Burnham Pacific Announces Year-End 2000 Results

Apr 02, 2001, 01:00 ET from Burnham Pacific Properties, Inc.

    SAN DIEGO, April 2 /PRNewswire/ -- Burnham Pacific Properties, Inc.
 (NYSE:   BPP) today announced financial results for the fourth quarter and year
 ended December 31, 2000.  Net income available to common stockholders for this
 fourth quarter was $1,691,000, or $0.05 per share, as compared to net income
 of $653,000, or $0.02 per share, for the quarter ended December 31, 1999.  For
 the year ended December 31, 2000, net income (loss) available to common
 stockholders was a net loss of $41,245,000, or a loss of $1.45 per share, as
 compared to net income of $12,487,000, or $0.39 per share, for 1999.
     The year-over-year decline in net income was primarily attributable to a
 third quarter impairment write-off taken in connection with the Company's plan
 to liquidate, lower revenues resulting from asset sales in 1999 and 2000, a
 decrease in lease termination fees and management fee income, an increase in
 borrowing costs, and costs associated with the Company's pursuit of its
 strategic alternatives and the implementation of its Plan of Complete
 Liquidation and Dissolution.
     Results for 2000 were also negatively impacted by legal and litigation
 settlement expenses related to a verdict against the Company in favor of a
 tenant, severance expenses related to the resignation of former executive
 officers of the Company, and a restructuring charge related to the termination
 of the CalPERS joint venture.
     The Company has historically reported Funds From Operations ("FFO")
 because it is generally accepted in the REIT industry as a meaningful
 supplemental measure of performance.  However, because the Company is
 liquidating, it no longer believes that FFO is meaningful to understanding its
 performance and is therefore no longer reporting FFO.
 
     Review of Results
     For the fourth quarter ended December 31, 2000, revenues decreased by
 $1,855,000 to $29,900,000 from $31,755,000 in the fourth quarter of 1999.
 This decrease was primarily attributable to a decrease of $1,020,000 in
 management fee income resulting from the termination of the Company's joint
 venture with CalPERS in September 2000, and a decrease in interest and other
 income of $875,000.  Including the one-time expense items referenced below,
 net income available to common stockholders was $1,691,000, or $0.05 per
 share, as compared to $653,000, or $0.02 per share, for the prior-year period.
 Net income for the fourth quarter of 2000 included a net gain on sales of real
 estate of $5,660,000, while net income for the fourth quarter of 1999 included
 a net gain on sales of real estate of $872,000.  The 2000 and 1999 three-month
 periods were unfavorably impacted by costs of $3,052,000 and $1,876,000,
 respectively, associated with the Company's pursuit of its strategic
 alternatives.  The fourth quarter of 2000 was also unfavorably impacted by
 legal and litigation settlement expenses of $337,000 related to a verdict
 against the Company in favor of a tenant.  If these one-time charges were
 excluded, net income available to common stockholders before gain on sales of
 real estate in the fourth quarter of 2000 was a net loss of $580,000, or a
 loss of $0.02 per share, as compared to net income of $1,657,000, or $0.05 per
 share, in the fourth quarter of 1999.
     For the twelve months ended December 31, 2000, revenues decreased
 $11,600,000 to $121,210,000 from $132,810,000 for the twelve months ended
 December 31, 1999.  This decrease was primarily the result of asset
 dispositions, a decrease in management fee income of $4,310,000, and a
 decrease in lease termination fees of $3,200,000.  Including the one-time
 expense items referenced below, net income (loss) available to common
 stockholders for 2000 was a net loss of $41,245,000, or a loss of $1.45 per
 share, as compared to net income of $12,487,000, or $0.39 per share, for 1999.
 Net income for 2000 included a net gain on sales of real estate of $6,886,000,
 while net income for 1999 included a net gain on sales of real estate of
 $10,371,000.  The 2000 and 1999 periods were unfavorably impacted by costs of
 $7,694,000 and $4,548,000, respectively, associated with the Company's pursuit
 of its strategic alternatives.  Net income for 2000 was also unfavorably
 impacted by a third quarter impairment write-off of $32,330,000 taken in
 contemplation of the Company's plan to liquidate, a restructuring charge of
 $1,921,000 for severance and related costs for employees affected by the
 termination of the Company's joint venture with CalPERS, legal and litigation
 settlement expenses of $3,902,000 related to a verdict against the Company in
 favor of a tenant.  Net income for 1999 was unfavorably impacted by a
 $1,353,000 restructuring charge related to the Company's decision to outsource
 its property management function to third-party providers, $748,000 in costs
 associated with the abandonment of certain prospective acquisition
 transactions, $2,200,000 in impairment write-offs related to the sales of two
 office building properties, and $1,866,000 recognized as the cumulative effect
 of a change in accounting principle.  If these one-time charges were excluded,
 net income (loss) available to common stockholders before gain on sales of
 real estate for 2000 was a net loss of $2,284,000, or a loss of $0.07 per
 share, compared to net income of $12,831,000, or $0.40 per share, in 1999.
 
