BIRMINGHAM, Ala., Jan. 26 /PRNewswire-FirstCall/ -- Colonial Properties
Trust (NYSE: CLP) (the "Company") today reported earnings of $9.8 million or
$0.37 per fully diluted share (EPS) for the fourth quarter 2003; for the same
period in 2002, EPS was $0.48. For the year, fully diluted earnings per share
were $1.29 in 2003 as compared to $2.58 for the same period in 2002. As
discussed in previous reporting periods, a significant portion of the decrease
in earnings per share was attributable to the gains recognized on asset sales
in 2002. Asset sales are a recurring part of the company's strategy; the
timing and amount of these asset sales fluctuate from quarter to quarter and
year to year.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030709/CLPLOGO-c )
Funds from operations (FFO) for the fourth quarter were $36.0 million, or
$0.97 per fully diluted share/unit, compared to $36.6 million, or $1.08 per
share/unit for the same period a year ago. On a year-to-date basis, FFO per
share/unit was $3.45 in 2003 as compared to $3.82 for the same period in 2002.
A reconciliation from net income available to common shareholders to funds
from operations is provided in the attached tables.
On a same-property basis, the multifamily, office and retail divisions
posted net operating income results of a 3.6 percent increase, 8.1 percent
decrease and 0.9 percent increase, respectively, for the quarter. Occupancies
at the end of the period for the Company's stabilized properties were
93 percent, 90 percent and 90 percent for the multifamily, office and retail
divisions, respectively. A reconciliation of total divisional net operating
income to income from continuing operations before discontinued operations is
provided in the attached tables.
"During 2003, the Company executed a number of transactions improving its
overall balance sheet position; expectations were to use these funds to invest
in new acquisition opportunities. The lack of attractive acquisition
opportunities earlier in the year affected our external growth in 2003,"
stated Thomas H. Lowder, chairman and chief executive officer. "At year-end,
the Company closed on several acquisitions in the multifamily and office
sectors. With these acquisitions and the potential for additional investment
opportunities, we anticipate our external growth opportunities to increase
cash flow in 2004."
During the quarter, the Company recorded a one-time charge to earnings as
a retirement package for our Chief Financial Officer, Howard B. Nelson, Jr.
Mr. Nelson has announced his retirement effective as of March 1, 2004.
Mr. Nelson joined Colonial Properties Trust in 1984. Named chief operating
officer in 1993, he was an integral participant in the Company's initial
public offering. In 1997, Mr. Nelson became the chief financial officer and
has managed the Company's financial and balance sheet activities since that
time. A full biography of Mr. Nelson is available on the Company's
website: http://www.colonialprop.com . Click "Corporate Profile" and then "Senior
Management." Mr. Nelson will continue to work with the Company on a consulting
basis in financial matters and manage the Company's political action committee
activities in Washington, DC and in local government offices throughout the
Sunbelt.
Lowder stated, "Howard has been a vital part of this organization for
twenty years providing sound guidance and vision. He will be missed as a
daily member of our management team, but we are pleased that he will continue
to be involved with the Company going forward."
Investment and Disposition Activities
At year end, Colonial Properties acquired two multifamily properties,
interest in a multifamily joint venture and an office property, for a total of
approximately $80 million. These investment opportunities are located in
submarkets of Austin, Orlando, Huntsville, and Birmingham that are projecting
limited new construction and promising new job growth.
During the fourth quarter, the Company sold several outparcels; proceeds
were approximately $15 million. For the full year, the Company completed
approximately $58 million of property and outparcel sales.
For additional details of the Company's disposition and investment
activities, see the Company's detailed Supplemental Financial Highlights
available on the Company's website.
Financing Activities
During 2003, the Company completed a 6.15% 10-year $125 million senior
unsecured notes offering, refinanced $125 million of preferred shares, and
executed a $72.5 million secondary equity offering.
Conference Call and Supplemental Materials
The Company will hold its quarterly conference call Tuesday, January 27th
at 1:00 pm central time. The call will include a review of the Company's
fourth quarter performance and discussion of the Company's strategy and
current expectations for the future.
