-----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, VeHRwLQ3wYHnj1ENYAKrqFhsJGlY+g2Fax3QpdrZHdtkSAv96hpPFUH3loyqZvTb +YLOOCYtcnGQW+LfREynfQ== 0001157523-02-000102.txt : 20020414 0001157523-02-000102.hdr.sgml : 20020414 ACCESSION NUMBER: 0001157523-02-000102 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20020221 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KOGER EQUITY INC CENTRAL INDEX KEY: 0000835664 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 592898045 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09997 FILM NUMBER: 02559500 BUSINESS ADDRESS: STREET 1: 8880 FREEDOM CROSSING TRAIL CITY: JACKSONVILLE STATE: FL ZIP: 32256 BUSINESS PHONE: 9047321000 MAIL ADDRESS: STREET 1: 8880 FREEDOM CROSSING TRAIL CITY: JACKSONVILLE STATE: FL ZIP: 32256 8-K 1 a4127036.txt KOGER EQUITY 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): February 21, 2002 ------------------ KOGER EQUITY, INC. (Exact Name of Registrant as Specified in Its Charter) FLORIDA (State or Other Jurisdiction of Incorporation) 1-9997 59-2898045 (Commission File Number) (IRS Employer Identification No.) 433 PLAZA REAL, SUITE 335 BOCA RATON, FLORIDA 33432 (Address of Principal Executive Offices) (Zip Code) (561) 395-9666 (Registrant's Telephone Number, Including Area Code) NA (Former Name or Former Address, if Changed Since Last Reports) Item 9. Regulation FD Disclosure Koger Equity, Inc. announced results for the fourth quarter and year ended December 31, 2001, as more particularly described in its News Release, dated February 21, 2002, and related Supplemental Information, dated December 31, 2001, on the Company's web site, a copy of which is attached hereto as Exhibit 99(a) and by this reference made a part hereof. Koger Equity, Inc. also announced a quarterly dividend of $.35 per share payable on May 2, 2002, to shareholders of record on March 31, 2002, as more particularly described in its News Release, dated February 21, 2002, a copy of which is attached hereto as Exhibit 99(b) and by this reference made a part hereof. For more information on Koger Equity, Inc., contact the company at 904-538-8871 or visit its Web site at www.koger.com. Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description of Exhibit 99(a) Koger Equity, Inc. News Release, dated February 21, 2002, and related Supplemental Information, dated December 31, 2001. 99(b) Koger Equity, Inc. News Release, dated February 21, 2002. 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. KOGER EQUITY, INC. Dated: February 25, 2002 By: s/James L. Stephens ------------------------------------ James L. Stephens Title: Vice President and Chief Accounting Officer EXHIBIT INDEX The following designated exhibits are filed herewith: Exhibit Number Description of Exhibit 99(a) Koger Equity, Inc. News Release, dated February 21, 2002, and related Supplemental Information, dated December 31, 2001. 99(b) Koger Equity, Inc. News Release, dated February 21, 2002. EX-99 3 koger99a.txt EXHIBIT 99(A) Exhibit 99(a) KOGER EQUITY, INC. Koger Equity Announces Fourth Quarter and Year End 2001 Financial Results Boca Raton, Florida--February 21, 2002--Koger Equity, Inc. (NYSE:KE) today reported results for the fourth quarter and year ended December 31, 2001. -- For properties owned on December 31, 2001, leasing activity during the quarter totaled approximately 209,000 rentable square feet encompassing 81 leases. The weighted average net rental rate on leases signed, excluding first generation space and renewals, was $12.23 as compared to $12.19 for the average net rental rate on expiring leases, a 0.3% increase in net rental rates. In addition, the weighted average net rental rate on renewal leases signed was $11.53 as compared to $11.10 for the average net rental rate on expiration, a 3.9% increase in net rental rates. -- For properties owned on December 31, 2001, the Company signed 1,235,000 square feet of leases in 325 transactions during 2001 and did so at an average cost of $1.18 per square foot per year. -- Tenant retention rate was 59% for the quarter and 66% for the year. -- Occupancy for the properties owned on December 31, 2001, was down 1.4% to 90% at December 31, 2001 compared with 91.4% at December 31, 2000. -- Dividend coverage to Funds from operations ("FFO") was 55.6% and Cash Available for Distribution ("CAD") was 66.7% for the year ended December 31, 2001. -- Operating margins and expense control have improved slightly from 62.4% to 62.8% for the years ended December 31, 2000 and 2001. -- For 2001, portfolio wide net operating income ("NOI") was increased to $104.0 compared to $102.9 for the prior year. Funds from operations for the fourth quarter totaled $16.6 million or $0.62 per share on a fully diluted basis, as compared with $16.1 million or $0.58 per share on a fully diluted basis, for the fourth quarter 2000. This represents a 6.9% increase in fully diluted FFO per share between years. Included in the fourth quarter of 2000 was a charge of $2.1 million related to the Company's reorganization. Excluding this reorganization charge, FFO would have been $0.65 per share on a fully diluted basis, representing a 4.6 percent decrease in fully diluted FFO per share between years. Revenues for the fourth quarter 2001 totaled $40.9 million, as compared to revenues of $41.5 million for the same period in 2000, a 1.5% decrease. This decrease was primarily due to the sale of properties which occurred on December 12, 2001. For purposes of FFO, the weighted average number of common shares and units outstanding totaled 26,785,000 for the fourth quarter 2001 on a fully diluted basis. For 2001, FFO totaled $69.7 million on revenues of $170.6 million compared with FFO of $56.1 million on revenues of $167.9 million for the same period in 2000, a 24.2% increase in FFO and a 1.6% increase in revenues. FFO per fully diluted share for 2001 was $2.52 as compared to $2.01 per fully diluted share for the same period in 2000, a 25.4% increase. Included in the year 2000 was a charge of $12.8 million related to the Company's reorganization. Excluding this reorganization charge, FFO would have been $68.9 million or $2.46 per share on a fully diluted basis, representing a 1.1% increase in FFO and a 2.4% increase in fully diluted FFO per share between years. Earnings per share for the three months and year ended December 31, 2001 were $1.86 and $2.75, respectively, per diluted share. Operating earnings per share for the three months and year ended December 31, 2001 were $0.34 and $1.28, respectively, per diluted share. Other year 2001 highlights include: -- Completed construction on two office buildings during the first half of the year, consisting of 181,000 square feet, in two markets. -- Completed the sale of 75 suburban office buildings, one retail center and 3.4 acres of unimproved land for approximately $206.7 million cash and 5.73 million shares of the Company's common stock. -- Obtained a $125 million secured revolving credit facility which matures in December 2004. Earnings Estimates On our scheduled February 22, 2002 conference call, management will discuss earnings guidance for 2002. Based on current market conditions and certain assumptions with regard to rental rates and other projections, our estimate is that fully diluted FFO per share for 2002 will be approximately $2.00 in a tight range. Estimates of future FFO per share are by definition, and certain other matters discussed in this press release may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Koger Equity, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be attained. Certain factors that could cause actual results to differ materially from Koger Equity's expectations are set forth as risk factors in the Company's SEC reports and filings, including its annual report on Form 10-K. Included among these factors are changes in general economic conditions, including changes in the economic conditions affecting industries in which its principal tenants compete; its ability to timely lease or re-lease space at current or anticipated rents; its ability to achieve economies of scale over time; the demand for tenant services beyond those traditionally provided by landlords; changes in interest rates; changes in operating costs; its ability to attract and retain high-quality personnel at a reasonable cost in a highly competitive labor environment; future demand for its debt and equity securities; its ability to refinance its debt on reasonable terms at maturity; and its ability to complete current and future development projects on schedule and on budget. Many of these factors are beyond Koger Equity's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements contained or incorporated by reference herein, Koger Equity claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. About Koger Equity Koger Equity, Inc. currently owns and operates 12 suburban office parks and three freestanding buildings, containing 7.7 million rentable square feet, located in eight cities in the Southeast and manages for others eight suburban office parks and two freestanding buildings, containing 3.96 million rentable square feet, located in six cities in the Southeast and Southwest. Copies of the Company's December 31, 2001, Fourth Quarter Supplemental Disclosure package are available upon request to Investor Relations, 8880 Freedom Crossing Trail, Suite 101, Jacksonville, Florida, 32256-8280, 904-538-8871. Also, the Fourth Quarter Supplemental Disclosure and additional Koger Equity information can be found on the Company's web site at www.koger.com.
