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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 1999.
SECURITY CAPITAL U.S. REALTY
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(Translation of Registrant's Name Into English)
25b boulevard Royal, L-2449, Luxembourg
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(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F ______________
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(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes No X
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-.)
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<PAGE>
Security Capital is filing the following material as an exhibit to
this Form 6-K. Each exhibit is incorporated by reference herein.
Exhibits.
99.1 Additional financial information for the period ended
31 March 1999.
99.2 Press Release dated 24 June 1999 announcing the
commencement of trading on the NYSE.
99.3 Press Release dated 29 June 1999 announcing an increase
in the share repurchase programme.
99.4 Press Release dated 30 June 1999 announcing shareholder
approval of amendments to articles of incorporation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
SECURITY CAPITAL U.S. REALTY
Dated: July 12, 1999 By: /s/ Jeffrey A. Cozad
------------------------------------
Jeffrey A. Cozad
Managing Director
EXHIBIT 99.1
ADDITIONAL FINANCIAL INFORMATION
The following interim financial information for the quarter ended
31 March 1999 is being provided because we have otherwise made public
information relating to revenues and income that is more current than the
information contained in our audited financial statements.
As you are aware, we account for our investments at fair value in
accordance with the U.S. specialised industry accounting rules prescribed
by the American Institute of Certified Public Accountants (AICPA) Audit and
Accounting Guide for Investment Companies. Under fair value accounting,
unrealised gains or losses are determined by comparing the fair value of
the securities held to the cost of those securities. Unrealised gains or
losses relating to changes in fair value of our investments are reported as
a component of net earnings. Deferred income taxes, if any, are recorded at
the applicable statutory rate as the estimate of taxes payable as if the
gains were realised. Under current tax laws, and in light of our operating
methods and plans, our investment gains generally are not subject to income
taxes.
For more detail on fair value accounting, please read Note 2 of
our Consolidated Financial Statements at 31 December 1998.
<PAGE>
<TABLE>
<CAPTION>
SECURITY CAPITAL U. S. REALTY
CONSOLIDATED STATEMENTS OF NET ASSETS
At 31 March 1999
(in thousands U. S. $ except per share amounts)
Unaudited
March
<S> 1999
ASSETS
Strategic investment positions at value: <C>
CarrAmerica (Cost $699,890) ................................................................. $ 631,063
City Center Retail (Cost $304,113)........................................................... 304,113
CWS Communities (Cost $155,563).............................................................. 155.563
Regency (Cost $759,794)...................................................................... 642,623
Storage USA (Cost $394,305).................................................................. 333,850
Urban Growth Property (Cost $181,082)........................................................ 181,082
Special opportunity positions at value:
Security Capital Group Incorporated (Cost $165,000).......................................... 116,139
Other special opportunity positions (Cost $330,791).......................................... 264,460
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Total investments..................................................................................... $ 2,628,893
Cash and cash equivalents............................................................................. 894
Accounts receivable and other......................................................................... 16,994
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TOTAL ASSETS.......................................................................................... $ 2,646,781
LIABILITIES
Accounts payable and accrued expenses................................................................. $ 9,367
Taxes payable......................................................................................... 1,558
Line of credit........................................................................................ 258,500
Convertible Notes..................................................................................... 373,904
TOTAL LIABILITIES..................................................................................... $ 643,329
TOTAL NET ASSETS (SHAREHOLDERS' EQUITY)............................................................... $ 2,003,452
Authorized 250,000,000 shares of $4.00 par value, 86,561,872 shares
issued and outstanding at 31 March 1999(1). ................................................. $ 346,247
Legal reserve......................................................................................... 30,375
Share premium account................................................................................. 1,749,159
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PAID-IN CAPITAL....................................................................................... $ 2,125,781
Undistributed net operating income................................................................... $ 161,304
Accumulated net realised gain........................................................................ 78,011
Unrealised (depreciation)/appreciation on strategic investment and special opportunity positions.... (361,644)
SHAREHOLDERS' EQUITY ................................................................................ $ 2,003,452
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Net Asset Value per share(1)........................................................................ $ 23.14
(1) Share and per share amounts have been restated to reflect the
reverse stock split which took effect 18 June 1999.
