<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 4, 1999 (February 2, 1999)
--------------------------------
JDN Realty Corporation
(Exact name of registrant as Specified in its Charter)
Maryland 1-12844 58-1468053
- --------------- ------------------------ ----------------------
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification Number)
Incorporation)
359 East Paces Ferry Road
Suite 400
Atlanta, Georgia 30305
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(404) 262-3252
----------------------------------------------------
(Registrant's telephone number, including Area Code)
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Item 5. OTHER EVENTS
------------
On February 2, 1999, JDN Realty Corporation released its earnings for the
three months and year ended December 31, 1998. A copy of the press release is
included as an exhibit to this filing.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
Financial Statements:
None
Exhibits:
Exhibit No. Description
----------- -----------
99.1 JDN Realty Corporation Earnings
Release for the Quarter Ended
December 31, 1998
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 hereunto duly authorized.
JDN REALTY CORPORATION
By: /s/ William J. Kerley
------------------------
William J. Kerley
Chief Financial Officer
Date: February 4, 1999
----------------
3
<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description
- ----------- -----------
99.1 JDN Realty Corporation Earnings Release for
the Quarter Ended December 31, 1998
4
<PAGE>
EXHIBIT 99.1
JDN Realty Corporation Earnings Release for the
Quarter Ended December 31, 1998
<PAGE>
FOR IMMEDIATE RELEASE
Contact: William J. Kerley
Chief Financial Officer
(404) 262-3252
JDN REALTY CORPORATION INCREASES FUNDS FROM
OPERATIONS PER SHARE BY 12.6% FOR THE FOURTH QUARTER
ATLANTA, GA (February 2, 1999) - JDN Realty Corporation (NYSE: JDN) today
announced results for the quarter ended December 31, 1998. For the fourth
quarter, diluted funds from operations per share increased 12.6% to $0.48
compared with $0.43 for the fourth quarter of 1997. Funds from operations
increased 41.9% to $15.7 million compared with funds from operations for the
fourth quarter of 1997 of $11.0 million. Income before extraordinary items
increased 46.6% to $11.6 million, or $0.32 per share on a diluted basis,
compared with income before extraordinary items for the fourth quarter of 1997
of $7.9 million, or $0.31 per share on a diluted basis. Total revenues increased
68.9% to $24.4 million, compared with total revenues of $14.5 million for the
fourth quarter of 1997.
For the year ended December 31, 1998, diluted funds from operations per share
increased 13.3% to $1.82 compared with $1.61 for the year ended December 31,
1997. Funds from operations increased 50.6% to $56.8 million compared with funds
from operations for the year ended December 31, 1997 of $37.7 million. Income
before extraordinary items increased 51.8% to $41.3 million, or $1.28 per share
on a diluted basis, compared with income before extraordinary items for the
comparable period last year of $27.2 million, or $1.16 per share on a diluted
basis. Total revenues increased 69.4% to $81.3 million, compared with total
revenues of $48.0 million for the comparable period last year.
Commenting on the results, J. Donald Nichols, chairman and chief executive
officer, stated, "We have capitalized on the lessons we have learned in more
than two decades of developing retail shopping centers, and in 1998, despite a
challenging market, we were able to successfully execute our growth strategy.
The 1.8 million square feet of company-owned gross leasable area (GLA) that we
delivered through our development assignments, and the fact that JDN Realty was
in the top 10% for total return of all publicly-traded real estate investment
trusts is an endorsement of the success of our strategy. Of note, we have
delivered a compounded annualized growth rate in our FFO per share of 13.2% over
the last four years. Over this same four-year period, we have produced a
compounded annualized total return to our shareholders of 19.0%, the highest
among active retail shopping center REITs. We continue our goal of becoming a
national real estate developer and in 1998, we delivered development projects to
our tenants in eight states and have active projects under construction in 12
states."
