<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) February 14, 2000
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 February 4, 2000
ITEM 7 Financial Statements and Exhibits
(c) Exhibits
Exhibit
Number
-------
99.1 Press Release, February 4, 2000 entitled "Supplemental
Operating and Financial Data".
2
<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: February 14, 2000
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, February 4, 2000 entitled "Supplemental
Information"
4
<PAGE>
Exhibit 99.1
[LOGO OF CARRAMERICA]
fourth quarter 1999
[PHOTOS]
Supplemental Operating and Financial Data
For the Quarter Ended December 31, 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
PAGE
----
CORPORATE OVERVIEW
The Company .......................................................... 1
Board of Directors / Executive Officers / Research Coverage .......... 2
Regional Offices / Investor Relations / Information Requests ......... 3
FINANCIAL HIGHLIGHTS
Key Quarterly Financial Data.......................................... 4
Consolidated Balance Sheets........................................... 5
Statements 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
Land Held for Development Schedule.................................... 20
HQ Global
---------
Condensed Balance Sheet............................................... 21
Condensed Income Statement............................................ 22
Schedule of Executive Suites Centers.................................. 23
<PAGE>
fourth quarter 1999
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 December 31, 1999. On January 21, 2000 the Company announced
that HQ Global Workplaces, Inc. has entered into a merger agreement with Vantas
Incorporated. As a result, the financial performance of HQ Global Workplaces,
Inc. will be presented in the Company's results as "Discontinued Operations".
CURRENT PORTFOLIO (as of 12/31/99)
- ----------------------------------
271 Properties
22.6 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 (stabilized; year-to-date)
- --------------------------
97.1%
REGIONAL DISTRIBUTION (stabilized; as of 12/31/99)
- --------------------------------------------------
Based on Based on
NOI Square Footage
----------------------------------------
Pacific Region 40.71% 36.37%
Southeast Region 27.43% 24.76%
Central Region 19.55% 21.01%
Mountain Region 12.14% 12.01%
DEVELOPMENT ACTIVITY
- --------------------
The Company has placed in service the following developed properties during the
year:
Square Cost ($ in
Stabilized Properties Footage thousand)
- --------------------- -----------------------------
Clarify Corp Ctr 2, 3, 4 193,536 34,102
Commons @ Las Colinas 1 & 3 380,764 59,263
Embassy Row 100 & 500 135,541 33,059
Four Gateway 121,986 17,532
Fremont Technology Park 1,2,3 120,688 18,181
La Jolla Spectrum A 79,759 20,865
Pacific Corp 3 40,063 5,732
Panorama III 136,850 16,012
Panorama V 101,535 16,672
Parkway North Six 28,926 13,133
Peninsula Exec 1 & 2 164,777 33,481
Reston East & West 323,821 38,620
Riata 2, 6, 9 193,637 25,777
Riata Crossing 1, 2, 3 265,177 23,576
Royal Ridge B 44,073 9,284
Royal Ridge Phase II 123,740 13,217
Tollway Plaza I & II 191,823 50,774
Towne Ctr 1 & 3 119,753 17,352
Valley Tech 1, 2, 3 182,905 38,014
Wasatch Corp Ctr 18 37,992 4,631
Willow 6 50,500 7,425
-----------------------------
3,037,846 496,702
=============================
Buildings Partially Placed in 281,222 33,002
- ----------------------------- =============================
Service (total)
- -------
TOP 5 MARKETS
- -------------
% of NOI % of Sq. Ft.
------------- ----------------
San Francisco Bay Area 25.32 23.61
Washington D.C. Metro 19.77 13.83
Chicago 7.25 6.81
Orange County/Los Angeles 6.80 7.27
Dallas 6.51 6.12
------------- ----------------
65.65 57.64
============= ================
1
<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 Dieveney
Deutsche Banc Alex. Brown
(410) 895-3318/(410) 895-3363
Christopher Haley
First Union
(804) 782-3708
David Kostin/James Kammert
Goldman, Sachs & Company
(212) 902-6781/(212) 902-0670
John Lutzius/Elizabeth Morse
Green Street Advisors
(949) 640-8780
Lee Schalop/Josh Paradise
J.P. Morgan Securities, Inc.
(212) 648-9470/(212) 648-9480
David Fick/Ken Weinberg
Legg Mason Wood Walker
(410) 454-5018/(410) 454-5175
David Harris
Lehman Brothers
(212) 526-5702
Eric Hemel/Virginia Dawson
Merrill Lynch & Company, Inc.
