[X] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2004 OR |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ |
CRT PROPERTIES, INC.
(Exact name of Registrant as specified in its
Charter)
FLORIDA |
59-2898045 |
|||||
(State or other
jurisdiction of incorporation or organization) |
(I.R.S.
Employer Identification No.) |
|||||
225 NE Mizner Blvd.,
Suite 200 |
||||||
Boca Raton,
Florida |
33432 |
|||||
(Address of principal
executive offices) |
(Zip
code) |
|||||
Registrants
telephone number, including area code: (561) 395-9666 |
||||||
Securities
registered pursuant to Section 12(b) of the Act: |
Title of Each Class |
Name of Exchange on Which Registered |
|||||
---|---|---|---|---|---|---|
1. Common Stock,
Par Value $.01 |
New York Stock Exchange |
|||||
2. Common Stock
Purchase Rights |
New York Stock Exchange |
|||||
3. 8-1/2% Series
A Cumulative Redeemable Preferred Stock, Par Value $.01 |
New York Stock Exchange |
Documents Incorporated by Reference
TABLE OF CONTENTS
Item No. |
Description |
Page No. |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
PART
I |
||||||||||
1. |
BUSINESS |
1 | ||||||||
2. |
PROPERTIES |
13 | ||||||||
3. |
LEGAL PROCEEDINGS |
19 | ||||||||
4. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
19 | ||||||||
PART
II |
||||||||||
5. |
MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES |
19 | ||||||||
6. |
SELECTED FINANCIAL DATA |
22 | ||||||||
7. |
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
23 | ||||||||
7A. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
36 | ||||||||
8. |
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
37 | ||||||||
9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
68 | ||||||||
9A. |
CONTROLS AND PROCEDURES, MANAGEMENT AND INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING |
68 | ||||||||
PART
III |
||||||||||
10. |
DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT |
70 | ||||||||
11. |
EXECUTIVE COMPENSATION |
70 | ||||||||
12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT |
70 | ||||||||
13. |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS |
70 | ||||||||
14. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
70 | ||||||||
PART
IV |
||||||||||
15. |
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
71 |
PART I
Item 1. BUSINESS
General
1
Significant Transactions During 2004 and 2003
Business Strategy
2
Market Focus
Market |
Percent of Rentable Square Footage for the Year Ended 12/31/04 |
|||||
---|---|---|---|---|---|---|
Atlanta,
Georgia |
27.0 | % | ||||
Charlotte,
North Carolina |
6.2 | % | ||||
Dallas,
Texas |
6.3 | % | ||||
Fort
Lauderdale, Florida |
4.1 | % | ||||
Houston,
Texas |
12.2 | % | ||||
Jacksonville, Florida |
12.2 | % | ||||
Memphis,
Tennessee |
4.7 | % | ||||
Orlando,
Florida |
11.4 | % | ||||
Richmond,
Virginia |
1.3 | % | ||||
Rockville,
Maryland |
1.4 | % | ||||
St.
Petersburg, Florida |
5.9 | % | ||||
Tallahassee,
Florida |
7.3 | % | ||||
Total |
100 | % |
Investment Strategy and Policies
3
4
Competition
Corporate Governance
|
On October 1, 2004, we appointed Mr. Peter J. Farrell and Mr. Randall E. Paulson to our Board of Directors. Their appointment brings the number of directors that we have determined to be independent as that term is used in Item 7(d)(3)(iv) of Schedule 14A under the Exchange Act to eight (of a total of nine directors); |
|
On February 26, 2004, our Board of Directors adopted a new Audit Committee Charter, Compensation Committee Charter and Nomination and Corporate Governance Committee Charter; |
|
Our Board of Directors has determined that each member of the Compensation Committee, Audit Committee and Nominating and Corporate Governance Committee is independent as that term is used in Item 7(d)(3)(iv) of Schedule 14A under the Exchange Act; |
|
Our Board of Directors determined that George F. Staudter, the Chairman of our Audit Committee, qualifies as an audit committee financial expert as such term is defined under Item 401 of Regulation S-K; |
|
Our Audit Committee adopted, and our Board of Directors approved on February 26, 2004, our Audit and Non-Audit Services Pre-Approval Policy, which sets forth the procedures and the conditions pursuant to which permissible services to be performed by our independent public accountants may be pre-approved; |
|
On February 26, 2004, our Board of Directors adopted a revised Code of Business Conduct and Ethics, which governs business decisions made and actions taken by our directors, officers and employees; and |
|
Our Board of Directors adopted Corporate Governance Guidelines that sets forth our corporate governance philosophy and the governance policies we have implemented to support that philosophy. |
|
A copy of our Corporate Governance Guidelines, Code of Business Conduct and Ethics and the charters for our Audit, Compensation and Nominating and Corporate Governance Committees are available on our website at http://www.crtproperties.com, under the heading Investor Relations, and subheading Corporate Governance. A copy of this Code is also available in print to any stockholder upon written request addressed to Investor Relations, 225 NE Mizner Blvd., Suite 200, Boca Raton, Florida 33432. |
Forward Looking Statements
5
Managements Discussion and Analysis of Financial Condition and Results of Operations. We caution investors that any forward-looking statements in this report, or which management may make orally or in writing from time to time, are based on managements beliefs and on assumptions made by, and information currently available to, management. When used, the words anticipate, believe, expect, intend, may, might, plan, estimate, project, should, will, result and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you that, while forward-looking statements reflect our good faith beliefs when we make them, they are not guarantees of future performance and are impacted by actual events when they occur after we make such statements. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
|
general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants financial condition, and competition from other developers, owners and operators of real estate); |
|
risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments; |
|
failure to manage effectively our growth and expansion into new markets or to integrate acquisitions successfully; |
|
risks and uncertainties affecting property development and construction (including, without limitation, construction delays, cost overruns, inability to obtain necessary permits and public opposition to such activities); |
|
risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; |
|
costs of compliance with the Americans with Disabilities Act and other similar laws; |
|
potential liability for uninsured losses and environmental contamination; |
|
risks associated with our potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and |
|
risks associated with our dependence on key personnel whose continued service is not guaranteed. |
Risk Factors
6
Risks Related to Real Estate Financing and Investments
We face risks associated with the use of debt to fund acquisitions and developments, including refinancing risk.
An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets.
Policy of limiting debt level may be changed and our indebtedness may increase.
7
We are dependent upon the economic climates of our core markets southeastern United States, Maryland and Texas.
We may face difficulties or delays in renewing leases or re-leasing space.
We are dependent upon the lease revenue from the United States and the State of Florida.
Our business is subject to a number of general real estate investment risks.
8
Our business faces significant competition.
Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs.
Potential liability for environmental contamination could result in substantial costs.
9
We face risks involved in property ownership through partnerships and joint ventures.
10
We face risks associated with the impact of inflation.
We face risks associated with the effect of market interest rates on the price of our common and preferred stock.
Our investment in property development may be more costly than anticipated.
We can make adverse changes in Company policies without shareholder approval.
11
Failure to qualify as a real estate investment trust could cause us to be taxed as a corporation, which would substantially reduce funds available for payment of dividends.
We face possible adverse changes in tax laws.
Our success depends on key personnel whose continued service is not guaranteed.
Further issuances of equity securities may be dilutive to our current shareholders.
12
Item 2. PROPERTIES
General
13
Property Location and Other Information
Office/Project Location |
Number of Buildings |
Weighted Average Age of Buildings (in Years) (1) |
Rentable Sq. Ft. |
Land Improved With Bldgs. (in Acres) |
Unimproved Land (in Acres) |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Atlanta
Atlantic Center Plaza |
1 | 3 | 501,184 | 0.6 | ||||||||||||||||||
Atlanta
Chamblee |
21 | 22 | 1,127,912 | 76.2 | 2.5 | |||||||||||||||||
Atlanta
Gwinnett |
3 | 8 | 262,806 | 15.9 | 5.2 | |||||||||||||||||
Atlanta
McGinnis Park |
2 | 3 | 202,243 | 13.3 | 8.5 | |||||||||||||||||
Atlanta
Perimeter |
1 | 19 | 181,862 | 5.3 | ||||||||||||||||||
Atlanta Three
Ravinia |
1 | 13 | 804,876 | 3.8 | ||||||||||||||||||
Birmingham
Colonnade |
16.5 | |||||||||||||||||||||
Charlotte
University |
2 | 6 | 182,891 | 18.7 | ||||||||||||||||||
Charlotte
Vanguard |
13 | 21 | 527,443 | 39.7 | 17.1 | |||||||||||||||||
Columbia
Spring Valley |
1.0 | |||||||||||||||||||||
Dallas Campus
Circle |
1 | 5 | 127,226 | 8.6 | ||||||||||||||||||
Dallas
Signature Place |
1 | 6 | 437,352 | 10.1 | ||||||||||||||||||
Dallas
Tollway Crossing |
1 | 7 | 152,163 | 6.0 | ||||||||||||||||||
Fort
Lauderdale Las Olas |
2 | 6 | 468,843 | 3.4 | ||||||||||||||||||
Greensboro
Wendover |
9.1 | |||||||||||||||||||||
Greenville
Park Central |
3.5 | |||||||||||||||||||||
Houston Post
Oak |
3 | 24 | 1,201,143 | 11.4 | ||||||||||||||||||
Houston
Westchase Corporate Center |
1 | 5 | 184,259 | 10.0 | ||||||||||||||||||
Jacksonville
Baymeadows |
7 | 12 | 751,138 | 51.1 | ||||||||||||||||||
Jacksonville
Baymeadows Way |
1 | 12 | 224,281 | 6.7 | ||||||||||||||||||
Jacksonville
JTB |
4 | 5 | 416,773 | 32.0 | ||||||||||||||||||
Memphis
Germantown |
6 | 11 | 532,971 | 34.6 | ||||||||||||||||||
Orlando
Central |
21 | 33 | 615,905 | 44.7 | 1.3 | |||||||||||||||||
Orlando Lake
Mary |
2 | 6 | 303,540 | 20.2 | ||||||||||||||||||
Orlando
University |
5 | 10 | 383,816 | 27.1 | ||||||||||||||||||
Richmond
Paragon |
1 | 19 | 145,127 | 8.1 | ||||||||||||||||||
St.
