Parkway Reports Full-Year And Fourth Quarter 2015 Results

08 Feb, 2016, 16:15 ET from Parkway Properties, Inc.

ORLANDO, Fla., Feb. 8, 2016 /PRNewswire/ -- Parkway Properties, Inc. (NYSE: PKY) today announced results for its full year and fourth quarter ended December 31, 2015.

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Highlights

  • Fourth quarter 2015 FFO of $0.34 per diluted share, which includes $1.9 million, or $0.02 per diluted share, in one-time charges primarily related to acquisition costs and other non-recurring items   
  • Full-year 2015 FFO of $1.34 per diluted share 
  • Adjusted 2016 FFO guidance to a range of $1.21 to $1.31 per diluted share
  • Year-over-year recurring same-store cash net operating income growth of 10.2% at share for the quarter
  • Fourth quarter 2015 occupancy of 90.7%, with the portfolio 92.7% leased 
  • Full-year 2015 and year-to-date 2016 asset sales of approximately $624 million, of which approximately $500 million was Parkway's share
  • Subsequent to quarter-end, completed previously announced recapitalization of Courvoisier Centre at a gross asset value of $175 million, resulting in net proceeds to Parkway of $154.3 million

"With occupancy at 90.7% and the portfolio 92.7% leased, the fourth quarter concluded a tremendous year for Parkway, in which we executed 2.7 million square feet of leases," stated James R. Heistand, President and Chief Executive Officer of Parkway. "Since January 2015, we have accelerated our capital recycling strategy with dispositions totaling approximately $624 million, including seven assets in Houston, which we sold for approximately $179 million.  The continued portfolio transformation delivered superior operational results in 2015 with over 10% same-store cash NOI growth, 78.3% customer retention and an increase in average rent per square foot of $3.56. We believe we've effectively pruned the portfolio of substantially all of Parkway's non-core assets, leaving us with a collection of best-in-class assets that we believe is poised to continue our operational outperformance in 2016." 

For the fourth quarter 2015, funds from operations ("FFO") was $39.8 million, or $0.34 per diluted share for Parkway Properties LP's real estate portfolio, in which Parkway owns an interest (the "Parkway Portfolio"). Funds available for distribution ("FAD") was $15.3 million, or $0.13 per diluted share for the Parkway Portfolio. 

For the year ended December 31, 2015, FFO was $156.4 million, or $1.34 per diluted share for the Parkway Portfolio. FAD for the year ended December 31, 2015 was $71.1 million, or $0.61 per diluted share for the Parkway Portfolio.

A reconciliation of FFO and FAD to net income is included below. Net income to common stockholders and FFO and FAD for the Parkway Portfolio for the three months ended December 31, 2015 and full-year 2015, as well as a comparison to the prior-year periods, are as follows:

 

(Amounts in thousands, except per share data)

Three Months Ended December 31

Year Ended December 31

2015

2014

2015

2014

Amount

Per

Share

Amount

Per

Share

Amount

Per

Share

Amount

Per

Share

Net Income – Common

Stockholders – Basic

$

8,677

$

0.08

$

42,428

$

0.38

$

67,335

$

0.60

$

42,943

$

0.42

Wtd. Avg. Basic Shares

111,614

111,076

111,490

101,913

Funds From Operations

$

39,812

$

0.34

$

35,594

$

0.31

$

156,364

$

1.34

$

143,916

$

1.34

Funds Available for Distribution

$

15,260

$

0.13

$

14,440

$

0.12

$

71,077

$

0.61

$

71,591

$

0.67

Wtd. Avg. Diluted Shares/Units

116,760

116,521

116,691

107,319

 

Operational Results

Occupancy at the end of the fourth quarter 2015 was 90.7%, compared to 90.0% at the end of the prior quarter. Including leases that have been signed but have yet to commence, the Company's leased percentage at the end of the fourth quarter 2015 was 92.7%, compared to 91.7% at the end of the prior quarter.

Parkway's share of recurring same-store net operating income ("NOI") for the Parkway Portfolio was $50.4 million on a GAAP basis during the fourth quarter 2015, which was an increase of $3.0 million, or 6.3%, compared to the same period of the prior year. On a cash basis, the Company's share of recurring same-store NOI for the Parkway Portfolio was $41.8 million, which was an increase of $3.9 million, or 10.2%, compared to the same period of the prior year.

For the year ended December 31, 2015, Parkway's share of recurring same-store NOI for the Parkway Portfolio was $191.9 million on a GAAP basis, which was an increase of $11.4 million, or 6.3%, compared to the prior year. On a cash basis, the Company's share of recurring same-store NOI for the Parkway Portfolio was $152.8 million, which was an increase of $3.1 million, or 2.1%, compared to the prior year.   

The Company's portfolio GAAP NOI margin was 63.2% at Parkway's share during the fourth quarter 2015, compared to 57.0% during the same period of the prior year. For the full year 2015, the Company's portfolio GAAP NOI margin at Parkway's share was 61.7%, compared to 59.6% during the prior year.

Leasing Activity

During the fourth quarter 2015, Parkway signed a total of 631,000 square feet of leases at an average rent per square foot of $31.55 and at an average cost of $5.32 per square foot per year. For full-year 2015, the Company signed a total of 2.7 million square feet of leases, at an average rent per square foot of $30.76 and an average cost of $5.74 per square foot per year.

New & Expansion Leasing – During the fourth quarter 2015, Parkway signed 214,000 square feet of new leases at an average rent per square foot of $39.72 and at an average cost of $8.14 per square foot per year. Executing new leases at an all-time high rate of $39.72 effectively reduced Parkway's concession ratio on new leases quarter-over-quarter by 290 basis points to 20.5%.

For the full year 2015, the Company signed a total of 843,000 square feet of new leases, at an average rent per square foot of $34.25 and an average cost of $7.55 per square foot per year.

Expansion leases during the quarter totaled 72,000 square feet at an average rent per square foot of $24.37 and at an average cost of $3.47 per square foot per year. Expansion leases for the year totaled 227,000 square feet at an average rent per square foot of $28.46 and at an average cost of $5.72 per square foot per year.

Renewal Leasing – Customer retention during the fourth quarter 2015 was 81.9%. The Company signed 345,000 square feet of renewal leases at an average rent per square foot of $27.97, representing a 6.3% rate decrease from the expiring rate. The rate decrease in renewal leasing is principally attributable to significant renewal activity in Jacksonville, Orlando and Tampa, Florida. The average cost of renewal leases was $4.17 per square foot per year.

