'We build the buildings for the high tech companies that build the internet'
CUPERTINO, Calif., Feb. 6 /PRNewswire-FirstCall/ -- Mission West Properties, Inc. (AMEX:MSW) reported today that Funds From Operations ("FFO") for the quarter ended December 31, 2007 was approximately $13,992,000 or $0.13 per diluted common share (considering the potential effect of all O.P. units being exchanged for shares of the Company's common stock) as compared to approximately $18,538,000 or $0.18 per diluted common share for the same period in 2006. On a sequential quarter basis, FFO for the quarter ended September 30, 2007 was approximately $0.58 per diluted common share, which included approximately $0.44 from termination fee income. For the twelve months ended December 31, 2007, FFO increased to approximately $114,867,000 or $1.09 per diluted common share from FFO of $86,585,000 or $0.83 per diluted common share for the same period in 2006. Net termination fee income relating to lease terminations accounted for approximately $51,721,000 or $0.49 per diluted common share and $14,784,000 or $0.14 per diluted common share for the twelve months ended December 31, 2007 and 2006, respectively.
Net income per diluted share to common stockholders was $0.08 for the quarter ended December 31, 2007 compared to $0.27 for the quarter ended December 31, 2006, a per share decrease of approximately 70.4%. Gain on sale of real estate accounted for approximately $0.15 per diluted common share for the three months ended December 31, 2006. For the twelve months ended December 31, 2007, net income per diluted share to common stockholders was $0.95, up from $0.76 a year ago, a per share increase of approximately 25%. Net termination fee income relating to lease terminations accounted for approximately $0.52 and $0.15 per diluted common share for the twelve months ended December 31, 2007 and 2006, respectively.
The Company announced today that its Board of Directors declared its regular quarterly dividend on the Company's Common Stock for the first quarter of 2008. The declared dividend represents a 25.0%, or $0.04 per share, increase over the Company's prior quarterly dividend of $0.16 per share. The Common Stock dividend is $0.20 per share and is payable on April 3, 2008 to all Common Stockholders of Record as of March 31, 2008. The dividend is equivalent to an annual rate of $0.80 per share, which represents an 8.4 percent annualized yield based on the latest closing price of $9.53 per share. The Company intends to make regular quarterly distributions to holders of its Common Stock based upon its cash available for distribution.
Company Profile Mission West Properties, Inc. operates as a self-managed, self-administered and fully integrated REIT engaged in the management, leasing, marketing, development and acquisition of commercial R&D properties, primarily located in the Silicon Valley portion of the San Francisco Bay Area. Currently, the Company manages 109 properties totaling approximately 7.9 million rentable square feet, which includes approximately 854,000 rentable square feet (or 16 buildings) that are in the process of being rezoned for residential development. For additional information, please contact Investor Relations at 408-725-0700.
The matters described herein contain forward-looking statements. Such statements can be identified by the use of forward-looking terminology such as "will," "anticipate," "estimate," "expect," "intends," or similar words. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, the ability to complete acquisitions under the Berg Land Holdings Option Agreement with the Berg Group and other factors detailed in the Company's registration statements, and periodic filings with the Securities & Exchange Commission.
MISSION WEST PROPERTIES, INC. SELECTED FINANCIAL DATA
(In thousands, except share, per share and property data amounts) Three Months Three Months Twelve Twelve Months
Ended Ended Months Ended Ended
Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006 REVENUES:
Rental revenue from
real estate $18,986 $23,175 $80,337 $91,457
Above market lease
intangible asset
amortization - (472) (1) (4,091) (1) (1,888) (1)
Tenant reimbursements 3,447 3,678 13,355 13,061
Lease termination
income - - 57,515 16,068
Other income, including
interest 1,644 1,673 7,553 4,498
Total revenues 24,077 28,054 154,669 123,196 EXPENSES:
Operating expenses 2,631 2,273 9,791 8,282
Real estate taxes 2,433 2,673 10,580 10,222
Interest 4,956 5,129 20,131 20,709
Interest (related
parties) 178 186 724 755
General and
administrative 667 445 3,035 2,248
Depreciation and
amortization of real
estate 5,503 (2) 5,586 (2) 22,588 (2) 21,579 (2)
Total expenses 16,368 16,292 66,849 63,795
Income before equity
in earnings of
unconsolidated
joint venture and
minority interests 7,709 11,762 87,820 59,401
Equity in earnings of
unconsolidated joint
venture 350 447 1,408 1,985
Minority interests (6,491) (9,930) (71,471) (49,928)
Income from
continuing
operations 1,568 2,279 17,757 11,458 Discontinued
operations, net of
minority interests:
Gain from disposal of
discontinued
operations - 2,935 1,126 2,935
(Loss)/income
attributable to
discontinued
operations - 36 5 237
Income from
discontinued
operations - 2,971 1,131 3,172 Net income to common
stockholders $1,568 $5,250 $18,888 $14,630
Net income to
minority interests $6,491 $25,301 $76,960 $66,358
Income per share from
continuing
operations:
Basic $0.08 $0.12 $0.90 $0.60
Diluted $0.08 $0.12 $0.89 $0.59
Income per share from
discontinued
operations:
Basic - $0.15 $0.06 $0.17
Diluted - $0.15 $0.06 $0.17
Net income per share
to common
stockholders:
Basic $0.08 $0.27 $0.96 $0.77
Diluted $0.08 $0.27 $0.95 $0.76
Weighted average
shares of common
