WAYNE, PA--(Marketwire - November 4, 2010) - November 4, 2010 -- U-Store-It Trust (
NYSE:
YSI)
announced its operating results for the three and nine months ended
September 30, 2010. "Our third quarter was successful on several fronts.
We amended our credit facility and unencumbered a significant portion of
our assets. We acquired three, high-quality facilities and our same-store
portfolio posted 1.4% revenue growth with an average physical occupancy of
77.9%, representing a 170 basis point gain over last year. Despite
operating in what continues to be a challenging economic environment, our
revenue growth reflects our resilient portfolio and sector, as well as our
ability to capture more than our share of the self-storage consumer
demand," said Dean Jernigan, Chief Executive Officer of U-Store-It.
Key Metrics for the Quarter and Nine Months Ended September 30, 2010
-- Funds from Operations ("FFO")
-- FFO of $0.13 per share for the three months ended September 30,
2010 compared to our expectation entering the quarter of $0.12 to
$0.13 per share.
-- Weighted Average Shares and Units Outstanding
-- Weighted average shares and units outstanding were 99.6 million and
81.1 million for the third quarter of 2010 and 2009, respectively.
-- Same-store Revenue (363 same-store facilities)
-- 3rd quarter - Same-store total revenue increased 1.4% from the
third quarter of 2009.
-- Nine months ended - Same-store total revenue decreased 0.8% in 2010
over 2009.
-- Same-store Property Operating Expenses
-- 3rd quarter - Same-store property operating expenses increased 2.9%
due to the timing of advertising costs when compared to the third
quarter of 2009.
-- 3rd quarter - Same-store property operating expenses excluding
advertising expense decreased 1.0% when compared to the third
quarter of 2009.
-- Nine months ended - Same-store property operating expenses
decreased 1.5% from 2009 to 2010.
-- Same-store Net Operating Income ("NOI")
-- 3rd quarter - Same-store NOI increased 0.5% from the third quarter
of 2009.
-- Nine months ended - Same-store NOI decreased 0.4% from the first
nine months of 2009.
-- Realized Annual Rent
-- 3rd quarter - Same-store realized annual rent per occupied square
foot decreased to $10.98 or 1.1% compared to the third quarter of
2009.
-- Nine months ended - Same-store realized annual rent per occupied
square foot decreased to $10.97 or 1.8% compared to 2009.
-- Same-store Physical Occupancy
-- At September 30, 2010, ending physical occupancy increased 170
basis points to 77.4% compared to 75.7% at September 30, 2009.
-- 3rd quarter - Average physical occupancy was 77.9% for the third
quarter of 2010 on the same-store facilities, an increase of 150
basis points compared to 76.4% for the third quarter of 2009.
-- Nine months ended - Average physical occupancy was 76.5% for the
nine months ended September 30, 2010 on the same-store facilities
compared to 76.2% for the nine months ended September 30, 2009.
-- Average sequential quarterly occupancy increased 140 basis points
(77.9% for the third quarter of 2010 compared to 76.5% for the
second quarter of 2010) compared to an increase of 100 basis points
in the same period last year (76.4% for the third quarter of 2009
compared to 75.4% for the second quarter of 2009).
-- Investment Activity
-- Acquisitions - The Company acquired three storage facilities during
the quarter for an aggregate investment of $33.4 million.
-- Dispositions - The Company sold one asset subsequent to quarter end
for $3.1 million.
-- Third Party Management
-- At September 30, 2010, the Company managed 122 properties totaling
8.1 million square feet. The Company had 6 properties under
management as of September 30, 2009.
-- 3rd quarter - $1.0 million of management fee revenue was generated
during the quarter.
"Our third quarter investment activity reflects the continuing execution of
our plan to cycle capital out of lower growth markets into higher growth,
high barrier to entry markets that offer the best long-term prospects. We
acquired two self-storage assets in the boroughs of New York City and one
asset in suburban Dallas," said Christopher Marr, President and Chief
Investment Officer. "These acquisitions were fully funded with available
cash and proceeds from our at-the-market equity program, increasing the
size and quality of our unencumbered asset pool and modestly deleveraging
our balance sheet. We have 9 facilities under contract with a total
potential investment of approximately $54 million. Assuming satisfactory
completion of due diligence and other closing conditions, the closings of
these potential acquisitions will take place prior to year-end resulting in
2010 acquisitions totaling 12 assets for an aggregate investment of $87.5
million."
