-----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, Qs/cUhJ1rnygOFY/7dm3SohoPe/ETJ3XiBBrYY3cnS0Brt/hhNArSITzGYHmEWHT YewPmEW93pTx8obfieW4TQ== 0000950168-97-003394.txt : 19971117 0000950168-97-003394.hdr.sgml : 19971117 ACCESSION NUMBER: 0000950168-97-003394 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HIGHWOODS FORSYTH L P CENTRAL INDEX KEY: 0000941713 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 561869557 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-03890-01 FILM NUMBER: 97721693 BUSINESS ADDRESS: STREET 1: 3100 SMOKETREE CT STE 600 STREET 2: 919-872-4924 CITY: RALEIGH STATE: NC ZIP: 27604 BUSINESS PHONE: 9198724924 MAIL ADDRESS: STREET 1: 3100 SMOKETREE COURT STREET 2: STE 600 CITY: RALEIGH STATE: NC ZIP: 27604 10-Q 1 HIGHWOODS/FORSYTH 10-Q 63410 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 Commission file number: 000-21731 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-1864557 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number)
3100 SMOKETREE COURT, SUITE 600, RALEIGH, N.C. (Address of principal executive office) 27604 (Zip Code) Registrant's telephone number, including area code: (919) 872-4924 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No HIGHWOODS/FORSYTH LIMITED PARTNERSHIP QUARTERLY REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 1997 TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION PAGE Item 1. Financial Statements 3 Consolidated balance sheets of Highwoods/Forsyth Limited Partnership as of September 30, 1997 4 and December 31, 1996 Consolidated statements of income of Highwoods/Forsyth Limited Partnership for the three and 5 nine month periods ended September 30, 1997 and 1996 Consolidated statements of cash flows of Highwoods/Forsyth Limited Partnership for the nine 6 months ended September 30, 1997 and 1996 Notes to the consolidated financial statements of Highwoods/Forsyth Limited Partnership 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Results of Operations 9 Liquidity and Capital Resources 10 Funds From Operations and Cash Available for Distribution 12 Disclosure Regarding Forward-Looking Statements 13 Property Information 14 Inflation 17 PART II. OTHER INFORMATION Item 1. Legal Proceedings 18 Item 2. Changes in Securities and Use of Proceeds 18 Item 3. Defaults Upon Senior Securities 18 Item 4. Submission of Matters to a Vote of Security Holders 18 Item 5. Other Information 18 Item 6. Exhibits and Reports on Form 8-K 18
2 PART I -- FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The information furnished in the accompanying balance sheets, statements of operations and statements of cash flows reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the aforementioned financial statements for the interim period. The aforementioned financial statements should be read in conjunction with the notes to consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations and the 1996 Annual Report on Form 10-K of Highwoods/Forsyth Limited Partnership (the "Operating Partnership"). 3 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT PER UNIT AMOUNTS)
SEPTEMBER 30, 1997 DECEMBER 31, 1996 (UNAUDITED) ASSETS Real estate assets, at cost: Land and improvements.................................................. $ 232,781 $ 216,847 Buildings and tenant improvements...................................... 1,441,194 1,142,223 Development in process................................................. 59,071 28,858 Land held for development.............................................. 53,290 17,551 Furniture, fixtures and equipment...................................... 2,995 2,096 1,789,331 1,407,575 Less -- accumulated depreciation (71,927) (42,969) Net real estate assets................................................. 1,717,404 1,364,606 Cash and cash equivalents................................................ 174,046 10,618 Restricted cash.......................................................... 9,143 8,539 Accounts receivable...................................................... 11,412 8,822 Advances to subsidiaries................................................. 4,967 2,406 Accrued straight line rents receivable................................... 10,024 6,185 Other assets: Deferred leasing costs................................................. 16,750 9,601 Deferred financing costs............................................... 21,940 21,789 Prepaid expenses and other............................................. 10,689 3,876 49,379 35,266 Less -- accumulated amortization....................................... (11,486) (6,954) 37,893 28,312 $1,964,889 $ 1,429,488 LIABILITIES AND PARTNER'S CAPITAL Mortgages and notes payable.............................................. $ 649,188 $ 555,876 Accounts payable, accrued expenses and other liabilities................. 40,368 27,632 Total liabilities...................................................... 689,556 583,508 Redeemable operating partnership units: Class A units outstanding, 6,896,468 at September 30, 1997 and 4,283,237 at December 31, 1996...................................... 239,913 144,559 Class B units outstanding, 187,528 at September 30, 1997............... 6,615 -- Partners' capital: Series A Preferred Units outstanding................................... 121,809 -- Series B Preferred Units outstanding................................... 167,066 -- Class A units: General partner units outstanding, 443,555 at September 30, 1997 and 395,596 at December 31, 1996...................................... 8,341 7,014 Limited partner units outstanding, 37,015,459 at September 30, 1997 and 34,880,833 at December 31, 1996............................... 731,589 694,407 Total partners' capital........................................... 1,275,333 701,421 $1,964,889 $ 1,429,488
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 4 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED AND IN THOUSANDS EXCEPT PER UNIT AMOUNTS)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1997 1996 1997 1996 REVENUE: Rental property......................................... $61,768 $29,186 $177,246 $79,476 Interest and other income............................... 1,534 3,695 4,705 4,602 63,302 32,881 181,951 84,078 OPERATING EXPENSES: Rental property......................................... $17,407 $ 7,898 $ 48,995 $21,093 Depreciation and amortization........................... 11,083 4,724 30,915 12,556 Interest expense: Contractual.......................................... 10,566 4,468 33,082 12,715 Amortization of deferred financing costs............. 567 428 1,689 1,255 11,133 4,896 34,771 13,970 General and administrative.............................. 