SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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) January 22, 1998
(December 31, 1997)
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GLENBOROUGH REALTY TRUST INCORPORATED
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(Exact name of registrant as specified in its charter)
Maryland 001-14162 94-3211970
- --------------- -------------- -----------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) I.D. Number)
incorporation)
400 South El Camino Real, Ste. 1100, San Mateo, California 94402
(Address of principal executive offices)
Registrant's Telephone number, including area code: (650) 343-9300
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Item 5. OTHER EVENTS
On January 22, 1998, the Registrant made available information concerning the
operating results of the Registrant, Glenborough Realty Trust Incorporated, for
the quarter and twelve months ended December 31, 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
(a)&(b) FINANCIAL STATEMENTS
None
(c) EXHIBITS
Operating Results as of December 31, 1997
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.
GLENBOROUGH REALTY TRUST INCORPORATED
By: Glenborough Realty Trust Incorporated,
Date: January 22, 1998 /s/ Terri Garnick
Terri Garnick
Senior Vice President,
Chief Accounting Officer,
Treasurer
(Principal Accounting Officer)
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GLENBOROUGH REALTY TRUST
INCORPORATED
PRESS RELEASE
CONTACTS:
Robert Batinovich, Chairman and CEO
FOR IMMEDIATE RELEASE Andrew Batinovich, President and COO
Stephen R. Saul, Executive Vice
President and 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 FOURTH
QUARTER AND YEAR END FINANCIAL RESULTS
o 4Q FFO OF $0.51 PER SHARE
o 31% INCREASE IN FFO FOR 4Q97 VS. 4Q96
o $1.83 PER SHARE FFO FOR THE YEAR ENDED
DECEMBER 31, 1997
SAN MATEO, CALIFORNIA, JANUARY 22, 1998 --- Glenborough Realty Trust
Incorporated (NYSE: GLB), a diversified real estate investment trust, announced
Funds from Operations ("FFO") of $0.51 per share for the fourth quarter, and
$1.83 per share for the year, exceeding consensus analyst estimates for both
periods.
For the fourth quarter 1997, Glenborough's funds from operations were $16.1
million, a 308% increase over funds from operations of $3.95 million for the
fourth quarter of 1996. Per share funds from operations for the fourth quarter
1997 were $0.51, an increase of 31% over 1996 fourth quarter funds from
operations of $0.39 per share. Fourth quarter net income before non-recurring
items totaled $8.7 million, or $0.30 per share as compared to net income before
non-recurring items of $1.8 million or $0.19 per share for the fourth quarter of
1996.
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Glenborough Realty Trust Incorporated
January 22, 1998
For the year ended December 31, 1997, funds from operations were $36.1 million,
an increase of 214% over funds from operations of $11.5 million for the year
ended December 31, 1996. Funds from operations per share for the year were
$1.83, an increase of 15% over funds from operations for 1996 of $1.59. Net
income before non-recurring items for the year ended December 31, 1997 was $20.2
million or $1.12 per share compared to net income before non-recurring items of
$5.8 million or $0.88 per share for the year ended December 31, 1996.
Revenue for the fourth quarter was $27.4 million which represents a 265%
increase as compared to revenue of $7.5 million for the same period in 1996.
Revenue for the year ended December 31, 1997 was $68.1 million up 220% from
$21.3 million for the same period in 1996. This revenue increase is largely the
result of acquisitions completed during 1997. Same property NOI growth was 9%
and 6% for the fourth quarter and year ended December 31, 1997, respectively.
On January 6, 1998, the Board of Directors declared a dividend of $0.42 per
share for the quarter ended December 31, 1997. This dividend, representing a 31%
increase in the quarterly dividend, will be payable on January 27, 1998 to
stockholders of record on January 16, 1998. This represents an annualized
increase from $1.28 per share to $1.68 per share and a yield of approximately
5.8% based on the January 20, 1998 closing price of $28.88 per share.
