HOUSTON, May 8, 2017 /PRNewswire/ -- Parkway, Inc.
(NYSE: PKY) today announced results for its first quarter ended
March 31, 2017.
Highlights for First Quarter 2017 and Subsequent
Events
- Reported basic and diluted net loss for the first quarter of
$0.26 per share of common
stock
- Reported first quarter FFO of $0.52 per diluted share
- Completed 114,000 square feet of renewal leasing,
representing a 15.1% increase from the expiring rate and 84.8%
customer retention
- Ended the quarter with the portfolio 87.6% leased
- Completed the sale of a 49% interest in Greenway Plaza and
Phoenix Tower for a gross purchase price of $512.1 million, or an implied $210 per square foot
- Updating 2017 net loss guidance to $(0.67) to $(0.53) per share and 2017 FFO
guidance to $1.37 to $1.47 per
share
"Parkway's first quarter performance is a result of hard work
from our leasing and operations team during a challenging time in
the Houston market," stated
James R. Heistand, President and
Chief Executive Officer of Parkway. "Houston office fundamentals remain under
significant pressure, but we are using our operational expertise
and efficiencies within our portfolio to improve leasing velocity
and retain as many tenants as possible at reasonable economics. We
also completed the previously announced sale of a 49% interest in
Greenway Plaza and Phoenix Tower, which helps to mitigate risk in a
large asset while providing proceeds that can be used to strengthen
our balance sheet and pursue opportunities that we believe will be
accretive for our stockholders."
For the first quarter 2017, net loss for Parkway, Inc.
("Parkway" or the "Company") attributable to common stockholders
was $12.5 million, or $0.26 per basic and diluted share. For the first
quarter 2017, funds from operations ("FFO") was $26.0 million, or $0.52 per diluted share.
Operational Results
Occupancy at the end of the first quarter 2017 was 85.9%.
Including leases that have been signed but have yet to commence,
the Company's leased percentage at the end of the first quarter
2017 was 87.6%.
Leasing Activity
During the first quarter 2017, Parkway signed approximately
167,000 square feet of leases at an average net rent per square
foot of $20.40 and at an average cost
of $6.78 per square foot per year.
All leasing statistics for first quarter 2017 exclude the execution
of an 89,000 square foot, 20-year new lease with an affiliate of
Life Time Fitness, Inc. ("Life Time") at Greenway Plaza, which the
Company recognizes as a retail lease and accordingly excludes from
leasing totals. The Life Time lease will replace the Houston
City Club lease, which is set to expire on June 30, 2017.
New & Expansion Leasing – During the first quarter 2017,
Parkway signed approximately 30,000 square feet of new leases at an
average net rent per square foot of $20.84 and at an average cost of $7.38 per square foot per year.
Expansion leases during the first quarter 2017 totaled 23,000
square feet at an average net rent per square foot of $19.70 and at an average cost of $8.52 per square foot per year.
Renewal Leasing – Customer retention during the first quarter
2017 was 84.8%. Parkway signed approximately 114,000 square feet of
renewal leases at an average net rent per square foot of
$20.43, representing a 15.1% rate
increase from the expiring rate. The average cost of renewal leases
was $6.11 per square foot per
year.
Capital Structure
At March 31, 2017, Parkway
had no outstanding debt under its revolving credit
facility, $350.0 million outstanding
under its term loan and held $174.4
million in cash and cash equivalents. Parkway's
secured debt totaled $447.3 million
at March 31, 2017.
At March 31, 2017, the Company's
net debt plus preferred stock to adjusted EBITDA – annualized
multiple was 4.4x. A reconciliation of net income (loss) to
adjusted EBITDA and adjusted EBITDA – annualized is presented in
the tables attached to this press release.
Common Dividend
The Company's previously announced first quarter cash dividend
of $0.10 per share, which represents
an annualized dividend of $0.40 per
share, was paid on March 30, 2017 to
stockholders of record as of March 16,
2017.
Subsequent Events
On April 20, 2017, Parkway
completed a joint venture with respect to Greenway Plaza and
Phoenix Tower (collectively, the "Greenway Portfolio") by selling a
49.0% interest in the properties for a gross purchase price of
$512.1 million, or an implied
$210 per square foot. The
Greenway Portfolio is an approximately 5.0 million square foot
campus consisting of 11 office properties located in the Greenway
submarket of Houston, Texas.
