Reconciliation of Funds from Operations (1) (2):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2011
2010
2011
2010
Net Income (loss) Attributable to Common Stockholders
$ 2,916
$ 380
$ (214)
$ 8,200
Gain on sales of real estate properties
(5,642)
(40)
(7,035)
(8,352)
Impairments
4,999
150
6,697
7,511
Real estate depreciation and amortization
23,062
18,883
85,234
71,725
Total adjustments
22,419
18,993
84,896
70,884
Funds From Operations
$ 25,335
$ 19,373
$ 84,682
$ 79,084
Funds From Operations Per Common Share – Diluted
$ 0.33
$ 0.30
$ 1.15
$ 1.26
Weighted Average Common Shares Outstanding – Diluted
77,474,951
64,241,164
73,807,041
62,770,826
Reconciliation of Funds Available for Distribution (2):
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
December 31, 2011
Net Income Attributable to Common Stockholders
$ 2,916
Gain on sales of real estate properties
(5,642)
Total non-cash items included in cash flows from operating activities (3)
30,001
Funds Available For Distribution
$ 27,275
Funds Available For Distribution Per Common Share – Diluted
$ 0.35
Weighted Average Common Shares Outstanding – Diluted
77,474,951
Normalized Funds from Operations and Funds Available for Distribution:
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
December 31, 2011
Funds From Operations
$ 25,335
Adjustments:
Acquisition costs
199
Write off of deferred financing costs upon renewal of line of credit facility
393
Normalized Funds From Operations
$ 25,927
Normalized Funds From Operations Per Common Share – Diluted
$ 0.33
Weighted Average Common Shares Outstanding – Diluted
77,474,951
Three Months Ended
December 31, 2011
Funds Available For Distribution
$ 27,275
Adjustments:
Acquisition costs
199
Normalized Funds Available For Distribution
$ 27,474
Normalized Funds Available For Distribution Per Common Share – Diluted
$ 0.35
Weighted Average Common Shares Outstanding – Diluted
77,474,951
(1)
Funds from operations (“FFO”) is calculated according to the definition of the National Association of Real Estate Investment Trusts and is comprised primarily of net income (loss) attributable to common stockholders and depreciation from real estate, but is not adjusted for certain non-cash income and expense items. The SEC indicated in 2003 that impairment charges (losses) could not be added back to net income attributable to common stockholders in calculating FFO. However, in late October 2011, NAREIT issued an alert indicating that the SEC staff recently advised NAREIT that it currently takes no position on the matter of whether impairment charges should be added back to net income to compute FFO and NAREIT affirmed its original definition of FFO. For 2011, the Company is following the NAREIT definition to exclude impairment charges and has restated all prior periods to exclude impairment charges in calculating FFO and FFO per share to agree with the 2011 presentation.
(2)
FFO and Funds Available For Distribution (“FAD”) do not represent cash generated from operating activities determined in accordance with accounting principles generally accepted in the United States of America and are not necessarily indicative of cash available to fund cash needs. FFO and FAD should not be considered alternatives to net income attributable to common stockholders as indicators of the Company’s operating performance or as alternatives to cash flow as measures of liquidity.
(3)
See the Consolidated Statements of Cash Flows that are included in this earnings release.
