EX-99 3 a4179133-99.txt EXHIBIT 99 Exhibit 99 Koger Equity Announces First Quarter 2002 Results Boca Raton, Florida--May 13, 2002--Koger Equity, Inc. (NYSE:KE) today reported results for the quarter ended March 31, 2002. Certain of the Company's results, as compared to the prior year, have been affected by the sale of assets in December 2001. Highlights include: -- Same store net operating income for the first quarter 2002 increased 6.3%, compared to the first quarter 2001. Occupancy on this same store portfolio consisting of 118 buildings decreased from 91.2% at March 31, 2001 to 89.7% at March 31, 2002. -- Operating margins increased to 65.9% in the first quarter 2002 as compared to 63.0% for the first quarter 2001. -- The Company's tenant retention rate was 76.9% for the quarter ended March 31, 2002. -- The Company signed 475,000 square feet of leases in 72 transactions in the first quarter 2002 at an average cost of $0.78 per square foot per year. -- The weighted average net rental rate on leases signed, excluding first generation space was $11.20 as compared to $11.18 for the average rental rate on expiring leases, a 0.2% increase in rental rates. -- Dividend coverage to funds from operations was 64.6% and cash available for distribution was 79.1% for the first quarter. Funds from operations (FFO) for the first quarter totaled $11.6 million or $0.54 per share on a fully diluted basis, as compared with $17.6 million or $0.63 per share on a fully diluted basis, for the first quarter 2001. This represents a 14.3% decrease in fully diluted FFO per share between years. Revenues for the first quarter 2002 totaled $31.6 million, as compared to revenues of $43.0 million for the same period in 2001, a 26.5% decrease. For purposes of FFO, the weighted average number of common shares totaled 21,350,000 for the first quarter 2002 on a fully diluted basis. Earnings per share for the three months ended March 31, 2002 was $0.24 per diluted share. Other first quarter 2002 highlights include the acquisition of Three Ravinia Drive, a 31-story, Class A office building, consisting of 804,756 square feet, in Atlanta, Georgia. Additionally, the Company acquired the limited partnership interests in Koger-Vanguard Partners, L.P., which owns an office park in Charlotte, North Carolina, containing 13 buildings and approximately 525,000 rentable square feet. Earnings Estimates On our scheduled May 14, 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, the Company's 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 the Company'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 the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements contained or incorporated by reference herein, the Company 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. Koger Equity, Inc. owns and operates 121 office buildings, containing 7.71 million rentable square feet, located primarily in 12 suburban office parks in eight cities in the Southeastern United States. In addition, the Company manages for others 75 office buildings and one retail property, containing 3.96 million rentable square feet, located primarily in eight suburban office parks in six cities in the Southeastern and Southwestern United States. Copies of the Company's March 31, 2002 First Quarter Supplemental Disclosure package are available upon request to Investor Relations, 433 Plaza Real, Suite 335, Boca Raton, Florida 33432-3945, or call 1-800-850-2037. Additionally, the First Quarter Supplemental Disclosure package and further information about Koger Equity, Inc. 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 Three Months Ended 3/31/02 3/31/01 Revenues Rental and other rental services $30,595 $41,591 Management fees 788 1,094 Interest 145 247 Other 3 81 ------------ ----------- Total revenues 31,531 43,013 ------------ ----------- Expenses Property operations 10,459 15,392 Depreciation and amortization 6,522 8,721 Mortgage and loan interest 5,795 6,862 General and administrative 2,510 2,039 Direct cost of management fees 1,011 915 Other 32 52 ------------ ----------- Total expenses 26,329 33,981 ------------ ----------- Income Before Loss on Sale or Disposition of Assets, Income Taxes and Minority Interest 5,202 9,032 Gain (loss) on sale or disposition of assets 1 (3) ------------ ----------- Income Before Income Taxes and Minority Interest 5,203 9,029 Income taxes 32 40 ------------ ----------- Income Before Minority Interest 5,171 8,989 Minority interest 20 364 ------------ ----------- Net Income $5,151 $ 8,625 ============ =========== Earnings Per Share: Basic $ 0.24 $ 0.32 ============ =========== Diluted $ 0.24 $ 0.32 ============ =========== Weighted Average Shares: Basic 21,159 26,825 ============ =========== Diluted 21,350 26,883 ============ ===========
KOGER EQUITY, INC. FUNDS FROM OPERATIONS (In Thousands except per Share Data) For the Three Months Ended 3/31/02 3/31/01 Net income $5,151 $ 8,625 Depreciation - real estate 6,042 8,045 Amortization - deferred tenant costs 364 509 Amortization - goodwill -- 42 Minority interest 20 364 Loss (gain) on sale or disposition: Operating properties -- -- Non-operating assets (1) 3 ------- -------- Funds from operations $11,576 $ 17,588 ======= ======== Weighted average shares/units outstanding - diluted 21,350 27,883 Funds from operations, per diluted share/unit $ 0.54 $ 0.63
KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) March 31, December 31, 2002 2001 ------------ ----------- ASSETS Real estate investments: Operating properties: Land $ 110,084 $ 91,919 Buildings 670,895 568,285 Furniture and equipment 2,933 3,082 Accumulated depreciation (129,617) (123,999) --------- --------- Operating properties, net 654,295 539,287 Undeveloped land held for investment 13,779 13,779 Undeveloped land held for sale, net of allowance 76 76 Cash and cash equivalents 16,461 113,370 Accounts receivable, net of allowance for uncollectible accounts of $1,099 and $1,114 10,441 11,574 Cost in excess of fair value of net assets acquired, net of accumulated amortization of $683 and $683 595 595 Other assets 11,722 11,904 ---------- ---------- TOTAL ASSETS $707,369 $690,585 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loans payable $327,415 $248,683 Accounts payable 2,046 4,962 Accrued real estate taxes payable 3,273 1,007 Other accrued liabilities 8,607 9,206 Dividends payable 7,433 44,159 Advance rents and security deposits 4,876 5,103 ---------- ---------- Total Liabilities 353,650 313,120 ---------- ---------- Minority interest -- 22,923 ---------- ---------- Shareholders' equity: Common stock 298 297 Capital in excess of par value 471,205 469,779 Notes receivable from stock sales (5,066) (5,066) Retained earnings 18,898 21,180 Treasury stock, at cost (131,616) (131,648) ---------- ---------- Total Shareholders' Equity 353,719 354,542 ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $707,369 $690,585 ========== ==========