Parkway, through certain of its subsidiaries, formed the joint
venture with TH Real Estate Global Asset Management, the real
estate investment management arm of TIAA ("TH Real Estate"),
Silverpeak Real Estate Partners ("Silverpeak") and Canada Pension
Plan Investment Board ("CPPIB"). As part of the joint venture
transaction, Parkway retained a 51% interest in the Greenway
Portfolio, a partnership between TH Real Estate and Silverpeak
acquired a 24.5% interest, and CPPIB acquired a 24.5%
interest. Parkway, through certain of its subsidiaries,
serves as the general partner and also provides property management
and leasing services for the joint venture.
The joint venture assumed the existing mortgage debt secured by
Phoenix Tower, which has an outstanding balance of approximately
$75.9 million and matures on
March 1, 2023. Additionally,
the joint venture placed a new mortgage loan from Goldman Sachs
Mortgage Company totaling $465.0
million (the "Loan") secured by the other properties in the
Greenway Portfolio. The Loan has a fixed interest rate of 3.75% and
matures on May 6, 2022. Parkway
also terminated its existing revolver and term loan credit facility
and prepaid the $350.0 million
outstanding balance using proceeds from the Loan. Parkway
expects to record a $7.6 million
non-cash loss on extinguishment of debt in the second quarter of
2017 related to the termination of the credit facility.
Net proceeds to Parkway were approximately $322.4 million, $37.9
million of which is being held in lender reserves. The
net proceeds amount includes the new debt placement and the payoff
of the $350.0 million term loan
credit facility. Parkway's net proceeds are also net of
credits to the other joint venture partners related to outstanding
contractual lease obligations for tenant improvements and rent
concessions as well as certain capital expenditures for projects
that are in process, all of which totaled approximately
$32.8 million. Additionally,
Parkway recorded an impairment loss of approximately $15.0 million in the first quarter of 2017
related to the joint venture transaction.
2017 Outlook
After considering the Company's year-to-date performance,
including the timing of the closing of the Greenway Portfolio
joint venture, and expected results for the remainder of the
year, Parkway is updating its 2017 net loss outlook to a range of
$(0.67) to $(0.53) per diluted share,
its 2017 FFO outlook to a range of $1.37 to
$1.47 per diluted share, and its 2017 recurring FFO
outlook to a range of $1.52 to $1.62
per diluted share.
The reconciliation of projected earnings per share ("EPS") to
projected FFO and recurring FFO per diluted share is as
follows:
Outlook for
2017
|
Range
|
Fully diluted
EPS
|
$(0.67)
|
-
|
$(0.53)
|
Noncontrolling
interest - unitholders
|
$(0.02)
|
-
|
$0.00
|
Parkway's share of
depreciation and amortization
|
$1.76
|
-
|
$1.70
|
Impairment loss on
real estate
|
$0.30
|
-
|
$0.30
|
FFO per diluted
share
|
$1.37
|
-
|
$1.47
|
Loss on
extinguishment of debt
|
$0.15
|
-
|
$0.15
|
Recurring FFO per
diluted share
|
$1.52
|
-
|
$1.62
|
The 2017 outlook is based on the core operating and financial
assumptions outlined in the table below. These assumptions
reflect the Company's expectations based on its knowledge of
current market conditions and historical experience. All
dollar amounts presented in this table are at Parkway's share and
dollars and shares are in thousands.
