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): August 13, 2002
----------------
KOGER EQUITY, INC.
-------------------
(Exact Name of Registrant as Specified in Its Charter)
FLORIDA
--------
State or Other Jurisdiction of Incorporation)
1-9997 59-2898045
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(Commission File Number) (IRS Employer
Identification No.)
433 PLAZA REAL, SUITE 335
BOCA RATON, FLORIDA 33432
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(Address of Principal Executive Offices) (Zip Code)
(561) 395-9666
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(Registrant's Telephone Number, Including Area Code)
NA
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(Former Name or Former Address, if Changed Since Last Reports)
Item 9. Regulation FD Disclosure
Koger Equity, Inc. announced its quarterly results for the period ended June 30,
2002, as more particularly described in its News Release, dated August 13, 2002,
and related Supplemental Information, dated June 30, 2002, on the Company's web
site, a copy of which is attached hereto as Exhibit 99 and by this reference
made a part hereof.
For more information on Koger Equity, Inc., contact the company at 866-321-0712
or visit its Web site at www.koger.com.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit
Number Description of Exhibit
99 Koger Equity, Inc. News Release, dated August 13,
2002, and related Supplemental Information, dated June
30, 2002.
2
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.
KOGER EQUITY, INC.
Dated: August 13, 2002 By: /S/ Robert E. Onisko
-----------------------
Robert E. Onisko
Title: Vice President and
Chief Financial Officer
3
EXHIBIT INDEX
The following designated exhibit is filed herewith:
Exhibit
Number Description of Exhibit
99 Koger Equity, Inc. News Release, dated August 13, 2002,
and related Supplemental Information, dated
June 30, 2002.
4
Exhibit 99
KOGER EQUITY, INC.
433 Plaza Real, Suite 335
Boca Raton, Florida 33432
Contacts:
Robert Onisko Investor Relations:
Chief Financial Officer Brad Cohen
Koger Equity, Inc. Integrated Corporate Relations, Inc.
(561) 395-9666 203-222-9013
KOGER EQUITY REPORTS SECOND QUARTER 2002 RESULTS
- Announces the Termination of the AP-Knight Management Contract -
Boca Raton, Florida, August 13, 2002 (Business Wire) -- Koger Equity, Inc.
(NYSE: KE), a self-managed real estate investment trust (REIT), which owns,
operates, and manages suburban office buildings throughout the Southeastern and
Southwestern United States, today announced its results for the second quarter
ended June 30, 2002. Certain of the Company's results, as compared to the prior
year, have been affected by the sale of assets in December 2001.
Highlights include:
o Same-store net operating income for the second quarter 2002 increased
5.8%, compared to the second quarter 2001.
o Operating margins for the second quarter increased to 62.6% as
compared to 62.1% for the second quarter 2001.
o New net rent versus expiring net rent during the second quarter 2002
increased 10.3% on new and backfill leasing and 1.0% on renewal
leasing.
o Payout ratio to funds from operations (FFO) was 68.6% and cash
available for distribution (CAD) was 95.3% for the second quarter.
Total rental revenues in the second quarter 2002 were $31.9 million, as
compared to $41.6 million in the second quarter of 2001. Funds from operations
(FFO) for the second quarter totaled $11.0 million, or $0.51 per fully diluted
share, as compared to FFO of $17.7 million, or $0.63 per fully diluted share in
the same period of fiscal 2001. Fully diluted earnings per share (EPS) for the
second quarter 2002 was $0.20, compared to EPS of $0.32 in the prior period. The
decreases in revenue and earnings are attributable to the sale of approximately
36% of Koger's assets during fiscal 2001.
Same-store net operating income for the second quarter 2002 increased 5.8%
on a GAAP basis and 5.9% on a cash basis compared to the second quarter 2001.
Occupancy on this same-store portfolio, which consists of 118 properties,
decreased to 88.9% at June 30, 2002 from 90.8% at June 30, 2001. The majority of
the occupancy decrease is attributable to economic softness in the Atlanta
market.
For the quarter total leasing activity was approximately 324,000. In
addition, the weighted average net rental rate on new leases signed, excluding
first generation space, was $12.25 per square foot. This represents a 2.4%
increase from the $11.96 per square foot which was the average rental rate on
expiring leases.
"While we sold more than one third of our non-core assets in fiscal 2001,
we are encouraged by our stronger than expected second quarter results, and are
starting to experience a slight recovery in our southeastern office markets, due
to modest absorption and a stabilizing job market," commented Thomas Crocker,
Chief Executive Officer of Koger Equity. "Although we continue to believe that
economic uncertainty is a reality that may affect results, we believe Koger's
current asset portfolio is well positioned. More importantly, however, due to
our balance sheet strength, the Company is poised to quickly take advantage of
strategic opportunities when they come along."
Year-to-Date Results:
For the six months ended June 30, 2002, FFO totaled $22.5 million on rental
revenues of $62.5 million compared with FFO of $35.2 million on rental revenues
of $83.2 million for the same period in 2001. EPS for the first six months of
2002 totaled $0.44 per diluted share compared to EPS of $0.65 in the first half
of 2001.
Same-store net operating income for the six months ended June 30, 2002,
increased 6.1% on a GAAP basis and 6.3% on a cash basis compared to the six
months ended June 30, 2001. For the first six months of 2002, total lease
activity for the office portfolio reached 799,000 square feet. The weighted
average net rental rate on leasing activity year-to-date was at $11.56 on new
leases compared to $11.46 on expiring leases. Based on the current outlook, and
Koger's results to date, the Company is reaffirming its fiscal 2002 diluted FFO
per share guidance of $2.00. In addition, Koger expects to provide fiscal 2003
FFO per diluted share guidance prior to the end of the third quarter.
However, some likely assumptions for fiscal 2003 include:
o The termination of the management agreement for the assets sold to
AP-Knight, LP. in fiscal 2001.
o The State of Florida's decision to eliminate its Labor Department in
Tallahassee.
o Insurance premium increases in the second half of fiscal 2002.
In conjunction with the termination of the management agreement, the
Company announced that Board of Director member John R S Jacobsson will resign.
He is also a director of Apollo Real Estate Advisors, LP.
Mr. Crocker concluded, "While we achieved positive comparable same store
operating margins through the first six-months of fiscal 2002, we are still
attempting to factor into our budgets for fiscal 2003 the uncertain leasing
traffic throughout our portfolio, reduced management fee income, and unrealistic
asset pricing that seems pervasive in this current market. That said, we
continue to believe in the long-term viability of our strategy, which focuses on
buying class A assets at the right price in the right markets and doing so
without sacrificing our balance sheet strength. We believe that this strategy
will succeed, however, our collective experience calls for a patient approach in
this economy. That said, we believe Koger is well positioned to maximize total
return for shareholders over time, particularly with our equity at current
levels."