Petersburg |
15 | 21 | 671,398 | 68.7 | 6.7 | |||||||||||||||||
Tallahassee |
19 | 22 | 836,326 | 62.7 | ||||||||||||||||||
Washington
D.C. Decoverly |
2 | 16 | 154,787 | 16.9 | 3.2 | |||||||||||||||||
Total |
136 | 11,398,265 | 595.8 | 74.6 | ||||||||||||||||||
Weighted
Average |
15 |
(1) |
The age of each office building was weighted by the rentable square feet for such office building to determine the weighted average age. |
14
Percent Occupied and Average Rental Rates
Office Project/Location |
Number of Buildings |
Number of Leases |
Rentable Square Feet |
Percent Occupied (1) |
Average Annual Base Rent Per Square Foot (2) |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Atlanta
Atlantic Center Plaza (3) |
1 | 25 | 501,184 | 88 | % | $ | 27.50 | |||||||||||||||
Atlanta
Chamblee |
21 | 101 | 1,127,912 | 88 | % | $ | 18.22 | |||||||||||||||
Atlanta
Gwinnett |
3 | 48 | 262,806 | 90 | % | 19.62 | ||||||||||||||||
Atlanta
McGinnis Park (3) |
2 | 23 | 202,243 | 70 | % | 17.47 | ||||||||||||||||
Atlanta
Perimeter |
1 | 9 | 181,862 | 59 | % | 18.56 | ||||||||||||||||
Atlanta Three
Ravinia (3) |
1 | 18 | 804,876 | 61 | % | 17.66 | (4) | |||||||||||||||
Charlotte
University |
2 | 13 | 182,891 | 60 | % | 18.17 | ||||||||||||||||
Charlotte
Vanguard |
13 | 56 | 527,443 | 57 | % | 15.25 | ||||||||||||||||
Dallas Campus
Circle (3) |
1 | 2 | 127,226 | 89 | % | 22.41 | ||||||||||||||||
Dallas
Signature Place(3) |
1 | 48 | 437,352 | 65 | % | 20.88 | ||||||||||||||||
Dallas
Tollway Crossing (3) |
1 | 4 | 152,163 | 100 | % | 22.10 | ||||||||||||||||
Fort
Lauderdale Las Olas Centre (3) |
2 | 42 | 468,843 | 91 | % | 20.51 | ||||||||||||||||
Houston Post
Oak (3) |
3 | 89 | 1,201,143 | 76 | % | 17.82 | ||||||||||||||||
Houston
Westchase Corporate Center (3) |
1 | 15 | 184,259 | 94 | % | 22.83 | ||||||||||||||||
Jacksonville
Baymeadows |
7 | 27 | 751,138 | 93 | % | 13.55 | (4) | |||||||||||||||
Jacksonville
Baymeadows Way (3) |
1 | 1 | 224,281 | 100 | % | 9.50 | (4) | |||||||||||||||
Jacksonville
JTB |
4 | 7 | 416,773 | 100 | % | 12.91 | (4) | |||||||||||||||
Memphis
Germantown |
6 | 95 | 532,971 | 89 | % | 18.01 | ||||||||||||||||
Orlando
Central |
21 | 129 | 615,905 | 84 | % | 16.69 | ||||||||||||||||
Orlando Lake
Mary |
2 | 20 | 303,540 | 82 | % | 17.23 | ||||||||||||||||
Orlando
University |
5 | 67 | 383,816 | 78 | % | 19.63 | ||||||||||||||||
Richmond
Paragon |
1 | 26 | 145,127 | 96 | % | 19.35 | ||||||||||||||||
St.
Petersburg |
15 | 117 | 671,398 | 90 | % | 16.57 | ||||||||||||||||
Tallahassee |
19 | 54 | 836,326 | 76 | % | 16.76 | ||||||||||||||||
Washington
D.C. Decoverly (3) |
2 | 5 | 154,787 | 93 | % | 24.10 | ||||||||||||||||
Total
(5) |
136 | 1,041 | 11,398,265 |
Weighted
Average Total Company 136 Buildings |
82 | % | $ | 17.93 | ||||||
Weighted
Average Same Store 120 Buildings |
83 | % | $ | 16.75 | ||||||
Weighted
Average Acquisition 16 Buildings |
79 | % | $ | 19.89 |
(1) |
The percent occupied rates have been calculated by dividing total rentable square feet occupied in a building by rentable square feet in such building. |
(2) |
Rental rates are computed by dividing (a) total annualized base rents (which excludes expense pass-throughs and reimbursements) for an office project as of December 31, 2004 by (b) the rentable square feet applicable to such total annualized base rents. |
(3) |
Properties acquired subsequent to January 1, 2002 (the Acquisition properties). |
(4) |
Leases are triple net where tenants pay substantially all operating costs in addition to base rent. |
(5) |
Does not include investment in unconsolidated entity that contains 325,583 of rentable square feet and was 86% occupied at December 31, 2004. |
15
Lease Expirations on the Companys Properties
Period |
Number of Leases Expiring |
Number of Square Feet Expiring |
Percentage of Total Square Feet Leased Represented by Expiring Leases |
Average Annual Rent Per Square Foot Under Expiring Leases |
Total Annualized Rents Under Expiring Leases |
Percentage of Total Annual Rents Represented by Expiring Leases |
||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2005 |
317 | 1,400,439 | 15.1 | % | $ | 17.41 | $ | 24,380,832 | 14.6 | % | ||||||||||||||||
2006 |
207 | 1,363,528 | 14.7 | % | 18.95 | 25,838,064 | 15.5 | % | ||||||||||||||||||
2007 |
189 | 1,126,185 | 12.1 | % | 18.96 | 21,347,664 | 12.8 | % | ||||||||||||||||||
2008 |
105 | 951,924 | 10.2 | % | 18.48 | 17,593,824 | 10.6 | % | ||||||||||||||||||
2009 |
113 | 1,788,203 | 19.2 | % | 17.88 | 31,976,652 | 19.2 | % | ||||||||||||||||||
2010 |
34 | 331,851 | 3.6 | % | 17.37 | 5,764,668 | 3.5 | % | ||||||||||||||||||
2011 |
24 | 344,128 | 3.7 | % | 15.92 | 5,476,848 | 3.3 | % | ||||||||||||||||||
2012 |
20 | 447,962 | 4.8 | % | 18.97 | 8,496,780 | 5.1 | % | ||||||||||||||||||
2013 |
3 | 281,147 | 3.0 | % | 26.65 | 7,491,924 | 4.5 | % | ||||||||||||||||||
Other |
29 | 1,257,837 | 13.6 | % | 14.55 | 18,300,732 | 10.9 | % | ||||||||||||||||||
Total |
1,041 | 9,293,204 | 100.0 | % | $ | 17.93 | $ | 166,667,988 | 100.0 | % |
Building Improvements, Tenant Improvements and Deferred Tenant Costs on the Companys Properties
Building Improvements |
Tenant Improvements |
Deferred Tenant Costs |
|||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Year |
Total |
Per Average Rentable Sq. Ft. Owned |
Total |
Per Average Rentable Sq. Ft. Owned |
Total |
Per Average Rentable Sq. Ft. Owned |
|||||||||||||||||||||||
2002
(1) |
$ | 4,383,000 | $ | 0.69 | $ | 5,156,000 | $ | 0.81 | $ | 1,338,000 | $ | 0.21 | |||||||||||||||||
2003
(2) |
2,332,000 | 0.34 | 9,517,000 | 1.41 | 1,787,000 | 0.26 | |||||||||||||||||||||||
2004
(3) |
3,341,000 | 0.48 | 11,669,000 | 1.68 | 8,565,000 | 1.23 |
(1) |
Excludes the 8 buildings constructed and the 2 properties acquired during 2000, 2001 and 2002. |
(2) |
Excludes the 2 buildings constructed and the 5 properties acquired during 2001, 2002 and 2003. |
(3) |
Excludes 11 properties acquired during 2002, 2003 and 2004. Amounts include $4.8 million of deferred tenant costs related to a 15-year lease with the State of Florida. |
16
Top 10 Tenants by Square Feet
Tenant |
Square Feet |
% of Portfolio |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 |
U.S. Government |
934,517 | 10.1 | % | ||||||||||
2 |
State of Florida |
680,520 | 7.3 | % | ||||||||||
3 |
Blue Cross and Blue Shield |
563,057 | 6.1 | % | ||||||||||
4 |
Bechtel Corporation |
371,021 | 4.0 | % | ||||||||||
5 |
Six Continents Hotels |
309,641 | 3.3 | % | ||||||||||
6 |
Alston & Bird |
229,394 | 2.5 | % | ||||||||||
7 |
Landstar System Holdings |
176,000 | 1.9 | % | ||||||||||
8 |
CitiFinancial |
159,827 | 1.7 | % | ||||||||||
9 |
Cigna General Life Insurance |
107,380 | 1.2 | % | ||||||||||
10 |
Spirent |
104,583 | 1.1 | % | ||||||||||
Total % of portfolio square feet |
39.2 | % | ||||||||||||
Total % of portfolio revenue |
38.4 | % |
17
Fixed Rate Indebtedness on the Companys Properties
Office Project |
Mortgage Loan Balance |
Weighted Average Interest Rate |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
Atlanta
Chamblee |
$ | | | |||||||
Atlanta
Gwinnett |
10,388 | 8.33 | % | |||||||
Atlanta
McGinnis Park |
978 | 8.00 | % | |||||||
Atlanta
Perimeter |
6,711 | 8.19 | % | |||||||
Atlanta Three
Ravinia |
85,000 | 5.26 | % | |||||||
Atlanta
Atlantic Center Plaza |
| | ||||||||
Charlotte
University |
| | ||||||||
Charlotte
Vanguard |
18,157 | 8.20 | % | |||||||
Dallas Campus
Circle |
| | ||||||||
Dallas
Tollway Crossing |
| | ||||||||
Dallas
Signature Place |
| | ||||||||
Fort
Lauderdale Las Olas |
98,980 | 5.32 | % | |||||||
Houston Post
Oak |
| | ||||||||
Houston
Westchase Corporate Center |
15,190 | 5.39 | % | |||||||
Jacksonville
Baymeadows |
31,524 | 8.33 | % | |||||||
Jacksonville
Baymeadows Way |
13,800 | 5.55 | % | |||||||
Jacksonville
JTB |
16,228 | 8.26 | % | |||||||
Memphis
Germantown |
22,684 | 7.10 | % | |||||||
Orlando
Central |
24,542 | 8.26 | % | |||||||
Orlando Lake
Mary |
11,908 | 8.26 | % | |||||||
Orlando
University |
19,390 | 7.25 | % | |||||||
Richmond
Paragon |
| | ||||||||
St.
Petersburg |
25,887 | 8.26 | % | |||||||
Tallahassee |
36,300 | 8.10 | % | |||||||
Washington,
D.C. Decoverly |
| | ||||||||
Total |
$ | 437,667 | 6.71 | % |
18
Indebtedness with Variable Interest Rates
Year Ended December 31 |
Balance at End of Period |
Weighted Average Int. Rate at End of Period |
Maximum Amount Outstanding |
Average Amount Outstanding |
Weighted Ave. Int. Rate During the Year |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 |
$ | 185,800 | (1) | 4.5 | % | $ | 248,874 | $ | 167,034 | 3.7 | % | |||||||||||
2003 |
93,468 | 4.2 | % | 122,499 | 102,600 | 4.0 | % | |||||||||||||||
2002 |
104,509 | 4.2 | % | 192,509 | 75,498 | 4.1 | % |
(1) |
Included in this amount is an $80.0 million loan (3.88% as of December 31, 2004) which will convert into a fixed interest rate loan on January 1, 2005 at 5.49% for 10 years. |
Item 3. LEGAL PROCEEDINGS
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
PART II
Item 5. | MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER REPURCHASES OF EQUITY SECURITIES |
Quarter Ended |
High |
Low |
Distributions |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
December 31,
2004 |
$ | 25.00 | $ | 21.53 | $ | 0.35 | ||||||||
September 30,
2004 |
24.02 | 21.05 | 0.35 | |||||||||||
June 30,
2004 |
23.64 | 20.07 | 0.35 | |||||||||||
March 31,
2004 |
24.30 | 20.45 | 0.35 | |||||||||||
December 31,
2003 |
21.60 | 18.90 | 0.35 | |||||||||||
September 30,
2003 |
18.88 | 16.75 | 0.35 | |||||||||||
June 30,
2003 |
17.60 | 15.48 | 0.35 | |||||||||||
March 31,
2003 |
16.10 | 15.00 | 0.35 |
19
Long-Term Incentive Compensation Plan
20
INFORMATION ABOUT OUTSTANDING STOCK OPTIONS
Plan Category |
Issued upon Exercise of Outstanding Options |
Exercise Price of Outstanding Options |
Remaining Available for Future Issuance |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Equity
Compensation Plans Approved by Stockholders |
372,380 | $ | 21.24 | 1,161,200 | ||||||||||
Equity
Compensation Plans Not Approved by Stockholders |
1,345,398 | (1) | 17.37 | 325,406 | (2) | |||||||||
Total |
1,717,778 | $ | 18.21 | 1,486,606 |
(1) |
Includes the following options, all of which were granted at an exercise price equal to the closing market price on the date of grant with a term of ten years: |
(a) |
Options to purchase 1,225,000 shares granted to certain current and former employees in connection with their initial employment with the Company. These grants are summarized as follows: |
Officer |
Title |
Number of Options |
Exercise Price |
Date of Grant |
Vesting |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Thomas J.
