NEWTOWN SQUARE, Pa., Feb. 28 /PRNewswire-FirstCall/ -- GMH
Communities Trust (NYSE:GCT), one of the leading providers of
housing, lifestyle and community solutions for college students and
members of the U.S. military and their families, today reported
results for the 2007 fourth quarter and year ended December 31,
2007. Results of Operations The Company reported net income of $2.8
million for the fourth quarter of 2007, or $0.07 per diluted share,
as compared to a net loss of $1.3 million, or ($0.03) per diluted
share, for the same period the prior year. Funds from operations
(FFO) for the fourth quarter of 2007 were $15.6 million, or $0.22
per diluted share, compared to $9.8 million, or $0.13 per diluted
share, for the fourth quarter of 2006. The Company had 71,208,439
weighted-average diluted common shares and units of limited
partnership interests outstanding for the 2007 fourth quarter. For
the year ended December 31, 2007, the Company reported net income
of $31.4 million, or $0.76 per diluted share, as compared to a net
loss of $5.0 million, or ($0.12) per diluted share, for the year
ended December 31, 2006. FFO for the year ended December 31, 2007
was $48.5 million, or $0.67 per diluted share, compared with $34.1
million, or $0.47 per diluted share, for the full year 2006. The
Company had 72,508,608 weighted-average diluted common shares and
units of limited partnership interest outstanding for the year
ended December 31, 2007. Net income and FFO for the three months
and year ended December 31, 2007 included a gain of approximately
$1.5 million, or $0.02 per diluted share, relating to the sale of
development land, and $383,000, or $0.01 per diluted share,
relating to insurance recoveries from the Company's class
action/securities litigation. Net income and FFO for the year ended
December 31, 2007 were impacted by charges totaling $1.8 million,
or $(0.03) per diluted share, relating to the Company's settlement
of its class action/securities litigation. Net income from
continuing operations for the three months ended December 31, 2007
was $2.9 million, or $0.07 per diluted share, as compared to a net
loss of $1.7 million, or $(0.04) per diluted share, for the
comparable quarter in the prior year. Net income from our
continuing operations for the year ended December 31, 2007 was
$13.5 million, or $0.33 per diluted share, as compared to a net
loss of $6.0 million, or $(0.14) per diluted share, for the year
ended December 31, 2006. Net income from continuing operations for
the three months and year ended December 31, 2007 included
insurance recoveries relating to class action/securities litigation
and gain on the sale of development land referred to in the
preceding paragraph. Adjusted net income and adjusted net income
from continuing operations for the fourth quarter was approximately
$2.0 million, or $0.05 per diluted share, and $2.1 million, or
$0.05 per diluted share, respectively, representing net income
before approximately $1.5 million ($0.8 million, net of minority
interest) in gain resulting from the sale of development land
during the three months ended December 31, 2007. Adjusted EBITDA,
representing net income (loss) from continuing operations before
minority interest, interest expense, income taxes, depreciation and
amortization, gain on sale of development land, insurance
recoveries relating to securities litigation and Audit/Special
Committee expenses, totaled $30.9 million for the fourth quarter of
2007, as compared to $29.2 million for the comparable quarter last
year, representing an increase of $1.7 million or 5.8%. Adjusted
net income for the year ended December 31, 2007 was $0.9 million,
or $0.02 per diluted share, representing net income before $53.7
million ($30.5 million, net of minority interest) in gain resulting
from the sale of development land and student housing properties to
third parties and the sale of student housing properties to joint
ventures during the year ended December 31, 2007. Adjusted net loss
from continuing operations for the year ended December 31, 2007 was
$300,000, or $(0.01) per diluted share, representing net loss
before gain from the sales of student housing properties to joint
ventures and development land. Adjusted EBITDA, representing net
income (loss) from continuing operations before minority interest,
interest expense, income taxes, depreciation and amortization, gain
on sales to joint ventures and the sale of land, insurance
recoveries relating to securities litigation and Audit/Special
Committee expenses, totaled $115.4 million for the twelve months
ended December 31, 2007, as compared to $93.9 million for the year
ended December 31, 2006, representing an increase of $21.5 million
or 22.9%. The financial tables and schedules accompanying this
press release contain reconciliations of each of (i) FFO, adjusted
net income (loss), adjusted net income (loss) from continuing
operations, and adjusted EBITDA to net income (loss) from
continuing operations, the most directly comparable GAAP measure,
and (ii) FFO per diluted share and adjusted net income (loss) per
diluted share to earnings (loss) per diluted share, the most
directly comparable GAAP measure. Business Segment Review for 2007
Fourth Quarter and Year End Student Housing Owned Properties
Segment -- Net income from continuing operations relating to the
Company's student housing owned properties segment was $317,000,
based on total revenue from continuing operations of $47.1 million
during the fourth quarter of 2007, as compared with a net loss from
continuing operations during the comparable quarter last year of