Forward Looking Statement
Estimates of future FFO per share are by definition, and certain other matters
discussed in this press release may be, forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Although Koger
Equity, Inc. believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions; there can be no assurance that
its expectations will be attained. Certain factors that could cause actual
results to differ materially from the Company's expectations are set forth as
risk factors in the company's SEC reports and filings, including its annual
report on Form 10-K. Included among these factors are changes in general
economic conditions, including changes in the economic conditions affecting
industries in which its principal tenants compete; its ability to timely lease
or re-lease space at current or anticipated rents; its ability to achieve
economies of scale over time; the demand for tenant services beyond those
traditionally provided by landlords; changes in interest rates; changes in
operating costs; its ability to attract and retain high-quality personnel at a
reasonable cost in a highly competitive labor environment; future demand for its
debt and equity securities; its ability to refinance its debt on reasonable
terms at maturity; and its ability to complete current and future development
projects on schedule and on budget. Many of these factors are beyond the
Company's ability to control or predict. Forward-looking statements are not
guarantees of performance. For forward-looking statements contained or
incorporated by reference herein, the Company claims the protection of the safe
harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. The Company assumes no obligation to update or
supplement forward-looking statements that become untrue because of subsequent
events.
Conference Call Details:
Company management will further discuss its 2002 second quarter results on
a conference call scheduled for Tuesday, August 13, 2002 at 5:00 PM EDT. To
participate in the call, please dial (800) 388-8975. Due to call volume, we
suggest that participants dial in 15 minutes before the scheduled start of the
call. A replay of the call will be available until August 20th at 11:59 p.m. ET.
Please dial (800) 428-6051, password 255955. The conference call will also be
broadcast live over the Internet at http://www.koger.com
Koger Equity, Inc. owns and operates 121 office buildings, containing 7.71
million rentable square feet, located primarily in 12 suburban office parks in
eight cities in the Southeastern United States.
Additionally, the Second Quarter Supplemental Disclosure package and
further information about Koger Equity, Inc. can be found on the Company's web
site at http://www.koger.com.
KOGER EQUITY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands except per Share Data)
For the For the
Three Months Ended Six Months Ended
6/30/02 6/30/01 6/30/02 6/30/01
------- ------- ------- -------
Revenues
Rental and other rental services $ 31,855 $ 41,628 $ 62,450 $ 83,219
Management fees 963 1,362 1,751 2,456
Interest 87 195 232 442
Other -- -- 2 81
-------- -------- -------- --------
Total revenues 32,905 43,185 64,435 86,198
-------- -------- -------- --------
Expenses
Property operations 11,928 15,766 22,388 31,158
Depreciation and amortization 6,731 8,816 13,252 17,537
Mortgage and loan interest 6,029 6,654 11,823 13,516
General and administrative 2,947 1,833 5,457 3,872
Direct cost of management fees 822 945 1,833 1,860
Other 49 59 82 111
-------- -------- -------- --------
Total expenses 28,506 34,073 54,835 68,054
-------- -------- -------- --------
Income Before Loss on Sale or Disposition of
Assets, Income Taxes and Minority Interest 4,399 9,112 9,600 18,144
Gain (loss) on sale or disposition of assets -- 3 1 --
-------- -------- -------- --------
Income Before Income Taxes and Minority Interest 4,399 9,115 9,601 18,144
Income taxes 62 152 93 192
-------- -------- -------- --------
Income Before Minority Interest 4,337 8,963 9,508 17,952
Minority interest -- 250 20 614
-------- -------- -------- --------
Net Income $ 4,337 $ 8,713 $ 9,488 $ 17,338
======== ======== ======== ========
Earnings Per Share:
Basic $ 0.20 $ 0.33 $ 0.45 $ 0.65
======== ======== ======== ========
Diluted $ 0.20 $ 0.32 $ 0.44 $ 0.65
======== ======== ======== ========
Weighted Average Shares:
Basic 21,255 26,807 21,241 26,816
======== ======== ======== ========
Diluted 21,469 26,869 21,408 26,876
======== ======== ======== ========
KOGER EQUITY, INC.
FUNDS FROM OPERATIONS
(In Thousands except per Share Data)
For the For the
Three Months Ended Six Months Ended
6/30/02 6/30/01 6/30/02 6/30/01
------- ------- ------- -------
Net income $ 4,337 $ 8,713 $ 9,488 $ 17,338
Depreciation - real estate 6,277 8,097 12,319 16,142
Amortization - deferred tenant costs 338 552 702 1,061
Amortization - goodwill -- 43 -- 85
Minority interest -- 250 20 614
Loss (gain) on sale or disposition:
Operating properties -- -- -- --
Non-operating assets
--------- ---------
-- (3) (1) --
-------- --------- --------- ---------
Funds from operations $ 10,952 $ 17,652 $ 22,528 $ 35,240
======== ======== ======== ========
Weighted average shares/units outstanding - diluted 21,469 27,869 21,469 27,876
Funds from operations, per diluted share/unit $ 0.51 $ 0.63 $ 1.05 $ 1.26
KOGER EQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands) June 30, December 31,
2002 2001
------------ ------------
ASSETS
Real estate investments:
Operating properties:
Land $ 98,253 $ 91,919
Buildings 685,975 568,285
Furniture and equipment 2,987 3,082
Accumulated depreciation (136,010) (123,999)
----------- ---------
Operating properties, net 651,205 539,287
Undeveloped land held for investment 13,779 13,779
Undeveloped land held for sale, net of allowance 76 76
Cash and cash equivalents 14,564 113,370
Accounts receivable, net of allowance for uncollectible accounts
of $1,284 and $1,114 9,802 11,574
Cost in excess of fair value of net assets acquired, net of
accumulated amortization of $683 and $683 595 595
Other assets 11,809 11,904
---------- ---------
TOTAL ASSETS $701,830 $690,585
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages and loans payable $321,217 $248,683
Accounts payable 1,837 4,962
Accrued real estate taxes payable 6,358 1,007
Other accrued liabilities 8,903 9,206
Dividends payable 7,452 44,159
Advance rents and security deposits 4,656 5,103
--------- ---------
Total Liabilities 350,423 313,120
--------- ---------
Minority interest -- 22,923
--------- ---------
Shareholders' equity:
Common stock 298 297
Capital in excess of par value 471,974 469,779
Notes receivable from stock sales (5,066) (5,066)
Retained earnings 15,784 21,180
Treasury stock, at cost (131,583) (131,648)
--------- ---------
Total Shareholders' Equity 351,407 354,542
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $701,830 $690,585
========= =========
Koger Equity, Inc.
Supplemental
Information
June 30, 2002
Koger Equity, Inc.