Funds from Operations
FFO for the third quarter of 2010 was $13.1 million, compared to $14.4
million for the third quarter of 2009. FFO per share was $0.13 per share
for the third quarter of 2010, compared to $0.18 per share for the same
quarter of last year. Weighted average common shares and operating
partnership units outstanding were 99.6 million for the third quarter of
2010, compared to 81.1 million for the third quarter of 2009.
Operating Results
The Company reported a net loss attributable to the Company of $1.5 million
or $0.02 per common share in the third quarter of 2010, compared to a net
income attributable to the Company of $6.8 million or $0.09 per common
share in the third quarter of 2009. Total revenues increased $2.4 million
and total property operating expenses increased $1.5 million in the third
quarter of 2010, compared to the same period in 2009. Increases in total
revenues are attributable to increased occupancy levels in the same-store
portfolio and revenues generated from our third-party management business
during the 2010 period as compared to the 2009 period. Increases in
property operating expenses are attributable to increases in advertising
and other expenses.
Interest expense decreased approximately $2.4 million in the third quarter
of 2010, compared to the third quarter of 2009, primarily resulting from
the payoff of $106.7 million of loans during 2010, and lower interest rates
on the credit facility during the third quarter of 2010 as compared to the
same period in 2009 resulting in an overall decrease in interest expense.
Loan procurement amortization expense increased approximately $1.1 million
in the third quarter of 2010, compared to the third quarter of 2009, due to
loan procurement cost amortization associated with the $450 million Secured
Credit Facility that closed in December of 2009 and the additional $116.1
million of secured property level loans the Company obtained during 2009.
The Company's 370 owned facilities, containing 23.9 million rentable square
feet, had a physical occupancy at September 30, 2010 of 77.5% and an
average physical occupancy for the quarter ended September 30, 2010 of
77.9%.
Same-Store Results
The Company's same-store pool at September 30, 2010 represented 363
facilities containing approximately 23.5 million rentable square feet and
included approximately 98.3% of the aggregate rentable square feet of the
Company's 370 owned facilities. These same-store facilities represent
approximately 98.6% of property net operating income for the quarter ended
September 30, 2010.
The same-store average physical occupancy for the third quarter of 2010 was
77.9% compared to 76.4% for the same quarter of last year. Same-store net
rental income for the third quarter of 2010 increased 0.9% over the same
period in 2009. Same-store total revenues increased 1.4% and same-store
operating expenses increased 2.9% as compared to the third quarter of 2009.
Same-store net operating income increased 0.5% in the third quarter of 2010
compared to the same quarter of 2009.
For the nine months ended September 30, 2010, same-store total revenues,
operating expenses and net operating income decreased 0.8%, 1.5%, and 0.4%,
respectively, as compared to the results for the nine months ended
September 30, 2009. Average physical occupancy of the same-store pool for
2010 was 76.5% as compared to 76.2% during 2009. Ending occupancy for our
same-store portfolio was 77.4% and 75.7% as of September 30, 2010 and 2009,
respectively.
Investment Activity
In July, the Company acquired a self-storage facility located in suburban
Dallas, Texas for a total investment of $6.0 million. The facility was 80%
physically occupied at closing and was acquired free and clear of any
encumbrances. With this acquisition, the Company now owns or operates 17
facilities in the Dallas area.
In September, the Company acquired two self-storage facilities in the
boroughs of New York City, New York. The facilities were 84% occupied and
were acquired free and clear of encumbrances for a total investment of
$27.4 million.
Balance Sheet
On September 29, 2010, the Company announced the closing of an amendment to
its $450 million credit facility. The amended credit facility consists of a
$200 million unsecured term loan and a $250 million unsecured revolving
credit facility. The amended credit facility has a three year term expiring
on December 7, 2013. At closing, the $200 million term loan was outstanding
and there were no amounts outstanding on the revolver.
The significant changes to the Company's previous $450 million secured
credit facility are as follows:
-- The amended facility is an unsecured facility compared to the prior
secured facility, resulting in $733 million of unencumbered assets as
of September 30, 2010.
-- The amended facility pricing is based on 30 day Libor compared to a
1.50% Libor floor in the prior facility.
-- The amended facility matures in December, 2013 compared to
December, 2012 in the prior facility.
During the nine months ended September 30, 2010, the Company used cash on
hand to repay an $83.3 million CMBS loan that was scheduled to mature in
May 2010 and $23.4 million of additional loans maturing during the period.
