Reports Fourth Quarter FFO Excluding Certain
Items of $0.38 Per Diluted Share
Provides 2016 Guidance
TIER REIT, Inc. (NYSE: TIER), a Dallas-based real estate
investment trust that specializes in owning and operating office
properties located in select U.S. markets, today announced
financial results for the fourth quarter and full year ended
December 31, 2015.
Fourth Quarter and Full Year 2015 Highlights
- Reported funds from operations (“FFO”),
excluding certain items, of $0.38 per diluted share for the quarter
and $1.49 per diluted share for the year ended December 31,
2015
- Increased occupancy 30 basis points
from September 30, 2015 and 170 basis points from December 31,
2014
- Reduced weighted average interest rate
on overall borrowings to 4.03% at December 31, 2015
- Sold approximately $550 million in
properties during the year, primarily located in non-strategic
markets
- Acquired approximately $200 million of
properties and developable land during the year in target markets
and submarkets of Austin, Texas and Dallas, Texas
“2015 was a significant year for TIER REIT and its stockholders.
In addition to listing our common stock on the New York Stock
Exchange, we internalized property management and all remaining
administrative functions, increased occupancy, and reduced leverage
and borrowing costs while balancing our debt maturity schedule. We
believe we have made substantial progress in positioning the
Company as a premier office REIT,” stated Scott Fordham, Chief
Executive Officer and President of TIER REIT.
Mr. Fordham continued, “Looking ahead, our strategy for 2016 is
to further monetize non-strategic properties and reduce our
leverage while staying focused on leasing and occupancy. Known
lease expirations will result in downward pressure on occupancy
during the first half of the year, which we believe we can work to
overcome in the second half through positive leasing momentum
within the portfolio. In short, we will continue to work diligently
to capitalize on future internal and external growth opportunities
and deliver upon our goal of providing outsized stockholder returns
over the long-term.”
Fourth Quarter and Full Year 2015 Financial Results
NAREIT-defined FFO attributable to common stockholders for the
quarter ended December 31, 2015, was $17.4 million, or $0.37
per diluted share, as compared to $3.1 million, or $0.06 per
diluted share, for the quarter ended December 31, 2014. FFO
attributable to common stockholders, excluding certain items, for
the quarter ended December 31, 2015, was $18.0 million, or
$0.38 per diluted share, as compared to $19.8 million, or $0.40 per
diluted share, for the quarter ended December 31, 2014.
In the fourth quarter of 2015, NAREIT-defined FFO attributable
to common stockholders, as well as FFO attributable to common
stockholders, excluding certain items, included a previously
announced charge of $0.06 per diluted share related to the
transition from an arrears-based equity incentive program to a new,
forward-looking, multi-year, long-term equity incentive program
that is principally based on the Company's total stockholder return
performance on an absolute and relative basis.
Net loss attributable to common stockholders was $11.2 million,
or $0.24 per diluted share for the quarter ended December 31,
2015, as compared to net income attributable to common stockholders
of $45.8 million, or $0.92 per diluted share, for the quarter ended
December 31, 2014.
NAREIT-defined FFO attributable to common stockholders for the
year ended December 31, 2015, was $35.1 million, or $0.71 per
diluted share, as compared to $53.7 million, or $1.07 per diluted
share, for the year ended December 31, 2014. FFO attributable to
common stockholders, excluding certain items, for the year ended
December 31, 2015, was $73.4 million, or $1.49 per diluted share,
as compared to $71.4 million, or $1.43 per diluted share, for the
year ended December 31, 2014.
Net loss attributable to common stockholders was $32.1 million,
or $0.66 per diluted share, for the year ended December 31, 2015,
as compared to net income attributable to common stockholders of
$17.4 million, or $0.35 per diluted share, for the year ended
December 31, 2014.
FFO attributable to common stockholders, excluding certain
items, excludes costs associated with acquisition
expenses, loss on early extinguishment of debt, default interest,
and accretion/(dilution) of the Series A Convertible Preferred
Stock, as well as non-recurring items, such as fees paid to
terminate third party property management and administrative
services and costs associated with listing the Company’s shares of
common stock on the NYSE and the related tender offer.
Leasing Update
Occupancy at the Company’s properties was 89.7% at December 31,
2015, as compared to occupancy of 88.0% at December 31, 2014.