2,410 1,653 6,694 3,787 Income before extraordinary item........................ 21,269 13,710 60,576 32,672 Extraordinary item -- loss on early extinguishment of debt.................................................... (1,561) (2,432) (5,534) (2,432) Net income.............................................. $19,708 $11,278 $ 55,042 $30,240 Dividends on preferred units.............................. (2,870) -- (6,972) -- Net income available for Class A units.................. 16,838 11,278 48,070 30,240 NET INCOME (LOSS) PER CLASS A UNIT: Income before extraordinary item........................ $ .43 $ .39 $ 1.27 $ 1.19 Extraordinary item -- loss on early extinguishment of debt................................................. (.04) (.07) (.13) (.09) Net income.............................................. .39 $ .32 1.14 $ 1.10 NET INCOME PER CLASS A UNIT: General partner......................................... $ .39 $ .32 $ 1.14 $ 1.10 Limited partners........................................ .39 $ .32 1.14 $ 1.10 NET INCOME PER CLASS B UNIT: Limited partner......................................... $ -- $ -- $ -- $ -- WEIGHTED AVERAGE UNITS OUTSTANDING: Class A units: General partner...................................... $ 429 $ 354 $ 421 $ 274 Limited partners..................................... 42,436 35,052 41,604 27,147 Class B units: Limited partners..................................... 187 -- 163 -- Total..................................................... $43,052 $35,406 $ 42,188 $27,421
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 5 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED AND IN THOUSANDS)
NINE MONTHS ENDED SEPTEMBER 30, 1997 1996 OPERATING ACTIVITIES: Net income................................................................... $ 55,042 $ 30,240 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization.............................................. 32,037 13,811 Loss on early extinguishment of debt....................................... 5,534 2,432 Changes in operating assets and liabilities............................................................. 1,629 114 Net cash provided by operating activities............................................................ 94,242 46,597 INVESTING ACTIVITIES: Additions to real estate assets.............................................. (149,087) (112,574) Proceeds from disposition of real estate assets.............................. -- 900 Cash from contributed net assets............................................. -- 20,711 Cash advanced to Cedar Acquisition Corp...................................... -- (322,276) Cash paid in exchange for partnership net assets............................. (5,314) -- Other........................................................................ (14,614) (2,858) Net cash used in investing activities................................... (169,015) (416,097) FINANCING ACTIVITIES: Distributions paid........................................................... (57,536) (38,153) Repayment of mortgages and notes payable..................................... (223,424) (184,858) Payment of prepayment penalties.............................................. (5,534) -- Borrowings on mortgages and notes payable.................................................................... 183,000 307,500 Net proceeds from contributed capital........................................ 348,079 298,818 Payment of preferred distributions........................................... (5,959) (1,184) Payment of deferred financing costs.......................................... (425) (1,077) Net cash provided by financing activities............................... 238,201 381,046 Net increase in cash and cash equivalents.................................... 163,428 11,546 Cash and cash equivalents at beginning of the period..................................................................... 10,618 6,838 Cash and cash equivalents at end of the period.............................................................. $ 174,046 $ 18,384 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest....................................................... $ 7,763 $ 12,816
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 6 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED AND IN THOUSANDS) SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES The following summarizes the net assets contributed by the unit holders of the Operating Partnership or acquired subject to mortgage notes payable:
NINE MONTHS ENDED SEPTEMBER 30, 1997 1996 ASSETS: Rental property and equipment, net.............................................. $ 226,051 $614,329 Restricted cash................................................................. -- 11,476 Deferred financing costs, net................................................... -- 3,871 Accounts receivable and other................................................... -- 1,653 Total assets.................................................................. $ 226,051 $631,329 LIABILITIES: Mortgages and notes payable assumed............................................. $ 133,736 $292,356 Accounts payable, accrued expenses and other liabilities........................ -- 19,142 Total liabilities............................................................. 133,736 311,498 Net assets................................................................. $ 92,315 $319,831
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 7 HIGHWOODS/FORSYTH LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1997 (UNAUDITED) 1. BASIS OF PRESENTATION Highwoods/Forsyth Limited Partnership (the "Operating Partnership") is a subsidiary of Highwoods Properties, Inc. (the "Company"). At September 30, 1997 the Company owned 84% of the limited partnership units (the "Common Units") of the Operating Partnership. The consolidated financial statements include the accounts of the Operating Partnership and the following subsidiaries: Highwoods/Florida Holdings GP, L.P. AP-GP Southeast Portfolio Partners, L.P. Highwoods/Tennessee Holdings GP, L.P. Highwoods/Tennessee Holdings, L.P. AP Southeast Portfolio Partners, L.P. Highwoods/Florida Holdings, L.P. Highwoods Services, Inc. Southeast Realty Options Corp. The Operating Partnership's investment in Highwoods Services, Inc. (the "Service Company") is accounted for using the equity method of accounting. All significant intercompany balances and transactions have been eliminated in the financial statements. The Operating Partnership's 125,000 Series A Preferred Units are senior to the Class A and B Units and rank pari passu with the Series B Preferred Units. The Series A Preferred Units have a liquidation preference of $1,000 per unit. Distributions are payable on the Series A Preferred Units at the rate of $86.25 per annum per unit. The Operating Partnership's 6,900,000 Series B Preferred Units are senior to the Class A and B Units and rank pari passu with the Series A Preferred Units. The Series B Preferred Units have a liquidation preference of $25 per unit. Distributions are payable on the Series B Preferred Units at the rate of $2.00 per