Crocker |
Chief
Executive Officer |
700,000 | $ | 16.0625 | February 17, 2000 |
100 | % | |||||||||||||||
Thomas C.
Brockwell |
Senior Vice President |
200,000 | 17.5625 | June
14, 2000 |
100 | % | ||||||||||||||||
Christopher L.
Becker |
Senior Vice President |
200,000 | 17.5625 | June
14, 2000 |
100 | % | ||||||||||||||||
David B.
Hiley |
Former Chief Financial Officer |
125,000 | 22.8125 | February 18, 1998 |
100 | % |
(b) |
Options to purchase 8,998 shares granted to employees other than those listed above. |
(c) |
Options to purchase 44,000 shares granted in 1997 to the then outside directors. These grants are summarized as follows: |
Title |
Number of Options |
Exercise Price |
Date of Grant |
Vesting |
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
D. Pike
Aloian |
Director |
4,000 | $ | 19.8125 | August 19, 1997 |
100 | % | |||||||||||||||
Benjamin C.
Bishop, Jr. |
Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
Irvin H.
Davis |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
David B.
Hiley |
Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
John R.S.
Jacobsson |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
G. Christian
Lantzsch |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
William L.
Mack |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
Lee S.
Neibart |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
Edward
Scheetz |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
George F.
Staudter |
Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % | ||||||||||||||||
S.D.
Stoneburner |
Former Director |
4,000 | 19.8125 | August 19, 1997 |
100 | % |
(d) |
Options to purchase 42,400 shares granted pursuant to a non-statutory stock option plan available to all employees of the Company. |
(e) |
Options to purchase 25,000 shares granted to the Companys assistant secretary. Harold F. McCart, Jr. was granted this option on May 19, 1998 at an exercise price of $21.25. This option is fully vested. |
(2) | Includes the following options available for grant at an exercise price equal to at least the closing market price on the date of grant for a term not to exceed ten years: |
(a) |
Options to purchase up to 119,706 shares available for grant pursuant to an option plan available to employees other than those listed above. |
(b) |
Options to purchase up to 205,700 shares available for grant pursuant to a non-statutory stock option plan available for all employees of the Company. |
21
Item 6. SELECTED FINANCIAL DATA
(In thousands except per share and property data) |
|||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 |
2003 |
2002 |
2001 |
2000 |
|||||||||||||||||||
Income
Information |
|||||||||||||||||||||||
Rental
revenues and other rental services |
$ | 166,868 | $ | 146,076 | $ | 126,404 | $ | 165,623 | $ | 164,733 | |||||||||||||
Total
operating revenues |
167,227 | 146,407 | 129,751 | 169,703 | 166,526 | ||||||||||||||||||
Property
operations expense |
65,140 | 57,381 | 46,235 | 61,608 | 61,868 | ||||||||||||||||||
Depreciation
and amortization |
41,628 | 32,687 | 27,908 | 35,099 | 34,244 | ||||||||||||||||||
Interest
income |
407 | 307 | 405 | 776 | 700 | ||||||||||||||||||
Mortgage and
loan interest |
32,242 | 29,249 | 25,145 | 26,112 | 28,157 | ||||||||||||||||||
General and
administrative expense |
13,052 | 11,138 | 11,381 | 8,412 | 20,217 | ||||||||||||||||||
Net income
available to common shareholders |
9,550 | 14,696 | 16,423 | 73,223 | 27,153 | ||||||||||||||||||
Earnings per
share diluted |
0.35 | 0.69 | 0.77 | 2.75 | 1.01 | ||||||||||||||||||
Dividends
declared per common share |
1.40 | 1.40 | 1.40 | 3.14 | 1.40 | ||||||||||||||||||
Dividends
declared per preferred share |
2.125 | .56666 | (1) | | | | |||||||||||||||||
Weighted
average shares outstanding diluted |
27,137 | 21,448 | 21,378 | 26,610 | 26,962 | ||||||||||||||||||
Balance
Sheet Information |
|||||||||||||||||||||||
Operating
properties (before accumulated depreciation) |
$ | 1,356,393 | $ | 962,002 | $ | 897,158 | $ | 663,286 | $ | 946,780 | |||||||||||||
Undeveloped
land |
14,628 | 14,016 | 13,826 | 13,855 | 13,975 | ||||||||||||||||||
Total
assets |
1,284,266 | 848,201 | 805,085 | 690,585 | 851,022 | ||||||||||||||||||
Mortgages and
loans payable |
623,467 | 408,716 | 431,698 | 248,683 | 343,287 | ||||||||||||||||||
Total
shareholders equity |
593,959 | 402,975 | 343,068 | 354,542 | 448,493 | ||||||||||||||||||
Other
Information |
|||||||||||||||||||||||
FFO available
to common shareholders (2) |
$ | 50,911 | $ | 46,479 | $ | 43,855 | $ | 69,681 | $ | 56,159 | |||||||||||||
Number of
buildings (at end of period) |
136 | 128 | 124 | 120 | 194 | ||||||||||||||||||
Percent
occupied (at end of period) |
82 | % | 81 | % | 84 | % | 90 | % | 90 | % |
(1) |
This preferred stock was issued on September 10, 2003 and the 2003 dividend covers the five-day period from September 10, 2003 through September 14, 2003, and the quarter beginning September 15, 2003 through December 14, 2003. |
(2) |
Funds from Operations (FFO) is a non-GAAP financial measure that is a widely used performance measure for real estate companies and is provided as a supplemental measure of operating performance. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. The National Association of Real Estate Investment Trusts (NAREIT) adopted the definition of FFO in order to promote an industry standard measure of REIT financial and operating performance. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. NAREIT defines FFO as net income (loss) (computed in accordance with generally accepted accounting principles (GAAP), excluding gains (losses) from sales of property, plus depreciation and amortization of real estate assets and after adjustments for unconsolidated partnerships and joint ventures. |
22
Item 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
General
23
Recent Developments
24
Critical Accounting Policies and Estimates
25
Depreciation. Depreciation of buildings and parking garages is computed using the straight-line method over an estimated useful life of 3 to 39 years. Depreciation of building improvements is computed using the straight-line method over the estimated useful life of the improvement. Tenant improvements are generally amortized over the term of the respective leases. If the Company were to incorrectly estimate the useful lives of its operating properties, it may be required to adjust future depreciation expense. Therefore, a change in the estimated useful lives assigned to buildings and improvements would result in either an increase or decrease in depreciation expense, which would result in an increase or decrease in net income. |
26
Results of Operations
Center Name |
Date of Acquisition |
Total 2004 Rental Revenues |
Total 2003 Rental Revenues |
Variance |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Atlantic
Center Plaza |
January 27, 2004 |
$ | 13,672 | $ | | $ | 13,672 | |||||||||||
Decoverly |
April 2, 2004 |
4,065 | | 4,065 | ||||||||||||||
Tollway
Crossing |
September 11, 2003 |
4,094 | 1,183 | 2,911 | ||||||||||||||
McGinnis
Park |
December 30, 2003 |
2,179 | | 2,179 | ||||||||||||||
Campus
Circle |
September 11, 2003 |
3,000 | 1,162 | 1,838 | ||||||||||||||
Westchase
Corporate Center |
August 16, 2004 |
1,700 | | 1,700 | ||||||||||||||
Las Olas
Centre |
November 24, 2004 |
1,473 | | 1,473 | ||||||||||||||
Baymeadows
Way |
July
23, 2004 |
1,101 | | 1,101 | ||||||||||||||
Total |
$ | 31,284 | $ | 2,345 | $ | 28,939 |
27
Liquidity and Capital Resources
General
|
fund normal recurring expenses; |
|
meet debt service requirements including the repayment or refinancing of $83.1 million of indebtedness that matures within the twelve month period; |
|
fund capital expenditures, including tenant improvements and leasing costs; |
|
fund current development costs not covered under construction loans; and |
28
|
make the distributions required to maintain our REIT qualification under the Internal Revenue Code of 1986, as amended. |
|
construction loans; |
|
long-term secured and unsecured indebtedness; |
|
income from operations; |
|
joint ventures; |
|
sales of real estate; |
|
issuances of additional common and preferred stock; and |
|
our secured revolving line of credit or other credit facilities. |
Cash Flow Summary
Years ended December 31, |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2004 |
2003 |
Increase (Decrease) |
|||||||||||||
(in thousands) |
|||||||||||||||
Net cash
provided by operating activities |
$ | 49,224 | $ | 46,034 | $ | 3,190 | |||||||||
Net cash used
in investing activities |
$ | (349,850 | ) | $ | (66,804 | ) | $ | (283,046 | ) | ||||||
Net cash
provided by financing activities |
$ | 324,180 | $ | 25,306 | $ | 298,874 |
29
for Federal income tax purposes, the Company is required to pay out annually, as dividends, at least 90 percent of its REIT taxable income. In the past, the Company has paid out dividends in amounts at least equal to its REIT taxable income. The Company believes that its cash provided by operating activities and its current cash balance will be sufficient to cover debt service payments and to pay the dividends required to maintain its REIT status.
