<PAGE>
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) November 15, 1999
CarrAmerica Realty Corporation
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Maryland 1-11706 52-1796339
- --------------------------- ------------ ----------------------
State or Other Jurisdiction (Commission (IRS Employer
of Incorporation File Number) Identification Number)
1850 K Street, NW, Washington, DC 20006
- --------------------------------- ----------
State or Other Jurisdiction (Zip Code)
The Registrant's telephone number, including area code: (202) 729-1000
Exhibit Index is on page 4
<PAGE>
FORM 8-K
ITEM 5 Other Events
Attached hereto as Exhibit 99.1 is a copy of certain Supplemental
Information included in the Company's press release, dated November 5, 1999
ITEM 7 Financial Statements and Exhibits
(c) Exhibits
Exhibit
Number
-------
99.1 Press Release, November 5, 1999 untitled "Supplemental
Information".
2
<PAGE>
EX-99.1
Press Release Supplemental Data
CarrAmerica(R)
America's Workplace(R)
THIRD QUARTER 1999
Supplemental Operating and Financial Data
[Photo of Building appears here]
For the three and nine months ending September 30, 1999
All dollar amounts shown in this report are in U.S. dollars unless otherwise
noted.
This supplemental Operating and Financial Data is not an offer to sell or
solicitation to buy any securities of the Company.
Any offers to sell or solicitations to buy any securities of the Company
shall be made by means of a prospectus.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
CORPORATE OVERVIEW
<S> <C>
The Company................................................................................. 1
Board of Directors / Operating Committee / Research Coverage ............................... 2
Regional Offices / Investor Relations / Information Requests ............................... 3
FINANCIAL HIGHLIGHTS
Key Quarterly Financial Data................................................................ 4
Consolidated Balance Sheet.................................................................. 5
Statement of Operations..................................................................... 6
FFO Statement............................................................................... 7
Same Store Results and Analysis............................................................. 8
Statements of EBITDA........................................................................ 9
Financial Ratios............................................................................ 10
Share and Operating Partnership Unit Data .................................................. 11
Debt Capitalization Summary ................................................................ 12
SEGMENT ANALYSIS
Core Operating Properties
-------------------------
Current Summary of Operating Properties..................................................... 13-16
Occupancy Summary and Lease Roll-over Schedule.............................................. 17
Top 25 Tenants by Rent...................................................................... 18
Development
-----------
Development Activity by Market.............................................................. 19-20
Land Held for Development Schedule.......................................................... 21
HQ Global
---------
Condensed Balance Sheet..................................................................... 22
Condensed Income Statement.................................................................. 23
Schedule of Executive Suites Centers........................................................ 24
</TABLE>
<PAGE>
CORPORATE OVERVIEW
<PAGE>
THE COMPANY
- -----------
CarrAmerica Realty Corporation (the "Company") is a self-administered and self-
managed equity real estate investment trust ("REIT"), organized under the laws
of Maryland, which owns, develops, acquires and operates office properties. The
Company's office properties are located primarily in 14 suburban markets across
the United States. In addition, the Company's affiliate HQ Global Workplaces,
Inc., previously referred to as Omni Offices, Inc., ("HQ Global") and
OmniOffices (UK) Limited ("Omni UK/Europe"), are engaged in the business of
leasing commercial office space in the form of executive office suites and
business services. HQ Global and Omni UK/Europe offered short-term leases and
service packages at 263 business centers located in over 80 cities in 17
countries as of September 30, 1999.
CURRENT PORTFOLIO (as of 9/30/99)
- ---------------------------------
258 Properties
23.0 Million Square Feet
CARRAMERICA MISSION STATEMENT
- -----------------------------
Our primary goal is to excel in meeting the needs of our customers by providing
built environments of the highest quality and services that continue to set new
standards of excellence. The core values that infuse our efforts are quality,
integrity, a sense of community and a genuine commitment to people.
UNSECURED SENIOR DEBT RATINGS
- -----------------------------
Duff & Phelps: BBB
Moody's: Baa3
Standard & Poor's: BBB
WEIGHTED AVERAGE OCCUPANCY (year-to-date)
- --------------------------
96.9%
REGIONAL DISTRIBUTION (as of 9/30/99)
- -------------------------------------
<TABLE>
<CAPTION>
Based on Based on
NOI Square Footage
-------------------------------------------
<S> <C> <C>
Pacific Region 40.2% 40.1%
Southeast Region 27.6% 24.3%
Central Region 19.4% 21.2%
Mountain Region 12.8% 14.4%
</TABLE>
DEVELOPMENT ACTIVITY (stabilized 1/1/99 9/30/99)
- --------------------
The Company has placed in service the following developed properties stabilized
during the year:
<TABLE>
<CAPTION>
Square Cost ($ in
Property Footage thousands)
________ -----------------------------------
<S> <C> <C>
Pen Exec 1 100,626 $ 18,990
Panorama III 136,850 16,012
Embassy Row 500 75,711 13,647
Towne Ctr 1 41,551 5,958
Parkway North Six 91,604 13,133
Royal Ridge 1 102,404 9,284
Fremont Technology Park 3 54,153 7,238
Wasatch Corp Ctr 18 49,727 4,631
Clarify Corp Ctr 2, 3, 4 193,536 34,102
Tollway Plaza I 174,912 25,979
Four Gateway 137,709 17,532
Reston East & West 323,821 38,620
Riata Crossing 1 81,472 6,974
Riata Crossing 3 82,086 6,974
Riata 2 61,675 6,153
Riata 9 92,005 11,489
Panorama V 137,953 16,672
Fremont Technology Park 2 44,136 4,716
Riata Crossing 2 101,619 9,628
Commons @ Las Colinas 1 228,678 34,213
Commons @ Las Colinas 3 152,086 25,050
La Jolla Spectrum A 79,759 20,865
Embassy Row 100 114,759 19,412
----------------------------------
2,658,832 $367,272
==================================
</TABLE>
TOP 5 MARKETS
- -------------
<TABLE>
<CAPTION>
% of NOI % of Sq. Ft.
-------------- ---------------
<S> <C> <C>
San Francisco Bay Area 24.4 23.0
Washington D.C. Metro 19.2 13.7
Chicago 7.8 7.2
Orange County/Los Angeles 6.6 7.2
Phoenix 6.3 6.2
64.3 57.3
============== ===============
</TABLE>
<PAGE>
BOARD OF DIRECTORS
- ------------------
Oliver T. Carr, Jr.
Chairman of the Board
CarrAmerica Realty Corporation
Ronald Blankenship
Vice Chairman and Chief Operating Officer
Security Capital Group Incorporated
Andrew F. Brimmer
President
Brimmer & Company Inc.
Thomas A. Carr
President and Chief Executive Officer
CarrAmerica Realty Corporation
A. James Clark
Chairman of the Board and President
Clark Enterprises, Inc.
Timothy Howard
Executive Vice President and
Chief Financial Officer
Fannie Mae
Caroline S. McBride
Managing Director
Security Capital Global Strategic Group, Inc.
William D. Sanders
Chairman
Security Capital Group Incorporated
Wesley S. Williams, Jr.
