-----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, NyjR+/FYycU1/KBAN6iLHAB+wydjlXu+LOsNUG+DyTosuhW71Y32WCl7GjL2LyXA G6Hrp+mGsGXnoZtricineQ== 0000912057-97-021491.txt : 19970623 0000912057-97-021491.hdr.sgml : 19970623 ACCESSION NUMBER: 0000912057-97-021491 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970122 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970620 SROS: AMEX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSION WEST PROPERTIES/NEW/ CENTRAL INDEX KEY: 0000704874 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 952635431 STATE OF INCORPORATION: CA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08383 FILM NUMBER: 97627662 BUSINESS ADDRESS: STREET 1: 6815 FLANDERS DR STE 250 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 6194503135 MAIL ADDRESS: STREET 1: 6815 FLANDERS DR STREET 2: SUITE 250 CITY: SAN DIEGO STATE: CA ZIP: 92121-3914 8-K/A 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ----------- FORM 8-K/A (AMENDMENT NO. 1) CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): JANUARY 22, 1997 Commission File Number 1-8383 MISSION WEST PROPERTIES Incorporated in California IRS Employer Identification Number: 95-2635431 Principal Executive Offices: Telephone: (619) 450-3135 6815 Flanders Drive, Suite 250 San Diego, California 92121-3914 ITEM 2: ACQUISITION OR DISPOSITION OF ASSETS On December 6, 1996, Mission West Properties (seller and "the Company") entered into an agreement (the "Agreement") to sell all its real estate assets to Spieker Properties, L.P. (purchaser and "Spieker"), a California limited partnership, for $50,500,000 cash. The Company's real estate constituted nearly all of its assets. A special shareholder meeting was held December 16, 1996, at which time the Company's shareholders approved the sale of the Company's real estate portfolio to Spieker. A majority of the sale transaction was completed January 22, 1997, at which time nine (9) of the Company's 11 real estate properties were sold and Form 8-K with pro forma financial information was filed with the Exchange. Sale of the remaining two (2) properties to Spieker occurred May 6, 1997; thus, the Form 8-K for disposition of assets is hereby amended for the completion of the real estate portfolio sale. The two (2) properties sold in May 1997 consisted of leaseholds, together with occupied hangar and office buildings thereon, comprising approximately 25 percent of the land at Palomar-McClellan airport in San Diego county, California. Upon completing the sale of the leaseholds, the Company received $2,700,000 in cash, from which it paid a majority of the related transaction and closing costs. In accordance with the Agreement, $300,000 was withheld from the sale proceeds to allow for satisfaction of claims relating to representations and warranties made by the Company. After resolution of such claims, if any, the $300,000 will be released to the Company on August 6, 1997. Other than the portfolio sale, there is no relationship between the Company and Spieker. ITEM 7: FINANCIAL STATEMENTS AND EXHIBITS (b) PRO FORMA FINANCIAL INFORMATION: The following unaudited pro forma consolidated financial statements are filed with this report: Pro Forma Consolidated Balance Sheet as of February 28, 1997 Pro Forma Consolidated Statement of Operations for the Year Ended November 30, 1996 Pro Forma Consolidated Statement of Operations for the Year Ended November 30, 1995 Pro Forma Consolidated Statement of Operations for the Year Ended November 30, 1994 Pro Forma Consolidated Statement of Operations for the Three Months Ended February 28, 1997 Pro Forma Consolidated Statement of Operations for the Three Months Ended February 29, 1996 The Pro Forma Consolidated Balance Sheet reflects the financial position of the Company after giving effect to the sale of the two (2) leasehold properties and satisfaction of the related liabilities as discussed in Item 2 and assumes the sale was completed as of February 28, 1997. The Pro Forma Consolidated Statements of Operations assume that the sale of all 11 properties occurred on December 1, 1995, December 1, 1994, and December 1, 1993 for the years ended November 30, 1996, November 30, 1995, and November 30, 1994, respectively, and that the sale occurred on December 1, 1996 and December 1, 1995 for the three- (3) month periods ended February 28, 1997 and February 29, 1996, respectively. The unaudited pro forma consolidated financial statements have been prepared by the Company based upon assumptions deemed proper by management. The unaudited pro forma consolidated financial statements presented herein are shown for illustrative purposes only and are not necessarily indicative of the future financial position or future results of operations of the Company, or of the financial position