To participate, dial 1-877-500-9123. As with previous calls, a replay will
be available for one week, by dialing 800-642-1687; the Conference ID will be
4746290. Access to the live call and a replay will be available through the
Company's website at http://www.colonialprop.com under "Investor Relations:
Shareholder Information".
The Company produces a supplemental information package that provides
detailed information regarding operating performance, investing activities and
the Company's overall financial position. Additionally, 2004 earnings
guidance is available in the supplemental. For a copy of the Company's
detailed Supplemental Financial Highlights, please visit the Company's website
at http://www.colonialprop.com under the "Investor Relations: Financial Reporting"
tab or contact Investor Relations at 800-645-3917.
Company Summary
Colonial Properties Trust is a diversified REIT that, through its
subsidiaries, owns a portfolio of multifamily, office and retail properties
where you live, work and shop in Alabama, Florida, Georgia, Mississippi, North
Carolina, South Carolina, Tennessee, Texas and Virginia. Colonial Properties
Trust performs development, acquisition, management, leasing and brokerage
services for its portfolio and properties owned by third parties. Colonial
Properties Trust is a diversified REIT, which has a total market
capitalization of $3.1 billion. The cornerstone of Colonial Properties'
success is its live, work and shop diversified investment strategy. The
Company manages or leases 21,300 apartment units, 6.7 million square feet of
office space and 15.7 million square feet of retail shopping space. In 2003,
the National Association of Industrial and Office Properties (NAIOP) named
Colonial Properties Trust "National Developer of the Year". Additional
information on Colonial Properties Trust is available on the Internet
at http://www.colonialprop.com . The Company, headquartered in Birmingham, Ala., is
listed on the New York Stock Exchange under the symbol "CLP" and is included
in the S&P SmallCap 600 Index.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for the historical information contained herein, this news
release contains forward-looking statements regarding Company and property
performance, and is based on the Company's current expectations and judgment.
Actual results could vary materially depending on risks and uncertainties
inherent to general and local real estate conditions, competitive factors
specific to markets in which Colonial Properties operates, legislative or
other regulatory decisions, future interest rate levels or capital markets
conditions. The Company assumes no liability to update this information. For
more details, please refer to the Company's SEC filings, including its most
recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.
COLONIAL PROPERTIES TRUST
Financial Statements
Fourth Quarter 2003
BALANCE SHEET
($ in 000s) As of As of
12/31/2003 12/31/2002
ASSETS
Real Estate Investments
Operating Properties $2,378,835 $2,280,957
Undeveloped Land & Construction in
Progress 114,262 82,520
Total Real Estate, before
Depreciation 2,493,097 2,363,477
Less: Accumulated Depreciation (419,827) (345,922)
Real estate assets held for sale,
net 11,691 12,043
Net Real Estate Assets 2,084,961 2,029,598
Cash and Equivalents 8,070 6,236
Restricted Cash 1,879 1,481
Accounts Receivable, net 10,262 10,395
Notes Receivable 2,504 1,307
Prepaid Expenses 6,587 7,581
Deferred Debt and Lease Costs 25,832 23,157
Investment in Unconsolidated
Subsidiaries 37,496 36,265