$(321,000), based on total revenues from continuing operations of
$50.7 million. -- Total revenues for same store properties,
representing 52 properties owned during the three months ended
December 31, 2007 and 2006, remained constant at $33.0 million as
compared with the prior year period; while total property operating
expenses increased $232,000, or 1.5%, to $16.2 million. -- Total
revenues for same store properties, representing 43 properties
owned during the year ended December 31, 2007 and 2006, remained
constant at $132.0 million, as compared with the prior year; while
total property operating expenses increased by $735,000, or 1.1%,
to $66.3 million. -- During the fourth quarter of 2007, the Company
acquired 13 parcels of land located in Amherst, NY, aggregating
22-acres for development of a student housing property, for a
purchase price of approximately $6.8 million. Also during the
quarter, the Company sold these land parcels to American Campus
Communities, Inc., resulting in a net gain on the sale of
approximately $1.5 million. -- As of February 26, 2008, pre-lease
occupancy for the Company's portfolio for the Fall 2008 academic
year was approximately 41% compared to approximately 40% at the
same time last year. At year end, the Company owned, or had
ownership interests in, 72 student housing properties containing a
total of 13,232 units and 42,670 beds and seven undeveloped or
partially developed parcels of land held for development as student
housing properties. This portfolio included eight properties
containing a total of 1,140 units and 4,160 beds in which the
Company held a 10% interest through joint ventures with third
parties, and for which the Company provides management services. In
addition to properties held through joint ventures, the Company
currently manages a total of 12 student housing properties owned by
others, containing a total of 2,239 units and 7,156 beds, including
48 units and 262 beds under construction. Military Housing Segment
-- On October 1, 2007, the military housing division commenced
operations for its Navy Southeast Region project. Project financing
was completed in November 2007, at which time development,
construction and renovation of family housing for the project
commenced. The project has initial development period (IDP) costs
of approximately $690 million, making this project one of the
largest public-private venture housing initiatives to date and
covering approximately 5,269 end-state housing units. -- On
November 1, 2007, the military housing division finalized
agreements for its Vandenberg Air Force Base project located in
Lompoc, CA. The 50-year term of the project commences with a
five-year IDP that includes the design, construction and/or
renovation, as well as the overall management, maintenance and
operational responsibilities for 867 end-state housing units, with
IDP costs of approximately $163 million. -- During the fourth
quarter of 2007 the Company announced that it had been selected as
the Highest Ranked Offeror (HRO) by the Department of the Air Force
for its AMC West project, with estimated IDP costs in excess of
$400 million and covering an estimated 2,435 end-state housing
units. -- As of December 31, 2007, the Company earned fees for
providing development, construction, renovation and management
services on 12 military housing projects, encompassing 37 military
bases with an aggregate of 25,288 end-state housing units. -- Net
income relating to the military housing segment for the three
months ended December 31, 2007 was $9.2 million, based on total
revenue of $13.4 million (net of $33.8 million of expense
reimbursements), as compared with net income of $5.5 million for
the same quarter last year, based on total revenue of $8.0 million
(net of $15.7 million in expense reimbursements). Net income
relating to the military housing segment for the year ended
December 31, 2007 was $28.6 million, based on total revenue of
$41.1 million (net of $85.1 million of expense reimbursements), as
compared with net income of $21.7 million for the year ended
December 31, 2006, based on total revenue of $30.1 million (net of
$63.6 million in expense reimbursements). During the first quarter
of 2008, the Company also announced that it had finalized
agreements with the Army to be the private sector developer for the
unaccompanied personnel housing (UPH) at Fort Stewart located in
Hinesville, Georgia. The project is coterminous with the existing
50-year ground lease relating to the Company's Fort Stewart/Hunter
family housing project and commences with a two-year IDP that
includes design, construction, management, maintenance and
operational responsibilities for an estimated 334 end-state housing
units with project costs of approximately $37.0 million. The
Company also is in active negotiations to finalize the acquisition
of its interest in the Fort Jackson and West Point projects with
the Army, and the AMC West project with the Air Force. The Fort
Jackson and AMC West projects are expected to commence operations
during the second quarter, and the West Point project during the
third quarter of 2008. Announcement of Sale of Company As reported
on February 12, 2008, GMH Communities Trust has entered into a
securities purchase agreement with a U.S. subsidiary of Balfour
Beatty plc for the sale of the Company's military housing division,
and a merger agreement with American Campus Communities, Inc.
relating to the acquisition of the student housing division. The
Company expects the transactions contemplated under these
agreements to be completed during the second quarter of 2008.