30
31
32
Debt and Equity Financings
33
Contractual Obligations
(In thousands)
Total |
Less than One Year |
13 Years |
35 Years |
More than Five Years |
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Long-Term
Debt Obligations (a) |
$ | 623,467 | $ | 83,067 | (c) | $ | 121,822 | $ | 210,753 | $ | 207,825 | |||||||||||
Purchase
Obligations (b) |
14,302 | 14,302 | | | |
(a) |
Increases in interest rates on variable rate debt could increase the Companys interest expense and adversely affect cash flow and the ability to pay dividends to shareholders. The Company may be required to purchase interest rate protection products in connection with future variable rate debt, which may further increase borrowing costs. The Companys use of leverage can adversely impact its operations, cash flow, and ability to make distributions and its financial condition will be negatively impacted if it cannot repay or refinance its indebtedness as it becomes due. The Company is subject to risks normally associated with debt financing, including: the risk that its cash flow will be insufficient to meet required payments of principal and interest; the risk that the existing debt with respect to its properties, which in most cases will not have been fully amortized at maturity, will not be able to be refinanced; and the risk that the terms of any refinancing of any existing debt will not be as favorable as the terms of the existing debt. |
(b) |
These amounts represent tenant improvement allowance obligations for leases in place as of December 31, 2004 ($13,655,000), as well as a contractual commitment related to the renovation of The Lakes on Post Oak in Houston, Texas ($647,000). In connection with the loan of the Lakes on Post Oak, the Company obtained a $1,705,000 letter of credit in lieu of additional cash escrows for tenant improvements and leasing commissions. |
(c) |
$77 million of this variable interest rate debt was refinanced on February 9, 2005, and has a new maturity date of March 1, 2010. |
Mortgage |
As of December 31, 2004 |
As of December 31, 2003 |
Current Interest Rate |
Maturity Date |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Variable rate
mortgages (a) |
$ | 185,800 | $ | 93,468 | 3.88% to 5.27 | % | 12/09/05 to 01/01/15 | |||||||||||
Fixed rate
mortgages |
437,667 | 315,248 | 5.26% to 8.33 | % | 12/01/06 to 12/11/14 | |||||||||||||
Total
mortgage notes payable |
$ | 623,467 | $ | 408,716 |
(a) |
Effective January 1, 2005, $80,000,000 of the variable rate mortgages was to be converted to a 5.49% fixed rate mortgage which has a maturity of January 1, 2015. |
Off-Balance Sheet Arrangements
34
Funds from Operations
35
2004 |
2003 |
2002 |
2001 |
2000 |
||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net
income |
$ | 15,902 | $ | 16,691 | $ | 16,423 | $ | 73,223 | $ | 27,153 | ||||||||||||
Dividends on
preferred stock |
(6,352 | ) | (1,995 | ) | | | | |||||||||||||||
Depreciation
real estate |
36,610 | 29,546 | 25,889 | 32,261 | 31,720 | |||||||||||||||||
Depreciation
unconsolidated entity |
447 | | | | | |||||||||||||||||
Amortization
deferred tenant costs |
2,576 | 1,700 | 1,523 | 2,172 | 1,923 | |||||||||||||||||
Amortization
goodwill |
| | | 170 | 170 | |||||||||||||||||
Minority
interest (net of add-backs) |
62 | | 20 | 1,044 | 1,156 | |||||||||||||||||
Amortization
fair value of acquired leases |
1,666 | 537 | | | | |||||||||||||||||
Gain on sale
or disposition of operating properties |
| | | (39,189 | ) | (5,963 | ) | |||||||||||||||
FFO available
to common shareholders |
$ | 50,911 | $ | 46,479 | $ | 43,855 | $ | 69,681 | $ | 56,159 |
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
36
Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT
SCHEDULES
Page No. |
||||||
---|---|---|---|---|---|---|
Report of
Independent Registered Public Accounting Firm |
38 |
|||||
Consolidated
Financial Statements: Consolidated Balance Sheets as of December 31, 2004 and 2003 |
39 |
|||||
Consolidated
Statements of Operations for Each of the Three Years in the Period Ended December 31, 2004 |
40 |
|||||
Consolidated
Statements of Changes in Shareholders Equity for Each of the Three Years in the Period Ended December 31, 2004 |
41 |
|||||
Consolidated
Statements of Cash Flows for Each of the Three Years in the Period Ended December 31, 2004 |
42 |
|||||
Notes to
Consolidated Financial Statements for Each of the Three Years in the Period Ended December 31, 2004 |
43 |
|||||
Financial
Statement Schedules: Schedule II Valuation and Qualifying Accounts for the Three Years Ended December 31, 2004 |
65 |
|||||
Schedule III
Real Estate and Accumulated Depreciation as of December 31, 2004 |
6667 |
37
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
38
2004 |
2003 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
ASSETS |
||||||||||
Real estate
investments: |
||||||||||
Operating
properties: |
||||||||||
Land |
$ | 162,988 | $ | 119,973 | ||||||
Buildings |
1,189,658 | 838,430 | ||||||||
Furniture and
equipment |
3,747 | 3,599 | ||||||||
Accumulated
depreciation |
(215,587 | ) | (179,569 | ) | ||||||
Operating
properties net |
1,140,806 | 782,433 | ||||||||
Undeveloped
land held for investment |
14,628 | 10,975 | ||||||||
Undeveloped
land held for sale |
| 3,041 | ||||||||
Cash and cash
equivalents |
32,717 | 9,163 | ||||||||
Restricted
cash |
15,964 | 11,114 | ||||||||
Accounts
receivable, net of allowance for uncollectible accounts of $1,169 and $939 |
22,957 | 16,236 | ||||||||
Investment in
unconsolidated entity |
3,217 | | ||||||||
Other
assets |
53,977 | 15,239 | ||||||||
TOTAL
ASSETS |
$ | 1,284,266 | $ | 848,201 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||
Liabilities: |
||||||||||
Mortgages and
loans payable |
$ | 623,467 | $ | 408,716 | ||||||
Accounts
payable |
8,584 | 4,299 | ||||||||
Accrued real
estate taxes payable |
2,414 | 1,853 | ||||||||
Accrued
liabilities other |
24,259 | 11,016 | ||||||||
Dividends
payable |
11,365 | 7,824 | ||||||||
Advance rents
and security deposits |
9,039 | 6,846 | ||||||||
Total
Liabilities |
679,128 | 440,554 | ||||||||
Minority
interest |
11,179 | 4,672 | ||||||||
Commitments
and contingencies (Notes 3 and 10) |
| | ||||||||
Shareholders equity: |
||||||||||
Preferred
stock, $.01 par value; 50,000,000 shares authorized; liquidation preference of $25 per share; 2,990,000 shares issued and outstanding |
30 | 30 | ||||||||
Common stock,
$.01 par value; 100,000,000 shares authorized; issued: 40,115,540 and 30,011,225 shares; outstanding: 31,614,502 and 21,495,956
shares |
401 | 300 | ||||||||
Capital in
excess of par value |
762,642 | 546,968 | ||||||||
Notes
receivable from stock sales to related parties |
| (5,092 | ) | |||||||
Accumulated
other comprehensive loss |
(536 | ) | (241 | ) | ||||||
Dividends in
excess of net income |
(37,110 | ) | (7,405 | ) | ||||||
Treasury
stock, at cost; 8,501,038 and 8,515,269 shares |
(131,468 | ) | (131,585 | ) | ||||||
Total
Shareholders Equity |
593,959 | 402,975 | ||||||||
TOTAL
LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 1,284,266 | $ | 848,201 |
See Notes to Consolidated Financial Statements.
39
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues |
||||||||||||||
Rental and
other rental services |
$ | 166,868 | $ | 146,076 | $ | 126,404 | ||||||||
Management
fees |
359 | 331 | 3,347 | |||||||||||
Total
operating revenues |
167,227 | 146,407 | 129,751 | |||||||||||
Expenses |
||||||||||||||
Property
operations |
65,140 | 57,381 | 46,235 | |||||||||||
Depreciation
and amortization |
41,628 | 32,687 | 27,908 | |||||||||||
General and
administrative |
13,052 | 11,138 | 11,381 | |||||||||||
Direct cost
of management fees |
| 88 | 3,335 | |||||||||||
Other |
169 | 147 | 143 | |||||||||||
Total
operating expenses |
119,989 | 101,441 | 89,002 | |||||||||||
Operating
Income |
47,238 | 44,966 | 40,749 | |||||||||||
Other
Income (Expense) |
||||||||||||||
Interest
income |
407 | 307 | 405 | |||||||||||
Mortgage and
loan interest |
(32,242 | ) | (29,249 | ) | (25,145 | ) | ||||||||
Total other
income (expense) |
(31,835 | ) | (28,942 | ) | (24,740 | ) | ||||||||
Income
Before Gain on Sale or Disposition of Assets, Income Taxes and Minority Interest and Equity in Earnings of Unconsolidated Subsidiary
|
15,403 | 16,024 | 16,009 | |||||||||||
Gain on sale
or disposition of assets |
211 | 573 | 21 | |||||||||||
Income
Before Income Taxes and Minority Interest and Equity in Earnings of Unconsolidated Subsidiary |
15,614 | 16,597 | 16,030 | |||||||||||
Income tax
benefit |
| 94 | 413 | |||||||||||
Income
Before Minority Interest and Equity in Earnings of Unconsolidated Subsidiary |
15,614 | 16,691 | 16,443 | |||||||||||
Minority
interest |
(124 | ) | | (20 | ) | |||||||||
Equity in
earnings of unconsolidated subsidiary |
412 | | | |||||||||||
Net Income
|
15,902 | 16,691 | 16,423 | |||||||||||
Dividends on
preferred stock |
(6,352 | ) | (1,995 | ) | | |||||||||
Net Income
Available to Common Shareholders |
$ | 9,550 | $ | 14,696 | $ | 16,423 | ||||||||
Earnings Per Share Available to Common Shareholders: |
||||||||||||||
Basic |
$ | 0.36 | $ | 0.69 | $ | 0.77 | ||||||||
Diluted |
$ | 0.35 | $ | 0.69 | $ | 0.77 | ||||||||
Weighted
Average Shares: |
||||||||||||||
Basic |
26,792 | 21,337 | 21,269 | |||||||||||
Diluted |
27,137 | 21,448 | 21,378 |
See Notes to Consolidated Financial Statements.
40
Preferred Stock |
Common Stock |
Capital in Excess |
Notes Receivable |
Accum. Other |
Retained Earnings (Dividends in Excess |
Total | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares Issued |
Par Value |
Shares Issued |
Par Value |
of Par Value |
from Stock Sales |
Comp. Loss |
of Net Income) |
Treasury Stock |
Shareholders Equity |
|||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2001 |
| $ |
29,663 |
$297 |
$469,779 |
$(5,066) |
$ |
$ 21,180 |
$(131,648) |
$354,542 |
||||||||||||||||||||||||||||||||
Common stock
sold |
145 |
430 |
575 |
|||||||||||||||||||||||||||||||||||||||
Stock loans to related
parties |
(200) |
(200) |
||||||||||||||||||||||||||||||||||||||||
Treasury stock
purchased |
(503) |
(503) |
||||||||||||||||||||||||||||||||||||||||
Options
exercised |
163 |
1 |
2,232 |
2,233 |
||||||||||||||||||||||||||||||||||||||
Unrecognized loss on
defined benefit plan |
(212) |
(212) |
||||||||||||||||||||||||||||||||||||||||
Dividends
declared |
(29,790) |
(29,790) |
||||||||||||||||||||||||||||||||||||||||
Net
income |
16,423 |
16,423 |
||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2002 |
29,826 |
298 |
472,156 |
(5,266) |
(212) |
7,813 |
(131,721) |
343,068 |
||||||||||||||||||||||||||||||||||
Preferred stock
issued |
2,990 | 30 |
72,079 |
72,109 |
||||||||||||||||||||||||||||||||||||||
Common stock
sold |
147 |
136 |
283 |
|||||||||||||||||||||||||||||||||||||||
Unrecognized loss on
defined benefit plan |
(29) |
(29) |
||||||||||||||||||||||||||||||||||||||||
Options
exercised |
185 |
2 |
2,586 |
2,588 |
||||||||||||||||||||||||||||||||||||||
Stock loan
repayments |
174 |
174 |
||||||||||||||||||||||||||||||||||||||||
Dividends
declared |
(31,909) |
(31,909) |
||||||||||||||||||||||||||||||||||||||||
Net
income |
16,691 |
16,691 |
||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2003 |
2,990 | 30 |
30,011 |
300 |
546,968 |
(5,092) |
(241) |
(7,405) |
(131,585) |
402,975 |
||||||||||||||||||||||||||||||||
Common stock
sold |
9,924 |
99 |
212,753 |
117 |
212,969 |
|||||||||||||||||||||||||||||||||||||
Unrecognized loss on
defined benefit plan |
(295) |
(295) |
||||||||||||||||||||||||||||||||||||||||
Options
exercised |
180 |
2 |
2,921 |
2,923 |
||||||||||||||||||||||||||||||||||||||
Stock loan
repayments |
5,092 |
5,092 |
||||||||||||||||||||||||||||||||||||||||
Dividends
declared |
(45,607) |
(45,607) |
||||||||||||||||||||||||||||||||||||||||
Net
income |
15,902 |
15,902 |
||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2004 |
2,990 | $30 |
40,115 |
$401 |
$762,642 |
$ |
$(536) |
$(37,110) |
$(131,468) |
$593,959 |
See Notes to Consolidated Financial Statements.