Supplemental Information
Table of Contents
June 30, 2002
Schedule Page
Consolidated Balance Sheets 2, 3
Consolidated Statement of Operations 4, 5
Funds from Operations 6, 7
Net Operating Income 8, 9
Summary of Outstanding Debt 10
Operating Property Acquisitions 11
Building Completions 12
Buildings Under Construction 13
Twenty-Five Largest Tenants 14
Regional Summary of MSAs 15
Occupancy Summary 16
Lease Distribution 17
Lease Expirations 18
Net Effective Rents 19
Same Suite Analysis 20
1
KOGER EQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dollars in thousands
----------------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
------------ ------------ ------------ ------------ -------------
ASSETS
Real Estate Investments:
Operating properties:
Land $98,253 $110,084 $91,919 $140,448 $140,342
Buildings 685,975 670,895 568,285 831,406 827,844
Furniture and equipment 2,987 2,933 3,082 3,228 3,208
Accumulated depreciation (136,010) (129,617) (123,999) (180,983) (172,473)
------------ ------------ ------------ ------------ -------------
Operating properties - net 651,205 654,295 539,287 794,099 798,921
Properties under construction:
Land 0 0 0 0 0
Buildings 0 0 0 0 351
Undeveloped land held for investment 13,779 13,779 13,779 13,899 13,899
Undeveloped land held for sale 76 76 76 76 76
Cash and temporary investments 14,564 16,461 113,370 9,140 8,537
Accounts receivable, net 9,802 10,441 11,574 12,338 13,240
Cost in excess of fair value of net assets acquired, net 595 595 595 1,232 1,275
Other assets 11,809 11,722 11,904 13,997 13,142
------------ ------------ ------------ ------------ -------------
TOTAL ASSETS $701,830 $707,369 $690,585 $844,781 $849,441
============ ============ ============ ============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages and loan payable $321,217 $327,415 $248,683 $337,879 $342,004
Accounts payable 1,837 2,046 4,962 3,090 2,771
Accrued real estate taxes payable 6,358 3,273 1,007 9,491 8,234
Accrued liabilities - other 8,903 8,607 9,206 8,969 9,417
Dividends payable 7,452 7,433 44,159 9,381 9,385
Advance rents and security deposits 4,656 4,876 5,103 6,489 6,967
------------ ------------ ------------ ------------ -------------
Total Liabilities 350,423 353,650 313,120 375,299 378,778
------------ ------------ ------------ ------------ -------------
Minority interest 0 0 22,923 23,132 23,124
------------ ------------ ------------ ------------ -------------
Shareholders' Equity:
Common stock 298 298 297 296 296
Capital in excess of par value 471,974 471,205 469,779 469,010 468,715
Notes receivable from stock sales (5,066) (5,066) (5,066) (5,066) (5,457)
Retained earnings 15,784 18,898 21,180 17,460 18,836
Treasury stock, at cost (131,583) (131,616) (131,648) (35,350) (34,851)
------------ ------------ ------------ ------------ -------------
Total Shareholders' Equity 351,407 353,719 354,542 446,350 447,539
------------ ------------ ------------ ------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $701,830 $707,369 $690,585 $844,781 $849,441
============ ============ ============ ============ =============
2
KOGER EQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dollars in thousands
--------------------------------------------------------------------------------------------------------------------------------
12/31/01 12/31/00 12/31/99 12/31/98 12/31/97
--------------- --------------- -------------- -------------- --------------
ASSETS
Real Estate Investments:
Operating properties:
Land $91,919 $138,214 $140,061 $137,047 $111,697
Buildings 568,285 805,935 784,769 731,558 567,332
Furniture and equipment 3,082 2,631 2,693 3,578 2,220
Accumulated depreciation (123,999) (155,817) (137,452) (129,682) (104,700)
--------------- --------------- -------------- -------------- --------------
Operating properties - net 539,287 790,963 790,071 742,501 576,549
Properties under construction:
Land 0 2,128 8,347 11,318 8,978
Buildings 0 12,023 41,912 31,562 18,608
Undeveloped land held for investment 13,779 13,899 16,034 19,272 13,249
Undeveloped land held for sale 76 76 1,103 1,263 1,512
Cash and temporary investments 113,370 1,615 0 4,827 16,955
Accounts receivable, net 11,574 13,232 10,512 6,158 5,646
Investment in Koger Realty Services, Inc. 0 2,533 2,319 1,661 472
Cost in excess of fair value of net
assets acquired, net 595 1,360 1,530 1,700 1,870
Other assets 11,904 13,193 13,911 14,733 12,258
--------------- --------------- -------------- -------------- --------------
TOTAL ASSETS $690,585 $851,022 $885,739 $834,995 $656,097
=============== =============== ============== ============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages and loans payable $248,683 $343,287 $351,528 $307,903 $181,963
Accounts payable 4,962 4,961 12,716 12,139 8,802
Accrued real estate taxes payable 1,007 4,175 1,383 4,407 3,294
Accrued liabilities - other 9,206 10,562 13,162 9,288 6,623
Dividends payable 44,159 9,392 9,370 7,971 6,352
Advance rents and security deposits 5,103 7,014 6,570 5,432 4,801
--------------- --------------- -------------- -------------- --------------
Total Liabilities 313,120 379,391 394,729 347,140 211,835
--------------- --------------- -------------- -------------- --------------
Minority interest 22,923 23,138 23,184 23,092 0
--------------- --------------- -------------- -------------- --------------
Shareholders' Equity:
Common stock 297 296 288 286 284
Capital in excess of par value 469,779 468,277 457,945 454,988 441,451
Notes receivable from stock sales (5,066) (6,250) 0 0 0
Retained earnings 21,180 20,261 30,546 30,020 30,947
Treasury stock, at cost (131,648) (34,091) (20,953) (20,531) (28,420)
--------------- --------------- -------------- -------------- --------------
Total Shareholders' Equity 354,542 448,493 467,826 464,763 444,262
--------------- --------------- -------------- -------------- --------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $690,585 $851,022 $885,739 $834,995 $656,097
=============== =============== ============== ============== ==============
3
KOGER EQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
In thousands, except per share data
-----------------------------------------------------------------------------------------------------------------------------
Three Months Ended
-------------------------------------------------------------------------------
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
-------------- -------------- ------------- -------------- -------------
REVENUES
Rental and other rental services $ 31,855 $ 30,596 $ 40,161 $ 42,243 $ 41,628
Management fees 963 787 550 1,074 1,362
Interest 87 145 180 154 195
Other 0 3 0 0 0
-------------- -------------- ------------- -------------- -------------
Total revenues 32,905 31,531 40,891 43,471 43,185
-------------- -------------- ------------- -------------- -------------
