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A:\BOWNE8K.WPD -May 29, 1997
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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) May 27, 1997
KOGER EQUITY, INC.
(Exact name of registrant as specified in its charter)
Florida 1-9997 59-2898045
(State of incorporation (Commission (IRS Employer
or organization) File Number) Identification No.)
3986 Boulevard Center Drive
Jacksonville, Florida 32207
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (904) 398-3403
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events.
Reference is made to Koger Equity, Inc. News Release and letter to
Shareholders, both of which are dated May 27, 1997, and are Exhibits 99(a) and
99(b), respectively, to this Report. These exhibits are incorporated herein by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit Number Description of Exhibit
99(a) Koger Equity, Inc. News Release, dated May 27, 1997.
99(b) Koger Equity, Inc. Letter to Shareholders, dated
May 27, 1997.
SIGNATURE
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.
KOGER EQUITY, INC.
Date: May 30, 1997 By: /s/MARY H. MCNEAL
Mary H. McNeal
Title: Assistant Secretary
EXHIBIT INDEX
The following designated exhibits are filed herewith:
Exhibit
99(a) Koger Equity, Inc. News Release, dated May 27, 1997.
99(b) Koger Equity, Inc. Letter to Shareholders, dated
May 27, 1997.
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EXHIBIT 99(a)
NEWS
KOGER EQUITY ANNOUNCES EXPANSION PLANS
JACKSONVILLE, FLORIDA, MAY 27, 1997 -- Koger Equity, Inc. (ASE:KE) announced
today that the Company has entered into contracts to purchase five buildings
totaling 330,000 square feet in three cities in which the Company currently
owns properties. The total purchase price of these five buildings is $22.7
million.
This announcement follows Koger's recent purchase of the three-building,
165,000 square foot Park Central Office Park in Greenville, South Carolina.
Victor Hughes, Chairman and Chief Executive Officer of the Company, stated,
"That purchase was the first time Koger Equity had purchased buildings
developed by someone other than the Koger Organization. It reflects the
Company's intent to aggressively grow by (1) maximizing net operating income
from existing operating properties, (2) constructing and developing new
buildings on its existing land, and (3) strategically acquiring existing
properties."
Hughes also announced that four additional buildings totaling 428,000 square
feet have been approved for construction. Development of these buildings in
Greensboro, Orlando, Memphis and San Antonio will begin immediately.
During the remainder of 1997, the Company expects to begin construction on an
additional 200,000 square feet in its existing office centers and to purchase
additional buildings totaling more than 650,000 square feet.
"This is a very exciting time for our Company," said Hughes. "These additions
to our property account will increase it by 24 percent. Upon lease-up, these
new properties will produce about $35 million in additional rents, generating a
34 percent increase in our current rent stream, to approximately $140 million."
"The Board of Directors declared a $0.10 quarterly dividend at its meeting on
May 20, doubling the previous dividend rate. I anticipate that the payout
rate in 1998 will increase significantly as the Company's taxable income
increases."
This news release contains forward-looking statements. The actual results of
operations could differ materially from those projected because of factors
affecting financial markets, reactions of the Company's existing and
prospective investors, the ability of the Company to identify and execute
development projects and acquisition opportunities, the ability of the Company
to renew and enter into new leases on favorable terms, and other risk factors.
See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Cautionary Statement Relevant to Forward-Looking Information for
Purpose of the 'Safe Harbor' Provisions of the Private Securities Litigation
Reform Act of 1995" in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1996.
# # #
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EXHIBIT 99(b)
May 27, 1997
To the Shareholders:
I am pleased to advise you that the Board of Directors of Koger
Equity, Inc., at its meeting on May 20, 1997, declared a quarterly dividend of
$0.10 per share to be paid on August 6, 1997, to shareholders of record on July
3, 1997. This is a 100% increase over the $0.05 dividend paid on May 6. This
dividend increase is the result of an increase in profitability of the Company.
Management anticipates that the dividend payout rate will increase
significantly in 1998 as the Company's taxable income increases.
At the Company's Annual Meeting of Shareholders held on May 20, the
twelve incumbent directors were reelected. The members of the Koger Equity
Board of Directors are: D. Pike Aloian; Benjamin C. Bishop, Jr.; Irvin H.
Davis; David B. Hiley; Victor A. Hughes, Jr. (Chairman); G. Christian Lantzsch;
William L. Mack; Lee S. Neibart; W. Edward Scheetz; George F. Staudter; S.D.
Stoneburner and James C. Teagle.
We are also very pleased to announce that Koger Equity has purchased
the Park Central Office Park situated on the southwest corner of I-385 and
Pleasantburg Drive in Greenville, South Carolina, for $14 million. The
development includes three office buildings containing 165,000 square feet,
plus five acres of land for future office development. This acquisition
increases our market presence in Greenville from eight buildings containing
357,000 square feet to eleven buildings totaling 522,000 square feet. The
purchase of Park Central brings the total buildings owned, under construction
or managed by the Koger organization to
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341, totaling more than 15.5 million feet in 21 markets in the Southeast and
Southwest.
This is a significant event in the Koger organization, marking the
first time our company has purchased, instead of developing, an office park.
This purchase signals a new direction in our company's growth plans. In
addition to the purchase of the Park Central Office Park, the Company has
entered into contracts to purchase five other buildings totaling 330,000 square
feet in three cities in which we currently own properties. The total purchase
price of these five buildings is $22.7 million.
With an environment of improving market conditions, we plan to
utilize our increasing cash flow and existing credit facilities to expand in
growth markets through additional acquisitions and the construction of new
buildings in our existing office parks, as evidenced by the six buildings,
totaling 481,000 feet, presently under development and construction.
Four additional buildings totaling 428,000 square feet also have been
approved for construction. Development of these buildings in Greensboro,
Orlando, Memphis and San Antonio will begin immediately.
During the remainder of 1997, the Company expects to begin
construction on an additional 200,000 square feet in our existing office
centers and to purchase additional buildings totaling more than 650,000 square
feet.
This is an exciting time for our Company. The additions to our
property account described above will increase it by 24 percent. Upon
lease-up, these new properties will produce about $35 million in additional
rents, generating a 34 percent increase in our current rent stream, to
approximately $140 million. I believe we can look forward to further improving
our financial capacity and accelerating the Company's earnings growth in 1997,
as demonstrated by our outstanding first quarter.
We will continue to keep you advised as we progress throughout the
year.
Cordially,
/s/VICTOR A. HUGHES, JR.
Victor A. Hughes, Jr.
Chairman and
Chief Executive Officer
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This letter contains forward-looking statements. The actual results of
operations could differ materially from those projected because of factors
affecting financial markets, reactions of the Company's existing and
prospective investors, the ability of the Company to identify and execute
development projects and acquisition opportunities, the ability of the Company
to renew and enter into new leases on favorable terms, and other risk factors.
See "Management's Discussion and Analysis of Financial Condition and Results of
Operations - Cautionary Statement Relevant to Forward-Looking Information for
Purpose of the 'Safe Harbor' Provisions of the Private Securities Litigation
Reform Act of 1995" in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1996.
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