EX-99.1 4 c08423exv99w1.htm REVISED "ITEM 6, SELECTED FINANCIAL DATA" exv99w1
 

Exhibit 99.1
 
Item 6.   Selected Financial Data
 
The following sets forth selected financial and operating data for the Consolidated Operating Partnership on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Current Report on Form 8-K. The historical statements of operations for the years ended December 31, 2005, 2004, 2003, 2002 and 2001 include the results of operations of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements. The results of operations of properties sold are presented in discontinued operations if such properties met both of the following criteria: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposition and (b) the Consolidated Operating Partnership will not have any significant involvement in the operations of the property after the disposal transaction. The historical balance sheet data and other data as of December 31, 2005, 2004, 2003, 2002 and 2001 include the balances of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements.
 
                                         
    Year Ended
    Year Ended
    Year Ended
    Year Ended
    Year Ended
 
    12/31/05     12/31/04     12/31/03     12/31/02     12/31/01  
    (In thousands, except per unit and property data)  
 
Statement of Operations Data:
                                       
Total Revenues
  $ 298,315     $ 244,953     $ 220,272     $ 207,424     $ 221,592  
Interest Income
    1,075       2,025       1,698       121       265  
Market-to-Market/Gain on Settlement of Interest Rate Protection Agreement
    811       1,583                    
Property Expenses
    (100,553 )     (82,723 )     (76,282 )     (68,616 )     (67,907 )
Expenses from Build to Suit Development for Sale
    (15,574 )                        
General and Administrative Expense
    (54,846 )     (38,912 )     (25,607 )     (19,230 )     (17,990 )
Interest Expense
    (108,164 )     (98,458 )     (94,637 )     (87,069 )     (78,841 )
Amortization of Deferred Financing Costs
    (2,122 )     (1,928 )     (1,761 )     (1,858 )     (1,742 )
Depreciation and Other Amortization
    (97,637 )     (73,499 )     (56,713 )     (46,684 )     (43,689 )
Gain (Loss) from Early Retirement of Debt (b)
    82       (515 )           (888 )     (10,309 )
Valuation Provision on Real Estate (a)
                            (6,490 )
Equity in Income of Other Real Estate Partnerships
    48,212       29,203       43,332       53,038       47,949  
Equity in Income (Loss) of Joint Ventures
    3,698       35,840       539       463       (791 )
Income Tax Benefit
    13,625       7,833       5,305       2,311       221  
                                         
(Loss) Income from Continuing Operations
    (13,078 )     25,402       16,146       39,012       42,268  
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $102,742, $81,806, $74,797 and $37,106 for the Year Ended December 31, 2005, 2004, 2003 and 2002), (c)
    117,481       100,912       111,223       86,975       54,068  
Provision for Income Taxes Allocable to Discontinued Operations (Including $18,718, $8,147, $1,965 and $1,440 allocable to Gain on Sale of Real Estate for the years ended December 31, 2005, 2004, 2003 and 2002, respectively)
    (23,346 )     (10,960 )     (3,579 )     (2,583 )     (1,272 )
Gain on Sale of Real Estate
    28,870       15,112       9,594       16,408       42,942  
Provision for Income Taxes Allocable to Gain on Sale of Real Estate
    (10,711 )     (5,312 )     (2,328 )     (3,394 )     (43 )
                                         
Net Income
    99,216       125,154       131,056       136,418       137,963  
Redemption of Preferred Units
          (7,959 )           (3,707 )      
Preferred Unit Distributions
    (10,688 )     (14,488 )     (20,176 )     (23,432 )     (28,924 )
                                         
Net Income Available to Unitholders
  $ 88,528     $ 102,707     $ 110,880     $ 109,279     $ 109,039  
                                         


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    Year Ended
    Year Ended
    Year Ended
    Year Ended
    Year Ended
 
    12/31/05     12/31/04     12/31/03     12/31/02     12/31/01  
    (In thousands, except per unit and property data)  
 
(Loss) Income from Continuing Operations Available to Unitholders Per Weighted Average Unit Outstanding:
                                       
Basic
  $ (0.11 )   $ 0.27     $ 0.07     $ 0.54     $ 1.22  
                                         
Diluted
  $ (0.11 )   $ 0.27     $ 0.07     $ 0.54     $ 1.22  
                                         
Net Income Available to Unitholders Per Weighted Average Unit Outstanding:
                                       
