JDN Realty Reports Lower FFO and Net Income for Fiscal 2000

Company CEO Craig Macnab plans to announce new property developments in the coming months at the same time the REIT will be unloading some of the dogs from its 111-property, 11.9 million-sf portfolio in 19 states, according to the SEC filing.

"We plan to divest the company of certain assets that are no longer consistent with our strategy, or have limited or declining growth characteristics," Macnab says in the filing. "We believe there are buyers with corporate strategies that may provide a better fit for these types of assets."

Macnab didn't identify the size or location of the properties. "Many of these assets have been written down to their expected market values and are included in the impairment charges taken in the fourth quarter," he says.

Funds from operations were up in the fourth quarter but down for the year.

Fourth quarter diluted FFO per share before special charges was 40 cents versus eight cents in the comparable 1999 period. FFO before special charges totaled $12.9 million compared with $2.7 million in 1999.

Net income before special charges was $10.8 million or 33 cents per share diluted, versus $9.2 million or 28 cents per share diluted in fourth quarter 1999. Total revenue was $25.8 million, down from $28 million in the same 1999 period.

For the year ended Dec. 31, the picture is different. Diluted FFO per share before special charges was $1.50 compared with $1.55 last year. FFO before special charges was $48.8 million compared with $52.2 million in 1999.

Net income before special charges was $44 million or $1.36 per share diluted versus $48.4 million or $1.44 per share in fiscal 1999. Total revenue was $106.1 million compared with $06.2 million for the comparable period in 1999.

Despite the lackluster performance in 2000, the filing states the company is "comfortable" with projected FFO of $1.38 to $1.42 per share for 2001.