/a n/a n/a Cedar Glen 110 3/3/98 $ 464 84.9% 94.2% 2.2% -7.9% -55.1% Chesterfield 247 9/23/97 $ 729 95.6% 91.6% 6.4% 10.8% 24.7% Curren Terrace 318 9/23/97 $ 768 93.5% 94.9% 5.1% 3.5% 4.6% Executive House 100 9/23/97 $ 812 96.2% 94.6% 5.6% 7.3% 19.2% Glen Brook 173 7/28/99 $ 648 98.5% 91.3% 4.7% 12.9% 13.4% Glen Manor 174 9/23/97 $ 631 95.5% 93.5% 5.2% 7.5% 11.2% Golf Club 399 3/15/00 $ 843 90.0% n/a n/a n/a n/a Hill Brook Place 274 7/28/99 $ 665 96.6% 93.4% 4.7% 8.4% 21.5% Lansdowne Group 222 9/23/97 $ 663 96.1% 95.3% 4.6% 5.5% -1.8% New Orleans Park 308 9/23/97 $ 672 94.4% 94.0% 6.5% 6.9% 8.2% Racquet Club 467 7/7/98 $ 816 97.0% 95.4% 4.3% 6.0% 15.2% Ridgeway Court 66 2/26/99 $ 657 96.0% 89.0% 5.1% 13.3% 29.6% Ridley Brook 244 7/28/99 $ 684 98.4% 98.7% 6.7% 6.3% 5.4% Sherry Lake 298 7/23/98 $ 903 97.4% 96.2% 5.0% 6.4% 2.6% Sherwood Gardens 103 5/27/99 $ 683 93.9% 81.8% 7.4% 23.5% 91.3% Springwood Garden 77 9/23/97 $ 646 90.6% 89.6% 6.4% 7.5% 47.7% Sugartown Mews 628 3/15/00 $ 929 91.8% n/a n/a n/a n/a Trexler Park 249 3/15/00 $ 842 92.5% n/a n/a n/a n/a Valley Park South 384 11/25/96 $ 814 94.5% 95.8% 7.1% 5.6% 4.2% Valley View 176 9/23/97 $ 699 93.9% 92.3% 4.0% 5.8% 11.6% Village Square 128 9/23/97 $ 760 95.3% 94.3% 10.9% 12.1% 16.4% William Henry 363 3/15/00 $ 865 93.2% n/a n/a n/a n/a ------ -------------- --------- -------- ------- -------- ------ Total Eastern Penn. 6,276 $ 773 94.4% 94.5% 5.7% 6.8% 10.0% Region WESTERN PENNSYLVANIA REGION Cloverleaf Village 148 11/4/97 $ 584 86.6% 93.6% 5.8% -2.1% -48.1% ----- ------------- -------- --------- ------- ------- ------- Total Western Penn. 148 $ 584 86.6% 93.6% 5.8% -2.1% -48.1% Region DETROIT, MICHIGAN REGION Bayberry Place 120 9/30/00 $ 725 98.0% n/a n/a n/a n/a Carriage Hill 168 9/29/98 $ 735 97.9% 99.2% 5.3% 3.9% 2.0% Carriage Park 256 9/29/98 $ 682 95.8% 93.2% 3.2% 6.2% -9.5% Cherry Hill Club 164 7/7/98 $ 594 99.1% 90.9% 4.0% 13.3% 25.2% Cherry Hill Village 224 9/29/98 $ 666 96.1% 96.0% 5.2% 5.4% 11.5% Deerfield Woods 144 3/22/00 $ 716 98.4% n/a n/a n/a n/a Hampton Court 182 9/30/00 $ 577 89.1% n/a n/a n/a n/a The Lakes 434 11/5/99 $ 878 95.1% n/a n/a n/a n/a Lewiston Portfolio 3,106 10/29/97 $ 679 96.3% 95.5% 6.1% 7.0% 1.5% Macomb Manor 216 3/22/00 $ 631 96.9% n/a n/a n/a n/a Scotsdale 376 11/26/97 $ 646 96.7% 97.1% 5.2% 4.7% 2.8% Springwells Park 303 4/8/99 $ 928 95.1% 89.9% 3.5% 9.3% 17.9% -------- ------------- --------- -------- ------- ------- -------- Total Detroit Region 5,693 $ 701 96.1% 95.0% 5.5% 6.9% 3.4% INDIANA REGION Candlewood Apartments 310 2/10/98 $ 664 94.1% 88.3% 2.0% 8.7% 22.4% Maple Lane 396 7/9/99 $ 643 90.6% 93.9% 4.7% 1.2% 6.1% ------ ------------- -------- --------- ------- ------- ------- Total Indiana Region 706 $ 652 92.2% 91.4% 3.5% 4.3% 12.8% NORTHERN VIRGINIA REGION Braddock Lee 254 3/16/98 $ 874 90.3% 97.8% 9.3% 0.9% 9.1% Carriage Hill - VA 664 7/1/99 $ 772 95.0% 96.5% 3.5% 1.9% -4.5% East Meadow 150 8/1/00 $ 1,030 98.6% n/a n/a n/a n/a Elmwood Terrace 504 6/30/00 n/a n/a n/a n/a n/a n/a Laurel Pines 236 7/1/99 $ 735 90.9% 94.3% 8.1% 4.4% -8.5% The Manor 198 2/19/99 $ 789 93.3% 94.7% 11.0% 9.4% 40.2% Orleans Village 851 11/16/00 n/a n/a n/a n/a n/a n/a Park Shirlington 294 3/16/98 $ 906 95.6% 96.4% 8.6% 7.7% 12.1% Pavilion Apartments 432 7/1/99 $ 1,114 92.4% 96.6% 2.8% -1.7% -2.1% Riverdale 580 7/1/99 $ 604 93.2% 94.8% 5.6% 3.7% -9.6% Seminary Hill 296 7/1/99 $ 913 93.8% 94.3% 7.9% 7.3% 10.5% Seminary Towers 548 7/1/99 $ 935 92.9% 93.0% 9.2% 8.9% 13.2% -------- ------------ -------- -------- ------- ------- ------- Total No. Virginia Region 5,007 $ 746 93.3% 95.4% 6.6% 4.1% 3.4% CONNECTICUT REGION Apple Hill 498 3/27/98 $ 835 94.7% 96.6% 8.9% 6.7% 36.5% ------- ------------- -------- -------- -------- -------- -------- Total Connecticut Region 498 $ 835 94.7% 96.6% 8.9% 6.7% 36.5% BALTIMORE REGION Bonnie Ridge 966 7/1/99 $ 886 92.2% 90.6% 5.9% 7.8% 10.2% Canterbury Apartments 618 7/16/99 $ 644 96.9% 96.3% 4.7% 