EXHIBIT 99.1
FIRST INDUSTRIAL REALTY TRUST REPORTS FOURTH
QUARTER AND FULL-YEAR 2003 RESULTS
o Improved Occupancy for the Third Consecutive Quarter to 88.4%
o Generated Record Net Economic Gains of $56.2 Million in 2003
o Leased 20.5 Million Square Feet in 2003
o Attained High Tenant Retention of 71.9% for the Year
CHICAGO, February 11, 2004 - First Industrial Realty Trust, Inc. (NYSE: FR), the
nation's largest provider of diversified industrial real estate, today announced
results for the fourth quarter and full year ended December 31, 2003.
Fully-diluted earnings per share, including income from discontinued operations
and before extraordinary items (EPS), was $0.61, compared to $0.64 for the same
quarter in 2002, representing a decrease of 4.7 percent. Earnings in the quarter
were $24.0 million, compared to $24.9 million for the same quarter in 2002. For
the year ended December 31, 2003, EPS increased 1.7 percent to $2.42 from $2.38.
"We are pleased with the three consecutive quarters of occupancy improvement we
achieved in 2003, and the record $56.2 million of net economic gains," said Mike
Brennan, president and chief executive officer. "Despite a difficult year, we
believe our solid results during the fourth quarter and full year demonstrate
the soundness of our operating platform and the ability of our local-market
experts to create value for shareholders in both strong and weak operating
environments. Economic indicators suggest the worst is behind the industrial
property sector and we believe we are poised to benefit from a strengthening
economic environment in 2004."
The highlights of the Company's results are listed below:
Portfolio Performance
o Leased 4.7 million square feet during the quarter and 20.5 million square feet
during the year.
o Increased occupancy to 88.4% at year end. o Tenant retention was 63.1% for the
quarter and 71.9% for the year.
o Actual cash-on-cash rental rates declined 6.5% for the quarter and 5.5% for
the year.
o Same property net operating income (NOI) declined 7.6% for the quarter and
2.0% for the year.
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Investment Performance
o For the quarter, net economic gains were $16.8 million, comprised of $9.6
million from merchant sales, $7.3 million from existing property sales and a
loss of $0.1 million from land sales. For the year, net economic gains were
$56.2 million, comprised of $28.7 million from existing property sales, $24.8
million from merchant sales and $2.7 million from land sales.
o For the quarter, acquired $67.7 million of property, comprising 1.9 million
square feet, at a stabilized weighted average 10.9% capitalization (cap)
rate. For the year, acquired $228.8 million of property, comprising 6.6
million square feet, at a stabilized weighted average 10.6% cap rate.
o For the quarter, placed in service $18.5 million of new developments,
comprising 301,240 square feet, with an expected aggregate first-year
stabilized yield of approximately 10.1%. For the year, placed in service
$64.9 million of new developments, comprising 1.3 million square feet, with
an expected aggregate first-year stabilized yield of approximately 9.7%.
o Development under construction at the end of the quarter stood at $156.1
million.
o For the quarter, sold $106.8 million of property at a weighted average 9.0%
cap rate and a weighted average 14.6% unleveraged internal rate of return
(IRR). For the year, sold $394.4 million of property at a weighted average
8.6% cap rate and a weighted average 15.5% unleveraged IRR.
o Fourth quarter property dispositions included $24.6 million of property sold
to the Company's fund with the Kuwait Finance House (KFH). The fund's
capitalization is now approximately $287.0 million.
o The pipeline of properties that the Company expects to sell over the next
18 months is $650 million.
Solid Financial Position
o Fixed-charge coverage improved to 2.5 times and interest coverage improved
to 3.0 times.
o Unencumbered assets represent 97.2% of total assets at year end.
o The weighted average maturity of permanent debt is 10.6 years, one of the
longest in the REIT industry.
o For the year, the Company's FFO payout ratio was 78.7% and its FAD payout
ratio was 97.2%.