41
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Operating
Activities |
||||||||||||||
Net
income |
$ | 15,902 | $ | 16,691 | $ | 16,423 | ||||||||
Adjustments
to reconcile net income to net cash provided by operating activities: |
||||||||||||||
Equity in
earnings of unconsolidated entity |
(412 | ) | | | ||||||||||
Depreciation
and amortization |
41,628 | 32,687 | 27,908 | |||||||||||
Amortization
of deferred loan costs |
1,669 | 1,465 | 1,894 | |||||||||||
Provision for
uncollectible accounts |
447 | 476 | 445 | |||||||||||
Minority
interest |
124 | | 20 | |||||||||||
Gain on sale
or disposition of assets |
(211 | ) | (573 | ) | (21 | ) | ||||||||
Changes in
assets and liabilities: |
||||||||||||||
Increase in
accounts receivable and other assets |
(29,908 | ) | (5,831 | ) | (2,338 | ) | ||||||||
Increase in
accounts payable, accrued liabilities and other liabilities |
19,985 | 1,119 | 2,376 | |||||||||||
Net cash
provided by operating activities |
49,224 | 46,034 | 46,707 | |||||||||||
Investing
Activities |
||||||||||||||
Proceeds from
sales of non-operating assets |
3,250 | 1,580 | 81 | |||||||||||
Decrease
(increase) in restricted cash |
(4,850 | ) | 2,226 | (13,340 | ) | |||||||||
Purchase of
limited partner interests |
| | (16,465 | ) | ||||||||||
Investment in
unconsolidated entity |
(3,466 | ) | | | ||||||||||
Dividends
from unconsolidated entity |
661 | | | |||||||||||
Property
acquisitions |
(302,536 | ) | (52,896 | ) | (228,299 | ) | ||||||||
Tenant
improvements to first generation space |
(10,912 | ) | (5,180 | ) | (1,479 | ) | ||||||||
Tenant
improvements to second generation space |
(7,035 | ) | (4,660 | ) | (5,207 | ) | ||||||||
Building
improvements |
(13,237 | ) | (5,445 | ) | (4,907 | ) | ||||||||
Deferred
tenant costs |
(11,577 | ) | (2,150 | ) | (1,951 | ) | ||||||||
Additions to
furniture and equipment |
(148 | ) | (279 | ) | (272 | ) | ||||||||
Net cash
used in investing activities |
(349,850 | ) | (66,804 | ) | (271,839 | ) | ||||||||
Financing
Activities |
||||||||||||||
Proceeds from
mortgages and loans |
267,396 | 51,978 | 250,000 | |||||||||||
Proceeds from
issuance of preferred stock |
| 72,109 | | |||||||||||
Proceeds from
sales of common stock |
212,969 | 283 | 575 | |||||||||||
Proceeds from
exercise of stock options |
2,923 | 2,588 | 2,233 | |||||||||||
Decrease
(increase) in notes receivable from related parties |
5,092 | 174 | (200 | ) | ||||||||||
Principal
payments on mortgages and loans |
(128,519 | ) | (74,960 | ) | (66,985 | ) | ||||||||
Dividends
paid |
(42,064 | ) | (31,538 | ) | (66,495 | ) | ||||||||
Distributions
paid to minority interest holders |
(144 | ) | | (398 | ) | |||||||||
Treasury
stock purchased |
| | (503 | ) | ||||||||||
Contributions
from minority interest |
6,527 | 4,672 | | |||||||||||
Financing
costs |
| | (1,838 | ) | ||||||||||
Net cash
provided by financing activities |
324,180 | 25,306 | 116,389 | |||||||||||
Net increase
(decrease) in cash and cash equivalents |
23,554 | 4,536 | (108,743 | ) | ||||||||||
Cash and cash
equivalents beginning of year |
9,163 | 4,627 | 113,370 | |||||||||||
Cash and cash
equivalents end of year |
$ | 32,717 | $ | 9,163 | $ | 4,627 |
See Notes to Consolidated Financial Statements.
42
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
43
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EARNINGS PER
COMMON AND DILUTIVE POTENTIAL COMMON SHARE: |
||||||||||||||
Net income
available to common shareholders |
$ | 9,550 | $ | 14,696 | $ | 16,423 | ||||||||
Shares: |
||||||||||||||
Weighted
average number of common shares outstanding Basic |
26,792 | 21,337 | 21,269 | |||||||||||
EARNINGS PER
SHARE BASIC |
$ | 0.36 | $ | 0.69 | $ | 0.77 | ||||||||
Shares: |
||||||||||||||
Weighted
average number of common shares outstanding Basic |
26,792 | 21,337 | 21,269 | |||||||||||
Effect of
dilutive securities (a): |
||||||||||||||
Stock
options |
345 | 111 | 109 | |||||||||||
Adjusted
common shares Diluted |
27,137 | 21,448 | 21,378 | |||||||||||
EARNINGS PER
SHARE DILUTED |
$ | 0.35 | $ | 0.69 | $ | 0.77 |
(a) |
Shares issuable were derived using the Treasury Stock Method for all dilutive potential shares. As of December 31, 2004, the Company excluded approximately 125,000 antidilutive stock options from the above calculation. |
44
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
45
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
46
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net income
available to common shareholders As reported |
$ | 9,550,000 | $ | 14,696,000 | $ | 16,423,000 | ||||||||
Stock-based
employee compensation expense determined under fair value method for all forfeitures (awards) |
90,000 | (2,446,000 | ) | (1,284,000 | ) | |||||||||
Pro forma net
income available to common shareholders |
$ | 9,640,000 | $ | 12,250,000 | $ | 15,139,000 | ||||||||
EARNINGS PER SHARE: |
||||||||||||||
Basic
as reported |
$ | 0.36 | $ | 0.69 | $ | 0.77 | ||||||||
Basic
pro forma |
$ | 0.36 | $ | 0.57 | $ | 0.71 | ||||||||
Diluted
as reported |
$ | 0.35 | $ | 0.69 | $ | 0.77 | ||||||||
Diluted
pro forma |
$ | 0.36 | $ | 0.57 | $ | 0.72 |
47
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
Initial Cost |
Accumulated Amortization |
Net Carrying Value of in-place leases |
Weighted Average Amortization Period (in years) |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Three
Ravinia |
$ | 274 | $ | (144 | ) | $ | 130 | 5.5 | ||||||||||
The Lakes on
Post Oak |
1,500 | (781 | ) | 719 | 4 | |||||||||||||
Campus Circle
& Tollway Crossing |
500 | (161 | ) | 339 | 4 | |||||||||||||
Baymeadows
Way |
242 | (10 | ) | 232 | 10 | |||||||||||||
Decoverly |
654 | (164 | ) | 490 | 3 | |||||||||||||
Atlantic
Center Plaza |
9,400 | (861 | ) | 8,539 | 10 | |||||||||||||
McGinnis
Park |
329 | (83 | ) | 246 | 4 | |||||||||||||
Total |
$ | 12,899 | $ | (2,204 | ) | $ | 10,695 |
New Accounting Standards.
48
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
49
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
1. SUMMARY OF ACCOUNTING POLICIES AND ESTIMATES
(Continued)
2. TRANSACTIONS WITH RELATED PARTIES
50
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
2. TRANSACTIONS WITH RELATED PARTIES (Continued)
3. MORTGAGES AND LOANS PAYABLE
51
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
3. MORTGAGES AND LOANS PAYABLE (Continued)
52
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
3. MORTGAGES AND LOANS PAYABLE (Continued)
Year Ending December 31, |
Amount (In thousands) |
|||||
---|---|---|---|---|---|---|
2005 |
$ | 83,067 | ||||
2006 |
23,657 | |||||
2007 |
98,165 | |||||
2008 |
118,226 | |||||
2009 |
92,527 | |||||
Subsequent
Years |
207,825 | |||||
Total |
$ | 623,467 |
4. LEASES
Year Ending December 31, |
Amount (In thousands) |
|||||
---|---|---|---|---|---|---|
2005 |
$ | 192,421 | ||||
2006 |
168,467 | |||||
2007 |
134,862 | |||||
2008 |
112,439 | |||||
2009 |
79,903 | |||||
Subsequent
Years |
564,293 | |||||
Total |
$ | 1,252,385 |
53
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
5. STOCK OPTIONS AND RIGHTS
2004 |
2003 |
2002 |
|||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Options |
Weighted Average Exercise Price |
Options |
Weighted Average Exercise Price |
Options |
Weighted Average Exercise Price |
||||||||||||||||||||||
Outstanding
beginning of year |
1,919,414 | $ | 18.01 | 2,154,007 | $ | 17.60 | 2,517,277 | $ | 17.37 | ||||||||||||||||||
Granted |
| | | | | | |||||||||||||||||||||
Exercised |
(180,015 | ) | 16.37 | (184,593 | ) | 14.07 | (163,270 | ) | 13.70 | ||||||||||||||||||
Expired |
| | | | | | |||||||||||||||||||||
Forfeited |
(21,621 | ) | 16.20 | (50,000 | ) | 16.06 | (200,000 | ) | 17.56 | ||||||||||||||||||
Outstanding
end of year |
1,717,778 | $ | 18.21 | 1,919,414 | $ | 18.01 | 2,154,007 | $ | 17.60 |
54
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
5. STOCK OPTIONS AND RIGHTS (Continued)
Exercise Price |
Options Outstanding |
Options Exercisable |
Weighted Average Remaining Life |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Months) |
||||||||||||||
11.5000 |
4,880 | 4,880 | 16 | |||||||||||
15.3750 |
21,500 | 21,500 | 23 | |||||||||||
15.8750 |
26,400 | 17,500 | 62 | |||||||||||
16.0625 |
700,000 | 700,000 | 62 | |||||||||||
17.5625 |
400,000 | 400,000 | 66 | |||||||||||
19.8125 |
52,998 | 52,998 | 31 | |||||||||||
20.0000 |
82,000 | 82,000 | 44 | |||||||||||
21.2500 |
25,000 | 25,000 | 41 | |||||||||||
21.8750 |
280,000 | 280,000 | 38 | |||||||||||
22.8125 |
125,000 | 125,000 | 38 | |||||||||||
1,717,778 | 1,708,878 | 54 |
6. STOCK INVESTMENT PLAN
55
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
7. EMPLOYEE BENEFIT AND COMPENSATION PLANS
56
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
7. EMPLOYEE BENEFIT AND COMPENSATION PLANS
(Continued)
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service
cost |
$ | | $ | | $ | | ||||||||
Interest
cost |
228 | 235 | 243 | |||||||||||
Amortization
of unrecognized prior service cost |
| | | |||||||||||
Amortization
of unrecognized net loss |
| | | |||||||||||
Net periodic
benefit cost |
228 | 235 | 243 | |||||||||||
Curtailment
unrecognized prior service cost acceleration |
| | 418 | |||||||||||
Curtailment
gain |
| | | |||||||||||
Termination
benefit cost |
| | | |||||||||||
Total
Cost |
$ | 228 | $ | 235 | $ | 661 |
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Discount
rate |
6.5 | % | 6.5 | % | 6.5 | % | ||||||||
Rate of
increase in salary levels |
| | |
Year Ending December 31, |
Amount (In thousands) |
|||||
---|---|---|---|---|---|---|
2005 |
$ 373 | |||||
2006 |
370 | |||||
2007 |
366 | |||||
2008 |
362 | |||||
2009 |
358 | |||||
2010 through
2014 |
1,699 | |||||
Total |
$3,528 |
57
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
7. EMPLOYEE BENEFIT AND COMPENSATION PLANS
(Continued)
2004 |
2003 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
Change in
benefit obligation |
||||||||||
Benefit
obligation at beginning of year |
$ | 3,664 | $ | 3,774 | ||||||
Service
cost |
| | ||||||||
Interest
cost |
228 | 234 | ||||||||
Amendments |
| | ||||||||
Actuarial
(gain)/loss |
295 | 29 | ||||||||
Benefits
paid |
(373 | ) | (373 | ) | ||||||
Termination
benefit cost |
| | ||||||||
Benefit
obligation at end of year |
3,814 | 3,664 | ||||||||
Change in
plan assets |
||||||||||
Fair value of
plan assets at beginning of year |
| | ||||||||
Expected
return on plan assets |
| | ||||||||
Employer
contribution |
373 | 373 | ||||||||
Benefits
paid |
(373 | ) | (373 | ) | ||||||
Fair value of
plan assets at end of year |
| | ||||||||
Unfunded
accumulated benefit obligation |
(3,814 | ) | (3,664 | ) | ||||||
Unrecognized
prior service cost |
| | ||||||||
Unrecognized
actuarial loss |
536 | 241 | ||||||||
Net amount
recognized |
$ | (3,278 | ) | $ | (3,423 | ) | ||||
Amounts
recognized in the statement of financial position consist of: |
||||||||||
Accrued
benefit liability |
$ | (3,278 | ) | $ | (3,423 | ) | ||||
Additional