stock (basic) 19,645,304 19,417,823 19,627,234 19,066,581
Weighted average
shares of common
stock (diluted) 19,710,909 19,630,674 19,854,411 19,298,664
Weighted average
O.P. units
outstanding 85,552,718 85,215,982 85,162,240 85,510,491 FUNDS FROM OPERATIONS
Funds from
operations $13,992 $18,538 $114,867 $86,585
Funds from
operations per
share (3) $0.13 $0.18 $1.09 $0.83
Outstanding
common stock 19,664,087 19,443,587 19,664,087 19,443,587
Outstanding O.P. units 85,533,935 85,206,199 85,533,935 85,206,199
Weighted average
O.P. units and
common stock
outstanding
(diluted) 105,263,627 104,846,655 105,016,651 104,809,155 FUNDS FROM Three Months Three Months Twelve Months Twelve Months
OPERATIONS Ended Ended Ended Ended
CALCULATION Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006 Net income $1,568 $5,250 $18,888 $14,630
Add:
Minority
interests(4) 6,360 25,184 76,458 65,859
Depreciation and
amortization of
real estate from
continuing
operations 5,875 5,961 25,043 23,092
Depreciation and
amortization of real
estate from
discontinued
operations - 56 250 695
Depreciation &
amortization of real
estate held in
unconsolidated
joint venture 189 189 757 849
Less:
Gain on sale of
real estate - (18,102) (6,529) (18,540)
Funds from operations $13,992 $18,538 $114,867 $86,585
Funds From Operations ("FFO") is a non-GAAP financial measurement used
by real estate investment trusts ("REITs") to measure and compare
operating performance. As defined by NAREIT, FFO represents net income
(loss) before minority interest of unit holders (computed in accordance
with GAAP, accounting principles generally accepted in the United States
of America), excluding gains (or losses) from debt restructuring and sales
of property, plus real estate related depreciation and amortization
(excluding amortization of deferred financing costs and depreciation of
non.real estate assets) and after adjustments for unconsolidated
partnerships and joint ventures. Management considers FFO to be an
appropriate supplemental measure of the Company's operating and financial
performance because when compared year over year, it reflects the impact
to operations from trends in occupancy rates, rental rates, operating
costs, general and administrative expenses and interest costs, providing a
perspective not immediately apparent from net income. In addition,
management believes that FFO provides useful information about the
Company's financial performance when compared to other REITs since FFO is
generally recognized as the industry standard for reporting the operations
of REITs. FFO should not be considered as an alternative for net income as
a measure of profitability or is it comparable to cash flows provided by
operating activities determined in accordance with GAAP. FFO is not
comparable to similarly entitled items reported by other REITs that do not
define them exactly as we define FFO.
Three Months Three Months Twelve Months Twelve Months
PROPERTY AND Ended Ended Ended Ended
OTHER DATA: Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006 Total properties,
end of period 109 107 109 107
Total square feet,
end of period 7,861,692 7,701,359 7,861,692 7,701,359
Average monthly
rental revenue per
square foot (5) $1.28 $1.54 $1.42 $1.57
Occupancy for leased
properties 61.7% 69.5% 61.7% 69.5%
Straight-line rent $310 $318 ($3,656) ($729)
Leasing commissions $352 $342 $3,000 $1,157
Capital expenditures $257 $2,928 $4,878 $4,278 December 31, December 31,
BALANCE SHEET 2007 2006 Assets:
Land $312,152 $272,223
Buildings and improvements 764,665 756,596
Real estate related intangible
assets 2,119 19,529
Total investments in
properties 1,078,936 1,048,348
Less accumulated depreciation and
amortization (156,819) (149,459)
Net investments in properties 922,117 898,889
Cash and cash equivalents 23,691 33,785
Restricted cash 65,509 48,245
Deferred rent receivable 14,833 18,489
Investment in unconsolidated joint
venture 2,735 3,468
Other assets, net 25,000 24,611
Total assets $1,053,885 $1,027,487 Liabilities:
Mortgage notes payable $337,520 $348,101
Mortgage notes payable - related
parties 9,224 9,654
Interest payable 1,331 1,375
Security deposits 4,754 6,977
Deferred rental income 3,302 6,874
Dividend/distribution payable 16,832 16,745
Accounts payable and
accrued expenses 15,618 7,601
Total liabilities 388,581 397,327 Minority interests 526,626 501,282 Stockholders' equity:
Common stock, $.001 par value 20 19
Paid-in capital 153,024 149,541
Distributions in excess of
accumulated earnings (14,366) (20,682)
Total stockholders' equity 138,678 128,878
Total liabilities and
stockholders' equity $1,053,885 $1,027,487
(1) Amortization of an above-market lease intangible asset pursuant to
Statement of Financial Accounting Standard No. 141, "Business
Combinations." (2) Includes approximately $267 and $425 in amortization expense for the
three months ended December 31, 2007 and 2006, respectively, and
$2,153 and $1,613 in amortization expense for the twelve months ended
December 31, 2007 and 2006, respectively, for the amortization of
in-place lease value intangible asset pursuant to Statement of
Financial Accounting Standard No. 141, "Business Combinations." (3) Calculated on a fully diluted basis. Assumes conversion of O.P. units outstanding into the Company's common stock.
(4) The minority interest for third parties has been deducted from total
minority interest in calculating FFO.
(5) Average monthly rental revenue per square foot has been determined by
taking the cash base rent for the period divided by the number of
months in the period, and then divided by the average occupied square
feet in the period. DATASOURCE: Mission West Properties, Inc.
CONTACT: Carl E. Berg of Mission West Properties, Inc., +1-408-725-0700 Web site: http://www.missionwest.com/
|