5.4% 0.4% Carriage House 50 4/30/98 $ 555 98.0% 95.8% 6.5% 9.0% 56.3% Country Club 150 7/16/99 $ 643 93.6% 88.5% 10.3% 16.7% 31.3% Apartments Country Village 344 4/30/98 $ 664 95.8% 95.8% 7.3% 7.6% 6.4% Doub Meadow 95 7/16/99 $ 596 96.6% 97.9% -0.5% -1.9% -26.9% Falcon Crest 396 7/16/99 $ 688 95.5% 83.5% 6.2% 21.4% 29.3% Gateway Village 132 7/16/99 $ 828 97.0% 98.6% 6.8% 5.1% 2.4% Morningside Heights 1,050 4/30/98 $ 634 94.7% 93.7% 6.6% 7.7% 5.3% Old Friends 51 2/1/00 $ 677 97.2% n/a n/a n/a n/a Owings Run 504 7/16/99 $ 880 95.2% 93.1% 3.7% 5.9% 3.8% Rolling Park 144 9/15/98 $ 678 90.8% 97.1% 8.7% 1.7% -5.1% Selford Townhomes 102 7/16/99 $ 847 95.7% 96.1% 9.4% 8.9% 13.3% Shakespeare Park 82 7/16/99 $ 611 99.3% 100.0% 5.5% 4.8% 11.0% Strawberry Hill 145 4/30/98 $ 588 90.9% 93.2% 5.9% 3.5% -3.5% Tamarron Apartments 132 7/16/99 $ 892 99.6% 98.1% 4.7% 6.2% 6.5% Timbercroft Townhomes 284 7/16/99 $ 624 99.4% 99.0% 2.3% 2.6% -0.4% Village Square 370 7/16/99 $ 731 98.0% 97.3% 8.9% 9.6% 12.0% Townhomes ------- ------------- --------- ------- ------- ------- ------- Total Baltimore Region 5,615 $ 725 95.1% 93.6% 5.8% 7.8% 7.2% CHICAGO REGION Blackhawk 371 10/20/00 n/a n/a n/a n/a n/a n/a Colonies 672 6/23/98 $ 612 94.9% 88.7% 6.8% 14.1% 35.3% Colony Apartments 783 9/1/99 $ 802 98.3% 98.2% 5.9% 5.9% -1.9% Cypress Place 192 12/27/00 n/a n/a n/a n/a n/a n/a --------- -------------- ------ ------ ----- ----- ----- Total Chicago Region 2,018 $ 714 96.9% 94.5% 6.3% 9.0% 10.6% PORTLAND, MAINE REGION Mill Co. Gardens 96 7/7/98 $ 562 97.3% 97.5% 8.1% 7.9% -3.7% Redbank Village 500 7/7/98 $ 622 92.4% 97.1% 8.9% 3.8% -0.1% --------- ------------- -------- --------- -------- ------- -------- Total Portland, Maine 596 $ 612 93.1% 97.1% 8.7% 4.4% -0.6% Region COLUMBUS, OHIO REGION Westin Gardens 242 7/7/98 $ 524 88.1% 89.0% 7.6% 6.7% 14.7% ------ ------------- --------- -------- -------- ------- -------- Total Columbus Region 242 $ 524 88.1% 89.0% 7.6% 6.7% 14.7% DELAWARE REGION Chestnut Crossing 432 7/16/99 $ 629 82.2% 95.7% 14.8% -1.3% -19.7% ------ ------------ -------- --------- -------- -------- ------- Total Delaware Region 432 $ 629 82.2% 95.7% 14.8% -1.3% -19.7% TOTAL OWNED PORTFOLIO 39,041 $ 744 94.7% n/a n/a n/a n/a TOTAL CORE PORTFOLIO 23,530 $ 717 94.9% 94.6% 5.8% 6.2% 5.8%
HOME PROPERTIES OWNED COMMUNITIES RESULTS YTD Through December 2000 YTD '00 versus YTD '99 % Growth # of Date YTD '00 YTD '00 Year Ago Rental Rental Apts. Acqu. Rent/Mo. Occup. Occup. Rates Revs. NOI -------- -------- -------- --------- -------- -------- ------- ------- Rochester, New York Region: 1600 East Avenue 164 9/18/97 $1,320 76.8% 80.5% -0.3% -4.9% 0.7% 1600 Elmwood 210 Original $ 823 92.8% 94.6% 5.8% 3.7% 9.9% Brook Hill 192 IPO $ 843 94.4% 93.0% 3.8% 5.4% 9.3% Finger Lakes Manor 153 Original $ 745 91.8% 92.2% 4.6% 4.3% 15.2% Hamlet Court 98 1/1/96 $ 659 94.6% 94.2% 3.8% 4.2% 3.9% Hill Court South 95 10/31/97 $ 607 96.5% 96.2% 3.9% 4.3% 16.7% Ivy Ridge 135 10/31/97 $ 603 95.7% 95.0% 4.3% 5.1% 8.7% Newcastle Apartments 197 Original $ 719 90.7% 95.8% 3.8% -1.7% -1.3% Northgate Manor 224 11/3/94 $ 650 85.6% 90.8% 3.7% -2.3% -11.6% Perinton Manor 224 Original $ 764 96.4% 96.1% 3.5% 3.9% 8.2% Pines of Perinton 508 9/29/98 $ 522 97.7% 99.1% 1.4% -0.2% 12.4% Riverton Knolls 240 Original $ 820 85.0% 86.4% 6.8% 5.0% 15.9% Spanish Gardens 220 IPO $ 641 94.4% 96.5% 3.7% 1.5% 1.3% Springcreek 82 Original $ 569 98.0% 96.8% 2.7% 3.9% 12.3% The Meadows 113 Original $ 641 95.5% 93.3% 4.2% 6.6% 18.0% Woodgate 120 6/30/97 $ 727 96.1% 96.3% 4.5% 4.3% 8.0% ------- ------- ------- ------- ------ ------ ------- Total Rochester Region 2,975 $ 718 91.5% 92.9% 3.5% 2.0% 7.4% BUFFALO, NEW YORK REGION: Emerson Square 96 10/15/97 $ 566 98.0% 98.6% 3.7% 2.8% 4.8% Fairways 32 10/15/97 $ 683 97.5% 97.2% 5.1% 5.4% 14.8% Garden Village 315 IPO $ 638 96.1% 97.1% 2.9% 1.7% -1.6% Idylwood 720 1/1/95 $ 594 95.6% 94.7% 2.9% 4.0% 11.4% Paradise Lane 324 10/15/97 $ 603 97.5% 