(212) 449-0334/(212) 449-4484
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
2
<PAGE>
CORPORATE HEADQUARTERS
- ----------------------
1850 K Street, N.W. Suite 500
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
William Krokowski, 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 e-mail to:
Melinda Jabbie at (202) 729-7518
Or 1 (800) 417-2277
[email protected]
[LOGO OF CARR AMERICA]
PLEASE VISIT OUR CORPORATE WEB SITE AT:
---------------------------------------
www.carramerica.com
-------------------
3
<PAGE>
fourth quarter 1999
FINANCIAL HIGHLIGHTS
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Key Quarterly Financial Data
- --------------------------------------------------------------------------------
($ and shares in thousands)
<TABLE>
<CAPTION>
As of 12/31/98 As of 3/31/99 As of 6/30/99 As of 9/30/99 As of 12/31/99
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares and Units:
- -----------------
Common Shares 71,760 66,768 66,783 66,799 66,826
Outstanding OP Units (a) 6,518 6,510 6,495 6,496 6,480
Convertible Preferred Shares 680 680 680 680 680
Combined Shares and OP Units (a) 78,958 73,958 73,958 73,975 73,986
Weighted Average - Basic 71,760 71,099 66,779 66,795 67,858
Weighted Average - Diluted 79,228 78,584 74,353 74,078 75,160
Share Price:
- ------------
At the end of the period $ 24.00 $ 22.06 $ 25.00 $ 21.94 $ 21.38
High during period 25.25 24.38 26.50 24.50 22.69
Low during period 19.00 20.94 20.94 21.50 17.94
Capitalization Summary (continuing operations):
- -----------------------------------------------
Market Value of Common Equity $1,894,985 $1,631,729 $1,848,942 $1,622,819 $1,581,451
Preferred Equity 400,000 400,000 400,000 400,000 400,000
Total Debt (e) 1,610,859 1,572,368 1,528,051 1,544,675 1,603,371
Total Market Capitalization (e) $3,905,844 $3,604,097 $3,776,993 $3,567,494 3,584,822
Total Debt / Total Market Capitalization (e) 41.2% 43.6% 40.5% 43.3% 44.7%
Financial Information (continuing operations):
- ----------------------------------------------
Total Assets (e) $3,627,259 $3,473,852 $3,437,823 $3,429,755 $3,479,072
Book Value of Real Estate Assets (before
accumulated depreciation) (e) 3,401,088 3,233,947 3,231,370 3,227,604 3,287,885
Total Liabilities (e) 1,724,506 1,673,733 1,645,362 1,635,674 1,699,771
Total Minority Interest (Including OP) (e) 88,815 91,752 93,381 94,854 92,586
Total Shareholders Equity (e) 1,813,938 1,708,367 1,699,080 1,699,227 1,686,715
Total Operating Revenues (e) $ 124,668 $ 125,357 $ 124,187 $ 132,512 133,847
Property NOI 76,899 81,113 76,607 86,562 87,361
Property Operating Margin 64.3% 66.8% 64.2% 67.5% 67.3%
EBITDA (e) 75,296 78,109 74,597 82,390 83,810
EBITDA per share - basic (e) 1.05 1.10 1.12 1.23 1.25
EBITDA per share - diluted (e) 0.95 0.99 1.00 1.11 1.13
Interest Coverage Ratio (c, e) 4.0 3.7 3.7 3.6 3.6
Interest Coverage Ratio (d, e) 2.8 2.7 2.7 2.7 2.8
Fixed Charge Coverage Ratio (c, e) 2.4 2.3 2.4 2.3 2.3
Fixed Charge Coverage Ratio (d, e) 1.9 1.9 1.9 1.9 2.0
Funds From Operations (b, e) 49,267 50,475 47,195 49,455 51,228
Adjusted Funds From Operations (e) 45,788 54,955 51,882 53,793 55,526
Dividends declared .4625 .4625 .4625 .4625 .4625
FFO payout ratio - Diluted (e) 79.5% 76.3% 75.5% 73.2% 72.3%
Net-Straight Line revenue/expense adjustment 3,165 2,415 3,239 3,708 4,969
Portfolio Size (including unconsolidated properties):
- -----------------------------------------------------
Buildings 297 277 262 262 275
Total Square Footage 23,679 22,309 22,631 23,047 23,797
Weighted Average Occupancy 96.9% 96.4% 96.8% 96.9% 97.6%
</TABLE>
(a) Operating Partnership
(b) See page 7 for definition of Funds from Operations (FFO).
(c) Excluding covering capitalized interest.
(d) Including covering capitalized interest.
(e) Restated to exclude discontinued operations.
4
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
- --------------------------------------------------------------------------------
(In thousands)
December 31, December 31,
1999 1998
------------ ------------
Assets
- ------
Rental Property:
Land $ 674,390 $ 692,484
Buildings 2,082,533 2,051,734
Tenant Improvements 304,983 192,211
Furniture, fixtures and equipment 5,916 57,140
------------ ------------
3,067,822 2,993,569
Less - accumulated depreciation (323,455) (262,458)
------------ ------------
Net rental property 2,744,367 2,731,111
Land held for future development 104,050 119,141
Construction-in-progress 116,013 347,294
Cash and cash equivalents - unrestricted 51,886 36,499
Cash and cash equivalents - restricted 12,475 48,640
Accounts and notes receivable 34,734 47,251
Investments 67,143 101,679
Accrued straight-line rents 47,764 39,273
Tenant leasing costs, net 58,848 42,552
Deferred financing costs, net 15,621 19,911
Goodwill, net -- 221,570
Prepaid expenses and other assets, net 18,503 38,563
Net assets of discontinued operations 207,668 --
------------ ------------
$3,479,072 $3,793,484
============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Liabilities:
Mortgages and notes payable $1,603,371 $1,704,359
Accounts payable and accrued expenses 68,643 133,767
Rent received in advance and security deposits 27,757 47,692
