-----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, HgRIY0DAOmFgfvWDUSYk+AmaQ0pTBYLXFJPhJ/fh7OhJEKqus6FXN0cngYnZKugT sCy6PaN4eXdPzWQKMTVz7Q== 0001157523-02-001348.txt : 20021107 0001157523-02-001348.hdr.sgml : 20021107 20021107155101 ACCESSION NUMBER: 0001157523-02-001348 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021105 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021107 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: 02812637 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 a4286297.txt KOGER EQUITY, INC. 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): November 5, 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) 1 Item 9. Regulation FD Disclosure Koger Equity, Inc. announced its quarterly results for the period ended September 30, 2002, as more particularly described in its News Release, dated November 5, 2002, and related Supplemental Information, dated September 30, 2002, on the Company's web site, a copy of which is attached hereto as Exhibit 99 and by this reference made a part hereof. For more information on Koger Equity, Inc., contact the company at 866-321-0712 or visit its Web site at www.koger.com. Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit Number Description of Exhibit ------ ---------------------- 99 Koger Equity, Inc. News Release, dated November 5, 2002, and related Supplemental Information, dated September 30, 2002. 2 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: November 5, 2002 By: /s/ Robert E.Onisko ----------------------------------- Robert E. Onisko Title: Chief Financial Officer 3 EXHIBIT INDEX The following designated exhibit is filed herewith: Exhibit Number Description of Exhibit ------ ---------------------- 99 Koger Equity, Inc. News Release, dated November 5, 2002, and related Supplemental Information, dated September 30, 2002. 4 EX-99 3 a4286297_ex99.txt EXHIBIT 99 Koger Equity Announces Third Quarter 2002 Results BOCA RATON, Fla.--(BUSINESS WIRE)--Nov. 5, 2002--Koger Equity, Inc. (NYSE:KE) today reported results for the third quarter ended September 30, 2002. Certain of the Company's results, as compared to the prior year, have been affected by the sale of assets in December 2001. For the third quarter, Koger reported revenues of $32.8 million, as compared to revenues of $43.5 million for the same period in 2001. Funds from operations (FFO) for the third quarter totaled $10.9 million or $0.51 per share on a fully diluted basis, as compared with $17.8 million or $0.64 per share on a fully diluted basis for the third quarter 2001. Operating margins were 62.8% in the third quarter 2002 as compared to 63.1% for the third quarter 2001. Earnings per share (EPS) for the three months ended September 30, 2002 was $0.21 per diluted share. For the purposes of FFO and EPS, the weighted average number of common shares totaled 21,410,000 for the third quarter 2002 on a fully diluted basis. Operating results were lower as the result of a same store net operating income decrease of 1.8% compared to the third quarter 2001. Occupancy of this same store portfolio consisting of 118 buildings was 89.1% at September 30, 2001 compared to 88.1% at September 30, 2002. The Company signed 368,000 square feet of leases in 70 transactions in the third quarter 2002 at an average cost of $0.90 per square foot per year. The weighted average net rental rate on leases signed, excluding first generation space was $11.72 as compared to $11.31 for the average rental rate on expiring leases, a 3.6% increase in rental rates. Dividend coverage to FFO was 1.46:1 and cash available for distribution was 1.09:1 for the third quarter. "Given the very tough economic conditions in our core markets, we are satisfied with our results," commented Thomas Crocker, Chief Executive Officer of Koger Equity. "Although we believe that the weak economy will continue to affect our results in the near term, we believe we have properly positioned the Company to overcome some of this instability and to flourish when the economy turns around." Year-to-Date Results: For the nine months ended September 30, 2002, FFO totaled $33.5 million on rental revenues of $94.3 million compared with FFO of $53.1 million on rental revenues of $125.5 million for the same period in 2001. FFO for the first nine months of 2002 totaled $1.56 per diluted share compared to FFO of $1.90 in the nine months of 2001. EPS for the first nine months of 2002 totaled $0.65 per diluted share compared to EPS of $0.94 in the nine months of 2001. Same-store net operating income for the nine months ended September 30, 2002, increased 3.4% on a GAAP basis and 3.5% on a cash basis compared to the nine months ended September 30, 2001. For the first nine months of 2002, total lease activity for the office portfolio was 1,167,000 square feet. The weighted average net rental rate on leasing activity year-to-date was $11.61 on new leases compared to $11.41 on expiring leases. Earnings Estimates Based on the current outlook, and Koger's results to date, the Company is raising its fiscal 2002 diluted FFO per share guidance to a range of $2.03-$2.05 per share. The increase is due to lower than anticipated allowance for doubtful accounts and continued expense reductions. In addition, the Company is providing guidance of a range of $1.75-$1.80 per share for fiscal 2003. Assumptions for fiscal 2003 include: -- The continued deterioration in rental markets during the year. -- No additional acquisitions in 2003 will contribute to FFO. -- The termination of the management agreement for the assets sold to AP-Knight, LP. in fiscal 2001. -- The termination of the management agreement for Crocker Realty Trust, Inc. -- The State of Florida's decision to eliminate its Labor Department in Tallahassee. -- Occupancy declining from 83% to 80% by the end of the 2003. -- Negative absorption in Atlanta, GA and Charlotte, NC. During the scheduled November 5, 2002 conference call, management will further discuss earnings guidance for the remainder of 2002 and for 2003. 