or results of operations of the Company that would have actually occurred had the transaction been in effect as of the date or for the pro forma periods presented. The unaudited pro forma consolidated financial statements should be read in conjunction with the historical financial statements and related notes thereto. -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report to be signed on its behalf by the undersigned, thereunto duly authorized. MISSION WEST PROPERTIES Registrant By: /s/ Katrina L. Thompson -------------------------------------------- Katrina L. Thompson Chief Financial Officer & Secretary (Principal Financial and Accounting Officer) June 20, 1997 -3- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Balance Sheet As of February 28, 1997
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- ASSETS: Cash and cash equivalents $ 2,781,000 $ 2,471,000 $ 5,252,000 Real estate investments: Rental Properties 3,684,000 (3,684,000) - Allowance for estimated losses (661,000) 661,000 - ----------- ----------- ----------- Net real estate investments 3,023,000 (3,023,000) - ----------- ----------- ----------- Other assets, less accumulated depreciation of $201,000 900,000 (31,000) 869,000 ----------- ----------- ----------- $ 6,704,000 $ (583,000) $ 6,121,000 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY: Income taxes payable $ 1,450,000 $ (412,000) $ 1,038,000 Accounts payable and accrued expenses 715,000 (50,000) 665,000 ----------- ----------- ----------- Total liabilities 2,165,000 (462,000) 1,703,000 ----------- ----------- ----------- Shareholders' equity: Common stock, no par value; 10,000,000 shares auth- orized, 1,533,121 shares issued and outstanding 20,215,000 - 20,215,000 Accumulated deficit (1,878,000) (121,000) (1,999,000) Current cash dividends (13,798,000) - (13,798,000) ----------- ----------- ----------- Total shareholders' equity 4,539,000 (121,000) 4,418,000 ----------- ----------- ----------- $ 6,704,000 $ (583,000) $ 6,121,000 ----------- ----------- ----------- ----------- ----------- -----------
(a) Adjustments from the sale of leasehold properties (includes the proceeds, gain on sale, and related tax effects). -4- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Statement of Operations Year Ended November 30, 1996
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- REVENUES: Rental revenues from real estate $ 7,065,000 $(7,065,000) $ - Sales of real estate 113,000 - 113,000 Other, including interest 348,000 (154,000) 194,000 ----------- ----------- ----------- 7,526,000 (7,219,000) 307,000 ----------- ----------- ----------- EXPENSES: Operating expenses of real estate 1,643,000 (1,643,000) - Depreciation of real estate 1,369,000 (1,369,000) - Costs of real estate sold 419,000 (407,000) 12,000 General and administrative 991,000 (110,000) 881,000 Interest 3,045,000 (3,045,000) - ----------- ----------- ----------- 7,467,000 (6,574,000) 893,000 ----------- ----------- ----------- Income (loss) before gain on sale of real estate 59,000 (645,000) (586,000) Gain on sale of real estate - 4,648,000 4,648,000 ----------- ----------- ----------- Income before income taxes 59,000 4,003,000 4,062,000 Provision for income taxes 24,000 1,628,000 1,652,000 ----------- ----------- ----------- NET INCOME $ 35,000 $ 2,375,000 $ 2,410,000 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME PER SHARE $ 0.02 $ 1.63 $ 1.65 ------ ------ ------ ------ ------ ------
(a) Adjustments from the sale of real estate assets (11 properties). -5- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Statement of Operations Year Ended November 30, 1995
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- REVENUES: Rental revenues from real estate $ 7,146,000 $(7,146,000) $ - Sales of real estate 400,000 - 400,000 Other, including interest 380,000 (122,000) 258,000 ----------- ----------- ----------- 7,926,000 (7,268,000) 658,000 ----------- ----------- ----------- EXPENSES: Operating expenses of real estate 1,783,000 (1,783,000) - Depreciation of real estate 1,352,000 (1,352,000) - Costs of real estate sold 324,000 - 324,000 General and administrative 945,000 (92,000) 853,000 Interest 3,435,000 (3,427,000) 8,000 ----------- ----------- ----------- 7,839,000 (6,654,000) 1,185,000 ----------- ----------- ----------- Income (loss) before gain on sale of real estate 87,000 (614,000) (527,000) Gain on sale of real estate - 4,648,000 4,648,000 ----------- ----------- ----------- Income before income taxes 87,000 4,034,000 4,121,000 Provision for income taxes 35,000 1,623,000 1,658,000 ----------- ----------- ----------- NET INCOME $ 52,000 $ 2,411,000 $ 2,463,000 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME PER SHARE $ 0.04 $ 1.73 $ 1.77 ------ ------ ------ ------ ------ ------