Conference Call Management will not be conducting its conference
call previously scheduled for February 29, 2008 due to the recently
announced pending sale of the Company. Supplemental Information The
Company will produce a supplemental information package that
provides details regarding its operating performance, investing
activities and overall financial position for the 2007 fourth
quarter and year end. A copy of this supplemental information
package will be available on the Company's website at
http://www.gmhcommunities.com/ under the Investor Relations
section. Non-GAAP Financial Measures This press release contains
non-GAAP ("Generally Accepted Accounting Principles") information
that is generally provided by most publicly traded REITs and that
we believe may be of interest to the investment community.
Reconciliations of all non-GAAP financial measures to GAAP
financial measures are included in a schedule accompanying this
press release. About GMH Communities Trust GMH Communities Trust
("GMH") (http://www.gmhcommunities.com/) is a publicly- traded
Maryland real estate investment trust (REIT). We are a
self-advised, self- managed, specialty housing company focused on
providing housing to college and university students residing
off-campus and to members of the U.S. military and their families
residing on or near bases throughout the United States. GMH also
provides property management services to third- party owners of
student housing properties, including colleges, universities, and
other private owners. The Company, based in Newtown Square, PA,
employs more than 2,200 people throughout the United States. "Safe
Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release that are based on our
current expectations, estimates and projections about future events
and financial trends affecting us are "forward-looking statements."
Forward- looking statements can be identified by the use of words
such as "may," "will," "should," "expect," "estimate" or other
comparable terminology. These statements are inherently subject to
risks and uncertainties, including the risks relating to our
business presented in our filings with the Securities and Exchange
Commission. Forward-looking statements are made as of the date of
this press release, and we undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise. Additional
Information and Where to Find It This press release does not
constitute an offer of any securities for sale. In connection with
the merger, American Campus Communities, Inc. ("ACC") intends to
file with the SEC a registration statement on Form S-4, which will
include a proxy statement/prospectus of GMH and ACC and other
relevant materials in connection with the proposed transactions.
Investors and security holders of GMH are urged to read the proxy
statement/prospectus and the other relevant material when they
become available because they will contain important information
about GMH, ACC and the proposed transactions. The proxy
statement/prospectus and other relevant materials (when they become
available), and any and all documents filed by GMH or ACC with the
SEC, may be obtained free of charge at the SEC's web site at
http://www.sec.gov/. In addition, investors and security holders
may obtain free copies of the documents filed with the SEC by GMH
by directing a written request to GMH Communities Trust, 10 Campus
Boulevard, Newtown Square, Pennsylvania 19073, Attention: Investor
Relations. Investors and security holders may obtain free copies of
the documents filed with the SEC by ACC by directing a written
request to American Campus Communities, Inc., 805 Las Cimas
Parkway, Suite 400, Austin, Texas 78746 Attention: Investor
Relations. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE
PROXY STATEMENT/PROSPECTUS AND THE OTHER RELEVANT MATERIALS WHEN
THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION WITH RESPECT TO THE PROPOSED TRANSACTIONS. ACC, GMH and
their respective executive officers, directors and trustees may be
deemed to be participants in the solicitation of proxies from the
security holders of GMH in connection with the merger. Information
about those executive officers and directors of ACC and their
ownership of ACC common stock is set forth in the proxy statement
for ACC's 2007 Annual Meeting of Stockholders, which was filed with
the SEC on March 29, 2007. Information about the executive officers
and trustees of GMH and their ownership of GMH common shares is set
forth in the proxy statement for GMH's 2007 Annual Meeting of
Shareholders, which was filed with the SEC on May 8, 2007.