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 to credit worthy tenants 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 7.72 million rentable square feet, located primarily in 15 suburban office projects in eight cities in the Southeastern United States. In addition, the Company manages for others 70 office buildings containing 3.39 million rentable square feet, located primarily in eight suburban office parks in five cities in the Southeastern and Southwestern United States. Copies of the Company's September 30, 2002 Third 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 Third 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 For the Three Months Nine Months Ended Ended 9/30/02 9/30/01 9/30/02 9/30/01 ------- ------- ------- --------- Revenues Rental and other rental services $31,836 $42,243 $94,286 $125,462 Management fees 839 1,074 2,590 3,530 Interest 98 154 329 596 Other -- -- 2 81 ------- ------- -------- -------- Total revenues 32,773 43,471 97,207 129,669 ------- ------- -------- -------- Expenses Property operations 11,846 15,591 34,233 46,749 Depreciation and amortization 6,663 9,617 19,915 27,154 Mortgage and loan interest 6,041 6,543 17,864 20,059 General and administrative 2,971 2,276 8,428 6,148 Direct cost of management fees 797 798 2,630 2,658 Other 43 60 125 171 ------- ------- -------- -------- Total expenses 28,361 34,885 83,195 102,939 ------- ------- -------- -------- Income Before Loss on Sale or Disposition of Assets, Income Taxes and Minority Interest 4,412 8,586 14,012 26,730 Gain (loss) on sale or disposition of assets 1 -- 2 -- ------- ------- -------- -------- Income Before Income Taxes and Minority Interest 4,413 8,586 14,014 26,730 Income taxes 19 257 112 449 ------- ------- -------- -------- Income Before Minority Interest 4,394 8,329 13,902 26,281 Minority interest -- 323 20 937 ------- ------- -------- -------- Net Income $4,394 $8,006 $13,882 $25,344 ======= ======= ======== ======== Earnings Per Share: Basic $0.21 $0.30 $0.65 $0.94 ======= ======= ======== ======== Diluted $0.21 $0.30 $0.65 $0.94 ======= ======= ======== ======== Weighted Average Shares: Basic 21,293 26,865 21,258 26,872 ======= ======= ======== ======== Diluted 21,410 26,912 21,407 26,888 ======= ======= ======== ======== KOGER EQUITY, INC. FUNDS FROM OPERATIONS (In Thousands except per Share Data) For the For the Three Months Nine Months Ended Ended 9/30/02 9/30/01 9/30/02 9/30/01 ------- ------- -------- ------- Net income $4,394 $8,006 $13,882 $25,344 Depreciation - real estate 6,174 8,849 18,493 24,991 Amortization - deferred tenant costs 378 597 1,080 1,658 Amortization - goodwill -- 43 -- 128 Minority interest -- 323 20 937 Loss (gain) on sale or disposition: Operating properties -- -- -- -- Non-operating assets (1) -- (2) -- ------- ------- -------- ------- Funds from operations $10,945 $17,818 $33,473 $53,058 ======= ======= ======= ======== Weighted average shares/units outstanding - diluted 21,410 27,912 21,407 27,888 Funds from operations, per diluted share/unit $0.51 $0.64 $1.56 $1.90 KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) September 30, December 31, 2002 2001 ------------ ------------- ASSETS Real estate investments: Operating properties: Land $ 98,253 $ 91,919 Buildings 688,363 568,285 Furniture and equipment 3,120 3,082 Accumulated depreciation (142,295) (123,999) --------- ---------- Operating properties, net 647,441 539,287 Undeveloped land held for investment 11,015 13,779 Undeveloped land held for sale, net of allowance 2,840 76 Cash and cash equivalents 10,930 113,370 Accounts receivable, net of allowance for uncollectible accounts of $1,271 and $1,114 10,744 11,574 Cost in excess of fair value of net assets acquired, net of accumulated amortization of $683 and $683 595 595 Other assets 11,939 11,904 ------- ------- TOTAL ASSETS $695,504 $690,585 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loans payable $314,994 $248,683 Accounts payable 3,236 4,962 Accrued real estate taxes payable 6,336 1,007 Other accrued liabilities 9,929 9,206 Dividends payable 7,453 44,159 Advance rents and security deposits 5,137 5,103 -------- -------- Total Liabilities 347,085 313,120 -------- -------- Minority interest -- 22,923 -------- -------- Shareholders' equity: Common stock 298 297 Capital in excess of par value 472,012 469,779 Notes receivable from stock sales (5,066) (5,066) Retained earnings 12,726 21,180 Treasury stock, at cost (131,551) (131,648) --------- --------- Total Shareholders' Equity 348,419 354,542 --------- --------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $695,504 $690,585 ======== ======== CONTACT: Koger Equity, Inc. Robert Onisko, 561/395-9666 or Integrated Corporate Relations, Inc. Investor Relations: Brad Cohen, 203/222-9013 Koger Equity, Inc. Supplemental Information September 30, 2002
Koger Equity, Inc. Supplemental Information Table of Contents September 30, 2002 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
