Exhibit 99.1
CANYON PARK COMMONS
Historical Summaries
of Operating Revenue and Expenses
Nine Months Ended September 30, 1997 (Unaudited)
and Year Ended December 31, 1996
(With Independent Auditors' Report Thereon)
Independent Auditors' Report
The Board of Directors
CarrAmerica Realty Limited Partnership:
We have audited the accompanying historical summary of operating revenue and
expenses, as defined in note 2(a), of Canyon Park Commons for the year ended
December 31, 1996. This historical summary is the responsibility of the
management of Canyon Park Commons. Our responsibility is to express an opinion
on the historical summary based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the historical summary is free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the historical summary. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the historical summary. We believe
that our audit provides a reasonable basis for our opinion.
The accompanying historical summary was prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission and is
not intended to be a complete presentation of the revenue and expenses of Canyon
Park Commons.
In our opinion, the historical summary referred to above presents fairly, in all
material respects, the operating revenue and expenses described in note 2(a) of
Canyon Park Commons for the year ended December 31, 1996, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Washington, DC
February 4, 1998
CANYON PARK COMMONS
Historical Summaries of Operating Revenue and Expenses
For the nine months ended September 30, 1997 (unaudited)
and the year ended December 31, 1996
(dollars in thousands)
Nine months Year
ended ended
September 30, December 31,
1997 1996
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Operating revenue:
Building rental $1,018 $1,358
Recovery of operating expenses 70 65
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Total operating revenue 1,088 1,423
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Operating expenses:
Repairs & maintenance 6 6
Utilities 17 25
Real estate taxes 69 89
Insurance 13 11
Management fees 35 47
Operating services 24 23
Landscape maintenance 30 39
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Total operating expenses 194 240
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Operating revenue in excess
of operating expenses $ 894 $1,183
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See accompanying notes to historical summaries
of operating revenue and expenses.
CANYON PARK COMMONS
Notes to Historical Summaries of Operating Revenue and Expenses
For the nine months ended September 30, 1997 (unaudited)
and the year ended December 31, 1996
(dollars in thousands)
(1) Description of the Property
Canyon Park Commons (the Building) consists of one building located in
Bothell, Washington, a submarket of Seattle, containing approximately
95,000 square feet of office space available for lease. As of September
30, 1997, the building was 100% leased to one tenant.
(2) Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying historical summaries of operating revenue and
expenses are not representative of the actual operations for the
periods presented, as certain revenue and expenses, which may not
be comparable to those expected to be incurred by CarrAmerica
Realty Limited Partnership in the proposed future operations of
the Building, have been excluded. Interest income has been
excluded from revenue, and interest, depreciation and
amortization, and other costs not directly related to the future
operations of the Building have been excluded from expenses.
Management is not aware of any other material factors that would
cause the historical summaries of operating revenue and expenses
to not be indicative of the future operating results of the
Building.
(b) Revenue Recognition
Revenue from rental operations is recognized straight-line over
the terms of the respective leases.
(c) Interim Unaudited Financial Information
The accompanying unaudited financial information for the nine
months ended September 30, 1997 has been prepared consistent with
the rules and regulations of the Securities and Exchange
Commission governing the preparation of the amounts for the year
ended December 31, 1996. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations,
although management believes that the disclosures are adequate to
make the information presented not misleading. In the opinion of
management, all adjustments, consisting only of normal recurring
accruals, necessary to present fairly the historical summary of
operating revenue and expenses for the nine months ended September
30, 1997, have been included. The results of operations for the
nine-month period ended September 30, 1997 are not necessarily
indicative of the results for the full year.
CANYON PARK COMMONS
Notes to Historical Summaries of Operating Revenue and Expenses
(dollars in thousands)
(3) Rental Revenue
Minimum future rentals (excluding modifications and renewal options) on
noncancelable leases are as follows for the years ending December 31 (in
thousands):
1997 $1,358
1998 1,358
1999 792
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$3,508
(4) Pro Forma Taxable Operating Results and Cash Available from Operations
(Unaudited)
The unaudited pro forma table reflects the taxable operating results and
cash available from operations of the Building for the 12 months ended
September 30, 1997, as adjusted for certain items which can be factually
supported. For purposes of presenting pro forma net taxable operating
income, revenue is recognized when it is either collectible under the
lease terms or collected. Tax depreciation for the buildings is computed
on the modified accelerated cost recovery system method over a 39-year
life. This statement does not purport to forecast actual operating
results for any period in the future.
Pro forma net operating income (exclusive of
depreciation and amortization expense) $1,190
Less estimated depreciation and amortization expense 259
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Pro forma taxable operating income $ 931
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Pro forma cash available from operations $1,190
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