2017 Core
Operating Assumptions:
|
|
Revised
2017
Outlook
|
|
Previous
2017
Outlook
|
Recurring cash
NOI
|
|
$98,500
|
-
|
$105,500
|
|
$97,000
|
-
|
$104,000
|
|
|
|
|
|
|
|
|
|
Straight-line rent
and amortization of
above/below market rent
|
|
$16,000
|
-
|
$19,000
|
|
$16,000
|
-
|
$19,000
|
|
|
|
|
|
|
|
|
|
Management fee
after-tax net loss
|
|
$(1,000)
|
-
|
$0
|
|
$(1,000)
|
-
|
$0
|
|
|
|
|
|
|
|
|
|
General and
administrative ("G&A") expense
|
|
$12,000
|
-
|
$15,000
|
|
$12,000
|
-
|
$15,000
|
|
|
|
|
|
|
|
|
|
Share based
compensation expense included in G&A above
|
|
$1,800
|
-
|
$2,200
|
|
$1,800
|
-
|
$2,200
|
|
|
|
|
|
|
|
|
|
Impairment loss on
real estate
|
|
$15,000
|
-
|
$15,000
|
|
$25,000
|
-
|
$25,000
|
|
|
|
|
|
|
|
|
|
Interest and other
income
|
|
$500
|
-
|
$1,500
|
|
$500
|
-
|
$1,500
|
|
|
|
|
|
|
|
|
|
Interest expense and
loan cost amortization
|
|
$32,500
|
-
|
$36,500
|
|
$32,500
|
-
|
$36,500
|
|
|
|
|
|
|
|
|
|
Loan cost
amortization included in interest
expense above
|
|
$500
|
-
|
$1,500
|
|
$500
|
-
|
$1,500
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt included in
interest expense above
|
|
$7,500
|
-
|
$7,750
|
|
$7,500
|
-
|
$7,750
|
|
|
|
|
|
|
|
|
|
Amortization of
mortgage interest premium
included in interest expense above
|
|
$2,500
|
-
|
$3,000
|
|
$2,500
|
-
|
$3,000
|
|
|
|
|
|
|
|
|
|
Recurring capital
expenditures for building
improvements, tenant improvements and
leasing commissions
|
|
$70,000
|
-
|
$80,000
|
|
$70,000
|
-
|
$80,000
|
|
|
|
|
|
|
|
|
|
Portfolio ending
occupancy
|
|
86.0%
|
-
|
88.0%
|
|
86.0%
|
-
|
88.0%
|
|
|
|
|
|
|
|
|
|
Weighted average
annual diluted common
shares/units
|
|
50,273
|
-
|
50,273
|
|
50,273
|
-
|
50,273
|
Variance within the outlook range may occur due to variations in
the recurring revenue and expenses of the Company, as well as
certain non-recurring items. The earnings outlook does not
include the impact of possible future gains or losses on early
extinguishment of debt, possible future acquisitions or
dispositions and related costs other than those currently under
contract, possible future capital markets activity, the impact of
fluctuations in the Company's stock price on share-based
compensation, possible future impairment charges or other unusual
charges that may occur during the year, except as noted. It
is and will continue to be the Company's policy not to issue
quarterly earnings guidance or revise the annual earnings outlook
unless a material event occurs that impacts the Company's FFO
outlook range. This policy is intended to lessen the emphasis
on short-term movements that do not have a material impact on
earnings or long-term value of the Company.
Webcast and Conference Call
Parkway will conduct its first quarter 2017 earnings conference
call on Tuesday, May 9, 2017 at
9:00 a.m. Eastern Time. To
participate in the conference call, please dial 877-870-4263, or
1-412-317-0790 for international participants, at least five
minutes prior to the scheduled start time. A live audio
webcast will also be available on the Investors section of the
Company's website (www.pky.com). A taped replay of the call
can be accessed 24 hours a day through May
16, 2017, by dialing 877-344-7529, or 1-412-317-0088 for
international callers, and using the passcode 10105443.
About Parkway
Parkway is an independent, publicly traded, self-managed real
estate investment trust ("REIT") that owns and operates
high-quality office properties located in attractive submarkets in
Houston, Texas. As of March 31, 2017, our portfolio consists of five
Class A assets comprising 19 buildings and totaling approximately
8.7 million rentable square feet in the Greenway, Galleria and
Westchase submarkets of Houston.