minimum liability |
(536 | ) | (241 | ) | ||||||
Intangible
asset |
| | ||||||||
Accrued
pension benefits |
$ | (3,814 | ) | $ | (3,664 | ) |
58
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
7. EMPLOYEE BENEFIT AND COMPENSATION PLANS
(Continued)
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Service
cost |
$ | | $ | | $ | | ||||||||
Interest
cost |
99 | 19 | 15 | |||||||||||
Amortization
of unrecognized prior service cost |
| | | |||||||||||
Amortization
of unrecognized net loss |
87 | 8 | 5 | |||||||||||
Net periodic
benefit cost |
186 | 27 | 20 | |||||||||||
Curtailment
unrecognized prior service cost acceleration |
| | | |||||||||||
Curtailment
gain |
| | | |||||||||||
Termination
benefit cost |
| | | |||||||||||
Net Periodic
Postretirement Benefit Cost |
$ | 186 | $ | 27 | $ | 20 |
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Discount
rate |
6.5 | % | 6.5 | % | 6.5 | % | ||||||||
Rate of
increase in salary levels |
| | |
Year Ending December 31, |
Amount (In thousands) |
|||||
---|---|---|---|---|---|---|
2005 |
$ 140 | |||||
2006 |
145 | |||||
2007 |
148 | |||||
2008 |
149 | |||||
2009 |
148 | |||||
2010 through
2014 |
718 | |||||
Total |
$1,448 |
59
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
7. EMPLOYEE BENEFIT AND COMPENSATION PLANS
(Continued)
2004 |
2003 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
Change in
projected benefit obligation |
||||||||||
Benefit
obligation at beginning of year |
$ | 286 | $ | 239 | ||||||
Service
cost |
| | ||||||||
Interest
cost |
99 | 19 | ||||||||
Plan
participants contributions |
14 | 14 | ||||||||
Actuarial
(gain)/loss |
1,603 | 72 | ||||||||
Benefits
paid |
(122 | ) | (58 | ) | ||||||
Termination
benefit cost |
| | ||||||||
Benefit
obligation at end of year |
1,880 | 286 | ||||||||
Change in
plan assets |
||||||||||
Fair value of
plan assets at beginning of year |
| | ||||||||
Expected
return on plan assets |
| | ||||||||
Plan
participants contributions |
14 | 14 | ||||||||
Employer
contribution |
108 | 44 | ||||||||
Benefits
paid |
(122 | ) | (58 | ) | ||||||
Fair value of
plan assets at end of year |
| | ||||||||
Unfunded
accumulated benefit obligation |
(1,880 | ) | (286 | ) | ||||||
Unrecognized
prior service cost |
| | ||||||||
Unrecognized
actuarial loss |
1,697 | 181 | ||||||||
Net amount
recognized |
$ | (183 | ) | $ | (105 | ) | ||||
Amounts
recognized in the statement of financial position consist of: |
||||||||||
Accrued
benefit liability |
$ | (183 | ) | $ | (105 | ) | ||||
Additional
minimum liability |
(1,697 | ) | (181 | ) | ||||||
Intangible
asset |
| | ||||||||
Accrued
postretirement benefits |
$ | (1,880 | ) | $ | (286 | ) |
8. DIVIDENDS
Common Dividends
Payment Date |
Dividend Amount |
Return of Capital |
Taxable Ordinary Dividend |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
February 5,
2004 |
$ | 0.350 | $ | 0.144640 | $ | 0.205360 | ||||||||
May 6,
2004 |
0.350 | 0.144640 | 0.205360 | |||||||||||
August 5,
2004 |
0.350 | 0.144640 | 0.205360 | |||||||||||
November 1,
2004 |
0.350 | 0.144640 | 0.205360 | |||||||||||
Total |
$ | 1.400 | $ | 0.578560 | $ | 0.821440 |
60
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
8. DIVIDENDS (Continued)
Preferred Dividends
Payment Date |
Dividend Amount |
Return of Capital |
Taxable Ordinary Dividend |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 15,
2004 |
$ | 0.53125 | | $ | 0.53125 | |||||||||
June 15,
2004 |
$ | 0.53125 | | $ | 0.53125 | |||||||||
September 15,
2004 |
$ | 0.53125 | | $ | 0.53125 | |||||||||
December 15,
2004 |
$ | 0.53125 | | $ | 0.53125 | |||||||||
Total |
$ | 2.12500 | | $ | 2.12500 |
9. FEDERAL INCOME TAXES
2004 Estimate |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net
Income |
$ | 15,902 | $ | 16,691 | $ | 16,423 | ||||||||
Less: Net
(income) loss of taxable REIT Subsidiary |
24 | (124 | ) | 196 | ||||||||||
Net income
from REIT operations |
15,926 | 16,567 | 16,619 | |||||||||||
Add: Book
depreciation and amortization |
42,160 | 32,687 | 27,908 | |||||||||||
Less: Tax
depreciation and amortization |
(31,696 | ) | (24,521 | ) | (22,373 | ) | ||||||||
Book/tax
difference on gains from capital transactions |
(211 | ) | (339 | ) | 0 | |||||||||
Other
book/tax differences, net |
(6,723 | ) | (3,312 | ) | 1,053 | |||||||||
Taxable
income before adjustments |
19,456 | 21,082 | 23,207 | |||||||||||
Less: Capital
gains distributions |
0 | (224 | ) | 0 | ||||||||||
Taxable
ordinary income before adjustments |
19,456 | 20,858 | 23,207 | |||||||||||
Less: Net
operating loss carryforward |
0 | 0 | 0 | |||||||||||
Adjusted
taxable income subject to 90 percent dividend requirement |
$ | 19,456 | $ | 20,858 | $ | 23,207 |
61
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
9. FEDERAL INCOME TAXES (Continued)
10. COMMITMENTS AND CONTINGENCIES
Subsidiary Name |
Outstanding Balance December 31, 2004 |
|||||
---|---|---|---|---|---|---|
CRT ACP,
LLC |
$ | 80,000 | ||||
CRT
Baymeadows, Ltd |
13,800 | |||||
CRT
Westchase, LP |
15,190 | |||||
ELO
Associates II, Ltd |
98,980 | |||||
CRT Signature
Place, LP |
28,800 | |||||
CRT Ravinia,
LLC |
85,000 | |||||
CRT Vanguard
Partners, LP |
18,157 | |||||
CRT Post Oak,
LP |
77,000 | |||||
TOTAL
GUARANTEES OUTSTANDING AS OF DECEMBER 31, 2004 |
$ | 416,927 |
11. SEGMENT REPORTING
62
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
12. PREFERRED STOCK
13. COMMON STOCK
14. SUBSEQUENT EVENTS
15. INTERIM FINANCIAL INFORMATION (UNAUDITED)
63
CRT PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
FOR EACH OF THE THREE YEARS IN THE PERIOD
ENDED DECEMBER 31, 2004 (Continued)
15. INTERIM FINANCIAL INFORMATION (UNAUDITED)
(Continued)
Quarters Ended |
Total Rental Revenues |
Total Operating Revenues |
Net Income |
Diluted Earnings Per Share |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31,
2003 |
$ | 36,280 | $ | 36,490 | $ | 4,271 | $ | 0.20 | ||||||||||
June 30,
2003 |
35,964 | 36,090 | 3,450 | 0.16 | ||||||||||||||
September 30,
2003 |
35,163 | 35,163 | 3,290 | 0.15 | ||||||||||||||
December 31,
2003 |
38,664 | 38,664 | 3,685 | 0.17 | ||||||||||||||
March 31,
2004 |
39,468 | 39,534 | 3,246 | 0.12 | ||||||||||||||
June 30,
2004 |
40,931 | 41,039 | 2,999 | 0.11 | ||||||||||||||
September 30,
2004 |
40,974 | 41,063 | 580 | 0.02 | ||||||||||||||
December 31,
2004 |
45,495 | 45,591 | 2,725 | 0.06 |
64
SCHEDULE II
CRT PROPERTIES, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING
ACCOUNTS
FOR THE THREE YEARS ENDED DECEMBER 31, 2004
(In Thousands)
Additions |
||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Description |
Balance at beginning of period |
Charged to costs and expenses |
Charged to other accounts |
Write-offs |
Balance at end of period |
|||||||||||||||||
2004 |
||||||||||||||||||||||
Allowance for
uncollectible accounts |
$ | 939 | $ | 447 | $ | 0 | $ | 217 | $ | 1,169 | ||||||||||||
2003 |
||||||||||||||||||||||
Allowance for
uncollectible accounts |
$ | 1,280 | $ | 476 | $ | 0 | $ | 817 | $ | 939 | ||||||||||||
2002 |
||||||||||||||||||||||
Allowance for
uncollectible accounts |
$ | 1,114 | $ | 445 | $ | 0 | $ | 279 | $ | 1,280 |
65
Schedule III
Initial Cost |
Costs Capitalized Subsequent to Acquisition |
Total Cost |
||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Center/Location |
Land |
Bldgs & Improv. |
Improve- ments |
Carrying Costs |
Land |
Bldgs & Improv. |
(b)(c) Total |
(d) Accum. Depr. |
(a) Mort- gages |
Date Acquired |
Depreciable Life |
|||||||||||||||||||||||||||||||||||
OPERATING REAL
ESTATE: |
||||||||||||||||||||||||||||||||||||||||||||||
ATLANTA
CHAMBLEE |
$ | 14,667 | $ | 68,712 | $ | 23,455 | $ | 0 | $ | 14,667 | $ | 92,167 | $ | 106,834 | $ | 37,884 | $ | 0 | 19882001 | 339 YRS. | ||||||||||||||||||||||||||
ATLANTA
GWINNETT |
3,100 | 21,392 | 4,103 | 0 | 3,100 | 25,495 | 28,595 | 6,344 | 10,388 | 19932000 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ATLANTA
MCGINNIS PARK |
3,315 | 15,398 | 985 | 0 | 2,922 | 16,776 | 19,698 | 735 | 978 | 2003 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ATLANTA
PERIMETER |
2,785 | 18,407 | 2,745 | 0 | 2,785 | 21,152 | 23,937 | 4,607 | 6,711 | 1997 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ATLANTA THREE
RAVINIA |
6,960 | 118,390 | 2,400 | 0 | 6,960 | 120,790 | 127,750 | 9,218 | 85,000 | 2002 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ATLANTIC
CENTER PLAZA |
10,368 | 97,510 | 1,116 | 0 | 10,367 | 98,627 | 108,994 | 3,037 | 80,000 | 2004 | 339 YRS. | |||||||||||||||||||||||||||||||||||
CHARLOTTE
UNIVERSITY |
3,132 | 20,007 | 539 | 0 | 3,132 | 20,546 | 23,678 | 2,850 | 0 | 1999 | 339 YRS. | |||||||||||||||||||||||||||||||||||
CHARLOTTE
VANGUARD |
5,136 | 48,019 | (125 | ) | 0 | 4,512 | 48,518 | 53,030 | 9,660 | 18,157 | 1998 | 339 YRS.. | ||||||||||||||||||||||||||||||||||
CORPORATE |
0 | 760 | 0 | 0 | 0 | 760 | 760 | 274 | 0 | 2003 | 339 YRS. | |||||||||||||||||||||||||||||||||||
DALLAS CIGNA
PLAZA |
2,809 | 12,112 | 156 | 0 | 2,809 | 12,268 | 15,077 | 422 | 0 | 2003 | 339 YRS. | |||||||||||||||||||||||||||||||||||
DALLAS
TOLLWAY CROSSING |
3,195 | 14,486 | 326 | 0 | 3,195 | 14,812 | 18,007 | 504 | 0 | 2003 | 339 YRS. | |||||||||||||||||||||||||||||||||||
DALLAS
SIGNATURE PLACE |
5,800 | 32,793 | 0 | 0 | 5,800 | 32,793 | 38,593 | 0 | 28,800 | 2004 | 339 YRS. | |||||||||||||||||||||||||||||||||||
FORT
LAUDERDALE LAS OLAS |
7,400 | 130,873 | 0 | 0 | 7,400 | 130,873 | 138,273 | 279 | 98,980 | 2004 | 339 YRS. | |||||||||||||||||||||||||||||||||||
HOUSTON POST
OAK |
12,400 | 90,662 | 13,752 | 0 | 12,400 | 104,414 | 116,814 | 6,097 | 77,000 | 2002 | 339 YRS. | |||||||||||||||||||||||||||||||||||
HOUSTON
WESTCHASE |
1,425 | 19,202 | 188 | 0 | 1,425 | 19,390 | 20,815 | 178 | 15,190 | 2004 | 339 YRS. | |||||||||||||||||||||||||||||||||||
JACKSONVILLE
BAYMEADOWS |
10,514 | 39,250 | 5,062 | 0 | 10,514 | 44,312 | 54,826 | 13,193 | 31,524 | 19931998 | 339 YRS. | |||||||||||||||||||||||||||||||||||
JACKSONVILLE
BAYMEADOWS WAY |
2,157 | 18,704 | 0 | 0 | 2,157 | 18,704 | 20,861 | 232 | 13,800 | 2004 | 339 YRS | |||||||||||||||||||||||||||||||||||
JACKSONVILLE
JTB |
5,554 | 35,151 | 3,317 | 0 | 5,554 | 38,468 | 44,022 | 6,848 | 16,228 | 19972001 | 339 YRS. | |||||||||||||||||||||||||||||||||||
MEMPHIS
GERMANTOWN |
8,472 | 38,559 | 9,716 | 0 | 8,472 | 48,275 | 56,747 | 17,433 | 22,684 | 19882000 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ORLANDO
CENTRAL |
8,092 | 29,825 | 13,823 | 0 | 8,092 | 43,648 | 51,740 | 21,339 | 24,542 | 19881993 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ORLANDO LAKE
MARY |
5,506 | 35,523 | 1,718 | 0 | 5,506 | 37,241 | 42,747 | 5,036 | 11,908 | 1999 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ORLANDO
UNIVERSITY |
5,780 | 27,063 | 7,352 | 0 | 5,780 | 34,415 | 40,195 | 10,816 | 19,390 | 19902001 | 339 YRS.. | |||||||||||||||||||||||||||||||||||
RICHMOND
PARAGON |
1,422 | 15,144 | 2,334 | 0 | 1,422 | 17,478 | 18,900 | 4,226 | 0 | 1998 | 339 YRS. | |||||||||||||||||||||||||||||||||||
ST.