Customer retention for the full year 2015 was 78.3%. The Company signed 1.6 million square feet of renewal leases at an average rent per square foot of $29.27, representing a 2.5% rate increase from the expiring rate. The average cost of renewal leases was $4.79 per square foot per year. 

Significant operational and leasing statistics for the quarter as compared to prior quarters are as follows:

For the Three Months Ended

12/31/15

09/30/15

06/30/15

03/31/15

12/31/14

Ending Occupancy

90.7%

90.0%

90.4%

89.3%

88.6%

Customer Retention

81.9%

86.6%

62.0%

81.1%

82.6%

Square Footage of Total Leases Signed (in thousands)

631

734

687

642

936

Average Revenue Per Square Foot of Total Leases Signed

$31.55

$32.12

$28.92

$30.39

$32.20

Average Cost Per Square Foot Per Year of Total Leases Signed

$5.32

$6.19

$5.64

$5.76

$5.11

 

Acquisition and Disposition Activity

On October 1, 2015, Parkway acquired Two Buckhead Plaza, a 210,000 square foot office building located in the Buckhead submarket of Atlanta, Georgia, for a gross purchase price of $80.0 million. The seven-story office building, which includes 50,000 square feet of ground floor retail, was 96.6% occupied as of January 1, 2016 and is expected to generate an estimated forward twelve-month cash net operating income yield of approximately 6.0%. Parkway assumed the first mortgage secured by the property, which has a current outstanding balance of approximately $52.0 million with a current interest rate of 6.43% and a maturity date of October 1, 2017.

On November 6, 2015, a joint venture in which Parkway owns a 40% interest completed the sale of 7000 Central Park, a 415,000 square foot office building located in Atlanta, Georgia, for a gross sale price of $85.3 million. During the fourth quarter of 2015, the joint venture recognized a gain on the sale of 7000 Central Park of approximately $30.5 million, of which $9.8 million was Parkway's share.

On December 23, 2015, Parkway completed the sale of Millenia Park One, a 157,000 square foot office building located in Orlando, Florida, for a gross sale price of $28.2 million. During the fourth quarter of 2015, Parkway recognized a gain on the sale of Millenia Park One of approximately $3.5 million.  

Subsequent Events

On January 22, 2016, Parkway completed the sale of 5300 Memorial, a 154,000 square foot office building, and Town & Country, a 149,000 square foot office building, both located in Houston, Texas, for an aggregate gross sale price of $60.0 million. Parkway expects to recognize a gain on the sale of 5300 Memorial and Town & Country of approximately $37.8 million in the first quarter of 2016.

On February 5, 2016, Parkway completed the sale of 80% of its interest in Courvoisier Centre, a 343,000 square foot office building located in Miami, Florida, at a gross asset value of $175.0 million. Parkway retained a 20% interest in the asset through a newly formed joint venture and will continue to perform the property management and leasing services for the asset. Simultaneous with the closing of the joint venture transaction, the joint venture closed on a $106.5 million first mortgage secured by the asset, which has a fixed interest rate of 4.6%, matures in March 2026 and is interest only through maturity. The recapitalization of Courvoisier Centre resulted in net proceeds to Parkway of $154.3 million.

Capital Structure

On December 22, 2015, the Company paid in full the remaining outstanding loan secured by 5300 Memorial and Town & Country totaling $17.2 million and incurred a prepayment fee of $503,000.

At December 31, 2015, the Company had no outstanding debt under its unsecured revolving credit facility, $550.0 million outstanding under its unsecured term loans and held $75.0 million in cash and cash equivalents, of which $58.0 million of cash and cash equivalents was Parkway's share.  Parkway's share of secured debt totaled $1.0 billion at December 31, 2015.

At December 31, 2015, the Company's net debt to adjusted EBITDA multiple was 6.4x, using the quarter's annualized adjusted EBITDA after adjusting for the impact of investment activity completed during the period, as compared to 6.6x at September 30, 2015, and 6.1x at December 31, 2014.

Common Dividend

The Company's previously announced fourth quarter cash dividend of $0.1875 per share, which represents an annualized dividend of $0.75 per share, was paid on December 30, 2015 to stockholders of record as of December 16, 2015.

2016 Outlook 

After considering recently announced dispositions, as well as the expected near-term sale of Two Liberty Place in Philadelphia, the Company is adjusting its 2016 FFO outlook to a range of $1.21 to $1.31 per diluted share for the Parkway Portfolio and adjusting its 2016 earnings per diluted share ("EPS") outlook to a range of $0.48 to $0.58 for the Parkway Portfolio. The Company is increasing its 2016 portfolio ending occupancy to a range of 91.0% to 92.0% as a result of U.S. Airways' decision not to exercise its early termination option for its lease at the U.S. Airways Building in Tempe, Arizona.

The reconciliation of projected EPS to projected FFO per diluted share is as follows:

Outlook for 2016

Range

Fully diluted EPS

$0.48 - $0.58

Parkway's share of depreciation and amortization

$1.26 - $1.26

Gain on sale of real estate

($0.53 - $0.53)

Reported FFO per diluted share

 $1.21 - $1.31

 

 

2016 Core Operating Assumptions

Revised

2016

Outlook

Previous

2016

Outlook

Recurring cash NOI

$203,000 - $208,000 

$210,500 - $  215,500

Straight-line rent and amortization of above market rent

$  33,000 - $  34,000

$  33,500 - $    34,500

Management fee after-tax net income

$    3,000 - $    4,000

$    3,000 - $      4,000

General and administrative expense

$  35,000 - $  37,000

$  35,000 - $    38,000

Share based compensation expense included in G&A above

$    5,000 - $    6,000

$    5,000 - $      6,000

Mortgage and credit facilities interest expense

$  58,500 - $  60,500

$  58,000 - $    60,000

Debt and swap termination fees included in interest expense above  

$    2,200 - $    2,200

$           0 - $             0

Non-cash loan cost amortization included in interest expense above

$    2,000 - $    2,500

$    2,000 - $      2,500

Amortization of mortgage interest premium included in interest expense above

$  11,000 - $   12,000

$  11,000 - $    12,000

Recurring capital expenditures for building improvements, tenant   improvements and leasing commissions

$  44,000 - $   49,000 

$  44,000 - $    49,000

Recurring same-store GAAP NOI

       (2.0)% - 0.0%

       (2.0)% - 0.0%

Recurring same-store Cash NOI

         9.0% - 11.0%

         9.0% -11.0%

Portfolio ending occupancy

       91.0% - 92.0%

      89.5% - 90.5%

Weighted average annual diluted common shares/units

   116,800 – 116,800

 116,800 – 116,800

 

Variance within the outlook range may occur due to variations in the recurring revenue and expenses of the Company, as well as certain non-recurring items.  The earnings outlook does not include the impact of possible future gains or losses on early extinguishment of debt, possible future acquisitions or dispositions and related costs other than those currently under contract, possible future capital markets activity, the impact of fluctuations in the Company's stock price on share-based compensation, possible future impairment charges or other unusual charges that may occur during the year, except as noted.  It has been and will continue to be the Company's policy not to issue quarterly earnings guidance or revise the annual earnings outlook unless a material event occurs that impacts the Company's reported FFO outlook range.  This policy is intended to lessen the emphasis on short-term movements that do not have a material impact on earnings or long-term value of the Company.