Nichols continued, "We celebrated a record number of grand openings this quarter
with anchor tenants opening in Nashville, Tennessee, Brandon, Florida, and
Alpharetta, Buford, Lawrenceville and Tucker, Georgia, totaling 939,662 square
feet of company-owned GLA representing an investment of approximately $77.5
million. Additionally, we commenced development on four centers during the
quarter. Our current development and redevelopment activity includes 36
<PAGE>
projects under construction containing 3.2 million square feet of company-owned
GLA representing an investment, upon completion, of approximately $319 million."
"Key to the Company's success of delivering our development assignments on-time
is our ability to effectively access the capital markets. Last year we were
successful in raising approximately $230 million in a combination of common and
preferred stock and unsecured debt; importantly, we raised $85 million of equity
in the last four months of the year. Going into 1999, we have the financial
flexibility necessary to continue to successfully grow our business. We have
proven access to the capital markets and over 90% of our properties are
unencumbered. As a result, we can choose from a complete menu of capital raising
alternatives, including common or preferred equity, unsecured or secured debt,
asset dispositions and joint ventures." added Nichols.
In closing, Nichols stated, "We will continue to implement our strategy of
developing high-quality, well-anchored retail shopping centers. We believe that
opportunities for development will be limited to companies like JDN Realty
Corporation, with a successful track record, strong tenant relationships and
with proven access to the capital markets."
For the fourth quarter, the Company announced the following leasing and property
management information:
. On a same property basis, annualized base rent per leased square foot
increased 1.0% to $7.29 as of December 31, 1998, from $7.22 as of December 31,
1997.
. On a same property basis, annualized base rent per leased square foot
for non-anchor tenants increased 3.2% to $13.22 as of December 31, 1998, from
$12.81 as of December 31, 1997.
. At the end of the quarter the Company's portfolio was 96.4% leased.
. 25 tenants' leases were renewed at an average increase of 6.3%.
. 97 tenants incurred contractual rental increases averaging 4.6%.
The Company paid a cash dividend on its common stock of $0.36 per share on
December 23, 1998, to shareholders of record on December 11, 1998. The dividend
is equivalent to an annualized dividend of $1.44 per share and represents a
payout ratio of 73.9% of basic funds from operations for the quarter, compared
with 76.8% for the fourth quarter of 1997. In addition, The Company paid a cash
dividend on its 9 3/8% Series A Convertible Preferred Stock of $0.586 per share
on December 31, 1998, to shareholders of record on December 15, 1998.
JDN Realty Corporation is a real estate company specializing in the development
and asset management of retail shopping centers anchored by value-oriented
retailers. Headquartered in Atlanta, Georgia, the Company owns and operates
directly or indirectly 91 properties, containing approximately 12.1 million
square feet of gross leasable area, located in 14 states. The common stock and
preferred stock of JDN Realty Corporation is listed on the New York Stock
Exchange under the symbol "JDN" and "JDNPrA", respectively.
JDN Realty Corporation considers the portions of the information contained in
this release, with respect to the Company's expectation for future periods, to
be forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
both as amended. Such statements are, by their nature, subject to certain risks
and uncertainties. We caution you that, as a result of a number of factors,
actual results could differ materially from those set forth in this
presentation. Other risks, uncertainties and
<PAGE>
factors that could cause actual results to differ materially than those
projected are detailed from time to time in reports filed by the Company with
the Securities and Exchange Commission, including Forms 8-K, 10-Q and 10-K.
For additional information, visit the Company's home page on the Internet at
http://www.irinfo.com/jdn.