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KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Dollars in thousands - --------------------------------------------------------------------------------------------------------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) 9/30/02 6/30/02 3/31/02 12/31/01 9/30/01 ---------- ----------- ---------- ----------- ---------- ASSETS Real Estate Investments: Operating properties: Land $98,253 $98,253 $110,084 $91,919 $140,448 Buildings 688,363 685,975 670,895 568,285 831,406 Furniture and equipment 3,120 2,987 2,933 3,082 3,228 Accumulated depreciation (142,295) (136,010) (129,617) (123,999) (180,983) ---------- ----------- ---------- ----------- ---------- Operating properties - net 647,441 651,205 654,295 539,287 794,099 Properties under construction: Land 0 0 0 0 0 Buildings 0 0 0 0 0 Undeveloped land held for investment 11,015 13,779 13,779 13,779 13,899 Undeveloped land held for sale 2,840 76 76 76 76 Cash and temporary investments 10,930 14,564 16,461 113,370 9,140 Accounts receivable, net 10,744 9,802 10,441 11,574 12,338 Cost in excess of fair value of net assets acquired, net 595 595 595 595 1,232 Other assets 11,939 11,809 11,722 11,904 13,997 ---------- ----------- ---------- ----------- ---------- TOTAL ASSETS $695,504 $701,830 $707,369 $690,585 $844,781 ========== =========== ========== =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgages and loan payable $314,994 $321,217 $327,415 $248,683 $337,879 Accounts payable 3,236 1,837 2,046 4,962 3,090 Accrued real estate taxes payable 6,336 6,358 3,273 1,007 9,491 Accrued liabilities - other 9,929 8,903 8,607 9,206 8,969 Dividends payable 7,453 7,452 7,433 44,159 9,381 Advance rents and security deposits 5,137 4,656 4,876 5,103 6,489 ---------- ----------- ---------- ----------- ---------- Total Liabilities 347,085 350,423 353,650 313,120 375,299 ---------- ----------- ---------- ----------- ---------- Minority interest 0 0 0 22,923 23,132 ---------- ----------- ---------- ----------- ---------- Shareholders' Equity: Common stock 298 298 298 297 296 Capital in excess of par value 472,012 471,974 471,205 469,779 469,010 Notes receivable from stock sales (5,066) (5,066) (5,066) (5,066) (5,066) Retained earnings 12,726 15,784 18,898 21,180 17,460 Treasury stock, at cost (131,551) (131,583) (131,616) (131,648) (35,350) ---------- ----------- ---------- ----------- ---------- Total Shareholders' Equity 348,419 351,407 353,719 354,542 446,350 ---------- ----------- ---------- ----------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $695,504 $701,830 $707,369 $690,585 $844,781 ========== =========== ========== =========== ==========
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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 ============ ============= ============ ============= ============
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KOGER EQUITY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) In thousands, except per share data - --------------------------------------------------------------------------------------------------------------------------- Three Months Ended --------------------------------------------------------------------- 9/30/02 6/30/02 3/31/02 12/31/01 9/30/01 ------------ ----------- ------------ ------------ ------------ REVENUES Rental and other rental services $ 31,836 $ 31,855 $ 30,596 $ 40,161 $ 42,243 Management fees 839 963 787 550 1,074 Interest 98 87 145 180 154 Other 0 0 3 0 0 ------------ ----------- ------------ ------------ ------------ Total revenues 32,773 32,905 31,531 40,891 43,471 ------------ ----------- ------------ ------------ ------------ EXPENSES Property operations 11,846 11,928 10,459 14,859 15,591 Depreciation and amortization 6,663 6,731 6,522 7,945 9,617 Mortgage and loan interest 6,041 6,029 5,795 6,053 6,543 General and administrative 2,971 2,947 2,510 2,264 2,276 Direct cost of management fees 797 822 1,010 720 798 Other 43 49 33 18 60 ------------ ----------- ------------ ------------ ------------ Total expenses 28,361 28,506 26,329 31,859 34,885 ------------ ----------- ------------ ------------ ------------ INCOME BEFORE GAIN (LOSS) ON SALE OR DISPOSITION OF ASSETS 4,412 4,399 5,202 9,032 8,586 Gain (loss) on sale or disposition of assets 1 0 1 39,189 0 ------------ ----------- ------------ ------------ ------------ INCOME BEFORE INCOME TAXES 4,413 4,399 5,203 48,221 8,586 Income taxes 19 62 32 235 257 ------------ ----------- ------------ ------------ ------------ INCOME BEFORE MINORITY INTEREST 4,394 4,337 5,171 47,986 8,329 Minority interest 0 0 20 107 323 ------------ ----------- ------------ ------------ ------------ NET INCOME $ 4,394 $ 4,337 $ 5,151 $ 47,879 $ 8,006 ============ =========== ============ ============ ============ EARNINGS PER SHARE - Diluted $ 0.21 $ 0.20 $ 0.24 $ 1.86 $ 0.30 ============ =========== ============ ============ ============ WEIGHTED AVERAGE SHARES - Diluted 21,410 21,469 21,283 25,785 26,912 ============ =========== ============ ============ ============ OPERATING MARGIN 62.8% 62.6% 65.8% 63.0% 63.1% ============ =========== ============ ============ ============
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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 35,099 35,133 32,314 28,381 24,073 Mortgage and loan interest 26,112 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% ============== ============= ============= ============= =============