Forward Looking Statements
Certain statements in this press release that are not in the
present or past tense or that discuss the Company's expectations
(including any use of the words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "forecast," "guidance," "intend,"
"may," "might," "outlook," "plan," "potential," "project,"
"result," "seek," "should," "will" or similar expressions) are
forward-looking statements within the meaning of the federal
securities laws and as such are based upon the Company's current
beliefs as to the outcome and timing of future events. There can be
no assurance that actual future developments affecting the Company
will be those anticipated by the Company. Examples of
forward-looking statements include projections relating to fully
diluted net income (loss) per share, share of depreciation and
amortization, impairments of depreciated real estate, net gains
(loss) on sales of real estate, reported FFO per share, recurring
FFO per share, nonrecurring items, net operating income, cap rates,
internal rates of return, dividend payment rates, FFO accretion,
capital improvements, expected sources of financing, the timing of
closing of acquisitions, dispositions or other transactions, the
ability to complete acquisitions and dispositions and the risks
associated therewith. These forward-looking statements
involve risks and uncertainties (some of which are beyond the
control of the Company) and are subject to change based upon
various factors including, but not limited to, the following risks
and uncertainties: the Company's short operating history as an
independent company; conditions associated with the Company's
primary market, including an oversupply of office space, customer
financial difficulties and general economic conditions; that each
of the Company's properties represent a significant portion of the
Company's revenues and costs; that the spin-off from Cousins
Properties Incorporated ("Cousins") will not qualify for tax-free
treatment; the Company's ability to meet mortgage debt obligations
on certain of its properties; the availability of refinancing
current debt obligations; risks associated with joint ventures and
potential co-investments with third parties; changes in any credit
rating the Company may obtain; changes in the real estate industry
and in the performance of the financial markets and interest rates
and the Company's ability to effectively hedge against interest
rate changes; the actual or perceived impact of global and economic
conditions, including U.S. monetary policy; declines in commodity
prices, which may negatively impact the Houston, Texas market; the concentration of
the Company's customers in the energy sector; that a significant
portion of the Company's revenues come from the Company's top 20
customers; the demand for and market acceptance of the Company's
properties for rental purposes; the Company's ability to enter into
new leases or renewal leases on favorable terms; the potential for
termination of existing leases pursuant to customer termination
rights; the amount, growth and relative inelasticity of the
Company's expenses; the bankruptcy or insolvency of companies for
which the Company provides property management services or the sale
of these properties; the outcome of claims and litigation involving
or affecting the Company; the ability to satisfy conditions
necessary to close pending transactions and the ability to
successfully integrate the assets and related operations acquired
in such transactions after the closing; applicable regulatory
changes; risks associated with the ownership and development of
real property, including risks related to natural disasters and
illiquidity of real estate; risks associated with property
acquisitions, including the integration of the combined businesses
of Parkway Properties, Inc. and Cousins; risks associated with the
fact that the Company's historical and pro forma financial
information may not be a reliable indicator of the Company's future
results; risks associated with achieving expected synergies or cost
savings; defaults or non-renewal of leases; termination or
non-renewal of property management contracts; the Company's failure
to maintain its status as a REIT under the Internal Revenue Code of
1986, as amended; risks associated with the volatility of the
Company's common stock; and other risks and uncertainties detailed
from time to time in the Company's Securities and Exchange
Commission filings. Should one or more of these risks or
uncertainties occur, or should underlying assumptions prove
incorrect, the Company's business, financial condition, liquidity,
cash flows and financial results could differ materially from those
expressed in the Company's forward-looking statements. Any
forward-looking statement speaks only as of the date on which it is
made. New risks and uncertainties arise over time, and it is
not possible for us to predict the occurrence of those matters or
the manner in which they may affect us. The Company does not
undertake to update forward-looking statements except as may be
required by law.
Company's Use of Non-GAAP Financial Measures
FFO and net operating income ("NOI"), including related per
share amounts, are used by management, investors and industry
analysts as supplemental measures of operating performance of
equity REITs and should be evaluated along with net income (loss)
and income per diluted share determined in accordance with
generally accepted accounting principles in the United States ("GAAP") (the most directly
comparable GAAP measures) in evaluating the operating performance
of the Company. Management believes that FFO and NOI are helpful to
investors as supplemental performance measures because these
measures exclude the effect of depreciation, amortization and gains
or losses from sales of real estate, all of which are based on
historical costs which implicitly assumes that the value of real
estate diminishes predictably over time. Since real estate values
instead have historically risen or fallen with market conditions,
these non-GAAP measures can facilitate comparisons of operating
performance between periods and among other equity REITs.
Non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company's results of operations
determined in accordance with GAAP. FFO and NOI do not
represent cash generated from operating activities in accordance
with GAAP and are not necessarily indicative of cash available to
fund cash needs as disclosed in the Company's Consolidated
Statements of Cash Flows. FFO and NOI should not be
considered as an alternative to net income (loss) as an indicator
of the Company's operating performance or as an alternative to cash
flows as a measure of liquidity. The Company's calculation of
these non-GAAP measures may not be comparable to similarly titled
measures reported by other companies.
