Exhibit 99.1
Cornerstone Realty Reports Fourth Quarter and Year 2004 Results
RICHMOND, Va.--(BUSINESS WIRE)--March 16, 2005--Cornerstone Realty
Income Trust, Inc. (NYSE:TCR) today reported operating results for the
fourth quarter and year ended December 31, 2004.
Funds From Operations ("FFO") for the fourth quarter ended
December 31, 2004 were $9.6 million, or $0.17 per common share basic
and diluted, compared with $11.3 million, or $0.20 per common share
basic and diluted, in the fourth quarter of 2003. FFO for the year
2004 was $44.3 million, or $0.76 per common share basic and diluted,
before severance and other organizational costs incurred in the first
quarter of 2004, compared with $43.5 million, or $0.80 per common
share basic and diluted, in 2003. Including the severance and other
organizational costs incurred in the first quarter of 2004, FFO for
the year 2004 was $43.6 million, or $0.75 per common share basic and
diluted. Net loss available to common shareholders for the fourth
quarter ended December 31, 2004 was $8.2 million, or $0.14 per common
share basic and diluted, compared with a net loss available to common
shareholders of $3.1 million, or $0.06 per common share basic and
diluted, in the fourth quarter of 2003. For the year 2004, net loss
available to common shareholders was $12.5 million, or $0.22 per
common share basic and diluted, compared with a net loss available to
common shareholders of $7.6 million, or $0.14 per common share basic
and diluted, in 2003. Cornerstone incurred expenses in conjunction
with the proposed merger with Colonial Properties Trust totaling $4.0
million in the fourth quarter of 2004 and $4.2 million for the year
2004. FFO is the generally accepted measure of operating performance
for a real estate investment trust (REIT). A reconciliation of net
income to FFO is included in the Operating Results table at the end of
this news release.
In the fourth quarter of 2004, total revenues were $47.3 million
compared with $44.7 million in the fourth quarter of 2003. Average
physical occupancy in the fourth quarter of 2004 was 94% compared with
92.5% last year, and the average rent per unit in the fourth quarter
of this year was $669 compared with $670 last year. For the year 2004,
total revenues were $182.5 million compared with $171.7 million in
2003. Average physical occupancy for the year 2004 was 93.4% compared
with 92.1% in 2003, and the average rent per unit in 2004 was $666
compared with $674 in 2003.
Comparable Property Operations
Comparable property operations is a measure Cornerstone uses to
evaluate performance and is not deemed to be an alternative to net
income as determined in accordance with generally accepted accounting
principles. In addition, this measure as calculated by Cornerstone may
not be comparable to similarly entitled measures of other companies.
At the end of the fourth quarter of 2004, Cornerstone's
"same-community" portfolio consisted of 77 stabilized apartment
communities containing 20,542 apartment homes that the company owned
since January 1, 2003, representing approximately 89% of Cornerstone's
22,981 units. For the fourth quarter of 2004, same-community property
operating income (rental income less property operating expenses)
increased 0.9% compared with the fourth quarter of 2003. Fourth
quarter 2004 rental income increased 3.4% while operating expenses
increased 6.4% compared with the fourth quarter of 2003. For the year
2004, same-community property operating income decreased 0.2% compared
with 2003. Rental income in 2004 increased 1.3% while operating
expenses increased 3.1% compared with 2003.
Definitive Merger Agreement
On October 25, 2004 Cornerstone and Colonial Properties Trust
(NYSE: CLP), a real estate investment trust (REIT) that owns a
diversified portfolio of multifamily, office and retail properties,
announced that they have entered into a definitive merger agreement
under which Cornerstone will merge into a subsidiary of Colonial
Properties Trust. There are a number of conditions that must occur for
the merger to close, including the approval of the transaction by the
shareholders of both Cornerstone and Colonial Properties and the
receipt of necessary consents. Special meetings of shareholders of
both companies, at which shareholder votes will be tabulated, are
scheduled for April 1, 2005. Further information on the merger
agreement can be found in recent Securities and Exchange Commission
(SEC) filings and news releases from both companies.
