Capital Automotive REIT Reports Second Quarter and Six Month Results; Company Declares $0.21 Per Share Dividend
30 July 1998
Capital Automotive REIT Reports Second Quarter and Six Month Results; Company Declares $0.21 Per Share Dividend
MCLEAN, Va., July 30 -- Capital Automotive REIT
today announced financial results for the second quarter and
six months ended June 30, 1998.
For the second quarter, the Company reported funds from operations (FFO)
of $6.9 million, or $0.23 per basic and diluted share, on total revenues of
$8.5 million. Net income was $4.7 million, or $0.19 per basic and diluted
share. FFO results are based on diluted weighted average number of common
shares and units of 30.6 million.
For the six month period ended June 30, 1998, funds from operations were
$9.3 million, or $0.42 per basic share or $0.41 per diluted share, on total
revenues of $11.9 million. Net income for the period was $6.4 million, or
$0.34 per basic and diluted share. FFO results for the six month period are
based on basic weighted average number of shares and units of 22.4 million and
diluted weighted average number of shares and units of 22.7 million.
The Company also announced today that its Board of Trustees has declared a
cash dividend of $0.21 per share for the second quarter. The dividend is
payable on August 20, 1998 to shareholders of record as of August 10, 1998.
During the second quarter, Capital Automotive REIT closed on $110 million
in property acquisitions. Consideration for the properties consisted of 81%
cash and 19% operating partnership units. Subsequent to June 30, 1998, the
Company has closed on approximately $30 million in property acquisitions. As
of June 30, 1998, Capital Automotive owned 64 properties, including 96
franchises representing 27 automotive brands in 14 states. As of June 30,
1998, the Company owned the property used by 14 dealer groups, seven of which
are in the top 100 dealer groups in the country according to Automotive News.
Thomas D. Eckert, president and chief executive officer, stated, "We are
very pleased with our results for the second quarter which reflect the
commitment to our strategy of acquiring high-quality properties at attractive
lease rates. The $98 million in property acquisitions we announced early in
the second quarter as well as the conversion of our letters of intent to firm
contracts are indicative of our pipeline and significant growth potential. We
continue to lengthen the initial lease terms as well as expanding our
geographic and franchise diversification. These are important components of
our portfolio risk management."
Capital Automotive REIT, headquartered in McLean, Virginia, is a self-
administered, self-managed real estate investment trust formed to acquire the
real property and improvements used by operators of multi-site, multi-
franchised motor vehicle dealerships and motor vehicle related business.
Additional information on Capital Automotive REIT is available on the
Company's website at http://www.capitalautomotive.com.
The matters discussed in this press release include forward-looking
statements. In addition, when used in this press release, the words "intends
to," "believes," "anticipates," "expects" and similar expressions are intended
to identify forward-looking statements. Such statements are subject to a
number of risks and uncertainties. Actual results in the future could differ
materially and adversely from those described in the forward-looking
statements as a result of various important factors, including the general
economic climate, the supply of and demand for automotive properties, interest
rate levels, the availability of financing, and other risks associated with
the acquisition and leasing of properties, including risks that the tenants
will not pay rent or that operating costs may be greater than anticipated and
the other risk factors set forth in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements that
may be made to reflect any future events or circumstances.
CAPITAL AUTOMOTIVE REIT
UNAUDITED FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Statement of Operations: Three Months Ended Six Months Ended
June 30, 1998 June 30, 1998
Revenue:
Rental income $5,098 $6,829
Interest income 3,447 5,037
Total revenue
8,545 11,866
Expenses:
Depreciation and amortization 995 1,339
General and administrative 1,470 2,362
Interest expense 127 168
Total expenses 2,592 3,869
Net income before minority interest 5,953 7,997
Minority interest (1,206) (1,620)
Net income applicable to
common shareholders $4,747 $6,377
Basic earnings per share $0.19 $0.34
Diluted earnings per share $0.19 $0.34
Weighted average number
of common shares - basic 24,792 18,504
Weighted average number
of common shares - diluted 24,876 18,606
Funds from Operations:
Net income before
minority interest $5,953 $7,997
Adjustments:
Add: Real estate depreciation
and amortization 965 1,294
Funds from operations: $6,918 $9,291
Basic funds from operations
per share $0.23 $0.42
Diluted funds from operations
per share $0.23 $0.41
Weighted average number of
common shares and units - basic 30,273 22,384
Weighted average number of
common shares and units - diluted 30,572 22,746
Selected Balance Sheet Data: June 30,
1998
Real estate before accumulated depreciation $263,957
Cash and cash equivalents 190,600
Total assets 455,073
Borrowings under line of credit 8,570
Total other liabilities 3,998
Minority interest 89,781
Total shareholders' equity 352,725