EXPENSES
Property operations 11,928 10,459 14,859 15,591 15,766
Depreciation and amortization 6,731 6,522 7,945 9,617 8,816
Mortgage and loan interest 6,029 5,795 6,053 6,543 6,654
General and administrative 2,947 2,510 2,264 2,276 1,833
Direct cost of management fees 822 1,010 720 798 945
Other 49 33 18 60 59
-------------- -------------- ------------- -------------- -------------
Total expenses 28,506 26,329 31,859 34,885 34,073
-------------- -------------- ------------- -------------- -------------
INCOME BEFORE GAIN (LOSS) ON SALE
OR DISPOSITION OF ASSETS 4,399 5,202 9,032 8,586 9,112
Gain (loss) on sale or disposition of assets 0 1 39,189 0 3
-------------- -------------- ------------- -------------- -------------
INCOME BEFORE INCOME TAXES 4,399 5,203 48,221 8,586 9,115
Income taxes 62 32 235 257 152
-------------- -------------- ------------- -------------- -------------
INCOME BEFORE MINORITY INTEREST 4,337 5,171 47,986 8,329 8,963
Minority interest 0 20 107 323 250
-------------- -------------- ------------- -------------- -------------
NET INCOME $ 4,337 $ 5,151 $ 47,879 $ 8,006 $ 8,713
============== ============== ============= ============== =============
EARNINGS PER SHARE - Diluted $ 0.20 $ 0.24 $ 1.86 $ 0.30 $ 0.32
============== ============== ============= ============== =============
WEIGHTED AVERAGE SHARES - Diluted 21,469 21,283 25,785 26,912 26,869
============== ============== ============= ============== =============
OPERATING MARGIN 62.6% 65.8% 63.0% 63.1% 62.1%
============== ============== ============= ============== =============
4
KOGER EQUITY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
In thousands, except per share data
------------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999 1998 1997
---------------- ---------------- ---------------- ---------------- ----------------
REVENUES
Rental and other rental services $165,623 $164,733 $156,153 $133,663 $109,501
Management fees 4,080 1,793 2,384 2,277 2,637
Interest 776 703 457 446 1,274
Income from Koger Realty Services, Inc. 81 645 1,099 1,696 577
---------------- ---------------- ---------------- ---------------- ----------------
Total revenues 170,560 167,874 160,093 138,082 113,989
---------------- ---------------- ---------------- ---------------- ----------------
EXPENSES
Property operations 61,608 61,868 60,582 53,719 44,453
Depreciation and amortization 35,099 35,133 32,314 28,381 24,073
Mortgage and loan interest 26,112 27,268 21,893 16,616 16,517
General and administrative 8,412 20,217 8,633 6,953 6,374
Direct cost of management fees 3,378 898 1,432 1,368 1,896
Other 189 217 1,143 383 413
Recovery of loss on land held for sale 0 0 0 0 (379)
---------------- ---------------- ---------------- ---------------- ----------------
Total expenses 134,798 145,601 125,997 107,420 93,347
---------------- ---------------- ---------------- ---------------- ----------------
INCOME BEFORE GAIN ON SALE
OR DISPOSITION OF ASSETS 35,762 22,273 34,096 30,662 20,642
Gain on sale or disposition of assets 39,189 6,015 3,851 35 1,955
---------------- ---------------- ---------------- ---------------- ----------------
INCOME BEFORE INCOME TAXES 74,951 28,288 37,947 30,697 22,597
Income taxes 684 (21) 187 956 935
---------------- ---------------- ---------------- ---------------- ----------------
INCOME BEFORE MINORITY INTEREST 74,267 28,309 37,760 29,741 21,662
Minority interest 1,044 1,156 1,174 139 0
---------------- ---------------- ---------------- ---------------- ----------------
INCOME BEFORE EXTRAORDINARY ITEM 73,223 27,153 36,586 29,602 21,662
Extraordinary loss on early
retirement of debt 0 0 0 0 458
---------------- ---------------- ---------------- ---------------- ----------------
NET INCOME $73,223 $27,153 $36,586 $29,602 $21,204
================ ================ ================ ================ ================
EARNINGS PER SHARE - Diluted $ 2.75 $ 1.01 $ 1.35 $ 1.10 $ 0.94
================ ================ ================ ================ ================
WEIGHTED AVERAGE SHARES - Diluted 26,610 26,962 27,019 26,901 22,495
================ ================ ================ ================ ================
OPERATING MARGIN 62.8% 62.4% 61.2% 59.8% 59.4%
================ ================ ================ ================ ================
5
KOGER EQUITY, INC. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
(Unaudited)
In thousands, except per share data
-----------------------------------------------------------------------------------------------------------------------------------
Three Months Ended
----------------------------------------------------------------------------------
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
-------------- ------------- -------------- -------------- --------------
Funds from Operations:
Net income $ 4,337 $ 5,151 $ 47,879 $ 8,006 $ 8,713
Depreciation - real estate 6,277 6,042 7,270 8,849 8,097
Amortization - deferred tenant costs 338 364 514 597 552
Amortization - goodwill 0 0 42 43 43
Minority interest 0 20 107 323 250
Loss (gain) on sale of operating properties 0 (1) (39,189) 0 0
Loss (gain) on sale of non-operating assets 0 0 0 0 (3)
-------------- ------------- -------------- -------------- --------------
Funds from Operations 10,952 11,576 16,623 17,818 17,652
Cash Available for Distribution:
Add (Deduct):
Rental income from straight-line rents (534) (460) (338) (374) (491)
Amortization of deferred financing costs 299 289 228 227 227
Building improvements (1,285) (965) (1,032) (867) (876)
2nd generation tenant improvements (1,070) (906) (1,625) (1,748) (1,725)
2nd generation leasing commissions (479) (88) (614) (278) (310)
-------------- ------------- -------------- -------------- --------------
Cash Available for Distribution $ 7,883 $ 9,446 $ 13,242 $ 14,778 $ 14,477
============== ============= ============== ============== ==============
Weighted average common shares/units
outstanding - diluted 21,469 21,350 26,785 27,912 27,869
============== ============= ============== ============== ==============
Per share/unit - diluted:
Funds from operations $ 0.51 $ 0.54 $ 0.62 $ 0.64 $ 0.63
============== ============= ============== ============== ==============
Cash available for distribution $ 0.37 $ 0.44 $ 0.49 $ 0.53 $ 0.52
============== ============= ============== ============== ==============
Dividends paid $ 0.35 $ 2.09 (a) $ 0.35 $ 0.35 $ 0.35
============== ============= ============== ============== ==============
Dividend payout ratio:
Funds from operations 68.6% 64.8% 56.5% 54.7% 55.6%
============== ============= ============== ============== ==============
Cash available for distribution 95.3% 79.5% 71.4% 66.0% 67.3%
============== ============= ============== ============== ==============
(a) Amount includes a special dividend of $1.74 per share paid in January 2002.