KOGER EQUITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands except per Share Data) For the For the Three Months Ended Year Ended 12/31/01 12/31/00 12/31/01 12/31/00 -------- -------- -------- -------- Revenues Rental and other rental services revenues $40,161 $40,446 $165,623 $164,733 Management fees 550 538 4,080 1,793 Income from Koger Realty Services, Inc. 0 293 81 645 Interest 180 225 776 703 -------- -------- --------- --------- Total revenues 40,891 41,502 170,560 167,874 -------- -------- --------- --------- Expenses Property operations 14,859 13,904 61,608 61,868 Depreciation and amortization 8,173 9,247 36,007 35,133 Mortgage and loan interest 5,825 6,709 25,204 27,268 General and administrative 2,264 4,129 8,412 20,217 Direct cost of management fees 720 291 3,378 898 Other 18 26 189 217 -------- -------- --------- --------- Total expenses 31,859 34,306 134,798 145,601 -------- -------- --------- --------- Income Before Gain (Loss) on Sale or Disposition of Assets, Income Taxes and Minority Interest 9,032 7,196 35,762 22,273 Gain (loss) on sale or disposition of assets 39,189 (422) 39,189 6,015 -------- -------- --------- --------- Income Before Income Taxes and Minority Interest 48,221 6,774 74,951 28,288 Income taxes 235 (2) 684 (21) -------- -------- --------- --------- Income Before Minority Interest 47,986 6,776 74,267 28,309 Minority interest 107 164 1,044 1,156 -------- -------- --------- --------- Net Income $47,879 $ 6,612 $ 73,223 $ 27,153 ======= ======== ========= ========= Earnings Per Share: Basic $ 1.87 $ 0.25 $ 2.76 $ 1.02 ======== ======== ========= ========= Diluted $ 1.86 $ 0.25 $ 2.75 $ 1.01 ======== ======== ========= ========= Weighted Average Shares: Basic 25,641 26,797 26,517 26,730 ======== ========= ========= ========= Diluted 25,785 26,876 26,610 26,962 ======== ========= ========= =========
KOGER EQUITY, INC. FUNDS FROM OPERATIONS (In Thousands except per Share Data) For the For the Three Months Ended Year Ended 12/31/01 12/31/00 12/31/01 12/31/00 -------- -------- -------- -------- Net income $47,879 $ 6,612 $ 73,223 $ 27,153 Depreciation - real estate 7,270 8,372 32,261 31,720 Amortization - deferred tenant costs 514 492 2,172 1,923 Amortization - goodwill 42 42 170 170 Minority interest 107 164 1,044 1,156 Loss (gain) on sale or disposition: Operating properties (39,189) 422 (39,189) (5,963) Non-operating assets 0 0 0 (52) -------- --------- ------- ------- Funds from operations $16,623 $ 16,104 $ 69,681 $ 56,107 ======= ======== ========= ========= Weighted average shares/units outstanding - diluted 26,785 27,876 27,610 27,962 Funds from operations, per diluted share/unit $ 0.62 $ 0.58 $ 2.52 $ 2.01
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands Except Share Data) December 31, December 31, 2001 2000 ---------------- ---------------- ASSETS Real estate investments: Operating properties: Land $91,919 $138,214 Buildings 568,285 805,935 Furniture and equipment 3,082 2,631 Accumulated depreciation (123,999) (155,817) -------- -------- Operating properties - net 539,287 790,963 Properties under construction: Land - 2,128 Buildings - 12,023 Undeveloped land held for investment 13,779 13,899 Undeveloped land held for sale, net of allowance 76 76 Cash and cash equivalents 113,370 1,615 Accounts receivable, net of allowance for uncollectible accounts of $1,114 and $584 11,574 13,232 Investment in Koger Realty Services, Inc. - 2,533 Cost in excess of fair value of net assets acquired, net of accumulated amortization of $683 and $1,195 595 1,360 Other assets 11,904 13,193 ---------- --------- TOTAL ASSETS $690,585 $851,022 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loans payable $248,683 $343,287 Accounts payable 4,962 4,961 Accrued real estate taxes payable 1,007 4,175 Accrued liabilities - other 9,206 10,562 Dividends payable 44,159 9,392 Advance rents and security deposits 5,103 7,014 ---------- ---------- Total Liabilities 313,120 379,391 -------- -------- Minority interest 22,923 23,138 --------- --------- Shareholders' equity: Preferred stock, $.01 par value; 50,000,000 shares authorized; issued: none Common stock, $.01 par value; 100,000,000 shares authorized; issued: 29,663,362 and 29,559,381 shares; outstanding: 21,128,905 and 26,829,239 shares 297 296 Capital in excess of par value 469,779 468,277 Notes receivable from stock sales (5,066) (6,250) Retained earnings 21,180 20,261 Treasury stock, at cost; 8,534,457 and 2,730,142 shares (131,648) (34,091) --------- --------- Total Shareholders' Equity 354,542 448,493 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $690,585 $851,022 ========= =========
EX-99 4 kogersupp.txt KOGER EQUITY SUPPLEMENTAL INFORMATION Koger Equity, Inc. Supplemental Information December 31, 2001 Koger Equity, Inc. Supplemental Information Table of Contents December 31, 2001 Schedule Page - --------------------------------------------------------------- ---------- Consolidated Balance Sheets 2, 3 Consolidated Statement of Operations 4, 5 Funds from Operations 6, 7 Net Operating Income 8, 9 Summary of Outstanding Debt 10 Operating Property Acquisitions 11 Building Completions 12 Buildings Under Construction 13 Twenty-five Largest Tenants 14 Regional Summary of MSAs 15 Occupancy Summary 16 Lease Distribution 17 Lease Expirations 18 Net Effective Rents 19 Same Suite Analysis 20
