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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT TO APPLICATION OR REPORT
FILED PURSUANT TO SECTION, 12, 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
CARRAMERICA REALTY CORPORATION
(formerly Carr Realty Corporation)
(Exact name of registrant as specified in its charter)
Amendment No. 1
The undersigned registrant hereby amends Item 7(b) of its Current
Report on Form 8-K filed with the Commission on November 15, 1996 as set forth
in the pages attached hereto to file an unaudited pro forma condensed
consolidated balance sheet and statement of operations reflecting the
acquisition by registrant of the NELO/Orchard Portfolio, comprised of 21 office
properties in North San Jose, California, for an aggregate purchase price of
approximately $124 million, including the assumption of approximately $41
million in debt.
Date: December 19, 1996
CARRAMERICA REALTY CORPORATION
By: /s/ Brian K. Fields
------------------------
Chief Financial Officer
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information.
CarrAmerica Realty Corporation hereby amends Item 7(b) of its
Current Report on Form 8-K filed with the Commission on November 15, 1996 as
set forth in the pages attached hereto to file an unaudited pro forma condensed
consolidated balance sheet and statement of operations reflecting the
acquisition by registrant of the NELO/Orchard Portfolio, comprised of 21
properties containing an aggregate of approximately 1 million square feet
located in North San Jose, California.
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CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES PRO FORMA
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
On November 6, 1996, CarrAmerica Realty Corporation (the Company) acquired 21
buildings, containing a total of approximately 1,014,000 square feet of office
space, referred to as the NELO/Orchard Portfolio, in the North San Jose,
California sub-market of the area commonly referred to as Silcon Valley. The
aggregate purchase price for the NELO/Orchard Portfolio was approximately $124
million, and was paid through a combination of cash, the assumption of
approximately $41 million in debt, and approximately $7 million in other
liabilities. In October 1996, the Company consummated an offering of Series A
Cumulative Convertible Preferred Shares that raised net proceeds of
approximately $43 million. The net proceeds of the October offering were used
to pay down indebtedness under its line of credit, thereby increasing the
Company's borrowing capacity.
This unaudited pro forma Condensed Consolidated Balance Sheet is
presented as if the aforementioned transactions had been consummated on
September 30, 1996. In management's opinion, all adjustments necessary to
reflect the effects of the aforementioned transactions have been made.
This unaudited pro forma Condensed Consolidated Balance Sheet is
not necessarily indicative of what the Company's actual financial position
would have been at September 30, 1996, had the transactions occurred on that
date, nor does it purport to represent the future financial position of the
Company.
<TABLE>
<CAPTION>
At September 30, 1996 (Unaudited)
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Pro Forma Adjustments
-----------------------------------
Series A Acquisition of
Perferred Stock NELO/Orchard Pro Forma
Historical (A) Offering (B) Portfolio (C) Consolidated
--------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
ASSETS
Rental property, net $ 906,342 $ - $ 123,850 (1) $ 1,030,192
Development property 40,449 - - 40,449
Restricted and unrestricted cash 22,882 - - 22,882
Other assets 74,235 - (1,200)(2) 73,035
--------------- ----------------- ---------------- -----------------
Total assets $ 1,043,908 $ - $ 122,650 $ 1,166,558
=============== ================= ================ =================
LIABILITIES
Mortgages and notes payable $ 426,069 $ (42,915) $ 115,480 (3) $ 498,634
Other liabilities 20,480 - 7,170 (4) 27,650
--------------- ----------------- ---------------- -----------------
Total liabilities 446,549 (42,915) 122,650 526,284
Minority interest 51,611 - - 51,611
STOCKHOLDERS' EQUITY
Preferred stock - 17 - 17
Common stock 355 - - 355
Additional paid-in capital 588,684 42,898 - 631,582
Dividends in excess of earnings (43,291) - - (43,291)
--------------- ----------------- ---------------- -----------------
Total stockholders' equity 545,748 42,915 - 588,663
--------------- ----------------- ---------------- -----------------
Total liabilities and
stockholders equity $ 1,043,908 $ - $ 122,650 $ 1,166,558
=============== ================= ================ =================
</TABLE>
Notes:
(A) Reflects the Company's historical consolidated balance sheet as of
September 30, 1996.
(B) Reflects the issuance of 1,740,000 Series A Cumulative Convertible
Preferred Shares at the price of $25 per share. Transaction costs of
$585 were incurred.
The Company used all of the proceeds to pay down amounts outstanding
under its Line of Credit.
(C) Reflects the following pro forma adjustments related to the NELO/Orchard
Portfolio:
(1) total acquisiton costs of $123,850;
(2) use of the Company's purchase deposit of $1,200
(3) the assumption of existing debt ($40,927) and a draw on the Line of
Credit ($74,553); and
(4) the assumption of other liabilities ($7,170).
