<PAGE>
EXHIBIT 99
Chateau Communities [LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE CONTACT: Tamara D. Fischer
July 26, 2000 Exec. VP/CFO
303-874-3334
-OR-
Erica H. Stull
VP/Investor Relations
303-874-3305
CHATEAU COMMUNITIES (CPJ) REPORTS OUTSTANDING SECOND QUARTER RESULTS
FFO PER SHARE INCREASES 9.8 PERCENT FOR SECOND QUARTER
YEAR-OVER-YEAR
Summary of Second Quarter 2000
. FFO increased 12.1 percent to $21.6 million for the second quarter of 2000,
as compared to $19.2 million in 1999.
. FFO per share, assuming dilution, increased to $0.67, up 9.8 percent as
compared to $0.61 for the same period last year.
. Home sales increased by 50 percent from last year; brokered sales increased
17 percent.
Greenwood Village, Colo. - Chateau Communities, Inc. (NYSE:CPJ), a fully-
integrated, self-administered real estate investment trust (REIT) specializing
in the ownership and management of manufactured home communities, today released
results for the second quarter of 2000.
Total revenues for the second quarter of 2000 were $50.8 million, an increase
of 8.4 percent from $46.8 million in the second quarter of 1999. Funds from
operations (FFO) for the second quarter increased 12.1 percent to $21.6 million,
from $19.2 million for the second quarter of 1999. On a diluted, per-share
basis, FFO increased to $0.67 per share from $0.61 per share for the same period
in 1999, a 9.8 percent increase.
For the six months ended June 30, 2000, total revenues were $99.6 million, up
7.8 percent from $92.4 million in 1999. Funds from operations (FFO) for the
first half of 2000 were $42.1 million, a 10.9 percent increase
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from the $37.9 million reported for the same period last year. FFO per share
increased 9.2 percent, to $1.31 for the first six months of 2000 from $1.20 for
the same period in 1999.
Same store net operating income for the second quarter increased by 4.4
percent from $28.5 million to $29.7 million. Same store rental income increased
4.1 percent to $45.9 million from $44.0 million for the second quarter of 1999.
Same store property operating expenses increased by 3.7 percent to $16.2 million
from $15.6 million last year.
Same store net operating income for the six months ended June 30 was $60.0
million, up 4.9 percent from $57.1 million for the same period last year. Rental
income increased 4.2 percent, from $87.8 million to $91.5 million, and same-
store property operating expenses increased 3.0 percent for the first half of
the year, from $30.7 million to $31.6 million.
For the full portfolio, second quarter rental income increased 4.7 percent
to $46.2 million from $44.1 million in the same period of 1999. Operating
expenses rose from $15.6 million to $16.3 million, a 3.9 percent increase. Net
operating income for the full portfolio increased 5.1 percent, from $28.5
million to $29.9 million in the second quarter.
For the six months ended June 30, rental income was up 4.7 percent for the
full portfolio, to $92.4 million from $88.3 in the first half of 1999.
Operating expenses increased 3.3 percent, from $30.9 million to $32.0 million.
Net operating income for the first six months of 2000 was $60.4 million for the
full portfolio, up 5.4 percent from $57.3 million in the same period of 2000
To date, Chateau has instituted 70 percent of annual rent increases
averaging 4.3 percent.
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Chateau expansion efforts are on track with the addition of 140 sites so far
this year. The Company expects to add a total of 650 new sites to the expansion
portfolio in 2000. The Company has the potential for 4,700 expansion sites in
32 properties available for future development. In its greenfield construction
portfolio, Chateau completed 170 new sites in the first half of 2000, and
expects to have completed a total of 500 by year-end. The Company has
approximately 640 sites in its greenfield portfolio as of June 30. Chateau
currently owns or has options on 12 greenfield developments, which will provide
a total of 4,700 sites to its portfolio upon completion. In the first six
months of 2000, approximately 200 sites were filled in greenfield or expansion
communities.
Chateau subsidiary Community Sales, Inc. sold 170 homes in the second quarter,
up 50 percent from the same period last year. The company brokered 390 sales, a
17 percent increase. The Company also arranged financing on approximately 250
loans in the second quarter, as compared to 215 for the same period last year.
Also in the second quarter N'Tandem, Chateau's affiliate REIT, successfully
closed on the acquisition of five communities comprising 986 homesites and
partial ownership interests in nine other communities for $26.0 million.
Funding was provided by first mortgages at an average interest rate of 8.6
percent, and from N'Tandem's line of credit.