annum per unit. The Class A Units are owned by the Company and by certain limited partners of the Operating Partnership. The Class A Units owned by the Company are classified as General partners' capital and limited partners' capital. The Class B Units are owned by certain limited partners (not the Company) and only differ from the Class A Units in that they are not eligible for allocation of income and distributions. The Class B Units will convert to Class A Units in 25% annual installments commencing one year from the date of issuance. Prior to such conversion, such Class B Units will not be redeemable for cash or shares of the Company's Common Stock, $.01 par value (the "Common Stock"). Generally one year after issuance, the Operating Partnership is obligated to redeem each of the Class A and B Units not owned by the Company (the "Redeemable Operating Partnership Units") at the request of the holder thereof for cash, provided that the Company at its option may elect to acquire such unit presented for redemption by exchanging cash at the fair market value or one share of Common Stock for the unit. The Company's Class A Units are not redeemable for cash. The Redeemable Operating Partnership Units are classified outside of the permanent partners' capital in the accompanying balance sheet at their fair market value at the balance sheet date. The extraordinary loss represents the write-off of loan origination fees and prepayment penalties paid on the early extinguishment of debt. In February 1997, the Financial Accounting Standards Board issued Statement No. 128, EARNINGS PER SHARE, which is required to be adopted on December 31, 1997. At that time, the Operating Partnership will be required to change the method currently used to compute earnings per Common Unit and to restate all prior periods. The impact of Statement 128 on the calculation of primary and fully diluted earnings per Common Unit for these quarters is not material. The accompanying financial information has not been audited, but in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the financial position, results of operations and cash flows of the Operating Partnership have been made. For further information, refer to the financial statements and notes thereto included in the Operating Partnership's 1996 Annual Report on Form 10-K. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with all of the financial statements appearing elsewhere in the report. The following discussion is based primarily on the consolidated financial statements of the Operating Partnership. RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 1997 Revenues from rental operations increased $32.6 million, or 112%, from $29.2 million for the three months ended September 30, 1996 to $61.8 million for the comparable period in 1997. The increase is primarily a result of the acquisition of 6.4 million square feet of office and industrial properties and the completion of 763,000 square feet of development activity during latter part of the third quarter and the fourth quarter of 1996 and the addition of 3.2 million square feet in the first quarter of 1997 from the acquisition of the Anderson Properties and Century Center portfolios. The Operating Partnership's portfolio increased from 16.7 million square feet at September 30, 1996 to 21.9 million square feet at September 30, 1997. Same property revenues, which are the revenues of the 204 in-service properties owned on July 1, 1996, increased 3% for the three months ended September 30, 1997, compared to the same three months of 1996. During the three months ended September 30, 1997, 175 leases representing 737,000 square feet of office and industrial space commenced at an average rate per square foot which was 8.2% higher than the average rate per square foot on the expired leases. Interest and other income decreased $2.2 million from $3.7 million for the three months ended September 30, 1996 to $1.5 million for the comparable period in 1997. The prior year amount was abnormally high as a result of the $299 million in cash available for investment raised from the sale of 11.8 million shares of the Company's Common Stock which was available for investment. Rental operating expenses increased $9.5 million, or 120%, from $7.9 million for the three months ended September 30, 1996 to $17.4 million for the comparable period in 1997. The increase is a result of the addition of 10.2 million square feet through a combination of acquisitions and developments during the latter part of the third quarter and the fourth quarter of 1996 and the first two quarters of 1997. Rental operating expenses as a percentage of related revenues increased from 27.1% for the three months ended September 30, 1996 to 28.2% for the comparable period in 1997. This increase is a result of an increase in the percentage of office properties in the portfolio, which have fewer triple net lease pass throughs. Depreciation and amortization for the three months ended September 30, 1997 and 1996 was $11.1 million and $4.7 million, respectively. The increase of $6.4 million, or 136%, is due to an increase in depreciable assets over the prior year. The $541 million acquisition of Crocker Realty Trust, which closed at the end of the third quarter of 1996, had very little impact on the depreciation expense in the prior year. Interest expense increased $6.2 million, or 127%, from $4.9 million for the three months ended September 30, 1996 to $11.1 million for the comparable period in 1997. The increase is attributable to the increase in the outstanding debt for the entire quarter. The closing of the Crocker acquisition at the end of the third quarter of 1996 had very little impact on the interest expense in the prior year. Interest expense for the three months ended September 30, 1997 and 1996 included $567,000 and $428,000, respectively, of amortization of non-cash deferred financing costs and the costs related to the Operating Partnership's interest rate protection agreements. General and administrative expenses decreased from 5.7% of rental revenue for the three months ended September 30, 1996 to 3.9% for the comparable period in 1997. The decrease is attributable to the realization of the economies of scale related to the acquisition of the 5.7 million-square foot Crocker portfolio, which was completed in September 1996. Net income before extraordinary item equaled $21.3 million and $13.7 million for the three-month periods ended September 30, 1997 and 1996, respectively. The Operating Partnership accrued $2.9 million in dividends in the third quarter of 1997 for the preferred units that the Operating Partnership issued in February and September 1997 (see " -- Liquidity and Capital Resources" below). 