During the fourth quarter of 2015, the Company leased 267,000
square feet, which included 118,000 square feet of renewals, 46,000
square feet of expansion space, and 103,000 square feet of new
leasing. During the full year 2015, the Company leased 1.8 million
square feet, which included 1.1 million square feet of renewals,
246,000 square feet of expansion space, and 480,000 square feet of
new leasing.
Acquisitions, Dispositions & Development
On November 30, 2015, Paces West was sold for a total contract
sales price of approximately $112.5 million by a joint venture in
which the Company owns a non-controlling 10% interest, resulting in
the Company recognizing a gain on sale of approximately $3.4
million. Also in the fourth quarter, the Company sold components of
its acquisition at The Domain in Austin, Texas that were
non-strategic, including an interest in a multifamily residential
property for $15.0 million and unimproved land to accommodate a
hotel for approximately $4.3 million.
The Company owned 35.6 acres of developable land at December 31,
2015 that can accommodate up to 2.7 million square feet of future
office development. The Company is in the pre-leasing and early
design phases for select development sites located in Austin and
Plano, Texas, with plans to prudently proceed with projects subject
to market demands and certain pre-leasing requirements.
During the fourth quarter of 2015, a joint venture between the
Company and a third party commenced development of an approximately
291,000 square foot office property located at The Domain in
Austin, Texas. Development of the property is expected to be
completed in the first quarter of 2017.
Financing and Capital Markets Activity
During the fourth quarter of 2015, the Company paid off $5.4
million of debt maturing in 2015 secured by the Wanamaker Building
and paid off $46.8 million of debt maturing in 2016 secured by the
Woodcrest Corporate Center property. Additionally, as of December
31, 2015, the Company believes it met certain financial covenants
for two consecutive quarters that will enable its secured credit
facility to convert to an unsecured structure.
The Company’s weighted average interest rate, including
unconsolidated and held-for-sale debt, decreased 131 basis points
during the year, from 5.34% at December 31, 2014 to 4.03% at
December 31, 2015.
Distributions
For the fourth quarter of 2015, the Company’s board of directors
authorized a distribution in the amount of $0.18 per share on its
common stock to stockholders of record as of the close of business
on December 30, 2015, which was paid on January 8, 2016.
On February 11, 2016, the Company’s board of directors
authorized a distribution for the first quarter of 2016 in the
amount of $0.18 per share on its common stock to stockholders of
record as of the close of business on March 31, 2016, payable on
April 8, 2016.
2016 Outlook
The Company initiated its 2016 outlook for NAREIT-defined FFO,
as well as FFO, excluding certain items, at $1.51 to $1.57 per
diluted share. This outlook reflects management’s view of current
and future market conditions, including assumptions such as
disposition activity, rental rates, occupancy levels, operating and
general and administrative expenses, weighted average diluted
shares outstanding, and interest rates. This outlook does not
include any effects related to potential acquisitions.
The Company’s 2016 outlook includes the following
assumptions:
- $200 million to $400 million of
dispositions of non-strategic properties
- Same Store Cash net operating income
(“NOI”) growth, excluding lease terminations, of 1.0% to 3.0%
- Same Store GAAP NOI growth, excluding
lease terminations, of 1.0% to 3.0%
- Lease termination fees of $1.0 million
to $2.0 million
- Straight line rent and lease incentive
revenue of $11.0 million to $13.0 million
- Above- and below-market rent
amortization of $4.4 million to $5.0 million
- General and administrative expenses of
$23.5 million to $24.5 million
- Year-end occupancy of 89.5% to
90.5%
- Weighted average of 47.9 million shares
of common stock outstanding
Supplemental Information
A copy of the Company’s supplemental information regarding its
financial results and operations for the quarter ended December 31,
2015, is available in the “Investor Relations” section of the
Company’s website at www.tierreit.com. A copy may also be obtained
by contacting the Investor Relations department by email to
ir@tierreit.com.
Conference Call
A conference call will be held on Tuesday, February 16, 2016, at
2:00 PM Eastern time/ 1:00 PM Central time. TIER REIT will host the
conference call to discuss matters related to the Company’s
financial results and operating performance, as well as business
highlights and outlook. In addition, the Company may discuss
business and financial developments and trends and other matters
affecting the Company, some of which may not have been previously
disclosed. A live audio webcast can be accessed through the
Company’s website at www.tierreit.com under the “Investor
Relations” section. A replay of the call will also be available on
the website for 30 days.
To Participate in the Telephone Conference CallDial in at
least five minutes prior to start time.Domestic Call-In
Number: 877.407.0789International Call-In Number:
201.689.8562
Conference Call PlaybackCall-in Number:
877.870.5176International: 858.384.5517Passcode: 13629622The audio
playback can be accessed through March 1, 2016.