Funds from Operations (FFO) – Parkway computes FFO in
accordance with standards established by the National Association
of Real Estate Investment Trusts ("NAREIT"), which may not be
comparable to FFO reported by other REITs that do not define the
term in accordance with the current NAREIT definition. FFO is
defined by NAREIT as net income (loss) (computed in accordance with
GAAP), reduced by preferred dividends, excluding gains or losses
from the sale of previously depreciable real estate assets,
impairment charges related to depreciable real estate under GAAP,
plus depreciation and amortization related to depreciable real
estate. Further, we do not adjust FFO to eliminate the effects of
non-recurring charges. The Company believes that FFO is a
meaningful supplemental measure of its operating performance
because historical cost accounting for real estate assets in
accordance with GAAP implicitly assumes that the value of real
estate assets diminishes predictably over time, as reflected
through depreciation and amortization expenses. The Company
believes that the use of FFO, combined with the required GAAP
presentations, has been beneficial in improving the understanding
of operating results of REITs among the investing public and making
comparisons of operating results among such companies more
meaningful. FFO measures 100% of the operating performance of
Parkway Operating Partnership LP in which Parkway owns an
interest. A reconciliation of net income (loss) to FFO is
presented in the tables attached to this press
release.
Recurring FFO – In addition to FFO, Parkway also
discloses recurring FFO, which excludes transaction and acquisition
costs or other unusual items. Although this is a non-GAAP measure
that differs from NAREIT's definition of FFO, the Company believes
it provides a meaningful presentation to investors of operating
performance because it allows investors to compare the Company's
operating performance to the Company's performance in prior
reporting periods without the effect of items that by their nature
are not compatible from period to period and tend to obscure our
actual operating results. Recurring FFO measures 100% of the
operating performance of Parkway Operating Partnership LP in which
Parkway owns an interest.
Funds Available for Distribution (FAD)- There is not a
generally accepted definition established for FAD. Therefore, the
Company's measure of FAD may not be comparable to FAD reported by
other REITs. Parkway defines FAD as FFO, excluding straight-line
rents, amortization of below market leases, net, share-based
compensation expense, amortization of loan costs, amortization of
mortgage interest premium and reduced by capital expenditures for
building improvements, tenant improvements and leasing costs. FAD
measures 100% of the operating performance of Parkway Operating
Partnership LP in which Parkway owns an interest. A reconciliation
of net income (loss) to FAD is presented in the tables attached to
this press release.
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) and Adjusted EBITDA – Parkway
believes that using EBITDA as a non-GAAP financial measure helps
investors and management analyze our ability to service debt.
Parkway defines EBITDA as net income (loss) before interest
expense, income taxes and depreciation and amortization. Parkway
further defines Adjusted EBITDA, a non-GAAP financial measure, as
net income (loss) before interest expense, income taxes,
depreciation and amortization expense, share-based compensation
expense, impairment of real estate, gains and losses on sales of
real estate, gains and losses on extinguishment of debt and
transaction and acquisition costs. Although EBITDA and Adjusted
EBITDA have limitations as analytical tools, we compensate for the
limitations by only using EBITDA and Adjusted EBITDA to supplement
GAAP financial measures. Additionally, we believe that investors
should consider EBITDA and Adjusted EBITDA in conjunction with net
income (loss) and the other required GAAP measures of our
performance to improve their understanding of our operating
results. EBITDA and Adjusted EBITDA measure 100% of the operating
performance of Parkway Operating Partnership LP in which Parkway
owns an interest. A reconciliation of net income (loss) to EBITDA
and Adjusted EBITDA is presented in the tables attached to this
press release.