(a) Adjustments from the sale of real estate assets (11 properties). -6- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Statement of Operations Year Ended November 30, 1994
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- REVENUES: Rental revenues from real estate $ 6,637,000 $(6,637,000) $ - Sales of real estate 2,096,000 - 2,096,000 Other, including interest 564,000 (145,000) 419,000 ----------- ----------- ----------- 9,297,000 (6,782,000) 2,515,000 ----------- ----------- ----------- EXPENSES: Operating expenses of real estate 1,991,000 (1,991,000) - Depreciation of real estate 1,472,000 (1,472,000) - Costs of real estate sold 229,000 - 229,000 Provision for estimated losses on real estate 5,200,000 (5,000,000) 200,000 General and administrative 1,200,000 (108,000) 1,092,000 Interest 3,088,000 (3,086,000) 2,000 ----------- ----------- ----------- 13,180,000 (11,657,000) 1,523,000 ----------- ----------- ----------- Income (loss) before gain on sale of real estate (3,883,000) 4,875,000 992,000 Gain on sale of real estate - 102,000 102,000 ----------- ----------- ----------- Income (loss) before income taxes and cumulative effect of change in accounting (3,883,000) 4,977,000 1,094,000 Provision for (benefit from) income taxes (1,500,000) 1,923,000 423,000 ----------- ----------- ----------- Income (loss) before cumulative effect of change in accounting (2,383,000) 3,054,000 671,000 Cumulative effect of change in accounting for income taxes 440,000 - 440,000 ----------- ----------- ----------- NET INCOME (LOSS) $(1,943,000) $ 3,054,000 $ 1,111,000 ----------- ----------- ----------- ----------- ----------- ----------- PER SHARE: Income (loss) before cumulative effect of change in accounting $(1.62) $ 2.08 $ 0.46 Cumulative effect of change in accounting for income taxes 0.30 - 0.30 ------ ------ ----- Net income (loss) per share $(1.32) $ 2.08 $ 0.76 ------ ------ ----- ------ ------ -----
(a) Adjustments from the sale of real estate assets (11 properties). -7- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Statement of Operations Three Months Ended February 28, 1997
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- REVENUES: Sales of real estate $ 25,000 $ - $ 25,000 Rental revenues from real estate 1,187,000 (1,187,000) - Other, including interest 145,000 (26,000) 119,000 ----------- ----------- ----------- 1,357,000 (1,213,000) 144,000 ----------- ----------- ----------- EXPENSES: Costs of real estate sold 3,000 - 3,000 Operating expenses of real estate 209,000 (209,000) - Depreciation of real estate 217,000 (217,000) - General and administrative 267,000 (19,000) 248,000 Interest 424,000 (424,000) - ----------- ----------- ----------- 1,120,000 (869,000) 251,000 ----------- ----------- ----------- Income (loss) before gain on sale of real estate 237,000 (344,000) (107,000) Gain on sale of real estate 4,850,000 (202,000) 4,648,000 ----------- ----------- ----------- Income before income taxes 5,087,000 (546,000) 4,541,000 Provision for income taxes 1,691,000 (181,000) 1,510,000 ----------- ----------- ----------- NET INCOME $ 3,396,000 $ (365,000) $ 3,031,000 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME PER SHARE $ 2.43 $(0.26) $ 2.17 ------ ------ ------ ------ ------ ------
(a) Adjustments from the sale of real estate assets (operations of 11 properties; loss on sale of leasehold properties). -8- PRO FORMA FINANCIAL INFORMATION MISSION WEST PROPERTIES Pro Forma Consolidated Statement of Operations Three Months Ended February 29, 1996
Pro Forma Adjustments Historical (a) Pro Forma ----------- ----------- ----------- REVENUES: Rental revenues from real estate $ 35,000 $ - $ 35,000 Sales of real estate 1,787,000 (1,787,000) - Other, including interest 66,000 (16,000) 50,000 ----------- ----------- ----------- 1,888,000 (1,803,000) 85,000 ----------- ----------- ----------- EXPENSES: Operating expenses of real estate 367,000 (367,000) - Depreciation of real estate 342,000 (342,000) - Costs of real estate sold 4,000 - 4,000 General and administrative 265,000 (29,000) 236,000 Interest 771,000 (771,000) - ----------- ----------- ----------- 1,749,000 (1,509,000) 240,000 ----------- ----------- ----------- Income (loss) before gain on sale of real estate 139,000 (294,000) (155,000) Gain on sale of real estate - 4,648,000 4,648,000 ----------- ----------- ----------- Income before income taxes 139,000 4,354,000 4,493,000 Provision for income taxes 56,000 1,754,000 1,810,000 ----------- ----------- ----------- NET INCOME $ 83,000 $ 2,600,000 $ 2,683,000 ----------- ----------- ----------- ----------- ----------- ----------- NET INCOME PER SHARE $ 0.06 $ 1.90 $ 1.96 ------ ------ ------ ------ ------ ------
(a) Adjustments from the sale of real estate assets (11 properties). -9- -----END PRIVACY-ENHANCED MESSAGE-----