| |
| (In
thousands) |
2002 |
2001 |
2000 |
 |
| Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
|
| Net
income |
$ |
109,305 |
|
$ |
79,061 |
|
$ |
179,467 |
|
| Adjustments
to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
| Depreciation
and amortization |
|
130,186 |
|
|
127,084 |
|
|
128,542 |
|
| Minority
interest |
|
13,801 |
|
|
9,431 |
|
|
16,149 |
|
| Gain
on sale of assets and other provisions, net |
|
(13,156 |
) |
|
(2,964 |
) |
|
(36,371 |
) |
| Impairment
loss on investments |
|
500 |
|
|
42,249 |
|
|
– |
|
| Obligation
under lease guarantees |
|
8,693 |
|
|
– |
|
|
– |
|
| Equity
in earnings of unconsolidated entities |
|
(7,188 |
) |
|
(9,322 |
) |
|
(7,596 |
) |
| Gain
on sale of discontinued operations |
|
(19,085 |
) |
|
– |
|
|
(32,308 |
) |
| Provision
for uncollectible accounts |
|
7,052 |
|
|
5,498 |
|
|
2,879 |
|
| Stock-based
compensation |
|
4,310 |
|
|
2,630 |
|
|
2,890 |
|
| Other |
|
3,027 |
|
|
330 |
|
|
(2,686 |
) |
| Changes
in assets and liabilities: |
|
|
|
|
|
|
|
|
|
| Decrease
(increase) in accounts receivable |
|
3,989 |
|
|
19,737 |
|
|
(27,973 |
) |
| Increase
in accrued straight-line rents |
|
(9,927 |
) |
|
(13,009 |
) |
|
(9,187 |
) |
| Additions
to tenant leasing costs |
|
(11,240 |
) |
|
(13,418 |
) |
|
(17,050 |
) |
| Increase
in prepaid expenses and other assets |
|
(14,557 |
) |
|
(14,798 |
) |
|
(4,332 |
) |
| Increase
(decrease) in accounts payable and accrued expenses |
|
6,436 |
|
|
(18,508 |
) |
|
(15,796 |
) |
| Increase
in rent received in advance and security deposits |
|
874 |
|
|
3,713 |
|
|
2,426 |
|
|
|
| Total
adjustments |
|
103,715 |
|
|
138,653 |
|
|
(413 |
) |
|
|
| Net
cash provided by operating activities |
|
213,020 |
|
|
217,714 |
|
|
179,054 |
|
|
|
| Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
| Acquisition
and development of rental property |
|
(201,105 |
) |
|
(49,829 |
) |
|
(90,475 |
) |
| Additions
to land held for development or sale |
|
(2,071 |
) |
|
(37,661 |
) |
|
(26,157 |
) |
| Additions
to construction in progress |
|
(7,746 |
) |
|
(32,443 |
) |
|
(97,025 |
) |
| Acquisition
and development of executive suite assets |
|
– |
|
|
– |
|
|
(6,678 |
) |
| Payments
on notes receivable |
|
3,586 |
|
|
16,542 |
|
|
– |
|
| Issuance
of notes receivable |
|
(1,442 |
) |
|
(582 |
) |
|
(5,518 |
) |
| Distributions
from unconsolidated entities |
|
10,933 |
|
|
91,167 |
|
|
7,392 |
|
| Contributions
to unconsolidated entities |
|
(13,688 |
) |
|
(17,194 |
) |
|
(29,942 |
) |
| Acquisition
of minority interest |
|
(9,557 |
) |
|
(5,033 |
) |
|
(8,438 |
) |
| Decrease
(increase) in restricted deposits |
|
905 |
|
|
34,886 |
|
|
(27,007 |
) |
| Proceeds
from sales of properties |
|
176,119 |
|
|
101,351 |
|
|
474,015 |
|
| Proceeds
from sale of executive suites operations |
|
– |
|
|
– |
|
|
377,310 |
|
|
|
| Net
cash (used by) provided by investing activities |
|
(44,066 |
) |
|
101,204 |
|
|
567,477 |
|
|
|
| Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
| Repurchase
of common shares |
|
(35,923 |
) |
|
(428,275 |
) |
|
(90,223 |
) |
| Repurchase
and redemption of preferred shares |
|
(145,482 |
) |
|
– |
|
|
– |
|
| Exercises
of stock options |
|
28,810 |
|
|
28,477 |
|
|
29,730 |
|
| Proceeds
from the issuance of unsecured notes |
|
617,982 |
|
|
– |
|
|
– |
|
| Net
borrowings (repayments) on unsecured credit facility (including |
|
|
|
|
|
|
|
|
|
| $140,500
related to discontinued operations in 2000) |
|
(369,000 |
) |
|
281,000 |
|
|
(307,500 |
) |
| Payment
of senior unsecured notes |
|
– |
|
|
– |
|
|
(150,000 |
) |
| Repayments
of mortgages payable (including $14,449 related to |
|
|
|
|
|
|
|
|
|
| discontinued
operations in 2000) |
|
(117,526 |
) |
|
(86,770 |
) |
|
(88,811 |
) |
| Proceeds
from mortgages |
|
– |
|
|
26,628 |
|
|
– |
|
| Dividends
and distributions to minority interests |
|
(148,385 |
) |
|
(159,641 |
) |
|
(169,320 |
) |
| Contributions
from minority interests |
|
– |
|
|
– |
|
|
2,411 |
|
| Deferred
financing costs |
|
(1,448 |
) |
|
– |
|
|
– |
|
|
|
| Net
cash used by financing activities |
|
(170,972 |
) |
|
(338,581 |
) |
|
(773,713 |
) |
|
|
| Decrease
in cash and cash equivalents |
|
(2,018 |
) |
|
(19,663 |
) |
|
(27,182 |
) |
| Cash
and cash equivalents, beginning of the period |
|
5,041 |
|
|
24,704 |
|
|
51,886 |
|
|
|
| Cash
and cash equivalents, end of the period |
$ |
3,023 |
|
$ |
5,041 |
|
$ |
24,704 |
|
|
|
| Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
| Cash
paid for interest (net of capitalized interest of $3,274, $6,221 |
|
|
|
|
|
|
|
|
|
| and
$12,367, respectively) |
$ |
87,594 |
|
$ |
74,996 |
|
$ |
99,628 |
|
|
|
| Cash
paid (refunds) for income taxes |
$ |
(933 |
) |
$ |
27,361 |
|
$ |
8,893 |
|
|
|
See accompanying notes to consolidated financial
statements. |
|
|