96.1% 3.3% 4.8% 13.1% Raintree Island 504 Original $ 625 96.9% 96.9% 3.5% 3.4% 5.8% Williamstowne Village 528 Original $ 628 94.7% 91.4% 1.5% 5.1% 10.1% ------ ------- ------- ------- ------ ------ ------- Total Buffalo Region 2,519 $ 614 96.1% 95.1% 2.8% 3.9% 8.2% SYRACUSE, NEW YORK REGION: Candlewood Gardens 126 1/1/96 $ 518 96.5% 97.5% 4.0% 2.9% -1.8% Conifer Village 199 IPO $ 566 100.0% 100.0% 0.0% 0.0% -1.6% Fairview Heights 210 Original $ 780 94.0% 95.4% 5.0% 3.5% 6.8% Harborside Manor 281 9/30/94 $ 595 95.2% 95.0% 3.3% 3.7% 7.1% Pearl Street 60 5/17/95 $ 511 90.7% 90.0% 4.7% 5.7% 8.6% Village Green (inclu 448 12/19/94 $ 630 91.5% 94.1% 3.3% 0.3% -5.0% Fairways) Westminster Place 240 1/1/96 $ 576 96.3% 96.2% 4.5% 4.7% -0.7% ------- -------- --------- -------- ------- ------- -------- Total Syracuse Region 1,564 $ 614 94.6% 95.6% 3.5% 2.5% 0.5% LONG ISLAND, NY REGION Bayview / Colonial 160 11/1/00 n/a n/a n/a n/a n/a n/a Coventry Village 94 7/31/98 $ 994 96.6% 95.2% 9.2% 10.7% 17.8% East Winds 96 11/1/00 n/a n/a n/a n/a n/a n/a Lake Grove Apartments 368 2/3/97 $ 992 95.3% 95.9% 11.1% 10.5% 1.1% Maple Tree 84 11/1/00 n/a n/a n/a n/a n/a n/a Mid- Island Estates 232 7/1/97 $ 888 96.6% 94.3% 7.4% 10.0% 17.3% Ryder Terrace 24 11/1/00 n/a n/a n/a n/a n/a n/a South Bay Manor 61 9/11/00 n/a n/a n/a n/a n/a n/a Terry Apartments 65 11/1/00 n/a n/a n/a n/a n/a n/a --------- -------- --------- --------- -------- ------- -------- Total Long Island Region 1,184 $ 958 95.9% 95.3% 9.7% 10.3% 7.1% HUDSON VALLEY, NY REGION Carriage Hill 140 7/17/96 $ 837 95.8% 94.0% 4.0% 5.9% 2.2% Cornwall Park 75 7/17/96 $ 1,194 95.8% 94.2% 14.1% 16.1% 18.2% Lakeshore Villas 152 7/17/96 $ 708 93.1% 97.1% 10.3% 5.6% -11.1% Mountainside 227 7/7/98 $ 833 97.4% 97.8% 5.6% 5.1% 5.8% Patricia 100 7/7/98 $ 916 98.2% 97.8% 9.8% 10.2% 17.3% Sunset Gardens 217 7/17/96 $ 646 89.2% 93.1% 7.7% 3.0% -4.7% ------- --------- -------- --------- ------ -------- ------- Total Hudson Valley 911 $ 807 94.8% 95.8% 7.9% 6.7% 4.2% Region NEW JERSEY REGION East Hill Gardens 33 7/7/98 $ 910 98.6% 96.0% 9.9% 12.8% 19.2% Lakeview 106 7/7/98 $ 844 97.9% 95.3% 8.2% 11.2% 17.6% Oak Manor 77 7/7/98 $ 1,185 98.7% 96.9% 10.3% 12.4% 26.4% Pleasantview 1,142 7/7/98 $ 799 95.0% 94.4% 8.1% 8.7% 12.8% Pleasure Bay 270 7/7/98 $ 672 97.3% 94.6% 5.8% 8.8% 9.2% The Towers 137 7/7/98 $ 992 98.4% 96.5% 5.2% 7.4% 7.5% Wayne Village 275 7/7/98 $ 861 97.3% 96.0% 7.1% 8.5% 6.1% Windsor Realty 67 7/7/98 $ 805 94.6% 96.0% 7.8% 6.1% 2.3% Royal Gardens 550 5/28/97 $ 847 95.8% 94.7% 6.4% 7.7% 14.4% Apartments --------- --------- -------- -------- -------- -------- -------- Total New Jersey Region 2,657 $ 827 96.1% 95.0% 7.4% 8.6% 12.4% EASTERN PENNSYLVANIA REGION Arbor Crossing 134 7/28/99 $ 659 96.1% n/a n/a n/a n/a Beechwood Gardens 160 7/7/98 $ 625 95.7% 97.7% 4.3% 2.2% -2.1% Broadlawn 316 3/15/00 n/a n/a n/a n/a n/a n/a Castle Club 158 3/15/00 n/a n/a n/a n/a n/a n/a Cedar Glen 110 3/3/98 $ 462 91.6% 96.2% 3.8% -0.9% -15.1% Chesterfield 247 9/23/97 $ 714 95.5% 94.1% 7.5% 9.1% 15.9% Curren Terrace 318 9/23/97 $ 756 94.3% 96.6% 6.9% 4.5% 1.8% Executive House 100 9/23/97 $ 798 94.8% 92.9% 10.2% 12.6% 23.6% Glen Brook 173 7/28/99 $ 634 96.4% n/a n/a n/a n/a Glen Manor 174 9/23/97 $ 616 95.5% 96.6% 4.2% 3.0% 1.7% Golf Club 399 3/15/00 n/a n/a n/a n/a n/a n/a Hill Brook Place 274 7/28/99 $ 652 96.9% n/a n/a n/a n/a Lansdowne Group 222 9/23/97 $ 652 95.3% 95.8% 4.0% 3.5% -1.1% New Orleans Park 308 9/23/97 $ 657 94.6% 93.9% 7.4% 8.2% 11.2% Racquet Club 467 7/7/98 $ 802 96.1% 95.1% 4.3% 5.5% 11.1% Ridgeway Court 66 2/26/99 $ 645 92.6% n/a n/a n/a n/a Ridley Brook 244 7/28/99 $ 669 98.1% n/a n/a n/a n/a Sherry Lake 298 7/23/98 $ 888 96.4% 96.4% 7.5% 7.5% 10.5% Sherwood Gardens 103 5/27/99 $ 668 92.9% n/a n/a n/a n/a Springwood Garden 77 9/23/97 $ 629 92.3% 89.5% 5.7% 8.8% 18.9% Sugartown Mews 628 3/15/00 n/a n/a n/a n/a n/a n/a Trexler Park 249 3/15/00 n/a n/a n/a n/a n/a n/a Valley Park South 