The Company completed a $116 million secured master credit facility funded
through Fannie Mae's Multifamily and Manufactured Housing Community pilot. The
transaction for the 10-year fixed rate facility at 7.8 percent marked the first
time a manufactured housing Real Estate Investment Trust (REIT) has closed a
transaction with Fannie Mae's Multifamily Capital Markets and provides greater
security and flexibility for investors. The proceeds from the secured financing
were used to repay $85 million of secured mortgage debt, which was coming due
this year. The Company also filed a shelf registration to sell up to $200
million of debt securities, which may be used for long-term capital
requirements.
In June, Moody's Investors Service raised its ratings of Chateau's senior
unsecured debt to Baa2 from Baa3. As of June 30, 2000, the Company had
approximately $406 million of fixed rate debt, $47 million of debt outstanding
on its lines of credit, and $30 million outstanding under an unsecured short-
term note due in August 2000, with debt representing 33 percent of the Company's
total market capitalization. The Company has revolving
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credit facilities totaling $107 million, of which approximately $60 million was
available as of June 30, 2000. The credit facilities primarily bear interest at
LIBOR plus 80 basis points.
In July, "Communityplus" was introduced as the brand identity for the
Company's commitment to residents, including service guarantees and value-added
products and services.
The Company's New Business Development unit continues to build relationships
with national vendors and affiliates. Through an agreement with a national
waste management company, community trash removal contracts are being
renegotiated. HTC, Insight Communications, and Adelphia Communications have
joined the cable television providers working with Chateau on a national basis.
The Company is finalizing its first new business affiliate relationship,
representing approximately 5,000 homesites, and is in discussion with several
other potential affiliates representing more than 30,000 homesites for inclusion
in the Communityplus program.
Chateau Chief Executive Officer Gary McDaniel commented, "Our recent debt
refinancing efforts and the introduction of Communityplus continue to propel
Chateau toward completion of our strategic objectives. We're proud to continue
our record of consistent growth, quarter after quarter and year after year. The
strategic direction we've set should allow us to maintain this strong
performance."
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Management will hold a teleconference call Thursday, July 27, 2000 at 11:00
a.m. Eastern Daylight Time to discuss second quarter 2000 results. To
participate, call toll-free (888) 694-1314 and request the Chateau Communities
teleconference. An audio replay of the call will be available between 1:00
p.m. EDT Thursday and 8:00 p.m. EDT Friday. To access the replay, dial toll
free (800) 633-8284, reservation #15702574.
Headquartered in Greenwood Village, Colorado, Chateau Communities is one of
the largest owner/managers of manufactured home communities in the U.S. Its
portfolio consists of 165 communities with an aggregate of 51,913 residential
homesites, and 1,359 park model/RV sites. Chateau also manages 44 communities
with approximately 9,900 homesites and 175 park model/RV sites. In addition,
the company owns or has options on 12 greenfield development communities
aggregating approximately 4,700 sites. The Company operates in 34 states.
Please visit Chateau Communities at www.chateaucomm.com
-------------------
TABLES TO FOLLOW
The information in this news release contains forward-looking statements of
the Company's plans, objectives, and expectations, which are dependent upon a
number of factors, including that additional site expansions, community
acquisition and development activities, and other new business initiatives are
subject to a number of contingency factors such as the effects of national and
local economic conditions, changes in interest rates, supply and demand for
affordable housing, and the condition of the capital markets, all of which may
affect the Company's ability to achieve its objectives.