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Dollars in thousands (Unaudited) (Unaudited) (Unaudited) (Unaudited) 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00 ---------- ----------- ---------- ----------- ---------- ASSETS Real Estate Investments: Operating properties: Land $91,919 $140,448 $140,342 $139,579 $138,214 Buildings 568,285 831,406 827,844 819,065 805,935 Furniture and equipment 3,082 3,228 3,208 3,158 2,631 Accumulated depreciation (123,999) (180,983) (172,473) (164,296) (155,817) ---------- ----------- ---------- ----------- ---------- Operating properties - net 539,287 794,099 798,921 797,506 790,963 Properties under construction: Land 762 2,128 Buildings 351 4,213 12,023 Undeveloped land held for investment 13,779 13,899 13,899 13,899 13,899 Undeveloped land held for sale 76 76 76 76 76 Cash and temporary investments 113,370 9,140 8,537 5,334 1,615 Accounts receivable, net 11,574 12,338 13,240 13,592 13,232 Investment in Koger Realty Services, Inc. 2,533 Cost in excess of fair value of net assets acquired, net 595 1,232 1,275 1,318 1,360 Other assets 11,904 13,997 13,142 13,173 13,193 ---------- ----------- ---------- ----------- ---------- TOTAL ASSETS $690,585 $844,781 $849,441 $849,873 $851,022 ========== =========== ========== =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loan payable $248,683 $337,879 $342,004 $344,107 $343,287 Accounts payable 4,962 3,090 2,771 2,897 4,961 Accrued real estate taxes payable 1,007 9,491 8,234 5,539 4,175 Accrued liabilities - other 9,206 8,969 9,417 9,609 10,562 Dividends payable 44,159 9,381 9,385 9,381 9,392 Advance rents and security deposits 5,103 6,489 6,967 7,203 7,014 ---------- ----------- ---------- ----------- ---------- Total Liabilities 313,120 375,299 378,778 378,736 379,391 ---------- ----------- ---------- ----------- ---------- Minority interest 22,923 23,132 23,124 23,190 23,138 ---------- ----------- ---------- ----------- ---------- Shareholders' Equity: Common stock 297 296 296 296 296 Capital in excess of par value 469,779 469,010 468,715 468,485 468,277 Notes receivable from stock sales (5,066) (5,066) (5,457) (5,459) (6,250) Retained earnings 21,180 17,460 18,836 19,507 20,261 Treasury stock, at cost (131,648) (35,350) (34,851) (34,882) (34,091) ---------- ----------- ---------- ----------- ---------- Total Shareholders' Equity 354,542 446,350 447,539 447,947 448,493 ---------- ----------- ---------- ----------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $690,585 $844,781 $849,441 $849,873 $851,022 ========== =========== ========== =========== ========== Page 2
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Dollars in thousands 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 ------------ ------------- ------------ ------------- ------------ ASSETS Real Estate Investments: Operating properties: Land $91,919 $138,214 $140,061 $137,047 $111,697 Buildings 568,285 805,935 784,769 731,558 567,332 Furniture and equipment 3,082 2,631 2,693 3,578 2,220 Accumulated depreciation (123,999) (155,817) (137,452) (129,682) (104,700) ------------ ------------- ------------ ------------- ------------ Operating properties - net 539,287 790,963 790,071 742,501 576,549 Properties under construction: Land 0 2,128 8,347 11,318 8,978 Buildings 0 12,023 41,912 31,562 18,608 Undeveloped land held for investment 13,779 13,899 16,034 19,272 13,249 Undeveloped land held for sale 76 76 1,103 1,263 1,512 Cash and temporary investments 113,370 1,615 0 4,827 16,955 Accounts receivable, net 11,574 13,232 10,512 6,158 5,646 Investment in Koger Realty Services, Inc. 0 2,533 2,319 1,661 472 Cost in excess of fair value of net assets acquired, net 595 1,360 1,530 1,700 1,870 Other assets 11,904 13,193 13,911 14,733 12,258 ------------ ------------- ------------ ------------- ------------ TOTAL ASSETS $690,585 $851,022 $885,739 $834,995 $656,097 ============ ============= ============ ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loans payable $248,683 $343,287 $351,528 $307,903 $181,963 Accounts payable 4,962 4,961 12,716 12,139 8,802 Accrued real estate taxes payable 1,007 4,175 1,383 4,407 3,294 Accrued liabilities - other 9,206 10,562 13,162 9,288 6,623 Dividends payable 44,159 9,392 9,370 7,971 6,352 Advance rents and security deposits 5,103 7,014 6,570 5,432 4,801 ------------ ------------- ------------ ------------- ------------ Total Liabilities 313,120 379,391 394,729 347,140 211,835 ------------ ------------- ------------ ------------- ------------ Minority interest 22,923 23,138 23,184 23,092 0 ------------ ------------- ------------ ------------- ------------ Shareholders' Equity: Common stock 297 296 288 286 284 Capital in excess of par value 469,779 468,277 457,945 454,988 441,451 Notes receivable from stock sales (5,066) (6,250) 0 0 0 Retained earnings 21,180 20,261 30,546 30,020 30,947 Treasury stock, at cost (131,648) (34,091) (20,953) (20,531) (28,420) ------------ ------------- ------------ ------------- ------------ Total Shareholders' Equity 354,542 448,493 467,826 464,763 444,262 ------------ ------------- ------------ ------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $690,585 $851,022 $885,739 $834,995 $656,097 ============ ============= ============ ============= ============ Page 3
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) In thousands, except per share data Three Months Ended -------------------------------------------------------------------- 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00 ------------ ------------ ------------ ------------ ------------ REVENUES Rental and other rental services $ 40,161 $ 42,243 $ 41,628 $ 41,591 $ 40,446 Management fees 550 1,074 1,362 1,094 538 Interest 180 154 195 247 225 Income from Koger Realty Services, Inc. 0 0 0 81 293 ------------ ------------ ------------ ------------ ------------ Total revenues 40,891 43,471 43,185 43,013 41,502 ------------ ------------ ------------ ------------ ------------ EXPENSES Property operations 14,859 15,591 15,766 15,392 13,904 Depreciation and amortization 8,173 9,844 9,043 8,947 9,247 Mortgage and loan interest 5,825 6,316 6,427 6,636 6,709 General and administrative 2,264 2,276 1,833 2,039 4,129 Direct cost of management fees 720 798 945 915 291 Other 18 60 59 52 26 ------------ ------------ ------------ ------------ ------------ Total expenses 31,859 34,885 34,073 33,981 34,306 ------------ ------------ ------------ ------------ ------------ INCOME BEFORE GAIN (LOSS) ON SALE OR DISPOSITION OF ASSETS 9,032 8,586 9,112 9,032 7,196 Gain (loss) on sale or disposition of assets 39,189 0 3 (3) (422) ------------ ------------ ------------ ------------ ------------ INCOME BEFORE INCOME TAXES 48,221 8,586 9,115 9,029 6,774 Income taxes 235 257 152 40 (2) ------------ ------------ ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 47,986 8,329 8,963 8,989 6,776 Minority interest 107 323 250 364 164 ------------ ------------ ------------ ------------ ------------ NET INCOME $ 47,879 $ 8,006 $ 8,713 $ 8,625 $ 6,612 ============ ============ ============ ============ ============ EARNINGS PER SHARE - Diluted $ 1.86 $ 0.30 $ 0.32 $ 0.32 $ 0.25 ============ ============ ============ ============ ============ WEIGHTED AVERAGE SHARES - Diluted 25,785 26,912 26,869 26,883 26,876 ============ ============ ============ ============ ============ OPERATING MARGIN 63.0% 63.1% 62.1% 63.0% 65.6% ============ ============ ============ ============ ============ Page 4