384 11/25/96 $ 792 95.6% 95.4% 6.3% 6.5% 8.1% Valley View 176 9/23/97 $ 688 92.6% 89.0% 6.5% 10.8% 17.7% Village Square 128 9/23/97 $ 733 94.8% 95.0% 12.8% 12.8% 23.6% William Henry 363 3/15/00 n/a n/a n/a n/a n/a n/a -------- --------- ------- --------- -------- -------- -------- Total Eastern Penn. 6,276 $ 711 95.4% 95.0% 6.3% 6.6% 8.7% Region WESTERN PENNSYLVANIA REGION Cloverleaf Village 148 11/4/97 $ 572 89.4% 88.6% 6.9% 7.8% 6.3% ------ ---------- -------- --------- ---------- ------- ------- Total Western Penn. 148 $ 572 89.4% 88.6% 6.9% 7.8% 6.3% Region DETROIT, MICHIGAN REGION Bayberry Place 120 9/30/00 n/a n/a n/a n/a n/a n/a Carriage Hill 168 9/29/98 $ 720 98.1% 97.8% 4.8% 5.2% 10.7% Carriage Park 256 9/29/98 $ 671 96.2% 95.0% 4.4% 5.6% 1.8% Cherry Hill Club 164 7/7/98 $ 587 95.8% 90.4% 4.6% 10.8% 26.7% Cherry Hill Village 224 9/29/98 $ 656 96.3% 96.4% 6.0% 5.7% 7.3% Deerfield Woods 144 3/22/00 n/a n/a n/a n/a n/a n/a Hampton Court 182 9/30/00 n/a n/a n/a n/a n/a n/a The Lakes 434 11/5/99 $ 859 96.1% n/a n/a n/a n/a Lewiston Portfolio 3,106 10/29/97 $ 664 95.6% 95.8% 5.7% 5.5% 6.0% Macomb Manor 216 3/22/00 n/a n/a n/a n/a n/a n/a Scotsdale 376 11/26/97 $ 635 97.2% 96.2% 5.5% 6.6% 10.7% Springwells Park 303 4/8/99 $ 917 95.1% n/a n/a n/a n/a --------- --------- ---------- -------- ------- -------- -------- Total Detroit Region 5,693 $ 693 95.9% 95.7% 5.6% 5.8% 6.9% INDIANA REGION Candlewood Apartments 310 2/10/98 $ 660 91.3% 90.4% 3.3% 4.2% -1.9% Maple Lane 396 7/9/99 $ 629 89.5% n/a n/a n/a n/a ------- ---------- -------- -------- -------- ------- ------- Total Indiana Region 706 $ 643 90.3% 90.4% 3.3% 4.2% -1.9% NORTHERN VIRGINIA REGION Braddock Lee 254 3/16/98 $ 839 94.1% 97.1% 7.6% 4.2% 2.4% Carriage Hill - VA 664 7/1/99 $ 763 95.0% n/a n/a n/a n/a East Meadow 150 8/1/00 n/a n/a n/a n/a n/a n/a Elmwood Terrace 504 6/30/00 n/a n/a n/a n/a n/a n/a Laurel Pines 236 7/1/99 $ 710 90.8% n/a n/a n/a n/a The Manor 198 2/19/99 $ 754 93.3% n/a n/a n/a n/a Orleans Village 851 11/16/00 n/a n/a n/a n/a n/a n/a Park Shirlington 294 3/16/98 $ 872 95.7% 96.5% 7.5% 6.6% 4.4% Pavilion Apartments 432 7/1/99 $1,115 95.1% n/a n/a n/a n/a Riverdale 580 7/1/99 $ 592 92.7% n/a n/a n/a n/a Seminary Hill 296 7/1/99 $ 886 94.1% n/a n/a n/a n/a Seminary Towers 548 7/1/99 $ 896 94.2% n/a n/a n/a n/a ---------- ---------- -------- -------- -------- -------- -------- Total No. Virginia Region 5,007 $ 820 94.2% 96.8% 7.5% 5.6% 3.5% CONNECTICUT REGION Apple Hill 498 3/27/98 $ 804 95.2% 96.4% 7.1% 5.8% 13.6% -------- ---------- -------- --------- -------- ------- -------- Total Connecticut Region 498 $ 804 95.2% 96.4% 7.1% 5.8% 13.6% BALTIMORE REGION Bonnie Ridge 966 7/1/99 $ 863 87.7% n/a n/a n/a n/a Canterbury Apartments 618 7/16/99 $ 628 96.5% n/a n/a n/a n/a Carriage House 50 4/30/98 $ 537 96.3% 97.8% 4.7% 3.0% 11.2% Country Club 150 7/16/99 $ 623 92.1% n/a n/a n/a n/a Apartments Country Village 344 4/30/98 $ 645 94.7% 95.1% 5.9% 5.5% 2.1% Doub Meadow 95 7/16/99 $ 587 97.6% n/a n/a n/a n/a Falcon Crest 396 7/16/99 $ 674 89.0% n/a n/a n/a n/a Gateway Village 132 7/16/99 $ 804 98.1% n/a n/a n/a n/a Morningside Heights 1,050 4/30/98 $ 617 92.9% 93.3% 5.7% 5.3% 4.7% Old Friends 51 2/1/00 n/a n/a n/a n/a n/a n/a Owings Run 504 7/16/99 $ 860 93.3% n/a n/a n/a n/a Rolling Park 144 9/15/98 $ 654 95.5% 97.5% 7.9% 5.6% 3.0% Selford Townhomes 102 7/16/99 $ 814 96.1% n/a n/a n/a n/a Shakespeare Park 82 7/16/99 $ 616 98.8% n/a n/a n/a n/a Strawberry Hill 145 4/30/98 $ 573 92.9% 94.5% 4.8% 2.9% -3.5% Tamarron Apartments 132 7/16/99 $ 875 98.7% n/a n/a n/a n/a Timbercroft Townhomes 284 7/16/99 $ 623 99.5% n/a n/a n/a n/a Village Square 370 7/16/99 $ 704 97.4% n/a n/a n/a n/a Townhomes ---------- ---------- --------- --------- -------- --------- ------- Total Baltimore Region 5,615 $ 708 93.2% 94.3% 5.8% 5.1% 3.7% CHICAGO REGION Blackhawk 371 10/20/00 n/a n/a n/a n/a n/a n/a Colonies 672 6/23/98 $ 602 91.3% 85.1% 6.0% 13.4% 39.3% Colony