Chairman & Chief Executive Officer
Consolidated Statement of Operations
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Total Revenues $37,744 $29,502 $73,026 $57,118
Net Income $ 6,991 $ 3,112 $11,431 $ 6,143
Funds From Operations $17,288 $12,601 $31,477 $24,796
Funds From Operations Per Share $ 0.52 $ 0.47 $ 1.03 $ 0.93
Cash Dividends Per Share $ 0.42 $ 0.40 $ 0.84 $ 0.80
Once again I am pleased to report continued success, first in the strong operating results of our real estate, and secondly in our ongoing ability to access the capital markets. Some of the highlights of our second quarter were:
69 industrial properties, totaling 9.9 million square feet, were 98.7% leased;
37 suburban office properties, totaling 3.7 million square feet, were 92.3% leased; and
14 neighborhood retail properties, totaling 1.7 million square feet, were 95.8% leased
We continue to see profitable acquisition and development opportunities in our markets. Combined with the strength of our operating performance, including higher rent levels, we fully expect to meet our goals of achieving sustainable growth in cash flow and increasing the value of your investment.
Warren E. Spieker, Jr.
Chairman & Chief Executive Officer
June 30 December 31
1995 1994
(unaudited)
Assets:
Properties $ 966,732 $ 744,478
Less: Accumulated depreciation (110,211) (99,786)
_________ _________
Properties net of accumulated depreciation 856,521 770,827
_________ _________
Cash and cash equivalents 6,242 9,663
Accounts receivable 2,425 2,896
Prepaid expenses and other assets 9,757 12,146
Deferred financing and leasing costs, net 13,683 14,406
_________ _________
Total assets $ 888,628 $ 809,938
_________ _________
Liabilities and Stockholders' Equity
Liabilities:
Mortgage loans $ 433,553 $ 522,277
Accounts payable & other liabilities 19,219 18,968
Dividends & distributions payable 15,557 11,005
_________ _________
Total liabilities 468,329 552,250
_________ _________
Minority Interests 58,712 51,384
_________ _________
Stockholders' Equity:
Series A Convertible, Cumulative, 23,949 23,949
no par value preferred stock,
1,000,000 Shares authorized,
issued and outstanding
Common stock, $.0001 par value, 3 2
667,000,000 shares authorized,
26,713.824 and 20,417,513 shares
issued and outstanding, respectively
Class B Common Stock, $.0001 par value
2,000,000 shares authorized, issued and
outstanding
Additional paid-in-capital 337,635 182,353
Retained Earnings (Deficit) ___ ___
_________ _________
Total Stockholder's Equity 361,587 206,304
_________ _________
Total Liabilities and Stockholders' Equity 888,628 809,938
_________ _________
_________ _________
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Revenue:
Rental income $ 36,673 $ 29,023 $ 71,022 $ 56,209
Interest and other income 1,071 479 2,004 909
________ ________ _________ _________
Total income 37,744 29,502 73,026 57,118
________ ________ _________ _________
Expenses:
Operating expenses of 8,728 6,869 17,071 13,043
investments
Interest expense, including 12,052 10,862 25,021 20,903
amort. of discount
Depreciation and amortization 7,904 7,195 15,283 14,112
General administrative 2,069 1,464 4,220 2,917
________ ________ _________ _________
Total expenses 30,753 26,390 61,595 50,975
________ ________ _________ _________
Net income before minority 6,991 3,112 11,431 6,143
interests ________ ________ _________ _________
Minority interest share of (1,369) (662) (2,329) (1,343)
net income ________ ________ _________ _________
Net Income $ 5,622 $ 2,450 $ 9,102 $ 4,800
________ ________ _________ _________
Preferred Dividends (512) (263) (1,024) (263)
________ ________ _________ _________
Net income available to common $ 5,110 $ 2,187 $ 8,078 $ 4,537
________ ________ _________ _________
________ ________ _________ _________
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
Net income before minority $ 6,991 $ 3,112 $ 11,431 $ 6,143
interest
Add:
Depreciation and amortization 7,855 7,195 15,194 14,112
Amortization of indebtedness 2,455 2,476 4,974 4,609
discount and deferred
financing costs
Other 65 85 141 166
Straight-lined rent (78) (267) (263) (234)
________ ________ _________ _________
Funds From Operations (1) $ 17,288 $ 12,601 $ 31,477 $ 24,796
________ ________ _________ _________
________ ________ _________ _________
Per share data: (2)
Funds from Operations $ 0.52 $ 0.47 $ 1.03 $ 0.93
________ ________ _________ _________
Dividends on Common Stock $ 0.42 $ 0.40 $ 0.84 $ 0.80
________ ________ _________ _________
Weighted average shares 33,086 26,951 30,388 26,624
outstanding ________ ________ _________ _________
________ ________ _________ _________
(1) Funds from Operations means income (loss) from operations before disposal of real estate properties, minority interest and extraordinary items plus depreciation and amortization, certain other non cash charges and an adjustment for the straight-lining of rents less cash distributable to limited partners other than limited partners in Spieker properties L.P. Most REITs, including SPK, as well as industry analysts consider Funds from Operations to be an appropriate measure of the performance of an equity REIT. Funds from Operations does not represent net income or cash flows from operations as defined by GAAP. It should not be considered as an alternative to net income as an indicator of the Company's operating performance or to cash flows as a measure of liquidity.
(2) Calculated based on average shares outstanding, assuming conversion of Series A Preferred Stock, Class B Common Stock, and/or partnership units outstanding.
Spieker Properties provides a Dividend Reinvestment Plan which enables shareholders to invest dividends automatically as well as to make voluntary cash payments for the purchase of additional shares. For information on the Company's dividend reinvestment plan contact Chemical Shareholder Services at 1-800-356-2017.
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