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) In thousands, except per share data 2001 2000 1999 1998 1997 -------------- ------------- ------------- ------------- ------------ REVENUES Rental and other rental services $165,623 $164,733 $156,153 $133,663 $109,501 Management fees 4,080 1,793 2,384 2,277 2,637 Interest 776 703 457 446 1,274 Income from Koger Realty Services, Inc. 81 645 1,099 1,696 577 -------------- ------------- ------------- ------------- ------------ Total revenues 170,560 167,874 160,093 138,082 113,989 -------------- ------------- ------------- ------------- ------------ EXPENSES Property operations 61,608 61,868 60,582 53,719 44,453 Depreciation and amortization 36,007 35,133 32,314 28,381 24,073 Mortgage and loan interest 25,204 27,268 21,893 16,616 16,517 General and administrative 8,412 20,217 8,633 6,953 6,374 Direct cost of management fees 3,378 898 1,432 1,368 1,896 Other 189 217 1,143 383 413 Recovery of loss on land held for sale 0 0 0 0 (379) -------------- ------------- ------------- ------------- ------------- Total expenses 134,798 145,601 125,997 107,420 93,347 -------------- ------------- ------------- ------------- ------------- INCOME BEFORE GAIN ON SALE OR DISPOSITION OF ASSETS 35,762 22,273 34,096 30,662 20,642 Gain on sale or disposition of assets 39,189 6,015 3,851 35 1,955 -------------- ------------- ------------- ------------- ------------- INCOME BEFORE INCOME TAXES 74,951 28,288 37,947 30,697 22,597 Income taxes 684 (21) 187 956 935 -------------- ------------- ------------- ------------- ------------- INCOME BEFORE MINORITY INTEREST 74,267 28,309 37,760 29,741 21,662 Minority interest 1,044 1,156 1,174 139 0 -------------- ------------- ------------- ------------- ------------- INCOME BEFORE EXTRAORDINARY ITEM 73,223 27,153 36,586 29,602 21,662 Extraordinary loss on early retirement of debt 0 0 0 0 458 -------------- ------------- ------------- ------------- ------------- NET INCOME $73,223 $27,153 $36,586 $29,602 $21,204 ============== ============= ============= ============= ============= EARNINGS PER SHARE - Diluted $ 2.75 $ 1.01 $ 1.35 $ 1.10 $ 0.94 ============== ============= ============= ============= ============= WEIGHTED AVERAGE SHARES - Diluted 26,610 26,962 27,019 26,901 22,495 ============== ============= ============= ============= ============= OPERATING MARGIN 62.8% 62.4% 61.2% 59.8% 59.4% ============== ============= ============= ============= ============= Page 5
KOGER EQUITY, INC. AND SUBSIDIARIES FUNDS FROM OPERATIONS (Unaudited) In thousands, except per share data Three Months Ended --------------------------------------------------------------------- 12/31/01 9/30/01 6/30/01 3/31/01 12/31/00 ------------ ------------ ------------ ----------- ------------ Funds from Operations: Net income $ 47,879 $ 8,006 $ 8,713 $ 8,625 $ 6,612 Depreciation - real estate 7,270 8,849 8,097 8,045 8,372 Amortization - deferred tenant costs 514 597 552 509 492 Amortization - goodwill 42 43 43 42 42 Minority interest 107 323 250 364 164 Loss (gain) on sale of operating properties (39,189) 0 0 0 422 Loss (gain) on sale of non-operating assets 0 0 (3) 3 0 ------------ ------------ ------------ ----------- ------------ Funds from Operations 16,623 17,818 17,652 17,588 16,104 Cash Available for Distribution: Add (Deduct): Rental income from straight-line rents (338) (374) (491) (267) (470) Amortization of deferred financing costs 228 227 227 226 226 Building improvements (1,032) (867) (876) (274) (643) 2nd generation tenant improvements (1,625) (1,748) (1,725) (1,506) (1,254) 2nd generation leasing commissions (614) (278) (310) (187) (542) ------------ ------------ ------------ ----------- ------------ Cash Available for Distribution $ 13,242 $ 14,778 $ 14,477 $ 15,580 $ 13,421 ============ ============ ============ =========== ============ Weighted average common shares/units outstanding - diluted 26,785 27,912 27,869 27,883 27,876 ============ ============ ============ =========== ============ Per share/unit - diluted: Funds from operations $ 0.62 $ 0.64 $ 0.63 $ 0.63 $ 0.58 ============ ============ ============ =========== ============ Cash available for distribution $ 0.49 $ 0.53 $ 0.52 $ 0.56 $ 0.48 ============ ============ ============ =========== ============ Dividends paid $ 0.35 $ 0.35 $ 0.35 $ 0.35 $ 0.35 ============ ============ ============ =========== ============ Dividend payout ratio: Funds from operations 56.5% 54.7% 55.6% 55.6% 60.3% ============ ============ ============ =========== ============ Cash available for distribution 71.4% 66.0% 67.3% 62.5% 72.9% ============ ============ ============ =========== ============ Page 6