9 NINE MONTHS ENDED SEPTEMBER 30, 1997 Revenue from rental operations increased $97.7 million, or 123%, from $79.5 million for the nine months of 1996 to $177.2 million for the nine months of 1997. The increase is a result of the Operating Partnership's acquisition and development activity in 1996 and 1997. In total, 103 office and industrial properties encompassing 8.2 million square feet were added in 1996 and 77 properties encompassing 4.8 million square feet were added in the first nine months of 1997. During the nine months ended September 30, 1997, 547 leases representing 3,253,000 square feet of office and industrial space commenced at an average rate per square foot 7.4% higher than the average rate per square foot on the expired leases. Interest and other income increased $100,000 from $4.6 million in 1996 to $4.7 million in 1997. The increase is related to the receipt of additional lease termination fees and other miscellaneous property income in the first nine months of 1997. Rental operating expenses increased $27.9 million, or 132%, from $21.1 million in 1996 to $49.0 million in 1997. Rental expenses as a percentage of related rental revenues increased from 26.5% in 1996 to 27.6% in 1997. The increase is a result of an increase in the percentage of office properties in the portfolio, which have fewer triple net lease pass throughs. Depreciation and amortization for the nine months ended September 30, 1997, and 1996 was $30.9 million and $12.6 million, respectively. The increase of $18.3 million, or 145%, is attributable to an increase in depreciable assets over the prior year. The $541 million acquisition of Crocker Realty Trust, which closed at the end of the third quarter of 1996, had very little impact on the depreciation expense in 1996. Interest expense increased $20.8 million, or 149%, from $14.0 million in 1996 to $34.8 million in 1997. The increase is attributable to the large increase in the outstanding debt for the entire nine-month period. The closing of the Crocker acquisition at the end of the third quarter of 1996 had very little impact on the interest expense in the prior year. Interest expense for the nine months ended September 30, 1997, and 1996 included $1.7 million and $1.3 million, respectively, of amortization of non-cash deferred financing costs and of the costs related to the Operating Partnership's interest rate protection agreement. General and administrative expenses decreased from 4.8% of total rental revenue in 1996 to 3.8% in 1997. This decrease is attributable to the realization of the economies of scale related to the acquisition of the 5.7 million-square foot Crocker portfolio, which was completed in September 1996. Net income before extraordinary item equaled $60.6 million and $32.7 million for the nine-month periods ended September 30, 1997, and 1996, respectively. The Operating Partnership incurred an extraordinary loss in 1997 of $5.5 million related to the early extinguishment of debt. The Operating Partnership also recorded $7.0 million in preferred unit dividends for the nine months ended September 30, 1997. LIQUIDITY AND CAPITAL RESOURCES For the nine months ended September 30, 1997, cash provided by operating activities increased by $47.6 million, or 102%, to $94.2 million, as compared to $46.6 million for the same period in 1996. The increase is primarily due to the increase in net income resulting from the Operating Partnership's property acquisitions in 1996 and the first quarter of 1997. Cash used for investing activities decreased by $247.1 million, or 59%, to $169.0 million for the first nine months of 1997, as compared to $416.1 million for the same 1996 period. The decrease is attributable to the Operating Partnership's $547 million acquisition of Crocker Realty Trust in the prior year. Cash provided by financing activities decreased by $142.8, or 37%, to $238.2 million for the first nine months of 1997, as compared to $381.0 million for the same period in 1996. During the first nine months of 1997, cash provided by financing activities consisted, primarily, of $288.9 million in net proceeds from the sale of preferred stock and the sale of $100 million of Exercisable Put Option Securities (see below), which were offset by net payments of $56.6 million to reduce existing indebtedness and $105 million to pay off the assumed indebtedness associated with the acquisition of the Century Center and Anderson Properties portfolios. Additionally, payments of distributions increased by $19.3 million to $57.5 million for the first nine months of 1997, as compared with $38.2 million for the 10 same period in 1996. The increase is due to the greater number of shares outstanding and a 7% increase in the distribution rate. On February 12, 1997, the Operating Partnership issued 125,000 Series A Preferred Units for net proceeds of $121.8 million. The Series A Preferred Units have a liquidation preference of $1,000 per unit, are not redeemable prior to February 2027, are not subject to any sinking fund or mandatory redemption and are not convertible into any other securities of the Operating Partnership. Effective May 27, 1997, the Operating Partnership's syndicate of lenders lowered the interest rate to 100 basis points over LIBOR (from the previous rate of 135 basis points over LIBOR) on the Operating Partnership's $280 million revolving loan. On June 24, 1997, a trust formed by the Operating Partnership sold $100 million of Exercisable Put Option Securities ("X-POSSM"), which represent fractional undivided beneficial interests in the trust. The assets of the trust consist of, among other things, $100 million of Exercisable Put Option Notes due June 15, 2011 issued by the Operating Partnership (the "Put Option Notes"). The X-POSSM bear a coupon interest rate of 7.19% and mature on June 15, 2004, representing an effective borrowing cost of 7.09%, net of a related put option and certain interest rate protection agreement costs. Under certain circumstances, the Put Option Notes could also become subject to early maturity on June 15, 2004. On August 28, 1997, the Company entered into two transactions with affiliates of Union Bank of Switzerland. In one transaction, the Company sold 1,800,000 shares of Common Stock to UBS Limited for net proceeds of approximately $57 million. Such net proceeds were contributed by the Company to the Operating Partnership in exchange for additional Common Units. In the other transaction, the Company entered into a forward share purchase agreement (the "Forward Contract") with Union Bank of Switzerland, London Branch ("UBS/LB"). The Forward Contract generally provides that if the price of a share of Common Stock is above $32.14 (the "Forward Price") on August 28, 1998, UBS/LB will return the difference (in shares of Common Stock) to the Company. Similarly, if the price of a share of Common Stock on August 28, 1998 is less than the Forward Price, the Company will pay the difference to UBS/LB in cash or shares of Common Stock, at the Company's option. On September 25, 1997, the Operating Partnership issued 6.9 