Exhibit 99.1
Item 6. | Selected Financial Data |
The following sets forth selected financial and operating data for the Consolidated Operating Partnership on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Current Report onForm 8-K. The historical statements of operations for the years ended December 31, 2005, 2004, 2003, 2002 and 2001 include the results of operations of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements. The results of operations of properties sold are presented in discontinued operations if such properties met both of the following criteria: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposition and (b) the Consolidated Operating Partnership will not have any significant involvement in the operations of the property after the disposal transaction. The historical balance sheet data and other data as of December 31, 2005, 2004, 2003, 2002 and 2001 include the balances of the Consolidated Operating Partnership as derived from the Consolidated Operating Partnership’s audited financial statements.
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
12/31/05 | 12/31/04 | 12/31/03 | 12/31/02 | 12/31/01 | ||||||||||||||||
(In thousands, except per unit and property data) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Total Revenues | $ | 298,315 | $ | 244,953 | $ | 220,272 | $ | 207,424 | $ | 221,592 | ||||||||||
Interest Income | 1,075 | 2,025 | 1,698 | 121 | 265 | |||||||||||||||
Market-to-Market/Gain on Settlement of Interest Rate Protection Agreement | 811 | 1,583 | — | — | — | |||||||||||||||
Property Expenses | (100,553 | ) | (82,723 | ) | (76,282 | ) | (68,616 | ) | (67,907 | ) | ||||||||||
Expenses from Build to Suit Development for Sale | (15,574 | ) | — | — | — | — | ||||||||||||||
General and Administrative Expense | (54,846 | ) | (38,912 | ) | (25,607 | ) | (19,230 | ) | (17,990 | ) | ||||||||||
Interest Expense | (108,164 | ) | (98,458 | ) | (94,637 | ) | (87,069 | ) | (78,841 | ) | ||||||||||
Amortization of Deferred Financing Costs | (2,122 | ) | (1,928 | ) | (1,761 | ) | (1,858 | ) | (1,742 | ) | ||||||||||
Depreciation and Other Amortization | (97,637 | ) | (73,499 | ) | (56,713 | ) | (46,684 | ) | (43,689 | ) | ||||||||||
Gain (Loss) from Early Retirement of Debt (b) | 82 | (515 | ) | — | (888 | ) | (10,309 | ) | ||||||||||||
Valuation Provision on Real Estate (a) | — | — | — | — | (6,490 | ) | ||||||||||||||
Equity in Income of Other Real Estate Partnerships | 48,212 | 29,203 | 43,332 | 53,038 | 47,949 | |||||||||||||||
Equity in Income (Loss) of Joint Ventures | 3,698 | 35,840 | 539 | 463 | (791 | ) | ||||||||||||||
Income Tax Benefit | 13,625 | 7,833 | 5,305 | 2,311 | 221 | |||||||||||||||
(Loss) Income from Continuing Operations | (13,078 | ) | 25,402 | 16,146 | 39,012 | 42,268 | ||||||||||||||
Income from Discontinued Operations (Including Gain on Sale of Real Estate of $102,742, $81,806, $74,797 and $37,106 for the Year Ended December 31, 2005, 2004, 2003 and 2002), (c) | 117,481 | 100,912 | 111,223 | 86,975 | 54,068 | |||||||||||||||
Provision for Income Taxes Allocable to Discontinued Operations (Including $18,718, $8,147, $1,965 and $1,440 allocable to Gain on Sale of Real Estate for the years ended December 31, 2005, 2004, 2003 and 2002, respectively) | (23,346 | ) | (10,960 | ) | (3,579 | ) | (2,583 | ) | (1,272 | ) | ||||||||||
Gain on Sale of Real Estate | 28,870 | 15,112 | 9,594 | 16,408 | 42,942 | |||||||||||||||
Provision for Income Taxes Allocable to Gain on Sale of Real Estate | (10,711 | ) | (5,312 | ) | (2,328 | ) | (3,394 | ) | (43 | ) | ||||||||||
Net Income | 99,216 | 125,154 | 131,056 | 136,418 | 137,963 | |||||||||||||||
Redemption of Preferred Units | — | (7,959 | ) | — | (3,707 | ) | — | |||||||||||||
Preferred Unit Distributions | (10,688 | ) | (14,488 | ) | (20,176 | ) | (23,432 | ) | (28,924 | ) | ||||||||||
Net Income Available to Unitholders | $ | 88,528 | $ | 102,707 | $ | 110,880 | $ | 109,279 | $ | 109,039 | ||||||||||
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Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
12/31/05 | 12/31/04 | 12/31/03 | 12/31/02 | 12/31/01 | ||||||||||||||||
(In thousands, except per unit and property data) | ||||||||||||||||||||
(Loss) Income from Continuing Operations Available to Unitholders Per Weighted Average Unit Outstanding: | ||||||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.27 | $ | 0.07 | $ | 0.54 | $ | 1.22 | |||||||||
Diluted | $ | (0.11 | ) | $ | 0.27 | $ | 0.07 | $ | 0.54 | $ | 1.22 | |||||||||
Net Income Available to Unitholders Per Weighted Average Unit Outstanding: | ||||||||||||||||||||
Basic | $ | 1.81 | $ | 2.18 | $ | 2.45 | $ | 2.38 | $ | 2.37 | ||||||||||
Diluted | $ | 1.81 | $ | 2.16 | $ | 2.44 | $ | 2.37 | $ | 2.36 | ||||||||||
Distributions Per Unit | $ | 2.7850 | $ | 2.7500 | $ | 2.7400 | $ | 2.7250 | $ | 2.6525 | ||||||||||
Weighted Average Number of Units Outstanding: | ||||||||||||||||||||
Basic | 48,968 | 47,136 | 45,322 | 45,841 | 45,949 | |||||||||||||||
Diluted | 48,968 | 47,467 | 45,443 | 46,079 | 46,258 | |||||||||||||||
Net Income | $ | 99,216 | $ | 125,154 | $ | 131,056 | $ | 136,418 | $ | 137,963 | ||||||||||
Other Comprehensive (Loss) Income: | ||||||||||||||||||||
Cumulative Transition Adjustment | — | — | — | — | (14,920 | ) | ||||||||||||||