About TIER REIT, Inc.
TIER REIT, Inc. is a self-managed, Dallas-based real estate
investment trust focused on maximizing total return to stockholders
through the combination of stock appreciation and income derived
from a sustainable distribution. TIER REIT’s investment strategy is
to acquire, develop and operate a portfolio of best-in-class office
properties in select U.S. markets that consistently lead the nation
in both population and office-using employment growth. For
additional information regarding TIER REIT, please visit
www.tierreit.com or call 972.483.2400.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws relating to the business
and financial outlook of TIER REIT that are based on our current
expectations, estimates, forecasts and projections and are not
guarantees of future performance. These forward-looking statements
include discussion and analysis of the financial condition of us
and our subsidiaries, including our ability to rent space on
favorable terms, our ability to address debt maturities and fund
our capital requirements, our intentions to sell certain
properties, our intentions with respect to development activity,
the value of our assets, our anticipated capital expenditures, the
amount and timing of any anticipated future cash distributions to
our stockholders, and other matters. Words such as “may,” "will,"
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” “would,” “could,” “should,” “objectives,”
“strategies,” “goals,” and variations of these words and similar
expressions are intended to identify forward-looking
statements.
Actual results may differ materially from those expressed in
these forward-looking statements, and you should not place undue
reliance on any such statements. Factors that could cause actual
results to vary materially from those expressed in forward-looking
statements include changes in real estate conditions and in the
capital markets, as well as the risk factors included in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2015.
Forward-looking statements in this press release speak only as of
the date on which such statements were made and, except as required
by law, we undertake no obligation to update any such statements
that may become untrue because of subsequent events.
TIER REIT, Inc.
Condensed Consolidated Balance Sheets (in thousands,
except share and per share amounts)
December 31,2015
December 31,2014
Assets Real estate Land $ 179,989 $ 286,430 Land held
for development 45,059 — Buildings and improvements, net
1,348,200 1,482,336
Total real estate
1,573,248 1,768,766 Cash and cash equivalents 12,248 31,442
Restricted cash 10,712 35,324 Accounts receivable, net 76,228
83,380 Prepaid expenses and other assets 6,712 7,129 Investments in
unconsolidated entities 88,998 39,885 Deferred financing fees, net
11,965 10,783 Lease intangibles, net 83,548 94,690 Other intangible
assets, net 10,086 2,144 Assets associated with real estate held
for sale — 137,640
Total assets
$ 1,873,745 $ 2,211,183
Liabilities and
equity Liabilities Notes payable $ 1,080,425 $
1,194,085 Accounts payable 831 2,790 Payables to related parties
292 2,041 Acquired below-market leases, net 11,934 16,984
Distributions payable 8,596 — Accrued liabilities 70,766 77,375
Other liabilities 23,082 21,405 Obligations associated with real
estate held for sale — 108,343
Total
liabilities 1,195,926 1,423,023
Commitments and contingencies Series A
Convertible Preferred Stock 2,700 4,626
Equity
Preferred stock, $.0001 par value per share; 17,490,000 shares
authorized, none outstanding — — Convertible stock, $.0001 par
value per share; 1,000 shares authorized, none outstanding — —
Common stock, $.0001 par value per share; 382,499,000 shares
authorized, 47,362,372 and 49,877,350 shares issued and outstanding
at December 31, 2015 and 2014, respectively (1) 5 5 Additional
paid-in capital (1) 2,600,193 2,645,927 Cumulative distributions
and net loss attributable to common stockholders (1,922,721 )
(1,862,555 ) Accumulated other comprehensive loss (3,860 )
(788 )
Stockholders’ equity 673,617
782,589
Noncontrolling interests 1,502
945
Total equity 675,119
783,534
Total liabilities and equity $
1,873,745 $ 2,211,183
_______________________
(1) Amounts have been adjusted
retroactively to reflect a one-for-six reverse stock split effected
on June 2, 2015.
TIER REIT, Inc.