Glenborough is a self-administered and self-managed REIT with a diversified
portfolio of 141 properties with approximately 17 million square feet including
office, office/flex, industrial, multifamily, retail and hotel properties. In
addition, two Associated Companies control similarly diversified portfolios
comprising 50 properties. Combined, the portfolios encompass approximately 22
million square feet and are spread among 24 states throughout the country.
(TABLES TO FOLLOW)
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
For the Three Months Ended For the Twelve Months Ended
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December 31, December 31, December 31, December 31,
1997 1996 1997 1996
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REVENUE
<S> <C> <C> <C> <C>
Rental revenue $ 25,493 $ 6,662 $ 61,393 $ 17,943
Management fee income 148 112 719 311
Interest and other income 635 457 1,802 1,080
Equity in earnings of Associated Companies 801 235 2,743 1,598
Gain on sale of rental properties 284 -- 839 321
Gain on collection of mortgage loan receivable -- -- 652 --
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Total revenue 27,361 7,466 68,148 21,253
OPERATING EXPENSES
Operating expenses 7,676 2,022 18,958 5,266
General and administrative 1,288 416 3,319 1,393
Depreciation and amortization 6,006 1,881 14,873 4,575
Interest expense 3,252 1,367 9,668 l3,913
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Total operating expenses 18,222 5,686 46,818 15,147
Income from operations before minority interest 9,139 1,780 21,330 6,106
Minority interest (430) 20 (1,119) (292)
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Net income before non-recurring items 8,709 1,800 20,211 5,814
Consolidation costs -- -- -- (6,082)
Litigation costs -- -- -- (1,155)
Loss on debt refinancing (843) -- (843) (186)
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Net income (loss) $ 7,866 $ 1,800 $ 19,368 $ (1,609)
========== ========= ========== ==========
Basic Per Share Data:
Net income before non-recurring items 0.30 0.19 1.12 0.88
Net income (loss) 0.27 0.19 1.08 (0.24)
OTHER DATA
Income from operations before minority interest $ 9,139 $ 1,780 $ 21,330 $ 6,106
Depreciation and amortization 6,006 1,881 14,873 4,575
Deduct gain on sales of rental properties (284) -- (839) (321)
Add prepayment penalty on note payoff -- -- 75 --
Deduct gain on collection of mortgage loan receivable -- -- (652) --
Adjustment to reflect FFO of Associated Companies 1,205 285 1,300 1,131
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FFO 16,066 3,946 36,087 11,491
Amortization of deferred financing fees 47 52 221 193
Capital reserve (1,624) (461) (3,973) (1,187)
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CAD $ 14,489 $ 3,537 $ 32,335 $ 10,497
========== ========= ========== ==========
FFO per share 0.51 0.39 1.83 1.59
CAD per share 0.46 0.35 1.64 1.46
Basic weighted average shares outstanding 29,033,945 9,513,517 17,982,817 6,632,707
Fully converted weighted average shares outstanding 31,512,511 10,148,526 19,688,489 7,203,071
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<TABLE>
<CAPTION>
GLENBOROUGH REALTY TRUST INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, 1997 December 31, 1996
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ASSETS
<S> <C> <C>
Properties, net $ 825,218 $ 161,945
Investments in Associated Companies 11,521 7,350
Mortgage loans receivable 3,692 9,905
Cash and cash equivalents 5,070 1,355
Other assets 20,273 4,965
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$ 865,774 $ 188,520
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LIABILITIES
Mortgage loans $ 148,139 $ 54,584
Secured bank line -- 21,307
Unsecured bank line 80,160 --
Other liabilities 11,091 3,198
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Total liabilities 239,390 79,089
MINORITY INTEREST 47,902 8,831
SHAREHOLDERS' EQUITY
Common Stock 31 10
Additional paid-in capital 591,098 105,952
Deferred Compensation (210) (399)
Retained earnings (12,437) (7,963)
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Total equity 578,482 97,600
$ 865,774 $ 185,520
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# # #
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