Investors and security holders may obtain additional information
regarding the direct and indirect interests of ACC, GMH and their
respective executive officers, directors and trustees in the Merger
by reading the proxy statement and prospectus regarding the Merger
when they become available. *******Financial Tables Follow *******
See Supplemental Information Package for Additional Financial
Information GMH COMMUNITIES TRUST CONSOLIDATED BALANCE SHEETS (in
thousands, except par value and number of shares) December 31,
December 31, 2007 2006 ASSETS Real estate investments: Student
housing properties $1,419,894 $1,659,422 Accumulated depreciation
(95,830) 66,855 1,324,064 1,592,567 Corporate assets: Corporate
assets 10,142 9,427 Accumulated depreciation (1,582) 1,002 8,560
8,425 Cash and cash equivalents 15,727 22,539 Restricted cash
20,816 16,955 Accounts and other receivables, net: Related party
23,288 17,131 Third party 4,824 2,762 Investments in joint ventures
Military housing projects 70,264 37,987 Student housing properties
1,284 - Deferred contract costs 1,883 2,344 Deferred financing
costs, net 4,338 5,103 Lease intangibles, net 40 2,468 Deposits 629
907 Other assets 13,129 4,802 Total assets $1,488,846 $1,713,990
LIABILITIES AND BENEFICIARIES' EQUITY Notes payable $961,531
$1,028,290 Note facility and line of credit 53,605 199,435 Accounts
payable 10,263 3,213 Accrued expenses 30,448 27,257 Dividends and
distributions payable 11,759 12,077 Liabilities related to assets
held for sale - - Other liabilities 17,738 28,446 Total liabilities
1,085,344 1,298,718 Minority interest 136,422 157,972 Commitments
and contingencies - - Beneficiaries' equity: Common shares of
beneficial interest, $0.001 par value; 500,000,000 shares
authorized, 41,621,594 and 41,567,146 issued and outstanding at
December 31, 2007, and December 31, 2006, respectively 42 42
Preferred shares-100,000,000 shares authorized, no shares issued or
outstanding - - Additional paid-in capital 331,155 325,347
Cumulative earnings 32,755 1,324 Cumulative dividends (96,872)
(69,413) Total beneficiaries' equity 267,080 257,300 Total
liabilities and beneficiaries' equity $1,488,846 $1,713,990 GMH
COMMUNITIES TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except share and per share information) Three months
Three months Year Year ended ended ended ended Dec. 31, Dec. 31,
Dec. 31, Dec. 31, 2007 2006 2007 2006 (unaudited) (unaudited)
(audited) (audited) REVENUE: Rent and other property income $
47,061 $ 50,623 $ 188,889 $ 169,166 Expense reimbursements: Related
party 34,536 15,866 86,860 64,230 Third party 1,971 811 8,942 7,668
Management fees: Related party 3,526 2,210 11,429 8,481 Third party
714 746 2,877 3,167 Other fee income- related party 10,015 5,758
32,790 21,635 Other income 134 296 735 546 Total revenue 97,957
76,310 332,522 274,893 OPERATING EXPENSES: Property operating
expenses 22,632 22,016 90,684 78,878 Reimbursed expenses 36,507
16,677 95,802 71,898 Real estate taxes 4,449 4,521 17,773 16,050
Administrative expenses 4,800 4,548 17,410 17,682 Securities
litigation and Audit/Special Committee expenses (383) 1,123 1,844
7,821 Depreciation and amortization 10,768 11,451 44,679 40,207
Interest 14,524 18,481 61,816 51,752 Total operating expenses
93,297 78,817 330,008 284,288 Income (loss) before equity in
earnings of unconsolidated entities, income taxes, gain on sale to
joint venture and minority interest from continuing operations
4,660 (2,507) 2,514 (9,395) Equity in earnings of unconsolidated
entities 1,375 673 4,524 3,523 Income (loss) from continuing
operations before income taxes, gain on sale to joint venture and
minority interest 6,035 (1,834) 7,038 (5,872) Income tax expense
2,425 1,239 7,616 4,733 Income (loss) before gain on sale to joint
venture and minority interest from continuing operations 3,610
(3,073) (578) (10,605) Gain on sale to joint venture 1,473 - 24,341
- Minority interest (income) loss attributable to continuing
operations (2,170) 1,340 (10,252) 4,625 Net income (loss) from
