[MAGUIRE PROPERTIES LETTERHEAD]
FOR IMMEDIATE RELEASE
MAGUIRE PROPERTIES REPORTS INITIAL POST-IPO PERIOD
FINANCIAL RESULTS
LOS ANGELES, August 12, 2003 - Maguire Properties, Inc. (NYSE: MPG), a real
estate investment trust, today reported results for its initial post-IPO period
ended June 30, 2003 and announced its outlook for the third and fourth quarters
of 2003 and for the full year of 2004.
RECENT CORPORATE HIGHLIGHTS INCLUDE:
- - Successfully completed initial public offering raising approximately
$722.0 million in net proceeds, including exercise of over-allotment
option
- - Used net proceeds from initial public offering and debt refinancings
principally to:
- - Buy out the preferred equity holder and pay down indebtedness secured by
the US Bank Tower property
- - Refinance and pay down indebtedness secured by the Gas Company Tower
property
- - Acquire an additional 42% interest in, as well as refinance and pay down
indebtedness secured by Wells Fargo Tower Property
- - Pay down indebtedness secured by the KPMG Tower
- - Repay financing secured by Plaza Las Fuentes
- - Acquire the Cerritos Corporate Center
- - Completed a new three-year senior secured revolving credit facility of
$100 million. The financing was arranged through Citigroup Global Markets
Inc. and Wachovia Securities, LLC
- - Executed new lease with US Bank for 155,000 square feet for newly renamed
US Bank Tower
- - Completed early lease renewal with Morrison & Foerster, early lease
renewal and expansion with Gibson Dunn & Crutcher and a new 72,000 square
foot lease with Latham & Watkins
INITIAL POST-IPO PERIOD FINANCIAL RESULTS
Including a $44.3 million loss on extinguishment of debt related to our
refinancing of $790 million of indebtedness in connection with the initial
public offering and $14.1 million of compensation expense incurred in connection
with the initial public offering, our four day operating results for the period
from June 27, 2003 (inception of the company) to June 30, 2003 resulted in a net
loss of $46.2 million, or $1.25 per diluted share. We do not believe that these
historical financial results are comparable to future expected operating results
of the company since they include various offering-related charges. The weighted
average common shares outstanding were 36,853,421 for this period.
EPS AND FFO PER SHARE PROJECTIONS
The Company's guidance for the third and fourth quarters of 2003 for earnings
per share (EPS) (diluted) and funds from operations (FFO) per share (diluted) is
set forth and reconciled below.
THIRD QUARTER FOURTH QUARTER FULL-YEAR
2003 2003 2004
(Low - High) (Low - High) (Low - High)
Projected net income per share
(diluted) $0.27 - $0.29 $0.28 - $0.33 $1.23 - $1.41
Add:
Projected company share of real
estate depreciation
and amortization $0.19 - $0.18 $0.20 - $0.18 $0.88 - $0.80
Projected funds from operations per
share (diluted) $0.46 - $0.47 $0.48 - $0.51 $2.11 - $2.21
The foregoing estimates reflect management's view of current and future market
conditions, including certain assumptions with respect to rental rates,
occupancy levels and acquisitions/dispositions. There can be no assurance that
the Company's actual results will not differ materially from the estimates set
forth above.
Mr. Richard Gilchrist, President and Co-Chief Executive Officer commented,
"During the quarter, our leasing strategy remained focused on managing our
existing, high-quality tenant base to maximize value while mitigating near term
lease rollover. We executed several key leases and early lease renewals and
increased our leased rate from 89.5% to 92.4% as of the end of the quarter. In
addition, we continued to pursue opportunistic acquisitions, and completed the
acquisition of the AT&T Wireless Headquarters project in Cerritos in conjunction
with our initial public offering. We continue to evaluate potential
opportunities to recycle capital into other assets through institutional
investments in our existing properties.
"We are very pleased to have successfully completed our initial public offering.
The debt refinancings we completed in conjunction with the offering have
strengthened the Company's financial position and flexibility. We are pleased
with our results and believe we have a strong platform and financial capability
to continue to capitalize on the growth opportunities we have identified in our
markets."
As of June 30, 2003, the Company's portfolio consisted of eight office
properties with approximately 6.1 million net rentable square feet, a 350-room
hotel with 266,000 square feet, and total on- and off-site parking of
approximately 3.1 million square feet, accommodating a capacity of over 10,500
vehicles. The Company also owns an undeveloped two-acre land parcel adjacent to
an existing office property that we believe can support future office
development.