KOGER EQUITY, INC. AND SUBSIDIARIES FUNDS FROM OPERATIONS (Unaudited) In thousands, except per share data 2001 2000 1999 1998 1997 ----------- ------------ ------------ ------------ ------------ Funds from Operations: Net income $73,223 $27,153 $36,586 $29,602 $21,204 Depreciation - real estate 32,261 31,720 28,800 25,146 21,795 Amortization - deferred tenant costs 2,172 1,923 2,132 1,464 1,031 Amortization - goodwill 170 170 170 170 170 Minority interest 1,044 1,156 1,174 139 0 Gain on sale of operating properties (39,189) (5,963) (3,846) 0 0 Gain on sale of non-operating assets 0 (52) (5) (35) (1,955) Recovery of loss on land held for sale 0 0 0 0 (379) Loss on early retirement of debt 0 0 0 0 458 ----------- ------------ ------------ ------------ ------------ Funds from Operations 69,681 56,107 65,011 56,486 42,324 Cash Available for Distribution: Add (Deduct): Rental income from straight-line rents (1,470) (1,897) (1,764) (1,335) (454) Amortization of deferred financing costs 908 888 836 1,069 637 Building improvements (3,049) (2,804) (3,741) (2,883) (2,618) 2nd generation tenant improvements (6,604) (8,362) (13,204) (11,057) (7,513) 2nd generation leasing commissions (1,389) (1,712) (1,736) (1,649) (1,902) ----------- ------------ ------------ ------------ ------------ Cash Available for Distribution $58,077 $42,220 $45,402 $40,631 $30,474 =========== ============ ============ ============ ============ Weighted average common shares/units outstanding - diluted 27,610 27,962 28,019 27,093 22,495 =========== ============ ============ ============ ============ Per share/unit - diluted: Funds from operations $ 2.52 $ 2.01 $ 2.32 $ 2.08 $ 1.88 =========== ============ ============ ============ ============ Cash available for distribution $ 2.10 $ 1.51 $ 1.62 $ 1.50 $ 1.35 =========== ============ ============ ============ ============ Dividends paid $ 1.40 $ 1.40 $ 1.30 $ 1.10 $ 0.35 =========== ============ ============ ============ ============ Dividend payout ratio: Funds from operations 55.6% 69.7% 56.0% 52.9% 18.6% =========== ============ ============ ============ ============ Cash available for distribution 66.7% 92.7% 80.2% 73.3% 25.9% =========== ============ ============ ============ ============ Page 7
KOGER EQUITY, INC. AND SUBSIDIARIES NET OPERATING INCOME 2001
Year Year Three Months Ended To Date To Date ------------------------------------------------------- 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 12/31/00 Change ----------- ------------ ------------ -------------- ----------- ----------- ----------- $(000) $(000) $(000) $(000) $(000) $(000) $(000) Same Store Sales: Revenues 25,627 25,214 25,532 25,414 101,787 102,256 (469) Expenses 9,277 9,517 9,408 9,109 37,311 36,076 1,235 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 16,350 15,697 16,124 16,305 64,476 66,180 (1,704) ----------- ------------ ------------ -------------- ----------- ----------- ----------- 2000 and 2001 Acquisitions: Revenues 0 0 0 0 0 0 0 Expenses 0 0 0 0 0 0 0 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 0 0 0 0 0 0 0 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Building Completions (1): Revenues 1,684 2,291 2,753 2,684 9,412 2,104 7,308 Expenses 644 700 833 830 3,007 1,137 1,870 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 1,040 1,591 1,920 1,854 6,405 967 5,438 ----------- ------------ ------------ -------------- ----------- ----------- ----------- 2000 and 2001 Property Sales: Revenues 14,280 14,123 13,958 12,063 54,424 60,373 (5,949) Expenses 5,471 5,549 5,350 4,920 21,290 24,655 (3,365) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 8,809 8,574 8,608 7,143 33,134 35,718 (2,584) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Total Company: Revenues 41,591 41,628 42,243 40,161 165,623 164,733 890 Expenses 15,392 15,766 15,591 14,859 61,608 61,868 (260) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 26,199 25,862 26,652 25,302 104,015 102,865 1,150 =========== ============ ============ ============== =========== =========== =========== (1) Includes buildings completed after 12/31/99 except for 3500 Building which was sold on 12/12/01. Page 8
KOGER EQUITY, INC. AND SUBSIDIARIES NET OPERATING INCOME 2000 Three Months Ended Year ------------------------------------------------------------ To Date 3/31/00 6/30/00 9/30/00 12/31/00 12/31/00 ------------ ------------ ------------- --------------- ------------ $(000) $(000) $(000) $(000) $(000) Same Store Sales: Revenues 25,256 25,819 25,595 25,586 102,256 Expenses 8,882 9,394 9,685 8,115 36,076 ------------ ------------ ------------- --------------- ------------ Net Operating Income 16,374 16,425 15,910 17,471 66,180 ------------ ------------ ------------- --------------- ------------ 2000 Acquisitions: Revenues 0 0 0 0 0 Expenses 0 0 0 0 0 ------------ ------------ ------------- --------------- ------------ Net Operating Income 0 0 0 0 0 ------------ ------------ ------------- --------------- ------------ Building Completions (1): Revenues 28 380 554 1,142 2,104 Expenses 219 381 455 82 1,137 ------------ ------------ ------------- --------------- ------------ Net Operating Income (191) (1) 99 1,060 967 ------------ ------------ ------------- --------------- ------------ 2000 and 2001 Property Sales: Revenues 16,122 15,932 14,601 13,718 60,373 Expenses 6,321 6,500 6,127 5,707 24,655 ------------ ------------ ------------- --------------- ------------ Net Operating Income 9,801 9,432 8,474 8,011 35,718 ------------ ------------ ------------- --------------- ------------ Total Company: Revenues 41,406 42,131 40,750 40,446 164,733 Expenses 15,422 16,275 16,267 13,904 61,868 ------------ ------------ ------------- --------------- ------------ Net Operating Income 25,984 25,856 24,483 26,542 102,865 ============ ============ ============= =============== ============ (1) Includes buildings completed after 12/31/99 except for 3500 Building which was sold 12/12/01. Page 9
KOGER EQUITY, INC. AND SUBSIDIARIES SUMMARY OF OUTSTANDING DEBT AS OF DECEMBER 31, 2001
Monthly Interest Debt Outstanding Balance ----------------------------- Description Rate Maturity Service 12/31/01 12/31/00 - ---------------------------------------------------- ------------- --------------- ------------- ------------- ------------- $(000) $(000) $(000) Fixed Rate: Northwestern Mutual - Tranche A 8.19% 01/02/07 789 93,292 95,043 Northwestern Mutual - Tranche B 8.33% 01/02/09 710 83,006 84,548 Northwestern Mutual - Tranche C 7.10% 01/02/07 105 14,200 14,441 Northwestern Mutual - Tranche D 7.10% 01/02/09 216 29,270 29,766 New York Life 8.00% 12/10/02 68 7,903 8,074 Allstate Life 8.20% 12/01/06 165 19,468 19,838 ------------- ------------- ------------- Total Fixed Rate Debt 8.04% 2,053 247,139 251,710 ------------- ------------- ------------- Variable Rate: GE Capital 7.88% 06/30/21 13 1,544 1,577 Secured Revolving Credit Facility - $125 Million 12/27/2004 0 90,000 ------------- ------------- ------------- Total Variable Rate Debt 7.88% 13 1,544 91,577 ------------- ------------- ------------- Total Debt 8.04% 2,066 248,683 343,287 ============= ============= =============
