Press Release: Catellus Development Corporation
December 13, 2001
SAN FRANCISCO, CA -- Catellus Development Corporation (NYSE:CDX) announced yesterday that it has agreed to purchase
10.6 million shares of its common stock from the California Public Employees Retirement System (``CalPERS'') for
a total of $183,120,300.00 or $17.2755 per share. The closing price of the stock today was $17.45 per share. This
transaction, which is expected to close on December 14, 2001, will reduce CalPERS' ownership in Catellus to approximately
9.45% of the company's outstanding stock. CalPERS will be able to trade its remaining shares freely.
Michael B. McCook, Senior Investment Officer for CalPERS real estate program, commented, ``We are very pleased
with the progress Catellus' management has made since 1994, and we remain extremely confident about the company's
plans for the future. This transaction allows us increased flexibility in our portfolio, and we hope that reducing
our ownership percentage in Catellus will allow us to pursue other opportunities together.''
Nelson C. Rising, chairman and chief executive officer of Catellus, added, ``This transaction presents an excellent
opportunity to accelerate our pre-existing share repurchase program. We look forward to our continuing relationship
with CalPERS.''
The stock purchase will be completed utilizing a portion of Catellus' cash liquidity. Including this transaction,
Catellus has repurchased 21,649,797 shares of stock to date in 2001, at an average price of $17.20 per share. Catellus
is confirming its previous 2001 earnings guidance and its 2002 earnings guidance for EBDDT per share at 10-12%
growth over 2001.
Catellus Development Corporation is one of the nation's premier diversified real estate operating companies. The
Company specializes in developing, managing and investing in a broad range of product types including industrial,
residential, office, retail and major urban development projects. It owns a portfolio of rental properties totaling
30.3 million square feet and one of the largest supplies of developable land in the Western United States capable
of supporting over 41 million square feet of new commercial development and an estimated 10,500 residential lots
and units. More information on the Company is available at www.catellus.com
This release contains forward-looking statements including statements concerning earnings and EBDDT; plans; opportunities;
negotiations; markets and economic conditions; leasing; development; construction, rental, and sales activities;
availability of financing; and property values. We do not undertake any obligation to revise these forward-looking
statements to reflect future events, changes in circumstances, or changes in beliefs. These statements by their
nature involve risks and uncertainties. In particular, among the factors that could cause actual results to differ
materially from the results expressed in or implied by such statements are: changes in the real estate market or
in general economic conditions, including the possibility of a worsening economic slowdown or recession; product
and geographical concentration; industry competition; changes in interest rates and capital markets or unavailability
of financing; changes in insurance markets; discretionary government decisions affecting the use of land, and delays
resulting therefrom; changes in the management team; changes in tax laws; weather conditions and other natural
occurrences that may affect construction or cause damage to assets; liability for environmental remediation and
changes in environmental laws and regulations; failure or inability of third parties to fulfill their commitments
or to perform their obligations under agreements; failure of parties to reach agreement on definitive terms or
to close transactions; costs and availability of land and construction materials; risks related to the financial
strength of joint venture projects and co-owners; changes in policies and practices of organized labor groups;
shortages in electrical power; and other risks inherent in the real estate business.
For further information on factors that could affect the Company and the forward-looking statements in this release,
you should refer to Catellus Development Corporation's report on Form 10-K for the fiscal year ended December 31,
2000, and Form 10-Q for the fiscal quarter ending September 30, 2001, each filed with the Securities and Exchange
Commission.
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Contact:
Catellus Development Corporation
Minnie Wright, 415/974-4649