Settlement of Interest Rate Protection Agreements | — | 6,816 | — | 1,772 | (191 | ) | ||||||||||||||
Reclassification of Settlement of Interest Rate Protection Agreements to Net Income | (159 | ) | — | — | — | — | ||||||||||||||
Mark-to-Market of Interest Rate Protection Agreements and Interest Rate Swap Agreements | (1,414 | ) | 106 | 251 | (126 | ) | (231 | ) | ||||||||||||
Write-off of Unamortized Interest Rate Protection Agreements Due to Early Retirement of Debt | — | — | — | — | 2,156 | |||||||||||||||
Amortization of Interest Rate Protection Agreements | (1,085 | ) | (512 | ) | 198 | 176 | 805 | |||||||||||||
Comprehensive Income | $ | 96,558 | $ | 131,564 | $ | 131,505 | $ | 138,240 | $ | 125,582 | ||||||||||
Balance Sheet Data (End of Period): | ||||||||||||||||||||
Real Estate, Before Accumulated Depreciation | 2,896,937 | $ | 2,486,414 | $ | 2,352,026 | $ | 2,316,970 | $ | 2,311,883 | |||||||||||
Real Estate, After Accumulated Depreciation | 2,541,182 | 2,165,411 | 2,056,338 | 2,055,595 | 2,082,590 | |||||||||||||||
Real Estate Held for Sale, Net | 16,840 | 50,286 | — | 7,040 | 28,702 | |||||||||||||||
Investment in and Advances to Other Real Estate Partnerships | 378,864 | 339,967 | 374,906 | 377,776 | 378,350 | |||||||||||||||
Total Assets | 3,230,465 | 2,721,151 | 2,633,262 | 2,585,805 | 2,580,652 | |||||||||||||||
Mortgage Loans Payable, Net, Unsecured Lines of Credit and Senior Unsecured Debt, Net | 1,811,322 | 1,572,473 | 1,451,269 | 1,402,069 | 1,277,722 | |||||||||||||||
Total Liabilities | 2,016,827 | 1,711,429 | 1,570,195 | 1,525,587 | 1,400,727 | |||||||||||||||
Partners’ Capital | 1,213,638 | 1,009,722 | 1,063,067 | 1,060,218 | 1,179,925 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Cash Flow From Operating Activities | $ | 82,831 | $ | 81,015 | $ | 91,266 | $ | 138,453 | $ | 145,986 | ||||||||||
Cash Flow From Investing Activities | (404,742 | ) | 5,570 | 18,115 | 11,007 | (80,236 | ) | |||||||||||||
Cash Flow From Financing Activities | 325,653 | (83,516 | ) | (109,381 | ) | (149,460 | ) | (69,394 | ) | |||||||||||
Total In-Service Properties | 786 | 726 | 729 | 798 | 812 | |||||||||||||||
Total In-Service GLA, in Square Feet | 61,674,426 | 52,330,335 | 48,527,601 | 49,867,755 | 52,214,832 | |||||||||||||||
In-Service Occupancy Percentage | 92 | % | 91 | % | 90 | % | 89 | % | 91 | % |
(a) | Represents a valuation provision on real estate relating to certain properties located in Columbus, Ohio, Des Moines, Iowa and Grand Rapids, Michigan. | |
(b) | In 2005, the Consolidated Operating Partnership wrote off $.05 million of financing fees related to the Consolidated Operating Partnership’s previous line of credit agreement which was amended and restated |
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on August 23, 2005. In addition, the Consolidated Operating Partnership paid $.3 million of finance fees and wrote off a loan premium of $.4 million on a mortgage loan payable which was assumed by the buyers of the related properties on July 13, 2005. In 2004, the Consolidated Operating Partnership paid off and retired a mortgage loan. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.5 million which is comprised of the write-off of unamortized deferred financing costs and a prepayment penalty. In 2002, the Consolidated Operating Partnership paid off and retired certain senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $.9 million which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of pro rata unamortized deferred financing costs and legal costs. In 2001, the Consolidated Operating Partnership, paid off and retired certain mortgage loans and senior unsecured debt. The Consolidated Operating Partnership recorded a loss from the early retirement of debt of approximately $10.3 million, which is comprised of the amount paid above the carrying amount of the senior unsecured debt, the write-off of unamortized deferred financing costs, the write-off of the unamortized portion of an interest rate protection agreement which was used to fix the interest rate on the senior unsecured debt prior to issuance, the settlement of an interest rate protection agreement used to fix the retirement price of the senior unsecured debt, prepayment fees, legal costs and other expenses. | ||
(c) | On January 1, 2002, the Consolidated Operating Partnership adopted the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long Lived Assets” (“FAS 144”). FAS 144 addresses financial accounting and reporting for the disposal of long lived assets. FAS 144 requires that the results of operations and gains or losses on the sale of property be presented in discontinued operations if both of the following criteria are met: (a) the operations and cash flows of the property have been (or will be) eliminated from the ongoing operations of the Consolidated Operating Partnership as a result of the disposal transaction and (b) the Consolidated Operating Partnership will not have any significant continuing involvement in the operations of the property after the disposal transaction. FAS 144 also requires prior period results of operations for these properties to be restated and presented in discontinued operations in prior consolidated statements of operations. |
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