Webcast and Conference Call

The Company will conduct its full-year and fourth quarter earnings conference call on Tuesday, February 9, 2016 at 9:00 a.m. Eastern Time.  To participate in the conference call, please dial 877-407-3982, or 1-201-493-6780 for international participants, at least five minutes prior to the scheduled start time.  A live audio webcast will also be available on the Company's website (www.pky.com).  A taped replay of the call can be accessed 24 hours a day through February 23, 2016, by dialing 877-870-5176, or 1-858-384-5517 for international callers, and using the passcode 13627612.

About Parkway Properties

Parkway Properties, Inc. is a fully integrated, self-administered and self-managed real estate investment trust specializing in the acquisition, ownership, development and management of quality office properties in higher growth submarkets in the Sunbelt region of the United States. Parkway owns or has an interest in 36 office properties located in six states with an aggregate of approximately 14.3 million square feet of leasable space as of January 1, 2016.  Fee-based real estate services are offered through wholly owned subsidiaries of the Company, which in total manage and/or lease approximately 2.7 million square feet for third-party owners as of January 1, 2016.

Forward Looking Statements

Certain statements in this press release that are not in the present or past tense or that discuss the Company's expectations (including any use of the words "anticipate," "assume," "believe," "estimate," "expect," "forecast," "guidance," "intend," "may," "might," "outlook," "plan," "potential," "project," "should," "will"  or similar expressions) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current beliefs as to the outcome and timing of future events. There can be no assurance that actual future developments affecting the Company will be those anticipated by the Company.  Examples of forward-looking statements include projections relating to fully diluted EPS, share of depreciation and amortization, net gains on sales of real estate, reported FFO per share, recurring FFO per share, nonrecurring items, net operating income, cap rates, internal rates of return, dividend payment rates, FFO accretion, capital improvements, expected sources of financing, the timing of closing of acquisitions, dispositions or other transactions and descriptions relating to these expectations.  These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors including, but not limited to, the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the actual or perceived impact of U.S. monetary policy; competition in the leasing market; the demand for and market acceptance of the Company's properties for rental purposes; oversupply of office properties in the Company's geographic markets; the amount and growth of the Company's expenses; customer financial difficulties and general economic conditions, including increasing interest rates and changes in the prices of commodities, as well as economic conditions in the Company's geographic markets; defaults or non-renewal of leases; risks associated with joint venture partners; risks associated with the ownership and development of real property, including risks related to natural disasters; risks associated with property acquisitions; the failure to acquire or sell properties as and when anticipated; illiquidity of real estate; termination or non-renewal of property management contracts; the bankruptcy or insolvency of companies for which the Company provides property management services or the sale of these properties; the outcome of claims and litigation involving or affecting the Company; the ability to satisfy conditions necessary to close pending transactions and the ability to successfully integrate businesses; compliance with environmental and other regulations, including real estate and zoning laws; the Company's inability to obtain financing; the Company's inability to use net operating loss carry forwards; the Company's failure to maintain its status as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended; and other risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's business, financial condition, liquidity, cash flows and financial results could differ materially from those expressed in the Company's forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.  New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us.  The Company does not undertake to update forward-looking statements except as may be required by law. 

Company's Use of Non-GAAP Financial Measures

FFO, FAD and NOI, including related per share amounts, are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs and should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of the Company. Management believes that FFO, FAD and NOI are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization, impairment and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs.  Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.  FFO, FAD and NOI do not represent cash generated from operating activities in accordance with GAAP and are not necessarily indicative of cash available to fund cash needs as disclosed in the Company's Consolidated Statements of Cash Flows.  FFO, FAD and NOI should not be considered as an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flows as a measure of liquidity.  The Company's calculation of these non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

FFO – Parkway computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition.  FFO is defined by NAREIT as net income (computed in accordance with GAAP), reduced by preferred dividends, excluding gains or losses from sale of previously depreciable real estate assets, impairment charges related to depreciable real estate under GAAP, plus depreciation and amortization related to depreciable real estate, and after adjustments to derive our pro rata share of FFO of consolidated and unconsolidated joint ventures. Further, we do not adjust FFO to eliminate the effects of non-recurring charges.  FFO measures 100% of the operating performance of Parkway Properties LP's real estate properties in which Parkway Properties, Inc. owns an interest.       

Recurring FFO – In addition to FFO, Parkway also discloses recurring FFO, which excludes Parkway's share of non-cash adjustment for interest rate swaps, realignment expenses, adjustments for non-recurring lease termination fees, gains and losses on extinguishment of debt, acquisition costs or other unusual items. Although this is a non-GAAP measure that differs from NAREIT's definition of FFO, the Company believes it provides a meaningful presentation of operating performance. Recurring FFO measures 100% of the operating performance of Parkway Properties LP's real estate properties in which Parkway Properties, Inc. owns an interest.

FAD – There is not a generally accepted definition established for FAD.  Therefore, the Company's measure of FAD may not be comparable to FAD reported by other REITs.  Parkway defines FAD as FFO, excluding straight line rent adjustments, amortization of above and below market leases, share-based compensation expense, acquisition costs, amortization of loan costs, other non-cash charges, gain or loss on extinguishment of debt, amortization of mortgage interest premium and reduced by recurring non-revenue enhancing capital expenditures for building improvements, tenant improvements and leasing costs.  Adjustments for Parkway's share of partnerships and joint ventures are included in the computation of FAD on the same basis. FAD measures 100% of the operating performance of Parkway Properties LP's real estate properties in which Parkway Properties, Inc. owns an interest.  