------------ ------------
1,699,771 1,885,818
------------ ------------
Minority interest 92,586 93,264
Stockholders' equity:
Preferred stock 95 95
Common stock 668 718
Additional paid in capital 1,816,990 1,926,057
Foreign currency translation adjustment -- 463
Cumulative dividends paid in excess of net income (131,038) (112,931)
------------ ------------
1,686,715 1,814,402
------------ ------------
$3,479,072 $3,793,484
============ ============
5
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
- --------------------------------------------------------------------------------
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Rental income (1):
Minimum base rent $110,506 $103,303 $422,440 $379,502
Recoveries from tenants 15,925 11,556 58,426 46,947
Parking and other tenant charges 3,411 4,647 17,983 14,007
----------- ---------- ---------- ----------
Total rental revenue 129,842 119,506 498,849 440,456
----------- ---------- ---------- ----------
Real estate service income 4,005 5,182 17,054 16,167
----------- ---------- ---------- ----------
Total operating revenues 133,847 124,688 515,903 456,623
----------- ---------- ---------- ----------
Operating expenses:
Property expenses:
Operating expenses 31,701 31,291 122,676 109,514
Real estate taxes 10,779 11,316 44,529 40,174
Interest expense 24,465 20,259 89,057 71,419
General and administrative 10,008 9,515 38,894 32,356
Depreciation and amortization 31,433 28,499 119,700 100,811
----------- ---------- ---------- ----------
Total operating expenses 108,386 100,880 414,856 354,274
----------- ---------- ---------- ----------
Real estate operating income 25,461 23,808 101,047 102,349
----------- ---------- ---------- ----------
Other operating income (loss):
Interest income 1,075 1,201 3,936 3,990
Equity in earnings of unconsolidated partnerships 1,376 1,529 5,167 5,282
Gain (loss) on settlement of treasury locks -- (13,729) 4,489 (13,729)
----------- ---------- ---------- ----------
Total other operating income (loss) 2,451 (10,999) 13,592 (4,457)
----------- ---------- ---------- ----------
Income from continuing operations before gain on sale
of assets, income taxes, and minority interest 27,912 12,809 114,639 97,892
Income taxes (783) -- (783) --
Minority interest (2,995) (2,505) (17,599) (16,072)
----------- ---------- ---------- ----------
Income from continuing operations before gain or 24,134 10,304 96,257 81,820
sale of assets
Discontinued operations--Income (loss) from
operations of discontinued Executive Suites
subsidiary (less applicable income tax expense
(benefit) of $944; 1,324; (816); and 1,898,
respectively) (1,891) 67 (7,862) 6,518
----------- ---------- ---------- ----------
Net income before gain on sale of assets: 22,243 10,371 88,395 88,338
Gain on sale of assets, net of income taxes 5,006 5,130 54,822 38,160
----------- ---------- ---------- ----------
Net income $ 27,249 $ 15,501 $143,217 $126,498
=========== ========== ========== ==========
Basic net income per common share:
Net income (loss) from continuing operations 0.36 0.14 1.42 1.19
Discontinued operations (0.03) 0.00 (0.12) 0.09
Gain on sale of assets, net 0.08 0.08 0.81 0.56
----------- ---------- ---------- ----------
Net income 0.41 0.22 2.11 1.84
=========== ========== ========== ==========
Diluted net income per share:
Net income (loss) from continuing operations 0.33 0.13 1.28 1.08
Discontinued operations (0.03) 0.00 (0.10) 0.08
Gain on sale of assets, net 0.07 0.07 0.73 0.50
----------- ---------- ---------- ----------
Net income 0.37 0.20 1.91 1.66
=========== ========== ========== ==========
</TABLE>
NOTES:
(1) Rental income includes $4,969 and $3,165 of accrued straight-line rents for
the three month periods ended December 31, 1999 and 1998, respectively, and
$14,331 and $13,919 of accrued straight-line rents for the years ended
December 31, 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 month and year end periods ended December 31, 1999 and 1998.
<TABLE>
<CAPTION>
(In thousands) Three Months Ended Year Ended
December 31, December 31,
----------------------- ------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net income from continuing operations before minority interest: $ 32,135 $ 17,939 $ 168,678 $ 136,052
Adjustments to derive funds from continuing operations:
Add Depreciation and amortization 30,913 28,060 117,829 99,274
Deduct:
Minority interests' (non Unitholders) share
of depreciation, amortization and net income (206) (193) (609) (380)
(Gain) loss on settlement of treasury locks -- 13,729 (4,489) 13,729
Gain on sale of assets, net of income taxes (5,006) (5,130) (54,822) (37,580)
---------- ---------- ---------- ----------
57,836 54,405 226,587 211,095
FFO from continuing operations before allocations to the minority
Unitholders
Less: FFO allocable to the minority Unitholders (3,983) (3,942) (16,545) (15,507)
---------- ---------- ---------- ----------
CarrAmerica Realty Corporation's FFO from continuing operations 53,853 50,463 210,042 195,588
Less: Preferred stock dividends (8,932) (8,932) (35,448) (35,571)
---------- ---------- ---------- ----------