Supplemental Reporting Measure
For the three months ended December 31, 2003, funds from operations (FFO) per
share/unit was $0.92 on a fully-diluted basis and totaled $42.3 million. For the
year ended December 31, 2003, FFO per share/unit was $3.47 and totaled $157.7
million. As previously announced, the Company simplified and revised its
calculation of FFO effective January 1, 2003. Accordingly, for the three and
twelve months ended December 31, 2003, the Company computed FFO to be equal to
net income available to common stockholders, plus depreciation/amortization/
impairment of real estate, minus accumulated depreciation/amortization/
impairment on real estate sold. For prior periods, including the three and
twelve months ended
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December 31, 2002, the Company computed FFO to be equal to net income available
to common stockholders, excluding extraordinary gains/losses from debt
restructuring and sales of depreciated property (other than net economic
gains/losses from sales of properties related to the Company's Integrated
Industrial Solutions activities), plus depreciation and amortization (other
than amortization of deferred financing costs, interest rate protection
agreements and corporate furniture, fixtures & equipment), and after adjustments
for unconsolidated partnerships and joint ventures. For the three months ended
December 31, 2002, FFO per share/unit was $0.90 on a fully-diluted basis and
totaled $41.1 million. For the twelve months ended December 31, 2002, FFO per
share/unit was $3.54 and totaled $163.0 million.
Results for the twelve months ended December 31, 2002 have been adjusted to
comply with the Securities and Exchange Commission's (the "SEC") July 31, 2003
clarification on Emerging Issues Task Force ("EITF") Abstract, Topic No. D 42,
"The Effect on the Calculation of Earnings per Share for the Redemption or
Induced Conversion of Preferred Stock" ("EITF 42"). This clarification of EITF
42, states that for the purpose of calculating the excess of (1) fair value of
the consideration to the holders of the preferred stock over (2) the carrying
amount of the preferred stock in the balance sheet, the carrying amount of the
preferred stock should be reduced by the issuance costs of the preferred stock.
This clarification is effective in the first fiscal period ending after
September 15, 2003 and requires prior periods to be reclassified. Accordingly,
the application of this clarification results in a reduction in EPS and funds
from operations (FFO) per share/unit for the twelve months ended December 31,
2002 for the initial issuance costs of the Company's 8.75%, $.01 par value,
Series B Cumulative Preferred Stock, which the Company redeemed on May 14, 2002.
The application of this clarification does not impact 2003 EPS or FFO per
share/unit.
2003 Highlights
o Increased occupancy for three consecutive quarters to 88.4%.
o Achieved tenant retention of 71.9%, our highest level since 2000.
o Generated $56.2 million in net economic gains, a 5-year record.
o Continued successful spread investing activities, selling properties at a
weighted average 8.6% cap rate and acquiring/developing properties at a
projected 10.4% stabilized weighted average cap rate.
o Formed an additional fund, with a capacity of $425 million, with the Kuwait
Finance House.
o Entered the San Diego, CA market with the acquisition of a nine-facility,
725,000 square-foot industrial park.
Outlook for 2004
Brennan continued, "While we still have a few quarters to go before we expect
the economics of leasing to turn positive, the up-tick in business activity and
the strengthening economic environment are encouraging.
"We are maintaining an estimated full-year 2004 EPS range of between $2.10 and
$2.30. This estimate assumes slightly negative same property NOI growth in 2004.
Sales volume in 2004 is assumed to be approximately $400 million to $500 million
with a 8.5% to 9.5% average cap rate,
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with book gains from property sales/fees of between $90 million and $100
million. Investment volume assumptions for 2004, which include both new
developments and acquisitions, are approximately $400 million to $500 million
with a 9.5% to 10.5% average cap rate. We assume no significant changes in
relative G&A or capital expenditures, nor do we assume any significant changes
in our balance sheet structure. We estimate full-year 2004 FFO per share/unit in
the range of $3.35 and $3.55, with first quarter 2004 FFO per share/unit in the
range of $0.75 to $0.85. Our assumption for net economic gains for 2004 is
between $60 million and $70 million, weighted toward the second half of the
year."
Low End of High End of
Guidance for Guidance for
1Q 2004 1Q 2004
(Per share/unit) (Per share/unit)
---------------- ----------------
Net Income Available to Common Stockholders $0.44 $0.54
Add: Real Estate Depreciation/Amortization 0.48 0.48
Less: Accumulated Depreciation/Amortization on Real Estate Sold (0.17) (0.17)
----- -----
FFO $0.75 $0.85
===== =====
Low End of High End of
Guidance for 2004 Guidance for 2004
(Per share/unit) (Per share/unit)
----------------- -----------------
Net Income Available to Common Stockholders $2.10 $2.30
Add: Real Estate Depreciation/Amortization 1.90 1.90
Less: Accumulated Depreciation/Amortization on Real Estate Sold (0.65) (0.65)
----- -----
FFO $3.35 $3.55
===== =====
Brennan continued, "A number of factors could impact our ability to deliver
results in line with our assumptions, such as interest rates, the overall
economy, the supply and demand of industrial real estate, the timing and yields
for divestment and investment, and numerous other variables. There can be no
assurance that First Industrial can achieve such results for 2004. However, I
believe that First Industrial has the proper strategic and tactical design to
deliver such results. We believe our I-N-D-L infrastructure - with its offensive
and defensive characteristics - will continue to support our efforts and prove
its value."
