$0.59 in FFO Per Share; $2.26 for Full Year 2000; 11.3% Increase Over 1999
Highlights include:
* Quarterly FFO per share of $0.59; an 11.3% increase in quarterly FFO
per share growth compared to the same period for the prior year
* Annual FFO per share of $2.26; an 11.3% increase over previously
reported full year 1999 results
* Portfolio occupancy averaged 97.2% in 2000 and rent growth averaged
13.4%
* Annual cash NOI growth of 3.0% for 2000; fourth quarter cash NOI growth
of 3.1%
* Completed and fully leased $46 million in development projects during
year at 13.7% yields
* Acquired $152 million of properties at 10.2% yields; acquired an
additional $75 million of properties for joint venture programs for GE
Capital Real Estate and Chase Capital Partners during the year
* Launched new $23 million joint venture development program with
Teachers Insurance Annuity Association ("TIAA") funding $18 million in
equity capital
* Completed dispositions of $22 million during year for a book gain of
$2.6 million
* Renewed $325 million revolving credit facility through 2003 with a
borrowing rate of LIBOR plus 100 basis points
* Expanded share float by over 6 million shares since third quarter,
aided by successful secondary offering
BOSTON, Feb. 21 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported that for the year ended December 31, 2000 rental revenues were
$212.1 million and Funds from Operations ("FFO") per share was $2.26. This
represents revenue growth of 34.7% and FFO per share growth of 11.3% compared
to full year results reported for the prior year. For the quarter, FFO per
share was $0.59, an 11.3% increase over fourth quarter 1999 results. FFO is
generally considered to be the primary operating performance measure for the
REIT industry.
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
commented, "During the year 2000, the underlying value of Cabot Industrial
Trust continued to grow. Our growth in FFO per share has averaged 12.1% per
annum since inception."
"During the year, we enhanced our portfolio through an active investment
program by continuing to focus on locations at the connecting points of the
national transportation infrastructure and within the preferred employment
areas. Over the course of the year, we attracted commitments of private
equity capital totaling $153 million from Chase Capital Partners, GE Capital
Real Estate and TIAA. In working with these investors, we will continue to
improve our return on capital and strengthen our market presence."
Internal Growth in 2000 of 3.0%; Rent Growth of 13.4%
Over the course of 2000, the company leased 6.6 million square feet,
achieved rental growth of 13.4% on new leases, and maintained occupancy at an
average level of 97.2%. Rent growth for workspace was strongest at 16.5%,
followed by multitenant properties at 14.2% and bulk properties at 9.1%.
Same store cash basis NOI grew by 3.0% over the course of 2000 and by 3.1% in
the fourth quarter. 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 20.4% at the end of 1998 to 28.5% at the end of 2000.
$152 Million In Acquisitions; Additional $75 Million in Joint Venture
Acquisitions
Cabot continued its highly selective individual property acquisition
strategy. In 2000, Cabot completed 13 separate acquisitions for $152 million
at an average stabilized yield of 10.2%. Cabot's current acquisition focus is
on behalf of its investment partnerships. In working with these investors,
Cabot will continue to improve its return on capital and strengthen its market
positions. Over the year, Cabot completed approximately $75 million in
acquisitions for these programs.
Completed and Fully Leased $46 Million in Development at 13.7% Yields
During the year, Cabot completed and fully leased development projects
costing $46 million, which generated unleveraged yields of 13.7%. This
investment included developments in the Atlanta, Baltimore/Washington D.C.,
Dallas and Los Angeles markets.
Additionally, projects with estimated costs of $93 million were shell
complete or under construction at year-end. These projects are 68% leased,
and costs of approximately $60 million had been funded through
December 31, 2000.
Strong Capital Base - Modest Future Refinancing Requirements
During the year, Cabot issued $50 million of private perpetual preferred
equity with a weighted average coupon of 8.9%. Additionally, the company
accessed the medium term note market, issuing $40 million notes at 8.5% and
$15 million notes at 8.2%.
During the fourth quarter, the company also renewed its $325 million
revolving credit facility. The new line has a borrowing rate of 100 basis
points over LIBOR.
Additionally, Cabot's share float has expanded by approximately 6 million
shares as a result of a successful secondary offering for a large shareholder
and other market transactions.
