AMLI Residential Announces Third Quarter Operating Results and Declares Dividend
26 October 2005 - 8:00AM
PR Newswire (US)
CHICAGO, Oct. 25 /PRNewswire-FirstCall/ -- AMLI Residential
Properties Trust (NYSE:AML) announces today operating results for
the third quarter ended September 30, 2005. Earnings Net income for
the quarter and nine months ended September 30, 2005 was
$44,136,000 and $75,757,000, respectively, as compared to
$12,234,000 and $61,257,000, respectively, in the year earlier
periods. Diluted Earnings Per Share ("EPS") for the quarter ended
September 30, 2005 was $1.48 compared to $0.41 for the same period
a year earlier, an increase of 261%. For the nine months ended
September 30, 2005, EPS was $2.52 compared to $2.13 for the
comparable period of 2004. The difference in net income between the
current quarter and the third quarter last year and net income for
the nine months ended September 30, 2005 versus the comparable
period in 2004 is primarily attributable to the differences in the
amount of aggregate gains recognized from a combination of sales of
rental properties, net of minority interest, sales of partnership
interests in existing wholly-owned communities and AMLI's share of
gains on sales of partnership properties. Such amounts were
$41,900,000 and $73,934,000 for the three and nine months ended
September 30, 2005, respectively, and $11,318,000 and $51,282,000
for the three and nine months ended September 30, 2004,
respectively. Funds From Operations ("FFO") for the third quarter
2005 were $16,042,000, or $0.51 per common share, compared to
$13,576,000, or $0.44 per common share, for the third quarter 2004
(a per share increase of 15.9%). Actual results for the third
quarter were consistent with both the mid-point of AMLI's most
current guidance and First Call's most recent estimate. "The
results of the quarter were significantly better than a year ago,
reflecting continuing improvement in community operations, full
investment of the proceeds of our common share offering in March
2004 and positive contributions from transactional activity,"
stated Robert J. Chapman, AMLI Chief Financial Officer. "Same
community total revenues continue to increase year over year and
sequentially over the prior quarter. The increase in third quarter
community operating expenses compared to last year is not
representative of a full year run rate, and we still expect
community revenue, operating expenses and NOI for the full year
2005 to be within the range of our guidance." Third Quarter
Activities During the third quarter, AMLI purchased AMLI Memorial
Heights (380 apartments) in Houston, Texas and sold AMLI at Poplar
Creek (196 apartments) in Schaumburg, Illinois. AMLI also completed
the initial lease-up and stabilization of AMLI Downtown (220
apartments, retail and parking) in Austin, Texas and closed on a
$25 million first mortgage permanent loan secured only by the
residential portion. AMLI owns a 30% interest in AMLI Downtown.
Additionally AMLI entered into three joint ventures during the
quarter. In two transactions AMLI sold a 60% partnership interest
in AMLI at Riverbend (996 apartments) in Indianapolis, Indiana and
an 80% partnership interest in AMLI at Oakhurst North (464
apartments) in Aurora (Chicago), Illinois, both stabilized,
previously wholly-owned apartment communities, to a client of The
Tuckerman Group LLC. In addition to retaining an ownership in both
communities, AMLI was paid certain fees upon closing of the joint
ventures. In the third transaction, AMLI entered into a joint
venture with The Northwestern Mutual Life Insurance Company
("Northwestern Mutual") to develop and own AMLI Perimeter Gardens
(245 apartments) in the Dunwoody neighborhood of northeast Atlanta,
Georgia. The joint venture is structured such that cash flow and
sales proceeds will be shared 75% to Northwestern Mutual and 25% to
AMLI Residential until certain benchmarks are achieved, at which
point AMLI will receive an increased portion of the cash flow and
residual interest. Early in the quarter, AMLI modified the terms of
the Company's three unsecured bank credit facilities, including its
two revolving lines of credit and its $110 million term loan. The
commitment amounts under the primary and secondary lines of credit
were increased to $250 million and $20 million, respectively, and
the maturity dates were reset to three years from closing. The
pricing and certain covenants under all three facilities were also
amended. Same Community Results On a combined same community basis,
which includes both wholly-owned and co-investment communities (at
100%), for the quarter ended September 30, 2005 versus the prior
year's comparable quarter, total community revenue increased 1.6%
(reflecting an increase in weighted average occupancy to 94.9% from
93.9% and an increase in weighted average collected revenue per
occupied unit of 0.5%), operating expenses increased by 4.6%
(partially reflecting quarterly timing differences), and net
operating income ("NOI") decreased by 0.5%. Comparing the third
quarter of 2005 to the preceding quarter, total community revenue
increased by 1.9% (reflecting an increase in weighted average
occupancy of 1.3% and an increase in weighted average collected
revenue per occupied unit of 0.4%), operating expenses increased
5.3% (reflecting some seasonality), and NOI decreased 0.6%.
Subsequent Events Yesterday, AMLI and Morgan Stanley Real Estate's
Prime Property Fund (PRIME) announced that PRIME entered into a
definitive agreement to acquire AMLI in an all-cash transaction
totaling approximately $2.1 billion. Under the terms of the
agreement PRIME will acquire all of AMLI's common shares for $37.75
per share in cash. Holders of limited partnership units in AMLI's
operating partnership will also receive $37.75 per unit in cash.