     Adjustment to Liquidation Basis of Accounting
     As a result of the adoption of the Plan of Liquidation and its approval by
 the Company's stockholders, the Company adopted the liquidation basis of
 accounting for all periods subsequent to December 15, 2000.  Under the
 liquidation basis of accounting, assets are stated at their estimated net
 realizable values, and liabilities, including the reserve for estimated costs
 during the period of liquidation, are stated at their anticipated settlement
 amounts.  The estimated value of real estate held for sale is based on current
 contracts, estimates as determined by independent appraisals or other
 indications of sales value, net of estimated sales costs and capital
 expenditures of approximately $21,351,000 anticipated during the liquidation
 period.  The estimated valuations of other assets and liabilities under the
 liquidation basis of accounting are based on management estimates and
 assumptions as of December 31, 2000.  The financial results for 2000 are
 presented separately for the period prior to the adoption of the liquidation
 basis of accounting (January 1, 2000 to December 15, 2000) and subsequent to
 its adoption (December 16, 2000 to December 31, 2000).  To permit comparisons
 of the financial results for the year ended December 31, 2000 to those of the
 prior year, the amounts for 2000 have been combined in the Consolidated
 Statements of Income (Loss).
     On December 16, 2000, in accordance with the liquidation basis of
 accounting, assets were adjusted to estimated net realizable value and
 liabilities were adjusted to estimated settlement amounts, including estimated
 costs associated with carrying out the liquidation.  The net adjustment at
 December 31, 2000, required to convert from the going concern (historical
 costs) basis to the liquidation basis of accounting, amounted to a negative
 adjustment of $85,228,000, which is included in the December 31, 2000
 Consolidated Statement of Changes in Net Assets (liquidation basis).
 Significant increases (decreases) in the carrying value of net assets are
 summarized, as follows:
 
      Increase to reflect estimated net realizable values of
       certain real estate properties                            $28,388,000
      Deferral of appreciated gain on real estate properties     (15,584,000)
      Decrease to reflect estimated net realizable value of
       real estate                                               (56,004,000)
      Write-off of other assets                                  (21,802,000)
      Increase to reflect net realizable value of investments in
       unconsolidated subsidiaries                                 1,763,000
      Deferral of appreciated gain on investments in
       unconsolidated subsidiaries                                (1,763,000)
      Reserve for estimated costs during the period of
       liquidation                                               (19,116,000)
      Liquidation Preference on Series 2000-C Preferred Stock
       and Preferred Units                                        (6,000,000)
      Write-off of deferred debt costs                              (364,000)
      Effect on minority interest of adjustment to liquidation
       basis                                                       5,254,000
      Adjustment to reflect the change to liquidation basis of
       accounting                                               $(85,228,000)
 
     Adjusting assets to estimated net realizable value resulted in the
 write-up of certain real estate properties and the write-down of other real
 estate properties.  The anticipated gains associated with the write-up of
 certain real estate properties have been deferred until their sales, and the
 anticipated losses associated with the write-down of other certain real estate
 properties have been included in the Consolidated Statement of Changes of Net
 Assets.  The write-down of other assets included amounts for unamortized lease
 commissions and straight-line rents.
     Under liquidation accounting, the Company is required to estimate and
 accrue the costs associated with executing the Plan of Liquidation.  These
 amounts can vary significantly due to, among other things, the timing and
 realized proceeds from property sales, the costs of retaining personnel and
 trustees to oversee the liquidation, including the costs of insurance, the
 timing and amounts associated with discharging known and contingent
 liabilities and the costs associated with cessation of the Company's
 operations.  These costs are estimates and are expected to be paid during the
 liquidation period.
 