Additionally, during the year, the Company was repaid $20.1 million in
notes receivable related to seller financings the Company provided as part
of portfolio dispositions in 2009.
Quarterly Dividend
On August 4, 2010, the Company declared a dividend of $0.025 per share. The
dividend was paid on October 22, 2010, to shareholders of record on October
7, 2010.
2010 Financial Outlook
"We are increasing our 2010 FFO per share guidance which at the midpoint is
now 8.7% higher than the midpoint of our initial 2010 guidance. The
increased guidance reflects improved expectations on performance of our
core properties, the impact of our property acquisitions to date and the
impact of lower borrowing costs on our credit facility as a result of our
credit facility amendment. We are improving our same-store guidance for
the second consecutive quarter," said Chief Financial Officer Tim Martin.
The Company is adjusting its previously issued estimates and expects that
its fully-diluted FFO per share for 2010 will be between $0.49 and $0.51,
and that its fully-diluted net loss per share for the period will be
between $(0.12) and $(0.10). The Company's estimate is based on the
following key assumptions:
-- For 2010, the same-store pool consists of 363 assets totaling
23.5 million square feet
-- Same-store revenue growth of 0.5% to -0.5% over 2009
-- Same-store expense growth of 0.5% to 1.5% over 2009
-- Same-store net operating income growth of 0.5% to -0.5% over 2009
-- General and administrative expenses of approximately $25.1 million to
$25.6 million
-- Average LIBOR for the fourth quarter consistent with levels as of
September 30, 2010
2010 Full Year Guidance Range or Value
-----------------------------
Earnings (loss) per diluted share allocated
to common shareholders $ (0.12) to $ (0.10)
Plus: real estate depreciation and
amortization 0.61 0.61
--------- ---------
FFO per diluted share $ 0.49 to $ 0.51
========= =========
The Company estimates that its fully-diluted FFO per share for the quarter
ending December 31, 2010 will be between $0.14 and $0.15, and that its
fully-diluted net loss per share for the period will be between $(0.01) and
$0.00.
4th Quarter 2010 Guidance Range or Value
-----------------------------
Earnings (loss) per diluted share allocated
to common shareholders $ (0.01) to $ 0.00
Plus: real estate depreciation and
amortization 0.15 0.15
--------- ----------
FFO per diluted share $ 0.14 to $ 0.15
========= ==========
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, November
5, 2010, to discuss financial results for the three and nine months ended
September 30, 2010.
A live webcast of the conference call will be available online from the
investor relations page of the Company's corporate website at
www.u-store-it.com. The dial-in numbers are 1-877-317-6789 for domestic
callers and +1 412-317-6789 for international callers. After the live
webcast, the call will remain available on U-Store-It's website for thirty
days. In addition, a telephonic replay of the call will be available until
December 5, 2010. The replay dial-in number is 1-877-344-7529 for domestic
callers and +1 412-317-0088 for international callers. The reservation
number for both is 445210.
Supplemental operating and financial data as of September 30, 2010 is
available on our corporate website under Investor Relations - Financial
Information - Financial Reports.
About U-Store-It Trust
U-Store-It Trust is a self-administered and self-managed real estate
investment trust. The Company's self-storage facilities are designed to
offer affordable, easily accessible and secure storage space for
residential and commercial customers. According to the Self-Storage
Almanac, U-Store-It Trust is one of the top four owners and operators of
self-storage facilities in the United States.
Non-GAAP Performance Measurements
FFO is a widely used performance measure for real estate companies and is
provided here as a supplemental measure of operating performance. The
Company calculates FFO in accordance with the best practices described in
the April 2002 National Policy Bulletin of the National Association of Real
Estate Investment Trusts (the "White Paper"). The White Paper defines FFO
as net income (computed in accordance with GAAP), excluding gains (or
losses) from sales of property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a key performance indicator in evaluating the
operations of the Company's facilities. Given the nature of its business as
a real estate owner and operator, the Company considers FFO a key measure
of its operating performance that is not specifically defined by accounting
principles generally accepted in the United States. The Company believes
that FFO is useful to management and investors as a starting point in
measuring its operational performance because it excludes various items
included in net income that do not relate to or are not indicative of its
operating performance such as gains (or losses) from sales of property and
depreciation, which can make periodic and peer analyses of operating
performance more difficult. FFO should not be considered as an alternative
to net income (determined in accordance with GAAP) as an indicator of the
Company's financial performance, is not an alternative to cash flow from
operating activities (determined in accordance with GAAP) as a measure of
the Company's liquidity, and is not indicative of funds available to fund
the Company's cash needs, including its ability to make distributions.