--------------------------
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except per share data)
Three Months Ended December 31,
1998 1997 Percent Change
---- ---- --------------
<S> <C> <C> <C>
Total revenues .................................................. $24,439 $14,473 68.9%
Net income attributable to common shareholders .................. $10,445 $ 7,926 31.8%
Funds from operations ........................................... $15,650 $11,028 41.9%
Net income attributable to common shareholders per share:
Basic ........................................................ $ 0.32 $ 0.31 4.1%
Diluted ...................................................... $ 0.32 $ 0.31 4.6%
Funds from operations per share:
Basic ........................................................ $ 0.49 $ 0.43 12.1%
Diluted ...................................................... $ 0.48 $ 0.43 12.6%
Dividends per share ............................................. $0.3600 $0.3333 8.0%
Three Months Ended December 31,
1998 1997 Percent Change
---- ---- --------------
Total revenues .................................................. $81,311 $48,005 69.4%
Income before extraordinary items ............................... $41,337 $27,233 51.8%
Net income attributable to common shareholders .................. $39,996 $21,293 87.8%
Funds from operations ........................................... $56,792 $37,701 50.6%
Income before extraordinary items (net of preferred dividends)
per share:
Basic ........................................................ $ 1.30 $ 1.18 10.3%
Diluted ...................................................... $ 1.28 $ 1.16 10.4%
Funds from operations per share:
Basic ........................................................ $ 1.85 $ 1.63 13.2%
Diluted ...................................................... $ 1.82 $ 1.61 13.3%
Dividends per share ............................................. $1.4133 $1.3167 7.3%
Gross leasable square footage (operating) (1) ................... 12,098 8,327 45.3%
Percent leased (1) .............................................. 96.4% 97.1% (0.7)%
</TABLE>
(1) As of the end of the applicable period.
Note: In the fourth quarter of 1997, the Company adopted Statement of Financial
Accounting Standard No. 128 - Earnings Per Share and restated all prior earnings
per share to conform to the new requirements. The standard requires the Company
to present two measures of earnings per share. Basic earnings per share is based
upon the weighted average common shares outstanding for the period, while
diluted earnings per share includes the effects of additional shares resulting
primarily from stock-based compensation.
A copy of the Company's supplemental materials for the quarter ended December
31, 1998, is available to interested parties upon written request to:
Charles Talbert, Investor Relations
JDN Realty Corporation
359 East Paces Ferry Road,
Suite 400
Atlanta, Georgia 30305
Fax: (404) 364-6446
[email protected]
<PAGE>
JDN REALTY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
------------ ------------
(Unaudited)
(In thousands)
<S> <C> <C>
ASSETS
Shopping center properties, at cost:
Land ................................................................... $153,111 $ 85,837
Buildings and improvements ............................................. 619,963 397,110
Property under development ............................................. 74,192 52,356
-------- --------
847,266 535,303
Less: accumulated depreciation and amortization ........................ (56,093) (38,306)
-------- --------
Shopping center properties, net .................................... 791,173 496,997
Cash and cash equivalents .................................................. -- 11,439
Rents receivable ........................................................... 7,158 2,691
Investments in and advances to unconsolidated entities ..................... 151,040 71,221
Deferred costs, net of amortization ........................................ 4,424 4,189
Other assets ............................................................... 15,127 13,216
-------- --------
$968,922 $599,753
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Unsecured notes payable ............................................... $234,573 $159,511
Unsecured lines of credit ............................................. 148,519 43,500
Mortgage notes payable ................................................ 42,471 13,591
Accounts payable and accrued expenses ................................. 11,550 6,719
Other liabilities ..................................................... 10,764 4,844
-------- --------
Total Liabilities ................................................. 447,877 228,165
Third party investors' interest ........................................... 3,000 --
Shareholders' Equity
Preferred stock, par value $.01 per share authorized 20,000,000 shares:
9 3/8% Series A Cumulative Redeemable Preferred Stock, liquidation
preference $25 per share, issued and outstanding 2,000,000 and -0-
shares in 1998 and 1997, respectively ............................. 20 --
Common stock, par value $.01 per share - authorized 150,000,000 shares,
issued and outstanding 32,704,408 and 27,745,798 shares in 1998 and
1997, respectively ................................................ 327 277
Paid-in capital ....................................................... 524,787 378,400
Accumulated deficit ................................................... (7,089) (7,089)