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KOGER EQUITY, INC. AND SUBSIDIARIES FUNDS FROM OPERATIONS (Unaudited) In thousands, except per share data - ----------------------------------------------------------------------------------------------------------------------------- Three Months Ended ------------------------------------------------------------------------ 9/30/02 6/30/02 3/31/02 12/31/01 9/30/01 ------------ ------------ ------------ ------------ ----------- Funds from Operations: Net income $ 4,394 $ 4,337 $ 5,151 $ 47,879 $ 8,006 Depreciation - real estate 6,174 6,277 6,042 7,270 8,849 Amortization - deferred tenant costs 378 338 364 514 597 Amortization - goodwill 0 0 0 42 43 Minority interest 0 0 20 107 323 Loss (gain) on sale of operating properties 0 0 (1) (39,189) 0 Loss (gain) on sale of non-operating assets (1) 0 0 0 0 ------------ ------------ ------------ ------------ ----------- Funds from Operations 10,945 10,952 11,576 16,623 17,818 Cash Available for Distribution: Add (Deduct): Rental income from straight-line rents (730) (534) (460) (338) (374) Amortization of deferred financing costs 303 299 289 228 227 Building improvements (332) (1,285) (965) (1,032) (867) 2nd generation tenant improvements (1,767) (1,070) (906) (1,625) (1,748) 2nd generation leasing commissions (205) (479) (88) (614) (278) ------------ ------------ ------------ ------------ ----------- Cash Available for Distribution $ 8,214 $ 7,883 $ 9,446 $ 13,242 $ 14,778 ============ ============ ============ ============ =========== Weighted average common shares/units outstanding - diluted 21,410 21,469 21,350 26,785 27,912 ============ ============ ============ ============ =========== Per share/unit - diluted: Funds from operations $ 0.51 $ 0.51 $ 0.54 $ 0.62 $ 0.64 ============ ============ ============ ============ =========== Cash available for distribution $ 0.38 $ 0.37 $ 0.44 $ 0.49 $ 0.53 ============ ============ ============ ============ =========== Dividends paid $ 0.35 $ 0.35 $ 2.09 (a) $ 0.35 $ 0.35 ============ ============ ============ ============ =========== Dividend payout ratio: Funds from operations 68.5% 68.6% 64.8% 56.5% 54.7% ============ ============ ============ ============ =========== Cash available for distribution 91.2% 95.3% 79.5% 71.4% 66.0% ============ ============ ============ ============ ===========
(a) Amount includes a special dividend of $1.74 per share paid in January 2002. 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% =========== ============ ============ ============ ============
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KOGER EQUITY, INC. AND SUBSIDIARIES NET OPERATING INCOME 2002 Year Year Three Months Ended To Date To Date ------------------------------------------------------- 3/31/02 6/30/02 9/30/02 12/31/02 9/30/02 9/30/01 Change ----------- ------------ ------------ -------------- ----------- ----------- ----------- $(000) $(000) $(000) $(000) $(000) $(000) $(000) Same Store Sales: Revenues 27,580 27,619 27,343 82,542 81,693 849 Expenses 9,178 9,657 10,104 28,939 29,861 (922) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 18,402 17,962 17,239 53,603 51,832 1,771 ----------- ------------ ------------ -------------- ----------- ----------- ----------- 2001 and 2002 Acquisitions: Revenues 2,206 3,305 3,583 9,094 0 9,094 Expenses 1,011 1,665 1,575 4,251 0 4,251 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 1,195 1,640 2,008 4,843 0 4,843 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Building Completions (1): Revenues 782 823 795 2,400 1,408 992 Expenses 236 266 265 767 518 249 ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 546 557 530 1,633 890 743 ----------- ------------ ------------ -------------- ----------- ----------- ----------- 2001 Property Sales: Revenues 27 108 115 250 42,361 (42,111) Expenses 33 340 (97) 276 16,370 (16,094) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income (6) (232) 212 (26) 25,991 (26,017) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Total Company: Revenues 30,595 31,855 31,836 94,286 125,462 (31,176) Expenses 10,458 11,928 11,847 34,233 46,749 (12,516) ----------- ------------ ------------ -------------- ----------- ----------- ----------- Net Operating Income 20,137 19,927 19,989 60,053 78,713 (18,660) =========== ============ ============ ============== =========== =========== =========== (1) Includes buildings completed after 12/31/00.
8
KOGER EQUITY, INC. AND SUBSIDIARIES NET OPERATING INCOME 2001 Year Three Months Ended To Date ------------------------------------------------------------ 3/31/01 6/30/01 9/30/01 12/31/01 12/31/01 ------------ ------------- -------------- --------------- ------------ $(000) $(000) $(000) $(000) $(000) Same Store Sales: Revenues 27,140 27,010 27,543 27,367 109,060 Expenses 9,833 10,035 9,993 9,872 39,733 ------------ ------------- -------------- --------------- ------------ Net Operating Income 17,307 16,975 17,550 17,495 69,327 ------------ ------------- -------------- --------------- ------------ 2001 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 171 495 742 731 2,139 Expenses 88 182 248 67 585 ------------ ------------- -------------- --------------- ------------ Net Operating Income 83 313 494 664 1,554 ------------ ------------- -------------- --------------- ------------ 2001 Property Sales: Revenues 14,280 14,123 13,958 12,063 54,424 Expenses 5,471 5,549 5,350 4,920 21,290 ------------ ------------- -------------- --------------- ------------ Net Operating Income 8,809 8,574 8,608 7,143 33,134 ------------ ------------- -------------- --------------- ------------ Total Company: Revenues 41,591 41,628 42,243 40,161 165,623 Expenses 15,392 15,766 15,591 14,859 61,608 ------------ ------------- -------------- --------------- ------------ Net Operating Income 26,199 25,862 26,652 25,302 104,015 ============ ============= ============== =============== ============ (1) Includes buildings completed after 12/31/00.