We define net operating income, which we refer to as "NOI," as total
continuing revenues less continuing property operating expenses. NOI also
can be calculated by adding back to net income (loss): interest expense on
loans, loan procurement amortization expense, acquisition related costs,
amounts attributable to noncontrolling interests, other expense,
depreciation and amortization expense, general and administrative expense,
and deducting from net income: income from discontinued operations, gains
on disposition of discontinued operations, other income, and interest
income. NOI is not a measure of performance calculated in accordance with
GAAP.
Management uses NOI as a measure of operating performance at each of our
facilities, and for all of our facilities in the aggregate. NOI should not
be considered as a substitute for operating income, net income, cash flows
provided by operating, investing and financing activities, or other income
statement or cash flow statement data prepared in accordance with GAAP.
Forward-Looking Statements
This presentation, together with other statements and information publicly
disseminated by U-Store-It Trust ("we," "us," "our" or the "Company"),
contains certain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Such statements are
based on assumptions and expectations that may not be realized and are
inherently subject to risks, uncertainties and other factors, many of which
cannot be predicted with accuracy and some of which might not even be
anticipated. Although we believe the expectations reflected in these
forward-looking statements are based on reasonable assumptions, future
events and actual results, performance, transactions or achievements,
financial and otherwise, may differ materially from the results,
performance, transactions or achievements expressed or implied by the
forward-looking statements. Risks, uncertainties and other factors that
might cause such differences, some of which could be material, include, but
are not limited to:
-- national and local economic, business, real estate and other market
conditions;
-- the competitive environment in which we operate;
-- the execution of our business plan;
-- financing risks, including the risk of over-leverage and the
corresponding risk of default on our mortgage and other debt and
potential inability to refinance existing indebtedness;
-- increases in interest rates and operating costs;
-- counterparty non-performance related to the use of derivative financial
instruments;
-- our ability to maintain our status as a real estate investment trust
("REIT") for federal income tax purposes;
-- acquisition and development risks;
-- changes in real estate and zoning laws or regulations;
-- risks related to natural disasters;
-- potential environmental and other liabilities;
-- other factors affecting the real estate industry generally or the
self-storage industry in particular; and
-- other risks identified in our Annual Report on Form 10-K and, from time
to time, in other reports we file with the Securities and Exchange
Commission (the "SEC") or in other documents that we publicly
disseminate.
We undertake no obligation to publicly update or revise these
forward-looking statements, whether as a result of new information, future
events or otherwise except as may be required in securities laws.
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
September 30, December 31,
2010 2009
------------- -------------
ASSETS
Storage facilities $ 1,745,625 $ 1,774,542
Less: Accumulated depreciation (326,314) (344,009)
------------- -------------
Storage facilities, net 1,419,311 1,430,533
Cash and cash equivalents 23,203 102,768
Restricted cash 15,528 16,381
Loan procurement costs, net of amortization 17,351 18,366
Notes receivable - 20,112
Assets held for sale 1,867 -
Other assets, net 19,934 10,710
------------- -------------
Total assets $ 1,497,194 $ 1,598,870
============= =============
LIABILITIES AND EQUITY
Unsecured term loan $ 200,000 $ -
Secured term loan - 200,000
Mortgage loans and notes payable 456,174 569,026
Accounts payable, accrued expenses and other
liabilities 40,646 33,767
Distributions payable 2,515 2,448
Deferred revenue 8,893 8,449
Security deposits 512 456
Other liabilities held for sale 22 -
------------- -------------
Total liabilities 708,762 814,146
------------- -------------
Noncontrolling interests in the Operating
Partnership 43,871 45,394
------------- -------------
Commitments and contingencies
Equity
Common shares $.01 par value, 200,000,000
shares authorized, 95,435,132 and
92,654,979 shares issued and outstanding
at September 30, 2010 and December 31,
2009, respectively 954 927
Additional paid in capital 998,894 974,926
Accumulated other comprehensive loss (924) (874)
Accumulated deficit (296,225) (279,670)
