CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS)
For the Periods Ended December 31, 2003 and 2002
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Three Months Ended Year to Date
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2003 2002 2003 2002
Actual Actual Actual Actual
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Revenues:
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Minimum rent $69,870,042 $67,516,490 $275,449,673 $262,720,557
Percentage rent 3,037,344 3,709,915 4,536,446 5,173,575
Recoveries from tenants 19,539,684 18,538,020 79,939,958 75,385,175
Management fees and commissions 1,412,552 1,443,794 6,418,937 4,616,916
Equity in income of investments in
real estate partnerships 5,366,450 1,577,641 11,276,409 5,764,909
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Total revenues 99,226,072 92,785,860 377,621,423 353,661,132
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Operating Expenses:
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Depreciation and amortization 19,440,388 18,469,046 74,741,180 67,845,443
Operating and maintenance 14,112,172 14,102,329 53,207,353 49,554,740
General and administrative 7,790,753 7,171,785 24,229,199 22,756,590
Real estate taxes 9,936,674 9,270,628 39,754,998 37,705,837
Other operating expense (income) 3,420,880 (2,480,142) 4,993,051 (1,801,588)
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Total operating expenses 54,700,867 46,533,646 196,925,781 176,061,022
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Other Expense (Income):
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Interest expense, net of interest income 21,126,642 22,453,117 84,017,406 84,222,269
Gain from sale of operating or
development properties (27,117,331) (10,204,234) (48,717,043) (20,904,828)
Provision for loss on operating properties 0 1,070,000 1,249,175 1,070,000
Other expense (income) 0 0 0 (2,383,524)
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Total other expense (5,990,689) 13,318,883 36,549,538 62,003,917
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Income before minority interests 50,515,894 32,933,331 144,146,104 115,596,193
Minority interest preferred unit distributions (5,081,250) (8,368,752) (29,826,131) (33,475,008)
Minority interest of exchangeable partnership units (964,449) (598,598) (2,582,444) (2,013,844)
Minority interest of limited partners (184,124) (131,979) (501,260) (492,137)
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Income from continuing operations 44,286,071 23,834,002 111,236,269 79,615,204
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Discontinued Operations:
Operating Income from discontinued operations 929,134 2,117,191 3,564,142 14,818,224
Gain from sale of operating or development
properties 9,492,329 8,857,526 15,989,084 16,091,240
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Income from discontinued operations 10,421,463 10,974,717 19,553,226 30,909,464
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Net Income 54,707,534 34,808,719 130,789,495 110,524,668
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Preferred stock dividends (1,418,375) (582,320) (4,175,130) (2,858,204)
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Net income for common stockholders $53,289,159 $34,226,399 $126,614,365 $107,666,464
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CALCULATION OF EARNINGS AND FFO PER SHARE
For the Periods Ended December 31, 2003 and 2002
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Three Months Ended Year to Date
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2003 2002 2003 2002
Actual Actual Actual Actual
Earnings Per Share
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Net Income for Basic EPS $53,289,159 $34,226,399 $126,614,365 $107,666,464
Increases to Diluted EPS as a result of Dilutive CSE's
Convertible Preferred stock dividends 0 582,320 0 582,320
Minority interests of exchangeable partnership units 1,202,056 874,232 3,044,013 2,796,643
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Net Income for Diluted EPS $54,491,215 $35,682,951 $129,658,378 $111,045,427
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Net Income from discontinued operations for Basic EPS 10,421,463 10,974,717 19,553,226 30,909,464
Minority Interests of exchangeable O.P. units 237,607 275,634 461,569 782,799
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Net Income from discontinued operations for Diluted EPS $10,659,070 $11,250,351 $20,014,795 $31,692,263
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Earnings Per Share:
Basic NI for CS before Disc. Ops. $0.72 $0.40 $1.80 $1.32
Diluted NI for CS before Disc. Ops. $0.72 $0.40 $1.79 $1.32
Basic Discontinued Operations $0.17 $0.18 $0.33 $0.53
Diluted Discontinued Operations $0.17 $0.18 $0.33 $0.52
Basic NI for common stockholders $0.89 $0.58 $2.13 $1.85
Diluted NI for common stockholders $0.89 $0.58 $2.12 $1.84
Funds From Operations Per Share
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Funds from Operations for Basic FFO per share $54,688,693 $50,238,453 $178,782,434 $170,775,009
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Increases to Diluted FFO as a result of Dilutive CSE's
Convertible Preferred stock dividends 0 582,320 0 2,858,204
Minority interests of exchangeable partnership units 1,202,056 874,232 3,044,013 2,796,643
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Funds from Operations for Diluted FFO per share $55,890,749 $51,695,005 $181,826,447 $176,429,856
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FFO Per Share:
Basic $0.92 $0.86 $3.01 $2.93
Diluted $0.91 $0.84 $2.97 $2.87
Weighted Average Shares Outstanding
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Weighted Average Shares for Basic
Net Income and FFO Per Share 59,733,074 58,514,253 59,410,511 58,192,961
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Dilutive Common Stock Equivalents for EPS:
O.P. Unit equivalents after conversion to common 1,351,616 1,504,902 1,435,862 1,523,000
Series 2 Cumulative Convertible Preferred Stock 0 1,374,530 0 343,633
Compensation based stock options (Treasury Method) 395,936 350,141 395,485 378,545
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Weighted Average Shares for Diluted EPS 61,480,626 61,743,826 61,241,858 60,438,139
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Dilutive Common Stock Equivalents for FFO:
Series 2 Cumulative Convertible Preferred Stock 0 0 0 1,115,630
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Weighted Average Shares for Diluted
Funds from Operations Per Share 61,480,626 61,743,826 61,241,858 61,553,769
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Funds From Operations Reconciliation to Net Income--Actual Results
For the Periods Ended December 31, 2003 and 2003
Three Months Ended Year to Date
2003 2002 2003 2002
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Funds From Operations:
Net income for common stockholders $ 53,289,159 $ 34,226,399 $ 126,614,365 $ 107,666,464
Add (Less):
Depreciation and amortization
expense - real property 18,623,923 18,199,019 72,117,235 67,905,998
Amortization of leasing commissions 2,019,424 2,070,471 7,051,871 6,029,223
(Gain) loss on sale of operating
properties (19,243,813) (4,257,436) (27,001,037) (10,826,676)
Convertible preferred stock dividends 0 582,320 0 2,858,204
Minority interest of exchangeable
partnership units 1,202,056 874,232 3,044,013 2,796,643
------------ ------------- -------------- --------------
Funds from Operations $ 55,890,749 $ 51,695,005 $ 181,826,447 $ 176,429,856
============ ============= ============== ==============
Weighted Average Shares
For Diluted FFO Per Share (000s) 61,480,626 61,743,826 61,241,858 61,553,769
Regency considers FFO to be an accurate benchmark to its peer group and a
meaningful performance measurement for the company because it excludes various
items in net income that do not relate to or are not indicative of the operating
performance of the ownership, management and development of real estate. FFO is
defined by the National Association of Real Estate Investment Trusts generally
as net earnings (computed in accordance with GAAP), (1) excluding real estate
depreciation and amortization, gains and losses from sales of properties (except
those gains and losses sold by Regency's taxable REIT subsidiary), after
adjustment for unconsolidated partnerships and joint ventures and (2) excluding
items classified by GAAP as extraordinary or unusual, along with significant
non-recurring events. Regency also adjusts for the payment of convertible
preferred stock dividends.