COMPANY INFORMATION
First Industrial Realty Trust, Inc., the nation's largest provider of
diversified industrial real estate, serves every aspect of Corporate America's
industrial real estate needs, including customized supply chain solutions,
through its unique I-N-D-L operating platform, which utilizes a pure Industrial
focus and National scope to provide Diverse facility types, while offering
Local, full-service management and expertise. The Company owns, operates and has
under development 76 million square feet of industrial real estate in markets
throughout the United States. Building, buying, selling, leasing and managing
industrial property in major markets nationwide, First Industrial develops
long-term relationships with corporate real estate directors, tenants and
brokers to better serve customers with creative, flexible industrial real estate
solutions.
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FORWARD-LOOKING INFORMATION
This press release contains forward-looking information about the Company. A
number of factors could cause the Company's actual results to differ materially
from those anticipated, including changes in: economic conditions generally and
the real estate market specifically, legislative/regulatory changes (including
changes to laws governing the taxation of real estate investment trusts),
availability of financing, interest rate levels, competition, supply and demand
for industrial properties in the Company's current and proposed market areas,
potential environmental liabilities, slippage in development or lease-up
schedules, tenant credit risks, higher-than-expected costs and changes in
general accounting principles, policies and guidelines applicable to real estate
investment trusts. For further information on these and other factors that could
impact the Company and the statements contained herein, reference should be made
to the Company's filings with the Securities and Exchange Commission.
A schedule of selected financial information is attached.
First Industrial Realty Trust, Inc. will host a quarterly conference call at
10:00 a.m. Central time, 11:00 a.m. Eastern time, on Thursday, February 12,
2004. The call-in number is (800) 865-4460 and the passcode is "First
Industrial." The conference call will also be webcast live on First Industrial's
web site, www.firstindustrial.com, under the "Investor Relations" tab. The
webcast will be available on the Company's web site for approximately one week
following the call.
The company's fourth quarter supplemental information can be viewed on First
Industrial's website, www.firstindustrial.com, under the "Investor Relations"
tab. For a hard copy of the company's quarterly supplemental information report
or other investor materials, please contact:
Karen Henderson
First Industrial Realty Trust, Inc.
311 South Wacker Drive, Suite 4000
Chicago, IL 60606
Phone: (312) 344-4335 - Facsimile: (312) 922-9851
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FIRST INDUSTRIAL REALTY TRUST, INC.
SELECTED FINANCIAL DATA
(IN THOUSANDS, EXCEPT FOR PER SHARE/UNIT AND PROPERTY DATA)
(UNAUDITED)
THREE MONTHS ENDED TWELVE MONTHS ENDED
--------------------------- --------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2002 2003 2002
----------- ----------- ----------- ------------
STATEMENT OF OPERATIONS AND OTHER DATA:
Total Revenues $ 86,823 $ 83,182 $ 341,381 $ 313,957
Property Expenses (27,091) (25,574) (109,573) (98,145)
General & Administrative Expense (6,441) (5,828) (26,953) (19,610)
Amortization of Deferred Financing Costs (445) (461) (1,764) (1,925)
Amortization of Corporate F,F&E (281) (294) (1,236) (1,384)
Depreciation and Amortization of Real Estate (25,492) (18,643) (81,260) (66,698)
--------- --------- --------- ---------