Other Assets 17,336 13,836
Total Assets $2,194,927 $2,129,856
LIABILITIES
Long-Term Liabilities
Payable to Banks $205,935 $208,270
Notes and Mortgages Payable 1,050,145 1,041,964
Mortgages Payable related to real
estate held for sale 11,785 11,959
Total Long-Term Liabilities 1,267,865 1,262,193
Other Liabilities 55,275 55,566
Total Liabilities 1,323,140 1,317,759
MINORITY INTEREST & EQUITY
Preferred Shares and Units, at
Liquidation Value
Series A 8 3/4%, Preferred Shares - 125,000
Series B 8 7/8%, Preferred Units 100,000 100,000
Series C 9 1/4%, Preferred Shares 50,000 50,000
Series D 8 1/8%, Preferred Shares 125,000 -
Total Preferred Shares and Units,
at Liquidation Value 275,000 275,000
Common Equity, including Minority
Interest 596,787 537,097
Total Equity, including Minority
Interest 871,787 812,097
Total Liabilities and Equity $2,194,927 $2,129,856
SHARES & UNITS OUTSTANDING, END OF PERIOD
(shares and units in 000s) As of As of
12/31/2003 12/31/2002
Basic
Shares 26,395 22,850
Operating Partnership Units (OP
Units) 10,361 10,788
Total Shares & OP Units 36,756 33,638
Dilutive Common Share Equivalents 266 254
Diluted
Shares 26,661 23,104
Total Shares & OP Units 37,022 33,892
COLONIAL PROPERTIES TRUST
Financial Statements
Fourth Quarter 2003
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data) Three Months Ended
12/31/2003 12/31/2002
Revenue
Minimum Rent $68,510 $67,725 1.2%
Percentage Rent 1,878 1,723 9.0%
Tenant Recoveries 10,272 10,406 -1.3%
Other Property Related Revenue 5,119 5,177 -1.1%
Other Non-Property Related Revenue 846 1,980 -57.3%
Total Revenue 86,625 87,011 -0.4%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 6,037 5,956 1.4%
Salaries and Benefits 4,114 3,812 7.9%
Repairs and Maintenance 8,366 8,336 0.4%
Taxes, Licenses, and Insurance 7,640 7,229 5.7%
Total Property Operating
Expenses 26,157 25,333 3.3%
General and Administrative 4,480 3,814 17.5%
Depreciation 20,373 19,392 5.1%
Amortization 2,136 2,890 -26.1%
Total Operating Expenses 53,146 51,429 3.3%
Income from Operations 33,479 35,582 -5.9%
Other Income (Expense)
Interest Expense (16,650) (17,236) -3.4%
Income from Investments 482 982 -50.9%
Loss on Hedging Activities (35) (11) 218.2%
Gain on Sale of Property 1,648 2,784 -40.8%
Other 35 (618) -105.7%
Total Other Expense (14,520) (14,099) 3.0%
Income before Minority Interest
& Discontinued Operations 18,959 21,483 -11.7%
Minority Interest
Minority Interest in CRLP -
Preferred (2,218) (2,218) 0.0%
Minority Interest in CRLP - Common (3,620) (4,883) -25.9%
Total Minority Interest (5,838) (7,101) -17.8%
Income from Continuing Operations 13,121 14,382 -8.8%
Discontinued Operations
Income from Discontinued Operations 140 829 -83.1%
Gain on Disposal of Discontinued
Operations 388 (28) -1485.7%
Minority Interest in Discontinued
Operations (150) (260) -42.3%
Income from Discontinued Operations 378 541 -30.1%
Net Income 13,499 14,923 -9.5%
Dividends to Preferred Shareholders (3,696) (3,891) -5.0%
Preferred Share Issuance Costs - -
Net Income Available to Common
Shareholders $9,803 $11,032 -11.1%
Earnings per Share - Basic
Continuing Operations $0.36 $0.47 -23.4%
Discontinued Operations 0.01 0.02 -50.0%
EPS - Basic $0.37 $0.49 -24.5%
Earnings per Share - Diluted
Continuing Operations $0.36 $0.46 -21.7%
Discontinued Operations 0.01 0.02 -50.0%
EPS - Diluted $0.37 $0.48 -22.9%
COLONIAL PROPERTIES TRUST
Financial Statements
Fourth Quarter 2003
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data) Twelve Months Ended
12/31/2003 12/31/2002
Revenue
Minimum Rent $264,199 $253,248 4.3%