Partner
Covington & Burling
EXECUTIVE OFFICERS
- ------------------
Thomas A. Carr
President & Chief Executive Officer
Philip L. Hawkins
Chief Operating Officer
Richard F. Katchuk
Chief Financial Officer
RESEARCH COVERAGE
- -----------------
Brenda Wood/Terry Spalthoff
Deutsche Banc Alex. Brown
(410) 727-1700
Christopher Haley
First Union
(804) 782-3708
David Kostin/David Feit
Goldman, Sachs & Company
(212) 902-6781/(212) 902-2087
John Lutzius
Green Street Advisors
(949) 640-8780
Lee Schalop/Josh Paradise
J.P. Morgan Securities, Inc.
(212) 648-9470/(212) 648-6752
David Fick/Ken Weinberg
Legg Mason Wood Walker
(410) 454-5018/(410) 454-5175
Steve Hash
Lehman Brothers
(212) 526-5702
Eric Hemel/Virginia Dawson
Merril Lynch & Company, Inc.
(212) 449-0334/(212) 449-4454
Greg Whyte/John Janedis
Morgan Stanley Dean Witter
(212) 761-6331/(212) 761-6351
Jonathan Litt/Gary Boston
Paine Webber
(212) 713-8624/(212) 713-4765
Fred Carr, Jr.
The Penobscot Group, Inc.
(617) 723-9600
Louis Taylor
Prudential R.E. Securities Investors
(212) 778-4424
<PAGE>
CORPORATE HEADQUARTERS
- ----------------------
1850 K Street, N.W.
Washington, D.C. 20006
(202) 729-1000
REGIONAL OFFICES
- ----------------
Atlanta, Georgia
J. Thad Ellis, Regional Managing Director
Austin, Texas
Jeffrey S. Pace, Regional Managing Director
Chicago, Illinois
Gerald J. O'Malley, Regional Managing Director
Dallas, Texas
William Vanderstraaten, Regional Managing Director
Denver, Colorado
Austin W. Lehr, Regional Managing Director
Florida
J. Thad Ellis, Regional Managing Director
Northern California
Leah N. Segawa, Regional Managing Director
Phoenix, Arizona
Robert Milkovich, Regional Managing Director
Salt Lake City
Dwight Merriman, Regional Managing Director
Seattle/Portland
Clete Casper, Regional Managing Director
Southern California
Dwight L. Merriman, Regional Managing Director
Washington, D.C.
John Donovan, Regional Managing Director
HQ GLOBAL WORKPLACES, INC.
- --------------------------
15950 North Dallas Parkway
Suite 400
Dallas, Texas 75248
Gary M. Kusin, President and CEO
STOCK EXCHANGE LISTINGS
- -----------------------
New York Stock Exchange
TRADING SYMBOL
- --------------
CRE
INVESTOR RELATIONS
- ------------------
CarrAmerica Realty Corporation
1850 K Street, N.W.
Washington, D.C. 20006
Telephone: (202) 729-1000
Fax: (202) 729-1060
CONTACT
- -------
Stephen M. Walsh
Vice President, Capital Markets
Telephone: (202) 729-1764
E-mail: [email protected]
----------------------
INFORMATION REQUEST
- -------------------
To request a standard Investor Relations package, Annual Report, or to be added
to our mailing or fax list, please contact or address an email to:
Melinda Jabbie at (202) 729-7518
Or 1 (800) 417-2277
[email protected]
[CarrAmerica logo appears here]
PLEASE VISIT OUR CORPORATE WEB SITE AT:
---------------------------------------
www.carramerica.com
<PAGE>
FINANCIAL HIGHLIGHTS
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Key Quarterly Financial Data
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
($ and shares in thousands)
As of 9/30/98 As of 12/31/98 As of 3/31/99 As of 6/30/99 As of 9/30/99
--------------- ---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Shares and Units:
Common Shares 71,732 71,760 66,768 66,783 66,799
Outstanding OP Units 6,545 6,518 6,510 6,495 6,496
Convertible Preferred Shares 680 680 680 680 680
Combined Shares and OP Units 78,957 78,958 73,958 73,958 73,975
Weighted Average - Basic 71,665 71,760 71,099 66,779 66,795
Weighted Average - Diluted 79,037 79,228 78,584 74,353 74,078
Share Price:
At the end of the period $22.88 $24.00 $22.06 $25.00 $21.94
High during period 30.13 25.25 24.38 26.50 24.63
Low during period 19.44 19.00 20.94 20.94 21.50
Capitalization Summary:
Market Value of Common Equity $1,806,145 $1,894,985 $1,631,729 $1,848,942 $1,622,819
Preferred Equity 400,000 400,000 400,000 400,000 400,000
Total Debt 1,602,383 1,704,359 1,676,868 1,653,501 1,680,175
Total Market Capitalization $3,808,528 $3,999,344 $3,708,597 $3,902,443 $3,702,994
Total Debt / Total Market Capitalization 42.07% 42.62% 45.22% 42.37% 45.37%
Financials:
Total Assets $3,733,625 $3,793,484 $3,652,980 $3,637,522 $3,636,875
Book Value of Real Estate Assets (before
accumulated depreciation) 3,368,673 3,460,004 3,302,053 3,312,839 3,338,141
Total Liabilities 1,758,780 1,885,818 1,843,774 1,836,898 1,832,408
Total Minority Interest (Including OP) 93,507 93,264 102,109 103,807 105,347
Total Shareholders Equity 1,881,338 1,814,402 1,707,097 1,696,817 1,699,120
Total Revenues $164,988 $173,450 $174,457 $180,393 $194,729
Property NOI 73,727 76,899 81,113 76,607 86,562
Property Operating Margin 64.9% 64.3% 66.8% 64.2% 67.5%
EBITDA 80,792 82,893 83,497 79,728 85,875
EBITDA per weighted average - basic $ 1.13 $ 1.16 $ 1.17 $ 1.19 $ 1.29
EBITDA per weighted average - diluted $ 1.02 $ 1.05 $ 1.06 $ 1.07 $ 1.16
Interest Coverage Ratio (b) 4.1 3.7 3.6 3.6 3.3
Interest Coverage Ratio (c) 2.8 2.6 2.6 2.6 2.7
Fixed Charge Coverage Ratio (b) 2.6 2.5 2.5 2.5 2.4
Fixed Charge Coverage Ration (c) 2.0 2.0 2.0 2.0 2.1
Funds From Operations (a) 49,475 49,333 50,469 47,189 49,380
Adjusted Funds From Operations 53,497 53,589 54,949 51,876 53,730
Dividends declared .4625 .4625 .4625 .4625 .4625
FFO payout ratio - Diluted 68.2% 68.4% 66.1% 66.3% 63.5%
Net-Straight Line revenue/expense adjustment 3,508 3,165 2,415 3,209 3,708
Portfolio Size:
Buildings Owned 288 292 273 258 258
Total Square Footage 23,114 23,678 22,309 22,631 23,047
Occupancy at End of Quarter 96.8% 96.9% 96.4% 96.8% 96.9%
</TABLE>
(a) See page 7 for definition of Funds From Operation (FFO).
(b) Excluding capitalized interest.
(c) Including capitalized interest.