Total Expenses (59,750) (50,800) (220,786) (187,762)
Interest Income 640 701 2,416 2,378
Interest Expense (23,739) (23,873) (95,456) (90,387)
Loss from Early Retirement of Debt (b) - - (1,466) (888)
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE EQUITY IN NET
INCOME OF JOINT VENTURES AND INCOME ALLOCATED TO MINORITY INTEREST 3,974 9,210 26,089 37,298
Equity in Net (Loss) Income of Joint Ventures (d) (166) (672) 539 463
Minority Interest Allocable to Continuing Operations 186 (526) (958) (1,585)
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 3,994 8,012 25,670 36,176
Income from Discontinued Operations (Including Gain on Sale of Real
Estate of $22,366 and $22,451 for the Three Months Ended
December 31, 2003 and 2002, respectively, and $79,072 and
$54,657 for the Twelve Months Ended December 31, 2003 and
2002, respectively (c)) 23,132 27,728 87,875 82,338
Minority Interest Allocable to Discontinued Operations (c) (3,479) (4,181) (13,058) (12,318)
--------- --------- --------- ---------
INCOME BEFORE GAIN (LOSS) ON SALE OF REAL ESTATE 23,647 31,559 100,487 106,196
Gain (Loss) on Sale of Real Estate, Net of Minority Interest of $957 and
$(284) for the Three Months Ended December 31, 2003 and 2002,
respectively, and $2,319 and $2,464 for the Twelve Months Ended
December 31, 2003 and 2002, respectively 5,409 (1,600) 13,286 14,012
--------- --------- --------- ---------
NET INCOME 29,056 29,959 113,773 120,208
Preferred Dividends (5,044) (5,044) (20,176) (23,432)
Redemption of Series B Preferred Stock (e) - - - (3,707)
--------- --------- --------- ---------
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 24,012 $ 24,915 $ 93,597 $ 93,069
========= ========= ========= =========
RECONCILIATION OF NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS TO FFO (a) AND FAD (a)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 24,012 $ 24,915 $ 93,597 $ 93,069
Add: Depreciation and Amortization of Real Estate
- Including Discontinued Operations 25,818 21,041 85,345 77,393
Add: Minority Interest 4,250 4,423 16,335 16,367
Add: Depreciation and Amortization of Real Estate- Joint Ventures (d) 374 1,239 1,397 2,220
Less: Accumulated Depreciation/Amortization on Real Estate Sold (11,919) - (38,488) -
Less: Accumulated Depreciation/Amortization on Real Estate Sold
and Non-IIS Gains (Losses) - (10,328) - (24,856)
Less: Accumulated Depreciation/Amortization on Real Estate
Sold- Joint Ventures (d) (198) (206) (452) (1,182)
--------- --------- --------- ---------
FUNDS FROM OPERATIONS ("FFO") (a) $ 42,337 $ 41,084 $ 157,734 $ 163,011
Add: Loss From Early Retirement of Debt (b) - - 1,466 888
Add: Restricted Stock Amortization 1,574 1,314 5,913 5,159
Add: Amortization of Deferred Financing Costs 445 461 1,764 1,925
Add: Amortization of Corporate F,F&E 281 294 1,236 1,384
Add: Redemption of Preferred Stock (e) - - - 3,707
Less: Non-Incremental Capital Expenditures (8,019) (12,128) (37,584) (34,586)
Less: Straight-Line Rent (1,601) (589) (2,815) (2,132)
--------- --------- --------- ---------
FUNDS AVAILABLE FOR DISTRIBUTION ("FAD") (a) $ 35,017 $ 30,436 $ 127,714 $ 139,356
========= ========= ========= =========
THREE MONTHS ENDED TWELVE MONTHS ENDED
--------------------------- -------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2002 2003 2002
------------ ------------ ------------ -----------
RECONCILIATION OF NET INCOME AVAILABLE TO
COMMON STOCKHOLDERS TO EBITDA (a) AND NOI (a)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 24,012 $ 24,915 $ 93,597 $ 93,069
Add: Interest Expense 23,739 23,873 95,456 90,387
Add: Depreciation and Amortization of Real Estate
- Including Discontinued Operations 25,818 21,041 85,345 77,393
Add: Preferred Dividends 5,044 5,044 20,176 23,432