Percentage Rent 3,787 3,450 9.8%
Tenant Recoveries 40,015 40,493 -1.2%
Other Property Related Revenue 21,513 18,467 16.5%
Other Non-Property Related Revenue 4,728 7,449 -36.5%
Total Revenue 334,242 323,107 3.4%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 24,001 22,869 4.9%
Salaries and Benefits 15,547 14,219 9.3%
Repairs and Maintenance 34,296 32,010 7.1%
Taxes, Licenses, and Insurance 30,788 28,118 9.5%
Total Property Operating
Expenses 104,632 97,216 7.6%
General and Administrative 19,481 15,496 25.7%
Depreciation 80,115 71,976 11.3%
Amortization 7,984 9,121 -12.5%
Total Operating Expenses 212,212 193,809 9.5%
Income from Operations 122,030 129,298 -5.6%
Other Income (Expense)
Interest Expense (66,666) (64,086) 4.0%
Income from Investments 608 1,968 -69.1%
Loss on Hedging Activities (361) (23) 1469.6%
Gain on Sale of Property 7,921 35,511 -77.7%
Other (121) (618) -80.4%
Total Other Expense (58,619) (27,248) 115.1%
Income before Minority Interest
& Discontinued Operations 63,411 102,050 -37.9%
Minority Interest
Minority Interest in CRLP -
Preferred (8,873) (8,873) 0.0%
Minority Interest in CRLP - Common (10,329) (25,721) -59.8%
Total Minority Interest (19,202) (34,594) -44.5%
Income from Continuing Operations 44,209 67,456 -34.5%
Discontinued Operations
Income from Discontinued Operations 829 2,815 -70.6%
Gain on Disposal of Discontinued
Operations 10,542 6,041 74.5%
Minority Interest in Discontinued
Operations (3,316) (2,935) 13.0%
Income from Discontinued Operations 8,055 5,921 36.0%
Net Income 52,264 73,377 -28.8%
Dividends to Preferred Shareholders (15,284) (15,565) -1.8%
Preferred Share Issuance Costs (4,451) -
Net Income Available to Common
Shareholders $32,529 $57,812 -43.7%
Earnings per Share - Basic
Continuing Operations $0.98 $2.34 -58.1%
Discontinued Operations 0.32 0.27 18.5%
EPS - Basic $1.30 $2.61 -50.2%
Earnings per Share - Diluted
Continuing Operations $0.97 $2.32 -58.2%
Discontinued Operations 0.32 0.26 23.1%
EPS - Diluted $1.29 $2.58 -50.0%
FOURTH QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
($ in 000s, except per share data)
Three Months Ended
12/31/2003 12/31/2002
Net Income Available to Common
Shareholders $9,803 $11,032 -11.1%
Minority Interest in CRLP (Operating
Ptr Unitholders) 3,770 5,143 -26.7%
Total 13,573 16,175 -16.1%
Adjustments - Consolidated Properties
Depreciation - Real Estate 20,221 19,403 4.2%
Amortization - Real Estate 1,188 1,516 -21.6%
Remove: Gain/(Loss) on Sale of
Property (2,036) (2,758) -26.2%
Include: Gain/(Loss) on Sale of
Undepreciated Property 2,050 2,627 -22.0%
Straight-Line Rents (Prior to
2003) - (710) -100.0%
Marketing Fees (Prior to 2003) - -
Total Adjustments -
Consolidated 21,423 20,078 6.7%
Adjustments - Unconsolidated
Properties
Depreciation - Real Estate 1,000 885 13.0%
Amortization - Real Estate 15 50 -70.0%
Remove: Gain/(Loss) on Sale of
Property - (580) -100.0%
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Straight-Line Rents (Prior to
2003) - (12) -100.0%
Total Adjustments -
Unconsolidated 1,015 343 195.9%
Funds from Operations $36,011 $36,596 -1.6%
FFO per Share
Basic $0.98 $1.09 -10.0%
Diluted $0.97 $1.08 -10.3%
Pursuant to the definition of Funds from Operations ("FFO") adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"), FFO is calculated by adjusting net income
(loss) (computed in accordance with GAAP), excluding gains (or losses)
from sales of depreciated property, plus depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures are
calculated to reflect FFO on the same basis.