Contact:
Thomas
Blalock
Vice President, Finance & Capital Markets
(407) 581-2915
tblalock@pky.com
PARKWAY,
INC.
|
CONSOLIDATED
STATEMENT OF OPERATIONS
|
(In thousands, except
per share data)
|
|
|
|
|
|
Three
Months
|
|
Ended
|
|
March 31,
2017
|
|
(Unaudited)
|
|
|
Revenues
|
|
Income from office
properties
|
$
70,117
|
Management company
income
|
1,248
|
Total
revenues
|
71,365
|
|
|
Expenses
|
|
Property operating
expenses
|
30,444
|
Management company
expenses
|
1,746
|
Depreciation and
amortization
|
23,768
|
Impairment loss on
real estate
|
15,000
|
General and
administrative
|
4,148
|
Total
expenses
|
75,106
|
|
|
Operating
loss
|
(3,741)
|
|
|
Other income and
expenses
|
|
Interest
income
|
208
|
Interest
expense
|
(8,686)
|
|
|
Loss before income
taxes
|
(12,219)
|
|
|
Income tax
expense
|
(490)
|
|
|
Net
loss
|
(12,709)
|
Net loss attributable
to noncontrolling interest - unitholders
|
260
|
Net loss
attributable to Parkway, Inc.
|
(12,449)
|
Dividends on
preferred stock
|
(100)
|
Net loss
attributable to common stockholders
|
$
(12,549)
|
|
|
Net loss per
common share attributable to common stockholders:
|
|
Basic net loss per
common share attributable to common stockholders
|
$
(0.26)
|
Diluted net loss per
common share attributable to common stockholders
|
$
(0.26)
|
|
|
Weighted average
shares outstanding:
|
|
Basic
|
49,193
|
Diluted
|
49,193
|
|
|
PARKWAY,
INC.
|
CONSOLIDATED
BALANCE SHEET
|
(In thousands, except
share and per share data)
|
|
|
|
|
|
March 31,
2017
|
|
(Unaudited)
|
Assets
|
|
Real estate related
investments:
|
|
Office
properties
|
$
775,546
|
Accumulated
depreciation
|
(45,526)
|
|
730,020
|
|
|
Receivables and other
assets:
|
|
Rents and fees
receivable, net
|
327
|
Straight line rents
receivable
|
9,721
|
Other
receivables
|
1,985
|
Unamortized lease
costs
|
23,840
|
Prepaid
assets
|
7,477
|
Restricted
cash
|
3,848
|
Deferred tax asset -
non-current
|
3,530
|
Other
assets
|
3,047
|
Intangible assets,
net
|
72,192
|
Assets held for
sale
|
1,087,120
|
Cash and cash
equivalents
|
174,432
|
Total
assets
|
$
2,117,539
|
|
|
|
|
Liabilities
|
|
Notes payable to
banks, net
|
$
342,324
|
Mortgage notes
payable,
net
|
378,042
|
Accounts payable and
other liabilities:
|
|
Corporate
payables
|
4,104
|
Deferred tax
liability - non-current
|
4,309
|
Interest
payable
|
2,335
|
Property
payables:
|
|
Accrued expenses and
accounts payable
|
10,397
|
Accrued tenant
improvements
|
7,767
|
Accrued property
taxes
|
6,219
|
Unamortized below
market leases
|
20,254
|
Other
|
8,143
|
Liabilities related
to assets held for sale
|
199,856
|
Total
liabilities
|
983,750
|
|
|
|
|
Equity
|
|
Parkway, Inc.
stockholders' equity:
|
|
Common stock, $0.001
par value, 200,000,000 shares authorized and 49,195,214
shares
|
|
issued and
outstanding
|
49
|
Limited voting stock,
$0.001 par value, 1,000,000 shares authorized and 858,417
shares
|
|
issued and
outstanding
|
1
|
8.00% Series A
preferred stock, $100,000 liquidation preference per share,
50
|
|
shares authorized,
issued and outstanding, and preferred stock, $0.001 par
value,
|
|
48,999,950 shares
authorized, zero issued and outstanding
|
5,000
|
Additional paid-in
capital
|
1,137,980
|
Accumulated
deficit
|
(31,806)
|
Total Parkway, Inc. stockholders' equity
|
1,111,224
|
Noncontrolling
interests
|
22,565
|
Total
equity
|
1,133,789
|
Total liabilities and
equity
|
$
2,117,539
|
|
|
PARKWAY,
INC.