     Dispositions
     From the adoption of the Plan of Liquidation by the Company's Board of
 Director's in August 2000 through March 31, 2001, the Company has sold
 9 properties.
     During the fourth quarter of 2000, the Company sold five shopping centers
 and one office building.  In October 2000, the Company sold the Anacomp office
 building for approximately $21,300,000.  On December 5, 2000, the Company sold
 the Meridian Village and San Diego Factory Outlet Center for an aggregate of
 approximately $48,700,000.  On December 29, 2000, the Company sold La Mancha,
 the Plaza at Puente Hills and Valley Central shopping center for an aggregate
 of approximately $109,900,000.  Meridian Village, San Diego Factory Outlet, La
 Mancha, the Plaza at Puente Hills, and Valley Central represent a portion of a
 portfolio of properties targeted for sale under an agreement with The
 Prudential Life Insurance Company of America.
     In February 2001, the Company sold the Puget Park and Cameron Park
 shopping centers for approximately $18,953,000.  In March 2001, the Company
 sold the Richmond shopping center for approximately $10,381,000.  These
 transactions also represent a portion of a portfolio of properties targeted
 for sale under the agreement with Prudential.
 
     This press release contains forward-looking statements that predict or
 indicate future events or trends or that do not relate to historical matters.
 There are a number of important factors that could cause actual events to
 differ materially from those indicated by such forward-looking statements.
 These factors include, but are not limited to, the following: we may be
 unsuccessful in implementing our liquidation strategy; we may not be able to
 complete the liquidation in a timely manner or realize proceeds from the sales
 of assets in amounts that will enable us to provide currently anticipated
 liquidating distributions to our stockholders; we have outstanding
 indebtedness maturing at various times during 2001, and we may be unable to
 repay, refinance, replace or extend any or all of this indebtedness on terms
 that are favorable to the Company, or at all; and occupancy rates and market
 rents may be adversely affected by economic and market conditions which are
 beyond our control, including imbalances in supply and demand for retail
 shopping center space and the financial condition of our tenants.
     You should also read the risk factors that are discussed in the Company's
 periodic reports filed with the Securities and Exchange Commission, including
 the risk factors that were disclosed in our Form 10-K which will be filed with
 the SEC on April 3, 2001.  You should be aware that the risk factors contained
 in that Form 10-K may not be exhaustive.  Therefore, we recommend that you
 read the information in that Form 10-K together with other reports and
 documents that we file with the SEC from time to time, including our Forms
 10-K, 10-Q and 8-K and Proxy Statements, which may supplement, modify,
 supersede or update those risk factors.
 
 
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
                      (in thousands, except per share amounts)
 
                                   Quarter Ended            Year to Date
                              12/31/2000   12/31/1999  12/31/2000   12/31/1999
     Revenues
       Rents                   $30,136      $30,096    $119,448     $126,091
       Fee Income                   --        1,020         768        5,078
       Interest and Other Income  (236)         639         994        1,641
     Total Revenues             29,900       31,755     121,210      132,810
 
     Costs and Expenses
       Interest                 10,804        9,172      42,823       38,209
       Rental Operating          9,129        8,914      35,345       35,832
       Provision for Bad Debt    1,044          604       1,829        1,231
       General & Administrative    897        1,901       8,906        7,581
       Restructuring Charge       (223)          --       1,921        1,353
       Litigation                1,852          727       5,465        1,215
       Costs Associated with
        Unsolicited Proposal
        and Pursuit of Strategic
        Alternatives             3,052        1,876       7,694        4,548
     Abandoned Acquisition Costs    --           --          --          748
       Impairment Write-Off         --           --      32,330        2,200
       Depreciation &
        Amortization             4,914        6,737      24,874       26,364
     Total Costs and Expenses   31,469       29,931     161,187      119,281
 
