JACKSON, Miss., Sept. 22 /PRNewswire-FirstCall/ -- PARKWAY PROPERTIES, INC. released the following statement today related to Hurricane Ike and an updated preliminary assessment of damage sustained by its properties in Houston, Texas.
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Parkway has 13 wholly-owned properties and one jointly-owned property in Houston, consisting of a total of 2.3 million square feet. As of today, the Company has 13 of its 14 properties open for business. The preliminary estimate of damages for the 14 properties is between $7.0 million to $9.0 million and the Company has already filed the necessary insurance claims to begin remediation. The Company estimates that its insurance deductible related to these claims will be approximately $3.0 million to $3.5 million. A portion of the Company's deductible, yet to be determined, will represent repair and clean up costs with the majority representing capitalized costs. The Company will provide further updates regarding the one-time impact of the repair and clean up costs on earnings as such amounts become available. Property damage mainly involves certain roof areas and windows that were compromised due to the high winds, resulting in water infiltration within certain buildings, as well as trees that were uprooted.
Certain statements in this release are forward-looking statements within the meaning of the federal securities laws. There can be no assurance that future developments with respect to Hurricane Ike or other weather related events that may affect the Company will be as presently anticipated by the Company.
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 66 office properties located in 11 states with an aggregate of approximately 13.3 million square feet of leasable space as of September 22, 2008. Included in the portfolio are 21 properties totaling 3.8 million square feet that are owned jointly with other investors, representing 28.8% of the portfolio. Under the Company's GEAR UP Plan, which started January 1, 2006 and ends December 31, 2008, it is the Company's goal to transform its strategy from being an owner-operator to being an operator-owner. The strategy highlights the Company's strength in providing excellent service in the operation of office properties in addition to its direct ownership of real estate assets. Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 1.8 million square feet for third party owners as of September 22, 2008.
Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at http://www.pky.com/ .
CONTACT: STEVEN G. ROGERS PRESIDENT & CHIEF EXECUTIVE OFFICER J. MITCHELL COLLINS CHIEF FINANCIAL OFFICER (601) 948-4091
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