continuing operations 2,913 (1,733) 13,511 (5,980) Discontinued
Operations: Income from discontinued operations before minority
interest (99) 752 2,125 1,762 Gain on sale of student housing
properties (16) - 29,339 - Minority interest (income) loss
attributable to discontinued operations 49 (312) (13,544) (768)
Income from discontinued operations (66) 440 17,920 994 Net income
(loss) $ 2,847 $ (1,293) $ 31,431 $ (4,986) PER SHARE INFORMATION:
Basic earnings (loss) per common share: Continuing operations $
0.07 $ (0.04) $ 0.33 $ (0.14) Discontinued operations (0.00) 0.01
0.43 0.02 $ 0.07 $ (0.03) $ 0.76 $ (0.12) Basic weighted-average
shares outstanding 41,564,104 41,494,521 41,533,616 40,889,508
Diluted earnings (loss) per common share: Continuing operations $
0.07 $ (0.04) $ 0.33 $ (0.14) Discontinued operations (0.00) 0.01
0.43 0.02 $ 0.07 $ (0.03) $ 0.76 $ (0.12) Diluted weighted-average
shares/units outstanding 71,208,439 73,129,171 72,508,608
73,344,995 GMH COMMUNITIES TRUST CONSOLIDATED STATEMENT OF CASH
FLOWS (in thousands, except share and per share information) 2007
2006 Cash flows from operating activities: Net (loss) income
$31,431 $(4,986) Adjustments to reconcile net (loss) income to net
cash provided by (used in) operating activities from continuing
operations: Minority interest 23,796 (3,857) Gain on sale of
properties to joint venture and land sale (24,341) - Gain on sale
of student housing properties (29,339) - Depreciation 41,832 35,072
Amortization: Lease intangibles 2,267 5,342 Amortization of debt
premium (2,267) (1,958) Deferred loan costs 3,087 3,982 Other
amortization 929 643 Bad debt expense 1,284 2,403 Equity in
earnings of unconsolidated entities in excess of distributions
received (1,800) (904) Changes in operating assets and liabilities:
Restricted cash (3,861) (5,259) Accounts and other receivables
(9,533) (879) Deferred contract costs 462 (1,412) Deposits and
other assets (8,586) 1,496 Accounts payable 7,202 1,687 Accrued
expenses and other liabilities (746) 11,862 Net cash provided by
discontinued operations (513) 3,377 Net cash provided by operating
activities 29,763 46,609 Cash flows from investing activities:
Acquisition of real estate (12,804) (367,308) Disposition of
properties 143,145 - Capitalized expenditures (16,308) (18,547)
Distributions received from unconsolidated entities in excess of
earnings 940 412 Contributions to unconsolidated entities (30,425)
- Discontinued operations (9) (1,343) Net cash provided by (used
in) investing activities 84,539 (386,786) Cash flows from financing
activities: Owner distributions (47,989) (65,748) Redemption of
unit holders (19,674) (45) Proceeds from mortgage notes payable
144,297 256,339 Repayment of mortgage notes payable (49,161)
(4,187) Line of credit borrowings 157,105 327,435 Line of credit
payments (302,933) (164,000) Payment of financing costs (2,571)
(5,011) Discontinued operations (186) 15,693 Net cash provided by
(used in) financing activities (121,114) 360,476 Net increase
(decrease) in cash and cash equivalents (6,812) 20,299 Cash and
cash equivalents, beginning of period 22,539 2,240 Cash and cash
equivalents, end of period $15,727 $22,539 Supplemental information
Real estate acquired by assuming debt including debt premium $-
$47,388 Interest paid $62,828 $51,318 Income taxes paid $6,615
$4,683 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
FINANCIAL MEASURES Funds From Operations Funds from operations, or
FFO, is a widely recognized measure of REIT performance. Although
While FFO is not a GAAP financial measure, we believe that
information regarding FFO is helpful to shareholders and potential
investors. We compute FFO in accordance with standards established
by the National Association of Real Estate Investment Trusts, or
NAREIT, which may not be comparable to FFO reported by other REITs
that do not compute FFO in accordance with the NAREIT definition,
or that interpret the NAREIT definition differently than we do.