CarrAmerica Realty Corporation's FFO from continuing operations
attributable to common shares $ 44,921 $ 41,531 $ 174,594 $ 160,017
---------- ---------- ---------- ----------
Discontinued Operations 6,307 7,736 23,759 23,459
CarrAmerica Realty Corporation's FFO attributable to common
shares $ 51,228 $ 49,267 $ 198,353 $ 183,476
========== ========== ========== ==========
Weighted average common shares outstanding:
Basic 66,818 71,760 67,858 68,577
========== ========== ========== ==========
Diluted 74,101 79,228 75,160 76,048
========== ========== ========== ==========
CarrAmerica Realty Corporation
FFO attributed to common shares $ 51,228 $ 49,267 $ 198,353 $ 183,476
Series A Preferred share dividends 315 315 1,258 1,381
Minority interest from convertible partnership units 3,983 3,942 16,545 15,507
---------- ---------- ---------- ----------
Adjusted FFO attributable to common shares $ 55,526 $ 53,524 $ 216,156 $ 200,364
========== ========== ========== ==========
Weighted average common
shares outstanding - Basic 66,818 71,760 67,858 68,577
Weighted average conversion of Series A Preferred shares 680 680 680 745
Weighted average conversion of operating partnership units 6,498 6,518 6,498 6,525
Incremental options 105 270 124 201
---------- ---------- ---------- ----------
Adjusted weighted average common shares - Diluted 74,101 79,228 75,160 76,048
========== ========== ========== ==========
</TABLE>
7
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Same Store Operating Property Results
- --------------------------------------------------------------------------------
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended % Year Ended %
December 31, Change December 31, Change
------------------------ ------------ -------------------------- ------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Real Estate Operating Revenue $94,973 $89,006 6.7% $326,001 $309,407 5.4%
Real Estate Operating Expenses 33,148 33,827 (2.0%) 110,540 106,907 3.4%
----------- ----------- ----------- -----------
Total Real Estate Operating Income
- GAAP Basis $61,825 $55,179 12.0% $215,461 $202,500 6.4%
=========== =========== =========== ===========
Straight-line Rent Adjustment (1,920) (2,431) (21.0%) (6,136) (7,509) (18.3%)
----------- ----------- ----------- -----------
Total Real Estate Operating Income
- Cash Basis $59,905 $52,748 13.6% $209,325 $194,991 7.4%
=========== =========== =========== ===========
YTD Average Occupancy 96.5% 96.2% 96.3% 96.1%
=========== =========== =========== ===========
Same Store Square Footage 17,033 14,888
=========== ===========
</TABLE>
8
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Statements of EBITDA
- --------------------------------------------------------------------------------
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
1999 1998 1999 1998
---- ---- ---- ----
CONTINUING OPERATIONS:
Revenues:
Rental Income $129,842 $119,506 $498,849 $440,456
Real estate service income 4,005 5,182 17,054 16,167
Other income (1) 2,451 2,730 9,103 9,272
--------- --------- -------- ---------
Total revenue 136,298 127,418 525,006 465,895
--------- --------- -------- ---------
Operating expenses:
Property operating expenses:
Operating expenses 31,701 31,291 122,676 109,514
Real estate taxes 10,779 11,316 44,529 40,174
General and administrative 10,008 9,515 38,894 32,356
--------- --------- -------- ---------
Total operating expenses 52,488 52,122 206,099 182,044
--------- --------- -------- ---------
EBITDA $ 83,810 $ 75,296 $318,907 $ 283,851
========= ========= ======== =========
NOTES:
(1) Balance has been restated to exclude discontinued operations. Also excludes
gains on sales of assets and gain (loss) on settlement of treasury locks.
9
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Financial Ratios
- --------------------------------------------------------------------------------
Financial Position Ratios for Continuing Operations: December 31, December 31,
- ---------------------------------------------------- 1999 1998
---- ----
Total Debt / Total Capitalization (Book Value) (4) 47.4% 45.8%
Total Debt / Total Capitalization (Market) (4) 44.7% 41.2%
Operating Ratios for Continuing Operations: Three Months Ended Year Ended
- ------------------------------------------- December 31, December 31,
------------------ --------------
1999 1998 1999 1998
-------- -------- ------ ------
Secured EBITDA / Total EBITDA (4) 32.1% 36.8% 34.47% 38.6%
Interest Coverage (1, 4)
Excluding covering capitalized interest 3.43 3.72 3.58 3.97
Covering capitalized interest 2.87 2.57 2.76 2.79
Fixed charge coverage (4)
Excluding covering capitalized interest 2.30 2.32 2.33 2.38
Covering capitalized interest 2.04 1.81 1.95 1.89
Diluted FFO Payout Ratio (2, 4) 70.1% 79.7% 72.2% 79.5%
G & A as a % of Revenue (3) 7.3% 7.5% 7.4% 6.9%
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 gains on sales of assets and gain on settlement of treasury locks.
Includes interest income and equity on earnings of unconsolidated
subsidiaries.
(4) Restated to exclude discontinued operations.