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) (in thousands, except share and
per share amounts) Three Months Ended Year
Ended
December 31,2015
December 31,2014
December 31,2015
December 31,2014
Rental revenue $ 67,085 $ 74,616 $ 282,365
$ 288,067
Expenses Property operating expenses
21,812 24,358 89,158 95,456 Interest expense 12,707 17,254 57,454
67,374 Real estate taxes 8,622 9,944 40,134 41,472 Property
management fees 249 2,198 5,028 8,678 Asset impairment losses —
4,940 132 13,165 General and administrative 8,934 5,242 44,941
19,058 Depreciation and amortization 30,182
31,682 122,731 119,670
Total
expenses 82,506 95,618
359,578 364,873 Interest and other income 257
81 810 513 Loss on early extinguishment of debt (24 )
(426 ) (21,502 ) (426 )
Loss from continuing
operations before income taxes, equity in operations of
investments, and gain on sale of assets (15,188 ) (21,347 )
(97,905 ) (76,719 ) Benefit (provision) for income taxes (209 ) 73
(1,507 ) 28 Equity in operations of investments 3,829
522 3,982 1,836
Loss
from continuing operations before gain on sale of assets
(11,568 ) (20,752 ) (95,430 ) (74,855 )
Discontinued operations Income (loss) from discontinued
operations 17 (17,634 ) 1,407 (30,894 ) Gain on sale or transfer of
discontinued operations 297 86,195
15,383 90,221
Discontinued
operations 314 68,561 16,790
59,327 Gain (loss) on sale of assets (2
) — 44,477 —
Net
income (loss) (11,256 ) 47,809 (34,163 ) (15,528 )
Noncontrolling interests in continuing operations 41 41 159 132
Noncontrolling interests in discontinued operations (1 ) (118 ) (30
) (120 ) Dilution (accretion) of Series A Convertible Preferred
Stock — (1,926 ) 1,926
(1,926 )
Net income (loss) attributable to common
stockholders $ (11,216 ) $ 45,806 $ (32,108 ) $ (17,442
)
Basic and diluted weighted average common shares outstanding
(1) 47,244,471 49,877,350 48,960,393 49,875,899
Basic and
diluted income (loss) per common share: (1) Continuing
operations $ (0.24 ) $ (0.45 ) $ (1.00 ) $ (1.54 ) Discontinued
operations — 1.37 0.34
1.19
Basic and diluted income (loss) per common
share $ (0.24 ) $ 0.92 $ (0.66 ) $ (0.35 )
Distributions declared per common share (1) $ 0.18 $
— $ 0.54 $ —
Net income (loss)
attributable to common stockholders: Continuing operations $
(11,529 ) $ (22,637 ) $ (48,868 ) $ (76,649 ) Discontinued
operations 313 68,443 16,760
59,207
Net income (loss) attributable to
common stockholders $ (11,216 ) $ 45,806 $ (32,108 ) $
(17,442 )
Comprehensive income (loss): Net income (loss) $
(11,256 ) $ 47,809 $ (34,163 ) $ (15,528 ) Other comprehensive
income (loss): unrealized gain (loss) on interest rate derivatives
6,299 (789 ) (3,077 ) (789 ) Dilution (accretion) of Series A
Convertible Preferred Stock — (1,926 )
1,926 (1,926 )
Comprehensive income (loss)
(4,957 ) 45,094 (35,314 ) (18,243 ) Comprehensive (income) loss
attributable to noncontrolling interests 29
(76 ) 134 13
Comprehensive income
(loss) attributable to common stockholders $ (4,928 ) $ 45,018
$ (35,180 ) $ (18,230 )
__________________________
(1) Amounts have been adjusted
retroactively to reflect a one-for-six reverse stock split effected
on June 2, 2015.