Conference Call -- The Company will hold its quarterly investor/analyst
conference call to discuss 2000 fourth quarter and year-end results and
provide future earnings guidance on Thursday, February 22, 2001, beginning at
1:00 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
March 1, 2001. The telephone number for the replay is (800) 428-6051 and the
meeting identification number is 153698.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Atlanta, Baltimore, Charlotte, Chicago, Cincinnati, Dallas,
Los Angeles, Orlando and Phoenix, which specializes in the ownership,
acquisition, and development of industrial properties. It owns 360 properties
containing 42 million square feet in 21 states. The Company also manages an
additional 11 million square feet of property for investment advisory accounts
and joint ventures. 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 Quarter Quarter
Ended Ended Ended
December 31, December 31, December 31,
2000 1999 1998
Rental Revenues $ 55,633 $ 45,311 $ 33,116
Weighted average common shares
outstanding:
Basic 40,625 40,619 18,587
Diluted 40,625 40,619 18,587
Net income per common share:
Basic $ 0.40 $ 0.33 $ 0.33
Diluted $ 0.40 $ 0.33 $ 0.33
Funds from operations (1) $ 25,821 $ 23,300 $ 20,760
Average shares outstanding (2)
Basic 43,668 43,640 43,502
Diluted 43,736 43,658 43,503
Funds from operations per
common share (2)
Basic $ 0.59 $ 0.53 $ 0.48
Diluted $ 0.59 $ 0.53 $ 0.48
Occupancy Rates December 31, December 31, December 31,
2000 1999 1998
Bulk Distribution
Properties 96.5 % 95.5 % 96.9 %
Multitenant Distribution
Properties 95.6 % 97.8 % 97.7 %
Workspace Properties 96.4 % 97.9 % 97.9 %
Weighted average total 96.2 % 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
(inception)
Year Ended Year Ended through
December 31, December 31, December 31,
2000 1999 1998
Rental Revenues $ 212,096 $ 157,471 $ 102,425
Weighted average common
shares outstanding:
Basic 40,622 37,084 18,587
Diluted 40,622 37,084 18,587
Net income per common share:
Basic $ 1.36 $ 1.32 $ 1.17
Diluted $ 1.36 $ 1.32 $ 1.17
Funds from operations (1) $ 98,703 $ 86,033 (3) $ 71,269
Average shares outstanding (2)
Basic 43,668 43,608 43,493
Diluted 43,728 43,632 43,587
Funds from operations per
common share (2)
Basic $ 2.26 $ 1.97 (3) $ 1.64
Diluted $ 2.26 $ 1.97 (3) $ 1.64
Occupancy Rates December 31, December 31, December 31,
2000 1999 1998
Bulk Distribution
Properties 96.5 % 95.5 % 96.9 %
Multitenant Distribution
Properties 95.6 % 97.8 % 97.7 %
Workspace Properties 96.4 % 97.9 % 97.9 %
Weighted average total 96.2 % 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.
(3) Restated in accordance with NAREIT clarification of the definition
of Funds from Operations, which became effective January 1, 2000.
Funds from Operations and Funds from Operations per Share as
originally reported for the year ended December 31, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492
and were reported as $88,525 and $2.03, respectively.
