Capital Automotive Reports First Quarter 1999 Results
Company Declares Cash Dividend of $0.33 Per Share
Fifth Consecutive Quarter of FFO, Revenue and Dividend Growth
MCLEAN, Va., April 27 /PRNewswire/ -- Capital Automotive (Nasdaq: CARS),
the nation's leading specialty finance company for automotive retail real
estate, today announced financial results for the first quarter ended March
31, 1999. The Company reported funds from operations (FFO) of $9.6 million,
or $0.34 per basic and diluted share, up from $2.4 million, or $0.16 per
basic and diluted share in the same quarter last year. Revenues were
$14.8 million -- an increase of 345% compared to revenues of $3.3 million in
the first quarter of 1998. Net income was $4.4 million, or $0.20 per basic
and diluted share. FFO results for the quarter are based on basic and diluted
weighted average number of shares and units of 28.3 million. Net income
results are based on basic and diluted weighted average number of shares of
21.6 million.
The Company also announced today that its Board of Trustees has declared a
cash dividend of $0.33 per share for the first quarter. The dividend is
payable on May 20, 1999 to shareholders of record as of May 10, 1999. This is
an annualized rate of $1.32 per share. The first quarter 1999 results marked
the fifth consecutive quarter of, revenue, FFO, and dividend growth for the
Company.
As previously announced during the first quarter, Capital Automotive
closed on $88 million in property acquisitions. Consideration for the
properties consisted of $3.8 million in operating partnership units issued at
an average price of $14.25 per share and the remainder was substantially all
cash. The cash was funded from the proceeds of the Deutsche Bank $150 million
permanent loan that closed in the fourth quarter of 1998 and funding from the
$70 million revolving credit facilities from Comerica Bank and United Bank.
The acquisitions include 22 dealership properties in five states, representing
19 franchises. The Company's weighted average initial cap rate remained at
10.6%.
In response to the Company's lower 1999 acquisition targets and the
uncertainty in the capital markets, the Company has taken steps to reduce its
general and administrative costs. The Company is closing its Chicago office
and has eliminated five positions, or approximately 20% of total staff.
Furthermore, Chief Operating Officer Scott M. Stahr elected not to relocate to
Washington, D.C. for personal reasons and will be leaving the Company. Thomas
D. Eckert, President and Chief Executive Officer, noted, "Scott Stahr has made
a significant contribution to the development of our Company which we greatly
appreciate. Scott was instrumental in the development of our systems and
procedures which facilitated our rapid growth." Mr. Stahr will be a senior
consultant to the Company for the remainder of the year.
As of March 31, 1999, the Company's portfolio included 142 properties
including 215 automotive franchises in 19 states. These properties total
5.0 million square feet of buildings on 793 acres of land. The properties
are leased on long-term, triple net leases with an average initial lease term
of 13.2 years. The Company has entered into transactions with 14 of the top
100 dealer groups -- 12 of which are currently tenants. Approximately
sixty-percent of the Company's annualized rental revenues are derived from
this group.
Mr. Eckert stated, "Our performance for the quarter reflects the success
of our strategy. We are very focused on maximizing our initial lease rates
with strong dealer groups. During the first quarter, approximately one-half
of the Company's transactions were with existing clients providing further
evidence of the strong relationships and franchise value we are creating.
Patience in the debt markets has produced multiple sources of cost-efficient,
short and long-term borrowings. With improved investment spreads and lower
operating costs, we are positioned to accomplish our FFO growth objectives for
the year utilizing less capital." |