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA Parkway defines EBITDA as net income before interest expense, income taxes and depreciation and amortization. Parkway further defines Adjusted EBITDA, a non-GAAP financial measure, as net income before interest expense, income taxes, depreciation and amortization expense, acquisition costs, gains and losses on early extinguishment of debt, impairment of real estate, impairment loss of management contracts net of tax, share-based compensation expense, realignment expenses, and gains and losses on sales of real estate. Adjustments for Parkway's share of partnerships and joint ventures are included in the computation of Adjusted EBITDA on the same basis. Adjusted EBITDA does not represent cash generated from operating activities in accordance with GAAP, and should not be considered an alternative to operating income or net income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of liquidity. Adjusted EBITDA measures 100% of the operating performance of Parkway Properties LP's real estate properties in which Parkway Properties, Inc. owns an interest.

Net Operating Income (NOI) - Parkway defines net operating income ("NOI") as income from office and parking properties less property operating expenses. NOI measures 100% of the operating performance of Parkway Properties LP's real estate properties in which Parkway Properties, Inc. owns an interest.

Same-Store Properties - Parkway defines same-store properties as those properties that were owned for the entire current and prior year reporting periods and excludes properties classified as discontinued operations or which meet held for sale criteria. Same-store net operating income ("SSNOI") includes income from real estate operations less property operating expenses (before interest and depreciation and amortization) for same-store properties. Recurring SSNOI includes adjustments for non-recurring lease termination fees or other unusual items. SSNOI as computed by Parkway may not be comparable to SSNOI reported by other REITs that do not define the measure exactly as we do. SSNOI is a supplemental industry reporting measurement used to evaluate the performance of the Company's investments in real estate assets.

Contact: Parkway Properties, Inc. David R. O'Reilly Executive Vice President and Chief Financial Officer Bank of America Center                                                390 N. Orange Ave., Suite 2400                                     Orlando, FL 32801                                                         (407) 650-0593 www.pky.com

 

 

PARKWAY PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

December 31,

December 31,

2015

2014

(Unaudited)

(Unaudited)

Assets

Real estate related investments:

Office and parking properties

$                   3,332,021

$                   3,333,900

Accumulated depreciation

(308,772)

(309,629)

3,023,249

3,024,271

Condominium units  

-

9,318

Mortgage loan receivable

3,331

3,417

Investment in unconsolidated joint ventures

39,592

55,550

3,066,172

3,092,556

Receivables and other assets:

Rents and fees receivable, net

856

4,032

Straight line rents receivable

86,138

63,236

Other receivables

9,952

20,395

Unamortized lease costs

148,901

129,781

Unamortized loan costs

9,954

10,185

Escrows and other deposits

40,444

28,263

Prepaid assets

3,412

18,426

Investment in preferred interest

3,500

3,500

Fair value of interest rate swaps

474

1,131

Deferred tax asset - non-current

4,999

5,040

Other assets

858

978

Land available for sale

175

250

Intangible assets, net

146,688

185,488

Assets held for sale

21,373

24,079

Management contracts, net

378

1,133

Cash and cash equivalents

74,961

116,241

Total assets

$                   3,619,235

$                   3,704,714

Liabilities

Notes payable to banks

$                      550,000

$                      481,500

Mortgage notes payable         

1,238,336

1,339,450

Accounts payable and other liabilities:

Corporate payables

4,077

11,854

Deferred tax liability - non-current

793

470

Accrued payroll

4,845

3,210

Fair value of interest rate swaps

9,026

11,077

Interest payable

5,944

6,158

Property payables:

Accrued expenses and accounts payable

55,322

43,359

Accrued property taxes

22,857

25,652

Prepaid rents

18,787

16,311

Deferred revenue

25

105

Security deposits

7,135

7,964

Unamortized below market leases

64,874

76,253

Liabilities related to assets held for sale

1,003

2,035

Total liabilities

1,983,024

2,025,398

Equity

Parkway Properties, Inc. stockholders' equity:

Common stock, $.001 par value, 215,500,000 shares authorized 

and 111,631,153 and 111,127,386 shares issued and

outstanding in 2015 and 2014, respectively

112

111

Limited voting stock, $.001 par value, 4,500,000 shares 

authorized and 4,213,104 shares issued and outstanding

4

4

Additional paid-in capital               

1,854,913

1,842,581

Accumulated other comprehensive loss

(6,199)

(6,166)

Accumulated deficit             

(460,131)

(443,757)

    Total Parkway Properties, Inc. stockholders' equity

1,388,699

1,392,773

Noncontrolling interests

247,512

286,543

    Total equity

1,636,211

1,679,316

Total liabilities and equity

$                   3,619,235

$                   3,704,714

 

PARKWAY PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2015

2014

2015

2014

(Unaudited)

(Unaudited)

Revenues

Income from office and parking properties

$                110,856

$                114,995

$                452,597

$                418,007

Management company income

1,675

5,569

10,321

22,140

Sale of condominium units

20

5,818

11,065

16,554

Total revenues

112,551

126,382

473,983

456,701

Expenses  

Property operating expense

41,070

48,468

173,241

168,071

Management company expenses

1,729

4,915

9,935

20,280

Cost of sales - condominium units

41

4,485

11,120

13,199

Depreciation and amortization

47,577

51,213

190,387

182,955

Impairment loss on real estate

-

11,700

5,400

11,700

Impairment loss on management contracts

-

4,750

-

4,750

General and administrative 

7,065

6,523

31,194

32,660

Acquisition costs

1,306

1,200

2,074

3,463

Total expenses  

98,788

133,254

423,351

437,078

Operating income (loss) 

13,763

(6,872)

50,632

19,623

Other income and expenses

Interest and other income

203

561

903

1,452

Equity in earnings (loss) of unconsolidated joint ventures

1,281

(185)

2,204

(967)

Net gains on sale of real estate

3,819

69,714

110,732

82,667

Gain on sale of unconsolidated property

9,698

-

9,698

-

Loss on extinguishment of debt

(520)

(2,066)

(6,062)

(2,405)

Interest expense

(17,590)

(17,514)

(71,481)

(66,095)

Income before income taxes

10,654

43,638

96,626

34,275

Income tax (expense) benefit 

(894)

624

(1,903)

(139)

Income from continuing operations

9,760

44,262

94,723

34,136

Discontinued operations:

Loss from discontinued operations

-

(10)

-

(391)

Net gains on sale of real estate from discontinued operations

-

-

-

10,463

Total discontinued operations

-

(10)

-

10,072

Net income  

9,760

44,252

94,723

44,208

Net income attributable to noncontrolling interests - unit holders

(375)

(2,147)

(2,947)

(2,089)

Net (income) loss attributable to noncontrolling interests - real estate partnerships

(708)

323

(24,441)

824

Net income for Parkway Properties, Inc. and attributable to common stockholders

$                   8,677

$                  42,428

$                  67,335

$                  42,943

Net income per common share attributable to Parkway Properties, Inc.:

Basic:

Income from continuing operations attributable to Parkway Properties, Inc.