NAREIT defines FFO as net income (loss) before minority interest of
unitholders, excluding gains (losses) on sales of depreciable
operating property and extraordinary items (computed in accordance
with GAAP), plus real estate related depreciation and amortization
(excluding amortization of deferred financing costs), and after
adjustment for unconsolidated partnerships and joint ventures. The
GAAP measure that we believe to be most directly comparable to FFO,
net income (loss), includes depreciation and amortization expenses,
gains or losses on property sales and minority interest. In
computing FFO, we eliminate these items because, in our view, they
are not indicative of the results from our property operations. To
facilitate a clear understanding of our historical operating
results, FFO should be examined in conjunction with net income
(determined in accordance with GAAP) as presented in the financial
tables included in the financial statements that we file with the
Securities and Exchange Commission. FFO does not represent cash
generated from operating activities in accordance with GAAP and
should not be considered to be an alternative to net income (loss)
(determined in accordance with GAAP) as a measure of our liquidity,
nor is it indicative of funds available for our cash needs,
including our ability to make cash distributions to shareholders.
Diluted funds from operations per share ("Diluted FFO per share")
Diluted FFO per share, or sometimes referenced as FFO per diluted
share, is (1) FFO adjusted to add back any convertible preferred
share dividends and any other changes in FFO that would result from
the assumed conversion of securities that are convertible or
exchangeable into common shares divided by (2) the sum of the (a)
weighted average common shares outstanding during a period, (b)
weighted average common units outstanding during a period and (c)
weighted average number of potential additional common shares that
would have been outstanding during a period if other securities
that are convertible or exchangeable into common shares were
converted or exchanged. However, the computation of Diluted FFO per
share does not assume conversion of securities that are convertible
into common shares if the conversion of those securities would
increase Diluted FFO per share in a given period. The Company
believes that Diluted FFO per share is useful to investors because
it provides investors with a further context for evaluating its FFO
results in the same manner that investors use earnings per share in
evaluating net income available to common shareholders. In
addition, since most equity REITs provide Diluted FFO per share
information to the investment community, the Company believes
Diluted FFO per share is a useful supplemental measure for
comparing the Company to other equity REITs. The Company believes
that diluted EPS is the most directly comparable GAAP measure to
Diluted FFO per share. Diluted FFO per share, as it is based on
FFO, has most of the same limitations as FFO (described above);
management compensates for these limitations by using the measure
simply as a supplemental measure that is weighed in the balance
with other GAAP and non-GAAP measures. The following table presents
a reconciliation of FFO to net income (loss), and FFO per diluted
share to earnings (loss) per diluted share, for the three and
twelve months ended December 31, 2007 and December 31, 2006 (in
thousands, except for per share data): Three months Three months
Twelve months Twelve months ended ended ended ended December 31,
December 31, December 31, December 31, 2007 2006 2007 2006 FUNDS
FROM OPERATIONS (FFO) Net income (loss) $2,847 $(1,293) $31,431
$(4,986) Add: Minority interest attributable to continuing
operations 2,170 (1,340) 10,252 (4,625) Minority interest
attributable to discontinued operations (49) 312 13,544 768
Depreciation on real property 10,462 11,062 42,189 37,816
Depreciation on unconsolidated joint ventures 147 - 407 -
Amortization of lease intangibles 10 1,055 2,488 5,167 Gain on sale
of properties to joint ventures - - (22,491) - Gain on sale of
student housing properties 16 - (29,339) - FFO $ 15,603 $ 9,796
$48,481 $34,140 FFO per share/unit - basic $0.22 $ 0.13 $ 0.67
$0.47 Weighted-average shares/units outstanding - basic 71,208,439
73,119,138 72,508,608 72,512,791 FFO per share/unit - fully diluted
$0.22 $0.13 $0.67 $0.47 Weighted-average shares outstanding - fully
diluted 71,208,439 73,129,171 72,508,608 73,344,995 EPS - basic
$0.07 $(0.03) $0.76 $(0.12) Weighted-average shares outstanding -
basic 41,564,104 41,494,521 41,533,616 40,889,508 EPS - fully
diluted $0.07 $(0.03) $0.76 $(0.12) Weighted-average shares
outstanding - fully diluted 71,208,439 73,129,171 72,508,608
73,344,995 Adjusted Net Income (Loss), Adjusted Net Income (Loss)
From Continuing Operations and Adjusted EBITDA This press release
includes references to adjusted net income, adjusted net income
(loss) from continuing operations and adjusted EBITDA. Adjusted net
income (loss) represents net income (loss) as adjusted for gain
from sales of student housing properties to third parties and joint
