2013 Earnings Guidance
"We ended 2012 with another great year of success towards achieving our asset, operating and capital strategy objectives," Mr. Oklak stated. "Our outlook for 2013 reflects positive performance driven by our success in completing our asset re-positioning strategy. We anticipate acquisitions to be relatively balanced with dispositions and a continued healthy development pipeline which we expect to drive attractive total shareholder returns for our investors. Our guidance also reflects the common equity offering completed in January 2013 as part of our capital strategy to continue to de-lever our balance sheet."
The company announced full-year 2013 Core FFO guidance of $1.03 to $1.11 per share. The assumptions underlying the guidance are as follows:
1. Continued strong occupancy performance;
2. Same property net operating income growth;
3. Significant new development starts;
4. Progression of asset strategy execution through both dispositions and acquisitions;
5. Service operations income approximating 2012 level.
More specific assumptions and components of 2013 Core FFO will be available by 6:00 p.m. Eastern Time today through the Investor Relations-Financials section of the company's web-site.
Dividends Declared
The company's board of directors declared a quarterly cash dividend on the company's common stock of $0.17 per share, or $0.68 per share on an annualized basis. The fourth quarter dividend will be payable February 28, 2013, to shareholders of record as of February 13, 2013.
The board also declared the following dividends on the company's outstanding preferred stock:
Quarterly Class NYSE Symbol Amount/Share Record Date Payment Date---------- ------------- -------------- ----------------- ----------------- Series J DREPRJ $0.414063 February 13, 2013 February 28, 2013 Series K DREPRK $0.406250 February 13, 2013 February 28, 2013 Series L DREPRL $0.412500 February 13, 2013 February 28, 2013
FFO and AFFO Reporting Definitions
Funds from Operations ("FFO"): FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net income (loss) excluding gains (losses) on sales of depreciable property, impairment charges related to depreciable real estate assets, and extraordinary items (computed in accordance with generally accepted accounting principles ("GAAP")); plus real estate related depreciation and amortization, and after similar adjustments for unconsolidated joint ventures. The company believes FFO to be most directly comparable to net income as defined by GAAP. The company believes that FFO should be examined in conjunction with net income (as defined by GAAP) as presented in the financial statements accompanying this release. FFO does not represent a measure of liquidity, nor is it indicative of funds available for the company's cash needs, including the company's ability to make cash distributions to shareholders.
Core Funds from Operations ("Core FFO"): Core FFO is computed as FFO adjusted for certain items that are generally non-cash in nature and that materially distort the comparative measurement of company performance over time. The adjustments include impairment charges, tax expenses or benefit related to (i) changes in deferred tax asset valuation allowances, (ii) changes in tax exposure accruals that were previously established as the result of the adoption of new accounting principles, or (iii) taxable income (loss) related to other items excluded from FFO or Core FFO (collectively referred to as "other income tax items"), gains (losses) on debt transactions, adjustments on the repurchase of preferred stock, gains (losses) on and related costs of acquisitions, and severance charges related to overhead restructuring activities. Although the company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the company believes it provides a meaningful supplemental measure of its operating performance.
