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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Charles N. Talbert
Director of Investor Relations
(404) 262-3252
JDN REALTY CORPORATION ANNOUNCES FIRST QUARTER 2000 RESULTS
AND EXECUTIVE MANAGEMENT CHANGES
ATLANTA, GA (July 24, 2000) - JDN Realty Corporation (NYSE: JDN) today
announced results for the quarter ended March 31, 2000. For the first quarter,
diluted funds from operations per share was $0.39 compared with $0.48 for the
first quarter of 1999. Funds from operations was $12.8 million compared with
funds from operations for the first quarter of 1999 of $16.1 million. Net
income attributable to common shareholders was $12.9 million, or $0.40 per
share on a diluted basis, compared with net income attributable to common
shareholders for the first quarter of 1999 of $10.8 million, or $0.32 per share
on a diluted basis. Total revenues were $26.2 million, compared with total
revenues of $25.7 million for the first quarter of 1999. Legal, accounting and
professional costs attributable to the investigation by a special committee of
JDN's Board of Directors totaled $1.5 million for the quarter ended March 31,
2000, representing $0.05 per share on a diluted basis.
Commenting on the results, Craig Macnab, Chief Executive Officer of JDN Realty
Corporation, stated, "We have made significant progress in improving and
strengthening the Company in a relatively short period of time. Importantly, we
are making measurable progress with our tenant relationships by continuing to
deliver quality developments on time. We believe that as we continue to meet
and exceed the needs of our customers, we will build shareholder value. I can
assure you the entire management team is committed to that goal."
Macnab continued, "We understand that there is still much to do to restore the
Company's image and position in the marketplace. One of our first objectives is
to return to timely quarterly earnings announcements and filings. We are on
target for the second quarter earnings to be reported by the SEC's August 14th
deadline. To build shareholder value, we are also focused on other significant
objectives including refinancing our existing credit agreement for a longer
term at a lower overall cost. In addition, we will be engaging a financial
advisor to assist the Board of Directors and management team in its efforts to
increase shareholder value. Furthermore, we will be actively communicating the
progress we are making as a Company with shareholders and the investment
community."
In a separate announcement, Elizabeth L. Nichols has announced her resignation
as a Director of JDN Realty Corporation effective August 20, 2000, and as
President of the Company effective September 1, 2000.
Commenting on the announcement, Macnab stated, "Elizabeth has been a diligent
worker and essential in stabilizing the Company during the last six months. She
has been absolutely committed to fulfilling her responsibilities to
shareholders, customers and employees during this particularly challenging
time."
Ms. Nichols stated, "Despite the complete lack of involvement in or knowledge
of any of the events that have caused the challenges the Company has had to
face in recent months, I am aware that there are those in the market who see my
continued employment here as a hindrance to maximizing shareholder value in the
near term. In order to eliminate any such negative inference in the market, I
have chosen to resign. I believe the Company is now stabilized, and as a
significant shareholder, I feel extremely good about the talented and
experienced group of employees who will move up the ranks and carry JDN into
the future. I am confident of the Company's future in their hands." Ms. Nichols
has agreed to serve as a consultant to the Company until December 31, 2000.
Macnab continued, "The Board of Directors gratefully acknowledges Ms Nichols'
contribution to the Company over the last 20 years, and especially during the
recent period of difficulty. The Board wishes to emphasize that the Special
Committee's investigation found no evidence of wrongdoing or knowledge of any
wrongdoing on the
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part of Ms. Nichols. Her integrity, business ethics, and professional
competence are of the highest quality; and she has served the Company and its
shareholders faithfully and well."
In closing, Macnab stated, "Everyone appreciates the dedication and support
that Elizabeth brought to her job. During Elizabeth's twenty years at JDN, she
was an integral member of JDN's management team and instrumental in assembling
an outstanding team of dedicated professionals. We are grateful for her
leadership, and we wish her success in future endeavors."