9
KOGER EQUITY, INC. AND SUBSIDIARIES SUMMARY OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2002 Monthly Outstanding Balance Interest Debt --------------------------- Description Rate Maturity Service 9/30/02 12/31/01 - ------------------------------------------------- ------------ -------------- ------------ ------------ ------------- $(000) $(000) $(000) Fixed Rate: Northwestern Mutual - Tranche A 8.19% 01/02/07 789 91,889 93,292 Northwestern Mutual - Tranche B 8.33% 01/02/09 710 81,768 83,006 Northwestern Mutual - Tranche C 7.10% 01/02/07 105 14,009 14,200 Northwestern Mutual - Tranche D 7.10% 01/02/09 216 28,875 29,270 New York Life 8.00% 12/10/02 68 7,766 7,903 Allstate Life 8.20% 12/01/06 165 19,169 19,468 ------------ ------------ ------------- Total Fixed Rate Debt 8.04% 2,053 243,476 247,139 ------------ ------------ ------------- Variable Rate: GE Capital 7.38% 06/30/21 13 1,518 1,544 Secured Revolving Credit Facility - $125 Million 3.96% 12/27/2004 237 70,000 0 ------------ ------------ ------------- Total Variable Rate Debt 4.03% 250 71,518 1,544 ------------ ------------ ------------- Total Debt 7.13% 2,303 314,994 248,683 ============ ============ ============= Market Capitalization: Total Debt 314,994 248,683 Common Stock 359,656 360,696 ------------ ------------- Total Market Capitalization 674,650 609,379 ============ =============
- --------------------------------------------------------------------------------
Amount ------------ $(000) Schedule of Mortgage Maturities by Year (1): 2002 9,013 2003 5,200 2004 5,629 2005 6,110 2006 23,704 Thereafter 195,338 ------------ Total 244,994 ============ (1) Does not include Secured Revolving Credit Facility.
10
KOGER EQUITY, INC. AND SUBSIDIARIES OPERATING PROPERTY ACQUISITIONS 1999, 2000, 2001 AND 2002 Percent Square Date Purchase Leased Property Location Feet Purchased Price (1) 9/30/02 - ------------------------------ -------------------------- -------------- --------------- ----------------- ------------- 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 96% -------------- ----------------- 508,600 $ 64,100,000 97% ============== ================= ============= 2000 None 2001 None 2002 Three Ravinia Atlanta, GA 845,000 01/31/02 $125,000,000 63%
(1) Purchase price consists of the contract price only and does not include closing costs. 11
KOGER EQUITY, INC. AND SUBSIDIARIES BUILDING COMPLETIONS 1999, 2000, 2001 and 2002 Percent Square Month Leased Property Location Feet Completed Total Cost (1) 9/30/02 - ------------------------------- ---------------------------- ------------- -------------- ---------------- ------------ 1999 Glenridge Building Orlando, FL 75,800 01/1999 $ 6,251,000 97% 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 99% ============= ================ ============ 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 10,098,000 100% Pasco Building St. Petersburg, FL 89,800 05/2000 7,662,000 82% ------------- ---------------- 579,200 $53,834,000 94% ============= ================ ============ 2001 Collier Building Jacksonville, FL 113,500 02/2001 $10,575,000 100% Rosemont Building Orlando, FL 67,400 06/2001 5,859,000 88% ------------- ---------------- 180,900 $16,434,000 96% ============= ================ ============ 2002 None.
(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. 12
KOGER EQUITY, INC. AND SUBSIDIARIES BUILDINGS UNDER CONSTRUCTION SEPTEMBER 30, 2002 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. 13
KOGER EQUITY, INC. AND SUBSIDIARIES TWENTY-FIVE LARGEST TENANTS BASED ON ANNUALIZED GROSS RENTS AS OF SEPTEMBER 30, 2002 Remaining Annualized Number Leased Term Percent Gross Percent Tenant (a) of Leases Square Feet (Months) of Leased Rent (b) of Rent - ------------------------------------ ------------------------------------------- ----------------------------- ------------ U S Government 44 918,366 91 13.9% $16,648,861 13.7% State of Florida 42 712,660 30 10.8% 13,183,337 10.8% Six Continents Hotels 2 348,702 77 5.3% 9,150,955 7.5% Blue Cross Blue Shield 11 565,925 31 8.6% 9,101,058 7.5% CitiFinancial 1 159,827 59 2.4% 2,722,577 2.2% Landstar Systems Holding, Inc. 1 176,000 146 2.7% 2,633,842 2.2% Siemens 5 114,028 6 1.7% 1,939,282 1.6% Zurich Insurance Company 2 97,913 52 1.5% 1,858,389 1.5% General Electric 3 89,163 4 1.3% 1,818,373 1.5% Hanover