$                     0.08

$                     0.38

$                     0.60

$                     0.33

Discontinued operations

-

-

-

0.09

Basic net income attributable to Parkway Properties, Inc.

$                     0.08

$                     0.38

$                     0.60

$                     0.42

Diluted:

Income from continuing operations attributable to Parkway Properties, Inc.

$                     0.08

$                     0.38

$                     0.60

$                     0.33

Discontinued operations

-

-

-

0.09

Diluted net income attributable to Parkway Properties, Inc.

$                     0.08

$                     0.38

$                     0.60

$                     0.42

Weighted average shares outstanding:

Basic

111,614

111,076

111,490

101,913

Diluted

116,760

116,521

116,691

107,319

Amounts attributable to Parkway Properties, Inc. common stockholders:

Income from continuing operations attributable to Parkway Properties, Inc.

$                   8,677

$                  42,437

$                  67,335

$                  33,223

Discontinued operations

-

(9)

-

9,720

Net income attributable to common stockholders

$                   8,677

$                  42,428

$                  67,335

$                  42,943

 

 

PARKWAY PROPERTIES, INC.

RECONCILIATION OF FUNDS FROM OPERATIONS AND FUNDS AVAILABLE

FOR DISTRIBUTION TO NET INCOME AT PARKWAY'S SHARE

(In thousands, except per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2015

2014

2015

2014

(Unaudited)

(Unaudited)

Net income for Parkway Properties, Inc.

$               8,677

$             42,428

$             67,335

$             42,943

Adjustments to net income for Parkway Properties, Inc.:

Depreciation and amortization

44,333

48,516

175,802

179,797

Noncontrolling interest - unit holders

375

2,147

2,947

2,089

Impairment loss on depreciable real estate

-

11,700

5,400

11,700

Net gains on sale of real estate

(3,819)

(69,197)

(85,366)

(82,150)

Net gains on sale of real estate - discontinued operations

-

-

-

(10,463)

Gain on sale of unconsolidated property

(9,754)

-

(9,754)

-

Funds from operations attributable to the operating partnership

$             39,812

$             35,594

$            156,364

$            143,916

Adjustments to derive recurring funds from operations:

Non-recurring lease termination fee income

(470)

(539)

(2,054)

(1,443)

Loss on extinguishment of debt

575

2,066

4,537

2,405

Acquisition costs

1,306

1,200

2,074

3,463

Impairment loss on management contracts, net of tax

-

2,905

-

2,905

Non-cash adjustment for interest rate swap

(52)

(56)

370

(19)

Realignment expenses

520

881

520

6,016

Recurring funds from operations attributable to the operating partnership

$             41,691

$             42,051

$            161,811

$            157,243

Funds available for distribution

Funds from operations

$             39,812

$             35,594

$            156,364

$            143,916

Add (deduct):

Straight-line rents

(9,327)

(5,692)

(36,320)

(22,310)

Amortization of below market leases, net

(4,427)

(4,776)

(18,149)

(14,653)

Amortization of share-based compensation

1,410

1,400

6,525

8,238

Impairment loss on management contracts, net of tax

-

2,905

-

2,905

Acquisition costs

1,306

1,200

2,074

3,463

Amortization of loan costs

716

681

2,919

2,712

Non-cash adjustment for interest rate swap

(52)

(56)

370

(19)

Loss on extinguishment of debt

575

2,066

4,537

2,405

Amortization of mortgage interest premium 

(3,327)

(2,794)

(12,268)

(10,046)

Recurring capital expenditures: (1)

Building improvements

(3,930)

(2,913)

(7,489)

(9,510)

Tenant improvements - new leases

(1,872)

(1,227)

(5,020)

(11,902)

Tenant improvements - renewal leases

(2,648)

(2,135)

(8,383)

(5,377)

Leasing costs - new leases

(854)

(3,138)

(7,038)

(5,820)

Leasing costs - renewal leases

(2,122)

(6,675)

(7,045)

(12,411)

Total recurring capital expenditures

(11,426)

(16,088)

(34,975)

(45,020)

Funds available for distribution attributable to the operating partnership

$             15,260

$             14,440

$             71,077

$             71,591

Diluted per common share/unit information (**)

FFO per share

$                 0.34

$                 0.31

$                 1.34

$                 1.34

Recurring FFO per share

$                 0.36

$                 0.36

$                 1.39

$                 1.47

FAD per share

$                 0.13

$                 0.12

$                 0.61

$                 0.67

Dividends paid

$             0.1875

$             0.1875

$             0.7500

$             0.7500

Dividend payout ratio for FFO

55.1%

60.5%

56.0%

56.0%

Dividend payout ratio for recurring FFO

52.1%

52.1%

54.0%

51.0%

Dividend payout ratio for FAD

144.2%

156.3%

123.0%

111.9%

Other supplemental information 

Recurring capital expenditures

$             11,426

$             16,088

$             34,975

$             45,020

Upgrades on acquisitions

28,088

24,586

94,085

56,938

Total real estate improvements and leasing costs (1)

$             39,514

$             40,674

$            129,060

$            101,958

**Information for diluted computations:

Basic common shares/units outstanding

116,446

116,276

116,393

107,113

Dilutive effect of other share equivalents

314

245

298

206

Diluted weighted average shares/units outstanding

116,760

116,521

116,691

107,319

(1) Development costs related to Hayden Ferry III are not included in these amounts.

 

PARKWAY PROPERTIES, INC.

EBITDA, ADJUSTED EBITDA, COVERAGE RATIOS AND CAPITALIZATION INFORMATION

(In thousands, except per share, percentage and multiple data)

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

Net income for Parkway Properties, Inc.