During the first quarter, anchor tenants of the Company opened stores in
Eastman, Georgia; Greensboro, North Carolina; Monaca, Pennsylvania; McKinney,
Texas; Peachtree City, Georgia; and Pooler, Georgia. The Company made
non-anchor tenant deliveries in four markets. These openings, totaling 238,527
square feet of Company-owned gross leasable area (GLA), represent an investment
of approximately $28.0 million. Additionally, the Company commenced development
on five shopping centers during the first quarter. As of March 31, 2000, the
development and redevelopment activity included 33 projects under construction
containing 2.8 million square feet of Company-owned GLA representing an
investment, upon completion, of approximately $309.4 million.
For the first quarter, the Company announced the following leasing and property
management information:
o On a same property basis, annualized base rent per leased square foot was
$6.95 as of March 31, 2000, which was slightly lower than the annualized
base rent per leased square foot as of March 31, 1999.
o At the end of the quarter, the Company's portfolio was 96.3% leased.
o 19 tenants' leases were renewed at an average increased rent of 8.2%.
o 79 tenants incurred contractual rental increases averaging 3.9%.
The Company paid a cash dividend on its common stock of $0.395 per share on
March 31, 2000, to shareholders of record on March 17, 2000. Subsequent to the
first quarter, the Company paid a cash dividend on its common stock of $0.30
per share on June 30, 2000, to shareholders of record on June 15, 2000.
In addition, the Company paid a cash dividend on its 9 3/8% Series A Cumulative
Redeemable Preferred Stock of $0.586 per share on March 31, 2000, to
shareholders of record on March 15, 2000. Subsequent to the first quarter, the
Company paid a cash dividend on its preferred stock of $0.586 per share on June
30, 2000, to shareholders of record on June 15, 2000.
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 114 properties, containing approximately 12.3 million
square feet of gross leasable area, located in 18 states. The common stock and
preferred stock of JDN Realty Corporation are listed on the New York Stock
Exchange under the symbols "JDN" and "JDNPrA", respectively.
JDN Realty Corporation considers the portions of the information contained in
this release and statements made in connection with this release with respect
to the Company's beliefs and expectations of the outcome of future events,
including statements in the second and third paragraphs of this release, 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 a number of factors, including but not
limited to the impact of the events described in this release on the market
capitalization of the Company, and on the Company's business prospects and
relationships with its creditors, tenants and employees, any additional
management changes, the ability to attract and retain key employees, the
inability to maintain current dividend levels, or any litigation or regulatory
actions, may adversely affect the Company's financial condition and results of
operations. Other risks, uncertainties and factors that could adversely affect
the Company's financial condition and results of operations 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. JDN Realty Corporation does not
undertake any obligation to release publicly any revisions to forward-looking
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statements contained herein to reflect events or circumstances occurring after
the date hereof or to reflect the occurrence of unanticipated events.
For additional information, visit the Company's home page on the
Internet at http://www.jdnrealty.com.
FINANCIAL HIGHLIGHTS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999 Percent Change
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<S> <C> <C> <C>
Total revenues $26,156 $25,690 1.8%
Net income attributable to common shareholders $12,887 $10,760 19.8%
Funds from operations $12,782 $16,146 (20.8)%
Net income attributable to common shareholders
(net of preferred dividends) per share:
Basic $ 0.40 $ 0.33 22.4%
Diluted $ 0.40 $ 0.32 24.1%
Funds from operations per share:
Basic $ 0.40 $ 0.49 (19.0)%
Diluted $ 0.39 $ 0.48 (17.9)%
Dividends per share $ 0.395 $ 0.360 9.7%
Gross leasable square footage (operating) (1) 12,763 12,762 0.01%
Percent leased (1) 96.3% 96.4% (0.1)%
</TABLE>
(1) As of the end of the applicable period.
A copy of the Company's supplemental materials for the quarter ended March 31,
2000, 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]