Apartments 783 9/1/99 $ 782 98.0% n/a n/a n/a n/a Cypress Place 192 12/27/00 n/a n/a n/a n/a n/a n/a --------- ---------- ---------- --------- -------- --------- -------- Total Chicago Region 2,018 $ 699 95.3% 85.1% 6.0% 13.4% 39.3% PORTLAND, MAINE REGION Mill Co. Gardens 96 7/7/98 $ 546 97.3% 97.0% 7.9% 8.4% 10.0% Redbank Village 500 7/7/98 $ 604 94.4% 95.4% 9.2% 8.0% 7.4% ------- ---------- --------- -------- ------- -------- -------- Total Portland Region 596 $ 595 94.8% 95.7% 9.2% 8.0% 7.8% COLUMBUS, OHIO REGION Westin Gardens 242 7/7/98 $ 513 88.9% 92.5% 9.9% 5.6% -4.8% ------ --------- --------- --------- ------- ------- ------- Total Columbus Region 242 $ 513 88.9% 92.5% 9.9% 5.6% -4.8% DELAWARE REGION Chestnut Crossing 432 7/16/99 $ 592 88.6% n/a n/a n/a n/a ------- --------- -------- ------- ------- ------- ------ Total Delaware Region 432 $ 592 88.6% n/a n/a n/a n/a TOTAL OWNED PORTFOLIO 39,041 $ 723 94.5% n/a n/a n/a n/a TOTAL CORE PORTFOLIO 23,530 $ 701 94.7% 94.6% 5.7% 5.8% 7.6%
HOME PROPERTIES OF NEW YORK, INC. December 31, 2000 and 1999 Supplemental Information SAME STORE OPERATING EXPENSE DETAIL 4th Qtr 4th Qtr YEAR YEAR 2000 1999 QUARTER % 2000 1999 YEAR % ACTUAL ACTUAL VARIANCE VARIANCE ACTUAL ACTUAL VARIANCE VARIANCE ------- ------ -------- -------- ------ ------ -------- -------- ELECTRICITY 878 873 (5) -0.6% 3,788 3,688 (100) -2.7% GAS 2,713 2,025 (688) -34.0% 8,557 7,705 (852) -11.1% WATER & SEWER 1,357 1,307 ( 50) -3.8% 5,408 5,274 (134) -2.5% REPAIRS & 3,601 3,752 151 4.0% 13,470 13,433 (37) -0.3% MAINTENANCE PERSONNEL EXPENSE 5,165 4,551 (614) -13.5% 20,733 19,485 (1,248) -6.4% SITE LEVEL 227 92 (135) -146.7% 761 342 (419) -122.5% INCENTIVE COMPENSATION ADVERTISING 947 895 (52) -5.8% 3,368 3,341 (27) -0.8% GROUND RENT 53 51 (2) -3.9% 205 196 ( 9) -4.6% LEGAL & 187 161 (26) -16.1% 560 532 (28) -5.3% PROFESSIONAL OFFICE & 745 732 (13) -1.8% 2,594 2,416 (178) -7.4% TELEPHONE % RENT 56 48 ( 8) -16.7% 246 203 ( 43) -21.2% PROPERTY INS. 410 226 (184) -81.4% 1,099 780 (319) -40.9% REAL ESTATE 5,306 5,122 (184) -3.6% 20,799 20,038 (761) -3.8% SNOW 141 48 ( 93) -193.8% 602 666 64 9.6% TRASH 408 393 ( 15) -3.8% 1,566 1,471 ( 95) -6.5% ------- -------- ------- -------- ------ ------ ------ ------- TOTAL 22,194 20,276 (1,918) -9.5% 83,756 79,570 (4,186) -5.3% ===== ======== ======= ======== ====== ====== ====== =======
HOME PROPERTIES OF NEW YORK, INC. DECEMBER 31, 2000 AND 1999 SUPPLEMENTAL INFORMATION BREAKDOWN OF "OTHER INCOME"
Q4 '00 Q4 '99 YTD '00 YTD '99 ---------- -------- ---------- ---------- RECOGNIZED DIRECTLY BY HOME PROPERTIES - -------------------------------------- Recognized directly by Home Properties: Management fees 486 472 1,794 1,652 Development fees 352 135 850 736 Other 114 249 201 358 ------------ ------------ ----------- ---------- Sub-total 952 856 2,845 2,746 Management Companies (95% interest, see below) (279) (174) (1,792) 156 ------------ ------------ ------------ ---------- Total Other Income 673 682 1,053 2,902 =========== =========== ============ ========== Management Companies detail: - --------------------------- Management fees 894 857 3,622 3,684 Development fees 828 1,738 3,991 5,567 Misc 28 16 94 94 General & Administrative (1,683) (2,190) (7,364) (7,449) Interest expense (512) (476) (1,937) (1,242) Depreciation (125) (99) (470) (358) Taxes 276 (29) 178 (132) ------------ ---------- ----------- -------- (294) (183) (1,886) 164 =========== ========== ========== ========= 95% to Home Properties (279) (174) (1,792) 156 ========== ========== ========== ========= Combined Management/Development Activity: - --------------------------------------- Management fees 1,380 1,329 5,416 5,336 Development fees 1,180 1,873 4,841 6,303 COMBINED EBITDA 1,019 1,277 3,188 4,642 ========= ========== ========= ========