     Income from Operations
      before Income from
      Unconsolidated Subsidiaries,
      Minority Interest, Gain
      (Loss) on Sales of Real
      Estate and Cumulative
      Effect of Change in
      Accounting Principle      (1,569)       1,824     (39,977)      13,529
     Income from Unconsolidated
      Subsidiaries                   1          431         100        1,077
     Minority Interest            (201)      (1,074)     (1,587)      (5,024)
     Gain (Loss) on Sales of
      Real Estate                5,660          872       6,886       10,371
 
     Income before Cumulative
      Effect of Change in
      Accounting Principle       3,891        2,053     (34,578)      19,953
     Cumulative Effect of Change
      in Accounting Principle       --           --          --       (1,866)
     Net Income                  3,891        2,053     (34,578)      18,087
     Dividends Paid to
      Preferred Stockholders    (2,200)      (1,400)     (6,667)      (5,600)
     Income Available to
      Common Stockholders      $ 1,691         $653    $(41,245)     $12,487
 
     Basic Earnings Per Share:
       Income before Cumulative
        Effect of Change in
        Accounting Principle    $ 0.05        $0.02      $(1.45)       $0.45
       Cumulative Effect of
        Change in Accounting
        Principle                   --           --          --        (0.06)
     Net Income                 $ 0.05        $0.02      $(1.45)       $0.39
 
     Diluted Earnings Per Share:
       Income before Cumulative
        Effect of Change in
        Accounting Principle    $ 0.05        $0.02      $(1.45)       $0.45
       Cumulative Effect of
        Change in Accounting
        Principle                   --           --          --        (0.06)
     Net Income                 $ 0.05        $0.02      $(1.45)       $0.39
 
     Weighted Average Shares
      Outstanding           32,336,000   32,268,274  32,336,000   32,062,331
 
 
 
                          BURNHAM PACIFIC PROPERTIES, INC.
            CONSOLIDATED STATEMENT OF NET ASSETS AS OF DECEMBER 31, 2000
                                (LIQUIDATION BASIS)
               AND CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1999
                               (GOING CONCERN BASIS)
                      (in thousands, except per share amounts)
 
                                                  2000         1999
     ASSETS
     Real Estate-Net                                        $970,800
     Real Estate Held for Sale                  $743,527       8,737
     Cash and Cash Equivalents                     5,110      11,119
     Restricted Cash                               9,004       9,827
     Receivables-Net                               8,467       8,413
     Investment in Unconsolidated Subsidiaries     5,131       3,650
     Other Assets                                  1,993      22,469
       Total                                     773,232   1,035,015
 
     LIABILITIES
     Accounts Payable and Other Liabilities       21,235      29,224
     Tenant Security Deposits                      2,246       2,606
     Notes Payable                               349,237     400,410
     Line of Credit Advances                      51,267     138,420
     Reserve for Estimated Costs During the
      Period of Liquidation                       19,116
     Deferred Gain on Real Estate Assets          17,347
     Total Liabilities                           460,448     570,660
 
     Minority Interest                            19,837      66,350
 
     Mandatorily Redeemable Series 2000-C
      Convertible Preferred Stock                115,500
 
     STOCKHOLDERS' EQUITY
     Preferred Stock, Par Value $.01/share,
      10,000,000 and 5,000,000 Shares
      Authorized at December 31, 2000 and 1999,
      respectively; 4,800,000 Shares Designated
      as Series 2000-C Convertible Preferred,
      and 4,800,000 Shares Designated as Series
      1997-A Convertible Preferred at December 31,
      2000 and 1999, respectively; 4,400,000 and
      2,800,000 Shares Outstanding at December 31,
      2000 and 1999, respectively                                 28
 
     Common Stock, Par Value $.01/share,
      90,000,000 and 95,000,000 Shares Authorized,
      32,336,622 and 32,273,546 Shares Outstanding
      at December 31, 2000 and 1999, respectively                323
 
     Paid-in Capital in Excess of Par                        528,811
 
     Dividends Paid in Excess of Net Income                 (131,157)
       Total Stockholders' Equity                            398,005
 
     Total Liabilities and Stockholders' Equity           $1,035,015
 
     NET ASSETS IN LIQUIDATION                  $177,447
 
 
 
     For further information, please contact Daniel B. Platt, Chief Financial
 Officer of Burnham Pacific Properties, Inc., 619-652-4700, fax, 619-652-4711,
 dbplatt@bpac.com.
 
