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) September 30, 1997
GLENBOROUGH REALTY TRUST INCORPORATED
(Exact name of registrant as specified in its charter)
Maryland 33-83506 94-3211970
(State or other (Commission (IRS Employer
Jurisdiction of File Number) I.D. Number)
incorporation)
400 South El Camino Real, Suite 1100, San Mateo, California 94402
Address of principal executive offices
Registrant's Telephone number, including area code: (650) 343-9300
N/A
(Former name or former address, if changes since last report)
This form 8-K contains a total of 6 pages.
No Exhibits Required
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Item 5. Other Events
On October 17, 1997, the Registrant made available information concerning
the operating results of the Registrant, Glenborough Realty Trust Incorporated,
for the quarter and nine months ended September 30, 1997, in the form of a Press
Release, a copy of which is included as an exhibit to this filing.
Item 7. Financial Statements and Exhibits
Financial Statements:
None
Exhibits:
Page Number in
Exhibit No. Description This Filing
99 Operating Results as of September 30, 1997 3
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.
GLENBOROUGH REALTY TRUST INCORPORATED
Date: October 17, 1997 By: /s/ Stephen R. Saul
--------------------
Stephen R. Saul
Executive Vice President,
Chief Financial Officer
(Principal Financial Officer)
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GLENBOROUGH REALTY TRUST INCORPORATED
PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACTS:
Andrew Batinovich, President and COO
Stephen R. Saul, Executive Vice President & CFO
Glenborough Realty Trust Incorporated
650-343-9300
Jennifer R. Wall
Mary Ellen Goodall
D.F. King & Co., Inc.
212-269-5550
GLENBOROUGH REALTY TRUST INCORPORATED ANNOUNCES THIRD QUARTER
FUNDS FROM OPERATIONS OF $0.43 PER SHARE
SAN MATEO, CALIFORNIA, OCTOBER 17, 1997 --- Glenborough Realty Trust
Incorporated (NYSE: GLB), a diversified real estate investment trust, announced
Funds From Operations ("FFO") of $0.43 per share for the third quarter, in line
with consensus analyst estimates.
Third Quarter Financial Performance
Glenborough's FFO for the third quarter of 1997 was $9.0 million, a 269%
increase over 1996 third quarter FFO of $2.4 million. Per share FFO increased
10% to $0.43 per share from $0.39 per share for the same period in 1996. Third
quarter net income totaled $4.9 million, or $0.25 per share as compared to 1996
net income for the same period of $1.0 million or $0.17 per share.
For the nine months ended September 30, 1997, FFO was $20.0 million which
represents a 165 % increase when compared to FFO of $7.5 million for the same
period in 1996. FFO per share increased 7% for the same period from $1.20 to
$1.28.
Revenue for the third quarter and nine months ended September 30, 1997 was $18.3
million and $40.8 million respectively which represent increases of 269% and
196% respectively when compared to the same periods in 1996.
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- -------------------------------------------------------------------------------
Glenborough Realty Trust Incorporated
October 17, 1997
- -------------------------------------------------------------------------------
Certain statements in this release constitute "forward-looking statements" and
involve risks, uncertainties and other factors which may cause the actual
outcome to be materially different from the outcome expressed or implied by such
statements. Such risks and uncertainties are detailed from time to time in
Glenborough's Securities and Exchange Commission filings.
Glenborough is a self-administered and self-managed REIT with a diversified
portfolio of 102 properties including industrial, office, multifamily, retail
and hotel properties. In addition, two Associated Companies control similarly
diversified portfolios comprising 55 properties. Combined, the portfolios
encompass approximately 16 million square feet and are spread among 24 states
throughout the country. Formed on December 31, 1995, Glenborough is organized
under what is often referred to as an "UPREIT" structure which provides it with
added flexibility to acquire additional properties or portfolios by exchanging
partnership units for assets in tax-deferred transactions.
