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EXHIBIT 99(a)
[KOGER LETTERHEAD]
KOGER EQUITY, INC.
8880 Freedom Crossing Trail
Jacksonville, Florida 32256
Main Telephone # 904 - 732-1000
Fax (904) 538-8879
NEWS
KOGER EQUITY REPORTS THIRD QUARTER RESULTS
JACKSONVILLE, FLORIDA--NOVEMBER 13, 2000--Koger Equity, Inc. (the "Company")
(NYSE:KE) today reported results for the quarter ended September 30, 2000.
Thomas J. Crocker, Chief Executive Officer of the Company, said, "Funds from
Operations ("FFO") for the third quarter were $0.58 per share, an increase of
approximately 2% from the third quarter of 1999. FFO for the nine months was
$1.43 per share, a decrease of 17% from the corresponding period in 1999. The
first half of 2000 included one-time charges for severance and other costs of
$0.38 per share. Before these charges, FFO would have been $1.81 per share,
approximately a 5% increase from the nine month period in 1999."
FINANCIAL HIGHLIGHTS
- Total rental and other rental services revenues increased $1.6 million
(up 4.1%) for the quarter ended September 30, 2000, compared to the
same period last year. For the nine months ended September 30, 2000,
rental and other rental services revenues increased $7.9 million (up
6.8%) compared to the same period last year.
- In the quarter ended September 30, 2000, net income decreased $2.2
million (down 19%) compared to the same period last year. This
decrease was due primarily to the reduction in gain on sale or
disposition of assets. For the nine months ended September 30, 2000,
net income decreased $7.9 million (down 27.7%) compared to the same
period in 1999. Excluding one-time charges, net income would have
increased by $3.5 million over the first nine months of 1999.
- Funds from operations ("FFO") increased $59,000 for the quarter ended
September 30, 2000, compared to September 30, 1999. For the nine
months ended September 30, 2000, FFO decreased $8.3 million compared
to the same period in 1999. Excluding one-time charges, FFO would have
increased $2.4 million (4.9%).
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FINANCIAL HIGHLIGHTS (continued)
- On a per diluted share/unit basis, FFO increased 1.8%, to $0.58 in the
third quarter 2000, from $0.57 for the third quarter of 1999. For the
nine months ended September 30, 2000, FFO per diluted share/unit
decreased 17.3% to $1.43 from $1.73 for the same period in 1999.
Excluding one-time charges, FFO per diluted share/unit would have been
$1.81 (up 4.6%).
- At September 30, 2000, the debt-to-total-market capitalization ratio
of the Company was approximately 42%.
- During the third quarter, the Company's Board of Directors declared a
dividend of $0.35 per share.
- During the first nine months, the company repurchased 1,209,980 shares
of its common stock.
LEASING ACTIVITY
- Significant leasing activity for the third quarter included:
- 48,900 feet with State of Florida - Department of Insurance
in Tallahassee, Florida.
- The average rental rate on new leases signed during the first nine
months was $20.58 per usable square foot and the weighted average term
of these leases was 77 months.
- The Company's average rental rate on its entire portfolio increased by
6.3% to $17.87, from $16.81 per square foot at September 30, 1999.
DEVELOPMENT ACTIVITY
- At September 30, 2000, two buildings containing approximately 181,000
feet in two markets were under construction and were 35% pre-leased.
Currently, Koger Equity owns 20 suburban office parks and four freestanding
buildings, containing 11.4 million feet, located in 13 cities in the Southeast
and Southwest. The properties owned on September 30, 2000, including
acquisitions and new development, were 90% leased. Excluding the four buildings
which were in the lease-up period at September 30, 2000, the remainder of the
Company's buildings were on average 92% leased.
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For more information about Koger Equity, Inc., please visit our website at
www.koger.com. You may also obtain a copy of the Company's third quarter 2000
Supplemental Information by contacting Investor Relations, at 904/732-1000, or
on our website.
The foregoing message contains forward-looking statements concerning 2000. The
actual results of operations for 2000 could differ materially from those
projected because of factors affecting the 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/A for the Fiscal Year Ended December 31, 1999.
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KOGER EQUITY, INC.
Selected Income Information
(In Thousands except per Share Data)
<TABLE>
<CAPTION>
For the For the
Three Months Ended Nine Months Ended
-------------------- ------------------------
9/30/00 9/30/99 9/30/00 9/30/99
------- ------- -------- --------
<S> <C> <C> <C> <C>
Rental and other rental services revenues $40,750 $39,157 $124,287 $116,340
Total revenues 41,774 40,458 126,372 119,276
Property operations expense 16,267 16,272 47,964 46,240
Depreciation and amortization expense 8,760 8,445 25,886 23,734
Mortgage and loan interest expense 6,882 5,301 20,559 16,313
General and administrative expense 2,001 2,192 16,088 6,246
Gain on sale or disposition of assets 2,033 3,861 6,437 3,865
Net income $ 9,346 $11,538 $ 20,541 $ 28,412
Earnings per share:
Basic $ 0.35 $ 0.43 $ 0.77 $ 1.07
Diluted $ 0.35 $ 0.43 $ 0.76 $ 1.05
Weighted average shares:
Basic 26,710 26,725 26,707 26,664
Diluted 26,920 27,101 26,991 27,003
Funds from operations:
Net income $ 9,346 $11,538 $ 20,541 $ 28,412
Depreciation - real estate 7,889 7,204 23,348 21,007
Amortization - deferred tenant costs 500 874 1,431 1,702
Amortization - goodwill 43 42 128 127
Minority interest 361 250 992 926
Gain on sale or disposition:
Operating properties (1,709) (3,861) (6,385) (3,861)
Non-operating assets (324) -- (52) (4)
------- ------- -------- --------
Funds from operations $16,106 $16,047 $ 40,003 $ 48,309
======= ======= ======== ========
Weighted average shares/units outstanding - diluted 27,920 28,101 27,991 28,003
Funds from operations, per diluted share/unit $ 0.58 $ 0.57 $ 1.43 $ 1.73
</TABLE>
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