Mission West Reports 30% Hike in Q3 FFO

CUPERTINO, CA-Mission West Properties, Inc. has reported that funds from operations for the quarter ending Sept. 30 was $30,501,000, a per share increase of approximately 30% from the same period last year.

The $30,501,000, or 30 cents per diluted common share, was an approximate 11% increase over the second quarter ending June 30 and a 30% hike over the third quarter of 2000.

Last month, Mission West Properties sold a 77,000-sf R&D property located at 5713-5729 Fontanoso Way in San Jose to Cisco Systems, which exercised its purchase option in November 2000. The property sold for $15.4 million, leaving Mission West with a gain of about $8.5 million.

During the 3rd quarter of 2001, Mission West acquired four R&D properties located in San Jose, adding 321,000-sf of rentable space to its portfolio.

These properties, located at 5905-5965 Silver Creek Valley Road and 5750 Hellyer Avenue, were acquired from the Berg group under the Berg Land Holdings Option Agreement.

Mission West paid approximately $27 million for the Silver Creek Valley Road space and about $6.6 million for 5750 Hellyer Avenue. The combined first-year unleveraged cash return for these acquisitions is 19.8%.