Add: Redemption of Series B Preferred Stock (e) - - - 3,707
Add: Income Allocated to Minority Interest 4,250 4,423 16,335 16,367
Add: Loss From Early Retirement of Debt (b) - - 1,466 888
Add: Amortization of Deferred Financing Costs 445 461 1,764 1,925
Add: Amortization of Corporate F,F&E 281 294 1,236 1,384
Add: Depreciation and Amortization of Real Estate-
Joint Ventures (d) 374 1,239 1,397 2,220
Less: Accumulated Depreciation/Amortization on Real Estate
Sold- Joint Ventures (d) (198) (206) (452) (1,182)
Less: Accumulated Depreciation/Amortization on Real Estate Sold (11,919) - (38,488) -
Less: Accumulated Depreciation/Amortization on Real Estate Sold
and Non-IIS Gains (Losses) - (10,328) - (24,856)
----------- ----------- --------- ---------
EBITDA (a) $ 71,846 $ 70,756 $ 277,832 $ 284,734
Add: General and Administrative Expense 6,441 5,828 26,953 19,610
Less: Net Economic Gains (Losses) (16,813) (10,239) (56,189) (46,277)
Less: Equity in FFO of Joint Ventures (d) (10) (361) (1,484) (1,501)
----------- ----------- --------- ---------
NET OPERATING INCOME ("NOI") (a) $ 61,464 $ 65,984 $ 247,112 $ 256,566
=========== =========== ========= =========
WEIGHTED AVG. NUMBER OF SHARES/UNITS OUTSTANDING- BASIC (f) 45,513 45,524 45,322 45,841
WEIGHTED AVG. NUMBER OF SHARES/UNITS OUTSTANDING- DILUTED (f) 45,842 45,600 45,443 46,079
WEIGHTED AVG. NUMBER OF SHARES OUTSTANDING- BASIC (f) 38,767 38,671 38,542 38,927
WEIGHTED AVG. NUMBER OF SHARES OUTSTANDING- DILUTED (f) 39,096 38,748 38,663 39,165
PER SHARE/UNIT DATA:
FFO :
- Basic $ 0.93 $ 0.90 $ 3.48 $ 3.56
- Diluted $ 0.92 $ 0.90 $ 3.47 $ 3.54
Income from Continuing Operations Less Preferred Stock
Dividends and Redemption of Series B Preferred Stock
Per Weighted Average Common Share Outstanding:
- Basic $ 0.11 $ 0.04 $ 0.49 $ 0.59
- Diluted $ 0.11 $ 0.04 $ 0.49 $ 0.59
Net Income Available to Common Stockholders per
Weighted Average Common Share Outstanding:
- Basic $ 0.62 $ 0.64 $ 2.43 $ 2.39
- Diluted $ 0.61 $ 0.64 $ 2.42 $ 2.38
Dividends/Distributions $ 0.6850 $ 0.6850 $ 2.7400 $ 2.7250
FFO PAYOUT RATIO 73.6% 75.9% 78.7% 76.6%
FAD PAYOUT RATIO 89.0% 102.5% 97.2% 89.6%
BALANCE SHEET DATA (END OF PERIOD):
Real Estate Before Accumulated Depreciation $ 2,740,800 $ 2,697,269
Real Estate Held For Sale, Net - 7,040
Total Assets 2,648,023 2,629,973
Debt 1,453,798 1,442,149
Total Liabilities 1,591,732 1,575,586
Stockholders' Equity and Minority Interest $ 1,056,291 $ 1,054,387
PROPERTY DATA (END OF PERIOD):
Total Properties 834 908
Total Gross Leasable Area (in sq ft) 57,925,466 59,979,894
Occupancy 88.4% 89.5%
(a) Investors in and analysts following the real estate industry utilize FFO,
NOI, EBITDA and FAD, variously defined, as supplemental performance
measures. While the Company believes net income available to common
stockholders, as defined by GAAP, is the most appropriate measure, it
considers FFO, NOI, EBITDA and FAD, given their wide use by and relevance
to investors and analysts, appropriate supplemental performance measures.
FFO, reflecting the assumption that real estate asset values rise or fall
with market conditions, principally adjusts for the effects of GAAP
depreciation/amortization of real estate assets. NOI provides a measure of
rental operations, and does not factor in depreciation/amortization and
non-property specific expenses such as general and administrative expenses.
EBITDA provides a further tool to evaluate the ability to incur and service
debt and to fund dividends and other cash needs. FAD provides a further
tool to evaluate ability to fund dividends. In addition, FFO, NOI, EBITDA
and FAD are commonly used in various ratios, pricing multiples/yields and
returns and valuation calculations used to measure financial position,
performance and value.
