$0.53 in FFO Per Share; $2.03 for Full Year 1999: 12.8% Increase Over 1998
Highlights include:
* Quarterly FFO per share of $0.53, $2.03 for 1999; quarterly FFO per
share growth of 10.4% and full year growth of 12.8% compared to the
prior year; revenue growth of 39.4% for the year.
* 1999 same store NOI growth of 4.5%; fourth quarter NOI growth of 3.7%
* Acquired 29 properties in 11 separate transactions for $123 million in
quarter; 42 separate transactions totaling $448 million for all of
1999.
* Stabilized development projects increased to $24 million at yields of
11.9%; remaining pipeline stands at $148 million.
* Raised approximately $500 million in long-term capital in 1999;
leverage stands at 33% of assets at year end.
BOSTON, Feb. 16 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported that for the year ended December 31, 1999 rental revenues were
$157.5 million and FFO per share was $2.03. This represents revenue growth of
39.4% and FFO per share growth of 12.8% compared to full year results for the
prior year. During the quarter, FFO per share was $0.53; a 10.4% increase
over fourth quarter 1998 results.
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
commented, "During 1999, we focused on creating value for our shareholders by
growing FFO per share and building our company. During the year, we enhanced
our portfolio through an active investment program totaling $448 million in
acquisitions and $94 million in new developments."
"We also expanded our operations platform to better serve our tenants by
opening new field-offices in Atlanta, Phoenix and Baltimore. Cabot's average
occupancy levels of 97% during the year and internal growth of 4.5%
demonstrate the benefits of our intensive level of tenant service. Our
capital structure remains strong with $1.3 billion in unencumbered assets,
total book assets of $1.6 billion and a debt to asset ratio of 33%. In 2000,
we will continue to focus on generating strong results from our portfolio and
judiciously managing our capital structure."
Internal growth in 1999 of 4.5%
Cabot maintained a strong focus on tenant relations. In 1999, the Company
raised the level of internal property management to 93% of its assets by
opening three new regional offices. Cabot now serves 638 tenants through
nine property management offices. Over the course of 1999, the Company leased
5.2 million square feet, achieved rent growth of 10% on new leases, and
maintained occupancy at 97%. Rent growth for workspace was strongest at 15%
followed by multitenant properties at 14% and bulk properties at 5%. Same
store cash basis NOI grew by 4.5% over the course of 1999. Cabot also
strengthened its relationships with its largest tenants and demonstrated the
benefits of its national network by growing the portion of annualized net rent
attributable to tenants served in multiple locations from 21% at the end of
1998 to 28% at the end of 1999.
Disciplined acquisition activity
Cabot continued its highly selective individual property acquisition
strategy. In 1999, Cabot completed 42 separate acquisitions for $448 million
at an average stabilized yield of 10.3%. As a result of this investment
activity, Cabot has improved its position in Los Angeles, Dallas, Charlotte,
Chicago, Cincinnati, Baltimore/Washington D.C., San Diego, Boston,
Minneapolis, Atlanta, Phoenix, South Florida, San Francisco and Columbus. All
of these acquisitions have been in Cabot's 19 target markets, which all
experienced increased demand for industrial space in 1999.
Development focuses on growth sectors
Cabot's development program currently stands at $172 million in
twelve different sub-markets across the country. Sixty-six percent of its
planned investments are targeted toward workspace or multitenant distribution
properties, for which the Company has seen particularly strong tenant demand.
The prospects for these developments look very strong; the first $24 million
of development projects which have been fully leased achieved yields of 11.9%,
exceeding pro forma. In addition, 65% of properties which have reached shell
completion have been leased at or above pro forma.
Strong capital base -- 33% leverage
At year-end, Cabot's debt-to-book asset ratio was 33%. Its debt service
coverage ratio was 3.8 times, and its fixed charge coverage ratio was
3.2 times for the year ended December 31, 1999. During the year Cabot
completed $490 million in financings including a $200 million 7.125% notes
offering and $195 million in preferred equity in five separate transactions at
a blended yield of 8.6%.
