Parkway Properties Announces Stock Transactions And Update on its Strategic Initiatives

Apr 04, 2001, 01:00 ET from Parkway Properties, Inc.

        JACKSON, Miss., April 4 /PRNewswire/ -- Parkway Properties, Inc.
 (NYSE:   PKY) announced today the sale of its equity interests in other Real
 Estate Investment Trusts (REITs) held through its RSVP (REIT Significant Value
 Program) initiative.  A nonrecurring gain of approximately $1,603,000 ($.17
 per diluted share) will be recognized on the sales in the first quarter and
 included in Funds from Operations (FFO) in accordance with NAREIT's definition
 of FFO.  Including the sales previously recorded in 2000, the RSVP program has
 realized a total nonrecurring gain of approximately $2,183,000, and an
 internal rate of return of 20.3%, on an average eight month holding period.
 As of April 4, 2001 the Company does not own any stock in other REITs.
      The Company also announced that since January 1, 2001, it has re-purchased
 485,000 shares of its own Common Stock at an average price of $28.95.  Since
 June 1998, the Company has purchased 1,999,293 shares of its common stock,
 which represents approximately 18% of the Common Stock outstanding when the
 buyback program was initiated on June 30, 1998.  The Company has the authority
 to purchase an additional  500,707 shares under its existing authorization
 from its Board of Directors.
      Parkway announced the closing of the cash sale of its 75,000 square foot
 office property in Birmingham, Alabama for $5 million. The sales price
 represents $67 per square foot and an unleveraged yield (cap rate) of
 approximately 9.5% based on current net operating income. The Company expects
 to record a small loss for financial reporting purposes on the sale in the
 first quarter.
      In addition, the Company announced the sale of 2.8 acres of land adjacent
 to its assets in Deerfield Beach, Florida for a gross sales price of $683,000.
      Steven G. Rogers, President and Chief Executive Officer stated, "These four
 announcements represent execution of previously announced initiatives. The
 returns on the RSVP program are testimony to the opportunites available in
 purchasing good real estate through the public market. The stock repurchase
 program is part of our effort to allocate our capital among various
 alternatives to generate above average returns to our shareholders.  We are
 selling assets, such as Birmingham, where we are not self-managed and do not
 have critical mass, and focusing on larger, institutional markets.  Finally,
 with the sale of the Deerfield Beach land, we are nearing completion of our
 planned liquidation of our land holdings."
      Parkway Properties, Inc. is a self-administered real estate investment
 trust specializing in operations, acquisition, ownership, management, and
 leasing of office properties. The Company is geographically focused on the
 Southeastern and Southwestern United States. Parkway owns or has an interest
 in 48 office properties located in 10 states with an aggregate of
 approximately 7,127,000 square feet of leasable space as of April 4, 2001.
 The Company also offers fee based real estate services through its wholly
 owned subsidiary, Parkway Realty Services.
      Parkway Properties, Inc.'s press releases and additional information about
 the Company are available on the World Wide Web at www.pky.com .
 
     Contact:  Steven G. Rogers
               President & Chief Executive Officer
 
               Marshall A. Loeb
               Chief Financial Officer
               (601) 948-4091
 
 

SOURCE Parkway Properties, Inc.
        JACKSON, Miss., April 4 /PRNewswire/ -- Parkway Properties, Inc.
 (NYSE:   PKY) announced today the sale of its equity interests in other Real
 Estate Investment Trusts (REITs) held through its RSVP (REIT Significant Value
 Program) initiative.  A nonrecurring gain of approximately $1,603,000 ($.17
 per diluted share) will be recognized on the sales in the first quarter and
 included in Funds from Operations (FFO) in accordance with NAREIT's definition
 of FFO.  Including the sales previously recorded in 2000, the RSVP program has
 realized a total nonrecurring gain of approximately $2,183,000, and an
 internal rate of return of 20.3%, on an average eight month holding period.
 As of April 4, 2001 the Company does not own any stock in other REITs.
      The Company also announced that since January 1, 2001, it has re-purchased
 485,000 shares of its own Common Stock at an average price of $28.95.  Since
 June 1998, the Company has purchased 1,999,293 shares of its common stock,
 which represents approximately 18% of the Common Stock outstanding when the
 buyback program was initiated on June 30, 1998.  The Company has the authority
 to purchase an additional  500,707 shares under its existing authorization
 from its Board of Directors.
      Parkway announced the closing of the cash sale of its 75,000 square foot
 office property in Birmingham, Alabama for $5 million. The sales price
 represents $67 per square foot and an unleveraged yield (cap rate) of
 approximately 9.5% based on current net operating income. The Company expects
 to record a small loss for financial reporting purposes on the sale in the
 first quarter.
      In addition, the Company announced the sale of 2.8 acres of land adjacent
 to its assets in Deerfield Beach, Florida for a gross sales price of $683,000.
      Steven G. Rogers, President and Chief Executive Officer stated, "These four
 announcements represent execution of previously announced initiatives. The
 returns on the RSVP program are testimony to the opportunites available in
 purchasing good real estate through the public market. The stock repurchase
 program is part of our effort to allocate our capital among various
 alternatives to generate above average returns to our shareholders.  We are
 selling assets, such as Birmingham, where we are not self-managed and do not
 have critical mass, and focusing on larger, institutional markets.  Finally,
 with the sale of the Deerfield Beach land, we are nearing completion of our
 planned liquidation of our land holdings."
      Parkway Properties, Inc. is a self-administered real estate investment
 trust specializing in operations, acquisition, ownership, management, and
 leasing of office properties. The Company is geographically focused on the
 Southeastern and Southwestern United States. Parkway owns or has an interest
 in 48 office properties located in 10 states with an aggregate of
 approximately 7,127,000 square feet of leasable space as of April 4, 2001.
 The Company also offers fee based real estate services through its wholly
 owned subsidiary, Parkway Realty Services.
      Parkway Properties, Inc.'s press releases and additional information about
 the Company are available on the World Wide Web at www.pky.com .
 
     Contact:  Steven G. Rogers
               President & Chief Executive Officer
 
               Marshall A. Loeb
               Chief Financial Officer
               (601) 948-4091
 
 SOURCE  Parkway Properties, Inc.

RELATED LINKS

http://www.parkwayco.com