TELECONFERENCE AND WEBCAST
Maguire Properties will conduct a conference call and audio webcast at 8:00 am
Pacific Time (11:00 am Eastern Time) on August 13, 2003 to discuss initial
period financial results and management's outlook. The conference call can be
accessed by dialing 800-443-9874 (Domestic), or 706-634-1231 (International); no
passcode is required. The conference call can also be accessed via audio webcast
through the Investor Relations section of the Company's web site, located at
www.maguireproperties.com, or can be accessed through CCBN at
www.streetevents.com. A replay of the conference call will be available
approximately two hours following the call through August 20, 2003. To access
this replay dial 800-642-1687 (Domestic) or 706-645-9291 (International). A
webcast replay will also be available through the Investor Relations section of
the Company's web site, located at www.maguireproperties.com.
ABOUT MAGUIRE PROPERTIES, INC.
Maguire Properties, Inc. is the largest owner and operator of Class A office
properties in the Los Angeles central business district and is primarily focused
on owning and operating high-quality office properties in the Southern
California market. Maguire Properties, Inc. is a full-service real estate
company with substantial in-house expertise and resources in property
management, marketing, leasing, acquisitions, development and financing. For
more information on Maguire Properties, visit the Company's website at
www.maguireproperties.com
BUSINESS RISKS
This press release contains forward-looking statements based on current
expectations, forecasts and assumptions that involve risks and uncertainties
that could cause actual outcomes and results to differ materially. These risks
and uncertainties include general risks affecting the real estate industry
(including, without limitation, the inability to enter into or renew leases,
dependence on tenants' financial condition, and competition from other
developers, owners and operators of real estate); risks associated with the
availability and terms of financing and the use of debt to fund acquisitions and
developments; failure to manage effectively the Company's growth and expansion
into new markets or to integrate acquisitions successfully; risks and
uncertainties affecting property development and construction; risks associated
with downturns in the national and local economies, increases in interest rates,
and volatility in the securities markets; potential liability for uninsured
losses and environmental contamination; risks associated with our company's
potential failure to qualify as a REIT under the Internal Revenue Code of 1986,
as amended and possible adverse changes in tax and environmental laws; and risks
associated with the Company's dependence on key personnel whose continued
service is not guaranteed. For a further list and description of such risks and
uncertainties, see the reports filed by the Company with the Securities and
Exchange Commission. The Company disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
CONTACT: Maguire Properties
Peggy Moretti
Vice President Public Relations
(213) 626-3300
or
Financial Dynamics:
Investors: Leigh Parrish, Teresa Thuruthiyil
(415) 439-4521
Media: Chris Toth, Ron Heckmann
(415) 439-4503
(TABLES FOLLOW)
MAGUIRE PROPERTIES, INC. AND
MAGUIRE PROPERTIES PREDECESSOR
CONSOLIDATED AND COMBINED BALANCE SHEETS
(IN THOUSANDS)
THE COMPANY THE PREDECESSOR
----------- ---------------
JUNE 30, 2003 DECEMBER 31, 2002
------------- -----------------
ASSETS (UNAUDITED)
Investments in real estate:
Land $ 158,138 $ 77,504
Buildings and improvements 1,097,500 486,088
Tenant improvements 110,002 63,951
Furniture, fixtures, and equipment 5,111 4,704
----------- -----------
1,370,751 632,247
Less: accumulated depreciation and amortization (103,224) (82,863)
----------- -----------
Net investments in real estate 1,267,527 549,384
Cash and cash equivalents 49,321 2,976
Restricted cash 45,967 24,307
Rents and other receivables, net 4,276 2,235
Deferred rents 11,484 9,687
Due from affiliates 757 5,194
Deferred leasing costs, net 50,028 11,265
Deferred loan costs, net 18,199 6,714
Acquired above market leases, net 14,090 --
Other assets 2,750 10,277
----------- -----------
Total assets $ 1,464,399 $ 622,039
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY AND OWNERS' DEFICIT
Mortgage loans $ 955,000 $ 553,000
Other secured loans 30,000 105,038
Losses and distributions in excess of investments in real estate entities