HOME PROPERTIES OF NEW YORK, INC. December 31, 2000 and 1999 Supplemental Information Summary of Recent Acquisitions Wgtd. Avg. Purchase # of Purchase Price Per Community Market State Date Units Price (mm) Unit Cypress Place Chicago IL 12/27/00 192 $10.10 $52,604 Orleans Village NoVA/DC VA 11/16/00 851 $67.40 $79,201 Figoni - 5 properties Long Island NY 11/1/00 429 $26.50 $61,772 Blackhawk Apartments Chicago IL 10/20/00 371 $17.50 $47,170 Bayberry Detroit MI 9/29/00 120 $5.70 $47,500 Hampton Court Detroit MI 9/29/00 182 $6.00 $32,967 Southbay Manor Long Island NY 9/11/00 61 $3.00 $49,180 East Meadow NoVA/DC VA 8/1/00 150 $13.00 $86,667 Elmwood Terrace Baltimore MD 6/30/00 504 $20.60 $40,873 Shostack - 2 properties Detroit MI 3/22/00 360 $14.40 $40,000 Gateside - 6 properties Philadelphia PA 3/15/00 2,113 $135.90 $64,316 Old Friends Baltimore MD 2/1/00 51 $2.00 $39,216 TOTAL YTD 5,384 $322.10 $59,825 Lakes, The Southfield MI 11/5/99 434 $26.00 $59,908 Colony, The Mt. Prospect IL 9/1/99 783 $41.80 $53,384 Ridley Philadelphia PA 7/28/99 825 $32.30 $39,152 Mid-Atlantic MD & DE MD/DE 7/15/99 3,297 $157.50 $47,771 Maple Lane South Bend IN 7/9/99 396 $17.40 $43,939 CRC Baltimore MD 7/1/99 3,722 $180.60 $48,522 Sherwood Gardens Levittown PA 5/27/99 103 $4.10 $39,806 Springwell Park Dearborn MI 4/8/99 303 $18.20 $60,066 Ridgeway Court Yeadon PA 2/26/99 66 $2.15 $32,576 Manor, The Levittown PA 2/19/99 198 $7.20 $36,364 TOTAL 10,127 $487.25 $48,114 TOTAL 1999 and 2000 15,511 $809.35 $52,179 Acquisitions
HOME PROPERTIES OF NEW YORK, INC. DECEMBER 31, 2000 AND 1999 SUPPLEMENTAL INFORMATION
BREAKDOWN OF OWNED UNITS BY MARKET NET NET ACQUIRED AS OF 12/31/99 ACQUIRED AS OF 12/31/00 MARKET ST IN 1999 12/31/99 % OF UNITS IN 2000 12/31/00 % OF UNITS ------------ ----- --------------- ------------ --------------- ----------- ----------- ------------- CONNECTICUT CT 0 498 1.47% 0 498 1.28% DELAWARE DE 432 432 1.28% 0 432 1.11% CHICAGO IL 783 1,455 4.30% 563 2,018 5.17% SOUTH BEND IN 396 706 2.09% 0 706 1.81% BALTIMORE MD 3,831 6,232 18.43% 555 6,787 17.38% PORTLAND ME 0 596 1.76% 0 596 1.53% DETROIT MI 737 5,031 14.88% 662 5,693 14.58% NORTHERN NJ -256 2,657 7.86% 0 2,657 6.81% BUFFALO NY 0 2,519 7.45% 0 2,519 6.45% SYRACUSE NY 0 1,564 4.63% 0 1,564 4.01% ROCHESTER NY 0 2,975 8.80% 0 2,975 7.62% LONG ISLAND NY 0 694 2.05% 490 1,184 3.03% HUD VALLEY NY 0 911 2.69% 0 911 2.33% NORTH/CENTRAL OH 0 242 0.72% 0 242 0.62% PITTSBURGH PA 0 298 0.88% -150 148 0.38% EASTERN PA 1,192 4,163 12.31% 2,113 6,276 16.08% DC/NO. VA DC 1,512 1,590 4.70% 1,001 2,591 6.64% CENTRAL VA 1,244 1,244 3.68% 0 1,244 3.19% --------- ---------- ---------- --------- --------- ---------- TOTAL 9,871 33,807 100.0% 5,234 39,041 100.0% TOTAL NY STATE 0 8,663 25.6% 490 9,153 23.4% TOTAL UPSTATE, NY 0 7,058 20.9% 0 7,058 18.1% TOTAL MID-ATLANTIC 7,955 16,616 49.1% 3,519 20,135 51.6%
HOME PROPERTIES OF NEW YORK, INC. DECEMBER 31, 2000 SUPPLEMENTAL INFORMATION DEBT SUMMARY SCHEDULE
FIXED MATURITY YEARS TO PROPERTY LENDER RATE BALANCE DATE MATURITY - ---------------- -------------- ------ ------------ ------- --------- SPRINGWOOD AMEX/IDS 8.5000 1,404,305 11/01/01 0.84 VALLEY VIEW AMEX/IDS 8.5000 3,183,672 11/01/01 0.84 ROYAL GARDENS First Union Nat'l Bank 7.6600 11,085,842 08/01/02 1.58 THE COLONY John Hancock 7.6000 15,865,587 08/01/02 1.58 BAYBERRY AMEX/IDS 9.7500 2,516,214 10/01/02 1.75 VILLAGE GREEN John Hancock 7.7500 4,592,286 11/01/02 1.84 GARDEN VILLAGE John Hancock 7.7500 4,408,594 11/01/02 1.84 BROOK HILL John Hancock 7.7500 4,684,131 11/01/02 1.84 1600 ELMWOOD John Hancock 7.7500 5,143,360 11/01/02 1.84 TERRY North Fork Bank 7.7500 1,926,114 05/01/03 2.33 BROADLAWN Capri Capital 8.1700 11,799,141 08/01/03 2.58 ELMWOOD TERRACE John Hancock 8.2500 4,631,200 11/01/03 2.84 RACQUET CLUB Green Park Fin (Fannie) 7.6250 11,783,054 11/01/03 2.84 CURREN TERRACE GMAC 8.3550 9,291,357 11/01/03 2.84 ROLLING PARK Allfirst Mtg 7.8750 2,737,103 11/01/03 2.84 SHERRY LAKE GMAC 7.8750 6,264,308 01/01/04 3.00 GLEN MANOR AMEX/IDS 8.1250 3,586,087 05/01/04 3.33 COLONIES Capri Capital 8.8750 12,057,936 05/01/04 3.33 CASTLE