4
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In thousands)
September 30, December 31,
1999 1998
------------------ -----------------
(Unaudited)
<S> <C> <C>
Assets
Rental Property:
Land $ 647,402 $ 692,484
Buildings 2,019,098 2,051,734
Tenant Improvements 272,064 192,211
Furniture, fixtures and equipment 100,862 57,140
-------------- --------------
3,039,426 2,993,569
Less - accumulated depreciation (312,686) (262,458)
-------------- --------------
Net rental property 2,726,740 2,731,111
Land held for future development 123,999 119,141
Construction-in-progress 166,398 347,294
Cash and cash equivalents - unrestricted 58,206 36,499
Cash and cash equivalents - restricted 24,708 48,640
Accounts and notes receivable 59,202 47,251
Investments 90,273 101,679
Accrued straight-line rents 43,251 39,273
Tenant leasing costs, net 52,772 42,552
Deferred financing costs, net 17,583 19,911
Goodwill, net 240,595 221,570
Prepaid expenses and other assets, net 33,148 38,563
-------------- --------------
$3,636,875 $3,793,484
============== ==============
Liabilities and Stockholders' Equity
Liabilities:
Mortgages and notes payable $1,680,175 $1,704,359
Accounts payable and accrued expenses 102,022 133,767
Rent received in advance and security deposits 50,211 47,692
--------------
--------------
1,832,408 1,885,818
-------------- --------------
Minority interest 105,347 93,264
Stockholders' equity:
Preferred stock 95 95
Common stock 668 718
Additional paid in capital 1,816,982 1,926,057
Foreign currency translation adjustment (109) 463
Cumulative dividends paid in excess of net income (118,516) (112,931)
-------------- --------------
1,699,120 1,814,402
$3,636,875 $3,793,484
============== ==============
</TABLE>
5
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited and in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- -----------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Rental income (1):
Minimum base rent $ 107,621 $ 98,127 $ 311,934 $ 276,199
Recoveries from tenants 14,530 12,175 42,501 35,391
Parking and other tenant charges 6,160 3,355 14,572 9,360
------------- ------------- ------------- --------------
Total rental revenue 128,311 113,657 369,007 320,950
Other real estate operating revenue:
Executive suites revenue 62,216 46,860 167,524 97,169
Real estate service income 4,202 4,471 13,049 10,985
------------- ------------- ------------- --------------
Total operating revenues 194,729 164,988 549,580 429,104
------------- ------------- ------------- --------------
Operating expenses:
Property expenses:
Operating expenses 30,862 30,033 90,974 78,223
Real estate taxes 10,887 9,897 33,750 28,858
Interest expense 25,924 19,560 71,536 54,137
Executive suites expenses 59,009 38,563 154,602 82,004
General and administrative 10,596 8,379 28,888 22,841
Depreciation and amortization 39,598 28,523 103,232 78,402
------------- ------------- ------------- --------------
Total operating expenses 176,876 134,955 482,982 344,465
------------- ------------- ------------- --------------
Operating income 17,853 30,033 66,598 84,639
------------- ------------- ------------- --------------
Other income:
Interest income 1,340 1,391 3,945 3,698
Equity in earnings of unconsolidated partnerships 1,160 1,285 3,791 3,753
Gain on settlement of treasury locks --- --- 4,489 ---
------------- ------------- ------------- --------------
Total other income 2,500 2,676 12,225 7,451
------------- ------------- ------------- --------------
Net income before gain on sale of assets, income
taxes, and minority interest 20,353 32,709 78,823 92,090
Income taxes 2,012 1,760 (574)
(574)
Minority Interest (4,262) (2,598) (14,430) (13,549)
------------- ------------- ------------- --------------
Net income before gain or sale of assets 18,103 29,537 66,153 77,967
Gain on sale of assets, net of income taxes 21,284 6,844 49,815 33,030
------------- ------------- ------------- --------------
Net income $ 39,387 $ 36,381 $ 115,968 $ 110,997
============= ============= ============= ==============
Basic net income per common share $ 0.46 $ 0.38 $ 1.31 $ 1.25
============= ============= ============= ==============
Diluted net income per share $ 0.45 $ 0.37 $ 1.31 $ 1.25
============= ============= ============= ==============
</TABLE>
NOTES:
(1) Rental income includes $3,708 and $3,508 of accrued straight-line rents
for the three month periods ended September 30, 1999 and 1998,
respectively, and $9,362 and $10,754 of accrued straight-line rents for
the nine month periods ended September 30, 1999 and 1998, respectively.
6
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Funds From Operations
- -------------------------------------------------------------------------------
The National Association of Real Estate Investment Trusts (NAREIT)
defines funds from operations ("FFO") as net income (loss) (computed in
accordance with generally accepted accounting principles), excluding gains (or
losses) from debt restructuring or sales of property, plus depreciation and
amortization of assets uniquely significant to the real estate industry and
after adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures are calculated to
reflect FFO on the same basis. The Company calculates its FFO by combining the
FFO from its real estate operations, calculated in accordance with NAREIT's
definition of FFO, and the earnings before depreciation, amortization and
deferred taxes ("EBDADT") of the Company's executive suites business, excluding
operating losses from centers under development. The following table provides
the calculation of the Company's FFO for the three and nine month periods ended
September 30, 1999 and 1998.
<TABLE>
<CAPTION>
(In thousands, except per share amounts) Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ -----------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income before minority interest $ 43,649 $ 38,979 $ 130,398 $ 124,546
Adjustments to derive funds from operations:
Add:
Depreciation and amortization 38,115 28,382 100,912 77,306
Losses associated with executive suites
centers under development 3,888 1,410 11,360 2,952
Deferred taxes (1,825) 248 (1,760) 248
Deduct:
Minority interests' (non Unitholders) share
of depreciation, amortization and net income (195) (60) (479) (255)
Gain on settlement of treasury locks --- --- (4,489) ---
Gain on sale of assets, net of income taxes (21,284) (6,844) (49,815) (32,450)
-------------- ------------ ------------- --------------
FFO before allocations to the minority Unitholders 62,348 62,115 186,127 172,347
Less: FFO allocable to the the minority Unitholders (4,025) (3,677) (12,563) (11,565)
-------------- ------------ ------------- --------------
CarrAmerica Realty Corporation's FFO 58,323 58,438 173,564 160,782
Less: Preferred stock dividends (8,933) (8,963) (26,516) (26,639)
-------------- ------------ ------------- --------------
CarrAmerica Realty Corporation's FFO attributable
to common shares $ 49,390 $ 49,475 $ 147,048 $ 134,143
============== ============ ============= ==============
Weighted average common shares outstanding:
Basic 66,795 71,665 68,208 67,504
============== ============ ============= ==============
Diluted 74,078 79,037 75,511 74,953
============== ============ ============= ==============
CarrAmerica Realty Corporation
FFO attributed to common shares $ 49,390 $ 49,475 $ 147,048 $ 134,143
Series A Preferred share dividends 315 345 944 1,067
Minority interest from convertible partnership Units 4,025 3,677 12,563 11,565
-------------- ------------ ------------- --------------
Adjusted FFO attributable to common shares $ 53,730 $ 53,497 $ 160,555 $ 146,775
============== ============ ============= ==============
Weighted average common
shares outstanding - Basic 66,795 71,665 68,208 67,504
Weighted average conversion of Series A Preferred shares 680 741 680 767
Weighted average conversion of operating partnership Units 6,498 6,552 6,502 6,528
Incremental options 105 79 119 154
-------------- ------------ ------------- --------------
Adjusted weighted average common shares - Diluted 74,078 79,037 75,511 74,953
============== ============ ============= ==============
</TABLE>
7
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Same Store Operating Property Results
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In thousands)
Three Months Ended % Nine Months Ended %
September 30, Change September 30, Change
------------------------- ----------- ------------------------- -----------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Real Estate Operating Revenue $96,711 $91,185 6.1% $245,999 $233,407 5.4%
Real Estate Operating Expenses (34,745) (32,199) 7.9% (82,669) (78,767) 5.0%
------------ ----------- ----------- ------------
Total Real Estate Operating Income
- GAAP Basis $61,966 $58,986 5.1% $163,330 $154,640 5.6%
============ =========== =========== ============
Straight-line Rent Adjustment (2,487) (2,862) (13.1%) (4,611) (7,364) (37.4%)
------------ ----------- ----------- ------------
Total Real Estate Operating Income
- Cash Basis $59,479 $56,124 6.0% $158,719 $147,276 7.8%
============ =========== =========== ============
YTD Average Occupancy 96.2% 96.0% 96.1% 96.0%
============ =========== =========== ============
Same Store Square Footage 17,242 15,092
============ ===========
</TABLE>
8
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Statements of EBITDA
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(In thousands)
Three Months Ended September Nine Months Ended
30 September 30,
------------------------------ ----------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 128,311 $ 113,657 $ 369,007 $ 320,950
Other real estate operating revenue:
Real estate service income 4,202 4,471 13,049 10,985
Executive suites revenue 62,216 46,860 167,524 97,169
Other income (1) 2,500 2,676 7,736 7,451
-------------- -------------- ------------- -------------
Total revenue 197,229 167,664 557,316 436,555
-------------- -------------- ------------- -------------
Operating expenses:
Property operating expenses:
Operating expenses 30,862 30,033 90,974 78,223
Real estate taxes 10,887 9,897 33,750 28,858
Executive suites operating expenses 59,009 38,563 154,602 82,004
General and administrative 10,596 8,379 28,888 22,841
-------------- -------------- ------------- -------------
Total operating expenses 111,354 86,872 308,214 211,926
-------------- -------------- ------------- -------------
EBITDA $ 85,875 $ 80,792 $ 249,102 $ 224,629
============== ============== ============= =============
</TABLE>
NOTES:
(1) Excludes gains on sales of assets and gain on settlement of treasury
locks.