and loans payable to such entities 16,172 78,609
Accounts payable and other liabilities 64,941 33,078
Capital lease payable 7,066 2,350
Acquired lease obligations 39,380 4,099
Accrued interest payable 1,079 5,033
----------- -----------
Total liabilities 1,113,638 781,207
Minority deficit -- (12,889)
Minority interests 80,097 --
Stockholders' equity and owners' deficit:
Preferred stock, $.01 par value, 50,000,000 shares authorized, none
issued or outstanding -- --
Common stock, $.01 par value, 100,000,000 shares authorized, 37,169,211
shares issued and outstanding 372 --
Additional paid in capital 321,561 --
Unearned compensation (5,997) --
Accumulated deficit (46,242) --
Accumulated other comprehensive income, net 970 --
Owners' deficit -- (146,279)
----------- -----------
Total stockholders' equity and owners' deficit 270,664 (146,279)
----------- -----------
Total liabilities and stockholders' equity and owners' deficit $ 1,464,399 $ 622,039
=========== ===========
See accompanying notes to consolidated and combined financial statements
MAGUIRE PROPERTIES, INC. AND
MAGUIRE PROPERTIES PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THE COMPANY THE PREDECESSOR THE PREDECESSOR
----------- --------------- ---------------
PERIOD JUNE 27, 2003 PERIOD APRIL 1, 2003 THREE MONTHS ENDED
THROUGH JUNE 30, 2003 THROUGH JUNE 26, 2003 JUNE 30, 2002
--------------------- --------------------- -------------
Revenues:
Rental $ 1,306 $ 14,385 $ 9,816
Tenant reimbursements 576 5,452 3,854
Hotel operations 175 4,250 5,036
Parking 227 2,597 1,589
Management, leasing, and development services
to affiliates 21 861 1,669
Interest and other 2,336 452 73
------------ ------------ ------------
Total revenues 4,641 27,997 22,037
------------ ------------ ------------
Expenses:
Rental property operating and maintenance 610 5,668 3,395
Hotel operating and maintenance 143 3,152 3,529
Real estate taxes 144 1,558 907
General and administrative 14,183 4,596 3,300
Depreciation and amortization 404 5,876 3,662
Interest 840 12,756 8,551
Loss on extinguishment of debt 44,329 6,667 --
Other 3,920 7,918 92
------------ ------------ ------------
Total expenses 64,573 48,191 23,436
------------ ------------ ------------
Loss before equity in net income (loss) of
real estate entities and minority interests (59,932) (20,194) (1,399)
Equity in net income (loss) of real estate
entities 6 754 (242)
------------ ------------ ------------
Loss before minority interests (59,926) (19,440) (1,641)
Minority interests (13,684) 131 (182)
------------ ------------ ------------
Net loss $ (46,242) $ (19,571) $ (1,459)
============ ============ ============
Basic and diluted loss per share $ (1.25)
============
Weighted-average common shares outstanding -
basic and diluted 36,853,421
============
MAGUIRE PROPERTIES, INC. AND
MAGUIRE PROPERTIES PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THE COMPANY THE PREDECESSOR THE PREDECESSOR
----------- --------------- ---------------
PERIOD JUNE 27, 2003 PERIOD JANUARY 1, 2003 SIX MONTHS ENDED
THROUGH JUNE 30, 2003 THROUGH JUNE 26, 2003 JUNE 30, 2002
--------------------- --------------------- -------------
Revenues:
Rental $ 1,306 $ 28,783 $ 19,374
Tenant reimbursements 576 12,731 7,572
Hotel operations 175 8,738 10,485
Parking 227 5,637 3,161
Management, leasing, and development
services to affiliates 21 2,349 3,341
Interest and other 2,336 897 377
------------ ------------ ------------
Total revenues 4,641 59,135 44,310
------------ ------------ ------------
Expenses:
Rental property operating and maintenance 610 12,280 6,369
Hotel operating and maintenance 143 6,657 7,083
Real estate taxes 144 3,133 1,937
General and administrative 14,183 8,618 7,786
Depreciation and amortization 404 11,387 7,256
Interest 840 24,853 17,429
Loss on extinguishment of debt 44,329 6,667 --
Other 3,920 8,062 312
------------ ------------ ------------
Total expenses 64,573 81,657 48,172
------------ ------------ ------------
Loss before equity in net income (loss) of
real estate entities and minority
interests (59,932) (22,522) (3,862)
Equity in net income (loss) of real estate entities 6 1,648 (518)
------------ ------------ ------------
Loss before minority interests (59,926) (20,874) (4,380)
Minority interests (13,684) 275 (338)
------------ ------------ ------------
Net loss $ (46,242) $ (21,149) $ (4,042)
============ ============ ============
Basic and diluted loss per share $ (1.25)
============
Weighted-average common shares outstanding -
basic and diluted 36,853,421
============