|
RECONCILIATION OF
NET INCOME (LOSS) TO FUNDS FROM OPERATIONS
|
AND FUNDS
AVAILABLE FOR DISTRIBUTION
|
(In thousands, except
per share data)
|
|
|
|
|
|
Three
Months
|
|
Ended
|
|
March 31,
2017
|
|
(Unaudited)
|
|
|
Net
loss
|
$
(12,709)
|
|
|
Adjustments to net
loss:
|
|
Dividends on
preferred stock
|
(100)
|
Depreciation and
amortization
|
23,768
|
Impairment loss on
real estate
|
15,000
|
Funds from
operations attributable to the operating partnership
|
$
25,959
|
|
|
Funds available
for distribution
|
|
Funds from operations
attributable to the operating partnership
|
$
25,959
|
Add
(deduct):
|
|
Straight-line
rents
|
(6,316)
|
Amortization of below
market leases, net
|
(1,227)
|
Share-based
compensation expense
|
488
|
Amortization of loan
costs
|
810
|
Amortization of
mortgage interest premium
|
(548)
|
Capital expenditures:
|
|
Building
improvements
|
(1,216)
|
Tenant
improvements
|
(7,656)
|
Leasing
costs
|
(3,442)
|
Total capital
expenditures
|
(12,314)
|
Funds available
for distribution attributable to the operating
partnership
|
$
6,852
|
|
|
Net loss per
common share attributable to common stockholders:
|
|
Basic net loss per
common share attributable to common stockholders
|
$
(0.26)
|
Diluted net loss per
common share attributable to common stockholders
|
$
(0.26)
|
|
|
Diluted per common
share/unit information (**)
|
|
FFO per
share
|
$
0.52
|
Dividends
paid
|
$
0.10
|
Dividend payout ratio
for FFO
|
19.2%
|
|
|
**Information for
diluted computations:
|
|
Basic weighted
average common shares/units
|
50,216
|
Dilutive effect of
other share equivalents
|
6
|
Diluted weighted
average shares/units
|
50,222
|
|
|
PARKWAY,
INC.
|
EBITDA, ADJUSTED
EBITDA, COVERAGE RATIOS AND CAPITALIZATION
INFORMATION
|
(In thousands, except
per share, percentage and multiple data)
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2017
|
|
(unaudited)
|
|
|
Net
loss
|
$
(12,709)
|
|
|
Adjustments to net
loss:
|
|
Interest
expense
|
8,686
|
Depreciation and
amortization
|
23,768
|
Income tax
expense
|
490
|
EBITDA
|
20,235
|
Share-based
compensation expense
|
488
|
Impairment loss on
real estate
|
15,000
|
Adjusted
EBITDA
|
$
35,723
|
|
|
Interest coverage
ratio:
|
|
Adjusted
EBITDA
|
$
35,723
|
Interest
expense
|
$
8,686
|
Interest coverage
ratio
|
4.1
|
|
|
Fixed charge
coverage ratio:
|
|
Adjusted
EBITDA
|
$
35,723
|
Fixed
charges:
|
|
Interest
expense
|
$
8,686
|
Principal
payments
|
2,288
|
Dividends on
preferred stock
|
100
|
Total fixed
charges
|
$
11,074
|
Fixed charge
coverage ratio
|
3.2
|
|
|
Capitalization
information
|
|
Mortgage notes
payable, at par
|
$
447,343
|
Notes payable to
banks, at par
|
350,000
|
Total
debt
|
797,343
|
Less: Cash and
cash equivalents
|
(174,432)
|
Net
debt
|
622,911
|
Series A Preferred
Stock (liquidation value)
|
5,000
|
Net debt plus
preferred stock
|
$
627,911
|
|
|
Shares of common
stock and operating units outstanding
|
50,216
|
Stock price per share
at period end
|
$
19.89
|
Market value of
common equity
|
$
998,796
|
Total market
capitalization (including net debt plus preferred stock)
|
$
1,626,707
|
Net debt plus
preferred stock as a percentage of market capitalization
|
38.6%
|
|
|
Net debt plus
preferred stock to Adjusted EBITDA - annualized
multiple
|
|
Adjusted EBITDA -
annualized (1)
|
$
142,892
|
Net debt plus
preferred stock to Adjusted EBITDA - annualized multiple
|
4.4
|
|
|
(1) Adjusted EBITDA -
annualized assumes that Greenway Plaza and Phoenix Tower are
wholly owned for an entire annualized period.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/parkway-reports-first-quarter-2017-results-300453364.html
SOURCE Parkway, Inc.