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CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2000 AND 1999
(Amounts in thousands, except per share/OP unit amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
<S> <C> <C> <C> <C>
2000 1999 2000 1999
---- ---- ---- ----
Rental Income $46,190 $44,119 $92,395 $88,289
Interest Income 2,290 1,394 4,468 2,637
Management fee and other income 2,294 1,324 2,760 1,519
----------- ------------------- ----------------- -----------------
Total Revenue 50,774 46,837 99,623 92,445
Property operating and maintenance 12,930 12,482 25,291 24,574
Real estate taxes 3,333 3,167 6,667 6,373
Administrative 2,535 2,235 5,096 4,307
----------- ------------------- ----------------- -----------------
Operating and administrative expenses 18,798 17,884 37,054 35,254
----------- ------------------- ----------------- -----------------
Income before interest and depreciation 31,976 28,953 62,569 57,191
Interest and related amortization 8,767 8,127 17,248 16,089
Depreciation and amortization 10,602 10,326 21,407 20,649
----------- ------------------- ----------------- -----------------
Income before net gain on sales of properties 12,607 10,500 23,914 20,453
Net gain on sales of properties - 3,141 - 2,805
----------- ------------------- ----------------- -----------------
Income before minority interests 12,607 13,641 23,914 23,258
Less income allocated to minority interests:
Preferred OP Units 1,524 1,524 3,047 3,047
Common OP Units 1,429 1,346 2,730 2,258
----------- ------------------- ----------------- -----------------
Net income available to common
shareholders $ 9,654 $10,771 $18,137 $17,953
=========== =================== ================= =================
Weighted average common shares outstanding 28,458 28,078 28,477 28,020
============== =================== ================= =================
Weighted average common shares outstanding
assuming dilution 28,505 28,251 28,518 28,193
============== =================== ================= =================
Weighted average common shares/ OP units
assuming dilution 32,143 31,748 32,189 31,716
============== =================== ================= =================
Per common share /OP unit:
Net income - basic $ 0.34 $ 0.38 $ 0.64 $ 0.64
============== =================== ================= =================
- assuming dilution $ 0.34 $ 0.38 $ 0.64 $ 0.64
============== =================== ================= =================
FFO - assuming dilution $ 0.67 $ 0.61 $ 1.31 $ 1.20
============== =================== ================= =================
Dividends/distributions declared $ 0.515 $ 0.485 $ 1.030 $ 0.970
============== =================== ================= =================
</TABLE>
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CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2000 AND 1999
(Amounts in thousands, except per share/OP unit amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ -----------------
<S> <C> <C> <C> <C>
FFO Reconciliation: 2000 1999 2000 1999
------- ------- ------- -------
Income before minority
interests $12,607 $13,641 $23,914 $23,258
Plus:
Depreciation and
amortization 10,602 10,326 21,407 20,649
Less:
Income allocated to
Preferred OP units 1,524 1,524 3,047 3,047
Depreciation expense on
corporate assets 125 65 215 130
Net gain on sale of
properties - 3,141 - 2,805
$21,560 $19,237 $42,059 $37,925
============== ============== ============== =================
Weighted average common
shares/OP units
outstanding - assuming
dilution 32,143 31,748 32,189 31,716
============== ============== ============== =================
FFO per weighted average
common share/OP Unit
assuming dilution $0.67 $0.61 $1.31 $1.20
============== ============== ============== =================
</TABLE>
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CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2000 AND 1999
(Dollars in thousands, except per share/OP unit amounts)
<TABLE>
<CAPTION>
Same Store Results
------------------
Three Months Ended
----------------- Growth
2000 1999 2000 over 1999
---- ---- --------------
<S> <C> <C> <C>
Property revenues $45,872 $44,047 4.1%
Property expenses 16,155 15,584 3.7%
-------------- ----------------- --------------
Net operating income $29,717 $28,463 4.4%
==============
Manufactured home
communities 161 161
============== =================
Park model/RV
communities 3 3
============== =================
Available homesites 51,496 51,352
============== =================
<CAPTION>
Six Months Ended
---------------- Growth
2000 1999 2000 over 1999
---- ---- --------------
Property revenues $91,527 $87,809 4.2%
Property expenses 31,634 30,718 3.0%
-------------- ----------------- ---------------
Net operating income $59,893 $57,091 4.9%
===============
Manufactured home
communities 160 160
============== =================
Park model/RV
communities 3 3
============== =================
Available homesites 51,186 51,042
============== =================
</TABLE>
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CHATEAU COMMUNITIES, INC.
FINANCIAL RESULTS
FOR THE THREE AND SIX MONTHS
ENDED JUNE 30, 2000 AND 1999
(Dollars in thousands, except per share/OP unit amounts)
<TABLE>
<CAPTION>
Summarized Financial Information
--------------------------------
Balance sheet information June 30, 2000 Dec. 31, 1999
------------------------- ------------- -------------
<S> <C> <C>
Rental property, net $ 864,458 $ 863,435
Rental property, before accumulated depreciation $ 1,077,713 $ 1,055,450
Total assets $ 995,451 $ 981,673
Total debt $ 486,876 $ 452,556
Minority interests $ 118,581 $ 121,142
Shareholders' equity $ 342,236 $ 361,820
Common shares outstanding 28,467,205 28,424,900
OP Units outstanding 3,634,302 3,705,698
Property information:
Manufactured home communities 162 162
Park model/RV communities 3 3
Available homesites 51,913 51,659
Occupied homesites 47,413 47,383
Occupancy rate 91.3% 91.7%
<CAPTION>
Debt Information:
as of June 30, 2000
Principal Weighted average
balance interest rate Maturity date
------------------------ -------------- -----------------
Fixed rate mortgage debt $ 135,611 7.8% 2002-2011
Senior unsecured debt 270,000 7.4% 2003-2005
Unsecured short-term note 30,000 7.4% 2000
Lines of credit 47,114 7.6% 2001
Other 4,151
------------------------
Total debt $ 486,876
========================
</TABLE>