$              8,677

$            37,251

$            14,132

$              7,275

$            42,428

Adjustments at Parkway's share to net income for Parkway Properties, Inc.:

Interest expense

14,822

14,256

14,700

15,795

15,910

Depreciation and amortization

44,333

42,398

43,706

45,365

48,516

Income tax expense

894

491

326

192

1,221

EBITDA

68,726

94,396

72,864

68,627

108,075

Amortization of loan costs

716

708

824

671

681

Non-cash adjustment for interest rate swap

(52)

217

(43)

248

(56)

(Gain) loss on extinguishment of debt

575

210

3,831

(79)

2,066

Noncontrolling interest - unit holders 

375

1,617

607

348

2,147

Acquisition costs

1,306

101

196

471

1,200

Amortization of share-based compensation

1,410

1,653

1,726

1,736

1,400

Net gains on sale of real estate 

(3,819)

(42,309)

(24,922)

(14,316)

(69,197)

Gain on sale of unconsolidated property

(9,754)

-

-

-

-

Impairment loss on real estate

-

-

4,400

1,000

11,700

Impairment loss on management contracts, net of tax

-

-

-

-

2,905

Realignment expenses

520

-

-

-

-

Adjusted EBITDA 

$            60,003

$            56,593

$            59,483

$            58,706

$            60,921

Interest coverage ratio

4.0

4.0

4.0

3.7

3.8

Fixed charge coverage ratio 

3.4

3.3

3.5

3.1

3.2

Capitalization information

Mortgage notes payable at Parkway's share

$        1,034,972

$        1,007,528

$        1,007,589

$        1,109,338

$        1,124,860

Notes payable to banks

550,000

550,000

600,000

593,000

481,500

Parkway's share of total debt 

1,584,972

1,557,528

1,607,589

1,702,338

1,606,360

Less:  Parkway's share of cash and cash equivalents 

(57,974)

(88,878)

(47,142)

(37,323)

(82,353)

Parkway's share of net debt 

1,526,998

1,468,650

1,560,447

1,665,015

1,524,007

Shares of common stock and operating units outstanding

116,464

116,424

116,391

116,372

116,327

Stock price per share at period end

$              15.63

$              15.56

$              17.44

$              17.35

$              18.39

Market value of common equity

$       1,820,332

$       1,811,557

$       2,029,859

$       2,019,054

$       2,139,254

Total market capitalization (including net debt)

$       3,347,330

$       3,280,207

$       3,590,306

$       3,684,069

$       3,663,261

Net debt as a percentage of market capitalization

45.6%

44.8%

43.5%

45.2%

41.6%

Adjusted EBITDA annualized

$          240,012

$          226,372

$          237,932

$          234,824

$         243,684

Adjustment to annualize investment activities (1)

(1,829)

(2,747)

(4,011)

606

8,194

Adjusted EBITDA - annualized investment activities

$          238,183

$          223,625

$          233,921

$          235,430

$          251,878

Net debt to Adjusted EBITDA multiple

6.4

6.6

6.7

7.1

6.1

(1)  Adjustment to annualized investment activities represents the implied annualized impact of any acquisition or disposition activity for the period. 

 

 

PARKWAY PROPERTIES, INC.

SAME-STORE NET OPERATING INCOME 

(In thousands, except number of properties data)

Three Months Ended December 31, 2015 and 2014

Net Operating Income

Average Occupancy

Number of

Percentage

Square Feet

Properties

of Portfolio (1)

2015

2014

2015

2014

Same-store properties:

Wholly owned 

9,559

22

67.2%

$       46,887

$       44,250

90.4%

89.5%

Fund II

1,950

5

14.4%

10,050

9,940

96.9%

97.3%

Total same-store properties

11,509

27

81.6%

$       56,937

$       54,190

91.5%

90.8%

Net operating income from  

consolidated office and 

parking properties (2)

14,108

35

100.0%

$       69,786

$       68,527

(1)  Percentage of portfolio based on net operating income for the three months ended December 31, 2015.

(2) Same-store net operating income for the three months ended December 31, 2014 includes the effect of amounts from our One Congress Plaza and San Jacinto Center properties in Austin, Texas as these properties are included as same-store properties for comparative purposes. Previously, the activity from these properties was included in equity in earnings.

The following table is a reconciliation of net income to Same-Store net operating income (SSNOI) and Recurring SSNOI:

Three Months Ended

Year Ended

December 31,

December 31,

2015

2014

2015

2014

Net income for Parkway Properties, Inc.

$         8,677

$       42,428

$       67,335

$       42,943

Add (deduct):

Interest expense

17,590

17,514

71,481

66,095

Loss on extinguishment of debt

520

2,066

6,062

2,405

Depreciation and amortization

47,577

51,213

190,387

182,955

Management company expenses

1,729

4,915

9,935

20,280

Income tax expense (benefit)

894

(624)

1,903

139

General and administrative  

7,065

6,523

31,194

32,660

Acquisition costs

1,306

1,200

2,074

3,463

Equity in (earnings) loss of unconsolidated joint ventures

(1,281)

185

(2,204)

967

Sale of condominium units

(20)

(5,818)

(11,065)

(16,554)

Cost of sales - condominium units

41

4,485

11,120

13,199

Net income attributable to noncontrolling interests 

1,083

1,824

27,388

1,265

Loss from discontinued operations

-

10

-

391

Net gains on sale of real estate

(3,819)

(69,714)

(110,732)

(82,667)

Net gains on sale of real estate - discontinued operations

-

-

-

(10,463)

Gain on sale of unconsolidated property

(9,698)

-

(9,698)

-

Impairment loss on real estate

-

11,700

5,400

11,700

Impairment loss on management contracts

-

4,750

-

4,750

Management company income

(1,675)

(5,569)

(10,321)

(22,140)

Interest and other income 

(203)

(561)

(903)

(1,452)

Net operating income from consolidated office and parking properties

69,786

66,527

279,356

249,936

Less:  Net operating income from non same-store properties

(12,849)

(14,337)

(60,377)

(60,755)

Add: One Congress Plaza and San Jacinto Center (3)

-

2,000

-

18,303

Same-store net operating income (SSNOI)

56,937

54,190

218,979

207,484

Less: non-recurring lease termination fee income

(25)

(269)

(847)

(871)

Recurring SSNOI

$       56,912

$       53,921

$     218,132

$     206,613

Parkway's share of SSNOI

$       50,466

$       47,732

$     192,796

$     181,420

Parkway's share of recurring SSNOI

$       50,441

$       47,455

$     191,949

$     180,568

(3) Same-store net operating income and recurring same-store net operating income for the three months and year ended December 31, 2014 includes the effect of amounts from our One Congress Plaza and San Jacinto Center properties in Austin, Texas as these properties are included as same-store properties for comparative purposes. Previously, the activity from these properties was included in equity in earnings.

 

PARKWAY PROPERTIES, INC.