The Company believes that FFO is useful to investors because it provides
an additional indicator of the Company's financial and operating
performance. This is because, by excluding the effect of real estate
depreciation and gains (or losses) from sales of properties (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO can facilitate comparison of
operating performance among equity REITs. FFO is a widely recognized
measure in the Company's industry. FFO does not represent cash
generated from operating activities determined in accordance with GAAP,
and should not be considered as an alternative to net cash flows
from operating activities (determined in accordance with GAAP), as a
measure of our liquidity, or as an indicator of our ability to make cash
distributions.
FOURTH QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
($ in 000s, except per share data)
Twelve Months Ended
12/31/2003 12/31/2002
Net Income Available to Common
Shareholders $32,529 $57,812 -43.7%
Minority Interest in CRLP (Operating
Ptr Unitholders) 13,645 28,656 -52.4%
Total 46,174 86,468 -46.6%
Adjustments - Consolidated Properties
Depreciation - Real Estate 79,006 72,449 9.1%
Amortization - Real Estate 4,367 4,957 -11.9%
Remove: Gain/(Loss) on Sale of
Property (18,463) (41,552) -55.6%
Include: Gain/(Loss) on Sale of
Undepreciated Property 8,040 3,596 123.6%
Straight-Line Rents (Prior to 2003) - (2,079) -100.0%
Marketing Fees (Prior to 2003) - 1,658 -100.0%
Total Adjustments -
Consolidated 72,950 39,029 86.9%
Adjustments - Unconsolidated
Properties
Depreciation - Real Estate 3,844 2,703 42.2%
Amortization - Real Estate 83 67 23.9%
Remove: Gain/(Loss) on Sale of
Property - (580) -100.0%
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Straight-Line Rents (Prior to 2003) - (35) -100.0%
Total Adjustments -
Unconsolidated 3,927 2,155 82.2%
Funds from Operations $123,051 $127,652 -3.6%
FFO per Share
Basic $3.47 $3.85 -9.7%
Diluted $3.45 $3.82 -9.7%
Pursuant to the definition of Funds from Operations ("FFO") adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"), FFO is calculated by adjusting net income
(loss) (computed in accordance with GAAP), excluding gains (or losses)
from sales of depreciated property, plus depreciation and amortization,
and after adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures are
calculated to reflect FFO on the same basis.
The Company believes that FFO is useful to investors because it provides
an additional indicator of the Company's financial and operating
performance. This is because, by excluding the effect of real estate
depreciation and gains (or losses) from sales of properties (all of which
are based on historical costs which may be of limited relevance in
evaluating current performance), FFO can facilitate comparison of
operating performance among equity REITs. FFO is a widely recognized
measure in the Company's industry. FFO does not represent cash
generated from operating activities determined in accordance with GAAP,
and should not be considered as an alternative to net cash flows
from operating activities (determined in accordance with GAAP), as a
measure of our liquidity, or as an indicator of our ability to make cash
distributions.