9
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Financial Ratios
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Financial Position Ratios: September 30, December 31,
-------------------------- 1999 1998
----------------- --------------------
<S> <C> <C>
Total Debt / Total Capitalization (Book Value) 48.4% 47.2 %
Total Debt / Total Capitalization (Market) 45.4% 42.6 %
<CAPTION>
Operating Ratios: Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Secured EBITDA / Total EBITDA 32.4% 34.4% 33.3% 36.4%
Interest Coverage (1)
Excluding covering capitalized interest 3.31X 4.13X 3.48X 4.15X
Covering capitalized interest 2.75X 2.85X 2.67X 2.97X
Fixed charge coverage
Excluding covering capitalized interest 2.39X 2.56X 2.43X 2.50X
Covering capitalized interest 2.09X 2.00X 2.02X 2.02X
Diluted FFO Payout Ratio (2) 63.5% 68.2% 65.2% 70.9%
G & A as a % of Revenue (3) 7.8% 6.9% 7.4% 6.7%
</TABLE>
NOTES:
(1)Calculated as EBITDA before minority interests allocation, extraordinary
items, and nonrecurring charges divided by interest expense for the period.
(2)Dividends paid per common share divided by diluted FFO per share.
(3)Excludes Executive Suites revenue, gains on sales of assets and gain on
settlement of treasury locks. Includes interest income and equity on
earnings of unconsolidated subsidiaries.
10
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Share and Operating Partnership Unit Data
- -------------------------------------------------------------------------------
The following table sets forth the Common and Series A Preferred shares of the
Company and dividend and non-dividend paying operating partnership Units
outstanding at September 30, 1999 and 1998, and the weighted average Common and
Series A Preferred shares of the Company and dividend and non-dividend paying
operating partnership Units outstanding for the nine month periods ended
September 30, 1999 and 1998. The non-dividend paying Units are not entitled to
any distributions until they convert into dividend paying Units on fixed dates
in the future.
<TABLE>
<CAPTION>
(In thousands)
CarrAmerica Realty
Corporation Series
CarrAmerica Realty A Convertible Dividend Paying Non-Dividend
Corporation Common Preferred Shares Units Paying Units
Shares Outstanding Outstanding (a) Outstanding (b) Outstanding
-------------------- -------------------- ------------------ --------------------
<S> <C> <C> <C> <C>
Outstanding as of:
September 30, 1999 66,799 680 6,064 432
December 31, 1998 71,760 680 5,978 540
==================== ==================== ================== ====================
Weighted average for the
three months ended September 30:
1999 66,795 680 6,027 470
1998 71,665 741 6,012 540
==================== ==================== ================== ====================
Weighted average for the
nine months ended September 30:
1999 68,208 680 5,987 516
1998 67,504 767 5,988 540
==================== ==================== ================== ====================
</TABLE>
Notes:
(a) Series A Preferred shares are convertible into common shares on a one-
for-one basis.
(b) Operating partnership Units are convertible into cash or common shares
on a one-for-one basis.
(c) The Company has the following Cumulative Redeemable Preferred shares
outstanding which are not included in the table above:
Series B 8,000,000 Shares
Series C 6,000,000 Shares
Series D 2,000,000 Shares
11
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
DEBT Capitalization Summary
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
($ In thousands)
INTEREST RATE PRINCIPAL BALANCE MATURITY DATE
------------- ----------------- -------------
<S> <C> <C> <C>
SECURED INDEBTEDNESS:
Total Secured Indebtedness 8.040% $ 638,675 11/15/00 to
===== ========= 9/01/29
UNSECURED INDEBTEDNESS:
Senior Unsecured Notes 7.200 % $ 150,000 07/01/04
Senior Unsecured Notes 6.625 100,000 03/01/05
Senior Unsecured Notes 7.375 125,000 07/01/07
Senior Unsecured Notes 6.875 100,000 03/01/08
Senior Unsecured Notes 6.625 150,000 10/01/00
Unsecured Line of Credit - CarrAmerica Realty LIBOR + 90 bps 281,000 08/26/01
Corporation
Unsecured Line of Credit - OmniOffices, Inc. LIBOR + 90 bps 135,500 08/26/01
-----------
Total Unsecured Indebtedness $ 1,041,500
===========
</TABLE>
12
<PAGE>
SEGMENT ANALYSIS
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
- -------------------------------------------------------------------------------
The following table sets forth certain information about each operating property
owned by the Company as of September 30, 1999:
<TABLE>
<CAPTION>
Company's Net Percentage
Effective Rentable Number of Total
Property Area Percent of Square
Property Ownership (square feet)(1) Leased(2) Buildings Feet
- -------- --------- ---------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Consolidated Properties
- -----------------------
SOUTHEAST REGION
Downtown Washington, D.C.:
International Square 100.0 % 1,014,537 93.3% 3
1730 Pennsylvania Avenue 100.0 229,377 99.3 1
2550 M Street 100.0 187,931 100.0 1
1775 Pennsylvania Avenue (3) 100.0 143,981 98.5 1
900 19th Street 100.0 101,215 100.0 1
1747 Pennsylvania Avenue 89.7 (4) 151,942 99.4 1
1255 23rd Street 75.0 (5) 305,528 90.9 1
Suburban Washington, D.C.:
One Rock Spring Plaza (3) 100.0 205,298 100.0 1
Reston Crossing East & West 100.0 323,821 99.9 2
Sunrise Corporate Center 100.0 260,253 100.0 3
Parkway One 100.0 87,842 100.0 1
Atlanta, GA:
Glenridge 100.0 64,052 47.0 1
Century Springs West 100.0 94,893 98.2 1
Holcomb Place 100.0 72,824 95.5 1
Midori 100.0 99,900 99.7 1
Parkwood 100.0 151,296 95.0 1
Lakewood 100.0 80,338 70.2 1
The Summit 100.0 179,085 90.0 1
2400 Lake Park 100.0 101,285 91.1 1
680 Engineering Drive 100.0 62,154 100.0 1
Embassy Row 100.0 465,674 92.4 3
Waterford Center 100.0 82,161 94.9 1
Spalding Ridge 100.0 128,233 97.6 1
Embassy 100, 500 100.0 190,470 100.0 2
Boca Raton, FL:
Peninsula Plaza 100.0 162,303 92.9 1
Presidential Circle 100.0 279,417 91.3 1
Peninsula Executive Center I 100.0 100,626 100.0 1
----------------- ---------- -