Calculation of FFO and FFO, excluding certain
items (in thousands, except per share amounts)
Three Months Ended
Year Ended
December 31,2015
December 31,2014
December 31,2015
December 31,2014
Net income (loss) $ (11,256 ) $ 47,809 $ (34,163 ) $ (15,528 ) Net
(income) loss attributable to noncontrolling interests 40 (77 ) 129
12 Dilution (accretion) of Series A Convertible Preferred Stock —
(1,926 ) 1,926 (1,926 )
Adjustments
(1):
Real estate depreciation and amortization from consolidated
properties 29,910 37,181 122,230 143,168 Real estate depreciation
and amortization from unconsolidated properties 2,427 1,307 6,985
5,161 Real estate depreciation and amortization - noncontrolling
interests (10 ) — (20 ) — Impairment of depreciable real estate
assets — 4,940 132 13,165 Gain on sale of depreciable real estate
(3,698 ) (86,195 ) (63,263 ) (90,221 ) Taxes associated with sale
of depreciable real estate — — 1,259 — Noncontrolling interests (OP
units and vested restricted stock units) share of above adjustments
(50 ) 68 (116 ) (117 ) FFO
attributable to common stockholders 17,363 3,107 35,099 53,714
Acquisition expenses 26 86 1,863 90 Tender offer and listing costs
(27 ) 104 5,526 104 Loss on early extinguishment of debt 31 14,616
21,606 15,562 Non-cash default interest 625 — 980 — BHT Advisors
termination fee and HPT Management buyout fee — — 10,301 —
Noncontrolling interests (OP units and vested restricted stock
units) share of above adjustments (1 ) (24 ) (70 ) (25 ) Accretion
(dilution) of Series A Convertible Preferred Stock —
1,926 (1,926 ) 1,926 FFO
attributable to common stockholders, excluding certain items $
18,017 $ 19,815 $ 73,379 $ 71,371
Weighted average common shares outstanding - basic (2)
47,244 49,877 48,960 49,876 Weighted average common shares
outstanding - diluted (2) (3) 47,436 49,996 49,148 50,001
Net income (loss) per common share - basic and diluted (2) (3) $
(0.24 ) $ 0.92 $ (0.66 ) $ (0.35 ) FFO per common share - diluted
(2) $ 0.37 $ 0.06 $ 0.71 $ 1.07 FFO, excluding certain items, per
common share - diluted (2) $ 0.38 $ 0.40 $ 1.49 $ 1.43
_______________________
(1) Reflects the adjustments of continuing
operations, as well as discontinued operations.
(2) Amounts have been adjusted retroactively to reflect a
one-for-six reverse stock split effected on June 2, 2015. (3) There
are no dilutive securities for purposes of calculating the net
income (loss) per common share.
Non-GAAP Supplemental Financial Measures
We compute our financial results in accordance with generally
accepted accounting principles (GAAP). Although Funds from
Operations and Funds from Operations, excluding certain items, are
non-GAAP financial measures, we believe that these calculations are
helpful to stockholders and potential investors and are widely
recognized measures of real estate investment trust performance. We
have provided a reconciliation of the non-GAAP financial measures
to the most directly comparable GAAP measure in tables included in
this press release.
Funds from Operations (“FFO”)
Historical cost accounting for real estate assets in accordance
with GAAP implicitly assumes that the value of real estate
diminishes predictably over time. Since real estate values have
historically risen or fallen with market conditions, many industry
investors and analysts have considered the presentation of
operating results for real estate companies that use historical
cost accounting alone to be insufficient for evaluating operating
performance. FFO is a non-GAAP financial measure that is widely
recognized as a measure of a REIT’s operating performance. We use
FFO as defined by the National Association of Real Estate
Investment Trusts (NAREIT) in the April 2002 “White Paper on
Funds From Operations” which is net income (loss), computed in
accordance with GAAP, excluding extraordinary items, as defined by
GAAP, gains (or losses) from sales of property and impairments of
depreciable real estate (including impairments of investments in
unconsolidated entities which resulted from measurable decreases in
the fair value of the depreciable real estate held by the
unconsolidated entity), plus depreciation and amortization of real
estate assets, and after related adjustments for unconsolidated
entities and noncontrolling interests. The determination of whether
impairment charges have been incurred is based partly on
anticipated operating performance and hold periods. Estimated
undiscounted cash flows from a property, derived from estimated
future net rental and lease revenues, net proceeds on the sale of
the property, and certain other ancillary cash flows, are taken
into account in determining whether an impairment charge has been
incurred. While impairment charges for depreciable real estate are
excluded from net income (loss) in the calculation of FFO as
described above, impairments reflect a decline in the value of the
applicable property which we may not recover.
We believe that the use of FFO, together with the required GAAP
presentations, is helpful in understanding our operating
performance because it excludes real estate-related depreciation
and amortization, gains and losses from property dispositions,
impairments of depreciable real estate assets, and extraordinary
items, and as a result, when compared period to period, reflects
the impact on operations from trends in occupancy rates, rental
rates, operating costs, development activities, general and
administrative expenses, and interest costs, which are not
immediately apparent from net income. Factors that impact FFO
include fixed costs, yields on cash held in accounts, income from
portfolio properties and other portfolio assets, interest rates on
debt financing, and operating expenses.
We also evaluate FFO, excluding certain items. The items
excluded relate to certain non-operating activities or certain
non-recurring activities that create significant FFO volatility. We
believe it is useful to evaluate FFO excluding these items because
it provides useful information in analyzing comparability between
reporting periods and in assessing the sustainability of our
operating performance.