Conference Call -- The Company will hold its quarterly investor/analyst
conference call on February 17 beginning at 1:00 P.M. EST. A live web cast of
this call will be available on the Cabot Industrial Trust web site at
http://www.cabottrust.com. Supplemental Quarterly Information is also available on
the Cabot Industrial Trust web site. A replay of the conference call will be
available through February 24, 2000. The telephone number for the replay is
(800) 204-4427 and the meeting identification number is 2137.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Atlanta, Baltimore, Chicago, Cincinnati, Dallas, Los
Angeles, Orlando and Phoenix, which specializes in the ownership, acquisition,
and development of industrial properties. It owns 320 properties containing
38 million square feet in 22 states. The Company also manages an additional
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.
To receive Cabot Industrial Trust's latest news releases and other
corporate documents please send requests via e-mail at ir@cabottrust.com or
visit our web site at http://www.cabottrust.com.
CABOT INDUSTRIAL TRUST
SUMMARY UNAUDITED QUARTERLY RESULTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
December 31, 1999 December 31, 1998
Rental Revenues $45,311 $33,116
Weighted average common
shares outstanding:
Basic 40,619 18,587
Diluted 40,619 18,587
Net income per common share:
Basic $0.33 $0.33
Diluted $0.33 $0.33
Funds from operations (1) $23,300 $20,760
Average shares outstanding (2)
Basic 43,640 43,502
Diluted 43,658 43,503
Funds from operations per
common share (2)
Basic $0.53 $0.48
Diluted $0.53 $0.48
Occupancy Rates December 31, 1999 December 31, 1998
Bulk Distribution Properties 95.5% 96.9%
Multitenant Distribution Properties 97.8% 97.7%
Workspace Properties 97.9% 97.9%
Weighted average total 96.9% 97.4%
(1) Calculated before minority interest, after preferred unit
distributions
(2) Calculated based on weighted average common shares outstanding
assuming conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
SUMMARY UNAUDITED ANNUAL RESULTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Year Ended (inception) through
December 31, 1999 December 31, 1998
Rental Revenues $157,471 $102,425
Weighted average common
shares outstanding:
Basic 37,084 18,587
Diluted 37,084 18,587
Net income per common share:
Basic $1.32 $1.17
Diluted $1.32 $1.17
Funds from operations (1) $88,525 $71,269
Average shares outstanding (2)
Basic 43,608 43,493
Diluted 43,632 43,587
Funds from operations per
common share (2)
Basic $2.03 $1.64
Diluted $2.03 $1.64
Occupancy Rates December 31, 1999 December 31, 1998
Bulk Distribution Properties 95.5% 96.9%
Multitenant Distribution Properties 97.8% 97.7%
Workspace Properties 97.9% 97.9%
Weighted average total 96.9% 97.4%
(1)Calculated before minority interest, after preferred unit
distributions
(2)Calculated based on weighted average common shares outstanding
assuming conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
December 31, 1999 December 31, 1998
(unaudited)
ASSETS
Rental Properties $1,507,834 $1,072,675
Less: Accumulated Depreciation (42,543) (17,290)
Properties Under Development 63,938 23,108
Net Real Estate Investments $1,529,229 $1,078,493
Cash and Cash Equivalents $22,007 $2,301
Rents and Other Receivables,
net of reserve for uncollectible
accounts of $574 and $312 at
December 31, 1999 and 1998,
respectively 3,828 2,872
Deferred Rent Receivable 6,079 2,638
Deferred Lease Acquisition Costs, net 23,913 17,362
Deferred Financing Costs, net 3,369 1,255
Other Assets 5,059 5,649
TOTAL ASSETS $1,593,484 $1,110,570
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $163,866 $48,206
Unsecured Debt 200,000 --
Line of Credit Borrowings 163,000 200,000
Accounts Payable and Accrued
Real Estate Taxes 11,143 7,820
Tenant Security Deposits
and Prepaid Rent 11,205 4,956
Distributions Payable 15,437 14,134
Other Liabilities 20,117 18,156
Total Liabilities $584,768 $293,272
MINORITY INTEREST
Cumulative Redeemable
Perpetual Preferred Units $189,805 $ --
Limited Partnership Units 57,169 468,311
Total Minority Interest $246,974 $468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par