Basic
  $ 1.81     $ 2.18     $ 2.45     $ 2.38     $ 2.37  
                                         
Diluted
  $ 1.81     $ 2.16     $ 2.44     $ 2.37     $ 2.36  
                                         
Distributions Per Unit
  $ 2.7850     $ 2.7500     $ 2.7400     $ 2.7250     $ 2.6525  
                                         
Weighted Average Number of Units Outstanding:
                                       
Basic
    48,968       47,136       45,322       45,841       45,949  
                                         
Diluted
    48,968       47,467       45,443       46,079       46,258  
                                         
Net Income
  $ 99,216     $ 125,154     $ 131,056     $ 136,418     $ 137,963  
Other Comprehensive (Loss) Income:
                                       
Cumulative Transition Adjustment
                            (14,920 )
Settlement of Interest Rate Protection Agreements
          6,816             1,772       (191 )
Reclassification of Settlement of Interest Rate Protection Agreements to Net Income
    (159 )                        
Mark-to-Market of Interest Rate Protection Agreements and Interest Rate Swap Agreements
    (1,414 )     106       251       (126 )     (231 )
Write-off of Unamortized Interest Rate Protection Agreements Due to Early Retirement of Debt
                            2,156  
Amortization of Interest Rate Protection Agreements
    (1,085 )     (512 )     198       176       805  
                                         
Comprehensive Income
  $ 96,558     $ 131,564     $ 131,505     $ 138,240     $ 125,582  
                                         
Balance Sheet Data (End of Period):
                                       
Real Estate, Before Accumulated Depreciation
    2,896,937     $ 2,486,414     $ 2,352,026     $ 2,316,970     $ 2,311,883  
Real Estate, After Accumulated Depreciation
    2,541,182       2,165,411       2,056,338       2,055,595       2,082,590  
Real Estate Held for Sale, Net
    16,840       50,286             7,040       28,702  
Investment in and Advances to Other Real Estate Partnerships
    378,864       339,967       374,906       377,776       378,350  
Total Assets
    3,230,465       2,721,151       2,633,262       2,585,805       2,580,652  
Mortgage Loans Payable, Net, Unsecured Lines of Credit and Senior Unsecured Debt, Net
    1,811,322       1,572,473       1,451,269       1,402,069       1,277,722  
Total Liabilities
    2,016,827       1,711,429       1,570,195       1,525,587       1,400,727  
Partners’ Capital
    1,213,638       1,009,722       1,063,067       1,060,218       1,179,925  
Other Data:
                                       
Cash Flow From Operating Activities
  $ 82,831     $ 81,015     $ 91,266     $ 138,453     $ 145,986  
Cash Flow From Investing Activities
    (404,742 )     5,570       18,115       11,007       (80,236 )
Cash Flow From Financing Activities
    325,653       (83,516 )     (109,381 )     (149,460 )     (69,394 )
Total In-Service Properties
    786       726       729       798       812  
Total In-Service GLA, in Square Feet
    61,674,426       52,330,335       48,527,601       49,867,755       52,214,832  
In-Service Occupancy Percentage
    92 %     91 %     90 %     89 %     91 %
 
 
(a) Represents a valuation provision on real estate relating to certain properties located in Columbus, Ohio, Des Moines, Iowa and Grand Rapids, Michigan.
 
(b) In 2005, the Consolidated Operating Partnership wrote off $.05 million of financing fees related to the Consolidated Operating Partnership’s previous line of credit agreement which was amended and restated

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on August  23, 2005. In addition, the Consolidated Operating Partnership paid $.3 million of finance fees and wrote off a loan premium of $.4 million on a mortgage loan payable which was assumed by the buyers of the related properties on July 13, 2005. In 2004, the Consolidated Operating Partnership paid off and retired a mortgage loan. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.5 million which is comprised of the write-off of unamortized deferred financing costs and a prepayment penalty. In 2002, the Consolidated Operating Partnership paid off and retired certain senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.9 million which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of pro rata unamortized deferred financing costs and legal costs. In 2001, the Consolidated Operating Partnership, paid off and retired certain mortgage loans and senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $10.3 million, which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of unamortized deferred financing costs, the write-off of the unamortized portion of an interest rate protection agreement which was used to fix the interest rate on the senior unsecured debt prior to issuance, the settlement of an interest rate protection agreement used to fix the retirement price of the senior unsecured debt, prepayment fees, legal costs and other expenses.
 
(c) On January 1, 2002, the Consolidated Operating Partnership adopted the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposal transaction and (b) the Consolidated Operating Partnership will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations.


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