------------- -------------
Total U-Store-It Trust shareholders' equity 702,699 695,309
------------- -------------
Noncontrolling interest in subsidiaries 41,862 44,021
------------- -------------
Total equity 744,561 739,330
------------- -------------
Total liabilities and equity $ 1,497,194 $ 1,598,870
============= =============
U-STORE-IT TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
REVENUES
Rental income $ 50,809 $ 50,269 $ 149,080 $ 151,008
Other property related income 5,155 4,347 13,919 12,510
Property management fee income 1,048 12 1,682 140
--------- --------- --------- ---------
Total revenues 57,012 54,628 164,681 163,658
--------- --------- --------- ---------
OPERATING EXPENSES
Property operating expenses 24,602 23,065 71,921 71,509
Depreciation and amortization 15,557 17,844 48,258 53,385
General and administrative 6,597 5,556 19,308 16,658
--------- --------- --------- ---------
Total operating expenses 46,756 46,465 139,487 141,552
--------- --------- --------- ---------
OPERATING INCOME 10,256 8,163 25,194 22,106
--------- --------- --------- ---------
OTHER INCOME (EXPENSE)
Interest:
Interest expense on loans (9,648) (12,008) (29,324) (34,834)
Loan procurement amortization
expense (1,559) (489) (4,718) (1,517)
Interest income 19 150 616 249
Acquisition related costs (165) - (465) -
Other (67) - (142) (13)
--------- --------- --------- ---------
Total other expense (11,420) (12,347) (34,033) (36,115)
--------- --------- --------- ---------
LOSS FROM CONTINUING OPERATIONS (1,164) (4,184) (8,839) (14,009)
DISCONTINUED OPERATIONS
Income from discontinued
operations 49 777 143 2,610
Net gain on disposition of
discontinued operations - 10,910 - 13,530
--------- --------- --------- ---------
Total discontinued operations 49 11,687 143 16,140
--------- --------- --------- ---------
NET (LOSS) INCOME (1,115) 7,503 (8,696) 2,131
NET LOSS (INCOME) ATTRIBUTABLE
TO NONCONTROLLING INTERESTS
Noncontrolling interests in
the Operating Partnership 76 (512) 487 (93)
Noncontrolling interest in
subsidiaries (441) (173) (1,267) (173)
--------- --------- --------- ---------
NET (LOSS) INCOME ATTRIBUTABLE
TO THE COMPANY $ (1,480) $ 6,818 $ (9,476) $ 1,865
========= ========= ========= =========
Basic and diluted loss per
share from continuing
operations attributable to
common shareholders $ (0.02) $ (0.05) $ (0.10) $ (0.21)
Basic and diluted earnings per
share from discontinued
operations attributable to
common shareholders $ - $ 0.14 $ - $ 0.24
--------- --------- --------- ---------
Basic and diluted (loss)
earnings per share
attributable to common
shareholders $ (0.02) $ 0.09 $ (0.10) $ 0.03
========= ========= ========= =========
Weighted-average basic and
diluted shares outstanding 93,724 75,248 93,154 63,764
AMOUNTS ATTRIBUTABLE TO THE
COMPANY'S
COMMON SHAREHOLDERS:
Loss from continuing operations $ (1,527) $ (4,098) $ (9,613) $ (13,210)
Total discontinued operations 47 10,916 137 15,075
--------- --------- --------- ---------
Net (loss) income $ (1,480) $ 6,818 $ (9,476) $ 1,865
--------- --------- --------- ---------
Same-store facility results (363 facilities)
(in thousands, except percentage and per square foot data)
Three months ended
--------------------
September September Percent
30, 2010 30, 2009 Change
--------- --------- ---------
REVENUES
Net rental income $ 50,312 $ 49,885 0.9%
Other property related income 4,577 4,224 8.4%
--------- --------- ---------
Total revenues 54,889 54,109 1.4%
--------- --------- ---------
OPERATING EXPENSES
Property taxes 6,566 7,018 -6.4%
Personnel expense 6,163 6,156 0.1%
Advertising 1,719 919 87.1%
Repair and maintenance 779 789 -1.3%
Utilities 2,576 2,517 2.3%
Property insurance 769 705 9.1%
Other expenses 3,038 2,907 4.5%
--------- --------- ---------
Total operating expenses 21,610 21,011 2.9%
--------- --------- ---------
Net operating income (1) $ 33,279 $ 33,098 0.5%
========= ========= =========
Gross margin 60.6% 61.2%
Period Average Occupancy (2) 77.9% 76.4%
Period End Occupancy (3) 77.4% 75.7%
Total rentable
square feet 23,526 23,526
Realized annual rent
per occupied square foot (4) $ 10.98 $ 11.10 -1.1%
Scheduled annual rent per
square foot (5) $ 11.81 $ 11.62 1.7%
Reconciliation of Same-Store Net Operating
Income to Operating Income
Same-store net operating income (1) $ 33,279 $ 33,098
Non same-store net operating income (1) 140 191
Indirect property overhead (6) (1,009) (1,726)
Depreciation and amortization (15,557) (17,844)
General and administrative expense (6,597) (5,556)
--------- ---------
Operating Income $ 10,256 $ 8,163
========= =========
(1) Net operating income (NOI) is a non-GAAP (generally accepted accounting
principles) financial measure that excludes the impact of depreciation
and general & administrative expense.
