Carey Diversified LLC Reports First Quarter 2000 Earnings
NEW YORK, NY – May 04, 2000 – Carey Diversified LLC (NYSE:CDC), a market leader in the ownership and net-leasing of corporate properties, today reported that Funds From Operations ("FFO") for the three months ended March 31, 2000, was $13 million compared to $12.7 million. On a per share basis, Funds From Operations was $0.51 per share (basic and diluted), compared to $0.50 per share in the previous year's first quarter.
FIRST QUARTER HIGHLIGHTS
- The board of directors voted to raise the dividend to $0.4225 per share, up from $0.4175 in the fourth quarter of 1999. On an annualized basis, this equates to $1.69 per share versus $1.67 per share in 1999. Since the Company became public in January 1998, approximately $95 million has been paid out in dividends to shareholders.
- In February 2000, the Company completed construction of the world-wide information technology headquarters for Federal Express Corporation in Collierville, Tennessee. The facility is comprised of nine buildings with approximately 900,000 square feet, and is leased for an initial term of 20 years at an initial annual rent of $6,628,000.
- As a part of its ongoing commitment to enhance the value of its portfolio, the Company has taken the initiative to redevelop its Broomfield, Colorado property. In March 2000, the Company acquired eleven additional acres adjacent to the existing twelve-acres. Carey Diversified plans to redevelop the twenty-three acre site, located along Route 36, a major corridor between Denver and Boulder, into a business park with 400,000 square feet of Class A office space.
- In November 1999, Carey Diversified's Board of Directors unanimously approved a merger with W. P. Carey & Co. LLC, a transaction which Carey Diversified's Board believes will be immediately accretive to FFO, provide the Company unique access to capital, improve and strengthen the Company's credit profile and provide greater potential for future growth. The Company has submitted proxy materials for the proposed merger to the Securities and Exchange Commission where they are currently under review. The Company expects to send solicitation materials to shareholders in May 2000.
QUARTERLY RESULTS
Funds from operations for the quarter ended March 31, 2000 increased to $13 million, or $0.51 per diluted share, from $12.7 million, or $0.50 per diluted share for the same period in 1999. Total revenues increased to $23.3 million in the first quarter of 2000. Net income of $9.6 million declined by 2% in the first quarter of 2000 versus the same quarter a year ago primarily as a result of a nonrecurring loss from the sale of a property and an increase in noncash charges for depreciation.
ON TARGET WITH GOALS
Commenting on the Company's performance, Francis J. Carey, Chairman and Chief Executive Officer of Carey Diversified, said, " The Company continues to perform well and we are on target with our goals of providing our investors with rising current dividends, consistent investment performance and prudent growth. We are very pleased that we have been able to increase FFO over the same period last year. After meeting our objectives in 1999 and in the first quarter of 2000, we have raised the dividend to an annualized $1.69 per share."
Carey Diversified LLC, a member of the $2.5 billion W. P. Carey Group, is the largest limited liability company traded on the New York Stock Exchange. The Company's portfolio consists of 208 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, Gibson Greetings, 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.