6
KOGER EQUITY, INC. AND SUBSIDIARIES
FUNDS FROM OPERATIONS
(Unaudited)
In thousands, except per share data
---------------------------------------------------------------------------------------------------------------------------------
2001 2000 1999 1998 1997
-------------- -------------- -------------- -------------- --------------
Funds from Operations:
Net income $73,223 $27,153 $36,586 $29,602 $21,204
Depreciation - real estate 32,261 31,720 28,800 25,146 21,795
Amortization - deferred tenant costs 2,172 1,923 2,132 1,464 1,031
Amortization - goodwill 170 170 170 170 170
Minority interest 1,044 1,156 1,174 139 0
Gain on sale of operating properties (39,189) (5,963) (3,846) 0 0
Gain on sale of non-operating assets 0 (52) (5) (35) (1,955)
Recovery of loss on land held for sale 0 0 0 0 (379)
Loss on early retirement of debt 0 0 0 0 458
-------------- -------------- -------------- -------------- --------------
Funds from Operations 69,681 56,107 65,011 56,486 42,324
Cash Available for Distribution:
Add (Deduct):
Rental income from straight-line rents (1,470) (1,897) (1,764) (1,335) (454)
Amortization of deferred financing costs 908 888 836 1,069 637
Building improvements (3,049) (2,804) (3,741) (2,883) (2,618)
2nd generation tenant improvements (6,604) (8,362) (13,204) (11,057) (7,513)
2nd generation leasing commissions (1,389) (1,712) (1,736) (1,649) (1,902)
-------------- -------------- -------------- -------------- --------------
Cash Available for Distribution $58,077 $42,220 $45,402 $40,631 $30,474
============== ============== ============== ============== ==============
Weighted average common shares/units
outstanding - diluted 27,610 27,962 28,019 27,093 22,495
============== ============== ============== ============== ==============
Per share/unit - diluted:
Funds from operations $ 2.52 $ 2.01 $ 2.32 $ 2.08 $ 1.88
============== ============== ============== ============== ==============
Cash available for distribution $ 2.10 $ 1.51 $ 1.62 $ 1.50 $ 1.35
============== ============== ============== ============== ==============
Dividends paid $ 1.40 $ 1.40 $ 1.30 $ 1.10 $ 0.35
============== ============== ============== ============== ==============
Dividend payout ratio:
Funds from operations 55.6% 69.7% 56.0% 52.9% 18.6%
============== ============== ============== ============== ==============
Cash available for distribution 66.7% 92.7% 80.2% 73.3% 25.9%
============== ============== ============== ============== ==============
7
KOGER EQUITY, INC. AND SUBSIDIARIES
NET OPERATING INCOME
2002
Year Year
Three Months Ended To Date To Date
-------------------------------------------------------------
3/31/02 6/30/02 9/30/02 12/31/02 6/30/02 6/30/01 Change
------------ ------------- -------------- ---------------- ------------- ------------ ------------
$(000) $(000) $(000) $(000) $(000) $(000) $(000)
Same Store Sales:
Revenues 27,580 27,619 55,199 54,150 1,049
Expenses 9,178 9,657 18,835 19,868 (1,033)
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Net Operating Income 18,402 17,962 36,364 34,282 2,082
------------ ------------- -------------- ---------------- ------------- ------------ ------------
2001 and 2002 Acquisitions:
Revenues 2,206 3,305 5,511 0 5,511
Expenses 1,011 1,665 2,676 0 2,676
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Net Operating Income 1,195 1,640 2,835 0 2,835
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Building Completions (1):
Revenues 782 823 1,605 666 939
Expenses 236 266 502 270 232
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Net Operating Income 546 557 1,103 396 707
------------ ------------- -------------- ---------------- ------------- ------------ ------------
2001 Property Sales:
Revenues 27 108 135 28,403 (28,268)
Expenses 33 340 373 11,020 (10,647)
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Net Operating Income (6) (232) (238) 17,383 (17,621)
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Total Company:
Revenues 30,595 31,855 62,450 83,219 (20,769)
Expenses 10,458 11,928 22,386 31,158 (8,772)
------------ ------------- -------------- ---------------- ------------- ------------ ------------
Net Operating Income 20,137 19,927 40,064 52,061 (11,997)
============ ============= ============== ================ ============= ============ ============
(1) Includes buildings completed after 12/31/00.
8
KOGER EQUITY, INC. AND SUBSIDIARIES
NET OPERATING INCOME
2001
Year
Three Months Ended To Date
----------------------------------------------------------------------
3/31/01 6/30/01 9/30/01 12/31/01 12/31/01
-------------- --------------- --------------- ----------------- --------------
$(000) $(000) $(000) $(000) $(000)
Same Store Sales:
Revenues 27,140 27,010 27,543 27,367 109,060
Expenses 9,833 10,035 9,993 9,872 39,733
-------------- --------------- --------------- ----------------- --------------
Net Operating Income 17,307 16,975 17,550 17,495 69,327
-------------- --------------- --------------- ----------------- --------------
2001 Acquisitions:
Revenues 0 0 0 0 0
Expenses 0 0 0 0 0
-------------- --------------- --------------- ----------------- --------------
Net Operating Income 0 0 0 0 0
-------------- --------------- --------------- ----------------- --------------
Building Completions (1):
Revenues 171 495 742 731 2,139
Expenses 88 182 248 67 585
-------------- --------------- --------------- ----------------- --------------
Net Operating Income 83 313 494 664 1,554
-------------- --------------- --------------- ----------------- --------------
2001 Property Sales:
Revenues 14,280 14,123 13,958 12,063 54,424
Expenses 5,471 5,549 5,350 4,920 21,290
-------------- --------------- --------------- ----------------- --------------
Net Operating Income 8,809 8,574 8,608 7,143 33,134
-------------- --------------- --------------- ----------------- --------------
Total Company:
Revenues 41,591 41,628 42,243 40,161 165,623
Expenses 15,392 15,766 15,591 14,859 61,608
-------------- --------------- --------------- ----------------- --------------
Net Operating Income 26,199 25,862 26,652 25,302 104,015
============== =============== =============== ================= ==============
(1) Includes buildings completed after 12/31/00.
9
KOGER EQUITY, INC. AND SUBSIDIARIES
SUMMARY OF OUTSTANDING DEBT
AS OF JUNE 30, 2002
Average Monthly
Interest Debt Outstanding Balance
---------------------------------
---------------------------------
Description Rate Maturity Service 6/30/02 12/31/01
---------------------------------------------------------- ----------------- --------------- --------------- ---------------
$(000) $(000) $(000)
Fixed Rate:
Northwestern Mutual - Tranche A 8.19% 01/02/07 789 92,352 93,292
Northwestern Mutual - Tranche B 8.33% 01/02/09 710 82,177 83,006
Northwestern Mutual - Tranche C 7.10% 01/02/07 105 14,072 14,200
Northwestern Mutual - Tranche D 7.10% 01/02/09 216 29,005 29,270
New York Life 8.00% 12/10/02 68 7,813 7,903
Allstate Life 8.20% 12/01/06 165 19,271 19,468
--------------- --------------- ---------------
Total Fixed Rate Debt 8.04% 2,053 244,690 247,139
--------------- --------------- ---------------
Variable Rate:
GE Capital 7.88% 06/30/21 13 1,527 1,544
Secured Revolving Credit Facility -
$125 Million 3.74% 12/27/2004 234 75,000 0
--------------- --------------- ---------------
Total Variable Rate Debt 3.82% 247 76,527 1,544
--------------- --------------- ---------------
Total Debt 7.04% 2,300 321,217 248,683
=============== =============== ===============
Market Capitalization:
Total Debt 321,217 248,683
Common Stock 410,899 360,696
--------------- ---------------
Total Market Capitalization 732,116 609,379
=============== ===============
----------------------------------------------------------------------------------------------------------------------------------
Amount
---------------
$(000)
Schedule of Mortgage Maturities by Year (1):
2002 10,236
2003 5,200
2004 5,629
2005 6,110
2006 23,704
Thereafter 195,338
---------------
---------------
Total 246,217
===============
===============
(1) Does not include Secured Revolving Credit Facility.
10
KOGER EQUITY, INC. AND SUBSIDIARIES
OPERATING PROPERTY ACQUISITIONS
1999, 2000, 2001 AND 2002
Percent
Square Date Purchase Leased
Property Location Feet Purchased Price (1) 3/31/02
----------------------- ---------------------------- --------------- ----------------- -------------------- ----------------
1999
Charlotte University Charlotte, NC 190,600 11/01/99 $ 23,100,000 96%
Orlando Lake Mary Orlando, FL 318,000 11/01/99 41,000,000 97%
--------------- --------------------
508,600 $ 64,100,000 97%
=============== ==================== ================
2000
None
2001
None
2002
Three Ravinia Atlanta, GA 845,000 01/31/02 $125,000,000 57%
(1) Purchase price consists of the contract price only and does not include
closing costs.