million Series B Preferred Units for net proceeds of $167 million. The Series B Preferred Units have a liquidation preference of $25 per unit, are not redeemable prior to September 2002, are not subject to any sinking fund or mandatory redemption and are not convertible into any other securities of the Operating Partnership. The Operating Partnership's total indebtedness at September 30, 1997, totaled $649.2 million and was comprised of $258.4 million of secured indebtedness with an average rate of 8.1% and $390.8 million of unsecured indebtedness with an average rate of 6.9%. All of the mortgage and notes payable outstanding at September 30, 1997 were either fixed rate obligations or variable rate obligations covered by interest rate protection agreements. To protect the Operating Partnership from increases in interest expense due to changes in the variable rate, the Operating Partnership: (i) purchased an interest rate collar limiting its exposure to an increase in interest rates (one-month LIBOR plus 100 basis points) to 7.25% with respect to $80 million of the Operating Partnership's $280 million unsecured revolving loan (the "Revolving Loan"), under which the Operating Partnership had $59 million outstanding at September 30, 1997, and (ii) entered into interest rate swaps that limit its exposure to an increase in the interest rates to 7.15% in connection with the $22 million of variable rate mortgages. The interest rate on all such variable rate debt is adjusted at monthly intervals, subject to the Operating Partnership's interest rate protection program. No payments were received from the counterparties under the interest rate protection agreements for the three months ended September 30, 1997 and 1996. The Operating Partnership is exposed to certain losses in the event of non-performance by the counterparties under the cap and swap arrangements. The counterparties are major financial institutions and are expected to perform fully under the agreements. However, if they were to default on their obligations under the arrangements, the Operating Partnership could be required to pay the full rate under the Revolving Loan and the variable rate mortgages, even if such rate were in excess of the rate in the cap and swap agreements. In addition, the Operating Partnership may incur other variable rate indebtedness in the future. 11 Increases in interest rates on its indebtedness could increase the Operating Partnership's interest expense and could adversely affect the Operating Partnership's cash flow. Historically, rental revenue has been the principal source of funds to pay operating expenses, debt service and capital expenditures, excluding non-recurring capital expenditures. In addition, construction management, maintenance, leasing and management fees have provided sources of cash flow. The Operating Partnership presently has no plans for major capital improvements to the existing properties, other than normal recurring non-revenue enhancing expenditures. The Operating Partnership expects to meet its short-term liquidity requirements generally through its working capital and net cash provided by operating activities along with the Revolving Loan. The Operating Partnership expects to meet certain of its financing requirements through long-term secured and unsecured borrowings and the issuance of debt securities or additional equity securities of the Company and Operating Partnership. In addition, the Operating Partnership anticipates utilizing the Revolving Loan primarily to fund construction and development activities. The Operating Partnership does not intend to reserve funds to retire existing mortgage indebtedness or indebtedness under the Revolving Loan upon maturity. Instead, the Operating Partnership will seek to refinance such debt at maturity or retire such debt through the issuance of equity or debt securities. The Operating Partnership anticipates that its available cash and cash equivalents and cash flows from operating activities, together with cash available from borrowings and other sources, will be adequate to meet the capital and liquidity needs of the Operating Partnership in both the short and long-term. However, if these sources of funds are insufficient or unavailable, the Operating Partnership's ability to make the expected distributions discussed below may be adversely affected. RECENT DEVELOPMENTS OCTOBER 1997 OFFERING. On October 1, 1997, the Company sold 7,500,000 shares of Common Stock in an underwritten public offering for net proceeds of approximately $249 million. The underwriters exercised a portion of their over-allotment option for 1,000,000 shares of Common Stock on October 6, 1997, raising additional net proceeds of $33.2 million. The net proceeds from both sales were contributed for the Operating Partnership in exchange for additional Common Units. ACP TRANSACTION. On October 1 and October 7, 1997, the Operating Partnership closed substantially all of its previously announced business combination with Associated Capital Properties, Inc. ("ACP") and related portfolio acquisition (the "ACP Transaction"). The ACP Transaction includes the acquisition of a portfolio of 84 office properties encompassing 6.5 million rentable square feet (the "ACP Properties") and approximately 50 acres of land for development in six markets in Florida. The ACP Properties were 89% leased as of September 30, 1997. The ACP Properties include 82 office properties (78 of which are suburban) in Florida's four major markets, Orlando, Tampa, Jacksonville and South Florida, one 245,000-square foot suburban office property in Tallahassee and one 51,831-square foot office property in Ft. Myers. The ACP Properties include seven properties that ACP had under contract to purchase. The ACP Transaction was valued at $617 million, consisting of the issuance of 2,955,110 Common Units (valued at $32.50 per Common Unit), the assumption of $481 million of mortgage debt ($391 million of which has been paid off by the Operating Partnership), the issuance of 117,265 shares of the Company's Common Stock (valued at $32.50 per share), a capital expenditure reserve of $11 million and a cash payment of $25 million. Also in connection with the ACP Transaction, the Company issued to certain affiliates of ACP warrants to purchase 1,479,290 shares of the Common Stock at $32.50 per share exercisable after October 1, 2002. FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTIONS The Operating Partnership considers Funds from Operations ("FFO") to be a useful financial performance measure of its operating performance because, together with net income and cash flows, FFO provides investors with an additional basis to evaluate its ability to incur and service debt and to fund acquisitions and other capital expenditures. FFO does not represent net income or cash flows from operations as defined by GAAP, and FFO should not be considered as an alternative to net income as an indicator of the Operating Partnership's operating performance or as an alternative to cash flows as a measure of liquidity. 