(2) Square feet occupancy represents the weighted average occupancy for the
period.
(3) Represents occupancy at September 30 of the respective year.
(4) Realized annual rent per occupied square foot is computed by dividing
rental income by the weighted average occupied square feet for the
period.
(5) Scheduled annual rent per square foot represents annualized contractual
rents per available square foot for the period.
(6) Includes property management fee income earned in conjunction with
managed properties.
Same-store facility results (363 facilities)
(in thousands, except percentage and per square foot data)
Nine months ended
--------------------
September September Percent
30, 2010 30, 2009 Change
--------- --------- ---------
REVENUES
Net rental income $ 148,107 $ 150,163 -1.4%
Other property related income 12,968 12,225 6.1%
--------- --------- ---------
Total revenues 161,075 162,388 -0.8%
--------- --------- ---------
OPERATING EXPENSES
Property taxes 20,507 21,585 -5.0%
Personnel expense 17,830 17,984 -0.9%
Advertising 5,200 4,847 7.3%
Repair and maintenance 2,081 2,173 -4.2%
Utilities 7,082 7,417 -4.5%
Property insurance 2,307 1,992 15.8%
Other expenses 9,342 9,314 0.3%
--------- --------- ---------
Total operating expenses 64,349 65,312 -1.5%
--------- --------- ---------
Net operating income (1) $ 96,726 $ 97,076 -0.4%
========= ========= =========
Gross margin 60.1% 59.8%
Period Average Occupancy (2) 76.5% 76.2%
Period End Occupancy (3) 77.4% 75.7%
Total rentable
square feet 23,526 23,526
Realized annual rent
per occupied square foot (4) $ 10.97 $ 11.17 -1.8%
Scheduled annual rent per
square foot (5) $ 11.69 $ 11.85 -1.4%
Reconciliation of Same-Store Net Operating
Income to Operating Income
Same-store net operating income (1) $ 96,726 $ 97,076
Non same-store net operating income (1) 242 427
Indirect property overhead (6) (4,208) (5,354)
Depreciation and amortization (48,258) (53,385)
General and administrative expense (19,308) (16,658)
--------- ---------
Operating Income $ 25,194 $ 22,106
========= =========
(1) Net operating income (NOI) is a non-GAAP (generally accepted accounting
principles) financial measure that excludes the impact of depreciation
and general & administrative expense.
(2) Square feet occupancy represents the weighted average occupancy for the
period.
(3) Represents occupancy at September 30 of the respective year.
(4) Realized annual rent per occupied square foot is computed by dividing
rental income by the weighted average occupied square feet for the
period.
(5) Scheduled annual rent per square foot represents annualized contractual
rents per available square foot for the period.
(6) Includes property management fee income earned in conjunction with
managed properties.
Non-GAAP Measure - Computation of Funds From Operations
(in thousands, except per share data)
Three months ended
----------------------------
September 30, September 30,
2010 2009
------------- -------------
Net (loss) income $ (1,115) $ 7,503
Add (deduct):
Real estate depreciation and amortization 15,239 18,342
Gains on sale of real estate - (10,910)
Noncontrolling interests in subsidiaries
share of FFO (1,003) (577)
------------- -------------
FFO $ 13,122 $ 14,358
============= =============
(Loss) earnings per share attributable to
common shareholders - fully diluted $ (0.02) $ 0.09
FFO per share and unit - fully diluted $ 0.13 $ 0.18
Weighted-average basic and diluted shares
outstanding 93,724 75,248
Weighted-average diluted shares and units
outstanding 99,620 81,063
Dividend per common share and unit $ 0.025 $ 0.025
Payout ratio of FFO (Dividend per share
divided by FFO per share) 19% 14%