Southeast Region Subtotal 5,328,436 96.5% 35 24.3%
----------------- ----------
PACIFIC REGION
Southern California,
Orange County/Los Angeles:
Scenic Business Park 100.0 139,012 97.7 4
Harbor Corporate Park 100.0 151,888 96.0 4
Plaza PacifiCare 100.0 104,377 100.0 1
Katella Corporate Center 100.0 80,547 93.9 1
Warner Center 100.0 344,181 96.6 12
South Coast Executive Center 100.0 161,787 91.5 2
Warner Premier 100.0 61,553 99.3 1
Von Karman 100.0 103,713 100.0 1
2600 W. Olive 100.0 146,831 100.0 1
Bay Technology Center 100.0 107,481 100.0 2
Alton Deere Plaza 100.0 182,185 96.5 6
</TABLE>
13
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Company's Net Percentage
Effective Rentable Number of Total
Property Area Percent of Square
Property Ownership (square feet)(1) Leased(2) Buildings Feet
- -------- --------- ---------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Southern California,
San Diego:
Del Mar Corporate Plaza 100.0 % 123,142 100.0% 2
Wateridge Pavilion 100.0 62,194 100.0 1
Towne Center Technology Park I & II 100.0 103,918 100.0 2
Palomar Oaks Technology Park 100.0 170,358 100.0 6
Jaycor 100.0 105,358 100.0 1
Lightspan 100.0 64,800 100.0 1
La Jolla Spectrum 100.0 79,759 100.0 1
Northern California,
San Francisco Bay Area:
CarrAmerica Corporate Center 100.0 1,001,976 98.8 6
Rio Robles 100.0 368,178 100.0 7
Valley Business Park II 100.0 166,928 98.3 6
Bayshore Centre II 100.0 94,874 100.0 1
Rincon Centre 100.0 201,178 98.5 3
Valley Centre II 100.0 212,082 100.0 4
Valley Office Centre 100.0 68,738 100.0 2
Valley Centre 100.0 102,291 87.2 2
Valley Business Park I 100.0 67,784 100.0 2
3745 North First Street 100.0 67,582 100.0 1
3571 North First Street 100.0 116,000 100.0 1
150 River Oaks 100.0 100,024 100.0 1
San Mateo I 100.0 70,000 100.0 1
San Mateo II and III 100.0 141,404 97.9 2
Hacienda West 100.0 205,285 96.6 2
Sunnyvale Technology Centre 100.0 165,520 100.0 5
Baytech Business Park 100.0 300,000 100.0 4
Golden Gateway Commons 100.0 271,777 90.2 3
Techmart Commerce Center 100.0 262,585 97.0 1
995 Benecia Avenue 100.0 36,344 100.0 1
Oakmead West A-G 100.0 425,981 100.0 7
Santa Clara Technology Park 100.0 178,132 100.0 3
Valley Technology Center 4 & 5 100.0 132,700 100.0 2
Freemont Technology Park 2, 3 100.0 98,289 100.0 2
Clarify Corporate Center 2,3, 4 100.0 193,536 100.0 3
Portland, OR:
RadiSys Corporate Headquarters 100.0 80,525 100.0 1
RadiSys II 100.0 45,655 100.0 1
Seattle, WA:
Redmond East 100.0 396,497 97.2 10
Willow Creek 100.0 96,179 100.0 1
Canyon Park Business Center 100.0 285,428 100.0 6
Canyon Park Commons 100.0 95,290 77.8 1
Willow Creek Corporate Center 100.0 278,509 100.0 5
Redmond Hilltop B & C 100.0 90,880 100.0 2
Canyon Park Commons 1 & 2 100.0 110,398 100.0 2
----------------- ---------- -
Pacific Region Subtotal 8,819,633 97.6% 150 40.1%
----------------- ----------
</TABLE>
14
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Company's Net Percentage
Effective Rentable Number of Total
Property Area Percent of Square
Property Ownership (square feet)(1) Leased(2) Buildings Feet
- -------- --------- ---------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
CENTRAL REGION
Austin, TX:
Great Hills Plaza 100.0% 135,333 100.0% 1
Balcones Center 100.0 74,978 86.5 1
Park North 100.0 132,744 93.9 2
City View Centre 100.0 136,183 100.0 3
Riata 2, 4, 5, 8, 9 100.0 403,435 93.4 5
Tower of the Hills 100.0 166,061 97.0 2
City View Center 100.0 128,716 100.0 1
Riata Crossing 1, 2, 3 100.0 265,177 100.0 3
Chicago, IL:
Parkway North I 100.0 249,314 97.9 1
Parkway North III 100.0 257,512 97.7 1
Parkway VI 100.0 91,604 97.1 1
Unisys 100.0 359,389 96.6 2
The Crossings 100.0 296,835 92.7 2
Bannockburn I & II 100.0 211,124 100.0 2
Bannockburn IV 100.0 108,469 100.0 1
Dallas, TX:
Quorum North 100.0 115,801 87.9 1
Quorum Place 100.0 170,964 91.0 1
Cedar Maple Plaza 100.0 113,127 96.1 3
Commons at Las Colinas 1, 3 100.0 380,764 97.6 2
Two Mission Park 100.0 77,721 91.6 1
Citymark 100.0 213,050 95.2 1
5000 Quorum 100.0 159,549 96.5 1
Royal Ridge A & B 100.0 247,239 100.0 2
Tollway Plaza I 100.0 174,912 100.0 1
----------------- ---------- -
Central Region Subtotal 4,670,001 97.2% 41 21.2%
----------------- ----------
MOUNTAIN REGION
Denver, CO:
Harlequin Plaza 100.0 329,100 93.5 2
Quebec Court I & II 100.0 287,294 100.0 2
Greenwood Center 100.0 76,128 97.6 1
Quebec Center 100.0 106,865 95.5 3
Panorama Corporate Center I 100.0 100,881 98.1 1
Panorama II 100.0 100,916 98.2 1
Panorama III 100.0 136,850 100.0 1
Panorama V 100.0 137,953 98.2 1
Phoenix, AZ:
Camelback Lakes 100.0 200,874 99.9 2
Pointe Corridor IV 100.0 179,002 99.0 1
Highland Park 100.0 78,969 73.3 1
The Grove at Black Canyon 100.0 104,571 95.7 1
US West 100.0 532,506 100.0 4
Four Gateway 100.0 137,709 96.3 1
Concord Place 100.0 133,555 88.8 1
Salt Lake City, UT:
Sorenson Research Park 100.0 285,869 98.2 5
Wasatch Corporate Center 100.0 178,098 100.0 3
Wasatch Corporate Center 18 100.0 49,727 97.4 1
----------------- ---------- -
Mountain Region Subtotal 3,156,867 96.2% 32 14.4%
----------------- ---------- -----
TOTAL CONSOLIDATED PROPERTIES: 21,974,937 258 100.0%
----------------- -----
WEIGHTED AVERAGE 96.9%
----------
</TABLE>
15
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Company's Net Percentage
Effective Rentable Number of Total
Property Area Percent of Square
Property Ownership (square feet)(1) Leased(2) Buildings Feet
--------- ---------------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Unconsolidated Properties
- -------------------------
Downtown Washington, D.C.:
1717 Pennsylvania Avenue 50.0% (6) 184,446 100.0% 1
AARP Headquarters 24.0 (7) 502,316 100.0 1
Bond Building 15.0 (8) 162,097 100.0 1
Suburban Washington, D.C.:
Booz-Allen & Hamilton Building 50.0 (9) 222,989 100.0 1
------- ----- -
TOTAL UNCONSOLIDATED PROPERTIES: 1,071,848 4
--------- -
WEIGHTED AVERAGE 100.0%
-----
ALL OPERATING PROPERTIES
TOTAL: 23,046,817
==========
WEIGHTED AVERAGE 96.9%
====
</TABLE>
- --------------------
(1) Includes office and retail space but excludes storage space.