ventures during the second and third quarters of 2007, and gain on
the sale of land held for development during the fourth quarter of
2007. Adjusted net income (loss) from continuing operations
represents net income from continuing operations as adjusted for
gain on sales to joint ventures and the sale of land. We believe
adjusted net income (loss) and adjusted net income (loss) from
continuing operations are useful measures of our operating
performance, as they provide us with a measure of our
profitability, by removing the gains from non-operating activities,
enabling us to analyze our operating performance on a comparable
basis to our competitors, regardless of capital structure. Adjusted
net income (loss) and adjusted net income (loss) from continuing
operations, as calculated by us, may not be comparable to these
measures as reported by other companies that do not define them
exactly as we define the term. Adjusted net income (loss) and
adjusted net income (loss) from continuing operations do not
represent cash generated from operating activities determined in
accordance with GAAP, and should not be considered as an
alternative to operating income or net income determined in
accordance with GAAP as an indicator of performance or as an
alternative to cash flows from operating activities as an indicator
of liquidity. Adjusted EBITDA, a non-GAAP financial measure, is
defined as net income (loss) from continuing operations before
minority interest, interest, income taxes, depreciation and
amortization, gain on sales to joint ventures and the sale of land,
recoveries relating to class action/securities litigation and
Audit/Special Committee expenses. Adjusted EBITDA is a useful
measure of our operating performance, as it provides us with a
measure of our profitability, by removing the impact of our asset
base (primarily depreciation and amortization), non-operating gains
(losses), and the leverage from our operating results, enabling us
to analyze our operating performance on a comparable basis to our
competitors, regardless of capital structure. Adjusted EBITDA, as
calculated by us, may not be comparable to adjusted EBITDA reported
by other companies that do not define adjusted EBITDA exactly as we
define the term. Adjusted EBITDA does not represent cash generated
from operating activities determined in accordance with GAAP, and
should not be considered as an alternative to operating income or
net income determined in accordance with GAAP as an indicator of
performance or as an alternative to cash flows from operating
activities as an indicator of liquidity. The following tables
present reconciliations of net income (loss) and net income (loss)
from continuing operations as adjusted to add back the items
described above for the three months and twelve months ended
December 31, 2007 and December 31, 2006 (in thousands): Adjusted
Net Income (Loss) Three months Twelve months ended ended December
31, Diluted December 31, Diluted 2007 EPS 2007 EPS Net income
(loss) $2,847 $0.07 $31,431 $0.76 (Gain) on sale of properties to
joint venture and development land, net of minority interest (a)
(844) (0.02) (13,850) (0.34) (Gain)/loss on sale of student housing
properties, net of minority interest (b) 9 -- (16,694) (0.40)
$2,012 $0.05 $887 $0.02 (a) Gain on sale to joint venture and
development land is $1,473 less $629 of minority interest for three
months ended Dec 31, 2007, and $24,341 less $10,491 of minority
interest for the twelve months ended Dec 31, 2007. (b) Loss on sale
of student housing properties is ($16) less ($7) of minority
interest for the three months ended Dec 31, 2007, and $29,339 less
$12,645 of minority interest for the twelve months ended Dec 31,
2007. Adjusted Net Income (Loss) From Continuing Operations Three
months Twelve months ended ended December 31, Diluted December 31,
Diluted 2007 EPS 2007 EPS Net income (loss) from continuing
operations $ 2,913 $0.07 $13,511 $0.33 Gain on sale of properties
to joint venture and development land, net of minority interest (a)
(844) (0.02) (13,850) (0.34) $ 2,069 $0.05 $(339) $(0.01) (a) Gain
on sale to joint venture and development land is $1,473 less $629
of minority interest for three months ended Dec 31, 2007, and
$24,341 less $10,491 of minority interest for the twelve months
ended Dec 31, 2007. Adjusted EBITDA Three months ended Twelve
months ended December 31, December 31, 2007 2006 2007 2006 Net
income (loss) from continuing operations $2,913 $(1,733) $13,511
$(5,980) Adjustments: Minority interest from continuing operations
2,170 (1,340) 10,252 (4,625) Gain on sale to joint ventures and
development land (1,473) - (24,341) - Interest expense 14,524
18,481 61,816 51,752 Income taxes 2,425 1,239 7,616 4,733
Depreciation and amortization 10,768 11,451 44,679 40,207 Class
action/securities litigation and Audit/Special Committee expenses
(383) 1,123 1,844 7,821 Adjusted EBITDA $30,944 $29,221 $115,377
$93,908 DATASOURCE: GMH Communities Trust CONTACT: Joe Calabrese,
Financial Relations Board, +1-212-827-3772, for GMH Communities
Trust Web site: http://www.gmhcommunities.com/
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