Insurance 1 89,500 3 1.4% 1,815,992 1.5% Hoechst Celanese Corp. 1 92,376 9 1.4% 1,667,620 1.4% Ford Motor Company 4 63,337 44 1.0% 1,365,154 1.1% Homeside Lending, Inc. 1 69,020 13 1.0% 1,163,528 1.0% ACS State Healthcare, LLC 1 52,486 77 0.8% 1,156,791 1.0% Dynamic Healthcare Tech Inc. 1 53,761 29 0.8% 1,094,419 0.9% BellSouth 4 66,526 40 1.0% 980,802 0.8% Sara Lee Corp. 1 51,188 33 0.8% 922,664 0.8% Enovia Corporation 1 44,095 23 0.7% 838,571 0.7% Best Software, Inc. 1 47,110 75 0.7% 793,803 0.7% Navision Software US, Inc. 1 37,783 59 0.6% 750,545 0.6% Check Solutions Company 1 40,307 76 0.6% 735,396 0.6% Sungard Trust Systems Inc. 2 43,569 45 0.7% 714,490 0.6% Mergent- FIS Inc. 1 45,040 59 0.7% 698,120 0.6% Peerless Insurance Co. 1 36,306 38 0.5% 694,270 0.6% HireCheck Inc. 1 30,226 65 0.5% 663,624 0.5% ------------ --------------- --------------- Total 134 4,045,214 61.1% $75,112,463 61.7% ============ =============== ============ =============== ============ Weighted Average 55 ============
(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 September 30, 2002 multiplied by 12. 14
KOGER EQUITY, INC. AND SUBSIDIARIES REGIONAL SUMMARY OF MSAs AS OF SEPTEMBER 30, 2002 # of Age % Square % MSA State Bldgs (yrs) Square Feet Feet NOI (a) - ---------------------------- ------------ -------- -------- ----------------- -------------- ------------ Atlanta GA 26 15 2,360,017 30.6% 31.6% Orlando FL 28 18 1,303,828 16.9% 19.0% Jacksonville FL 11 8 1,166,621 15.1% 16.7% Charlotte NC 15 15 708,531 9.2% 8.1% Tallahassee FL 19 20 833,916 10.8% 7.8% St. Petersburg FL 15 19 668,360 8.7% 7.5% Memphis TN 6 9 531,346 6.9% 6.4% Richmond VA 1 14 145,127 1.9% 2.9% -------- ----------------- -------------- ------------ Total 121 15 7,717,746 100.0% 100.0% ======== ======== ================= ============== ============
(a) Based on net operating income for the third quarter of 2002. 15
KOGER EQUITY, INC. AND SUBSIDIARIES OCCUPANCY SUMMARY AS OF SEPTEMBER 30, 2002 Square Footage Percentage ------------------------------------------------------- ----------------------------------------------- Occupied Leased, Not OccupVacant Total Occupied Leased, Not OVacantd Total ------------- ------------- ------------- ------------- ------------ ----------- --------- ------------ Atlanta 1,915,539 5,114 439,364 2,360,017 81.2% 0.2% 18.6% 100.0% Orlando 1,215,547 3,747 84,534 1,303,828 93.2% 0.3% 6.5% 100.0% Jacksonville 1,156,973 2,302 7,346 1,166,621 99.2% 0.2% 0.6% 100.0% Tallahassee 600,038 250 233,628 833,916 72.0% 0.0% 28.0% 100.0% Charlotte 574,139 804 133,588 708,531 81.0% 0.1% 18.9% 100.0% St. Petersburg 576,970 1,875 89,515 668,360 86.3% 0.3% 13.4% 100.0% Memphis 434,426 0 96,920 531,346 81.8% 0.0% 18.2% 100.0% Richmond 141,752 0 3,375 145,127 97.7% 0.0% 2.3% 100.0% ------------- ------------- ------------- ------------- Total 6,615,384 14,092 1,088,270 7,717,746 85.7% 0.2% 14.1% 100.0% ============= ============= ============= ============= ============ =========== ========= ============
16
KOGER EQUITY, INC. AND SUBSIDIARIES LEASE DISTRIBUTION AS OF SEPTEMBER 30, 2002 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 412 50.2% 503,506 7.7% $8,983,110 $17.84 7.4% 23 2,501 - 5,000 181 22.1% 651,883 9.9% 12,030,044 18.45 9.9% 27 5,001 - 7,500 62 7.6% 380,619 5.8% 6,937,171 18.23 5.7% 26 7,501 - 10,000 35 4.3% 307,583 4.7% 5,650,525 18.37 4.6% 27 10,001 - 20,000 54 6.6% 747,212 11.4% 14,209,940 19.02 11.7% 34 20,001 - 40,000 40 4.9% 1,166,719 17.8% 20,369,559 17.46 16.7% 55 40,001 - 60,000 19 2.3% 930,345 14.2% 17,546,984 18.86 14.4% 53 60,001 - 100,000 13 1.6% 1,044,622 15.9% 19,390,402 18.56 15.9% 46 100,001 or Greater 4 0.5% 840,224 12.8% 16,574,601 19.73 13.6% 80 ---------- ---------- ------------ ---------- -------------- ---------- Total / Weighted Average 820 100.0% 6,572,713 100.0% $121,692,336 $18.51 100.0% 46 ========== ========== ============ ========== ============== =========== ========== ==========
Square Feet % of Total -------------- ----------- Square footage occupied by tenants 6,572,713 85.2% Square footage attributable to vending/antenna 1,631 0.0% Square footage occupied by owner/building use 41,040 0.5% -------------- ----------- Total Occupied Square Footage 6,615,384 85.7% -------------- ----------- Leased square footage 14,092 0.2% Vacant square footage 1,088,270 14.1% -------------- ----------- Total Net Rentable Square Footage 7,717,746 100.0% ============== ===========