Dividends
A quarterly dividend of $0.20 per share was paid on February 11,
2005 to common shareholders of record on February 4, 2005. On December
21, 2004 Cornerstone redeemed all of its outstanding Series A
Convertible Preferred Shares for $25.00 per share plus $0.5228 in
accrued and unpaid dividends.
Forward Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of the
company to be materially different from results expressed or implied
by such forward-looking statements. Such factors include, among other
things, risks associated with the proposed merger with Colonial
Properties Trust, the ability to obtain property financing,
unanticipated adverse business developments affecting the company,
adverse changes in the real estate markets, and local as well as
general economic and competitive factors. There is no assurance that
planned events or results, including, among other things, the proposed
merger with Colonial Properties Trust, will be achieved. In addition,
the timing and level of distributions to common shareholders are
within the discretion of the company's board of directors. The company
on a regular basis considers what level of distributions to common
shareholders is appropriate.
Corporate Profile
Cornerstone Realty Income Trust, Inc. (NYSE:TCR) is a fully
integrated, self-managed and self-advised real estate company that has
operated as a real estate investment trust (REIT) since 1993. The
company focuses on the ownership and management of multifamily
communities in select markets in Virginia, North Carolina, South
Carolina, Georgia and Texas. Currently Cornerstone owns 87 apartment
communities with 22,981 units, a third-party property management
business, apartment land under development, and ownership interests in
four real estate joint ventures. Cornerstone is headquartered in
Richmond, Virginia and its common stock trades on the New York Stock
Exchange under the symbol "TCR." For more information about
Cornerstone, visit the company's Web site at www.cornerstonereit.com.
Additional Information about the Merger and Where to Find It
On October 25, 2004, an Agreement and Plan of Merger was entered
into among Colonial Properties Trust ("Colonial Properties"), CLNL
Acquisition Sub LLC and Cornerstone Realty Income Trust, Inc. (the
"Company") under which the Company will merge with and into CLNL
Acquisition Sub LLC (the "Merger").
The Company and Colonial Properties filed definitive materials
with the Securities and Exchange Commission on February 15, 2005,
including a joint proxy statement/prospectus. INVESTORS AND SECURITY
HOLDERS OF THE COMPANY AND COLONIAL PROPERTIES ARE URGED TO READ THE
MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE
COMPANY, COLONIAL PROPERTIES AND THE MERGER. The definitive joint
proxy statement/prospectus filed on February 15, 2005 and other
relevant materials (when they become available), and any other
documents filed by the Company and Colonial Properties with the SEC,
may be obtained free of charge at the SEC's Web site at www.sec.gov.
In addition, investors and security holders may obtain free copies of
the documents filed with the SEC by Colonial Properties by directing a
written request to Colonial Properties Trust, 2101 Sixth Avenue North,
Suite 750, Birmingham, Alabama 35203, Attention: Investor Relations,
and free copies of the documents filed with the SEC by the Company by
directing a written request to Cornerstone Realty Income Trust, Inc.,
306 East Main Street, Richmond, Virginia 23219, Attention: Investor
Relations. Investors and security holders are urged to read the
definitive joint proxy statement/prospectus and the other relevant
materials when they become available before making any voting or
investment decision with respect to the Merger.
The Company, Colonial Properties and their respective executive
officers, trustees and directors may be deemed to be participants in
the solicitation of proxies from the security holders of the Company
and Colonial Properties in connection with the Merger. Information
about the executive officers and directors of the Company and their
ownership of Company common shares is set forth in the proxy statement
for the Company's 2004 Annual Meeting of Shareholders, which was filed
with the SEC on April 8, 2004. Information about the executive
officers and trustees of Colonial Properties and their ownership of
Colonial Properties common stock and limited partnership units in
Colonial Realty Limited Partnership is set forth in the proxy
statement for Colonial Properties' 2004 Annual Meeting of
Shareholders, which was filed with the SEC on March 22, 2004.
Investors and security holders may obtain additional information
regarding the direct and indirect interests of the Company, Colonial
Properties and their respective executive officers, trustees and
directors in the merger by reading the proxy statement and prospectus
regarding the Merger.
