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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 16, 1996.
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
(Exact name of registrant as specified in its charter)
California 1-9639 95-2565432
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
12011 San Vicente Boulevard, Suite 707
Los Angeles, California 90049
(Address of principal executive offices)
(310) 476-7793
(Registrant's telephone number)
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ITEM 5. OTHER EVENTS
Reference is made to the press release of Registrant, issued on January
16, 1996, which contains information meeting the requirements of this Item 5,
and which is incorporated herein by this reference. A copy of the press
release is attached to this Form 8-K as Exhibit "A."
The press release reports the unaudited financial results of Registrant
for the fourth quarter and fiscal year ended December 31, 1995. Audited
financial statements for the fiscal year ended December 31, 1995 will be
included as soon as they are available.
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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 hereunto duly authorized.
January 31, 1996 REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
By:
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Leroy E. Carlson
Chief Accounting Officer
for the Registrant
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EXHIBIT "A"
FOR IMMEDIATE RELEASE Contact: Jay W. Pauly, President & CEO
LeRoy E. Carlson, VP & CFO
(310) 476-7793
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
REPORTS FINANCIAL RESULTS FOR THE
FOURTH QUARTER AND FISCAL YEAR 1995
LOS ANGELES, January 16, 1996 -- Real Estate Investment Trust of California
(NYSE: RCT) reported financial results for the fourth quarter and fiscal year
ended December 31, 1995.
For the fourth quarter of 1995, net income was $2,126,000 vs. $2,549,000
before gains on sales of real estate ($9,378,000 in 1995 and $272,000 in
1994). Revenues for the quarter were $8,587,000 for 1995 vs. $8,467,000 for
1994. Funds from operations were $3,520,000, or $0.38 per share, compared to
$3,759,000, or $0.40 per share, for the same period in 1994. Funds from
operations and net income were adjusted by a one-time charge of $302,000, or
$0.03 per share, for environmental clean-up work required on two retail
centers as the result of soil and water contamination from a dry cleaning
facility at Santa Fe Springs Plaza (Santa Fe Springs, CA) and soil
contamination from a dry cleaners at Central Shopping Center (Ventura, CA).
For the year 1995, net income before gains on sales of real estate -- was
$9,848,000, or $1.05 per share, compared to $10,477,000, or $1.16 per share,
for 1994. Funds from operations increased 4% to a record $15,339,000, or
$1.64 per share, compared to $14,793,000, or $1.60 per share in 1994.
Operating revenues for 1995 increased 17% to $34,047,000 from $29,148,000 in
1994.
The Trust believes that funds from operations is an appropriate
supplemental measure of operating performance. FFO is calculated by adding
back non-cash depreciation and amortization to net income.
Jay W. Pauly, President and Chief Executive Officer of the Trust, stated,
"The improved operating results were generated from increased earnings in the
multifamily portfolio as well as improved revenue in some of the commercial
properties. Occupancy of the apartments was 95% in the fourth quarter. Rent
increases were generated in all of the Trust's multifamily communities outside
of southern California and San Diego County."
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Real Estate Investment Trust of California 4Q & FY 95 Results .......
January 16, 1996
The Trust continued its orderly disposition of the commercial portfolio
with the December 1995 sale of the 177,000-square-foot Target/Food 4 Less
Center in Oxnard, California for $10.3 million. The funds will be allocated
to a yet-to-be identified multifamily project through a tax-deferred exchange.
During the fourth quarter, the Trust also sold the 24-year old, 173-unit
Ocotillo Apartments in Phoenix for $3.7 million and purchased the 3-year old,
173-unit Canterbury Downs Apartment, in Sacramento for $9.4 million.
Previously, the Trust announced a regular cash dividend of $0.355 per
share, payable January 18, 1996 to shareholders of record on December 29,
1995.
On October 11, 1995, BRE Properties and Real Estate Investment Trust of
California announced the execution of a definitive agreement in which the two
companies will be merged, forming one of the largest multifamily real estate
investment trusts in the western United States.
The Trust is an equity-oriented, regionally focused, self-administered
real estate investment trust that invests in and manages quality income-
producing properties that offer attractive current returns and solid potential
for long-term appreciation.
The Trust holds 41 properties in California, Arizona and Nevada,
primarily apartment complexes. The multifamily portfolio now totals 3,655
units and represents more than 70% of the Trust's overall investment in real
estate.
NOTE: Current disclosure and investor information is available by
accessing the company's Internet Site at http://reitcal.com
(Table follows)
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FINANCIAL HIGHLIGHTS
(in thousands, except share data)
INCOME STATEMENT HIGHLIGHTS
<TABLE>
<CAPTION>
Quarter end Dec. 31,
1995 1994
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<S> <C> <C>
Revenues $ 8,587 $ 8,467
Net income (before gains on $ 2,126 $ 2,549
sales of real estate)
per share $ 0.23 $ 0.28
Net income $ 11,504 $ 2,821
per share $ 1.23 $ 0.31
Funds from Operations* $ 3,520 $ 3,759
per share $ 0.38 $ 0.40
Weighted average shares 9,371 9,263
outstanding (000)
Distributions to shareholders $ 3,327 $ 3,299
per share $ 0.355 $ 0.355
Twelve Months ended Dec. 31,
1995 1994
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Revenues $ 34,047 $ 29,148
Net income (before gains on
sales of real estate) $ 9,848 $ 10,477
per share $ 1.05 $ 1.16
Net income $ 19,226 $ 10,749
per share $ 2.06 $ 1.16
Funds from Operations* $ 15,339 $ 14,793
per share $ 1.64 $ 1.60
Weighted average shares
outstanding (000) 9,340 9,267
Distributions to shareholders $ 13,275 $ 12,746
per share $ 1.42 $ 1.375
BALANCE SHEET HIGHLIGHTS
At December 31, At December 31,
1995 1994
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Total assets $ 207,673 $ 198,965
Notes payable $ 95,424 $ 93,876
Shareholder's equity $ 112,250 $ 105,090
per share $ 11.98 $ 11.31
Shares outstanding 9,372 $ 9,294
</TABLE>
* Funds from Operations, computed as per National Association of Real Estate
Investment Trusts, Inc. standard, is calculated by adding back the non-cash
depreciation and amortization of Direct Finance Lease charges to net income.
The Trust believes that Funds from Operations is an appropriate supplemental
measure of operating performance.