Amount ------------- $(000) Schedule of Mortgage Maturities by Year (1): 2002 12,702 2003 5,200 2004 5,629 2005 6,110 2006 23,704 Thereafter 195,338 ------------- Total 248,683 ============= (1) Does not include Secured Revolving Credit Facility. Page 10
KOGER EQUITY, INC. AND SUBSIDIARIES OPERATING PROPERTY ACQUISITIONS 1999, 2000 and 2001 Percent Square Date Purchase Leased Property Location Feet Purchased Price (1) 12/31/01 - ------------------------------ -------------------------- -------------- --------------- ---------------- ------------- 1999 Charlotte University Charlotte, NC 190,600 11/01/99 $23,100,000 99% Orlando Lake Mary Orlando, FL 318,000 11/01/99 41,000,000 97% -------------- ---------------- 508,600 $64,100,000 97% ============== ================ ============= 2000 None 2001 None (1) Purchase price consists of the contract price only and does not include closing costs. Page 11
KOGER EQUITY, INC. AND SUBSIDIARIES BUILDING COMPLETIONS 1999, 2000 and 2001 Percent Square Month Leased Property Location Feet Completed Total Cost (1) 12/31/01 - ------------------------------- ---------------------------- ------------- -------------- ---------------- ------------ 1999 Glenridge Building Orlando, FL 75,800 01/1999 $ 6,251,000 100% Wingate Building (3) Greensboro, NC 98,300 01/1999 7,143,000 NA Chisholm Building (3) San Antonio, TX 141,500 02/1999 9,888,000 NA Coventry III Building (2) El Paso, TX 21,900 07/1999 2,001,000 NA Carlton Building Jacksonville, FL 112,000 09/1999 10,849,000 100% Landstar Building Jacksonville, FL 180,900 12/1999 16,057,000 100% ------------- ---------------- 630,400 $52,189,000 100% ============= ================ ============ 2000 3500 Building (3) Birmingham, AL 144,900 01/2000 $13,272,000 NA Columbia Building Atlanta, GA 90,200 01/2000 9,384,000 100% Stuart Building Memphis, TN 83,700 01/2000 7,551,000 90% Dover Building Orlando, FL 67,400 05/2000 5,867,000 100% Duluth Building Atlanta, GA 103,200 05/2000 10,098,000 82% Pasco Building St. Petersburg, FL 89,800 05/2000 7,662,000 79% ------------- ---------------- 579,200 $53,834,000 89% ============= ================ ============ 2001 Collier Building Jacksonville, FL 113,500 02/2001 $10,575,000 100% Rosemont Building Orlando, FL 67,400 06/2001 5,859,000 77% ------------- ---------------- 180,900 $16,434,000 91% ============= ================ ============ (1) Includes land and building construction costs. Does not include tenant improvement costs. (2) The El Paso Center was sold on August 11, 2000. (3) These buildings were sold on December 12, 2001. Page 12
KOGER EQUITY, INC. AND SUBSIDIARIES BUILDINGS UNDER CONSTRUCTION DECEMBER 31, 2001 Square Expected Projected Pre-Leasing Property Location Feet Completion Cost (1) to Date - ----------------------------- --------------------- ------------ -------------- ---------------- --------------- None. ------------ ---------------- - $ - ============ ================ =============== (1) Includes land and building construction costs. Does not include tenant improvement costs. Page 13
KOGER EQUITY, INC. AND SUBSIDIARIES TWENTY-FIVE LARGEST TENANTS BASED ON ANNUALIZED GROSS RENTS AS OF DECEMBER 31, 2001 Remaining Annualized Number Leased Term Percent Gross Percent Tenant (a) of Leases Square Feet (Months) of Leased Rent (b) of Rent - ------------------------------------ ------------ --------------- ------------ ------------ --------------- ------------ U S Government 44 900,007 92 14.5% $16,262,129 15.0% State of Florida 48 766,800 30 12.4% 14,015,541 12.9% Blue Cross Blue Shield 10 531,678 23 8.6% 8,129,721 7.5% Landstar Systems Holding, Inc. 1 176,000 155 2.8% 2,610,523 2.4% CitiFinancial 1 159,827 68 2.6% 2,362,885 2.2% Zurich Insurance Company 2 97,913 61 1.6% 1,959,903 1.8% Siemens 7 115,832 14 1.9% 1,922,452 1.8% General Electric 4 92,686 13 1.5% 1,870,184 1.7% Hanover Insurance 1 89,500 12 1.4% 1,824,779 1.7% Hoechst Celanese Corp. 1 92,376 18 1.5% 1,687,019 1.6% Ford Motor Company 4 63,271 30 1.0% 1,359,202 1.3% Homeside Lending, Inc. 1 69,020 22 1.1% 1,163,528 1.1% Dynamic Healthcare Tech Inc. 1 53,761 38 0.9% 1,078,325 1.0% BellSouth 4 66,526 49 1.1% 964,478 0.9% Moody's Investor Services 1 58,072 8 0.9% 929,152 0.9% Sara Lee Corp. 1 51,188 42 0.8% 895,790 0.8% Best Software, Inc. 1 47,110 84 0.8% 849,393 0.8% Navision Software US, Inc. 1 37,783 68 0.6% 719,955 0.7% Check Solutions Company 1 40,307 85 0.6% 709,806 0.7% Commercial Union Insurance Co. 1 36,306 47 0.6% 694,270 0.6% Enovia Corporation 1 38,062 32 0.6% 679,659 0.6% Sungard Trust Systems Inc. 2 43,569 54 0.7% 666,606 0.6% HireCheck Inc. 1 30,226 74 0.5% 640,187 0.6% Johnson & Johnson 1 29,302 22 0.5% 553,807 0.5% Insurance Mgmt Solutions 1 35,507 38 0.6% 531,192 0.5% ------------ --------------- --------------- Total 141 3,722,629 60.0% $65,080,486 59.9% ============ =============== ============ =============== ============ Weighted Average 53 ============ (a) Actual tenant may be a subsidiary of, or an entity affiliated with, the named tenant. (b) Annualized Gross Rent is the monthly contractual base rent and current reimbursements under existing leases as of December 31, 2001 multiplied by 12. Page 14
KOGER EQUITY, INC. AND SUBSIDIARIES REGIONAL SUMMARY OF MSAs AS OF DECEMBER 31, 2001 # of Age % Square % MSA State Bldgs (yrs) Square Feet Feet NOI (a) - ---------------------------- ------------ -------- -------- ----------------- -------------- ------------ Atlanta GA 25 16 1,547,890 22.4% 24.6% Orlando FL 28 17 1,300,503 18.9% 20.7% Jacksonville FL 11 7 1,166,563 16.9% 18.3% Tallahassee FL 19 19 833,372 12.1% 10.3% Charlotte NC 15 14 708,584 10.3% 8.8% St. Petersburg FL 15 18 669,807 9.7% 7.5% Memphis TN 6 8 527,180 7.6% 7.0% Richmond VA 1 16 145,008 2.1% 2.8% -------- ----------------- -------------- ------------ Total 120 14 6,898,907 100.0% 100.0% ======== ======== ================= ============== ============ (a) Based on net operating income for the fourth quarter of 2001. Page 15