(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 September 30, 2002 multiplied by 12. 17
KOGER EQUITY, INC. AND SUBSIDIARIES LEASE EXPIRATIONS AS OF SEPTEMBER 30, 2002 City Item 2002 2003 2004 2005 2006 2007 - -------------- ------------------ --------- --------- --------- --------- --------- --------- Atlanta Square Feet (1) 145,515 104,540 103,240 193,277 66,630 171,320 % Square Feet (2) 6.18% 4.44% 4.39% 8.21% 2.83% 7.28% Annualized Rent (3) 2,611,596 2,096,861 2,166,347 3,712,559 1,173,774 3,508,234 Number of Leases (4) 14 46 38 33 21 16 Rent PSF $17.95 $20.06 $20.98 $19.21 $17.62 $20.48 Orlando Square Feet (1) 199,248 306,979 231,578 189,333 91,542 76,414 % Square Feet (2) 15.32% 23.60% 17.81% 14.56% 7.04% 5.88% Annualized Rent (3) 3,594,183 5,416,028 4,424,837 3,509,520 1,772,240 1,171,625 Number of Leases (4) 20 65 57 42 16 9 Rent PSF $18.04 $17.64 $19.11 $18.54 $19.36 $15.33 Jacksonville Square Feet (1) 4,482 222,909 92,737 165,950 179,867 275,860 % Square Feet (2) 0.38% 19.11% 7.95% 14.23% 15.42% 23.65% Annualized Rent (3) 86,742 3,863,016 1,748,885 2,218,632 2,870,906 4,854,337 Number of Leases (4) 2 11 7 4 5 6 Rent PSF $19.35 $17.33 $18.86 $13.37 $15.96 $17.60 Tallahassee Square Feet (1) 127,472 94,215 66,031 6,623 138,126 85,638 % Square Feet (2) 15.30% 11.31% 7.92% 0.79% 16.57% 10.28% Annualized Rent (3) 2,310,509 1,851,144 1,156,388 114,367 2,960,040 1,498,665 Number of Leases (4) 19 30 9 5 4 1 Rent PSF $18.13 $19.65 $17.51 $17.27 $21.43 $17.50 Charlotte Square Feet (1) 36,824 209,115 119,771 39,684 60,085 64,803 % Square Feet (2) 5.20% 29.51% 16.90% 5.60% 8.48% 9.15% Annualized Rent (3) 672,159 3,789,078 2,177,668 683,840 978,387 1,088,457 Number of Leases (4) 6 26 21 12 7 3 Rent PSF $18.25 $18.12 $18.18 $17.23 $16.28 $16.80 St. Petersburg Square Feet (1) 33,506 106,863 120,769 96,637 56,967 51,749 % Square Feet (2) 5.00% 15.95% 18.03% 14.43% 8.50% 7.73% Annualized Rent (3) 566,084 1,634,896 1,815,380 1,575,936 938,452 942,261 Number of Leases (4) 17 42 21 19 9 8 Rent PSF $16.90 $15.30 $15.03 $16.31 $16.47 $18.21 Memphis Square Feet (1) 34,642 63,098 40,322 141,685 71,280 33,712 % Square Feet (2) 6.57% 11.97% 7.65% 26.88% 13.52% 6.39% Annualized Rent (3) 676,511 1,260,234 809,732 2,654,554 1,294,677 590,117 Number of Leases (4) 6 17 12 26 9 6 Rent PSF $19.53 $19.97 $20.08 $18.74 $18.16 $17.50 Richmond Square Feet (1) 2,439 28,631 13,750 45,704 12,952 26,372 % Square Feet (2) 1.68% 19.74% 9.48% 31.52% 8.93% 18.19% Annualized Rent (3) 48,945 575,485 272,916 895,447 247,631 494,601 Number of Leases (4) 1 7 4 5 3 4 Rent PSF $20.07 $20.10 $19.85 $19.59 $19.12 $18.75 Total Square Feet (1) 584,128 1,136,350 788,198 878,893 677,449 785,868 % Square Feet (2) 7.58% 14.75% 10.23% 11.41% 8.79% 10.20% Annualized Rent (3) 10,566,729 20,486,742 14,572,153 15,364,855 12,236,107 14,148,297 Number of Leases (4) 85 244 169 146 74 53 Rent PSF $18.09 $18.03 $18.49 $17.48 $18.06 $18.00
City Item 2008 2009 2010 2011 2011 + Total - -------------- ------------------ --------- --------- --------- --------- --------- ---------- Atlanta Square Feet (1) 163,724 590,697 98,174 26,201 239,422 1,902,740 % Square Feet (2) 6.96% 25.09% 4.17% 1.11% 10.17% 80.83% Annualized Rent (3) 3,187,810 14,191,823 1,748,395 643,536 4,284,826 39,325,761 Number of Leases (4) 6 11 1 1 7 194 Rent PSF $19.47 $24.03 $17.81 $24.56 $17.90 $20.67 Orlando Square Feet (1) 90,204 25,000 635 0 0 1,210,933 % Square Feet (2) 6.94% 1.92% 0.05% 0.00% 0.00% 93.11% Annualized Rent (3) 1,595,905 459,306 11,573 0 0 21,955,217 Number of Leases (4) 6 1 1 0 0 217 Rent PSF $17.69 $18.37 $18.23 $0.00 $0.00 $18.13 Jacksonville Square Feet (1) 0 3,462 0 26,947 176,000 1,148,214 % Square Feet (2) 0.00% 0.30% 0.00% 2.31% 15.09% 98.43% Annualized Rent (3) 0 67,821 0 527,622 2,633,842 18,871,803 Number of Leases (4) 0 1 0 1 1 38 Rent PSF $0.00 $19.59 $0.00 $19.58 $14.97 $16.44 Tallahassee Square Feet (1) 48,876 0 0 26,696 0 593,677 % Square Feet (2) 5.86% 0.00% 0.00% 3.20% 0.00% 71.24% Annualized Rent (3) 916,425 0 0 340,374 0 11,147,912 Number of Leases (4) 1 0 0 1 0 70 Rent PSF $18.75 $0.00 $0.00 $12.75 $0.00 $18.78 Charlotte Square Feet (1) 0 40,307 0 0 0 570,589 % Square Feet (2) 0.00% 5.69% 0.00% 0.00% 0.00% 80.53% Annualized