Carey Diversified LLC Reports Third Quarter 1999 Results
FFO Per Share Increases to $0.52
NEW YORK, NY – October 28, 1999 – Carey Diversified LLC (NYSE:CDC), a market leader in the ownership and net-leasing of corporate properties, today reported that Funds From Operations for the three months ended September 30, 1999, were $0.52 per share (basic and diluted), compared to $0.50 per share in the third quarter of 1998, an increase of 4%. Funds From Operations (FFO) for the nine months ended September 30, 1999 increased 8% to $39.3 million or $1.54 per share, compared to $36.2 million or $1.47 per share for the comparable nine months last year. FFO is the most commonly accepted and reported measure of operating performance for a real estate investment company.
Revenues for the three- and nine-month periods increased by 11% and 5%, respectively. Net income declined over the three- and nine-month periods ended September 30, 1999, largely as a result of increased depreciation, amortization and property expense as Carey Diversified expanded its asset base. In September, the Board of Directors declared a quarterly cash dividend of $0.4175 per common share (on an annualized basis, $1.67 per share), the Company’s third quarterly dividend this year at this rate and an increase over last year’s rate of $0.4125.
The dividend was payable on October 15, 1999 to shareholders of record on September 30, 1999. Since Carey Diversified became public in January 1998, it has paid out over $73.2 million, or $2.91 per share, in dividends to Carey Diversified’s shareholders.
THIRD QUARTER HIGHLIGHTS
- FFO per diluted share increased 4% over the same period a year ago.Dividend payout ratio decreased from 84% to 80% while strengthening FFO.
- Carey Diversified funded and closed a $13.8 million non-recourse mortgage financing secured by the East Coast distribution warehouses of The Gap, Inc. (NYSE:GPS). The buildings are leased to The Gap under a 15-year triple net lease. The non-recourse financing has a 10-year term and will amortize based on a 13-year schedule. The 900,000 square foot facilities in Erlanger, KY, were originally acquired in 1979 by the predecessor partnerships.
- Carey Diversified sold its hotel in Topeka, Kansas for $8.1 million as part of management’s strategy to actively manage its portfolio in order to maximize shareholder value.
PERFORMANCE
Commenting on the Company’s performance, Francis J. Carey, Chairman and Chief Executive Officer said, "Since its inception as a public company nearly two years ago, Carey Diversified has delivered increases in FFO and revenues over each ensuing year-to-year period.
In addition, we have delivered on our commitment to provide both stable and increasing dividends year-to-year. Management remains focused on providing performance that will continue to yield long term shareholder value."
Gordon F. DuGan, Carey Diversified's President, noted, "We continue to aggressively seek accretive transactions and to strategically manage the portfolio to reduce risk, maximize opportunities and produce sustainable value."
Carey Diversified LLC, a member of the $3 billion W. P. Carey Group, is the largest limited liability company traded on the New York Stock Exchange. The Company’s portfolio consists of 210 properties totaling more than 20 million square feet. Carey Diversified leases properties to manufacturing, technology, retailing and communications companies, including Federal Express Corp., America West Airlines, Detroit Diesel, Dr Pepper Bottling Company of Texas, Wal-Mart, AT&T, The Gap and more than 70 others. Additional information about Carey Diversified LLC is available on the Company's website at: www.careydiv.com.
This press release contains forward-looking statements within the meaning of the Federal securities laws. A number of factors could cause the company's actual results, performance or achievement to differ materially from those anticipated. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office and industrial properties; interest rate levels; the availability of financing; and other risks associated with the acquisition and ownership of properties, including risks that the tenants will not pay rent, or that costs may be greater than anticipated. For further information on factors that could impact the company, reference is made to the company's filings with the Securities and Exchange Commission.
