$1.80 in FFO Per Share for 1998
Continued strong growth in FFO per share
Highlights include:
-- Quarterly FFO per share of $0.48, $1.80 on a pro forma basis for 1998
-- Fourth quarter occupancy at 97%; 1998 cash basis NOI growth of 7%
-- Completed 41 separate acquisitions for $426 million in 1998
-- Initiated over $78 million in 10 separate development projects
-- Investment grade ratings and capital structure provide capacity for
undiluted growth
BOSTON, Feb. 10 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported funds from operations (FFO) per share of $0.48 for the quarter ended
December 31, 1998. On a pro forma basis FFO per share was $1.80 for 1998.
Funds available for distribution were $0.43 for the quarter and $1.63 on a pro
forma basis for the year. Cabot Industrial Trust completed an initial public
offering on February 4, 1998 and therefore comparative results for last year
are not available.
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust,
reported, "In our first year as a public company, Cabot successfully executed
its business plan despite changing market conditions. We achieved strong
growth in FFO per share, and our capital structure leaves us well positioned
for continued growth in 1999." Accomplishments in 1998 include:
Internal growth in 1998 of 7%
Cabot Industrial maintained a strong focus on tenant relations. In 1998
the Company raised the level of internal property management to 75% by opening
five new regional offices. Cabot Industrial now operates properties with 414
tenants in multiple industry sectors. Over the course of 1998 the Company
leased 3.8 million square feet, achieving 8% increases in new leases,
retaining 76% of its tenants and increasing occupancy from 93% to 97%. As a
result same store cash basis NOI grew by 7% over the course of 1998.
Disciplined acquisition activity
Cabot Industrial continued its aggressive, highly selective individual
property acquisition strategy. In 1998 Cabot Industrial completed 41 separate
acquisitions for $426 million at an average stabilized yield of 9.7%. Cabot
Industrial continues to see excellent opportunities particularly for smaller
transactions and remains focused on identifying the best value within each of
its target markets.
Development focuses on growth sectors
The development program is targeted toward capturing the continued strong
demand in the mid-sized tenant spaces. Cabot Industrial's development program
currently stands at $78 million in nine different submarkets across the
country. Eighty percent are targeted toward workspace or multitenant
distribution properties, for which the Company has seen particularly strong
tenant demand. Rents on signed leases for multitenant rose 10% in 1998 and
16% in workspace buildings. The prospects for these developments look very
strong; three development projects have been completed and 97% of the space
has been leased or has leases out for signature.
Client advisory affiliate expands regional activity
The investment advisory affiliate, Cabot Advisors, dedicated itself to
strengthening its relationships with institutional clients, for whom they
manage portfolios totaling 10 million square feet. Cabot internalized
property management on 3.2 million square feet through its regional offices
and leased over 1 million s.f., increasing overall occupancy to 99% in its
advisory accounts.
Strong capital base - 23% leverage
At year end Cabot Industrial's debt-to-book capital ratio stood at 23.3%
and its debt service coverage ratio was 5.3 times. Given the Company's large
unencumbered asset base of $1 billion and low leverage, the Company has
substantial capacity to invest without issuing additional common equity. With
investment grade ratings, the Company continues to benefit from flexibility in
accessing different sectors of the capital markets.
In commenting on the year, Ferdinand Colloredo-Mansfeld said, "We look
forward to excellent opportunities for growth in 1999. We believe our company
is uniquely positioned to build a superior position in the highly fragmented
industrial sector."
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Chicago, Los Angeles, Dallas, Orlando and Cincinnati that
specializes in the ownership, acquisition, and development of industrial
properties with 206 properties containing 28 million square feet in 21 states.
The Company also manages 10 million square feet of property for investment
advisory accounts. Cabot Industrial Trust focuses on a broad spectrum of
industrial property types nationwide including large bulk distribution
facilities, multitenant distribution facilities and workspace properties.
In addition to historical information, this press release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations about the industry and the markets in which the Company
operates. Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties or other
factors which may cause actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Actual
operating results may be affected by various factors including, without
limitation, changes in national and local economic conditions, competitive
market conditions, uncertainties and costs related to and the imposition of
conditions on receipt of governmental approvals and costs of material and
labor, all of which may cause such actual results to differ materially from
what is expressed or forecast in this press release.
