UNITED STATES
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): July 25, 1997
THE PRICE REIT, INC.
(Exact Name of Registrant as Specified in its Charter)
Maryland 1-13432 52-1746059
(State or Other Jurisdiction (Commission (IRS Employer
ofIncorporation) File Number) Identification No.)
7979 Ivanhoe Avenue, Suite 524 92037
La Jolla, California (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (619) 551-2320
None
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
On July 24, 1997, the Registrant issued the press release attached to this
report as Exhibit 99.1 and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
The following exhibit is filed with this report on Form 8-K:
Exhibit No. Description
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99.1 Press Release dated July 24, 1997
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.
THE PRICE REIT, INC.
Date: July 24, 1997 By: /GEORGE M. JEZEK/
----------------------
George M. Jezek
Chief Financial Officer
Exhibit Index
Exhibit No. Description
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99.1 Press Release dated July 24, 1997
The Price REIT, Inc.
Press Release
7/24/1997
The Price REIT, Inc. - Announces Record Revenues And FFO Per Share for 2nd
Quarter
SAN DIEGO, July 24 1997 - The Price REIT, Inc. announced its operating results
for the second quarter and six months ended June 30, 1997. Funds from operations
for the second quarter increased by approximately $2.5 million to $9.7 million,
up 34% from the $7.2 million reported last year. This amounted to $0.91 per
share for the current quarter, up from the $0.87 per share for the second
quarter last year. Net income for the current quarter was $5.7 million, up from
the $4.1 million reported for the comparable quarter last year. Net income per
share for the current quarter was $0.53 compared with $0.50 last year. Total
revenues increased by approximately 34% to $17.3 million compared with total
revenues of $12.9 million in the second quarter 1996.
For the six months ended June 30, 1997, funds from operations increased
approximately $4.1 million to $18.4 million up 29% from the $14.3 million
reported last year. This amounted to $1.76 per share for the current six months,
up from the $1.72 per share for the six months last year. Net income for the
current six months was $11.1 million compared with net income for the six months
ended June 30, 1996 of $8.2 million. Net income per share was $1.06 for six
months ended June 30, 1997, and $0.98 last year. Total revenues increased
approximately 24% to $32.6 million compared with total revenues of $26.3 million
for the six months ended June 30, 1996.
The increase in revenues and funds from operations can be attributed principally
to additional operating revenues received from acquisition properties as well as
previously owned properties. The Company continues to acquire new properties as
well as develop several additional properties. As previously reported, during
the recent six month period, eight new properties containing approximately 1.1
million square feet of gross leasable area were added to the portfolio at a cost
of approximately $108 million. These new additions, which are approximately 98%
leased, should initially add approximately $11.2 million in annual net operating
income.
Currently, the Company owns or has interests in 29 retail properties including
two retail projects under development. The total occupancy rate of the portfolio
is approximately 98%. The properties are located in ten states, of which
approximately 83% are located in four states: California (35%), Arizona (17%),
Texas (16%), and Virginia (15%). The properties are occupied by over 400
tenants, with eight national retail tenants occupying over 40% of the leasable
space. Two major tenants, Home Depot and Costco, occupy approximately 25% of the
total leasable space.
The statements in this release that relate to future plans, events or
performance are forward-looking statements. Actual results might differ
materially due to a variety of factors. Additional information about these
factors is contained in the company's filings with the Securities and Exchange
Commission, including the company's most recently filed Report on Form 10-Q
under the section entitled "Management's Discussion and Analysis of Financial
Condition and Results of Operations."
Consolidated Statements of Income
(In Thousands except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
------------------------------------------------
Revenue:
Rental income $16,589 $12,217 $30,697 $24,867
Management fees 73 263 144 539
Equity in earnings
of joint ventures 437 342 886 739
Interest and other
income 171 61 852 170
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Total revenue 17,270 12,883 32,579 26,315
Expenses:
Rental operations 1,305 925 2,610 2,353
Real estate taxes 1,862 1,122 3,329 2,355
General and
administrative 953 823 1,907 1,661
Depreciation 3,809 2,897 6,948 5,792
Interest 3,667 2,981 6,665 5,961
------------------------------------------------
Total expenses 11,596 8,748 21,459 18,122
------------------------------------------------
Net income $5,674 $4,135 $11,120 $8,193
================================================
Net income per share $0.53 $0.50 $1.06 $0.98
===== ===== ===== =====
Funds from Operations*
Net income $5,674 $4,135 $11,120 $8,193
Depreciation 3,809 2,897 6,948 5,792
Joint venture FFO
adjustment 182 206 354 318
------------------------------------------------
Funds from operations $9,665 $7,238 $18,422 $14,303
================================================
Funds from Operations
per share $0.91 $0.87 $1.76 $1.72
===== ===== ===== =====
Weighted average number
of shares outstanding 10,678 8,353 10,488 8,334
====== ===== ====== =====
* The Company computes Funds from Operations (FFO) in accordance with standards
established by the National Association of Real Estate Investment Trusts
(NAREIT).
Consolidated Balance Sheets
(In Thousands)
June 30, December 31,
1997 1996
------------------------------
Assets
Rental property, net $493,303 $380,482
Investment in joint ventures 19,443 19,202
Cash and cash equivalents 3,625 11,369
Deferred rent receivable 9,584 8,489
Secured note receivable 1,324 1,346
Other assets 8,182 7,183
------------------------------
Total assets $535,461 $428,071
==============================
Liabilities
Other liabilities 7,124 4,474
Senior notes payable 203,985 154,114
Unsecured line of credit 21,000 19,000
Secured notes payable 11,648 11,794
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Total liabilities 243,757 189,382
Minority interest 1,741 1,707
Stockholders' equity 289,963 236,982
------------------------------
Total liabilities & equity $535,461 $428,071
==============================
The Price REIT, Inc. is a self- administered and self-managed real estate
investment trust which is focused on the acquisition, development, management,
and redevelopment of retail power centers and community centers with invested
assets of approximately $526 million. The Company currently owns or has
interests in 31 properties consisting of 26 power and community centers, one
stand-alone retail warehouse, two projects under development, and two
undeveloped land parcels located in ten states containing a total of
approximately 6.2 million square feet of gross leasable area, with an overall
occupancy rate of approximately 98%.