value, 150,000,000 shares
authorized, 40,619,420 and
18,586,764 shares issued and
outstanding at December 31,
1999 and 1998, respectively $406 $186
Additional paid-in capital 767,774 348,912
Retained deficit (6,438) (111)
Total Shareholders' Equity $761,742 $348,987
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,593,484 $1,110,570
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
December 31, 1999 December 31, 1998
REVENUES
Rental Income $39,246 $28,475
Tenant Reimbursements 6,065 4,641
Interest and Other Income 216 6
Gain (Loss) on
Sale of Real Estate -- 572
Total Revenues $45,527 $33,694
EXPENSES
Property Operating $3,302 $2,500
Property Taxes 5,253 3,861
General and Administrative 2,327 2,301
Interest 8,133 3,692
Depreciation and Amortization 8,965 6,805
Total Expenses $27,980 $19,159
Income Before Minority Interest $17,547 $14,535
Minority Interest:
Preferred Units $(3,194) $ --
Limited Partnership Units (973) (8,329)
Net Income $13,380 $6,206
Weighted Average Shares Outstanding:
Basic 40,619 18,587
Diluted 40,619 18,587
Net Income per Common Share:
Basic $0.33 $0.33
Diluted $0.33 $0.33
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Year Ended (inception) through
December 31, 1999 December 31, 1998
(unaudited)
REVENUES
Rental Income $135,859 $89,044
Tenant Reimbursements 21,612 13,381
Interest and Other Income 996 1,120
Gain (Loss) on Sale
of Real Estate 2,751 572
Total Revenues $161,218 $104,117
EXPENSES
Property Operating $11,821 $6,579
Property Taxes 17,787 11,843
General and Administrative 8,902 6,815
Interest 25,360 7,009
Depreciation and Amortization 31,169 20,913
Settlement of Treasury Lock 2,492 --
Total Expenses $97,531 $53,159
Income Before Minority Interest $63,687 $50,958
Minority Interest:
Preferred Units $(6,009) $ --
Limited Partnership Units (8,630) (29,192)
Net Income $49,048 $21,766
Weighted Average Shares Outstanding:
Basic 37,084 18,587
Diluted 37,084 18,587
Net Income per Common Share:
Basic $1.32 $1.17
Diluted $1.32 $1.17
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
December 31, 1999 December 31, 1998
Net Income $13,380 $6,206
Add:
Minority Interest 4,167 8,329
Real Estate Related
Depreciation and Amortization 8,947 6,797
Preferred Unit Distributions (3,194) --
Net Gain on Sale of Real Estate -- (572)
Funds from Operations $23,300 $20,760
Weighted Average Shares
Outstanding (1)
Basic 43,640 43,502
Diluted 43,658 43,503
Funds from Operations per Share (1)
Basic $0.53 $0.48
Diluted $0.53 $0.48
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
December 31, 1999 December 31, 1998
Funds from Operations $23,300 $20,760
Adjustments:
Straightline Rental Income (1,105) (900)
Amortization of Deferred
Financing Costs 278 152
Leasing Commissions and
Tenant Improvements (1,066) (1,261)
Building Improvements (449) (185)
Funds Available for Distribution $20,958 $18,566
Funds Available for
Distribution per Share (1)
Basic $0.48 $0.43
Diluted $0.48 $0.43
(1) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Year Ended (inception) through
December 31, 1999 December 31, 1998
Net Income $49,048 $21,766
Add:
Minority Interest 14,639 29,192
Real Estate Related
Depreciation and Amortization 31,106 20,883
Settlement of Treasury Lock 2,492 --
Preferred Unit Distributions (6,009) --
Net Gain on Sale of Real Estate (2,751) (572)
Funds from Operations $88,525 $71,269
Weighted Average Shares
Outstanding (1)
Basic 43,608 43,493
Diluted 43,632 43,587
Funds from Operations per Share (1)
Basic $2.03 $1.64
Diluted $2.03 $1.64
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Year Ended (inception) through
December 31, 1999 December 31, 1998
Funds from Operations $88,525 $71,269
Adjustments:
Straightline Rental Income (3,470) (2,638)
Amortization of Deferred
Financing Costs 1,003 466
Leasing Commissions and
Tenant Improvements (4,770) (3,689)
Building Improvements (1,868) (1,158)
Funds Available for Distribution $79,420 $64,250
Funds Available for Distribution
per Share (1)
Basic $1.82 $1.47
Diluted $1.82 $1.47
(1) 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.cabottrust.com
CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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