(2) Includes space for leases that have been executed and have commenced as of
September 30, 1999.
(3) The Company owns the improvements on the property and has a leasehold
interest in all of the underlying land.
(4) The Company holds a general and limited partner interest in a partnership
that owns the property.
(5) The Company holds a 50% joint venture interest in the joint venture that
owns this property and a 50% joint venture interest in another joint
venture, which holds the remaining 50% interest in the joint venture that
owns the property. As a result of preferential rights to annual
distributions from another venture, the Company will receive distributions
of less than 75% (but in no event less than 50%) of the total amount
distributed with respect to this property in each year until the
preferential distribution requirements are satisfied, but will receive 100%
of any subsequent distributions during the year until its aggregate
distributions equal 75% of the cumulative distributions with respect to the
property since inception of the partnership. Thereafter, the Company will
receive 75% of the distributions made during the year with respect to the
property. Upon sale of the property, the Company will receive 75% of the
distributions until the Company receives its preference amount, 50% until
the remaining venturer receives its preference amount, and 75% of the
distributions thereafter.
(6) The Company holds a 50% interest in the limited liability company that owns
the property and serves as the entity's managing member.
(7) The Company holds an effective 24% interest in the property by virtue of a
48% general partner interest in a partnership that owns a 50% general
partner interest in the property.
(8) The Company holds an effective 15% interest in the property by virtue of a
30.6% limited partner interest in a partnership that has a 49% limited
partner interest in the property.
(9) The Company holds a 50% joint venture interest, and is the managing
venturer.
16
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Lease Rollover Schedule
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Current YTD Avg. Vacant
Region / Market Square Feet Occupancy Occupancy S.F. 1999 2000
- --------------- ----------- --------- --------- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PACIFIC REGION:
San Francisco Bay Area 5,049,188 99.3% 98.5% 37,719 225,489 559,009
Orange County / Los Angeles 1,581,555 95.0% 97.1% 79,202 37,400 274,949
Seattle 1,353,181 93.0% 97.6% 95,290 -- 136,410
San Diego 709,529 100.0% 100.0% -- 20,873 --
Portland 126,180 100.0% 100.0% -- -- --
MOUNTAIN REGION:
Denver 1,275,987 95.2% 97.3% 61,447 30,453 56,293
Phoenix 1,367,186 95.8% 96.6% 57,427 68,032 97,485
Salt Lake City 513,694 99.8% 99.8% 915 57,023 --
CENTRAL REGION:
Chicago 1,574,247 97.0% 97.0% 47,260 133,831 159,282
Dallas 1,653,127 97.8% 96.1% 36,259 97,520 171,151
Austin 1,442,627 96.7% 96.6% 47,596 18,398 72,322
SOUTHEAST REGION:
Washington, D.C.
Downtown Properties 2,136,511 97.6% 95.3% 52,280 46,568 129,859
Suburban Properties 877,214 99.8% 99.9% 1,800 20,818 74,004
Atlanta 1,772,365 93.7% 92.1% 110,811 79,373 177,988
Boca Raton 542,346 95.9% 93.4% 22,028 21,361 109,864
------- ----- ----- ------ ------ -------
Totals 21,974,937 97.0% 96.9% 650,034 857,139 2,018,616
========== ===== ===== ======= ======= =========
<CAPTION>
2006
&
Region / Market 2001 2002 2003 2004 2005 Thereafter
--------------- ---- ---- ---- ---- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
PACIFIC REGION:
San Francisco Bay Area 450,500 810,079 628,925 425,848 312,693 1,598,926
Orange County / Los Angeles 188,731 203,309 207,739 185,961 17,677 386,587
Seattle 98,599 14,515 246,328 222,328 309,744 229,967
San Diego 173,784 18,850 180,721 224,654 10,888 79,759
Portland -- -- -- -- -- 126,180
MOUNTAIN REGION:
Denver 98,818 202,069 147,804 184,570 130,000 364,533
Phoenix 77,217 184,737 89,869 98,938 123,165 570,316
Salt Lake City 110,850 45,520 109,278 118,478 -- 71,630
CENTRAL REGION:
Chicago 175,860 263,272 325,203 101,136 20,372 348,031
Dallas 144,991 182,627 311,877 60,827 9,511 638,364
Austin 155,097 442,445 219,097 313,958 18,912 154,802
SOUTHEAST REGION:
Washington, D.C.