 

SOURCE Burnham Pacific Properties, Inc.
    SAN DIEGO, April 2 /PRNewswire/ -- Burnham Pacific Properties, Inc.
 (NYSE:   BPP) today announced financial results for the fourth quarter and year
 ended December 31, 2000.  Net income available to common stockholders for this
 fourth quarter was $1,691,000, or $0.05 per share, as compared to net income
 of $653,000, or $0.02 per share, for the quarter ended December 31, 1999.  For
 the year ended December 31, 2000, net income (loss) available to common
 stockholders was a net loss of $41,245,000, or a loss of $1.45 per share, as
 compared to net income of $12,487,000, or $0.39 per share, for 1999.
     The year-over-year decline in net income was primarily attributable to a
 third quarter impairment write-off taken in connection with the Company's plan
 to liquidate, lower revenues resulting from asset sales in 1999 and 2000, a
 decrease in lease termination fees and management fee income, an increase in
 borrowing costs, and costs associated with the Company's pursuit of its
 strategic alternatives and the implementation of its Plan of Complete
 Liquidation and Dissolution.
     Results for 2000 were also negatively impacted by legal and litigation
 settlement expenses related to a verdict against the Company in favor of a
 tenant, severance expenses related to the resignation of former executive
 officers of the Company, and a restructuring charge related to the termination
 of the CalPERS joint venture.
     The Company has historically reported Funds From Operations ("FFO")
 because it is generally accepted in the REIT industry as a meaningful
 supplemental measure of performance.  However, because the Company is
 liquidating, it no longer believes that FFO is meaningful to understanding its
 performance and is therefore no longer reporting FFO.
 
     Review of Results
     For the fourth quarter ended December 31, 2000, revenues decreased by
 $1,855,000 to $29,900,000 from $31,755,000 in the fourth quarter of 1999.
 This decrease was primarily attributable to a decrease of $1,020,000 in
 management fee income resulting from the termination of the Company's joint
 venture with CalPERS in September 2000, and a decrease in interest and other
 income of $875,000.  Including the one-time expense items referenced below,
 net income available to common stockholders was $1,691,000, or $0.05 per
 share, as compared to $653,000, or $0.02 per share, for the prior-year period.
 Net income for the fourth quarter of 2000 included a net gain on sales of real
 estate of $5,660,000, while net income for the fourth quarter of 1999 included
 a net gain on sales of real estate of $872,000.  The 2000 and 1999 three-month
 periods were unfavorably impacted by costs of $3,052,000 and $1,876,000,
 respectively, associated with the Company's pursuit of its strategic
 alternatives.  The fourth quarter of 2000 was also unfavorably impacted by
 legal and litigation settlement expenses of $337,000 related to a verdict
 against the Company in favor of a tenant.  If these one-time charges were
 excluded, net income available to common stockholders before gain on sales of
 real estate in the fourth quarter of 2000 was a net loss of $580,000, or a
 loss of $0.02 per share, as compared to net income of $1,657,000, or $0.05 per
 share, in the fourth quarter of 1999.
     For the twelve months ended December 31, 2000, revenues decreased
 $11,600,000 to $121,210,000 from $132,810,000 for the twelve months ended
 December 31, 1999.  This decrease was primarily the result of asset
 dispositions, a decrease in management fee income of $4,310,000, and a
 decrease in lease termination fees of $3,200,000.  Including the one-time
 expense items referenced below, net income (loss) available to common
 stockholders for 2000 was a net loss of $41,245,000, or a loss of $1.45 per
 share, as compared to net income of $12,487,000, or $0.39 per share, for 1999.
 Net income for 2000 included a net gain on sales of real estate of $6,886,000,
 while net income for 1999 included a net gain on sales of real estate of
 $10,371,000.  The 2000 and 1999 periods were unfavorably impacted by costs of
 $7,694,000 and $4,548,000, respectively, associated with the Company's pursuit
 of its strategic alternatives.  Net income for 2000 was also unfavorably
 impacted by a third quarter impairment write-off of $32,330,000 taken in
 contemplation of the Company's plan to liquidate, a restructuring charge of
 $1,921,000 for severance and related costs for employees affected by the
 termination of the Company's joint venture with CalPERS, legal and litigation
 settlement expenses of $3,902,000 related to a verdict against the Company in
 favor of a tenant.  Net income for 1999 was unfavorably impacted by a
 $1,353,000 restructuring charge related to the Company's decision to outsource
 its property management function to third-party providers, $748,000 in costs
 associated with the abandonment of certain prospective acquisition
 transactions, $2,200,000 in impairment write-offs related to the sales of two
 office building properties, and $1,866,000 recognized as the cumulative effect
 of a change in accounting principle.  If these one-time charges were excluded,
 net income (loss) available to common stockholders before gain on sales of
 real estate for 2000 was a net loss of $2,284,000, or a loss of $0.07 per
 share, compared to net income of $12,831,000, or $0.40 per share, in 1999.
 