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 December 31, 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 year ended December 31, 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
CarrAmerica Corporation
Realty Series A
Corporation Convertible Dividend Paying Non-Dividend
Common Shares Preferred Shares Units Paying Units
Outstanding Outstanding (a) Outstanding (b) Outstanding
------------------ -------------------- ------------------- ---------------------
<S> <C> <C> <C> <C>
Outstanding as of:
December 31, 1999 66,826 680 6,048 432
December 31, 1998 71,760 680 5,978 540
================== ==================== =================== =====================
Weighted average for the three
months ended December 31:
1999 66,818 680 6,052 432
1998 71,760 680 5,978 540
================== ==================== =================== =====================
Weighted average for the year
ended December 31:
1999 67,858 680 6,003 495
1998 68,577 745 5,985 540
================== ==================== =================== =====================
</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
- --------------------------------------------------------------------------------
($ In thousands)
<TABLE>
<CAPTION>
INTEREST RATE PRINCIPAL BALANCE MATURITY DATE
------------- ----------------- -------------
SECURED INDEBTEDNESS:
<S> <C> <C> <C>
Total Secured Indebtedness 8.040% $635,371 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 Corporation LIBOR + 90 bps 343,000 08/26/01
Unsecured Line of Credit - OmniOffices, Inc. LIBOR + 90 bps 140,500 08/26/01
----------
Total Unsecured Indebtedness $1,743,871
==========
</TABLE>
12
<PAGE>
fourth quarter 1999
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 December 31, 1999:
<TABLE>
<CAPTION>
Number Percentage
Net Rentable Area Percent of of Total
Property (square feet)(1) Leased(2) Buildings Square Feet
- -------- --------------- --------- --------- -----------
<S> <C> <C> <C> <C>
Consolidated Properties
- -----------------------
SOUTHEAST REGION
Downtown Washington, D.C.:
International Square 1,014,555 98.0% 3
1730 Pennsylvania Avenue 229,377 99.3 1
2550 M Street 187,931 99.4 1
1775 Pennsylvania Avenue (3) 143,981 97.5 1
900 19th Street 101,215 100.0 1
1747 Pennsylvania Avenue (4) 151,942 97.1 1
1255 23rd Street (5) 305,528 98.5 1
Suburban Washington, D.C.:
One Rock Spring Plaza (3) 205,298 98.9 1
Reston Crossing East & West 323,821 100.0 2
Sunrise Corporate Center 260,253 100.0 3
Parkway One 87,842 100.0 1
Atlanta, GA:
Glenridge 64,052 47.7 1
Century Springs West 94,893 83.5 1
Holcomb Place 72,824 94.0 1
Midori 99,900 100.0 1
Parkwood 151,296 91.9 1
Lakewood 80,338 70.2 1
The Summit 179,085 100.0 1
2400 Lake Park 101,285 88.5 1
680 Engineering Drive 62,154 100.0 1
Embassy Row 465,674 96.7 3
Waterford Center 82,161 88.0 1
Spalding Ridge 128,233 99.3 1
Embassy 100, 500 190,470 100.0 2
Boca Raton, FL:
Peninsula Plaza 162,303 88.2 1
Presidential Circle 279,375 94.9 1
Peninsula Executive Center I & II 164,777 100.0 2
----------------- ------------ --
Southeast Region Subtotal 5,390,563 96.3% 36 23.8%
----------------- ------------
PACIFIC REGION
Southern California,
Orange County/Los Angeles:
Scenic Business Park 139,012 90.6 4
Harbor Corporate Park 151,888 99.2 4
Plaza PacifiCare 104,377 100.0 1
Katella Corporate Center 80,609 96.1 1
Warner Center 344,181 99.4 12
South Coast Executive Center 161,787 89.6 2
Warner Premier 61,553 93.4 1
Von Karman 103,713 100.0 1
2600 W. Olive 144,831 100.0 1
Bay Technology Center 107,481 100.0 2
Alton Deere Plaza 182,185 100.0 6
Pacific Corporate Plaza 3 40,063 100.0 1
</TABLE>
13
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percentage
Net Rentable Area Percent Number of of Total
Property (square feet)(1) Leased(2) Buildings Square Feet
- -------- --------------- --------- --------- -----------
<S> <C> <C> <C> <C>
Southern California,
San Diego:
Del Mar Corporate Plaza 123,142 100.0% 2
Wateridge Pavilion 62,194 100.0 1
Towne Center Technology Park I & II 182,120 100.0 3
Palomar Oaks Technology Park 170,358 100.0 6
Jaycor 105,358 100.0 1
Lightspan 64,800 100.0 1
La Jolla Spectrum 79,759 100.0 1
Highlands Corporate Center 205,085 95.1 5
Northern California,
San Francisco Bay Area:
CarrAmerica Corporate Center 1,001,976 100.0 6
Rio Robles 368,178 100.0 7
Valley Business Park II 166,928 100.0 6
Bayshore Centre II 94,874 100.0 1
Rincon Centre 201,178 100.0 3
Valley Centre II 212,082 100.0 4
Valley Office Centre 68,738 99.1 2
Valley Centre 102,291 100.0 2
Valley Business Park I 67,784 100.0 2
3745 North First Street 67,582 100.0 1
3571 North First Street 116,000 100.0 1
San Mateo I 70,000 100.0 1
San Mateo II and III 141,404 98.9 2
Hacienda West 206,652 89.2 2
Sunnyvale Technology Centre 165,520 100.0 5
Baytech Business Park 300,000 100.0 4
Golden Gateway Commons 272,393 99.3 3
Techmart Commerce Center 262,585 95.3 1
995 Benecia Avenue 36,344 100.0 1
Oakmead West A-G 425,981 100.0 7
Santa Clara Technology Park 178,132 100.0 3
Valley Technology Center 1, 2, 3, 4 & 5 350,000 90.2 5
Freemont Technology Park 1, 2, 3 120,688 100.0 3
Clarify Corporate Center 2, 3, 4 193,536 100.0 3
Portland, OR:
RadiSys Corporate Headquarters 80,525 100.0 1
RadiSys II 45,655 100.0 1
Seattle, WA:
Redmond East 396,497 100.0 10
Willow Creek 96,179 100.0 1
Canyon Park Business Center 285,428 100.0 6
Canyon Park Commons 95,290 100.0 1
Willow Creek Corporate Center 329,009 100.0 6
Redmond Hilltop B & C 90,880 100.0 2
Canyon Park Commons 1 & 2 110,398 100.0 2
----------------- ------------ --
Pacific Region Subtotal 9,335,203 98.7% 161 41.2%
----------------- ------------
</TABLE>
14
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
Current Summary of Portfolio Operating Properties
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Percentage
Net Rentable Area Percent of of Total
Property (square feet)(1) Leased(2) Buildings Square Feet
- -------- --------------- --------- --------- -----------
<S> <C> <C> <C> <C>
CENTRAL REGION
Austin, TX:
Great Hills Plaza 135,333 100.0% 1
Balcones Center 74,978 76.2 1
Park North 132,744 96.5 2
City View Centre 128,716 100.0 1
Riata 2, 4, 5, 6, 8, 9 519,313 98.9 6
Tower of the Hills 166,034 96.7 2
City View Center 136,183 100.0 3
Riata Crossing 1, 2, 3 265,177 100.0 3
Chicago, IL:
Parkway North I 249,314 100.0 1
Parkway North III 257,512 93.7 1
Parkway VI 91,604 91.4 1
Unisys 362,950 95.9 2
The Crossings 294,350 94.3 2
Bannockburn I & II 210,257 88.8 2
Bannockburn IV 108,469 100.0 1
Dallas, TX:
Quorum North 116,044 88.4 1
Quorum Place 178,210 97.5 1
Cedar Maple Plaza 113,127 95.6 3
Commons at Las Colinas 1, 3 380,764 100.0 2
Two Mission Park 77,710 96.9 1
Royal Ridge Phase II 123,740 100.0 1
5000 Quorum 159,712 96.8 1
Royal Ridge A & B 247,239 100.0 2
Tollway Plaza I & II 342,802 100.0 2
----------------- ------------ --
Central Region Subtotal 4,872,282 97.1% 43 21.5%
----------------- ------------
MOUNTAIN REGION
Denver, CO:
Harlequin Plaza 329,100 88.6 2
Quebec Court I 130,000 100.0 1
Quebec Court II 157,294 100.0 1
Quebec Centre 106,865 98.3 3
Panorama Corporate Center I 100,881 93.2 1
Panorama II 100,916 100.0 1
Panorama III 136,850 100.0 1
Panorama V 137,953 97.0 1
Phoenix, AZ:
Camelback Lakes 201,238 99.9 2
Pointe Corridor 144,219 98.3 1
Highland Park 78,969 82.9 1
The Grove at Black Canyon 104,571 95.9 1
US West 532,506 100.0 4
Four Gateway 137,709 90.8 1
Concord Place 133,555 78.8 1
Salt Lake City, UT:
Sorenson Research Park 285,869 99.7 5
Wasatch Corporate Center 178,231 100.0 3
Wasatch Corporate Center 18 49,886 98.2 1
----------------- ----------- --
Mountain Region Subtotal 3,046,612 96.3 31 13.4%
----------------- ----------- ----
TOTAL CONSOLIDATED PROPERTIES: 22,644,660 271 100.0%
----------------- -----
WEIGHTED AVERAGE 97.4%
-----------
</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) 242,787 98.4 1
Suburban Washington, D.C.:
Booz-Allen & Hamilton Building 50.0 (9) 222,989 100.0 1
---------- ----- ---
TOTAL UNCONSOLIDATED PROPERTIES: 1,152,538 4
---------- ---
WEIGHTED AVERAGE 99.7%
----
ALL OPERATING PROPERTIES
- ------------------------
TOTAL: 23,797,198 275
========== ===
WEIGHTED AVERAGE 97.6%
====
</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
December 31, 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. 2000 2001 2002 2003 2004
- --------------- ----------- --------- --------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PACIFIC REGION:
San Francisco Bay Area 5,190,846 98.6% 98.7% 72,912 334,573 504,334 842,509 642,419 677,322
Orange County / Los Angeles 1,621,680 97.5% 97.4% 40,381 279,076 178,901 206,554 186,938 301,096
Seattle 1,403,681 100.0% 97.7% -- 136,410 98,599 22,015 246,328 265,328
San Diego 992,816 99.0% 99.0% 10,147 71,551 197,180 77,234 206,844 247,477
Portland 126,180 100.0% 100.0% -- -- -- -- -- --
MOUNTAIN REGION:
Denver 1,199,859 95.8% 96.8% 50,160 53,619 86,596 199,747 133,418 181,786
Phoenix 1,332,767 95.4% 96.3% 61,292 112,903 80,585 150,521 89,869 109,497
Salt Lake City 513,986 99.6% 99.0% 1,824 57,023 104,531 45,520 109,278 124,180
CENTRAL REGION:
Chicago 1,574,456 95.0% 96.9% 79,094 122,463 175,860 263,272 325,203 114,816
Dallas 1,739,348 98.3% 97.1% 30,326 95,714 125,718 185,858 303,271 132,303
Austin 1,558,478 97.8% 96.7% 33,853 48,711 151,780 494,097 160,888 420,947
SOUTHEAST REGION:
Washington, D.C.
Downtown Properties 2,134,529 98.3% 96.0% 35,675 143,088 28,306 341,655 226,942 595,605
Suburban Properties 877,214 99.7% 99.8% 2,227 67,922 78,561 55,250 27,339 89,835
Atlanta 1,772,365 92.8% 92.3% 127,641 209,031 182,477 397,117 361,584 173,412
Boca Raton 606,455 94.5% 94.2% 33,366 115,237 70,287 50,528 70,299 85,501
------- ----- ----- ------ ------- ------ ------ ------ ------
Totals 22,644,660 97.4% 97.1% 578,898 1,847,321 2,063,715 3,331,877 3,090,620 3,519,105
========== ===== ===== ======= ========= ========= ========= ========= =========
<CAPTION>
2007
&
2005 2006 Thereafter
---- ---- ----------
<C> <C> <C>
PACIFIC REGION:
San Francisco Bay Area 322,935 577,367 1,216,475
Orange County / Los Angeles 17,677 104,326 306,731
Seattle 309,744 96,179 229,078
San Diego 19,232 78,202 84,949
Portland -- 126,180
MOUNTAIN REGION:
Denver 130,000 70,389 294,144
Phoenix 80,706 37,539 609,855
Salt Lake City -- 71,630 --
CENTRAL REGION:
Chicago 122,803 4,477 366,468
Dallas 38,408 13,530 814,220
Austin 2,171 16,515 229,516
SOUTHEAST REGION:
Washington, D.C.