FOURTH QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
(shares and units in 000s)
Three Months Ended Twelve Months Ended
12/31/2003 12/31/2002 12/31/2003 12/31/2002
Basic
Shares 26,267 22,659 15.9% 24,965 22,154 12.7%
Operating Partnership
Units (OP Units) 10,390 10,886 -4.6% 10,451 11,016 -5.1%
Total Shares & OP
Units 36,657 33,544 9.3% 35,416 33,170 6.8%
Dilutive Common Share
Equivalents 398 227 75.7% 266 254 4.7%
Diluted
Shares 26,666 22,885 16.5% 25,232 22,408 12.6%
Total Shares & OP
Units 37,055 33,771 9.7% 35,682 33,424 6.8%
FOURTH QUARTER SEGMENT DATA & RECONCILIATION
Three Months Ended Twelve Months Ended
12/31/2003 12/31/2002 12/31/2003 12/31/2002
Net Operating Income
(NOI)
Divisional Same-
Property NOI
Multifamily 14,386 13,886 3.6% 55,294 57,528 -3.9%
Office 8,891 9,673 -8.1% 35,824 39,165 -8.5%
Retail 28,997 28,730 0.9% 102,865 103,094 -0.2%
Total Same-Property 52,275 52,290 0.0% 193,983 199,787 -2.9%
Less:
Unconsolidated
Assets (1,372) (1,336) (4,663) (5,125)
Same-Property NOI,
Consolidated 50,903 50,954 189,320 194,662
Divisional Non Same-
Property NOI
Multifamily 1,689 1,974 6,596 10,617
Office 7,141 6,984 30,012 15,765
Retail 1,701 2,342 6,289 6,228
Total Non-Same
Property 10,531 11,300 42,897 32,609
Less:
Unconsolidated
Assets (1,305) (1,055) (4,692) (2,831)
Non Same-Property
NOI, Consolidated 9,226 10,245 38,205 29,778
Divisional Total NOI
Multifamily 16,075 15,860 1.4% 61,890 68,145 -9.2%
Office 16,033 16,657 -3.7% 65,836 54,930 19.9%
Retail 30,698 31,072 -1.2% 109,154 109,322 -0.2%
Total Divisional
NOI 62,806 63,589 -1.2% 236,880 232,396 1.9%
Less: NOI,
Unconsolidated (2,677) (2,391) (9,355) (7,956)
2002 Discontinued
Operations - (50) - (843)
2003 Discontinued
Operations (472) (1,358) (2,436) (4,898)
Unallocated Corporate
Rev 812 1,915 4,727 7,246
Other Expense - (8) (206) (55)
General &
Administrative
Expenses (4,480) (3,814) (19,481) (15,496)
Depreciation (20,373) (19,391) (80,115) (71,976)
Amortization (2,136) (2,891) (7,984) (9,121)
Income from
Operations, restated
for additional
discontinued
operations 33,480 35,601 122,030 129,297
Total Other Income
(Expense) (14,520) (14,098) (58,619) (27,248)
Income from
Continuing
Operations before
Extraordinary
Items, Minority
Interest and
Discontinued
Operations,
as restated for
additional
discontinued
operations 18,960 21,503 63,411 102,049
Add: 2002
Discontinued
Operations NOI - 30 - 446
Add: 2003
Discontinued
Operations NOI - 1,358 1,180 4,898
2003 Discontinued
Operations
Deprec/Amortization - (354) (185) (1,404)
Add: 2003 Disc Ops
Int Exp - (253) (639) (1,208)
Income from
Continuing
Operations before
Extraordinary
Items, Minority
Interest and
Discontinued
Operations, per
corresponding 10-K
or 10-Q 18,960 22,284 63,767 104,782
Divisional NOI is defined as total property revenues, including
unconsolidated partnerships and joint ventures, less real estate expenses
(such items as repairs and maintenance, payroll, utilities, property
taxes, insurance, advertising, management fees).
The Company believes Total Divisional NOI (and other NOI measures
aggregating segment data) is useful to investors as a meaningful
indicator of property level operating performance and current market
conditions affecting the Company . Additionally, the Company also
believes Total Divisional NOI (and such other NOI measures) is useful to
investors because NOI is commonly used industry-wide to evaluate
and compare property level operating results of real estate companies,
allowing investors to view the Company in comparison to these other
real estate companies. The Company cautions investors that other real
estate companies may calculate Total Divisional NOI on a basis
different than the Company. In addition, Total Divisional NOI (and such
other NOI measures) should not be viewed as a substitute measure
of performance for GAAP income from continuing operations or other
applicable GAAP performance measures.
SOURCE Colonial Properties Trust
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Related links:
http://www.colonialprop.com
Photo Notes:
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CONTACT:
Sandra Lee Robertson, Senior Vice President -
Finance, +1-205-250-8788, or Linda S. Geiss, Vice President -
Media Relations, +1-205-250-8768, both of Colonial Properties
Trust
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