     Adjustment to Liquidation Basis of Accounting
     As a result of the adoption of the Plan of Liquidation and its approval by
 the Company's stockholders, the Company adopted the liquidation basis of
 accounting for all periods subsequent to December 15, 2000.  Under the
 liquidation basis of accounting, assets are stated at their estimated net
 realizable values, and liabilities, including the reserve for estimated costs
 during the period of liquidation, are stated at their anticipated settlement
 amounts.  The estimated value of real estate held for sale is based on current
 contracts, estimates as determined by independent appraisals or other
 indications of sales value, net of estimated sales costs and capital
 expenditures of approximately $21,351,000 anticipated during the liquidation
 period.  The estimated valuations of other assets and liabilities under the
 liquidation basis of accounting are based on management estimates and
 assumptions as of December 31, 2000.  The financial results for 2000 are
 presented separately for the period prior to the adoption of the liquidation
 basis of accounting (January 1, 2000 to December 15, 2000) and subsequent to
 its adoption (December 16, 2000 to December 31, 2000).  To permit comparisons
 of the financial results for the year ended December 31, 2000 to those of the
 prior year, the amounts for 2000 have been combined in the Consolidated
 Statements of Income (Loss).
     On December 16, 2000, in accordance with the liquidation basis of
 accounting, assets were adjusted to estimated net realizable value and
 liabilities were adjusted to estimated settlement amounts, including estimated
 costs associated with carrying out the liquidation.  The net adjustment at
 December 31, 2000, required to convert from the going concern (historical
 costs) basis to the liquidation basis of accounting, amounted to a negative
 adjustment of $85,228,000, which is included in the December 31, 2000
 Consolidated Statement of Changes in Net Assets (liquidation basis).
 Significant increases (decreases) in the carrying value of net assets are
 summarized, as follows:
 
      Increase to reflect estimated net realizable values of
       certain real estate properties                            $28,388,000
      Deferral of appreciated gain on real estate properties     (15,584,000)
      Decrease to reflect estimated net realizable value of
       real estate                                               (56,004,000)
      Write-off of other assets                                  (21,802,000)
      Increase to reflect net realizable value of investments in
       unconsolidated subsidiaries                                 1,763,000
      Deferral of appreciated gain on investments in
       unconsolidated subsidiaries                                (1,763,000)
      Reserve for estimated costs during the period of
       liquidation                                               (19,116,000)
      Liquidation Preference on Series 2000-C Preferred Stock
       and Preferred Units                                        (6,000,000)
      Write-off of deferred debt costs                              (364,000)
      Effect on minority interest of adjustment to liquidation
       basis                                                       5,254,000
      Adjustment to reflect the change to liquidation basis of
       accounting                                               $(85,228,000)
 
     Adjusting assets to estimated net realizable value resulted in the
 write-up of certain real estate properties and the write-down of other real
 estate properties.  The anticipated gains associated with the write-up of
 certain real estate properties have been deferred until their sales, and the
 anticipated losses associated with the write-down of other certain real estate
 properties have been included in the Consolidated Statement of Changes of Net
 Assets.  The write-down of other assets included amounts for unamortized lease
 commissions and straight-line rents.
     Under liquidation accounting, the Company is required to estimate and
 accrue the costs associated with executing the Plan of Liquidation.  These
 amounts can vary significantly due to, among other things, the timing and
 realized proceeds from property sales, the costs of retaining personnel and
 trustees to oversee the liquidation, including the costs of insurance, the
 timing and amounts associated with discharging known and contingent
 liabilities and the costs associated with cessation of the Company's
 operations.  These costs are estimates and are expected to be paid during the
 liquidation period.
 