Downtown Properties 54,215 199,633 509,410
Suburban Properties 179,854 52,405 323,821
Atlanta 8,092 -- 313,011
Boca Raton 38,716 3,095 139,426
------ ----- -------
Totals 1,324,553 1,325,287 5,563,284
========= ========= =========
</TABLE>
- --------------------------------------------------------------------------------
17
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
25 Largest Tenants - Based on Annualized Base Rent
- --------------------------------------------------------------------------------
Percentage of
Portfolio Percentage of
Annualized Square Occupied
Tenant Rent Feet Square Feet
- -------------------------------------------------- --------- -------------
International Monetary Fund 3.45% 470,332 2.09%
Applied Materials, Inc. 2.79% 578,376 2.57%
Nokia, Inc. 2.19% 380,764 1.69%
US West Business Resources, Inc. 2.14% 532,506 2.37%
AT&T 2.05% 579,689 2.58%
Peoplesoft, Inc. 1.85% 362,366 1.61%
Patton Boggs, L.L.P. 1.43% 180,444 0.80%
Electronic Data Systems 1.37% 308,785 1.37%
Nextel Communications, Inc. 1.35% 327,788 1.46%
Sun Microsystems, Inc. 1.16% 260,500 1.16%
Clarify, Inc. 1.15% 200,536 0.89%
Pacific Bell 1.07% 202,093 0.90%
Unisys Corporation 1.01% 217,061 0.96%
Franklin Resources, Inc. 0.95% 122,467 0.54%
Safeco Insurance Co. of America 0.92% 265,658 1.18%
Federal Deposit Insurance Corp. 0.89% 121,878 0.54%
Software AG of North America 0.85% 173,419 0.77%
Lucent Technologies, Inc. 0.79% 191,220 0.85%
Citicorp Savings of Washington, DC 0.77% 116,834 0.52%
The Walt Disney Company 0.76% 129,347 0.57%
King & Spalding 0.74% 84,161 0.37%
GTE North, Inc. 0.74% 176,420 0.78%
Gateway, Inc. 0.69% 182,120 0.81%
Boston Scientific 0.65% 212,082 0.94%
Merrill Lynch, Pierce, Fenner 0.62% 77,443 0.34%
----------- ----------- ----------
TOTAL 32.38% 6,454,289 28.66%
=========== =========== ==========
18
<PAGE>
CARRAMERICA REALTY CORPORATION AND SUBSIDIARIES
1999 Development Activity By Market
- --------------------------------------------------------------------------------
($ In Thousands)
<TABLE>
<CAPTION>
Estimated
Estimated Estimated Remaining
Property Under Construction @ Construction Stabilization In Place Costs to
December 31, 1999: Square Feet Start Date Completion Date Date Dev Costs Complete
- ------------------------------------------ ----------- ---------- --------------- ------------- --------- ----------
San Francisco Bay Area
<S> <C> <C> <C> <C> <C> <C>
Clarify Corporate Center A 64,512 1Q98 1Q99 1Q00 $13,897 $ (1,312)
Valley Technology Center 6 (N) 54,988 4Q99 3Q00 3Q00 5,812 5,654
Valley Technology Center 7 (S) 55,601 4Q99 3Q00 3Q00 5,812 5,655
----------- --------- ----------
San Francisco Bay Area 175,101 25,521 9,997
Subtotal
Seattle
Canyon Park 4 65,035 2Q98 1Q99 1Q00 6,742 1,913
----------- --------- ----------
Seattle Subtotal 65,035 6,742 1,913
San Diego
La Jolla Spectrum Technology
Park 76,894 3Q99 2Q00 1Q01 9,310 8,619
----------- --------- ----------
San Diego Subtotal 76,894 9,310 8,619
Orange County/Los Angeles
Art Institute 55,200 4Q99 3Q00 3Q00 4,500 4,643
Pacific Corporate Plaza 1 33,893 3Q98 3Q99 3Q00 4,614 454
Pacific Corporate Plaza 2 49,603 3Q98 3Q99 1Q00 5,639 1,558
----------- --------- ----------
Orange County/Los Angeles 138,696 14,753 6,655
Subtotal
Portland, Oregon
Sunset Corporate Park A 43,717 2Q98 1Q99 1Q00 3,000 2,003
Sunset Corporate Park B 43,717 2Q98 1Q99 1Q00 3,724 1,300
Sunset Corporate Park C 43,717 2Q98 1Q99 1Q00 3,620 1,399
Rock Creek Corporate Center 1 65,436 3Q98 3Q99 3Q00 7,175 1,317
Rock Creek Corporate Center 2 65,436 3Q98 3Q99 3Q00 5,955 2,624
Rock Creek Corporate Center 3 11,011 3Q98 3Q99 3Q00 1,030 399
----------- --------- ----------
Portland, Oregon Subtotal 273,034 24,504 9,042
Denver
Dry Creek Corporate Center
Building 3 94,291 4Q99 3Q00 2Q01 3,984 8,941
Panorama Corporate Center X 50,380 3Q99 1Q00 1Q01 2,198 4,275
----------- --------- ----------
Denver Subtotal 144,671 6,182 13,216
Salt Lake City
Wasatch 17 72,088 1Q98 1Q99 1Q00 8,678 267
Sorenson X 41,551 2Q98 1Q99 1Q00 4,644 362
----------- --------- ----------
Salt Lake City Subtotal 113,639 13,322 629
Austin
Riata Building 3 62,209 1Q98 2Q99 2Q00 7,435 1,225
----------- --------- ----------
Austin Subtotal 62,209 7,435 1,225
Dallas
Commons 2 223,470 4Q99 4Q00 4Q00 6,950 36,847
----------- --------- ----------
Dallas Subtotal 223,470 6,950 36,847
Chicago
Four Parkway North 171,157 2Q98 2Q99 1Q00 19,955 7,483
Ten Parkway North 99,509 4Q98 1Q00 1Q01 14,324 1,635
----------- --------- ----------
Chicago Subtotal 270,666 34,279 9,118
Total/Weighted Average 1,543,415 $148,998 $97,261
Less: Placed in service (281,222) (33,002) (11,866)
----------- --------- ---------
Total/Weighted Average 1,262,193 $115,996 $85,395
=========== ========= =========
<CAPTION>
Total Estimated % Currently
Property Under Construction @ Projected Stabilized Leased or
December 31, 1999: Investment Return Committed
- ------------------------------------------ ---------- ---------- -----------
<S> <C> <C> <C>
San Francisco Bay Area
Clarify Corporate Center A $12,585 10.5% 100.0%
Valley Technology Center 6 (N) 11,466 8.9% 100.0
Valley Technology Center 7 (S) 11,467 9.0% 100.0
---------- ----------- ------------
San Francisco Bay Area 35,518 9.5 100.0
Subtotal
Seattle
Canyon Park 4 8,655 10.5 0.0
---------- ----------- ------------
Seattle Subtotal 8,655 10.5 0.0
San Diego
La Jolla Spectrum Technology
Park 17,929 13.2 0.0
---------- ----------- ------------