PETERSBURG |
7,135 | 36,020 | 14,852 | 0 | 7,135 | 50,872 | 58,007 | 20,553 | 25,887 | 19882000 | 339 YRS. | |||||||||||||||||||||||||||||||||||
TALLAHASSEE |
10,624 | 59,536 | 13,911 | 0 | 10,623 | 73,448 | 84,071 | 30,228 | 36,300 | 19881997 | 339 YRS. | |||||||||||||||||||||||||||||||||||
WASHINGTON
D.C. DECOVERLY |
16,259 | 22,028 | 34 | 0 | 16,259 | 22,062 | 38,321 | 788 | 0 | 2004 | 339 YRS. | |||||||||||||||||||||||||||||||||||
SUBTOTALS |
164,007 | 1,065,526 | 121,759 | 0 | 162,988 | 1,188,304 | 1,351,292 | 212,781 | 623,467 | |||||||||||||||||||||||||||||||||||||
FURNITURE
& EQUIPMENT |
0 | 3,320 | 427 | 0 | 0 | 3,747 | 3,747 | 2,806 | 0 | 315 YRS. | ||||||||||||||||||||||||||||||||||||
IMPROVEMENTS
IN PROGRESS |
0 | 0 | 1,354 | 0 | 0 | 1,354 | 1,354 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
TOTAL
OPERATING REAL ESTATE |
164,007 | 1,068,846 | 123,540 | 0 | 162,988 | 1,193,405 | 1,356,393 | 215,587 | 623,467 | |||||||||||||||||||||||||||||||||||||
UNIMPROVED
LAND: |
||||||||||||||||||||||||||||||||||||||||||||||
ATLANTA
GWINNETT |
958 | 0 | 0 | 0 | 958 | 0 | 958 | 0 | 0 | 1993 | ||||||||||||||||||||||||||||||||||||
ATLANTA
MCGINNIS PARK |
980 | 0 | 0 | 0 | 980 | 0 | 980 | 0 | 0 | 2003 | ||||||||||||||||||||||||||||||||||||
BIRMINGHAM
COLONNADE |
4,886 | 0 | 0 | 0 | 4,886 | 0 | 4,886 | 0 | 0 | 1998 | ||||||||||||||||||||||||||||||||||||
CHARLOTTE
VANGUARD |
1,516 | 0 | 0 | 0 | 1,516 | 0 | 1,516 | 0 | 0 | 1998 | ||||||||||||||||||||||||||||||||||||
COLUMBIA
SPRING VALLEY |
76 | 0 | 0 | 0 | 76 | 0 | 76 | 0 | 0 | 1993 | ||||||||||||||||||||||||||||||||||||
GREENSBORO
WENDOVER |
680 | 0 | 0 | 0 | 680 | 0 | 680 | 0 | 0 | 1993 | ||||||||||||||||||||||||||||||||||||
GREENVILLE
PARK CENTRAL |
409 | 0 | 0 | 0 | 409 | 0 | 409 | 0 | 0 | 1997 | ||||||||||||||||||||||||||||||||||||
ORLANDO
CENTRAL |
817 | 0 | 0 | 0 | 817 | 0 | 817 | 0 | 0 | 1989 | ||||||||||||||||||||||||||||||||||||
ST.
PETERSBURG |
707 | 0 | 0 | 0 | 707 | 0 | 707 | 0 | 0 | 1993 | ||||||||||||||||||||||||||||||||||||
WASHINGTON,
D.C. DECOVERLY |
3,599 | 0 | 0 | 0 | 3,599 | 0 | 3,599 | 0 | 0 | 2004 | ||||||||||||||||||||||||||||||||||||
TOTAL
UNIMPROVED LAND |
14,628 | 0 | 0 | 0 | 14,628 | 0 | 14,628 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
TOTAL |
$ | 178,635 | $ | 1,068,846 | $ | 123,540 | $ | 0 | $ | 177,616 | $ | 1,193,405 | $ | 1,371,021 | $ | 215,587 | $ | 623,467 |
66
Schedule III (Continued)
(a) | At December 31, 2004, the outstanding balance of mortgages payable was $623,467. In addition, the Company has a secured revolving credit facility with variable interest rates which is collateralized by mortgages on a pool of buildings. At December 31, 2004, the Companys secured revolving credit facility had no outstanding balance. |
(b) | Aggregate cost basis for Federal income tax purposes was $1,369,097 at December 31, 2004. |
(c) | Reconciliation of total real estate carrying value for the years ended December 31, 2004, 2003 and 2002 is as follows: |
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at
beginning of year |
$ | 976,018 | $ | 910,984 | $ | 677,141 | ||||||||
Acquisitions
and construction (net of fair value of acquired leases) |
368,834 | 50,796 | 228,930 | |||||||||||
Improvements |
30,121 | 15,701 | 11,593 | |||||||||||
Sale of
unimproved land |
(2,986 | ) | (991 | ) | (29 | ) | ||||||||
Sale or
disposition of operating real estate |
(966 | ) | (472 | ) | (6,651 | ) (1) | ||||||||
Balance at
close of year |
$ | 1,371,021 | $ | 976,018 | $ | 910,984 |
(1) |
Includes a carrying value reduction of approximately $6.3 million made to the assets of CRT Vanguard Partners, LP (CVP) as part of the Companys acquisition of the remaining limited partnership units of CVP. This reduction represents payments made to the former limited partners of CVP in excess of their capital accounts. |
(d) | Reconciliation of accumulated depreciation for the years ended December 31, 200 4, 2003 and 2002 is as follows: |
2004 |
2003 |
2002 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at
beginning of year |
$ | 179,569 | $ | 149,830 | $ | 123,999 | ||||||||
Depreciation
expense: |
||||||||||||||
Operating
real estate |
36,611 | 29,546 | 25,889 | |||||||||||
Furniture and
equipment |
373 | 469 | 546 | |||||||||||
Sale or
disposition of operating real estate |
(966 | ) | (276 | ) | (604 | ) | ||||||||
Balance at
close of year |
$ | 215,587 | $ | 179,569 | $ | 149,830 |
67
Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Item 9A. | CONTROLS AND PROCEDURES |
MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
68
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
CRT Properties, Inc.