CLUB Legg Mason RE 9.5500 3,702,375 03/01/05 4.17 WILLIAM HENRY Legg Mason RE 7.6400 14,180,332 10/01/05 4.75 IDLYWOOD Morgan Guaranty 8.6250 9,120,841 11/01/05 4.84 BAYVIEW/COLONIAL Midland Loan 8.3500 6,131,493 11/01/05 4.84 CARRIAGE HILL - MI Prudential - Fannie Mae 7.3600 3,761,464 01/01/06 5.01 CARRIAGE PARK Prudential - Fannie Mae 7.4800 5,420,643 01/01/06 5.01 CHERRY HILL Prudential - Fannie Mae 7.9900 4,424,968 01/01/06 5.01 MID-ISLAND North Fork Bank 7.5000 6,675,000 05/01/06 5.33 NEWCASTLE Presidential Funding 7.9000 6,000,000 07/31/06 5.58 COUNTRY VILLAGE PW Funding 8.3850 6,536,619 08/01/06 5.59 HAMPTON COURT ORIX RE Capital 8.8750 3,586,556 09/01/06 5.67 RAINTREE Capitalized Lease 8.5000 6,182,678 11/01/06 5.84 WOODGAGE PLACE ARCS Mortgage 7.8650 3,367,653 01/01/07 6.01 STRAWBERRY HILL PW Funding 8.2550 2,033,330 05/01/07 6.33 SEMINARY TOWERS - 1ST First Union Nat'l Bank 8.2200 2,603,261 07/01/07 6.50 SEMINARY TOWERS - 2nd First Union Nat'l Bank 8.4000 2,268,339 07/01/07 6.50 PAVILION - 2nd Capri Capital 7.4500 3,883,184 01/01/08 7.01 MAPLE LANE APTS - II AMI Capital 7.2050 5,894,223 01/01/08 7.01 VALLEY PARK S Capri Capital 6.9300 9,848,041 01/01/08 7.01 CYPRESS PLACE Reilly Mortgage 7.1300 6,589,341 01/01/08 7.01 HAMLET COURT HSBC Bank 7.1100 1,736,454 02/01/08 7.09 CANDLEWOOD, IND Morgan Guaranty 7.0200 7,642,804 02/01/08 7.09 DETROIT PORTFOLIO Morgan Guaranty 7.5100 47,710,320 06/01/08 7.42 CANTERBURY - 4 Allfirst Mtg 7.6700 2,154,110 06/01/08 7.42 SHERWOOD GARDENS Legg Mason RE 6.9800 3,028,721 07/01/08 7.50 GOLF CLUB ARCS Mortgage 6.5850 16,906,548 12/01/08 7.92 MANSION HOUSE 1st Niagara Bank 7.5000 680,338 01/01/09 8.01 RIDLEY PORTFOLIO Klorfine et. al. 8.000 15,750,000 07/28/09 8.58 OLD FRIENDS M and T Bank 6.7300 2,377,754 08/01/09 8.59 MULTI-PROPERTY M & T Bank - Freddie 7.5750 45,400,000 05/01/10 9.34 CONIFER VILLAGE Baldwin Devl'p Corp. 7.2000 2,445,000 06/01/10 9.42 SUGARTOWN MEWS Prudential - Fannie Mae 7.5000 28,892,000 10/01/10 9.76 TREXLER PARK Prudential - Fannie Mae 7.5000 10,140,000 10/01/10 9.76 RIDGEWAY GMAC 8.3750 1,103,705 11/01/10 9.84 MULTI-PROPERTY Prudential - Fannie Mae 7.2500 32,978,000 01/01/11 10.01 MULTI-PROPERTY Prudential - Fannie Mae 6.1600 58,881,000 01/01/11 10.01 ORLEANS VILLAGE Prudential - Fannie Mae 6.8150 43,745,000 01/01/11 10.01 TIMBERCROFT TH's 1-1ST GMAC 8.5000 898,552 05/01/11 10.34 TIMBERCROFT TH's 3-1ST GMAC 8.0000 1,209,046 02/01/12 11.09 VILLAGE SQUARE 3 DP Service 7.0000 999,951 11/01/12 11.94 MORNINGSIDE/ CARRIAGE HL Morgan Guaranty 6.9900 19,737,389 05/01/13 12.34 MULTI-PROPERTY Prudential - Fannie Mae 6.4750 100,000,000 08/31/13 12.67 DEERFIELD WOODS GE Financial 7.0000 3,412,548 01/01/14 13.01 SPRINGWELLS AMEX/IDS 8.0000 11,344,915 07/01/15 14.51 PINES OF PERINTON NYS Urban Development 8.5000 8,462,663 05/01/18 17.34 CANTERBURY I -2nd Allfirst Mtg 8.5000 1,299,519 06/01/18 17.43 CANTERBURY I I- 2nd Allfirst Mtg 8.5000 1,076,015 06/01/18 17.43 CANTERBURY I I I- 2nd Allfirst Mtg 8.5000 613,987 06/01/18 17.43 CANTERBURY I -1st GMAC 7.5000 3,658,956 06/01/18 17.43 PAVILION -1ST Capri Capital 8.0000 8,714,731 11/01/18 17.85 BONNIE RIDGE Prudential 6.6000 18,969,337 12/15/18 17.97 TIMBERCROFT TH's 3-2nd Allfirst Mtg 8.3750 3,402,089 06/01/19 18.43 TIMBERCROFT TH'S 1-2nd Allfirst Mtg 8.3750 2,309,787 06/01/19 18.43 CANTERBURY I I - 1st HUD 7.5000 3,638,010 09/01/19 18.68 VILLAGE GREEN, FW ARCS Mortgage 8.2300 4,261,039 10/10/19 18.76 RAINTREE Leasehold Mortgage 8.5000 1,139,166 04/30/20 19.34 CHESTNUT CROSSING Reilly Mortgage 9.3400 9,808,778 07/01/20 19.51 MACOMB MANOR EF&A Funding 8.6300 4,022,688 06/01/21 20.43 VILLAGE SQUARE 1&2 Continental Wingage 8.1250 6,488,420 08/01/21 20.60 DOUB MEADOW Dovenmuehle Mtg 7.5000 2,862,678 10/01/21 20.76 CANTERBURY III-1st Dovenmuehle Mtg 7.5000 2,539,079 11/01/21 20.85 SHAKESPEARE PARK Reilly Mortgage 7.5000 2,592,960 01/01/24 23.02 GATEWAY VILLAGE Capri Capital 8.0000 6,356,512 05/01/30 29.35 BLACKHAWK Capstone Realty 7.6500 10,693,556 10/01/31 30.77 OWINGS RUN 1 Reilly Mortgage 8.0000 17,579,811 10/01/35 34.77 OWINGS RUN 2 Prudential Huntoon 8.0000 14,653,115 06/01/36 35.44 ---------- WTD AVG - FIXED SECURED 7.41 823,487,571 10.77 ------------ % OF PORTFOLIO - FIXED 98.9%