FFO and FFO, excluding certain items, should not be considered
as alternatives to net income (loss), or as indicators of our
liquidity, nor are they indicative of funds available to fund our
cash needs, including our ability to make distributions.
Additionally, the exclusion of impairments limits the usefulness of
FFO and FFO, excluding certain items, as historical operating
performance measures since an impairment charge indicates that
operating performance has been permanently affected. FFO and FFO,
excluding certain items, are not useful measures in evaluating net
asset value because impairments are taken into account in
determining net asset value but not in determining FFO and FFO,
excluding certain items. FFO and FFO, excluding certain items, are
non-GAAP measurements and should be reviewed in connection with
other GAAP measurements. Our FFO and FFO, excluding certain items,
as presented may not be comparable to amounts calculated by other
REITs that do not define FFO in accordance with the current NAREIT
definition, or interpret it differently, or that identify and
exclude different items related to non-operating activities or
certain non-recurring activities.
Net Operating Income (“NOI”)
NOI is a non-GAAP financial measure equal to rental revenue,
less property operating expenses (excluding tenant improvement
demolition costs), real estate taxes, and property management
expenses. Our management uses NOI internally as a performance
measure and believes NOI is useful to investors as a performance
measure because NOI reflects only those income and expense items
that are incurred at the property level and is therefore a useful
measure for evaluating a property’s performance. Using NOI on a
comparative basis allows investors to evaluate property level
performance to compare the operating performance of our properties
in a given market with the operating performance of other real
estate companies in the same market, and consequently allocate
their own investment capital accordingly.
Further, we use NOI internally as a performance measure and
believe NOI is useful to investors as a performance measure
because, when compared year over year, NOI reflects the impact on
operations from trends in occupancy rates, rental rates, operating
costs, acquisition and development activities, and general and
administrative expenses on an un-leveraged basis, providing
perspective not immediately apparent from net income. NOI excludes
certain components from net income in order to provide results that
are more closely related to a property’s results of operations.
Certain items such as interest expense, while included in net
income, do not affect the operating performance of a real estate
asset and are often incurred at the corporate level as opposed to
the property level. In addition, it is useful to our management and
investors that depreciation and amortization are excluded from NOI
because historical cost accounting for real estate assets
implicitly assumes that the value of real estate assets diminishes
predictably over time, and, instead, real estate values have
historically risen or fallen with market conditions.
NOI presented by us may not be comparable to NOI reported by
other REITs that do not define NOI exactly as we do. We believe
that in order to facilitate a clear understanding of our operating
results, NOI should be examined in conjunction with net income as
presented in our consolidated financial statements and notes
thereto. NOI should not be considered as an alternative to net
income as an indication of our performance or to cash flows as a
measure of liquidity or our ability to make distributions.
Same Store GAAP NOI and Same Store Cash NOI
Same Store GAAP NOI is equal to rental revenue, less lease
termination fee income, property operating expenses (excluding
tenant improvement demolition costs), real estate taxes, and
property management expenses for our same store properties and is
considered a non-GAAP financial measure. Same Store Cash NOI is
equal to Same Store GAAP NOI less non-cash revenue items including
straight-line rent adjustments and the amortization of above- and
below-market rent. The same store properties include our operating
office properties owned and operated for the entirety of the
current and comparable periods and include our current ownership
percentage in each period for properties in which we own an
unconsolidated interest. We view Same Store GAAP NOI and Same Store
Cash NOI as important measures of the operating performance of our
properties because they allow us to compare operating results of
properties owned and operated for the entirety of the current and
comparable periods and therefore eliminate variations caused by
acquisitions or dispositions during the periods under review.
Same Store GAAP NOI and Same Store Cash NOI presented by us may
not be comparable to Same Store GAAP NOI or Same Store Cash NOI
reported by other REITs that do not define Same Store GAAP NOI or
Same Store Cash NOI exactly as we do. We believe that in order to
facilitate a clear understanding of our operating results, Same
Store GAAP NOI and Same Store Cash NOI should be examined in
conjunction with net income (loss) as presented in our consolidated
financial statements and notes thereto. Same Store GAAP NOI and
Same Store Cash NOI should not be considered as alternatives to net
income (loss) as an indication of our performance or to cash flows
as a measure of liquidity or our ability to make distributions.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160216005596/en/
TIER REIT, Inc.Scott McLaughlin,
972-483-2465smclaughlin@tierreit.com
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