Rent (3) 0 735,396 0 0 0 10,124,985 Number of Leases (4) 0 1 0 0 0 76 Rent PSF $0.00 $18.24 $0.00 $0.00 $0.00 $17.74 St. Petersburg Square Feet (1) 77,336 12,709 17,686 0 0 574,222 % Square Feet (2) 11.55% 1.90% 2.64% 0.00% 0.00% 85.73% Annualized Rent (3) 1,457,427 170,936 245,270 0 0 9,346,642 Number of Leases (4) 2 1 1 0 0 120 Rent PSF $18.85 $13.45 $13.87 $0.00 $0.00 $16.28 Memphis Square Feet (1) 47,188 0 0 0 0 431,927 % Square Feet (2) 8.95% 0.00% 0.00% 0.00% 0.00% 81.93% Annualized Rent (3) 900,057 0 0 0 0 8,185,882 Number of Leases (4) 3 0 0 0 0 79 Rent PSF $19.07 $0.00 $0.00 $0.00 $0.00 $18.95 Richmond Square Feet (1) 0 10,563 0 0 0 140,411 % Square Feet (2) 0.00% 7.28% 0.00% 0.00% 0.00% 96.83% Annualized Rent (3) 0 199,107 0 0 0 2,734,132 Number of Leases (4) 0 2 0 0 0 26 Rent PSF $0.00 $18.85 $0.00 $0.00 $0.00 $19.47 Total Square Feet (1) 427,328 682,738 116,495 79,844 415,422 6,572,713 % Square Feet (2) 5.55% 8.86% 1.51% 1.04% 5.39% 85.31% Annualized Rent (3) 8,057,624 15,824,389 2,005,238 1,511,532 6,918,668 121,692,334 Number of Leases (4) 18 17 3 3 8 820 Rent PSF $18.86 $23.18 $17.21 $18.93 $16.65 $18.51
(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 September 30, 2002 multiplied by 12. (4) Analysis does not include owner occupied space, vending leases and antenna leases. 18
KOGER EQUITY, INC. AND SUBSIDIARIES NET EFFECTIVE RENTS New & Backfill Leasing --------------------------------------------------------------------- ######## 06/30/2002 03/31/2002 12/31/2001 Average ----------- ------------ ------------ ------------ ---------- Number of leases 29 29 27 41 32 Rentable square footage leased 108,050 154,666 40,165 104,477 101,840 Average per rentable square foot over the lease term: Gross Rent $ 17.88 $ 19.83 $ 17.66 $ 18.01 $18.32 Tenant improvements (1.52) (1.96) (1.59) (1.66) (1.68) Leasing commissions (0.49) (0.98) (0.40) (0.14) (0.47) Other/concessions - - - - - ----------- ------------ ------------ ------------ ---------- Effective Rent 15.87 16.89 15.67 16.21 16.17 Expense stop (5.50) (6.16) (5.26) (5.81) (5.70) ----------- ------------ ------------ ------------ ---------- Equivalent effective net rent $ 10.37 $ 10.73 $ 10.41 $ 10.40 $10.47 =========== ============ ============ ============ ========== Average term (yrs) 4.8 6.0 3.8 5.5 5.1
Renewal Leasing --------------------------------------------------------------------- ######## 06/30/2002 03/31/2002 12/31/2001 Average ----------- ------------ ------------ ------------ ---------- Number of leases 41 56 45 40 46 Rentable square footage leased 260,287 169,543 434,600 104,292 242,181 Average per rentable square foot over the lease term: Gross Rent $ 17.11 $ 18.53 $ 16.08 $ 17.43 $17.36 Tenant improvements (0.40) (0.91) (0.56) (0.77) (0.68) Leasing commissions (0.05) (0.24) (0.10) (0.33) (0.18) Other/concessions - - - - - ----------- ------------ ------------ ------------ ---------- Effective Rent 16.66 17.38 15.42 16.33 16.50 Expense stop (5.06) (5.55) (4.96) (5.90) (5.37) ----------- ------------ ------------ ------------ ---------- Equivalent effective net rent $ 11.60 $ 11.83 $ 10.46 $ 10.43 $11.13 =========== ============ ============ ============ ========== Average term (yrs) 2.7 3.8 4.2 4.7 3.8
19
KOGER EQUITY, INC. AND SUBSIDIARIES SAME SUITE ANALYSIS YEAR TO DATE SEPTEMBER 30, 2002 Total Leasing (a) --------------------------------------------------------------------------------------- RSF New Net Expiring Net Percent Leased Rent per RSF Rent per RSF Change Change ---------------- ------------------- ------------------- --------------- -------------- Atlanta 162,193 $13.85 $13.31 $0.54 4.1% Orlando 190,497 $11.79 $11.08 $0.71 6.4% Jacksonville 280,898 $10.68 $10.51 $0.17 1.6% Tallahassee 118,216 $11.41 $11.13 $0.28 2.5% Charlotte 56,819 $10.74 $11.18 ($0.44) -3.9% St. Petersburg 111,268 $10.95 $11.05 ($0.10) -0.9% Memphis 62,867 $11.11 $11.81 ($0.70) -5.9% Richmond 43,019 $12.61 $13.06 ($0.45) -3.4% ---------------- ------------------- ------------------- --------------- Total 1,025,777 $11.61 $11.41 $0.20 1.7% ================ =================== =================== =============== ==============
(a) Analysis includes leases fully executed from 1/1/02 to 9/30/02 for buildings owned at 9/30/02. Does not include First Generation space. 20 -----END PRIVACY-ENHANCED MESSAGE-----