11
KOGER EQUITY, INC. AND SUBSIDIARIES
BUILDING COMPLETIONS
1999, 2000, 2001 and 2002
Percent
Square Month Leased
Property Location Feet Completed Total Cost (1) 3/31/02
-------------------------------- ----------------------------- --------------- ---------------- ------------------- --------------
1999
Glenridge Building Orlando, FL 75,800 01/1999 $ 6,251,000 100%
Wingate Building (3) Greensboro, NC 98,300 01/1999 7,143,000 NA
Chisholm Building (3) San Antonio, TX 141,500 02/1999 9,888,000 NA
Coventry III Building (2) El Paso, TX 21,900 07/1999 2,001,000 NA
Carlton Building Jacksonville, FL 112,000 09/1999 10,849,000 100%
Landstar Building Jacksonville, FL 180,900 12/1999 16,057,000 100%
--------------- -------------------
630,400 $52,189,000 100%
=============== =================== ==============
2000
3500 Building (3) Birmingham, AL 144,900 01/2000 $13,272,000 NA
Columbia Building Atlanta, GA 90,200 01/2000 9,384,000 100%
Stuart Building Memphis, TN 83,700 01/2000 7,551,000 90%
Dover Building Orlando, FL 67,400 05/2000 5,867,000 100%
Duluth Building Atlanta, GA 103,200 05/2000 10,098,000 86%
Pasco Building St. Petersburg, FL 89,800 05/2000 7,662,000 82%
--------------- -------------------
579,200 $53,834,000 91%
=============== =================== ==============
2001
Collier Building Jacksonville, FL 113,500 02/2001 $10,575,000 100%
Rosemont Building Orlando, FL 67,400 06/2001 5,859,000 88%
--------------- -------------------
180,900 $16,434,000 96%
=============== =================== ==============
2002
None.
(1) Includes land and building construction costs. Does not include tenant
improvement costs.
(2) The El Paso Center was sold on August 11, 2000.
(3) These buildings were sold on December 12, 2001.
12
KOGER EQUITY, INC. AND SUBSIDIARIES
BUILDINGS UNDER CONSTRUCTION
JUNE 30, 2002
Square Expected Projected Pre-Leasing
Property Location Feet Completion Cost (1) to Date
-------------------------- ------------------------- -------------- ----------------- ------------------- -----------------
None.
-------------- -------------------
- $ -
============== =================== =================
(1) Includes land and building construction costs. Does not include tenant
improvement costs.
13
KOGER EQUITY, INC. AND SUBSIDIARIES
TWENTY-FIVE LARGEST TENANTS
BASED ON ANNUALIZED GROSS RENTS
AS OF JUNE 30, 2002
Remaining Annualized
Number Leased Term Percent Gross Percent
Tenant (a) of Leases Square Feet (Months) of Leased Rent (b) of Rent
------------------------------ --------------- --------------- --------------- -------------- ------------------ --------------
U S Government 44 910,483 94 13.7% $16,480,845 13.6%
State of Florida 47 760,242 33 11.4% 14,036,851 11.6%
Blue Cross Blue Shield 11 565,925 28 8.5% 9,275,002 7.7%
Six Continents Hotels 1 348,702 81 5.2% 9,118,531 7.5%
Landstar Systems Holding, Inc. 1 176,000 149 2.6% 2,633,842 2.2%
CitiFinancial 1 159,827 62 2.4% 2,402,923 2.0%
Siemens 5 114,028 9 1.7% 1,939,282 1.6%
Zurich Insurance Company 2 97,913 55 1.5% 1,858,389 1.5%
General Electric 3 89,163 7 1.3% 1,818,373 1.5%
Hanover Insurance 1 89,500 6 1.3% 1,815,992 1.5%
Hoechst Celanese Corp. 1 92,376 12 1.4% 1,667,620 1.4%
Ford Motor Company 4 63,271 47 0.9% 1,380,962 1.1%
Homeside Lending, Inc. 1 69,020 16 1.0% 1,163,528 1.0%
ACS State Healthcare, LLC 1 52,486 80 0.8% 1,156,791 1.0%
Dynamic Healthcare Tech Inc. 1 53,761 32 0.8% 1,094,419 0.9%
BellSouth 4 66,526 43 1.0% 980,802 0.8%
Moody's Investor Services 1 58,072 2 0.9% 928,457 0.8%
Sara Lee Corp. 1 51,188 36 0.8% 895,790 0.7%
Enovia Corporation 1 44,095 26 0.7% 826,279 0.7%
Best Software, Inc. 1 47,110 78 0.7% 793,803 0.7%
Check Solutions Company 1 40,307 79 0.6% 735,396 0.6%
Navision Software US, Inc. 1 37,783 62 0.6% 728,947 0.6%
Sungard Trust Systems Inc. 2 43,569 48 0.7% 699,676 0.6%
Peerless Insurance Co. 1 36,306 41 0.5% 694,270 0.6%
HireCheck Inc. 1 30,226 68 0.5% 663,624 0.5%
--------------- --------------- ------------------
Total 138 4,097,879 61.5% $75,790,394 62.5%
=============== =============== ============== ================== ==============
Weighted Average 58
===============
(a) Actual tenant may be a subsidiary of, or an entity affiliated with, the
named tenant.
(b) Annualized Gross Rent is the monthly contractual base rent and current
reimbursements under existing leases as of June 30, 2002 multiplied by 12.
14
KOGER EQUITY, INC. AND SUBSIDIARIES
REGIONAL SUMMARY OF MSAs
AS OF JUNE 30, 2002
# of Age % Square %
MSA State Bldgs (yrs) Square Feet Feet NOI (a)
-------------------------------- -------------- ---------- --------- ------------------- ----------------- --------------
Atlanta GA 26 15 2,358,838 30.6% 31.2%
Orlando FL 28 18 1,299,971 16.9% 18.1%
Jacksonville FL 11 8 1,166,563 15.1% 15.9%
Tallahassee FL 19 20 833,916 10.8% 9.6%
Charlotte NC 15 15 708,878 9.2% 8.7%
St. Petersburg FL 15 19 669,248 8.7% 7.5%
Memphis TN 6 9 528,114 6.8% 6.4%
Richmond VA 1 16 145,008 1.9% 2.6%
---------- ------------------- ----------------- --------------
Total 121 15 7,710,536 100.0% 100.0%
========== ========= =================== ================= ==============
(a) Based on net operating income for the second quarter of 2002.