San Diego Subtotal 17,929 13.2 0.0
Orange County/Los Angeles
Art Institute 9,143 15.3 100.0
Pacific Corporate Plaza 1 5,068 11.0 76.4
Pacific Corporate Plaza 2 7,197 11.6 92.7
---------- ----------- ------------
Orange County/Los Angeles
Subtotal 21,408 13.0 91.6
Portland, Oregon
Sunset Corporate Park A 5,003 9.4 24.8
Sunset Corporate Park B 5,024 9.4 0.0
Sunset Corporate Park C 5,019 9.4 0.0
Rock Creek Corporate Center 1 8,492 11.2 31.4
Rock Creek Corporate Center 2 8,579 11.1 0.0
Rock Creek Corporate Center 3 1,429 11.2 0.0
---------- ----------- ------------
Portland, Oregon Subtotal 33,546 10.4 11.5
Denver
Dry Creek Corporate Center
Building 3 12,925 9.5% 0.0
Panorama Corporate Center X 6,473 11.0 0.0
---------- ----------- ------------
Denver Subtotal 19,398 10.0 0.0
Salt Lake City
Wasatch 17 8,945 10.8 100.0
Sorenson X 5,006 9.5 92.6
---------- ----------- ------------
Salt Lake City Subtotal 13,951 10.3 97.3
Austin
Riata Building 3 8,660 11.1 82.2
---------- ----------- ------------
Austin Subtotal 8,660 11.1 82.2
Dallas
Commons 2 43,797 10.3 100.0
---------- ----------- ------------
Dallas Subtotal 43,797 10.3 100.0
Chicago
Four Parkway North 27,438 11.0 93.8
Ten Parkway North 15,959 10.6 72.7
---------- ----------- ------------
Chicago Subtotal 43,397 10.9 86.0
Total/Weighted Average $246,259 10.8% 61.7%
Less: Placed in service (44,868)
----------
Total/Weighted Average $201,391 10.8% 53.1%
========== =========== ============
</TABLE>
19
<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
- ---------------------------------------- ----------------------- ------- -----------
Pacific Region:
<S> <C> <C> <C>
CarrAmerica Corporate Center San Francisco Bay Area 2 86,000
Fremont Technology Park D-F San Francisco Bay Area 10 151,545
Sunset Corporate Portland, Oregon 9 124,800
------- ------------
Subtotal 21 362,345
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 49 679,791
Panorama VIII (Formerly Marriott Tract) Denver, Colorado 5 136,850
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 106 1,826,412
Central Region:
Braker Pointe Austin, Texas 22 750,000
Riata 1 & 7 Austin, Texas 11 153,224
Riata Crossing 4-6 Austin, Texas 18 176,030
Parkway North Chicago, Illinois 16 375,000
Tollway Plaza III Dallas, Texas 4 134,400
Royal Ridge II Dallas, Texas 18 316,786
Royal Ridge III Dallas, Texas 18 240,500
------- ------------
Subtotal 107 2,145,940
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 256 4,544,697
======== ============
</TABLE>
20
<PAGE>
HQ GLOBAL WORKPLACES, INC. AND OMNIOFFICES (UK) LIMITED
Condensed Consolidated Balance Sheets
- --------------------------------------------------------------------------------
(Unaudited and in thousands)
December 31, December 31,
1999 1998
----------------------------
Assets:
Current assets $ 75,719 $ 60,984
Fixed assets, goodwill (net) and other assets 361,137 303,180
------------- -------------
Total assets 436,856 364,164
============= =============
Liabilities and stockholders' equity:
Total liabilities including Long-Term Debt 266,836 192,663
Total stockholders equity 170,020 171,501
------------- -------------
Total liabilities and stockholders' equity 436,856 364,164
============= =============
21
<PAGE>
HQ GLOBAL WORKPLACES, INC. AND OMNIOFFICES (UK) LIMITED
Condensed Consolidated Contribution to Funds From Operations
- --------------------------------------------------------------------------------
(Unaudited and in thousands)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
---------------------------- ------------------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
<S> <C> <C> <C> <C>
Rental income 43,376 32,011 149,559 93,886
Other services and interest income 26,328 18,467 88,753 53,761
------------- ------------- -------------- --------------
Total operating revenue 69,704 50,478 238,312 147,647
Expenses:
Operating expenses 38,698 25,897 134,302 74,351
G & A selling expense 23,629 16,075 82,664 49,625
Interest expense and income taxes (1) 3,558 3,713 8,743 6,937
------------- ------------- -------------- --------------
Total expenses 65,885 45,685 225,709 130,913
------------- ------------- -------------- --------------
Net income (loss) before depreciation
and amortization 3,819 4,793 12,603 16,734
------------- ------------- -------------- --------------
Adjustments to derive funds from operations
Add:
Losses associated with Executive
Suites under development 1,544 2,232 11,972 5,766
Deferred tax expense (benefit) 944 711 (816) 959
------------- ------------- -------------- --------------
2,488 2,943 11,156 6,725
------------- ------------- -------------- --------------
Funds from operations 6,307 7,736 23,759 23,459
============= ============= ============== ==============
</TABLE>
(1) Excludes interest on loans from CarrAmerica Realty Corp.
22
<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
December 31, 1999.
Omni UK/
HQ Global Europe Total
------------ --------------- --------------
Stabilized Operating Centers
Owned 147 12 159
Joint Ventures 0 2 2
Managed 1 2 3
------------ --------------- --------------
148 16 164
Centers Under Development
Owned 7 6 13
Joint Ventures 0 6 6
------------ --------------- --------------
7 12 19
------------ --------------- --------------
Subtotal 155 28 183
Franchise Centers 78 0 78
------------ --------------- --------------
Total 233 28 261
============ =============== ==============
Stabilized Occupancy 87%
==============
23