SAME-STORE NET OPERATING INCOME (Continued)

THREE MONTHS ENDED DECEMBER 31, 2015 AND 2014

(In thousands)

Consolidated

Parkway's Share

 Dollar 

Percentage

 Dollar 

Percentage

2015

2014

 Change 

Change

2015

2014

 Change 

Change

Same-store assets GAAP NOI:

Revenues

Wholly-owned properties

$      74,078

$    76,572

$     (2,494)

-3.3%

$    74,078

$    76,572

$     (2,494)

-3.3%

Fund II 

16,005

15,317

688

4.5%

4,238

4,006

232

5.8%

Unconsolidated joint ventures

-

-

-

-

840

840

-

-

Total same-store GAAP revenue 

90,083

91,889

(1,806)

-2.0%

79,156

81,418

(2,262)

-2.8%

Expenses

Wholly-owned properties

27,191

32,322

(5,131)

-15.9%

27,191

32,322

(5,131)

-15.9%

Fund II

5,955

5,377

578

10.7%

1,495

1,362

133

9.8%

Unconsolidated joint ventures

-

-

-

-

4

2

2

100.0%

Total same-store GAAP expenses

33,146

37,699

(4,553)

-12.1%

28,690

33,686

(4,996)

-14.8%

NOI - GAAP

$      56,937

$    54,190

$      2,747

5.1%

$    50,466

$    47,732

$      2,734

5.7%

Net margin - GAAP

63.2%

59.0%

4.2%

63.8%

58.6%

5.2%

Acquisitions & Development Properties

Revenues

Wholly-owned properties

$      17,276

$      6,208

$    11,068

$    17,276

$      6,208

$    11,068

Fund II 

859

-

859

602

-

602

Unconsolidated joint ventures

-

-

-

-

-

-

Total acquisitions GAAP revenue

18,135

6,208

11,927

17,878

6,208

11,670

Expenses

Wholly-owned properties

6,520

2,975

3,545

6,520

2,975

3,545

Fund II 

108

(11)

119

76

7

69

Unconsolidated joint ventures

-

-

-

-

-

-

Total acquisitions GAAP expenses

6,628

2,964

3,664

6,596

2,982

3,614

NOI

$      11,507

$      3,244

$      8,263

$    11,282

$      3,226

$      8,056

Net margin

63.5%

52.3%

11.2%

63.1%

52.0%

11.1%

Office assets sold or held for sale

Revenues

Wholly-owned properties

$        2,632

$    18,210

$   (15,578)

$      2,632

$    18,210

$   (15,578)

Fund II 

6

2,584

(2,578)

2

775

(773)

Unconsolidated joint ventures

-

-

-

342

3,994

(3,652)

Total sold properties GAAP revenue

2,638

20,794

(18,156)

2,976

22,979

(20,003)

Expenses

Wholly-owned properties

1,290

8,566

(7,276)

1,290

8,566

(7,276)

Fund II 

6

1,135

(1,129)

2

339

(337)

Unconsolidated joint ventures

-

-

-

183

1,960

(1,777)

Total sold properties GAAP expenses

1,296

9,701

(8,405)

1,475

10,865

(9,390)

NOI

$        1,342

$    11,093

$     (9,751)

$      1,501

$    12,114

$   (10,613)

Total portfolio

Revenues

Wholly-owned properties

$      93,986

$  100,990

$     (7,004)

$    93,986

$  100,990

$     (7,004)

Fund II 

16,870

17,901

(1,031)

4,842

4,781

61

Unconsolidated joint ventures

-

-

-

1,182

4,834

(3,652)

Total revenues

$    110,856

$  118,891

$     (8,035)

$  100,010

$  110,605

$   (10,595)

Expenses

Wholly-owned properties

35,001

43,863

(8,862)

35,001

43,863

(8,862)

Fund II 

6,069

6,501

(432)

1,573

1,708

(135)

Unconsolidated joint ventures

-

-

-

187

1,962

(1,775)

Total expenses

$      41,070

$    50,364

$     (9,294)

$    36,761

$    47,533

$   (10,772)

NOI

$      69,786

$    68,527

$      1,259

$    63,249

$    63,072

$         177

Net margin

63.0%

57.6%

63.2%

57.0%

Same-store assets recurring GAAP NOI:

Total same-store GAAP revenue 

$      90,083

$    91,889

$     (1,806)

-2.0%

$    79,156

$    81,418

$     (2,262)

-2.8%

Non-recurring lease termination fee income

(25)

(269)

244

-90.7%

(25)

(277)

252

-91.0%

Recurring same-store revenue

90,058

91,620

(1,562)

-1.7%

79,131

81,141

(2,010)

-2.5%

Total same-store expenses

33,146

37,699

(4,553)

-12.1%

28,690

33,686

(4,996)

-14.8%

Recurring NOI - GAAP

$      56,912

$    53,921

$      2,991

5.5%

$    50,441

$    47,455

$      2,986

6.3%

Recurring net margin - GAAP

63.2%

58.9%

4.3%

63.7%

58.5%

5.2%

Same-store assets cash NOI:

Total same-store GAAP revenue 

$      90,083

$    91,889

$     (1,806)

-2.0%

$    79,156

$    81,418

$     (2,262)

-2.8%

Amortization of below market leases, net

(3,750)

(3,547)

(203)

5.7%

(3,934)

(3,860)

(74)

1.9%

Straight-line rents

(5,667)

(5,407)

(260)

4.8%

(4,745)

(5,688)

943

-16.6%

Total same-store cash revenue

80,666

82,935

(2,269)

-2.7%

70,477

71,870

(1,393)

-1.9%

Total same-store expenses

33,146

37,699

(4,553)

-12.1%

28,690

33,686

(4,996)

-14.8%

NOI - cash

$      47,520

$    45,236

$      2,284

5.0%

$    41,787

$    38,184

$      3,603

9.4%

Net margin - cash

58.9%

54.5%

4.4%

59.3%

53.1%

6.2%

Same-store assets recurring cash NOI:

Total same-store cash revenue

$      80,666

$    82,935

$     (2,269)

-2.7%

$    70,477

$    71,870

$     (1,393)

-1.9%

Non-recurring lease termination fee income

(25)

(269)

244

-90.7%

(25)

(277)

252

-91.0%

Recurring same-store cash revenue

80,641

82,666

(2,025)

-2.4%

70,452

71,593

(1,141)

-1.6%

Total same-store expenses

33,146

37,699

(4,553)

-12.1%

28,690

33,686

(4,996)

-14.8%

Recurring NOI - cash

$      47,495

$    44,967

$      2,528

5.6%

$    41,762

$    37,907

$      3,855

10.2%

Recurring net margin - cash

58.9%

54.4%

4.5%

59.3%

52.9%

6.4%

*N/M - Not Meaningful

 

 

PARKWAY PROPERTIES, INC.