CABOT INDUSTRIAL TRUST
SUMMARY UNAUDITED QUARTERLY RESULTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Quarter Ended (inception)
Dec. 31, 1998 through
Dec. 31, 1998
Rental Revenues $33,116 $102,425
Net income available to common
shareholders (a) $6,206 $21,766
Weighted average common shares outstanding:
Basic 18,587 18,587
Diluted 18,587 18,587
Net income per common share:
Basic $0.33 $1.17
Diluted $0.33 $1.17
Funds from operations (b) $20,760 $71,269
Average shares outstanding (c)
Basic 43,502 43,493
Diluted 43,503 43,587
Funds from operations per share (c)
Basic $0.48 $1.64
Diluted $0.48 $1.64
Occupancy Rates December 31, 1998
Bulk Distribution Properties 96.90
Multitenant Distribution Properties 97.70
Workspace Properties 97.90
Weighted average total 97.40
(a) Net income after minority interest
(b) Calculated before minority interest
(c) Calculated based on weighted average
shares outstanding assuming
conversion of all partnership units
outstanding
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE DATA)
December 31, 1998
ASSETS
Rental Properties $1,072,675
Less: Accumulated Depreciation (17,290)
Properties Under Development 23,108
Net Real Estate Investments $1,078,493
Cash and Cash Equivalents $2,301
Rents and Other Receivables 2,872
Deferred Rent Receivable 2,638
Deferred Lease Acquisition Costs, net 17,362
Deferred Financing Costs, net 1,255
Other Assets 5,649
TOTAL ASSETS $1,110,570
LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES
Mortgage Debt $48,206
Line of Credit Borrowings 200,000
Accounts Payable and Accrued Real Estate Taxes 7,820
Tenant Security Deposits and Prepaid Rent 4,956
Distributions Payable 14,134
Other Liabilities 18,156
Total Liabilities $293,272
MINORITY INTEREST $468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value, 150,000,000
shares authorized, 18,586,764 shares
issued and outstanding
$186
Additional paid-in capital 349,117
Retained earnings (316)
Total Shareholders' Equity $348,987
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$1,110,570
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Quarter Ended (Inception)
Dec. 31, 1998 through
Dec. 31, 1998
REVENUES
Rental Income $28,475 $89,044
Tenant Reimbursements 4,641 13,381
Gain on Sale of Real Estate 572 572
Interest and Other Income 6 1,120
Total Revenues $33,694 $104,117
EXPENSES
Property Operating $2,500 $6,579
Property Taxes 3,861 11,843
General and Administrative 2,301 6,815
Interest 3,692 7,009
Depreciation and Amortization 6,805 20,913
Total Expenses $19,159 $53,159
Income Before Minority Interest $14,535 $50,958
Minority Interest $(8,329) $(29,192)
Net Income $6,206 $21,766
Weighted Average Shares Outstanding:
Basic 18,587 18,587
Diluted 18,587 18,587
Net Income per Common Share:
Basic $0.33 $1.17
Diluted $0.33 $1.17
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Quarter Ended (Inception)
December 31, through December 31,
1998 1998
Net Income $6,206 $21,766
Add:
Minority Interest 8,329 29,192
Real Estate Related Depreciation
and Amortization 6,797 20,883
Gain on Sale of Real Estate (572) (572)
Funds from Operations $20,760 $71,269
Weighted Average Shares Outstanding (a)
Basic 43,502 43,493
Diluted 43,503 43,587
Funds from Operations per Share (a)
Basic $0.48 $1.64
Diluted $0.48 $1.64
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
(inception)
through
Quarter Ended December 31,
December 31, 1998 1998
Funds from Operations $20,760 $71,269
Adjustments:
Straightline Rental Income (900) (2,638)
Amortization of Deferred Financing Costs 152 466
Leasing Commissions and Tenant
Improvements (1,261) (3,689)
Building Improvements (185) (1,158)
Funds Available for Distribution $18,566 $64,250
Funds Available for Distribution
per Share (a)
Basic $0.43 $1.47
Diluted $0.43 $1.47
(a) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
SOURCE Cabot Industrial Trust
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Related links:
http://www.frbinc.com
CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900; or General
Info., Michael Lawson, or Analyst Info., Pamela King, both of The
Financial Relations Board, 212-661-8030
NOTE TO EDITORS: To receive Cabot Industrial Trust's latest news
release and other corporate documents via FAX, at no cost, dial
1-800-PRO-INFO. Use the company's ticker, CTR. Or, visit The
Financial Relations Board's web site at http://www.frbinc.com.
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