Boca
Raton, Florida
69
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Item 11. EXECUTIVE COMPENSATION
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
70
PART IV
Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)(1) |
See
Item 8 Financial Statements and Supplementary Data Index to Consolidated Financial Statements and Financial Statement
Schedules for a list of the financial statements included in this report. |
|||||
(2) |
The
consolidated supplemental financial statement schedules required by Regulation S-X are included on pages 65 through 68 in this Form. |
|||||
(b) |
The
following exhibits are filed as part of this report: |
Number |
Description |
|||||
---|---|---|---|---|---|---|
3.1 |
Amended and Restated Articles of Incorporation of Koger Equity, Inc., dated May 18, 2000, as amended by Articles of Amendment to the Amended
and Restated Articles of Incorporation, dated September 9, 2003 (31) |
|||||
3.2 |
Koger Equity, Inc. By Laws, as Amended and Restated on February 17, 2000 (1) |
|||||
4.1 |
Koger Equity, Inc. Rights Agreement (the Rights Agreement) dated as of September 30, 1990 between the Company and Wachovia Bank
and Trust Company, N.A. as Rights Agent (Wachovia) (2) |
|||||
4.2 |
First Amendment to the Rights Agreement, dated as of March 22, 1993, between the National Bank of North Carolina, as Rights Agent (First
Union) (3) |
|||||
4.3 |
Second Amendment to the Rights Agreement, dated as of December 21, 1993, between the Company and First Union (4) |
|||||
4.4 |
Third Amendment to Rights Agreement, dated as of October 10, 1996, between Koger Equity, Inc. and First Union (5) |
|||||
4.5 |
Fourth Amendment to Rights Agreement, dated as of February 27, 1997, between Koger Equity, Inc. and First Union (6) |
|||||
4.6 |
Fifth Amendment to Rights Agreement, dated as of November 23, 1999, between Koger Equity, Inc. and Norwest Bank Minnesota, National
Association, as successor Rights Agent (7) |
|||||
4.7 |
Sixth Amendment to Rights Agreement, dated as of August 17, 2000, between Koger Equity, Inc. and Wells Fargo Bank Minnesota, N.A., as
successor Rights Agent (8) |
|||||
4.8 |
Seventh Amendment to the Rights Agreement between Koger Equity, Inc. and Wells Fargo Bank Minnesota, N.A., as successor Rights Agent
(9) |
|||||
10.1 |
Koger Equity, Inc. Amended and Restated 1988 Stock Option Plan (10) |
|||||
10.2 |
Form
of Stock Option Agreement pursuant to Koger Equity, Inc. Amended and Restated 1988 Stock Option Plan (10) |
|||||
10.3 |
Form
of Amendment to Stock Option Agreement pursuant to Koger Equity, Inc. Amended and Restated 1988 Stock Option Plan (11) |
|||||
10.4 |
Koger Equity, Inc. 1993 Stock Option Plan (12) |
|||||
10.5 |
Form
of Stock Option Agreement pursuant to Koger Equity, Inc. 1993 Stock Option Plan (13) |
|||||
10.6 |
Form
of Amendment to Stock Option Agreement pursuant to Koger Equity, Inc. 1993 Stock Option Plan (11) |
|||||
10.7 |
Koger Equity, Inc. 1996 Stock Option Plan (11) |
|||||
10.8 |
Form
of Stock Option Agreement pursuant to Koger Equity, Inc. 1996 Stock Option Plan (11) |
|||||
10.9 |
Form
of Koger Equity, Inc. Restricted Stock Award effective as of May 1, 1999 (14) |
71
Number |
Description | |||||
---|---|---|---|---|---|---|
10.10 |
Koger Equity, Inc. 1998 Equity and Cash Incentive Plan, as Amended and Restated (15) |
|||||
10.11 |
Stock Option Agreement between Koger Equity, Inc. and Thomas J. Crocker, dated as of February 17, 2000 (16) |
|||||
10.12 |
Amended and Restated Supplemental Executive Retirement Plan, effective as of May 20, 1999 (14) |
|||||
10.13 |
Form
of Indemnification Agreement between Koger Equity, Inc. and its Directors and certain of its officers (18) |
|||||
10.14 |
Employment Agreement between Koger Equity, Inc. and Thomas J. Crocker, effective January 1, 2002 (19) |
|||||
10.15 |
Employment Agreement between Koger Equity, Inc. and Thomas C. Brockwell effective January 1, 2002 (19) |
|||||
10.16 |
Promissory Note (No Recourse Note), dated as of February 17, 2000, executed by Thomas J. Crocker as maker in favor of Koger Equity, Inc. as
lender (16) |
|||||
10.17 |
Promissory Note (25% Recourse Note), dated as of February 17, 2000, executed by Thomas J. Crocker as maker in favor of Koger Equity, Inc. as
lender (16) |
|||||
10.18 |
Stock Pledge Security Agreement between Koger Equity, Inc. and Thomas J. Crocker dated as of February 17, 2000 (16) |
|||||
10.19 |
Stock Purchase and Loan Agreement between Thomas J. Crocker and Koger Equity, Inc., dated as of February 17, 2000 (16) |
|||||
10.20 |
Master Loan Agreement, made as of December 6, 2001, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance Company
(21) |
|||||
10.21 |
Koger Equity, Inc. Tranche A Promissory Note, dated December 16, 1996, in the principal amount of $100,500,000 payable to The Northwestern
Mutual Life Insurance Company (20) |
|||||
10.22 |
Koger Equity, Inc. Tranche B Promissory Note, dated December 16, 1996, in the principal amount of $89,500,000 payable to The Northwestern
Mutual Life Insurance Company (20) |
|||||
10.23 |
Koger Equity, Inc. Tranche C Promissory Note, dated September 2, 1999, in the principal amount of $14,700,000 payable to The Northwestern
Mutual Life Insurance Company (22) |
|||||
10.24 |
Koger Equity, Inc. Tranche D Promissory Note, dated September 2, 1999, in the principal amount of $30,000,000 payable to The Northwestern
Mutual Life Insurance Company (22) |
|||||
10.25 |
First Amendment of Tranche B Promissory Note, dated August 11, 2000, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance
Company (1) |
|||||
10.26 |
Third Amendment to Tranche A Promissory Note, dated December 6, 2001, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance
Company (21) |
|||||
10.27 |
Second Amendment to Tranche B Promissory Note, dated December 6, 2001, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance
Company (21) |
|||||
10.28 |
First Amendment to Tranche C Promissory Note, dated December 6, 2001, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance
Company (21) |
|||||
10.29 |
First Amendment to Tranche D Promissory Note, dated December 6, 2001, between Koger Equity, Inc. and The Northwestern Mutual Life Insurance
Company (21) |
|||||
10.30 |
The
Revolving Credit Loan Agreement dated as of August 24, 2004 among CRT Properties, Inc. and Wells Fargo Bank, N.A., as Sole Lead Arranger and
Administrative Agent,
and the lenders named therein * |
|||||
10.31 |
The
Revolving Credit Note dated January 8, 2002 issued by Koger Equity, Inc. to Fleet National Bank in the principal amount of up to $55,000,000
(23) |
72
Number |
Description | |||||
---|---|---|---|---|---|---|
10.32 |
The
Revolving Credit Note dated December 28, 2001 issued by Koger Equity, Inc. to Wells Fargo Bank, National Association, in the principal amount of up to
$40,000,000 (23) |
|||||
10.33 |
The
Revolving Credit Note dated December 28, 2001 issued by Koger Equity, Inc. to Compass Bank, an Alabama banking corporation, in the principal amount of
up to $20,000,000 (23) |
|||||
10.34 |
The
Revolving Credit Note dated January 8, 2002 issued by Koger Equity, Inc. to Comerica Bank in the principal amount of up to $10,000,000
(23) |
|||||
10.35 |
The
Swingline Note dated December 28, 2001 issued by Koger Equity, Inc. to Fleet National Bank in the principal amount of up to $2,500,000
(23) |
|||||
10.36 |
Revolving Credit Note, dated December 16, 2002 in the principal amount of up to $50,000,000 executed and delivered in connection with the
Fleet Credit Loan Agreement (26) |
|||||
10.37 |
Management Agreement, dated June 16, 2000, between Koger Equity, Inc. and Crocker Realty Trust, L.P., a Delaware limited partnership
(27) |
|||||
10.38 |
Purchase and Sale Agreement by and among Koger Equity, Inc., as Seller, and AREIF II Realty Trust, Inc., a Maryland corporation, as Buyer,
dated as of August 23, 2001 (28) |
|||||
10.39 |
Amended and Restated Agreement of Limited Partnership of Koger-Vanguard Partners, L.P., dated as of October 22, 1998, between Koger Equity,
Inc. as General Partner and certain persons as Limited Partners of Koger-Vanguard Partners, L.P. (29) |
|||||
10.40 |
Promissory Note dated December 17, 2002 between Koger Ravinia, LLC, and Metropolitan Life Insurance Company, in the principal amount of
$85,000,000 (30) |
|||||
10.41 |
Loan
Agreement, dated as of December 6, 2002 between Koger Post Oak Limited Partnership and Column Financial, Inc. |
|||||
10.42 |
Promissory Note dated December 6, 2002 between Koger Post Oak Limited Partnership and Column Financial, Inc. in the principal sum of
$77,000,000 |
|||||
10.43 |
Third Amended and Restated Agreement of Limited Partnership of CRT BMWCX, LTD., dated August 16, 2004, by & between CRTP OP LP,
Thomas J. Crocker, CCA III, Inc., and Westchase Corporate Center Associates, LTD. (32)
|
|||||
10.44 |
Agreement of Sale of Partnership Interests, dated September 30, 2004, by and between Koger Acquisition, LLC, East Las Olas Investors II,
WLD Realty, Ltd., and Halmos Holdings, Inc. (32)
|
|||||
10.45 |
Reinstatement and First Amendment to Agreement of Sale of Partnership Interests, dated October 15, 2004, by & between Koger Acquisition, LLC,
East Las Olas Investors II, WLD Realty, Ltd., and Halmos Holdings, Inc. (32)
|
|||||
12.1 |
Statements re Computation of Ratios* |
|||||
21.1 |
Subsidiaries of the Registrant* |
|||||
23 |
Consent of Independent Registered Public Accounting Firm* |
|||||
31.1 |
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* |
|||||
31.2 |
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* |
|||||
32.1 |
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002* |
(1) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended September 30, 2000 |
(2) |
Incorporated by Reference to the Companys Registration Statement on Form 8-A, dated October 3, 1990 |
(3) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended March 31, 1993 |
73
(4) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated December 21, 1993, to the Companys Registration Statement on Form 8-A, dated October 3, 1990 |
(5) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated October 10, 1996 to the Companys Registration Statement on Form 8-A, dated October 3, 1990 |
(6) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated March 17, 1997, to the Companys Registration Statement on Form 8-A, dated October 3, 1990 |
(7) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated November 23, 1999, to the Companys Registration Statement on Form 8-A, dated October 3, 1990 |
(8) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated August 17, 2000, to the Companys Registration Statement on Form 8-A, dated January 28, 2000 |
(9) |
Incorporated by Reference to the Amendment on Form 8-A/A, dated December 21, 2001, to the Companys Registration Statement on Form 8-A, dated January 28, 2000 |
(10) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended June 30, 1992 |
(11) |
Incorporated by Reference to the Companys Form 10-K for the year ended December 31, 1996 |
(12) |
Incorporated by Reference to the Companys Proxy Statement dated June 30, 1993 |
(13) |
Incorporated by Reference to the Companys Form 10-K for the year ended December 31, 1994 |
(14) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended June 30, 1999 |
(15) |
Incorporated by Reference to the Companys Proxy Statement dated April 18, 2000 |
(16) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended June 30, 2000 |
(17) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended June 30, 1995 |
(18) |
Incorporated by Reference to the Companys Form 10-K for the year ended December 31, 1995 |
(19) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated January 5, 2004, as filed with the Commission on January 5, 2004. |
(20) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated December 16, 1996, as filed with the Commission on March 10, 1997 |
(21) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated December 6, 2001, as filed with the Commission on March 21, 2002 |
(22) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated September 2, 1999, as filed with the Commission on November 17, 1999 |
(23) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated December 28, 2001, as filed with the Commission on February 28, 2002 |
(24) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated April 5, 2002, as filed with the Commission on June 6, 2002 |
(25) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated June 10, 2002, as filed with the Commission on June 21, 2002 |
(26) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated December 16, 2002, as filed with the Commission on January 29, 2003 |
(27) |
Incorporated by Reference to the Companys Form 10-K for the year ended December 31, 2000 |
(28) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated August 23, 2001, as filed with the Commission on August 27, 2001 |
(29) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated October 22, 1998, as filed with the Commission on December 31, 1998 |
(30) |
Incorporated by Reference to the Companys Current Report on Form 8-K, dated December 17, 2002, as filed with the Commission on January 16, 2003 |
(31) |
Incorporated by Reference to the Companys Annual Report on Form 10-K for the year ended December 31, 2003 |
(32) |
Incorporated by Reference to the Companys Form 10-Q for the three months ended September 30, 2004 |
75
SIGNATURES
Date: March 8, 2005
Signature |
Title |
Date |
||||||||
---|---|---|---|---|---|---|---|---|---|---|
/s/ Victor A.
Hughes, Jr. (VICTOR A. HUGHES, JR.) |
Chairman of the Board |
March 8,
2005 |
||||||||
/s/ Thomas J.
Crocker (THOMAS J. CROCKER) |
Chief Executive Officer and Director (Principal Executive Officer) |
March 8,
2005 |
||||||||
/s/ Randal L.
Martin (RANDAL L. MARTIN) |
Controller (Principal Financial and Accounting Officer) |
March 8,
2005 |
||||||||
/s/ Terence D.
McNally (TERENCE D. MCNALLY) |
Senior Vice President and Chief Financial Officer |
March 8,
2005 |
||||||||
/s/ D. Pike
Aloian (D. PIKE ALOIAN) |
Director |
March 8,
2005 |
||||||||
/s/ Benjamin C.
Bishop (BENJAMIN C. BISHOP) |
Director |
March 8,
2005 |
||||||||
/s/ Peter J.
Farrell (PETER J. FARRELL) |
Director |
March 8,
2005 |
||||||||
/s/ David B.
Hiley (DAVID B. HILEY) |
Director |
March 8,
2005 |
||||||||
/s/ Randall E.
Paulson (RANDALL E. PAULSON) |
Director |
March 8,
2005 |
||||||||
/s/ George F.
Staudter (GEORGE F. STAUDTER) |
Director |
March 8,
2005 |
||||||||
/s/ James C.
Teagle (JAMES C. TEAGLE) |
Director |
March 8,
2005 |
76