KOGER EQUITY, INC. AND SUBSIDIARIES OCCUPANCY SUMMARY AS OF DECEMBER 31, 2001 Square Footage Percentage ------------------------------------------------------- ---------------------------------------------- Occupied Leased Vacant Total Occupied Leased Vacant Total ------------- ------------- ------------- ------------- ------------ ---------- ---------- ----------- Atlanta 1,366,573 885 180,432 1,547,890 88.3% 0.1% 11.7% 100.0% Orlando 1,207,682 7,710 85,111 1,300,503 92.9% 0.6% 6.5% 100.0% Jacksonville 1,157,035 0 9,528 1,166,563 99.2% 0.0% 0.8% 100.0% Tallahassee 665,431 0 167,941 833,372 79.8% 0.0% 20.2% 100.0% Charlotte 642,225 0 66,359 708,584 90.6% 0.0% 9.4% 100.0% St. Petersburg 571,475 0 98,332 669,807 85.3% 0.0% 14.7% 100.0% Memphis 453,372 0 73,808 527,180 86.0% 0.0% 14.0% 100.0% Richmond 145,008 0 0 145,008 100.0% 0.0% 0.0% 100.0% ------------- ------------- ------------- ------------- ------------ ---------- ---------- ----------- Total 6,208,801 8,595 681,511 6,898,907 90.0% 0.1% 9.9% 100.0% ============= ============= ============= ============= ============ ========== ========== =========== Page 16
KOGER EQUITY, INC. AND SUBSIDIARIES LEASE DISTRIBUTION AS OF DECEMBER 31, 2001 Tenant Occupied Percent Annualized Average Percent Number of Percent of Square of Square Gross Annualized of Total Remaining Category Leases (1) Leases Feet (2) Feet Rent (3) Rent PSF Rents Term - -------------------------- ---------- ---------- ------------ ---------- -------------- ----------- ---------- ---------- 2,500 or Less 435 51.2% 531,796 8.6% $9,228,417 $17.35 8.5% 23 2,501 - 5,000 188 22.2% 674,558 10.9% 12,215,779 18.11 11.2% 28 5,001 - 7,500 62 7.3% 378,290 6.1% 6,822,628 18.04 6.3% 28 7,501 - 10,000 36 4.2% 316,853 5.1% 5,568,274 17.57 5.1% 30 10,001 - 20,000 57 6.7% 793,447 12.9% 14,274,712 17.99 13.1% 33 20,001 - 40,000 39 4.6% 1,157,032 18.8% 19,835,091 17.14 18.2% 56 40,001 - 60,000 17 2.0% 860,203 14.0% 15,855,995 18.43 14.6% 53 60,001 - 100,000 12 1.4% 958,984 15.6% 17,776,500 18.54 16.4% 50 100,001 or Greater 3 0.4% 495,835 8.0% 7,157,517 14.44 6.6% 83 ---------- ---------- ------------ ---------- -------------- ---------- Total / Weighted Average 849 100.0% 6,166,998 100.0% $108,734,913 $17.63 100.0% 45 ========== ========== ============ ========== ============== =========== ========== ==========
Square Feet % of Total -------------- ----------- Square footage occupied by tenants 6,166,998 89.4% Square footage attributable to vending/antenna 903 0.0% Square footage occupied by owner/building use 40,900 0.6% -------------- ----------- Total Occupied Square Footage 6,208,801 90.0% -------------- ----------- Leased square footage 8,595 0.1% Vacant square footage 681,511 9.9% -------------- ----------- Total Net Rentable Square Footage 6,898,907 100.0% ============== =========== (1) Analysis does not include owner occupied space, vending leases and antenna leases. (2) Total net rentable square feet represented by existing leases. (3) Annualized Gross Rent is the monthly contractual base rent and current reimbursements under existing leases as of December 31, 2001 multiplied by 12. Page 17
KOGER EQUITY, INC. AND SUBSIDIARIES LEASE EXPIRATIONS AS OF DECEMBER 31, 2001 City Item 2001 2002 2003 2004 2005 2006 - ------------------- ----------------------- ------------- ------------- ------------ ------------- ------------- ------------ Atlanta Square Feet (1) 7,744 255,907 79,893 101,906 182,868 65,843 % Square Feet (2) 0.50% 16.53% 5.16% 6.58% 11.81% 4.25% Annualized Rent (3) 162,882 4,778,987 1,507,783 1,964,229 3,454,383 1,112,651 Number of Leases (4) 6 48 31 35 24 19 Rent PSF $21.03 $18.67 $18.87 $19.27 $18.89 $16.90 Orlando Square Feet (1) 60,766 243,268 298,185 234,070 125,659 74,639 % Square Feet (2) 4.67% 18.71% 22.93% 18.00% 9.66% 5.74% Annualized Rent (3) 883,010 4,407,344 5,165,156 4,343,656 2,299,686 1,425,834 Number of Leases (4) 12 56 60 54 17 13 Rent PSF $14.53 $18.12 $17.32 $18.56 $18.30 $19.10 Jacksonville Square Feet (1) 0 8,176 483,556 92,737 11,987 79,821 % Square Feet (2) 0.00% 0.70% 41.45% 7.95% 1.03% 6.84% Annualized Rent (3) 0 153,157 7,310,849 1,732,074 223,333 1,431,724 Number of Leases (4) 0 5 15 7 5 3 Rent PSF $0.00 $18.73 $15.12 $18.68 $18.63 $17.94 Tallahassee Square Feet (1) 121,520 137,835 80,806 65,207 3,643 174,487 % Square Feet (2) 14.58% 16.54% 9.70% 7.82% 0.44% 20.94% Annualized Rent (3) 2,208,612 2,389,667 1,557,760 1,093,228 61,135 3,739,256 Number of Leases (4) 9 48 11 8 2 5 Rent PSF $18.17 $17.34 $19.28 $16.77 $16.78 $21.43 Charlotte Square Feet (1) 3,715 122,374 223,662 138,396 34,887 56,516 % Square Feet (2) 0.52% 17.27% 31.56% 19.53% 4.92% 7.98% Annualized Rent (3) 73,169 2,058,318 4,028,192 2,423,510 579,384 866,316 Number of Leases (4) 1 13 29 28 9 6 Rent PSF $19.70 $16.82 $18.01 $17.51 $16.61 $15.33 St. Petersburg Square Feet (1) 24,773 70,226 108,537 113,481 77,386 35,244 % Square Feet (2) 3.70% 10.48% 16.20% 16.94% 11.55% 5.26% Annualized Rent (3) 361,742 1,166,390 1,591,494 1,616,298 1,233,750 591,578 Number of Leases (4) 4 43 30 20 10 8 Rent PSF $14.60 $16.61 $14.66 $14.24 $15.94 $16.79 Memphis Square Feet (1) 0 92,742 67,968 44,002 125,475 71,280 % Square Feet (2) 0.00% 17.59% 12.89% 8.35% 23.80% 13.52% Annualized Rent (3) 0 1,725,271 1,302,273 844,182 2,301,241 1,252,483 Number of Leases (4) 0 18 19 13 20 9 Rent PSF $0.00 $18.60 $19.16 $19.19 $18.34 $17.57 Richmond Square Feet (1) 0 33,866 38,751 12,541 45,704 8,236 % Square Feet (2) 0.00% 23.35% 26.72% 8.65% 31.52% 5.68% Annualized Rent (3) 0 618,035 754,631 235,709 844,587 149,730 Number of Leases (4) 0 6 8 4 5 3 Rent PSF $0.00 $18.25 $19.47 $18.80 $18.48 $18.18 Total Square Feet (1) 218,518 964,394 1,381,358 802,340 607,609 566,066 % Square Feet (2) 3.17% 13.98% 20.02% 11.63% 8.81% 8.21% Annualized Rent (3) 3,689,415 17,297,169 23,218,138 14,252,886 10,997,499 10,569,572 Number of Leases (4) 32 237 203 169 92 66 Rent PSF $16.88 $17.94 $16.81 $17.76 $18.10 $18.67