Downtown Properties 28,932 341,655 221,438 564,308 54,215 697,256
Suburban Properties 78,561 55,250 22,883 82,405 179,854 361,639
Atlanta 189,348 386,006 368,330 139,406 8,092 313,011
Boca Raton 71,949 45,864 70,299 45,808 35,274 119,899
------ ------ ------ ------ ------ -------
Totals 2,043,237 3,196,198 3,149,791 2,768,625 1,230,397 6,060,900
========= ========= ========= ========= ========= =========
</TABLE>
17
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
25 Largest Tenants - Based on Annualized Base Rent
-----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percentage of
Portfolio Annualized Percentage of Occupied
Tenant Rent Square Feet Square Feet
--------------------------------------------- ----------------------- --------------- ------------------------
<S> <C> <C> <C>
Applied Materials, Inc. 3.47% 725,981 3.30%
International Monetary Fund 3.34% 437,479 1.99%
Nokia, Inc. 2.23% 380,764 1.73%
US West Business Resources, Inc. 2.12% 532,506 2.42%
Peoplesoft, Inc. 1.89% 361,344 1.64%
AT&T 1.75% 509,300 2.32%
Patton Boggs, L.L.P. 1.46% 180,444 0.82%
Nextel Communications, Inc. 1.36% 325,988 1.48%
Electronic Data Systems Corp. 1.26% 308,785 1.41%
Sun Microsystems, Inc. 1.18% 260,500 1.19%
Clarify, Inc. 1.17% 200,536 0.91%
Pacific Bell 1.08% 198,093 0.90%
Unisys Corporation 1.03% 217,061 0.99%
Franklin Resources, Inc. 0.94% 122,467 0.56%
Software AG of North America 0.86% 173,419 0.79%
Federal Deposit Insurance Corp. 0.84% 108,641 0.49%
Citicorp Savings of Wash. D.C. 0.79% 116,834 0.53%
The Walt Disney Company 0.78% 129,347 0.59%
King & Spaulding 0.76% 84,161 0.38%
GTE North, Inc. 0.75% 176,420 0.80%
Iomega Corporation 0.66% 132,700 0.60%
Boston Scientific 0.66% 212,082 0.97%
Merrill Lynch, Pierce, Fenner 0.63% 77,443 0.35%
Safeco Insurance Co of America 0.61% 170,368 0.78%
Novartis Agricultural Discover 0.57% 79,759 0.36%
======================= =============== ========================
TOTAL 32.18% 6,222,422 28.32%
======================= =============== ========================
</TABLE>
18
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
1999 Development Activity By Market
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
($ In Thousands)
Estimated
Construction Estimated
Property Under Construction @ Square Completion Stabilization
September 30, 1999: Feet Start Date Date Date
- ---------------------------------------- ---------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
San Francisco Bay Area
Clarify Corporate Center A 64,512 1Q98 1Q99 1Q00
Valley Technology Center 1 66,350 1Q98 4Q98 4Q99
Valley Technology Center 2 66,350 1Q98 4Q98 4Q99
Valley Technology Center 3 84,600 1Q98 4Q98 4Q99
Fremont Technology Park A 41,015 3Q98 4Q98 4Q99
----------
San Francisco Bay Area
Subtotal 322,827
Seattle
Canyon Park 4 65,035 2Q98 1Q99 1Q00
Willow Creek Corporate Center
6 50,028 3Q98 3Q99 3Q99
----------
Seattle Subtotal 115,063
San Diego
Towne Center Technology Park 3 78,202 1Q98 2Q99 4Q99
La Jolla Spectrum Technology 76,894 3Q99 1Q00 1Q01
Park
----------
San Diego Subtotal 155,096
Orange County/Los Angeles
Pacific Corporate Plaza I 33,893 3Q98 3Q99 3Q00
Pacific Corporate Plaza 2 49,603 3Q98 3Q99 3Q00
Pacific Corporate Plaza 3 40,063 3Q98 2Q99 4Q99
----------
Orange County/Los 123,559
Angeles Subtotal
Portland, Oregon
Sunset Corporate Park A 44,426 2Q98 1Q99 1Q00
Sunset Corporate Park B 44,426 2Q98 1Q99 1Q00
Sunset Corporate Park C 44,426 2Q98 1Q99 1Q00
Rock Creek Corporate Center 1 65,436 3Q98 2Q99 2Q00
Rock Creek Corporate Center 2 65,436 3Q98 2Q99 2Q00
Rock Creek Corporate Center 3 11,011 3Q98 2Q99 2Q00
----------
Portland, Oregon Subtotal 275,161
Denver
Panorama Corporate Center X 50,380 3Q99 1Q00 1Q01
----------
Denver Subtotal 50,380
<CAPTION>
In Estimated %
Place Remaining Total Estimated Currently
Property Under Construction @ Dev Costs to Projected Stabilized Leased or
September 30, 1999: Costs Complete Investment Return Committed
- ------------------------------------------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
San Francisco Bay Area
Clarify Corporate Center A $12,427 $371 $12,798 10.3% 100.0%
Valley Technology Center 1 9,153 2,058 11,211 11.2 0.0
Valley Technology Center 2 9,973 1,108 11,081 13.2 100.0
Valley Technology Center 3 14,037 0 14,037 12.3 100.0
Fremont Technology Park A 5,954 300 6,254 9.9 100.0
--------- ---------- ---------- ---------- -----------
San Francisco Bay Area
Subtotal 51,544 3,837 55,381 11.5 79.0
Seattle
Canyon Park 4 6,196 2,486 8,682 10.5 0.0
Willow Creek Corporate Center
6 6,895 1,320 8,215 9.0 100.0
--------- ---------- ---------- ---------- -----------
Seattle Subtotal 13,091 3,806 16,897 9.7 43.0
San Diego
Towne Center Technology Park 3 9,110 2,488 11,598 11.7 100.0
La Jolla Spectrum Technology
Park 6,319 5,925 12,244 9.5 0.0
--------- ---------- ---------- ---------- -----------
San Diego Subtotal 15,429 8,413 23,842 10.5 50.0
Orange County/Los Angeles
Pacific Corporate Plaza I 4,454 543 4,997 11.0 76.0
Pacific Corporate Plaza 2 5,683 1,612 7,295 9.9 0.0
Pacific Corporate Plaza 3 5,222 534 5,756 12.0 100.0
--------- ---------- ---------- ---------- -----------
Orange County/Los
Angeles Subtotal 15,359 2,689 18,048 10.9 53.0
Portland, Oregon
Sunset Corporate Park A 3,605 1,466 5,071 10.1 25.0
Sunset Corporate Park B 3,715 1,364 5,079 10.2 0.0
Sunset Corporate Park C 3,606 1,468 5,074 10.2 0.0
Rock Creek Corporate Center 1 6,480 2,340 8,820 10.8 31.0
Rock Creek Corporate Center 2 5,940 2,970 8,910 10.7 0.0
Rock Creek Corporate Center 3 1,081 399 1,480 10.8 0.0
--------- ---------- ---------- ---------- -----------
Portland, Oregon Subtotal 24,427 10,007 34,434 10.5 11.0
Denver
Panorama Corporate Center X 968 5,466 6,434 11.1 0.0
--------- ---------- ---------- ---------- -----------
Denver Subtotal 968 5,466 6,434 11.1 0.0
</TABLE>
19
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
1999 Development Activity By Market
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
($ In Thousands)
Estimated
Construction Estimated
Property Under Construction @ Square Completion Stabilization
September 30, 1999: Feet Start Date Date Date
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Salt Lake City
Wasatch 17 72,088 1Q98 1Q99 1Q00
Sorenson X 41,551 2Q98 1Q99 1Q00
----------
Salt Lake City Subtotal 113,639
Austin
Riata Building 3 62,209 1Q98 2Q99 2Q00
Riata Building 6 91,501 2Q99 4Q99 1Q00
----------
Austin Subtotal 153,710
Dallas
Royal Ridge II, Building 3 123,740 2Q99 4Q99 1Q00
Tollway II 181,123 3Q97 4Q98 4Q99
----------
Dallas Subtotal 304,863
Chicago
Four Parkway North 171,157 2Q98 2Q99 2Q00
Ten Parkway North 99,509 4Q98 1Q00 1Q01
----------
Chicago Subtotal 270,666
Boca Raton
Peninsula Executive Center 2 87,087 4Q97 4Q98 4Q99
----------
Boca Raton Subtotal 87,087
----------
Total/Weighted Average 1,972,051
Less: Placed in service (413,984)
==========
Total/Weighted Average 1,558,067
==========
<CAPTION>
($ In Thousands)
In Estimated %
Place Remaining Total Estimated Currently