AMLI will continue to pay regular quarterly distributions at an
annualized rate of $1.92 per share and per unit through the closing
of the transaction. Completion of the transaction, which is
expected to occur during the first quarter of 2006, is subject to
approval by AMLI's common shareholders and certain other customary
closing conditions. Outlook AMLI's current expectation for FFO for
the fourth quarter and full year 2005 is now plus or minus $0.02
from the midpoints of $0.69 per share and $2.15 per share,
reflecting an approximately $0.20 per share contribution from the
potential disposition of a community built for sale by one of the
Company's subsidiaries that had previously been assumed to occur in
2006. The following chart reconciles AMLI's current FFO per share
guidance to EPS: Actual Actual Actual Q1 Q2 Q3 Q4 Full Year EPS per
Common Share $0.76 $0.28 $1.48 $0.34 $2.85 Gains on Sales ($0.85)
($0.35) ($1.47) ($0.30) ($2.96) Depreciation $0.45 $0.45 $0.43
$0.40 $1.73 Adjustment for Preferred Shares $0.07 $0.14 $0.07 $0.25
$0.53 FFO per Share $0.43 $0.52 $0.51 $0.69 $2.15 Dividend
Yesterday, the Board of Trustees declared a quarterly dividend of
$0.48 per common share. This dividend is payable on November 15,
2005 to all common shareholders of record as of November 4, 2005
and is based on an annual dividend rate of $1.92 per common share.
Conference Call AMLI will hold a conference call on Wednesday,
October 26, 2005 at 3:30 p.m. Eastern Time. The toll-free number
for the call is (800) 946-0706 - Passcode: 994697, and should be
accessed approximately 5 minutes prior to conference time. A live
webcast of the conference call will also be available in the
'Company Info' section on AMLI's website (
http://www.amli.com/comp/ ) and at http://www.streetevents.com/ , a
password-protected event management site. Additionally, an on-line
replay of the webcast will be available for 60 days following the
call. Supplemental Information AMLI produces Quarterly Supplemental
Information that provides detailed information regarding the
Company's activities during the quarter. The Third Quarter
Supplemental Information is available in the 'Company Info' section
on our website (http://www.amli.com/comp/) under 'Shareholder
Reports.' Definitions This press release and the Quarterly
Supplemental Information described above contain certain non-GAAP
("Generally Accepted Accounting Principles") information that is
generally provided by most publicly-traded residential REITs. AMLI
uses this information internally to measure its performance and/or
liquidity and to compare its performance to other REITs in its peer
group, and believes that this information may be of interest and
use to the investment community for the same reason. Except where
indicated, community revenue, community expenses, net operating
income ("NOI") and earnings before interest, taxes, depreciation
and amortization ("EBITDA") are computed based on various line
items included in our consolidated statements of income prepared in
accordance with GAAP. Where indicated, this information is
presented on a basis that includes AMLI's proportionate share of
the non-GAAP financial measures of its co-investment partnerships.
Reconciliations of all non-GAAP financial measures to GAAP
financial measures are included in the Company's Quarterly
Supplemental Financial information, primarily pages 18 and 19.
EBITDA is NOI (including AMLI's proportionate share of the NOI of
its co- investment partnerships) plus all fees and interest income
and income from the Service Companies and gains or losses from
sales or valuation of land and other income, less general and
administration expense. Funds From Operations ("FFO") is EBITDA
less interest expense (including AMLI's proportionate share of the
interest expense of its co-investment partnerships and amortization
of deferred financing expense) and any income taxes. FFO computed
in this manner is equal to FFO as defined in NAREIT's white paper,
which definition is "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." Additional
definitions can be found in the Quarterly Supplemental Information.
About AMLI The AMLI(R) portfolio currently includes 75 apartment
communities containing 28,356 apartment homes, with an additional
827 apartment homes under development or in lease-up in three
locations. AMLI is focused on the development, acquisition and
management of institutional quality multifamily communities in the
Southeast, Southwest, Midwest and Mountain regions of the U.S. AMLI
Residential also serves as institutional advisor and asset manager
for large pension funds, tax-exempt foundations and other financial
institutions through AMLI's co-investment business. AMLI employs
approximately 850 people who are dedicated to achieving AMLI's
mission -- Provide An Outstanding Living Environment For Our
Residents. More information on AMLI is available at
http://www.amli.com/ . Forward-Looking Statements Certain matters
discussed in this press release are forward-looking statements
within the meaning of Federal Securities Law. Although the Company
believes expectations reflected in such forward looking statements
are based upon reasonable assumptions, it can give no assurance
that its expectations will be achieved. Forward-looking statements
can be identified by the Company's use of the words "project,"
"believe," "expect," "anticipate," "intend," "estimate," "assume,"
and other similar expressions that predict or indicate future
events, achievements or trends or that do not relate to historical
matters. The Company does not assure the future results or outcome
of the matters described in forward-looking statements; rather,
these statements merely reflect the Company's current expectations
of the approximate outcomes of the matters discussed.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, some of which are beyond the
Company's control. The reader is cautioned to make his/her own
judgment with regard to the statements discussed in this press
release and the assumption noted by the Company herein. The Company
is making forward-looking statements because it believes investors,
analysts and others, many of whom prepare models and projections of
the Company's performance, are interested in the Company's current
estimates of its future activities. The Company advises such
parties to make their own determination of any relevant or material
assumption used by them. Many factors may cause the Company's
actual performance in any period or periods to differ materially
from the anticipated future performance expressed or implied by
these forward-looking statements. Certain of the factors that could
cause the Company's actual performance to differ materially from
those expressed or implied by these forward-looking statements
include, but are not limited to, general economic conditions, local
real estate conditions, the timely development and lease-up of
communities, other risks detailed from time to time in the
Company's SEC reports, including the annual report on form 10-K for
the year ended December 31, 2004. DATASOURCE: AMLI Residential
Properties Trust CONTACT: Robert J. Chapman, Chief Financial
Officer of AMLI Residential Properties Trust, +1-312-984-6845 Web
site: http://www.amli.com/
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