12 FFO does not measure whether cash flow is sufficient to fund all of the Operating Partnership's cash needs including principal amortization, capital improvements and distributions to stockholders. FFO does not represent cash flows from operating, investing or financing activities as defined by GAAP. Further, FFO as disclosed by other REITs may not be comparable to the Operating Partnership's calculation of FFO, as described below. FFO is defined as net income (computed in accordance with generally accepted accounting principles) excluding gains (or losses) from debt restructuring and sales of property, plus depreciation of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures. In March 1995, the National Association of Real Estate Investment Trusts ("NAREIT") issued a clarification of the definition of FFO. The clarification provides that amortization of deferred financing costs and depreciation of non-real estate assets are no longer to be added back to net income in arriving at FFO. Cash available for distribution is defined as funds from operations reduced by non-revenue enhancing capital expenditures for building improvements and tenant improvements and lease commissions related to second generation space. Funds from operations and cash available for distribution for the three and nine months ended September 30, 1997 and 1996 are summarized in the following table (in thousands):
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1997 1996 1997 1996 FUNDS FROM OPERATIONS: Income before minority interest and extraordinary item.............. $21,269 $13,710 $60,576 $32,672 Add (deduct): Dividends to preferred unitholders................................ (2,870) -- (6,972) -- Depreciation and amortization..................................... 11,083 4,724 30,915 12,556 Third-party service company cash flow............................. -- 75 -- 330 FUNDS FROM OPERATIONS BEFORE MINORITY INTEREST................. 29,482 18,509 84,519 45,558 CASH AVAILABLE FOR DISTRIBUTION: Add (deduct): Rental income from straight-line rents............................ (1,347) (837) (3,822) (1,752) Amortization of deferred financing costs.......................... 567 428 1,689 1,255 Non-incremental revenue generating capital expenditures (1): Building improvements paid..................................... (933) (818) (2,941) (2,018) Second generation tenant improvements paid..................... (2,063) (864) (5,510) (2,172) Second generation lease commissions paid....................... (1,201) (477) (3,535) (1,056) CASH AVAILABLE FOR DISTRIBUTION.............................. $24,505 $15,941 $70,400 $39,815 Weighted average shares/Common Units outstanding.................... 43,052 35,406 42,188 27,421 DIVIDEND PAYOUT RATIO: Funds from operations............................................. 74.5% 91.8% 73.1% 82.7% Cash available for distribution................................... 89.6% 106.6% 89.1% 91.6%
(1) Amounts represent cash expenditures. DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are identified by words such as "expect," "anticipate," "should" and words of similar import. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 1996. 13 PROPERTY INFORMATION The following table sets forth certain information with respect to the Operating Partnership's properties as of September 30, 1997:
RENTABLE NUMBER OF PERCENT LEASED/ SQUARE FEET PROPERTIES PRE-LEASED IN-SERVICE: Office............................................................. 15,022,000 230 94% Industrial......................................................... 6,882,000 139 92% Total........................................................... 21,904,000 369 94% UNDER DEVELOPMENT: Office............................................................. 2,259,000 24 39% Industrial......................................................... 585,000 7 7% Total........................................................... 2,844,000 31 33% TOTAL: Office............................................................. 17,281,000 254 Industrial......................................................... 7,467,000 146 Total........................................................... 24,748,000 400
14 The following table sets forth certain information with respect to the Operating Partnership's properties under development as of September 30, 1997:
COST AT PRE-LEASING ESTIMATED NAME LOCATION SQUARE FOOTAGE BUDGETED COST 9/30/97 PERCENTAGE* COMPLETION OFFICE: Ridgefield III Asheville 57,000 $ 5,485 $ 876 0% 2Q98 2400 Century Center Atlanta 135,000 16,180 1,239 0 2Q98 10 Glenlake Atlanta 254,000 35,135 2,589 0 4Q98 Patewood VI Greenville 107,000 11,360 2,716 0 2Q98 Colonnade Memphis 89,000 9,400 3,213 63 2Q98 Southwind III Memphis 69,000 6,970 3,888 100 4Q97 Southwind C Memphis 74,000 7,657 1,354 34 4Q98 Harpeth V Nashville 65,000 6,900 1,712 27 1Q98 Lakeview Ridge II Nashville 61,000 6,000 1,573 35 1Q98 Southpointe Nashville 104,000 10,878 2,381 0 2Q98 Air Park Center One Piedmont Triad 95,000 9,450 -- 0 3Q98 R F Micro Devices Piedmont Triad 49,000 8,420 6,658 100 4Q97 RMIC Piedmont Triad 90,000 7,650 2,281 100 2Q98 Clintrials Research Triangle 178,000 21,490 7,214 100 2Q98 Situs II Research Triangle 59,000 5,857 860 0 2Q98 Highwoods Centre Research Triangle 76,000 8,327 189 0 3Q98 Overlook Research Triangle 97,000 10,307 522 0 4Q98 Red Oak Research Triangle 65,000 6,394 513 0 3Q98 Rexwoods V Research Triangle 60,000 7,444 3,281 30 4Q97 Markel-American Richmond 106,000 10,650 1,732 48 2Q98 Highwoods V Richmond 67,000 6,620 1,096 100 2Q98 Grove Park Richmond 61,000 5,930 3,445 10 4Q97 Intermedia (Sabal) Phase I Tampa 121,000 12,500 532 100 4Q98 Intermedia (Sabal) Phase II Tampa 120,000 13,000 532 100 1Q00 TOTAL OR WEIGHTED AVERAGE 2,259,000 $ 250,004 $50,396 39% INDUSTRIAL: Chastain II & III Atlanta 122,000 $ 4,360 $ 1,179 0% 3Q98 Newpoint Atlanta 119,000 4,660 3,038 0 4Q97 Tradeport 1 Atlanta 87,000 3,070 785 0 1Q98 Tradeport 2 Atlanta 87,000 3,070 785 0 1Q98 Airport Center II Richmond 70,000 3,197 997 0 4Q97 Air Park South Piedmont Triad 100,000 2,929 273 40 1Q98 TOTAL OR WEIGHTED AVERAGE 585,00 $ 21,286 $ 7,057 7% Total or Weighted Average 2,844,000 $ 271,290 $57,453 33% TOTALS BY ESTIMATED COMPLETION DATE Fourth Quarter 1997 428,000 $ 36,621 $21,307 33% First Quarter 1998 400,000 21,969 5,128 20 Second Quarter 1998 992,000 105,570 23,608 45 Third Quarter 1998 358,000 28,531 1,881 0 Fourth Quarter 1998 546,000 65,599 4,997 27 First Quarter 2000 120,000 13,000 532 100 Total or Weighted Average 2,844,000 $ 271,290 $57,453 33%
*Includes letters of intent 15 The following tables set forth certain information about the Operating Partnership's leasing activities for the three and nine months ended September 30, 1997.