     Dispositions
     From the adoption of the Plan of Liquidation by the Company's Board of
 Director's in August 2000 through March 31, 2001, the Company has sold
 9 properties.
     During the fourth quarter of 2000, the Company sold five shopping centers
 and one office building.  In October 2000, the Company sold the Anacomp office
 building for approximately $21,300,000.  On December 5, 2000, the Company sold
 the Meridian Village and San Diego Factory Outlet Center for an aggregate of
 approximately $48,700,000.  On December 29, 2000, the Company sold La Mancha,
 the Plaza at Puente Hills and Valley Central shopping center for an aggregate
 of approximately $109,900,000.  Meridian Village, San Diego Factory Outlet, La
 Mancha, the Plaza at Puente Hills, and Valley Central represent a portion of a
 portfolio of properties targeted for sale under an agreement with The
 Prudential Life Insurance Company of America.
     In February 2001, the Company sold the Puget Park and Cameron Park
 shopping centers for approximately $18,953,000.  In March 2001, the Company
 sold the Richmond shopping center for approximately $10,381,000.  These
 transactions also represent a portion of a portfolio of properties targeted
 for sale under the agreement with Prudential.
 
     This press release contains forward-looking statements that predict or
 indicate future events or trends or that do not relate to historical matters.
 There are a number of important factors that could cause actual events to
 differ materially from those indicated by such forward-looking statements.
 These factors include, but are not limited to, the following: we may be
 unsuccessful in implementing our liquidation strategy; we may not be able to
 complete the liquidation in a timely manner or realize proceeds from the sales
 of assets in amounts that will enable us to provide currently anticipated
 liquidating distributions to our stockholders; we have outstanding
 indebtedness maturing at various times during 2001, and we may be unable to
 repay, refinance, replace or extend any or all of this indebtedness on terms
 that are favorable to the Company, or at all; and occupancy rates and market
 rents may be adversely affected by economic and market conditions which are
 beyond our control, including imbalances in supply and demand for retail
 shopping center space and the financial condition of our tenants.
     You should also read the risk factors that are discussed in the Company's
 periodic reports filed with the Securities and Exchange Commission, including
 the risk factors that were disclosed in our Form 10-K which will be filed with
 the SEC on April 3, 2001.  You should be aware that the risk factors contained
 in that Form 10-K may not be exhaustive.  Therefore, we recommend that you
 read the information in that Form 10-K together with other reports and
 documents that we file with the SEC from time to time, including our Forms
 10-K, 10-Q and 8-K and Proxy Statements, which may supplement, modify,
 supersede or update those risk factors.
 
 
                      CONSOLIDATED STATEMENTS OF INCOME (LOSS)
                      (in thousands, except per share amounts)
 
                                   Quarter Ended            Year to Date
                              12/31/2000   12/31/1999  12/31/2000   12/31/1999
     Revenues
       Rents                   $30,136      $30,096    $119,448     $126,091
       Fee Income                   --        1,020         768        5,078
       Interest and Other Income  (236)         639         994        1,641
     Total Revenues             29,900       31,755     121,210      132,810
 
     Costs and Expenses
       Interest                 10,804        9,172      42,823       38,209
       Rental Operating          9,129        8,914      35,345       35,832
       Provision for Bad Debt    1,044          604       1,829        1,231
       General & Administrative    897        1,901       8,906        7,581
       Restructuring Charge       (223)          --       1,921        1,353
       Litigation                1,852          727       5,465        1,215
       Costs Associated with
        Unsolicited Proposal
        and Pursuit of Strategic
        Alternatives             3,052        1,876       7,694        4,548
     Abandoned Acquisition Costs    --           --          --          748
       Impairment Write-Off         --           --      32,330        2,200
       Depreciation &
        Amortization             4,914        6,737      24,874       26,364
     Total Costs and Expenses   31,469       29,931     161,187      119,281
 
     Income from Operations
      before Income from
      Unconsolidated Subsidiaries,
      Minority Interest, Gain
      (Loss) on Sales of Real
      Estate and Cumulative
      Effect of Change in
      Accounting Principle      (1,569)       1,824     (39,977)      13,529
     Income from Unconsolidated
      Subsidiaries                   1          431         100        1,077
     Minority Interest            (201)      (1,074)     (1,587)      (5,024)
     Gain (Loss) on Sales of
      Real Estate                5,660          872       6,886       10,371
 