SAME-STORE NET OPERATING INCOME (Continued)

YEAR ENDED DECEMBER 31, 2015 AND 2014

(In thousands)

Consolidated

Parkway's Share

 Dollar 

Percentage

 Dollar 

Percentage

2015

2014

 Change 

Change

2015

2014

 Change 

Change

Same-store assets GAAP NOI:

Revenues

Wholly-owned properties

$    283,690

$  274,653

$      9,037

3.3%

$    283,690

$  274,653

$      9,037

3.3%

Fund II 

63,297

61,774

1,523

2.5%

16,595

16,122

473

2.9%

Unconsolidated joint ventures

-

-

-

-

3,359

3,359

-

-

Total same-store GAAP revenue 

346,987

336,427

10,560

3.1%

303,644

294,134

9,510

3.2%

Expenses

Wholly-owned properties

104,991

107,204

(2,213)

-2.1%

104,991

107,204

(2,213)

-2.1%

Fund II

23,017

21,739

1,278

5.9%

5,851

5,508

343

6.2%

Unconsolidated joint ventures

-

-

-

-

6

2

4

*N/M

Total same-store GAAP expenses

128,008

128,943

(935)

-0.7%

110,848

112,714

(1,866)

-1.7%

NOI - GAAP

$    218,979

$  207,484

$    11,495

5.5%

$    192,796

$  181,420

$    11,376

6.3%

Net margin - GAAP

63.1%

61.7%

1.4%

63.5%

61.7%

1.8%

Acquisitions & Development Properties

Revenues

Wholly-owned properties

$      64,425

$    26,580

$    37,845

$      64,425

$    26,580

$    37,845

Fund II 

859

-

859

601

-

601

Unconsolidated joint ventures

-

-

-

-

-

-

Total acquisitions GAAP revenue

65,284

26,580

38,704

65,026

26,580

38,446

Expenses

Wholly-owned properties

26,986

11,205

15,781

26,986

11,205

15,781

Fund II 

219

54

165

153

46

107

Unconsolidated joint ventures

-

-

-

-

-

-

Total acquisitions GAAP expenses

27,205

11,259

15,946

27,139

11,251

15,888

NOI

$      38,079

$    15,321

$    22,758

$      37,887

$    15,329

$    22,558

Net margin

58.3%

57.6%

0.7%

58.3%

57.7%

0.6%

Office assets sold or held for sale

Revenues

Wholly-owned properties

$      36,461

$    75,375

$   (38,914)

$      36,461

$    75,375

$   (38,914)

Fund II 

3,865

10,338

(6,473)

1,160

3,101

(1,941)

Unconsolidated joint ventures

-

-

-

2,870

25,077

(22,207)

Total sold properties GAAP revenue

40,326

85,713

(45,387)

40,491

103,553

(63,062)

Expenses

Wholly-owned properties

16,367

35,421

(19,054)

16,367

35,421

(19,054)

Fund II 

1,661

4,858

(3,197)

498

1,472

(974)

Unconsolidated joint ventures

-

-

-

1,683

10,656

(8,973)

Total sold properties GAAP expenses

18,028

40,279

(22,251)

18,548

47,549

(29,001)

NOI

$      22,298

$    45,434

$   (23,136)

$      21,943

$    56,004

$   (34,061)

Total portfolio

Revenues

Wholly-owned properties

$    384,576

$  376,608

$      7,968

$    384,576

$  376,608

$      7,968

Fund II 

68,021

72,112

(4,091)

18,356

19,223

(867)

Unconsolidated joint ventures

-

-

-

6,229

28,436

(22,207)

Total revenues

$    452,597

$  448,720

$      3,877

$    409,161

$  424,267

$   (15,106)

Expenses

Wholly-owned properties

148,344

153,830

(5,486)

148,344

153,830

(5,486)

Fund II 

24,897

26,651

(1,754)

6,502

7,026

(524)

Unconsolidated joint ventures

-

-

-

1,689

10,658

(8,969)

Total expenses

$    173,241

$  180,481

$     (7,240)

$    156,535

$  171,514

$   (14,979)

NOI

$    279,356

$  268,239

$    11,117

$    252,626

$  252,753

$        (127)

Net margin

61.7%

59.8%

61.7%

59.6%

Same-store assets recurring GAAP NOI:

Total same-store GAAP revenue 

$    346,987

$  336,427

$    10,560

3.1%

$    303,644

$  294,134

$      9,510

3.2%

Non-recurring lease termination fee income

(847)

(871)

24

-2.8%

(847)

(852)

5

-0.6%

Recurring same-store revenue

346,140

335,556

10,584

3.2%

302,797

293,282

9,515

3.2%

Total same-store expenses

128,008

128,943

(935)

-0.7%

110,848

112,714

(1,866)

-1.7%

Recurring NOI - GAAP

$    218,132

$  206,613

$    11,519

5.6%

$    191,949

$  180,568

$    11,381

6.3%

Recurring net margin - GAAP

63.0%

61.6%

1.4%

63.4%

61.6%

1.8%

Same-store assets cash NOI:

Total same-store GAAP revenue 

$    346,987

$  336,427

$    10,560

3.1%

$    303,644

$  294,134

$      9,510

3.2%

Amortization of below market leases, net

(16,610)

(9,549)

(7,061)

73.9%

(17,408)

(10,509)

(6,899)

65.6%

Straight-line rents

(22,357)

(20,814)

(1,543)

7.4%

(21,784)

(20,391)

(1,393)

6.8%

Total same-store cash revenue

308,020

306,064

1,956

0.6%

264,452

263,234

1,218

0.5%

Total same-store expenses

128,008

128,943

(935)

-0.7%

110,848

112,714

(1,866)

-1.7%

NOI - cash

$    180,012

$  177,121

$      2,891

1.6%

$    153,604

$  150,520

$      3,084

2.0%

Net margin - cash

58.4%

57.9%

0.5%

58.1%

57.2%

0.9%

Same-store assets recurring cash NOI:

Total same-store cash revenue

$    308,020

$  306,064

$      1,956

0.6%

$    264,452

$  263,234

$      1,218

0.5%

Non-recurring lease termination fee income

(847)

(871)

24

-2.8%

(847)

(852)

5

-0.6%

Recurring same-store cash revenue

307,173

305,193

1,980

0.6%

263,605

262,382

1,223

0.5%

Total same-store expenses

128,008

128,943

(935)

-0.7%

110,848

112,714

(1,866)

-1.7%

Recurring NOI - cash

$    179,165

$  176,250

$      2,915

1.7%

$    152,757

$  149,668

$      3,089

2.1%

Recurring net margin - cash

58.3%

57.8%

0.5%

57.9%

57.0%

0.9%

*N/M - Not Meaningful

 

 

SOURCE Parkway Properties, Inc.



RELATED LINKS

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