OFFICE INDUSTRIAL THREE MONTHS NINE MONTHS THREE MONTHS NINE MONTHS ENDED ENDED ENDED ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 1997 1997 1997 1997 NET EFFECTIVE RENTS RELATED TO RE-LEASED SPACE: Number of lease transactions (signed leases) 111 362 64 185 Rentable square footage leased 374,084 1,759,244 363,408 1,493,806 Average per rentable square foot over the lease term: Base rent $ 16.20 $ 16.10 $ 7.13 $ 5.69 Tenant improvements (1.21) (1.02) (0.35) (0.24) Leasing commissions (0.35) (0.43) (0.17) (0.15) Rent concessions (0.01) (0.01) (0.02) (0.01) EFFECTIVE RENT $ 14.63 $ 14.64 $ 6.59 $ 5.29 Expense stop (3.87) (3.88) (0.25) (0.25) EQUIVALENT EFFECTIVE NET RENT $ 10.76 $ 10.76 $ 6.34 $ 5.04 Average term in years 4 4 4 4 CAPITAL EXPENDITURES RELATED TO RE-LEASED SPACE: TENANT IMPROVEMENTS: Total dollars committed under signed leases $ 1,779,700 $ 7,656,511 $ 454,630 $ 1,297,867 Rentable square feet 374,084 1,759,244 363,408 1,493,806 Per rentable square foot $ 4.76 $ 4.35 $ 1.25 $ 0.87 LEASING COMMISSIONS: Total dollars committed under signed leases $ 514,998 $ 3,207,468 $ 218,614 $ 799,637 Rentable square feet 374,084 1,759,244 363,408 1,493,806 Per rentable square foot $ 1.38 $ 1.82 $ 0.60 $ 0.54 TOTAL: Total dollars committed under signed leases $ 2,294,698 $10,863,979 $ 673,244 $ 2,097,504 Rentable square feet 374,084 1,759,244 363,408 1,493,806 Per rentable square foot $ 6.13 $ 6.18 $ 1.85 $ 1.40 RENTAL RATE TRENDS: Average final rate with expense pass throughs $ 14.59 $ 14.02 $ 6.40 $ 5.32 Average first year cash rental rate $ 15.60 $ 15.08 $ 7.12 $ 5.70 Percentage increase 6.92% 7.56% 11.25% 7.14%
16 The following tables set forth scheduled lease expirations for executed leases as of September 30, 1997 assuming no tenant exercises renewal options. OFFICE PROPERTIES:
PERCENTAGE OF TOTAL PERCENTAGE OF ANNUAL RENTS AVERAGE ANNUAL LEASED RENTS YEAR OF RENTABLE LEASED SQUARE FOOTAGE UNDER RENTAL RATE REPRESENTED LEASE NUMBER OF SQUARE FEET REPRESENTED BY EXPIRING FOR EXPIRATIONS BY EXPIRING EXPIRATION LEASES EXPIRING EXPIRING LEASES LEASES (1) (1) LEASES Remainder of 1997 186 708,310 5.1% $ 10,500,474 $ 14.82 5.0% 1998 394 2,305,849 16.5 33,293,265 14.44 15.9 1999 349 1,797,217 12.9 26,288,671 14.63 12.5 2000 390 2,386,722 17.1 35,864,233 15.03 17.1 2001 249 1,979,914 14.2 32,126,909 16.23 15.3 2002 231 1,950,155 14.0 29,435,111 15.09 14.1 2003 50 865,786 6.2 13,133,524 15.17 6.3 2004 29 427,591 3.1 7,060,436 16.51 3.4 2005 15 443,083 3.2 4,919,220 11.10 2.3 2006 13 550,512 3.9 7,523,576 13.67 3.6 2007+ 21 527,438 3.8 9,341,217 17.71 4.5 Total or average 1,927 13,942,577 100.0% $209,486,636 $ 15.02 100.0%
INDUSTRIAL PROPERTIES:
PERCENTAGE OF TOTAL PERCENTAGE OF AVERAGE ANNUAL LEASED RENTS RENTABLE LEASED SQUARE FOOTAGE ANNUAL RENTS RENTAL RATE REPRESENTED YEAR OF LEASE NUMBER OF SQUARE FEET REPRESENTED BY UNDER EXPIRING FOR EXPIRATIONS BY EXPIRING EXPIRATION LEASES EXPIRING EXPIRING LEASES LEASES (1) (1) LEASES Remainder of 1997 98 769,178 12.2% $ 4,011,513 $5.22 11.9% 1998 159 1,109,965 17.6 6,514,773 5.87 19.3 1999 139 1,370,792 21.6 7,022,542 5.12 21.0 2000 112 1,130,115 17.9 6,739,991 5.96 20.0 2001 55 579,958 9.2 3,434,202 5.92 10.2 2002 37 853,426 13.5 3,587,685 4.20 10.7 2003 5 72,526 1.1 595,661 8.21 1.8 2004 5 104,369 1.7 520,335 4.99 1.5 2005 5 38,532 0.6 319,660 8.30 0.9 2006 2 196,600 3.1 882,636 4.49 2.6 2007+ 1 95,545 1.5 44,428 0.00 0.1 Total or average 618 6,321,006 100.0% $ 33,673,426 $5.33 100.0%
(1) Includes operating expense pass throughs and excludes the effect of future contractual rent increases. INFLATION Historically inflation has not had a significant impact on the Operating Partnership's operations because of the relatively low inflation rate in the Operating Partnership's geographic areas of operation. Most of the leases require the tenants to pay their pro rata share of increased incremental operating expenses, including common area maintenance, real estate taxes and insurance, thereby reducing the Operating Partnership's exposure to increases in operating expenses resulting from inflation. In addition, many of the leases are for terms of less than seven years, which may enable the Operating Partnership to replace existing leases with new leases at a higher base rent if rents on the existing leases are below the market rate. 17 PART II -- OTHER INFORMATION Item 1. Legal Proceedings -- None Item 2. Changes in Securities and Use of Proceeds