     Income before Cumulative
      Effect of Change in
      Accounting Principle       3,891        2,053     (34,578)      19,953
     Cumulative Effect of Change
      in Accounting Principle       --           --          --       (1,866)
     Net Income                  3,891        2,053     (34,578)      18,087
     Dividends Paid to
      Preferred Stockholders    (2,200)      (1,400)     (6,667)      (5,600)
     Income Available to
      Common Stockholders      $ 1,691         $653    $(41,245)     $12,487
 
     Basic Earnings Per Share:
       Income before Cumulative
        Effect of Change in
        Accounting Principle    $ 0.05        $0.02      $(1.45)       $0.45
       Cumulative Effect of
        Change in Accounting
        Principle                   --           --          --        (0.06)
     Net Income                 $ 0.05        $0.02      $(1.45)       $0.39
 
     Diluted Earnings Per Share:
       Income before Cumulative
        Effect of Change in
        Accounting Principle    $ 0.05        $0.02      $(1.45)       $0.45
       Cumulative Effect of
        Change in Accounting
        Principle                   --           --          --        (0.06)
     Net Income                 $ 0.05        $0.02      $(1.45)       $0.39
 
     Weighted Average Shares
      Outstanding           32,336,000   32,268,274  32,336,000   32,062,331
 
 
 
                          BURNHAM PACIFIC PROPERTIES, INC.
            CONSOLIDATED STATEMENT OF NET ASSETS AS OF DECEMBER 31, 2000
                                (LIQUIDATION BASIS)
               AND CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1999
                               (GOING CONCERN BASIS)
                      (in thousands, except per share amounts)
 
                                                  2000         1999
     ASSETS
     Real Estate-Net                                        $970,800
     Real Estate Held for Sale                  $743,527       8,737
     Cash and Cash Equivalents                     5,110      11,119
     Restricted Cash                               9,004       9,827
     Receivables-Net                               8,467       8,413
     Investment in Unconsolidated Subsidiaries     5,131       3,650
     Other Assets                                  1,993      22,469
       Total                                     773,232   1,035,015
 
     LIABILITIES
     Accounts Payable and Other Liabilities       21,235      29,224
     Tenant Security Deposits                      2,246       2,606
     Notes Payable                               349,237     400,410
     Line of Credit Advances                      51,267     138,420
     Reserve for Estimated Costs During the
      Period of Liquidation                       19,116
     Deferred Gain on Real Estate Assets          17,347
     Total Liabilities                           460,448     570,660
 
     Minority Interest                            19,837      66,350
 
     Mandatorily Redeemable Series 2000-C
      Convertible Preferred Stock                115,500
 
     STOCKHOLDERS' EQUITY
     Preferred Stock, Par Value $.01/share,
      10,000,000 and 5,000,000 Shares
      Authorized at December 31, 2000 and 1999,
      respectively; 4,800,000 Shares Designated
      as Series 2000-C Convertible Preferred,
      and 4,800,000 Shares Designated as Series
      1997-A Convertible Preferred at December 31,
      2000 and 1999, respectively; 4,400,000 and
      2,800,000 Shares Outstanding at December 31,
      2000 and 1999, respectively                                 28
 
     Common Stock, Par Value $.01/share,
      90,000,000 and 95,000,000 Shares Authorized,
      32,336,622 and 32,273,546 Shares Outstanding
      at December 31, 2000 and 1999, respectively                323
 
     Paid-in Capital in Excess of Par                        528,811
 
     Dividends Paid in Excess of Net Income                 (131,157)
       Total Stockholders' Equity                            398,005
 
     Total Liabilities and Stockholders' Equity           $1,035,015
 
     NET ASSETS IN LIQUIDATION                  $177,447
 
 
 
     For further information, please contact Daniel B. Platt, Chief Financial
 Officer of Burnham Pacific Properties, Inc., 619-652-4700, fax, 619-652-4711,
 dbplatt@bpac.com.
 
 SOURCE  Burnham Pacific Properties, Inc.