VARIABLE SECURED - -------------------------- MAPLE LANE - I - Civitas Bank 5.100 6,245,000 07/27/07 6.57 Eqv. Bond Yield Adjusts Weekly SPRINGCREEK Silver 9.5000 3,050,129 08/01/04 3.59 Adjust Monthly @ P+1/2 ------------ WTD AVG-VARIABLE SECURED 6.54 9,295,129 5.59 WTD AVG-TOTAL SECURED 7.40 832,782,700 10.72 DEBT
VARIABLE UNSECURED - LINE OF CREDIT - ----------------------------
LINE OF CREDIT-Libor+125 M and T Bank et. al. 7.8100 0 09/01/02 1.67 Adjusts Daily WTD AVG-COMBINED DEBT 7.40 832,782,700 10.72 ============ WTG AVG - TOTAL SECURED DEBT 7.40 10.72 WTD AVG - TOTAL PORTFOLIO 7.40 10.72
FREE & CLEAR PROPERTIES - ----------------------------
1600 East Avenue 164 Ivy Ridge 135 Beechwood Gardens 160 Lake Grove Apartments 368 Candlewood Gardens 126 Lakeshore Villas 152 Carriage Hill - NY 140 Manor Apartments 198 Cedar Glen 110 Maple Tree 84 Cloverleaf Village 148 Paradise Lane 324 Cornwall Park 75 Patricia Apts - NY 100 Coventry Village Apts 94 Pearl Street 60 East Hill Gardens 33 Ryder Terrace 24 East Meadow 150 Selford Townhomes 102 East Winds 96 Seminary Hill 296 Emerson Square 96 South Bay Manor 61 Fairway Apartments 32 Sunset Gardens 217 Falcon Crest Townhous 396 The Lakes 434 Hillcourt South 95 TOTAL FREE AND CLEAR PROPERTIES: 29 UNITS: 4,470
HOME PROPERTIES OF NEW YORK,INC. December 31, 2000 Supplemental Information
Net Asset Value Calculation - --------------------------- Cap Rate (after 3% G&A, before 9.00% 9.25% 9.5% 9.75% 10.00% capital expenditures) --------- --------- --------- --------- --------- 4th QTR 2000 - ------------ Rent 80,821 80,821 80,821 80,821 80,821 Property other income 3,309 3,309 3,309 3,309 3,309 Operating & maintenance expense (35,172) (35,172) (35,172) (35,172) (35,172) -------- -------- ---------- -------- --------- Property NOI 48,958 48,958 48,958 48,958 48,958 Adjustment for 4th QTR acq/dispositions 1,284 1,284 1,284 1,284 1,284 ------- -------- ---------- -------- -------- Effective 4th QTR "run rate" 50,242 50,242 50,242 50,242 50,242 Annualized(4th qtr=25.2% due to 199,373 199,373 199,373 199,373 199,373 seasonality) NOI growth for next 12 months 7,975 7,975 7,975 7,975 7,975 @ 4% G & A @ 3% of gross revenues (10,096) (10,096) (10,096) (10,096) (10,096) -------- --------- --------- --------- --------- Adjusted NOI 197,252 197,252 197,252 197,252 197,252 Real estate value using above cap rate 2,191,693 2,132,458 2,076,341 2,023,101 1,972,524 Property Management activities - (2000 EBITDA / .15 ) 16,407 16,407 16,407 16,407 16,407 Cash 10,449 10,449 10,449 10,449 10,449 Other assets 119,494 119,494 119,494 119,494 119,494 Less: Investment in Mgt Co (incl above) 1,516 1,516 1,516 1,516 1,516 [negative balance] Deferred charges (3,825) (3,825) (3,825) (3,825) (3,825) Goodwill (7,501) (7,501) (7,501) (7,501) (7,501) Gross Value 2,328,233 2,268,998 2,212,880 2,159,641 2,109,063 Less liabilities (882,083) (882,083) (882,083) (882,083 ) (882,083) Net Asset Value 1,446,150 $1,386,915 $1,330,797 $1,277,558 $1,226,980 PER SHARE/UNIT - FULLY DILUTED $ 32.47 $ 31.14 $ 29.88 $ 28.69 $ 27.55 44,532.6 shares ======= ======= ========= ========= ========== Economic CAP rate (after cap ex reserve of $375 per unit) 8.33% 8.56% 8.80% 9.03% 9.26%
ADJUSTMENT FOR ACQUISITIONS/DISPOSITIONS:
Initial Quarterly # of days Unleveraged Missing Property Price Date Return NOI In Quarter Adj ------ ----- ----------- ----------- ------------ ----------- Blackhawk 17,500 10/20/00 10.0% 438 19 90 Figoni Portfolio 26,500 11/1/00 9.2% 610 31 205 Orleans Village 67,400 11/16/00 9.0% 1,517 46 758 Cypress Place 10,100 12/27/00 9.4% 237 88 227 Misc from disposition 3 1,284 ======
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