RECENT SALES OF UNREGISTERED SECURITIES. In connection with the acquisition of real estate, the Operating Partnership frequently issues Common Units to sellers of real estate in reliance on exemptions from registration, including the exemption set forth at Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act") and/or the exemption under Rule 506 of the Securities Act. During the quarter ended September 30, 1997, the Operating Partnership issued 228,757 Common Units in offerings exempt from the registration requirements of the Securities Act. The Operating Partnership exercised reasonable care to assure that the offerees of Common Units during the quarter ended September 30, 1997 were "accredited investors" under Rule 501 of the Securities Act and that the investors were not purchasing the Common Units with a view to their distribution. USE OF PROCEEDS. Pursuant to Rule 463 of the Securities Act, the Operating Partnership must disclose certain information regarding the use of proceeds derived from the issuance of securities issued under the Operating Partnership's registration statement declared effective on June 20, 1996 (Registration No. 333-3890-01). The registration statement related to the issuance of up to $350,000,000 of unsecured non-convertible debt securities. To date, the Operating Partnership has issued under the registration statement two series of debt securities in a single offering pursuant to a prospectus supplement dated November 26, 1996. The managing underwriters of the offering were Goldman, Sachs & Co., Merrill, Lynch, Pierce, Fenner & Smith, Incorporated and NationsBank Capital Markets, Inc. In the offering, the Operating Partnership sold $100,000,000 of the 6 3/4% Notes due December 1, 2003 for an aggregate offering price of $99,735,000 and $110,000,000 of the 7% Notes due December 1, 2005 for an aggregate offering price of $109,703,000. The total amount sold and total aggregate offering price under the registration statement was $210,000,000 and $209,438,000, respectively. The Operating Partnership incurred underwriting discounts and commissions of $1,392,500 and an estimated $419,615 of other offering expenses. No such expense payments were direct or indirect payments to directors or officers of the Company, their associates, persons owning ten percent or more of any class of equity security of the Operating Partnership or affiliates of the Operating Partnership. The net proceeds of the offering to the Operating Partnership after deducting the total expenses were $207,625,885. The Operating Partnership used the proceeds of the offering to pay approximately $6,400,000 in settlement of an interest rate swap agreement and the remainder of approximately $201,225,885 to repay outstanding indebtedness. No such uses of proceeds constituted direct or indirect payments to directors or officers of the Company, their associates, persons owning ten percent or more of any class of equity security of the Operating Partnership or affiliates of the Operating Partnership. On July 11, 1997, the Operating Partnership filed a registration statement on Form S-3 (Registration No. 333-31183-01), which became effective on July 24, 1997. At that time, the Operating Partnership terminated the offering of debt securities under its initial registration statement. Item 3. Defaults Upon Senior Securities -- None Item 4. Submission of Matters to a Vote of Security Holders
(a) Exhibits
EXHIBIT NO. DESCRIPTION 2 Master Agreement of Merger and Acquisition by and among the Company, the Operating Partnership, Associated Capital Properties, Inc. and its shareholders dated August 27, 1997 (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 1997) 4 Amendment to Amended and Restated Agreement of Limited Partnership of Highwoods/Forsyth Limited Partnership (incorporated by reference to the Company's Current Report on Form 8-K dated September 25, 1997) 27 Financial Data Schedule
(b) Reports on Form 8-K -- None 18 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. HIGHWOODS/FORSYTH LIMITED PARTNERSHIP By: Highwoods Properties, Inc., its general partner By: /s/ RONALD P. GIBSON RONALD P. GIBSON PRESIDENT AND CHIEF EXECUTIVE OFFICER /s/ CARMAN J. LIUZZO CARMAN J. LIUZZO CHIEF FINANCIAL OFFICER (PRINCIPAL ACCOUNTING OFFICER) Date: November 14, 1997 19 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION 2 Master Agreement of Merger and Acquisition by and among the Company, the Operating Partnership, Associated Capital Properties, Inc. and its shareholders dated August 27, 1997 (incorporated by reference to the Company's Current Report on Form 8-K dated August 27, 1997) 4 Amendment to Amended and Restated Agreement of Limited Partnership of Highwoods/Forsyth Limited Partnership (incorporated by reference to the Company's Current Report on Form 8-K dated September 25, 1997) 27 Financial Data Schedule
20 EX-27 2 EXHIBIT 27
5 3-MOS 9-MOS DEC-31-1997 DEC-31-1997 SEP-30-1997 SEP-30-1997 183,189,000 183,189,000 0 0 16,379,000 16,379,000 0 0 0 0 210,257,000 210,257,000 1,789,331,000 1,789,331,000 71,927,000 71,927,000 1,964,889,000 1,964,889,000 40,368,000 40,368,000 649,188,000 649,188,000 0 0 288,875,000 288,875,000 0 0 986,458,000 986,458,000 1,964,889,000 1,964,889,000 61,768,000 177,246,000 63,302,000 181,951,000 17,407,000 48,995,000 28,490,000 79,910,000 2,410,000 6,694,000 0 0 11,133,000 34,771,000 0 0 0 0 21,269,000 60,576,000 0 0 1,561,000 5,534,000 0 0 16,838,000 48,070,000 .39 1.14 .39 1.14
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