<PAGE>
<CAPTION>
SECURITY CAPITAL U.S. REALTY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended 31 March 1999 and 1998
(in thousands $ except per share amounts)
Unaudited
1999 1998
==== ====
<S>
REVENUES
Dividends from strategic investment positions (net of withholding tax): <C> <C>
CarrAmerica............................................................... $ 11,245 $ 10,546
CWS Communities........................................................... 1,108 --
Pacific Retail............................................................ 4,905 9,565
Regency................................................................... 4,583 4,252
Storage USA............................................................... 6,700 6,346
Urban Growth Property..................................................... 181 --
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$ 28,722 $ 30,709
Dividends from special opportunity positions (net of withholding tax):....... 2,855 3,521
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$ 31,607 $ 34,230
Interest income from affiliate............................................ 894 894
Interest income from non-affiliate and other income....................... 677 177
-------- ----------
TOTAL REVENUES............................................................ $ 33,178 $ 35,301
EXPENSES
Operating advisor fees ................................................... $ 8,131 $ 8,665
Custodian fees............................................................ 114 119
Directors fees............................................................ - 32
Professional expenses..................................................... 215 56
Administrative expenses................................................... 253 99
Amortisation of convertible notes deferred costs.......................... 394 --
Amortisation of formation expenses........................................ -- --
Formation expenses........................................................ -- --
Taxes..................................................................... 279 611
Line of credit arrangement and commitment fees............................ 52 569
Interest on line of credit................................................ 4,374 4,186
Interest on convertible notes............................................. 6,214 --
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TOTAL EXPENSES............................................................ $ 20,026 $ 14,337
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NET OPERATING INCOME...................................................... $ 13,152 $ 20,964
NET REALISED AND UNREALISED (LOSS)/GAIN ON
STRATEGIC INVESTMENT AND SPECIAL OPPORTUNITY
POSITIONS
Net realised gain on special opportunity positions........................ $ 580 $ 17,186
Net (decrease)/increase in appreciation on strategic investment and special (236,666) (92,837)
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opportunity positions.....................................................
NET (LOSS)/GAIN ON STRATEGIC INVESTMENT AND SPECIAL $ (236,086) $ (75,651)
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OPPORTUNITY POSITIONS.....................................................
(DECREASE)/INCREASE IN NET ASSETS RESULTING FROM $ (222,934) $ (54,687)
=========== ============
OPERATIONS................................................................
<PAGE>
<CAPTION>
SECURITY CAPITAL U.S. REALTY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended 31 March 1999 and 1998
(in thousands $ except per share amounts)
Unaudited
1999 1998
1999 1998
<S> ------ ------
Operating Activities: <C> <C>
(Decrease)/Increase in net assets resulting from operations.............. $ (222,934) $ (54,687)
Adjustments to reconcile (decrease)/increase in net assets resulting from
operations to net cash provided by operating activities:
Movement in unrealised gain.......................................... 236,666 92,837
Movement in accretion on convertible notes........................... -- --
Movement in convertible notes deferred costs......................... 394 --
Amortisation of formation expenses................................... -- --
Changes in operating assets and liabilities:
Accounts receivable and other...................................... 7,496 (13,756)
Interest receivable from affiliate................................. (894) (894)
Accounts payable and accrued expenses.............................. 2,021 3,516
Operating advisor fees payable..................................... (6,150) 1,421
Taxes payable...................................................... 253 206
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Net cash provided by operating activities........................ $ 16,852 $ 28,643
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Investing Activities:
Fundings in strategic investment positions:
CarrAmerica............................................................ $ (39) $ (4,918)
City Center Retail..................................................... (78) (15,113)
CWS Communities........................................................ (2,000) (35,857)
Pacific Retail......................................................... 524,038 (11)
Regency................................................................ (524,044) --
Storage USA............................................................ (33) (41,308)
Urban Growth Property.................................................. -- (25,109)
Fundings in Security Capital Group....................................... -- (142,500)
Fundings in other special opportunity positions, net..................... (15,760) (74,268)
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Net cash used in investing activities.............................. $ (18,916) $ (196,584)
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Financing Activities:
Net proceeds from share offerings........................................ $ -- $ --
Net proceeds from convertible notes offering............................. 3,964 --
Offering expenses charged against the share premium account.............. -- (5)
Drawdowns from line of credit............................................ (4,000) 167,000
Repayment of line of credit.............................................. -- --
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Net cash provided by financing activities $ (36) 166,695
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Net increase/(decrease) in cash and cash equivalents............... $ (2,100) $ (946)
Cash and cash equivalents, beginning of the year................... 2,994 1,970
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Cash and cash equivalents, end of the year......................... $ 894 $ 1,024
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Supplemental disclosure of cash flow information:
Tax paid................................................................. $ 2,141 $ 1,232
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Interest paid on borrowings.............................................. $ 22,987 $ 11,929
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</TABLE>
EXHIBIT 99.2
News Release For more information, contact:
Ms. Gwynne M. Murphy
+352 46 37 56-1
U.S. callers dial 011 352 46 37 56-1
SECURITY CAPITAL U.S. REALTY BEGINS
TRADING ON NEW YORK STOCK EXCHANGE
(24 June 1999) - Security Capital U.S. Realty (NYSE: RTY) announced that
its American Depositary Receipts (ADRs) began trading this morning on the
New York Stock Exchange (NYSE), under the ticker symbol "RTY." The
company's shares will continue to be listed and traded on the AEX Stock
Exchange in Amsterdam (ISIN-Code: LU0060100673).