15
KOGER EQUITY, INC. AND SUBSIDIARIES
OCCUPANCY SUMMARY
AS OF JUNE 30, 2002
Square Footage Percentage
--------------------------------------------------------------- -----------------------------------------------------
Occupied Leased, Not OccupiedVacant Total Occupied Leased, Not OccuVacant Total
-------------- ------------------------------- --------------- ----------------------------------------- -----------
Atlanta 1,871,277 40,079 447,482 2,358,838 79.3% 1.7% 19.0% 100.0%
Orlando 1,215,820 6,548 77,603 1,299,971 93.5% 0.5% 6.0% 100.0%
Jacksonville 1,151,758 6,098 8,707 1,166,563 98.7% 0.5% 0.7% 100.0%
Tallahassee 651,426 0 182,490 833,916 78.1% 0.0% 21.9% 100.0%
Charlotte 606,586 1,130 101,162 708,878 85.6% 0.2% 14.3% 100.0%
St. Petersburg 575,697 7,210 86,341 669,248 86.0% 1.1% 12.9% 100.0%
Memphis 443,745 66 84,303 528,114 84.0% 0.0% 16.0% 100.0%
Richmond 145,008 0 0 145,008 100.0% 0.0% 0.0% 100.0%
-------------- --------------- --------------- ---------------
Total 6,661,317 61,131 988,088 7,710,536 86.4% 0.8% 12.8% 100.0%
============== =============== =============== =============== ============== ============= ============ ===========
16
KOGER EQUITY, INC. AND SUBSIDIARIES
LEASE DISTRIBUTION
AS OF JUNE 30, 2002
Tenant
Occupied Percent Annualized Average Percent
Number of Percent of Square of Square Gross Annualized of Total Remaining
Category Leases (1) Leases Feet (2) Feet Rent (3) Rent PSF Rents Term
------------------- ------------- ----------- --------------- ----------- ---------------- ------------- ------------ ------------
2,500 or Less 426 51.0% 521,688 7.9% $9,206,510 $17.65 7.5% 22
2,501 - 5,000 181 21.7% 647,190 9.8% 11,892,083 18.37 9.7% 27
5,001 - 7,500 63 7.5% 388,744 5.9% 7,146,484 18.38 5.9% 26
7,501 - 10,000 34 4.1% 301,154 4.5% 5,627,156 18.69 4.6% 25
10,001 - 20,000 55 6.6% 763,217 11.5% 14,361,788 18.82 11.8% 35
20,001 - 40,000 41 4.9% 1,211,318 18.3% 21,411,772 17.68 17.5% 58
40,001 - 60,000 18 2.2% 896,741 13.5% 16,772,960 18.70 13.7% 51
60,001 - 100,000 13 1.6% 1,044,622 15.8% 19,390,402 18.56 15.9% 45
100,001 or Greater 4 0.5% 844,537 12.8% 16,339,404 19.35 13.4% 83
------------- ----------- --------------- ----------- ---------------- ------------
Total / Weighted
Average 835 100.0% 6,619,211 100.0% $122,148,559 $18.45 100.0% 46
============= =========== =============== =========== ================ ============= ============ ============
Square Feet % of Total
---------------- -------------
Square footage occupied by tenants 6,619,211 85.8%
Square footage attributable to vending/antenna 1,630 0.0%
Square footage occupied by owner/building use 40,476 0.5%
---------------- -------------
Total Occupied Square Footage 6,661,317 86.4%
---------------- -------------
Leased square footage 61,131 0.8%
Vacant square footage 988,088 12.8%
---------------- -------------
Total Net Rentable Square Footage 7,710,536 100.0%
================ =============
(1) Analysis does not include owner occupied space, vending leases and antenna
leases.
(2) Total net rentable square feet represented by existing leases.
(3) Annualized Gross Rent is the monthly contractual base rent and current
reimbursements under existing leases as of June 30, 2002 multiplied by 12.
17
KOGER EQUITY, INC. AND SUBSIDIARIES
LEASE EXPIRATIONS
AS OF JUNE 30, 2002
City Item 2002 2003 2004 2005 2006 2007
----------------- -------------------- ----------- ---------- ----------- ----------- ---------- -----------
Atlanta Square Feet (1) 162,092 104,237 103,240 191,085 72,213 152,249
% Square Feet (2) 6.89% 4.43% 4.39% 8.12% 3.07% 6.47%
Annualized Rent (3) 2,936,751 2,078,920 2,145,668 3,664,194 1,283,907 3,179,579
Number of Leases (4) 27 41 38 30 22 11
Rent PSF $18.12 $19.94 $20.78 $19.18 $17.78 $20.88
Orlando Square Feet (1) 246,211 298,395 243,022 157,020 87,119 63,600
% Square Feet (2) 18.93% 22.94% 18.69% 12.07% 6.70% 4.89%
Annualized Rent (3) 4,329,120 5,248,333 4,574,794 2,908,842 1,681,897 973,109
Number of Leases (4) 33 64 60 32 15 7
Rent PSF $17.58 $17.59 $18.82 $18.53 $19.31 $15.30
Jacksonville Square Feet (1) 7,504 323,548 92,737 168,926 79,821 267,516
% Square Feet (2) 0.64% 27.74% 7.95% 14.48% 6.84% 22.93%
Annualized Rent (3) 142,183 5,240,318 1,732,698 2,354,241 1,495,558 4,437,524
Number of Leases (4) 4 14 7 5 3 4
Rent PSF $18.95 $16.20 $18.68 $13.94 $18.74 $16.59
Tallahassee Square Feet (1) 142,730 94,844 66,031 5,763 174,487 85,638
% Square Feet (2) 17.13% 11.38% 7.92% 0.69% 20.94% 10.28%
Annualized Rent (3) 2,601,586 1,844,976 1,116,982 99,342 3,739,257 1,498,665
Number of Leases (4) 31 27 9 4 5 1
Rent PSF $18.23 $19.45 $16.92 $17.24 $21.43 $17.50
Charlotte Square Feet (1) 116,499 210,766 119,771 38,554 57,376 19,763
% Square Feet (2) 16.44% 29.74% 16.90% 5.44% 8.10% 2.79%
Annualized Rent (3) 1,960,944 3,809,019 2,157,622 658,290 919,964 382,433
Number of Leases (4) 11 26 21 12 6 2
Rent PSF $16.83 $18.07 $18.01 $17.07 $16.03 $19.35
St. Petersburg Square Feet (1) 41,489 105,856 120,016 94,115 56,967 46,776
% Square Feet (2) 6.19% 15.80% 17.92% 14.05% 8.50% 6.98%
Annualized Rent (3) 704,418 1,607,538 1,755,080 1,515,501 937,204 859,110
Number of Leases (4) 26 38 20 19 9 6
Rent PSF $16.98 $15.19 $14.62 $16.10 $16.45 $18.37
Memphis Square Feet (1) 55,447 63,098 40,322 134,392 71,280 29,519
% Square Feet (2) 10.52% 11.97% 7.65% 25.49% 13.52% 5.60%
Annualized Rent (3) 1,067,475 1,230,557 807,705 2,470,593 1,297,207 518,367
Number of Leases (4) 12 17 12 22 9 4
Rent PSF $19.25 $19.50 $20.03 $18.38 $18.20 $17.56
Richmond Square Feet (1) 8,341 35,441 12,541 45,704 12,952 28,688
% Square Feet (2) 5.75% 24.44% 8.65% 31.52% 8.93% 19.78%
Annualized Rent (3) 164,323 875,216 248,369 894,355 241,023 530,534
Number of Leases (4) 2 8 4 5 3 4
Rent PSF $19.70 $24.70 $19.80 $19.57 $18.61 $18.49
Total Square Feet (1) 780,313 1,236,185 797,680 835,559 612,215 693,749
% Square Feet (2) 10.13% 16.04% 10.35% 10.84% 7.95% 9.00%
Annualized Rent (3) 13,906,800 21,934,877 14,538,918 14,565,358 11,596,017 12,379,321
Number of Leases (4) 146 235 171 129 72 39