-------- --------
Total Shareholders' Equity ........................................ 518,045 371,588
-------- --------
$968,922 $599,753
======== ========
</TABLE>
4
<PAGE>
JDN REALTY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended December 31,
1998 1997
-------- --------
(In thousands)
<S> <C> <C>
Revenues:
Minimum and percentage rents....................................... $ 20,601 $ 13,043
Recoveries from tenants............................................ 3,816 1,401
Other revenue...................................................... 22 29
-------- --------
Total revenues................................................. 24,439 14,473
Operating expenses:
Operating and maintenance.......................................... 2,046 938
Real estate taxes.................................................. 2,274 865
General and administrative......................................... 1,796 1,322
Depreciation and amortization...................................... 4,996 3,005
-------- --------
Total operating expenses....................................... 11,112 6,130
-------- --------
Income from operations............................................. 13,327 8,343
Other income (expense):
Interest expense, net.............................................. (3,026) (1,559)
Other income, net.................................................. 298 318
Equity in net income of unconsolidated entities.................... 1,068 824
-------- --------
Income before minority interest in net income
of consolidated subsidiary......................................... 11,667 7,926
Minority interest in net income of consolidated subsidiary.............. (50) --
-------- --------
Net Income..................................................... 11,617 7,926
Dividends to preferred shareholders............................ (1,172) --
-------- --------
Net income attributable to common shareholders................. $ 10,445 $ 7,926
======== ========
Net Income attributable to common shareholders per common share:
Basic.............................................................. $ 0.32 $ 0.31
======== ========
Diluted............................................................ $ 0.32 $ 0.31
======== ========
</TABLE>
5
<PAGE>
JDN REALTY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Year Ended December 31,
1998 1997
------- -------
<S> <C> <C>
(In thousands)
Revenues:
Minimum and percentage rents..................................................... $71,191 $43,346
Recoveries from tenants.......................................................... 10,003 4,512
Other revenue.................................................................... 117 147
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Total revenues............................................................... 81,311 48,005
Operating expenses:
Operating and maintenance........................................................ 6,439 3,201
Real estate taxes................................................................ 5,316 2,540
General and administrative....................................................... 7,105 4,265
Depreciation and amortization.................................................... 16,824 10,130
------- -------
Total operating expenses..................................................... 35,684 20,136
------- -------
Income from operations........................................................... 45,627 27,869
Other income (expense):
Interest expense, net............................................................ (9,454) (4,856)
Other income, net................................................................ 945 1,205
Equity in net income of unconsolidated entities.................................. 4,036 3,367
------- -------
Income before minority interest in net income
of consolidated subsidiary....................................................... 41,154 27,585
Minority interest in net income of consolidated subsidiary............................ (196) --
------- -------
Income before net gain (loss) on real estate
sales, extraordinary items....................................................... 40,958 27,585
Net gain (loss) on real estate sales.................................................. 379 (352)
------- -------
Income before extraordinary items..................................................... 41,337 27,233
Extraordinary items................................................................... -- (5,940)
------- -------
Net Income................................................................... 41,337 21,293
Dividends to preferred shareholders.......................................... (1,341) --
------- -------
Net income attributable to common shareholders............................... $39,996 $21,293
======= =======
Income per common share - basic:
Income before extraordinary items (net of preferred dividends)................... $ 1.30 $ 1.18
Extraordinary items.............................................................. -- (0.26)
------- -------
Net income attributable to common shareholders................................... $ 1.30 $ 0.92
======= =======
Income per common share - diluted:
Income before extraordinary items (net of preferred dividends)................... $ 1.28 $ 1.16
Extraordinary items.............................................................. -- (0.25)
------- -------
Net income attributable to common shareholders................................... $ 1.28 $ 0.91
======= =======
</TABLE>
6
