SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): July 7, 1998
HOME PROPERTIES OF NEW YORK, INC.
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(Exact name of registrant as specified in its charter)
Maryland 1-13136 16-1455126
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File No.) Identification No.)
850 Clinton Square, Rochester, New York 14604
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (716)546-4900
Not Applicable
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(Former name or former address, if changed since last report.)
<PAGE>
Item 5. OTHER EVENTS
On July 7, 1998, Home Properties of New York, Inc. ("Home Properties" or
"Registrant") closed on a $50 million supplemental unsecured revolving credit
facility with Manufacturers and Traders Trust Company, under terms consistent
with its existing revolving credit facility.
On July 8, 1998, Home Properties closed on its previously announced
acquisition of 17 apartment communities containing 4,002 apartment units for a
total purchase price of $155 million from the Kaplen Foundation and its
affiliated partnerships. The properties are located in New Jersey, Maine, new
York, Pennsylvania, Ohio and Michigan.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
a. Financial Statement of Businesses Acquired
None.
b. Pro Forma Financial Information
None.
c. Exhibits
99 Additional Exhibits
.1 Press Release dated July 9, 1998.
.2 Press Release dated May 26, 1998.
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.
Dated: July 13, 1998 HOME PROPERTIES OF NEW YORK, INC.
(Registrant)
By: /s/ Ann M. McCormick
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Ann M. McCormick,
Vice President
<PAGE>
Exhibit 99.1
HOME PROPERTIES COMPLETES PORTFOLIO ACQUISITION,
TOTAL MARKET CAP TOPS $1 BILLION
FOR IMMEDIATE RELEASE:
Thursday, July 9, 1998
ROCHESTER, New York/ PR NEWSWIRE/ -- Home Properties (NYSE:HME), a real estate
investment trust ("REIT") which owns, operates, acquires and develops apartment
communities in select Northeast, Midwest and Mid-Atlantic markets, today
announced that it has completed the acquisition of 17 apartment communities
containing 4,002 apartment units for a total purchase price of $155 million
from the Kaplen Foundation and its affiliated partnerships. The properties are
located in New Jersey (2,363 units), Maine (596 units), New York (327 units),
Pennsylvania (310 units), Ohio (242 units) and Michigan (164 units). Details of
the previously announced acquisition were included in a press release dated May
26, 1998.
Sources of financing for the acquisition included $80 million of cash on hand
raised through recent equity offerings, $50 million drawn under its existing
unsecured revolving credit facility, and $25 million drawn on a standby
facility provided by CIBC Oppenheimer. In addition, the Company closed on a $50
million supplemental unsecured revolving credit facility with M & T Bank, under
terms consistent with its existing revolving credit facility. Proceeds from the
supplemental facility will be available to fund future acquisitions and other
general corporate purposes.
With these acquisitions, the Company's total market capitalization has reached
$1 billion, of which 34% is debt and 66% reflects equity at current market
values. Year to date, the Company has acquired 28 communities containing 8,196
units for a total purchase price of $323 million.
According to Norman Leenhouts, Chairman and Co-CEO of Home Properties, "This
transaction represents a milestone in our Company's history. These properties
will allow us to further diversify our portfolio into solid markets where there
are barriers to new apartment construction. At the same time, we expect to
exceed our targeted yield of 10%, even before considering opportunities to
benefit from economies of scale. Finally, we are inheriting an experienced
property management team which will support future expansion into targeted
markets."
This press release contains forward-looking statements. Although the Company
believes expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectations will be
achieved. Factors that may cause actual results to differ include general
economic and local real estate conditions, other conditions that might affect
operating expenses, the timely completion of repositioning and current
development activities within anticipated budgets, the actual pace of future
acquisitions and developments, and continued access to capital to fund growth.
Home Properties is a fully integrated, self-administered and self-managed real
estate investment trust which now operates 252 communities containing 31,324
apartment units (not including pending acquisitions). Of these, 22,244 units in
90 communities are owned directly by the Company, 6,232 units are partially
owned and managed by the Company as general partner, and 2,848 units are
managed for other owners. The communities are located throughout the
Northeastern quadrant of the United States, including New York, Michigan,
Pennsylvania, Maryland, Illinois, New Jersey, Maine, Virginia, Connecticut,
Ohio and Indiana. In addition, Home Properties manages 1.7 million square feet
of commercial space. Home Properties' common stock is traded on the New York
Stock Exchange under the symbol "HME" and on the Berlin Stock Exchange under
the symbol "HMP GR". The Company's web site address is WWW.HOMEPROPERTIES.COM.
* * * * *
FOR FURTHER INFORMATION:
Amy L. Tait, Executive Vice President
Home Properties of New York, Inc.
(716) 246-4108
Exhibit 99.2
HOME PROPERTIES RELEASES DETAILS
ON PENDING PORTFOLIO ACQUISITION
FOR IMMEDIATE RELEASE:
Tuesday, May 26, 1998
Rochester, New York/ PR Newswire/ -- Home Properties (NYSE:HME), a real
estate investment trust ("REIT") which owns, operates, acquires and
develops apartment communities in select Northeast, Midwest, and Mid-
Atlantic markets, today released further details regarding its
previously-announced agreement to acquire a portfolio of 17 communities
(the "Acquisition Portfolio") containing 4,002 apartment units for a
total purchase price of $155 million from the Kaplen Foundation and its
affiliated partnerships. The transaction remains subject to certain
customary closing conditions.