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such jurisdiction. No offering of securities shall be made
except by means of a prospectus meeting the requirements of Section 10
of the Securities Act of 1933, as amended.
CORNERSTONE REALTY INCOME TRUST, INC.
OPERATING RESULTS
In Thousands Except Per Share Amounts
Three Months Twelve Months
Ended Ended
December 31 December 31
2004 2003 2004 2003
- ----------------------------------------------------------------------
Revenues
Rental Income $43,076 $42,362 $171,339 $163,059
Fee Management and Other
Property Income 4,175 2,301 11,153 8,593
---------------- ------------------
Total Revenues 47,251 44,663 182,492 171,652
Expenses
Property and Maintenance 14,399 13,401 54,376 50,930
Taxes and Insurance 6,592 6,292 25,529 23,550
Property Management 1,522 976 5,426 4,102
General and Administrative 1,544 1,104 4,630 3,824
Depreciation and Amortization
of Real Estate Assets 13,409 14,407 54,783 52,794
Severance Costs and Other
Organizational Charges - - 760 -
Other Depreciation 93 6 110 23
Fee Management and Other 1,974 30 2,161 239
---------------- ------------------
Total Expenses 39,533 36,216 147,775 135,462
7,718 8,447 34,717 36,190
Interest Income (53) 104 40 274
Interest Expense (11,488)(11,632) (46,090) (45,896)
Expenses Associated with the
Proposed Colonial Properties
Trust Transaction (3,971) - (4,161) -
---------------- ------------------
Loss from Continuing Operations
before Gains on Sales of
Investments and Minority Interest
of Unit Holders in
Operating Partnership (7,794) (3,081) (15,494) (9,432)
Gain on Sales of Investments (26) - 3,428 -
Minority Interest of Unit Holders
in Operating Partnership 234 92 360 262
---------------- ------------------
Loss from Continuing Operations (7,586) (2,989) (11,706) (9,170)
Discontinued Operations
Loss from Discontinued Operations - (5) - (15)
Gain on Sales of Investments - (75) - 1,887
---------------- ------------------
Net Loss $(7,586)$(3,069) $(11,706) $(7,298)
================ ==================
Distributions to Preferred
Shareholders (67) (76) (294) (303)
Excess Consideration Paid over
Book Value to Preferred
Shareholders (505) - (505) -
---------------- ------------------
Net Loss Available to Common
Shareholders $(8,158)$(3,145) $(12,505) $(7,601)
================ ==================
Funds From Operations
Net Loss Available to Common
Shareholders $(8,158)$(3,145) $(12,505) $(7,601)
Adjustments:
Distributions to Preferred
Shareholders 67 76 294 303
Minority Interest of Unit Holders
in Operating Partnership (234) (92) (360) (262)
Gain on Sales of Investments 26 75 (3,428) (1,887)
Expenses Associated with the
Proposed Colonial Properties
Trust Transaction 3,971 - 4,161 -
Excess Consideration Paid over
Book Value to Preferred
Shareholders 505 - 505 -
Depreciation on JV Investments 40 - 118 -
Depreciation from Discontinued
Operations - - - 162
Depreciation and Amortization
of Real Estate Assets 13,409 14,407 54,783 52,794
---------------- ------------------
Funds From Operations $9,626 $11,321 $43,568 $43,509
================ ==================
Per Share
Weighted Average Common and
Preferred Shares and Operating
Partnership Units -- Diluted 58,285 57,488 58,028 54,694
Funds From Operations Per Share
-- Basic and Diluted $0.17 $0.20 $0.75 $0.80
Common Share Distributions $0.20 $0.20 $0.80 $0.88
Net Loss from Continuing
Operations -- Basic and Diluted $(0.14) $(0.05) $(0.22) $(0.18)
Net Income from Discontinued
Operations -- Basic and Diluted $- $- $- $0.04
Net Loss Available to Common
Shareholders -- Basic and
Diluted $(0.14) $(0.06) $(0.22) $(0.14)
Weighted Average Common Shares
-- Basic and Diluted 56,300 55,479 56,025 52,643
CONTACT: Cornerstone Realty Income Trust, Inc.
Mark M. Murphy, 804-643-1761, ext. 231