Property Under Construction @ Dev Costs to Projected Stabilized Leased or
September 30, 1999: Costs Complete Investment Return Committed
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Salt Lake City
Wasatch 17 $7,290 $1,679 $8,969 10.7% 100.0%
Sorenson X 4,544 459 5,003 12.0 71.0
--------- ---------- ---------- ---------- -----------
Salt Lake City Subtotal 11,834 2,138 13,972 11.2 89.0
Austin
Riata Building 3 7,984 626 8,610 11.2 53.0
Riata Building 6 4,597 9,471 14,068 10.8 100.0
--------- ---------- ---------- ---------- -----------
Austin Subtotal 12,581 10,097 22,678 11.0 81.0
Dallas
Royal Ridge II, Building 3 7,382 9,480 16,862 9.3 100.0
Tollway II 22,896 4,088 26,984 10.7 88.0
--------- ---------- ---------- ---------- -----------
Dallas Subtotal 30,278 13,568 43,846 10.1 93.0
Chicago
Four Parkway North 17,136 10,246 27,382 11.0 91.0
Ten Parkway North 9,737 6,222 15,959 10.6 73.0
--------- ---------- ---------- ---------- -----------
Chicago Subtotal 26,873 16,467 43,340 10.5 85.0
Boca Raton
Peninsula Executive Center 2 13,923 3,191 17,114 8.9 58.0
--------- ---------- ---------- ---------- -----------
Boca Raton Subtotal 13,923 3,191 17,114 8.9 58.0
--------- ---------- ---------- ---------- -----------
---------- -----------
Total/Weighted Average $216,307 $79,679 $295,986 10.7% 64.5%
Less: Placed in service (49,905) (12,733) (62,638)
========= ========== ==========
Total/Weighted Average $166,402 $66,946 $233,348 10.7% 64.5%
========= ========== ========== ========== ===========
</TABLE>
20
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Land Held For Future Development Summary
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Owned or Controlled Land
-------------------------
Buildable
Square
Region/Property Market Acres Footage
- -------------------------------------------------- ------------------------------- --------- ----------
<S> <C> <C> <C>
Pacific Region:
CarrAmerica Corporate Center San Francisco Bay Area 2 153,600
Fremont Technology Park D-F San Francisco Bay Area 10 151,545
Valley Tech Phase 6 & 7 San Francisco Bay Area 8 110,589
Sunset Corporate Portland, Oregon 9 124,800
Art Institute - BTS Orange Co./Los Angeles 5 55,000
--------- ----------
Subtotal 34 595,534
Mountain Region:
Panorama Corporate Center IV, VI, VII Denver, Colorado 21 363,650
Panorama IX Denver, Colorado 6 120,000
Dry Creek Corporate Center Denver, Colorado 56 824,362
Panorama VIII (Formerly Marriott Tract) Denver, Colorado 5 127,680
Four Gateway Phoenix, Arizona 3 136,817
East Gateway Phoenix, Arizona 11 228,828
Sorenson Research Park XI Salt Lake City, Utah 6 80,238
Wasatch 16 Salt Lake City, Utah 5 80,238
--------- ----------
Subtotal 113 1,961,813
Central Region:
Braker Pointe Austin, Texas 22 750,000
Riata 1,6,7 Austin, Texas 11 153,224
Riata Crossing 4-6 Austin, Texas 18 176,030
Parkway North Chicago, Illinois 16 375,000
Cedar Maple Plaza Dallas, Texas 1 38,400
Tollway Plaza III Dallas, Texas 4 134,400
The Commons @ Las Colinas II Dallas, Texas 6 177,800
Royal Ridge II Dallas, Texas 18 316,786
Royal Ridge III Dallas, Texas 18 240,500
--------- ----------
Subtotal 114 2,362,140
Southeast Region:
Peninsula Corporate Center 1-2 Boca Raton, Florida 8 114,000
Preston Ridge Atlanta, Georgia 14 96,000
--------- ----------
Subtotal 22 210,000
--------- ----------
Total 283 5,129,487
========== ==========
</TABLE>
21
<PAGE>
HQ GLOBAL WORKPLACES, INC. AND OMNIOFFICES (UK) LIMITED
Condensed Consolidated Balance Sheets
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited and in thousands)
September 30, December 31,
1999 1998
--------------- ----------------
<S> <C> <C>
Assets:
Current assets $ 42,249 $ 60,984
Fixed assets, goodwill (net) and other assets 375,460 303,180
=============== ================
Total assets $ 411,709 $ 364,164
=============== ================
Liabilities and stockholders' equity:
Total liabilities including Long-Term Debt $ 239,842 $ 192,663
Total stockholders' equity 171,867 171,501
=============== ================
Total liabilities and stockholders' equity $ 411,709 $ 364,164
=============== ================
</TABLE>
22
<PAGE>
HQ GLOBAL WORKPLACES, INC. AND OMNIOFFICES (UK) LIMITED
Condensed Consolidated Contribution to Funds From Operations
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Unaudited and in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- -----------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 38,676 $ 30,706 $ 106,183 $ 61,875
Other services and interest income 23,817 15,509 62,425 35,294
------------- ------------- ------------- --------------
Total operating revenue 62,493 46,215 168,608 97,169
Expenses:
Operating expenses 36,828 24,325 95,604 48,454
G & A selling expense 22,180 14,238 59,035 33,550
Interest expense and income taxes (1) 482 1,716 5,185 3,224
------------- ------------- ------------- --------------
Total expenses 59,490 40,279 159,824 85,228
------------- ------------- ------------- --------------
Net income (loss) before depreciation
and amortization 3,003 5,936 8,784 11,941
------------- ------------- ------------- --------------
Adjustments to derive funds from operations
Add:
Losses associated with Executive
Suites under development 3,888 1,410 11,360 2,952
Deferred taxes (1,825) 248 (1,760) 248
------------- ------------- ------------- --------------
2,063 1,658 9,600 3,200
------------- ------------- ------------- --------------
Funds from operations $ 5,066 $ 7,594 $ 18,384 $ 15,141
============= ============= ============= ==============
</TABLE>
(1) Excludes interest on loans from CarrAmerica Realty Corp.
23
<PAGE>
HQ GLOBAL WORKPLACES, INC. AND OMNIOFFICES (UK) LIMITED
Executive Suites Centers
The following table sets forth certain information about the executive
suites leased by HQ Global Workplace, Inc. ("HQ Global") and OmniOffices (UK)
Limited ("OmniUK/Europe") and subleased to executive office suites tenants as of
September 30, 1999.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Omni UK/
HQ Global Europe Total
------------ --------------- --------------
<S> <C> <C> <C>
Stabilized Operating Centers
Owned 131 10 141
Joint Ventures 0 2 2
Managed 1 2 3
------------ --------------- --------------
132 14 146
Centers Under Development
Owned 25 7 32
Joint Ventures 0 6 6
------------ --------------- --------------
25 13 38
------------ --------------- --------------
Subtotal 157 27 184
Franchise Centers 79 0 79
------------ --------------- --------------
Total 236 27 263
============ =============== ==============
Stabilized Occupancy 90%
==============
</TABLE>
24
<PAGE>
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 thereunto duly authorized.
Date: November 15, 1999
CARRAMERICA REALTY CORPORATION
By: /s/ Stephen E. Riffee
---------------------------------------
Stephen E. Riffee
Senior Vice President, Controller and Treasurer
(Principal Accounting Officer)
3
<PAGE>
EXHIBIT INDEX
Exhibit
Number
- -------
99.1 Press Release, November 5, 1999, entitled "Supplemental
Information"
4
