AmeriVest's 2000 FFO Down, Net Income Up

In 1999, AmeriVest had an operating income of $5.98 million, and net income of $968,748, or 51 cents per share. This represents more than a 20% increase in operating income.

But FFO, considered one of the best ways to measure a REIT's health, had fallen over the course of the year. AmeriVest's FFO in 2000 had totaled $1.385 million, or 56 cents per share, in comparison to $1.33 million, or 71 cents per share in the prior fiscal year.

William Atkins, AmeriVest's CEO, attributes the decline in FFO on a per share basis primarily to severance expenses in the third quarter, an increase of more than 33% in the common shares outstanding and the write-off of loan fees to refinance Sheridan Plaza at Inverness during the fourth quarter. AmeriVest refinanced the property with a fixed mortgage and began an extensive rehab of the building along Denver's southeast corridor. That building is not expected to contribute to the company's FFO until late this year.

"We are pleased with our results during this transition year for the company, where we repositioned this previously diversified REIT to a 100% office building REIT focused on small and mid-sized properties," says Atkins. "We are also gratified to report our continued growth in assets, revenues, earnings and funds from operations during this transition year."

AmeriVest owns 22 office properties. Since 1997, shareholders have received a total return of more than 20% return per year. In the first quarter of this year, it had been the 44th best-performing stock based in Colorado, providing a return of 20.8%.