| Total Revenues | $37,744 | $73,026 | $ 6,991 | $11,431 | $17,288 | $31,477 | $ 0.52 | $ 1.03 | $ 0.42 | $ 0.84 | To Our Fellow Shareholders:
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:
- Funds From Operations grew to $17.3 million or $.52 a share during the most
recent quarter from $12.6 million or $.47 per share in the second quarter of 1994.
This represents a 37.3% increase in Funds From Operations and a 10.6% increase in
FFO per share over 1994 results for the same period. Revenues for the second
quarter 1995 increased to $37.7 million from $29.5 during the second quarter of
1994.
- In May, underwriters for our secondary public offering of 5,000,000 shares of
Common Stock exercised their option to purchase an additional 750,000 shares to
cover over-allotments of Spieker Properties Common Stock, bringing the total
public offering to $113 million. We also directly placed $60 million of equity
securities with a limited number of domestic pension funds. As a result of these
offerings, our debt to total market capitalization has fallen to 35.8% at June 30,
1995 down from 44.2% a year earlier.
- In June, the interest rate on our secured line of credit was reduced by 25 basis
points. With the reduction, Spieker now has in place a $150 million credit facility
bearing interest at LIBOR plus 175 basis points. As of June 30, 1995 there were no
amounts outstanding under the facility, giving us substantial liquidity for new
acquisitions and developments.
- During the quarter, five projects were under construction which will add nearly
650,000 square feet to our portfolio. The expected return on capitalized costs of
$53.1 million is 11.7%.
- We also completed two acquisitions totaling $12.1 million which added 255,202
square feet of commercial property to our portfolio. The expected return on costs
for these two acquisitions is in excess of 11.5%.
- During the quarter we executed 140 lease transactions for more than 870,000
square feet in yet another busy period for the company. Effective rents on new
leases average 3.8% above the expiring leases for the same space.
- At June 30, 1995 our portfolio of 120 properties, totaling 15.3 million square feet,
was 96.8% leased. By property type the occupancy levels 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
- Finally, Dennis E. Singleton, Director and Executive Vice President has been
appointed Chief Investment Officer with responsibilities for all real estate
development and acquisitions. Craig G. Vought, formerly Senior Vice President-
Finance, has been named Executive Vice President and Chief Financial Officer.
These changes will enable us to continue to take advantage of the new business
opportunities we see and to effectively finance our future growth.
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
Spieker Properties, Inc.
(Unaudited, in thousands)
| June 30
1995
(unaudited) | December 31
1994
|
|---|
| Assets: |
| Properties | $ 966,732 | $ 870,613 |
| 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, no par value preferred stock, 1,000,000 Shares authorized, issued and outstanding | 23,949 | 23,949 |
|
| Common stock, $.0001 par value, 667,000,000 shares authorized, 26,713,824 and 20,417,513 shares issued and outstanding, respectively | 3 | 2 |
| Class B Common Stock, $.0001 par value, 2,000,000 shares authorized, issued and outstanding |
| Additional paid-in-capital | 178,072 | 210,325 |
| Retained Earnings (Deficit) | ---
| ---
|
|
| Total Stockholder's Equity | 361,587
| 206,304
|
|
| Total Liabilities and Stockholders' Equity | $ 888,628
| $ 809,938
|
Spieker Properties, Inc.
(Unaudited, in thousands)
| Three Months Ended
June 30 | Six Months Ended
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 investments | 8,728
| 6,869
| 17,071
| 13,043
|
| Interest expense, including amort. of discount | 12,052 | 10,862 | 25,021 | 20,903 |
| 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 interest | 6,991
| 3,112
| 11,431
| 6,143
|
|
| Minority interest share of net income | (1,369)
| (662)
| (2,329)
| (1,343)
|
|
| 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
|
Spieker Properties, Inc.
(in thousands, except per share data)
| Three Months Ended
June 30 | Six Months Ended
June 30 |
|---|
| 1995 | 1994 | 1995 | 1994 |
|---|
| Net income before minority interest | $ 6,991
| $ 3,112
| $ 11,431
| $ 6,143
|
| | |
| Add: |
Depreciation and amortization | 7,855 | 7,195 | 15,194 | 14,112 |
Amortization of indebtedness discount and deferred financing costs | 2,455 | 2,476 | 4,974 | 4,609 |
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 outstanding | 33,086
| 26,951
| 30,388
| 26,624
|
(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.
Automatic Dividend Reinvestment Plan
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.
 Spieker Properties Home Page
e-mail: tmellows@spieker.com
|