As previously announced, the Company simplified and revised its calculation
of FFO effective January 1, 2003. Accordingly, for the twelve and three
months ended December 31, 2003, the Company calculated FFO to be equal to
net income available to common stockholders plus
depreciation/amortization/impairment on real estate minus accumulated
depreciation/amortization/impairment on real estate sold. For periods prior
to 2003, including the twelve and three months ended December 31, 2002, the
Company calculated FFO to be equal to net income available to common
stockholders, excluding gains/losses from debt restructuring and sales of
depreciated property (other than Net Economic Gains (Losses) on sales of
properties related to the Company's Integrated Industrial Solutions TM
("IIS") activities), plus depreciation and amortization (other than
amortization of deferred financing costs, interest rate protection
agreements and corporate F,F&E) and after adjustments for unconsolidated
partnerships and joint ventures. Net Economic Gains (Losses) are calculated
by subtracting from gain on sale of real estate (calculated in accordance
with GAAP, including gains on sale of real estate classified as
discontinued operations) the recapture of accumulated
depreciation/amortization on real estate sold.
NOI is defined as revenues of the Company, minus property expenses such as
real estate taxes, repairs and maintenance, property management, utilities,
insurance and other expenses. NOI includes NOI from discontinued
operations.
EBITDA is defined as NOI plus the equity in FFO of the Company's joint
ventures, which are accounted for under the equity method of accounting,
plus Net Economic Gains (Losses), minus general and administrative
expenses. EBITDA includes EBITDA from discontinued operations.
FAD is defined as EBITDA minus GAAP interest expense, minus preferred stock
dividends, minus straight-line rental income, plus restricted stock
amortization, minus non-incremental capital expenditures. Non-incremental
capital expenditures are building improvements and leasing costs required
to maintain current revenues.
FFO, NOI, EBITDA and FAD do not represent cash generated from operating
activities in accordance with GAAP and are not necessarily indicative of
cash available to fund cash needs, including the repayment of principal on
debt and payment of dividends and distributions. FFO, NOI, EBITDA and FAD
should not be considered as substitutes for net income available to common
stockholders (calculated in accordance with GAAP), as a measure of results
of operations, or cash flows (calculated in accordance with GAAP) as a
measure of liquidity. FFO, NOI, EBITDA and FAD as calculated by the Company
may not be comparable to similarly titled, but differently calculated,
measures of other REITs or to the definition of FFO published by NAREIT.
(b) Represents a loss from the early retirement of debt.
(c) In August 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standard No. 144 "Accounting for the Impairment or
Disposal of Long-Lived Assets" ("FAS 144"). FAS 144 requires that the
operations and gain (loss) on sale of all properties sold subsequent to
December 31, 2001, that were not held for sale at December 31, 2001, and
properties that were classified as held for sale subsequent to December 31,
2001, be presented in discontinued operations. FAS 144 also requires that
prior periods be restated.
(d) Represents the Company's share of net income, depreciation/amortization of
real estate and accumulated depreciation/amortization on real estate sold
from the Company's joint ventures in which it owns minority equity
interests.
(e) In July 2003, the Securities and Exchange Commission (the "SEC") issued a
clarification on Emerging Issues Task Force ("EITF") Abstract, Topic No. D
42, "The Effect on the Calculation of Earnings per Share for the Redemption
or Induced Conversion of Preferred Stock" ("EITF 42"). This clarification
of EITF 42, states for the purpose of calculating the excess of (1) fair
value of the consideration to the holders of the preferred stock over (2)
the carrying amount of the preferred stock in the balance sheet, the
carrying amount of the preferred stock should be reduced by the issuance
costs of the preferred stock. This clarification is effective in the first
fiscal period ending after September 15, 2003 and requires prior periods
presented to be reclassified. Accordingly, the Company has adjusted net
income available to common stockholders and net income available to common
stockholders per share amounts for the twelve months ended December 31,
2002 for the initial issuance costs of the Company's 8.75%, $.01 par value,
Series B Cumulative Preferred Stock which the Company redeemed on May 14,
2002.
(f) In accordance with Generally Accepted Accounting Principles, the basic
weighted average shares/units and shares outstanding has been adjusted to
exclude restricted stock issued that has not vested. The diluted weighted
average shares/units and shares outstanding has been adjusted to exclude
restricted stock issued that has not vested except that these amounts
include the dilution related to restricted stock outstanding. Due to these
adjustments, per share amounts presented herein for prior periods have been
recalculated.