Capital Automotive Reports Record Results
Eighth Consecutive Quarter of Revenue, FFO and Dividend Growth
Highlights
* Fourth quarter year-to-year revenues increased 92% to $24.4 million
* Year-to-year revenues increased 117% to $75.9 million
* Fourth quarter funds from operations (FFO) increased 24% to $0.41 per
share compared to the same quarter last year
* Year-end FFO increased 46% to $1.50 per share compared to the same
period last year
* 1999 acquisitions of 112 properties, totaling $430.3 million, bringing
the total portfolio to 230 properties valued at $935.5 million at
year-end
McLEAN, Va., Feb. 1 /PRNewswire/ -- Capital Automotive (Nasdaq: CARS), the
nation's leading specialty finance company for automotive retail real estate,
today announced financial results for the fourth quarter and year ended
December 31, 1999.
For the fourth quarter, the Company reported FFO of $12.2 million, or
$0.41 per basic and diluted share, up from $9.2 million or $0.33 per basic and
diluted share in the same quarter last year. Revenues were $24.4 million for
the quarter, or a 92% increase compared to revenues of $12.7 million in the
fourth quarter of 1998. Net income was $6.2 million, or $0.29 per basic and
diluted share, compared to $4.8 million or $0.22 per basic and diluted share
in the same quarter last year.
For the year ended December 31, 1999, FFO was $43.2 million, or $1.50 per
basic and diluted share, up from $27.0 million, or $1.04 per basic share and
$1.03 per diluted share in 1998. Revenues were $75.9 million for 1999, a
117% increase compared to revenues of $34.9 million for 1998. Net income for
1999 was $21.7 million, or $1.01 per basic and diluted share compared to
$16.5 million or $0.79 per basic and diluted share in 1998.
As previously announced, the Company's fourth quarter dividend was $0.36
per share bringing the dividends paid for 1999 to $1.38. This dividend
equates to a payout ratio of 92% of FFO per share for 1999. The Company
expects to reduce this payout ratio to approximately 70% over the next two to
four years by growing FFO faster than the growth of dividends.
Thomas D. Eckert, president and chief executive officer, stated, "Our
strong fourth quarter operating results conclude a terrific year for Capital
Automotive. Our stringent underwriting standards continue to serve us well,
as the Company has not experienced any missed rental payments since inception.
The high quality of our real estate and credit-worthiness of our tenants is
illustrated by our lending relationships and declining credit spreads on our
debt. We are very proud of the strength of our tenant base and the solid
relationships we have created in the automotive retail industry."
Capital Automotive closed on approximately $72 million in property
acquisitions in the fourth quarter, of which approximately $56 million were
additional properties acquired from existing tenants. Consideration for all
the properties purchased in the fourth quarter consisted of approximately
$14 million in operating partnership units and the remainder of cash on hand.
The operating partnership units were priced at $13.12 per unit. For the year
ended December 31, 1999, the Company issued $23 million of partnership units
at an average price of $13.05 per unit as consideration for property
transactions. Acquisitions in the fourth quarter consisted of 14 dealership
properties in six states, representing 17 automotive franchises including BMW,
Mercedes Benz, Honda, and Toyota. The average initial lease term for the
fourth quarter acquisitions was 14.2 years. Cap rates on these transactions
were consistent with the Company's business plan.
As of December 31, 1999, the Company's portfolio included 230 properties
with an asset value of $935.5 million consisting of 349 automotive franchises
in 27 states. These properties total 8.0 million square feet of buildings and
improvements on 1,292 acres of land. Approximately 72% of the Company's
properties are located in the top 50 automobile markets in the country. The
properties are leased under long-term, triple net leases with an average
initial lease term of 13.3 years. The Company has entered into transactions
with 16 of the top 100 dealer groups in the country, 15 of which are tenants.
Approximately 66% of the Company's annualized rental revenues are derived from
this group of tenants. As of December 31, 1999, the Company's weighted
average initial cap rate is 10.5%.
During 1999, the Company raised approximately $335 million of long-term,
fixed rate, non-recourse debt. The Company's debt to total assets was 53% as
of December 31, 1999, with approximately 98% of the debt being long-term,
fixed rate, non-recourse debt. The Company's policy is generally to match the
duration of its leases with long-term debt to minimize interest rate risk.
Virtually all of the Company's debt is secured financing with an average term
of 13.2 years.
The Company will host a conference call at 11:00 a.m. Eastern Standard
Time today to discuss these quarterly and year-end results. The conference
call will be broadcast live over the Internet and can be accessed by all
interested parties from the company's web site at www.capitalautomotive.com . |