Rent PSF $17.82 $17.74 $18.23 $17.43 $18.94 $17.84
City Item 2008 2009 2010 2011 2011 + Total
----------------- -------------------- ----------- ---------- ----------- ----------- ----------- -----------
Atlanta Square Feet (1) 158,504 551,625 98,174 26,201 239,422 1,859,042
% Square Feet (2) 6.73% 23.43% 4.17% 1.11% 10.17% 78.98%
Annualized Rent (3) 3,171,324 13,447,388 1,748,395 626,573 4,284,826 38,567,525
Number of Leases (4) 6 8 1 1 7 192
Rent PSF $20.01 $24.38 $17.81 $23.91 $17.90 $20.75
Orlando Square Feet (1) 90,204 25,000 635 0 0 1,211,206
% Square Feet (2) 6.94% 1.92% 0.05% 0.00% 0.00% 93.13%
Annualized Rent (3) 1,595,019 459,306 11,573 0 0 21,781,993
Number of Leases (4) 6 1 1 0 0 219
Rent PSF $17.68 $18.37 $18.23 $0.00 $0.00 $17.98
Jacksonville Square Feet (1) 0 0 0 26,947 176,000 1,142,999
% Square Feet (2) 0.00% 0.00% 0.00% 2.31% 15.09% 97.98%
Annualized Rent (3) 0 0 0 527,622 2,633,842 18,563,986
Number of Leases (4) 0 0 0 1 1 39
Rent PSF $0.00 $0.00 $0.00 $19.58 $14.97 $16.24
Tallahassee Square Feet (1) 48,876 0 0 26,696 0 645,065
% Square Feet (2) 5.86% 0.00% 0.00% 3.20% 0.00% 77.40%
Annualized Rent (3) 872,437 0 0 340,374 0 12,113,619
Number of Leases (4) 1 0 0 1 0 79
Rent PSF $17.85 $0.00 $0.00 $12.75 $0.00 $18.78
Charlotte Square Feet (1) 0 40,307 0 0 0 603,036
% Square Feet (2) 0.00% 5.69% 0.00% 0.00% 0.00% 85.10%
Annualized Rent (3) 0 735,396 0 0 0 10,623,668
Number of Leases (4) 0 1 0 0 0 79
Rent PSF $0.00 $18.24 $0.00 $0.00 $0.00 $17.62
St. Petersburg Square Feet (1) 77,336 12,709 17,686 0 0 572,950
% Square Feet (2) 11.55% 1.90% 2.64% 0.00% 0.00% 85.54%
Annualized Rent (3) 1,457,427 170,936 244,774 0 0 9,251,988
Number of Leases (4) 2 1 1 0 0 122
Rent PSF $18.85 $13.45 $13.84 $0.00 $0.00 $16.15
Memphis Square Feet (1) 47,188 0 0 0 0 441,246
% Square Feet (2) 8.95% 0.00% 0.00% 0.00% 0.00% 83.70%
Annualized Rent (3) 900,057 0 0 0 0 8,291,961
Number of Leases (4) 3 0 0 0 0 79
Rent PSF $19.07 $0.00 $0.00 $0.00 $0.00 $18.79
Richmond Square Feet (1) 0 0 0 0 0 143,667
% Square Feet (2) 0.00% 0.00% 0.00% 0.00% 0.00% 99.08%
Annualized Rent (3) 0 0 0 0 0 2,953,820
Number of Leases (4) 0 0 0 0 0 26
Rent PSF $0.00 $0.00 $0.00 $0.00 $0.00 $20.56
Total Square Feet (1) 422,108 629,641 116,495 79,844 415,422 6,619,211
% Square Feet (2) 5.48% 8.17% 1.51% 1.04% 5.39% 85.91%
Annualized Rent (3) 7,996,264 14,813,026 2,004,742 1,494,569 6,918,668 122,148,560
Number of Leases (4) 18 11 3 3 8 835
Rent PSF $18.94 $23.53 $17.21 $18.72 $16.65 $18.45
(1) Total net rentable square feet represented by expiring leases.
(2) Percentage of total net rentable feet represented by expiring leases.
(3) Annualized Gross Rent is the monthly contractual base rent and current
reimbursements under existing leases as of June 30, 2002 multiplied by 12.
(4) Analysis does not include owner occupied space, vending leases and antenna
leases.
18
KOGER EQUITY, INC. AND SUBSIDIARIES
NET EFFECTIVE RENTS
New & Backfill Leasing
------------------------------------------------------------------------------
06/30/2002 03/31/2002 12/31/2001 09/30/2001 Average
------------- -------------- -------------- ------------ ------------
Number of leases 29 27 41 51 37
Rentable square footage leased 154,666 40,165 104,477 157,108 114,104
Average per rentable square foot over the lease term:
Gross Rent $ 19.83 $ 17.66 $ 18.01 $ 17.46 $18.11
Tenant improvements (1.96) (1.59) (1.66) (2.27) (1.92)
Leasing commissions (0.98) (0.40) (0.14) (0.37) (0.43)
Other/concessions - - - - -
------------- -------------- -------------- ------------ ------------
Effective Rent 16.89 15.67 16.21 14.82 15.77
Expense stop (6.16) (5.26) (5.81) (5.75) (5.76)
------------- -------------- -------------- ------------ ------------
Equivalent effective net rent $ 10.73 $ 10.41 $ 10.40 $ 9.07 $10.01
============= ============== ============== ============ ============
Average term (yrs) 6.0 3.8 5.5 5.6 5.3
Renewal Leasing
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06/30/2002 03/31/2002 12/31/2001 09/30/2001 Average
------------- -------------- -------------- ------------ ------------
Number of leases 56 45 40 51 48
Rentable square footage leased 169,543 434,600 104,292 398,747 276,796
Average per rentable square foot over the lease term:
Gross Rent $ 18.53 $ 16.08 $ 17.43 $ 16.33 $17.14
Tenant improvements (0.91) (0.56) (0.77) (0.23) (0.62)
Leasing commissions (0.24) (0.10) (0.33) (0.14) (0.20)
Other/concessions - - - - -
------------- -------------- -------------- ------------ ------------
Effective Rent 17.38 15.42 16.33 15.96 16.32
Expense stop (5.55) (4.96) (5.90) (5.41) (5.45)
------------- -------------- -------------- ------------ ------------
Equivalent effective net rent $ 11.83 $ 10.46 $ 10.43 $ 10.55 $10.88
============= ============== ============== ============ ============
Average term (yrs) 3.8 4.2 4.7 2.4 3.7
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KOGER EQUITY, INC. AND SUBSIDIARIES
SAME SUITE ANALYSIS
YEAR TO DATE JUNE 30, 2002
Total Leasing (a)
-----------------------------------------------------------------------------------------------------
RSF New Net Expiring Net Percent
Leased Rent per RSF Rent per RSF Change Change
------------------ --------------------- --------------------- ---------------- -----------------
Atlanta 130,248 $13.88 $13.25 $0.63 4.8%
Orlando 99,665 $11.58 $10.78 $0.80 7.4%
Jacksonville 167,459 $10.10 $10.57 ($0.47) -4.4%
Tallahassee 113,861 $11.38 $11.12 $0.26 2.3%
Charlotte 8,773 $13.81 $14.04 ($0.23) -1.6%
St. Petersburg 96,447 $10.93 $11.15 ($0.22) -2.0%
Memphis 39,281 $10.83 $11.15 ($0.32) -2.9%
Richmond 19,295 $12.97 $13.59 ($0.62) -4.6%
------------------ --------------------- --------------------- ----------------
Total 675,029 $11.56 $11.46 $0.10 0.8%
================== ===================== ===================== ================ =================
(a) Analysis includes leases fully executed from 1/1/02 to 6/30/02 for
buildings owned at 6/30/02. Does not include First Generation space.
20