The properties are located in New Jersey (2,363 units), Maine (596
units), New York (327 units), Pennsylvania (310 units), Ohio (242 units)
and Michigan (164 units). With the exception of two communities to be
acquired in Portland, Maine, all of the Acquisition Portfolio communities
are located in markets where Home Properties has an established presence.
Several individuals from the current residential property management team
will join Home Properties to staff a new regional office in Englewood,
New Jersey.
The Acquisition Portfolio is approximately 96% occupied, with monthly
rents averaging $626 and an average age of 33 years. The majority of the
buildings have brick exteriors, with unit sizes averaging 746 square
feet. (A schedule of property specific information appears at the end of
this press release.) The Company plans initial expenditures of
approximately $5 million for capital improvements. Additional
investments of approximately $10 million will be made over the next
several years to upgrade apartments, including replacing windows and
remodeling kitchens as warranted. Management expects the portfolio to
generate an initial 10% unleveraged return on acquisition and capital
Improvement costs (after allocating 3% of rental revenues for management
and overhead expenses and before normalized capital expenditures of
approximately $375 per unit annually).
The Company has received a commitment for a standby acquisition facility
for the full amount of the purchase price. If funded, the loan would
bear interest at LIBOR plus 165 basis points.
According to Norman Leenhouts, Chairman and Co-CEO of Home Properties,
"We are honored to have the opportunity to own and operate this portfolio
and look forward to completing the transaction within the next 30 to 60
days. This acquisition is consistent with our growth strategy of
expanding in markets where occupancies are tight, where there are
barriers to new apartment construction, and there are opportunities to
acquire and reposition existing communities at prices well below
replacement costs. Furthermore, we look forward to increasing economies
of scale as we continue to cluster in markets where we currently have a
presence."
The Company's investment in the Acquisition Portfolio will average
approximately $40,000 per apartment unit. Year to date, the Company has
acquired nine communities containing 3,055 apartment units for a total
purchase price of $120 million. In addition, management has announced a
pipeline of pending acquisitions which now totals $211 million, including
the Acquisition Portfolio. When and if consummated, these transactions
will result in a 62% net increase in the number of units owned since
January 1, 1998.
This press release contains forward-looking statements. Although the Company
believes expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectations will be
achieved. Factors that may cause actual results to differ include general
economic and local real estate conditions, other conditions that might affect
operating expenses, and the timely completion of repositioning activities
within anticipated budgets, the completion of anticipated acquisitions, and
continued access to capital to fund growth.
Home Properties is a fully integrated, self-administered and self-managed
real estate investment trust which currently operates 231 communities
containing 26,090 apartment units (not including pending acquisitions).
Of these, 17,103 units in 71 communities are owned directly by the
Company, 6,139 units are partially owned and managed by the Company as
general partner, and 2,848 units are managed for other owners. The
communities are located throughout the Northeastern quadrant of the
United States, including New York, Michigan, Pennsylvania, Maryland, New
Jersey, Virginia, Connecticut, Ohio, and Indiana. In addition, Home
Properties manages 1.7 million square feet of commercial space. Home
Properties' common stock is traded on the New York Stock Exchange under
the symbol "HME" and on the Berlin Stock Exchange under the symbol "HMP
GR". The Company's web site address is www.homeproperties.com.
Table follows.
<PAGE>
<TABLE>
<CAPTION>
3/98 3/98
Year Wtd. Avg. Wtd.Avg. Economic
Property Name # of Units Built Sq. Ft. Rent/ Occupancy
- ------------- ---------- ----- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
New Jersey
East Hill Gardens, 33 1957 695 $751 96.9%
Tenafly
Lakeview, Leonia 106 1968 492 $707 97.3%
Leland Gardens, 256 1972 575 $561 96.0%
Plainfield
Oak Manor, Ridgewood 77 1955 775 $946 100.0%
Pleasantview, 1,142 1967 745 $674 96.2%
Piscataway
Pleasure Bay, Long 270 1970 667 $583 98.1%
Branch
The Towers, Passaic 137 1961 916 $879 96.8%
Wayne Village, Wayne 275 1964 725 $733 97.8%
Windsor Realty, 67 1952 675 $695 98.2%
Woodridge
Maine
Mill Co. Gardens, So. 96 1950 550 $443 98.2%
Portland
So. Portland, So. 500 1943 836 $475 94.5%
Portland
New York
Mountainside, 227 1972 759 $745 97.8%
Garnerville
Patricia, Peekskill 100 1973 770 $774 99.1%
Pennsylvania
Beechwood Gardens, 160 1966 775 $579 90.9%
Phila.
Payne Hill Gardens, 150 1980 793 $553 94.1%
Payne Hill
Ohio
Weston Gardens, 242 1972 804 $439 94.8%
Columbus
Michigan
Cherry Hill Club, 164 1971 878 $515 95.0%
Inkster
Total/Average 4,002 746 $626 96.3%
</TABLE>
*****
For further information:
Amy L. Tait, Executive Vice President
Home Properties of New York, Inc.
(716) 546-4900 or (716) 246-4108