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CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<TABLE>
<CAPTION>
For the nine months ended September 30, 1996 (Unaudited)
-----------------------------------------------------------------
Pro Forma Adjustments
-------------------------------
Series A Acquisition of
Preferred Stock NELO/Orchard Pro Forma
Historical (A) Offering (B) Portfolio (C) Consolidated
-------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Real estate operating revenue:
Rental revenue $ 100,639 $ - $ 8,589 (1) $ 109,228
Real estate service income 9,265 - - 9,265
-------------- ------------- ------------- --------------
Total revenues 109,904 - 8,589 118,493
-------------- ------------- ------------- --------------
Real estate operating expenses:
Property operating expenses 33,371 - 2,333 (1) $ 35,704
Interest expense 21,857 (2,413) 6,726 (2) 26,170
General and administrative 10,661 - - 10,661
Depreciation and amortization 25,744 - 1,836 (3) 27,580
-------------- ------------- ------------- --------------
Total operating expenses 91,633 (2,413) 10,895 100,115
-------------- ------------- ------------- --------------
Real estate operating income 18,271 2,413 (2,306) 18,378
Other operating income (expense) 1,610 - - 1,610
-------------- ------------- ------------- --------------
Income before minority interest 19,881 2,413 (2,306) 19,988
-------------- ------------- ------------- --------------
Minority interest (3,895) - - (3,895)
-------------- ------------- ------------- --------------
Income from continuing operations $ 15,986 $ 2,413 $ (2,306) $ 16,093
============== ============= ============= ==============
Earnings per common share
from continuing operations (D) $ 0.70 $ 0.63
============== ==============
</TABLE>
<TABLE>
<CAPTION>
For the year ended December 31, 1995 (Unaudited)
-----------------------------------------------------------------
Pro Forma Adjustments
---------------------------------
Series A Acquisition of
Preferred Stock NELO/Orchard Pro Forma
Historical (A) Offering (B) Portfolio (C) Consolidated
-------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Real estate operating revenue:
Rental revenue $ 89,539 $ - $ 10,407 (1) $ 99,946
Real estate service income 11,315 - - 11,315
-------------- ------------- ------------- -------------
Total revenues 100,854 - 10,407 111,261
-------------- ------------- ------------- -------------
Real estate operating expenses:
Property operating expenses 31,579 - 3,302 (1) 34,881
Interest expense 21,873 (3,349) 9,195 (2) 27,719
General and administrative 10,711 - - 10,711
Depreciation and amortization 18,495 - 2,448 (3) 20,943
-------------- ------------- ------------- -------------
Total operating expenses 82,658 (3,349) 14,945 94,254
-------------- ------------- ------------- -------------
Real estate operating income 18,196 3,349 (4,538) 17,007
Other operating income (expense) (912) - - (912)
-------------- ------------- ------------- -------------
Income before minority interest 17,284 3,349 (4,538) 16,095
-------------- ------------- ------------- -------------
Minority interest (5,217) - - (5,217)
-------------- ------------- ------------- -------------
Income from continuing operations $ 12,067 $ 3,349 $ (4,538) $ 10,878
============== ============= ============= =============
Earnings per common share
from continuing operations (D) $ 0.90 $ 0.67
============== =============
</TABLE>
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CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
NOTES TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30, 1996
and the Year Ended December 31, 1995
(Unaudited)
Adjustments (dollars in thousands):
(A) Reflects the Company's historical consolidated statements of operations
for the nine months ended September 30, 1996 and the year ended December
31, 1995.
(B) Pro forma adjustment reflects the reduction in interest expense
associated with the pay down of amounts outstanding under its line of
credit with the proceeds from the Series A Preferred Stock Offering.
(C) Pro forma adjustments for the purchase of the NELO/Orchard Portfolio
reflect:
(1) the historical operating activity of the properties acquired;
(2) the additional interest expense on the line of credit
($4,194 of interest costs for the nine months ended September 30,
1996 and $5,819 of interest costs in 1995) and interest expense on
debt assumed ($2,532 for the nine months ended September 30, 1996
and $3,376 in 1995); and
(3) the depreciation expense for the acquisition based on the new
accounting basis for the rental property acquired.
(D) Based upon 27,723,006 and 18,156,687 pro forma shares of Common Stock
outstanding and common stock equivalents on a weighted average basis
during the nine months ended September 30, 1996 and the year ended
December 31, 1995, respectively. Net income and weighted average shares
outstanding have been adjusted for certain minority interests which have
a dilutive effect on earnings per share.