KOGER EQUITY, INC. AND SUBSIDIARIES LEASE EXPIRATIONS AS OF DECEMBER 31, 2001 City Item 2007 2008 2009 2010 2011+ Total - ------------------- --------------------- ------------- ------------- ------------ ------------ ------------- ------------- Atlanta Square Feet (1) 104,271 130,136 146,500 98,174 182,935 1,356,177 % Square Feet (2) 6.74% 8.41% 9.46% 6.34% 11.82% 87.61% Annualized Rent (3) 2,201,139 2,319,838 3,100,344 1,737,588 3,182,262 25,522,086 Number of Leases (4) 2 5 5 1 4 180 Rent PSF $21.11 $17.83 $21.16 $17.70 $17.40 $18.82 Orlando Square Feet (1) 50,642 90,204 25,000 635 0 1,203,068 % Square Feet (2) 3.89% 6.94% 1.92% 0.05% 0.00% 92.51% Annualized Rent (3) 719,458 1,564,116 459,306 11,527 0 21,279,093 Number of Leases (4) 3 6 1 1 0 223 Rent PSF $14.21 $17.34 $18.37 $18.15 $0.00 $17.69 Jacksonville Square Feet (1) 267,516 0 0 0 202,947 1,146,740 % Square Feet (2) 22.93% 0.00% 0.00% 0.00% 17.40% 98.30% Annualized Rent (3) 4,499,001 0 0 0 3,138,145 18,488,283 Number of Leases (4) 4 0 0 0 2 41 Rent PSF $16.82 $0.00 $0.00 $0.00 $15.46 $16.12 Tallahassee Square Feet (1) 0 48,876 0 0 26,696 659,070 % Square Feet (2) 0.00% 5.86% 0.00% 0.00% 3.20% 79.08% Annualized Rent (3) 0 872,437 0 0 340,374 12,262,469 Number of Leases (4) 0 1 0 0 1 85 Rent PSF $0.00 $17.85 $0.00 $0.00 $12.75 $18.61 Charlotte Square Feet (1) 18,818 0 40,307 0 0 638,675 % Square Feet (2) 2.66% 0.00% 5.69% 0.00% 0.00% 90.13% Annualized Rent (3) 353,778 0 709,806 0 0 11,092,473 Number of Leases (4) 1 0 1 0 0 88 Rent PSF $18.80 $0.00 $17.61 $0.00 $0.00 $17.37 St. Petersburg Square Feet (1) 31,350 77,336 12,709 17,686 0 568,728 % Square Feet (2) 4.68% 11.55% 1.90% 2.64% 0.00% 84.91% Annualized Rent (3) 593,318 1,489,580 170,936 242,570 0 9,057,656 Number of Leases (4) 3 2 1 1 0 122 Rent PSF $18.93 $19.26 $13.45 $13.72 $0.00 $15.93 Memphis Square Feet (1) 2,218 47,188 0 0 0 450,873 % Square Feet (2) 0.42% 8.95% 0.00% 0.00% 0.00% 85.53% Annualized Rent (3) 39,420 883,435 0 0 0 8,348,305 Number of Leases (4) 1 3 0 0 0 83 Rent PSF $17.77 $18.72 $0.00 $0.00 $0.00 $18.52 Richmond Square Feet (1) 4,569 0 0 0 0 143,667 % Square Feet (2) 3.15% 0.00% 0.00% 0.00% 0.00% 99.08% Annualized Rent (3) 81,855 0 0 0 0 2,684,547 Number of Leases (4) 1 0 0 0 0 27 Rent PSF $17.92 $0.00 $0.00 $0.00 $0.00 $18.69 Total Square Feet (1) 479,384 393,740 224,516 116,495 412,578 6,166,998 % Square Feet (2) 6.95% 5.71% 3.25% 1.69% 5.98% 89.39% Annualized Rent (3) 8,487,969 7,129,406 4,440,392 1,991,685 6,660,781 108,734,912 Number of Leases (4) 15 17 8 3 7 849 Rent PSF $17.71 $18.11 $19.78 $17.10 $16.14 $17.63 (1) Total net rentable square feet represented by expiring leases. (2) Percentage of total net rentable feet represented by expiring leases. (3) Annualized Gross Rent is the monthly contractual base rent and current reimbursements under existing leases as of December 31, 2001 multiplied by 12. (4) Analysis does not include owner occupied space, vending leases and antenna leases. Page 18
KOGER EQUITY, INC. AND SUBSIDIARIES NET EFFECTIVE RENTS EXECUTED LEASES YEAR TO DATE New (2) Backfill (3) Renewal (4) Total --------------- ------------------- ----------------- ---------------- Number of leases (1) 108 64 153 325 Rentable square footage leased 281,262 180,042 773,571 1,234,875 Average per rentable square foot over the lease term: Gross Rent $ 17.96 $ 17.23 $ 16.75 $ 17.10 Tenant improvements (2.36) (1.42) (0.38) (0.98) Leasing commissions (0.32) (0.25) (0.15) (0.20) Other/concessions - - - - --------------- ----------------- ----------------- ---------------- Effective Rent 15.28 15.56 16.22 15.91 Expense stop (5.78) (5.81) (5.62) (5.68) --------------- ----------------- ----------------- ---------------- Equivalent effective net rent $ 9.50 $ 9.75 $ 10.60 $ 10.23 =============== ================= ================= ================ Average term (yrs) 5 5 3 4 (1) Analysis includes leases fully executed from 1/1/01 to 12/31/01 for buildings owned at 12/31/01. (2) New is defined as First Generation space or space that has been vacant more than nine months. (3) Backfill is defined as vacated space that has been relet within nine months. (4) Renewal is defined as a renewal for their currently occupied space. Page 19
KOGER EQUITY, INC. AND SUBSIDIARIES SAME SUITE ANALYSIS YEAR TO DATE DECEMBER 31, 2001 Total Leasing (a) ------------------------------------------------------------------------------------------------------------------ RSF New Net Expiring Net Percent Leased Rent per RSF Rent per RSF Change Change --------------------- ------------------------- -------------------------- -------------------- --------------- Atlanta 204,544 $13.29 $11.79 $1.50 12.7% Orlando 123,126 $12.17 $11.15 $1.02 9.1% Jacksonville 258,518 $10.63 $9.28 $1.36 14.6% Tallahassee 147,870 $10.11 $10.86 ($0.75) -6.9% Charlotte 61,129 $9.97 $10.26 ($0.30) -2.9% St. Petersburg 177,911 $10.74 $9.93 $0.81 8.2% Memphis 96,658 $10.59 $11.26 ($0.67) -6.0% Richmond 18,378 $11.95 $11.98 ($0.03) -0.2% ----------------- Total 1,088,134 $11.23 $10.56 $0.67 6.4% ================= ========================= ========================== ==================== =================== (a) Analysis includes leases fully executed from 1/1/01 to 12/31/01 for buildings owned at 12/31/01. Does not include First Generation space. Page 20
EX-99 5 koger99b.txt EXHIBIT 99(B) Exhibit 99(b) KOGER EQUITY, INC. 433 Plaza Real, Suite 335 Boca Raton, Florida 33432 Koger Equity, Inc. Announces Dividend Boca Raton, Florida--February 21, 2002-- Koger Equity, Inc. (NYSE:KE) announced today that its Board of Directors declared a quarterly dividend of $0.35 per share to be paid on May 2, 2002, to shareholders of record on March 31, 2002. Koger Equity, Inc. owns and operates 12 suburban office parks and three freestanding buildings, containing approximately 7.7 million rentable square feet, located in eight cities in the Southeast and manages for others eight suburban office parks and two freestanding buildings, containing 3.96 million rentable square feet, located in six cities in the Southeast and Southwest. For more information about Koger Equity contact its website at http://www.koger.com or Investor Relations, 8880 Freedom Crossing Trail, Suite 101, Jacksonville, Florida 32256-8280, 904/538-8871. ### -----END PRIVACY-ENHANCED MESSAGE-----