Jeffrey A. Cozad, managing director, said, "Long term, we expect the NYSE
listing to unlock meaningful shareholder value as a larger universe of
global investors takes advantage of the opportunity to invest in the
company. SC-U.S. Realty currently trades at a 20+% discount to net asset
value, which is highly attractive to prospective investors given the
company's strong asset base, double-digit growth rate and solid,
investment-grade balance sheet."
SC-U.S. Realty is a research-driven, growth-orientated real estate company
focused on taking significant strategic investment positions in value-added
real estate operating companies based in the United States. SC-U.S.
Realty's strategic investments as of 31 March 1999 included ownership
positions and commitments to six U.S. real estate operating companies with
a combined market capitalisation of approximately $8.3 billion.
###
All monetary figures are expressed in United States currency.
In addition to historical information, this press release contains
forward-looking statements. These statements are based on current
expectations, estimates and projections about the industry and markets in
which Security Capital U.S. Realty operates, management's beliefs and
assumptions made by management. Forward-looking statements are not
guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Actual operating results may
be affected by changes in international, national or local economic
conditions, competitive market conditions, and conditions in the securities
markets, and therefore, may differ materially from what is expressed or
forecasted in this press release.
EXHIBIT 99.3
News Release For more information, contact:
Mr. W. Scott Hartman
+352 46 37 56-1
U.S. callers dial 011 352 46 37 56-1
SC-U.S. REALTY INCREASES
SHARE REPURCHASE PROGRAMME TO $200 MILLION
(29 June 1999) - SC-U.S. Realty (NYSE: RTY) (Amsterdam AEX Stock Exchange
ISIN-Code: LU0060100673) announced today that its Board of Directors has
authorised an increase in the company's share repurchase programme to $200
million. Since announcing the initial $100 million repurchase programme on
5 May 1999, the company has repurchased 6,030,255 shares for an aggregate
cost of $117,955,550, representing approximately 7.0% of the company's
shares outstanding. Additional share repurchases are expected to be made in
open market and privately negotiated transactions, depending on market
prices and other conditions, and may be discontinued at any time. If the
remaining approximately $82 million of the authorised $200 million
programme were fully executed, at current market prices, the repurchase in
aggregate would represent approximately 12.0% of the company's shares
outstanding prior to launching the original $100 million programme. The
12.0% would include the 7.0% already repurchased.
SC-U.S. Realty is a research-driven, growth-orientated real estate company
focused on taking significant strategic investment positions in value-added
real estate operating companies based in the United States. SC- U.S.
Realty's strategic investments as of 31 March 1999 included ownership
positions and commitments to six U.S. real estate operating companies with
a combined market capitalisation of approximately $8.3 billion.
News releases and company information are available on the company's
Internet web site at http://www.sc- usrealty.com.
###
All monetary figures are expressed in United States currency.
In addition to historical information, this press release contains
forward-looking statements. These statements are based on current
expectations, estimates and projections about the industry and markets in
which Security Capital U.S. Realty operates, management's beliefs and
assumptions made by management. Forward-looking statements are not
guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Actual operating results may
be affected by changes in international, national or local economic
conditions, competitive market conditions, and conditions in the securities
markets, and therefore, may differ materially from what is expressed or
forecasted in this press release.
EXHIBIT 99.4
News Release For more information, contact:
Ms. Gwynne M. Murphy
+352 46 37 56-1
U.S. callers dial 011 352 46 37 56-1
SC-U.S. REALTY OBTAINS SHAREHOLDER
APPROVAL OF AMENDMENTS TO ARTICLES OF INCORPORATION
(30 June 1999) - SC-U.S. Realty (NYSE: RTY) (Amsterdam AEX Stock Exchange
ISIN-Code: LU0060100673) today announced that its shareholders have
approved amendments to the company's Articles of Incorporation, including
certain matters relating to the listing of the company's American
Depositary Receipts on the New York Stock Exchange (which occurred on 24
June 1999).
The vote was confirmed at an Extraordinary General Meeting immediately
following the Annual General Meeting of Shareholders held on 30 June 1999.
Of the total shares voted, 98.3% were voted in favour of the amendments.
SC-U.S. Realty is a research-driven, growth-orientated real estate company
focused on taking significant strategic investment positions in value-added
real estate operating companies based in the United States. SC- U.S.
Realty's strategic investments as of 31 March 1999 included ownership
positions and commitments to six U.S. real estate operating companies with
a combined market capitalisation of approximately $8.3 billion.
News releases and company information are available on the company's
Internet web site at http://www.sc-usrealty.com.
- ------------------------------------------------
###
All monetary figures are expressed in United States currency.
In addition to historical information, this press release contains
forward-looking statements. These statements are based on current
expectations, estimates and projections about the industry and markets in
which Security Capital U.S. Realty operates, management's beliefs and
assumptions made by management. Forward-looking statements are not
guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Actual operating results may
be affected by changes in international, national or local economic
conditions, competitive market conditions, and conditions in the securities
markets, and therefore, may differ materially from what is expressed or
forecasted in this press release.