(TABLES TO FOLLOW)
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except shares outstanding and per share information)
For the Three Months Ended For the Nine Months Ended
Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1997 Sept. 30, 1996
-------------- -------------- -------------- --------------
REVENUE
<S> <C> <C> <C> <C>
Rental revenue $ 16,208 $ 4,242 $ 35,899 $ 11,281
Management fee income 205 66 572 199
Interest and other income 554 253 1,167 623
Equity in earnings of Associated Companies 1,339 394 1,942 1,363
Net gain on sales of rental properties (15) -- 555 321
Gain on collection of note receivable -- -- 652 --
------------- ----------- ------------ ----------
Total revenue 18,291 4,955 40,787 13,787
OPERATING EXPENSES
Operating expenses 5,237 1,335 11,282 3,244
General and administrative 657 302 2,031 977
Depreciation and amortization 4,823 935 8,867 2,694
Interest expense 2,616 1,125 6,416 2,546
------------- ----------- ------------ ----------
Total operating expenses 13,333 3,697 28,596 9,461
Income from operations before minority interest and
extraordinary item 4,958 1,258 12,191 4,326
Minority interest (60) (69) (689) (312)
Loss on debt refinancing -- (186) -- (186)
------------- ----------- ------------ ----------
Net income excluding Consolidation costs 4,898 1,003 11,502 3,828
Consolidation costs -- -- -- (6,082)
Litigation costs -- -- -- (1,155)
------------- ----------- ------------ ----------
Net income (loss) including Consolidation costs $ 4,898 $ 1,003 $ 11,502 $ (3,409)
============= =========== ============ ==========
Per Share Data:
Net income excluding Consolidation costs 0.25 0.17 0.79 0.66
Net income (loss) including Consolidation costs 0.25 0.17 0.79 (0.60)
OTHER DATA
Income from operations before minority interest and
extraordinary item $ 4,958 $ 1,258 $ 12,191 $ 4,326
Depreciation and amortization 4,823 935 8,867 2,694
Net gain on sales of rental properties 15 -- (555) (321)
Prepayment penalty on payoff of note payable 75 -- 75 --
Gain on collection of note receivable -- -- (652) --
Adjustment to reflect FFO of Associated Companies (776) 251 95 846
------------- ----------- ------------ ----------
FFO 9,095 2,444 20,021 7,545
Amortization of deferred financing fees 46 69 174 141
Capital reserve (1,057) (248) (2,349) (726)
------------- ----------- ------------ ----------
CAD $ 8,084 $ 2,265 $ 17,846 $ 6,960
============= =========== ============ ==========
FFO per share 0.43 0.39 1.28 1.20
CAD per share 0.38 0.36 1.14 1.10
Primary weighted average shares outstanding 19,737,153 5,778,545 14,512,987 5,763,742
Fully diluted weighted average shares outstanding 21,194,507 6,342,206 15,654,461 6,314,606
</TABLE>
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GLENBOROUGH REALTY TRUST INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, 1997 December 31, 1996
(unaudited) (audited)
ASSETS
Properties, net $ 588,644 $ 161,945
Investment in Associated Companies 7,567 7,350
Mortgage loans receivable 3,622 9,905
Cash and cash equivalents 2,770 1,355
Other assets 13,373 4,965
------------- -------------
$ 615,976 $ 185,520
============= =============
LIABILITIES
Mortgage loans $ 228,580 $ 54,584
Secured bank line 28,865 21,307
Other liabilities 11,216 3,198
------------- -------------
Total liabilities 268,661 79,089
MINORITY INTEREST 36,012 8,831
SHAREHOLDERS' EQUITY
Common Stock 20 10
Additional paid-in capital 321,771 105,952
Deferred Compensation (257) (399)
Retained earnings (10,231) (7,963)
------------- -------------
Total equity 311,303 97,600
------------- -------------
$ 615,976 $ 185,520
============= =============
# # #
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