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
December 31, 2000 December 31, 1999
(unaudited)
ASSETS
Rental Properties $ 1,653,777 $ 1,507,834
Less: Accumulated
Depreciation (73,857) (42,543)
Properties Under Development 64,296 63,938
Net Real Estate Investments $ 1,644,216 $ 1,529,229
Cash and Cash Equivalents $ 3,003 $ 22,007
Rents and Other Receivables, net
of reserve for uncollectible
accounts of $982 and $574 at
December 31, 2000 and 1999,
respectively 3,432 3,828
Deferred Rent Receivable 11,573 6,079
Deferred Lease Acquisition Costs, net 34,288 23,913
Deferred Financing Costs, net 5,460 3,369
Investment in and Advances to
Cabot Advisors 750 1,105
Investment in and Notes
Receivables from Joint Ventures 12,518 --
Assets Held for Sale 35,882 --
Other Assets 16,837 3,954
TOTAL ASSETS $ 1,767,959 $ 1,593,484
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $ 246,379 $ 163,866
Unsecured Debt 255,000 200,000
Line of Credit Borrowings 149,000 163,000
Accounts Payable and Accrued
Real Estate Taxes 12,545 11,143
Tenant Security Deposits and
Prepaid Rent 11,395 11,205
Distributions Payable 16,069 15,437
Other Liabilities 22,666 20,117
Total Liabilities $ 713,054 $ 584,768
MINORITY INTEREST
Cumulative Redeemable
Perpetual Preferred Units $ 238,205 $ 189,805
Limited Partnership Units 56,920 57,169
Total Minority Interest $ 295,125 $ 246,974
SHAREHOLDERS' EQUITY
Common Stock, $.01 par
value, 140,900,000 shares
authorized, 40,624,833
and 40,619,420 shares
issued and outstanding
at December 31, 2000 and 1999,
respectively $ 406 $ 406
Additional paid-in capital 768,303 767,774
Retained deficit (8,929) (6,438)
Total Shareholders'
Equity $ 759,780 $ 761,742
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,767,959 $ 1,593,484
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Quarter Quarter
Ended Ended Ended
December 31, December 31, December 31,
2000 1999 1998
REVENUES
Rental Income $ 47,045 $ 39,246 $ 28,475
Tenant Reimbursements 8,588 6,065 4,641
Interest and Other Income 825 216 6
Earnings and Fees from Joint
Ventures 435 -- --
Gain on Sale of Real Estate 2,639 -- 572
Total Revenues $ 59,532 $ 45,527 $ 33,694
EXPENSES
Property Operating $ 4,755 $ 3,302 $ 2,500
Property Taxes 6,001 5,253 3,861
General and Administrative 2,920 2,345 2,309
Interest 12,187 8,133 3,692
Depreciation and Amortization 11,053 8,947 6,797
Total Expenses $ 36,916 $ 27,980 $ 19,159
Income Before Minority Interest $ 22,616 $ 17,547 $ 14,535
Minority Interest:
Preferred Units $ (5,209) $ (3,194) $ --
Limited Partnership Units (1,213) (973) (8,329)
Net Income $ 16,194 $ 13,380 $ 6,206
Weighted Average Shares
Outstanding:
Basic 40,625 40,619 18,587
Diluted 40,625 40,619 18,587
Net Income per Common Share:
Basic $ 0.40 $ 0.33 $ 0.33
Diluted $ 0.40 $ 0.33 $ 0.33
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4,
1998
(inception)
Year Ended Year Ended through
December 31, December 31, December 31,
2000 1999 1998
(unaudited)
REVENUES
Rental Income $ 181,318 $ 135,859 $ 89,044
Tenant Reimbursements 30,778 21,612 13,381
Interest and Other Income 2,092 996 1,120
Earnings and Fees from Joint
Ventures 822 -- --
Gain on Sale of Real Estate 2,639 2,751 572
Total Revenues $ 217,649 $ 161,218 $ 104,117
EXPENSES
Property Operating $ 18,898 $ 11,821 $ 6,579
Property Taxes 24,086 17,787 11,843
General and Administrative 10,134 8,965 6,845
Interest 43,570 25,360 7,009
Depreciation and Amortization 42,009 31,106 20,883
Settlement of Treasury Lock -- 2,492 --
Total Expenses $ 138,697 $ 97,531 $ 53,159
Income Before Minority Interest $ 78,952 $ 63,687 $ 50,958
Minority Interest:
Preferred Units $ (19,619) $ (6,009) $ --
Limited Partnership Units (4,140) (8,630) (29,192)
Net Income $ 55,193 $ 49,048 $ 21,766
Weighted Average Shares
Outstanding:
Basic 40,622 37,084 18,587
Diluted 40,622 37,084 18,587
Net Income per Common Share:
Basic $ 1.36 $ 1.32 $ 1.17
Diluted $ 1.36 $ 1.32 $ 1.17
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Quarter Quarter
Ended Ended Ended
December 31, December 31, December 31,
2000 1999 1998
Net Income $ 16,194 $ 13,380 $ 6,206
Add:
Minority Interest 6,422 4,167 8,329
Real Estate Related
Depreciation and
Amortization 11,053 8,947 6,797
Preferred Unit
Distributions (5,209) (3,194) --
Net Gain on Sale of Real
Estate (2,639) -- (572)
Funds from Operations $ 25,821 $ 23,300 $ 20,760
Weighted Average Shares Outstanding(1)
Basic 43,668 43,640 43,502
Diluted 43,736 43,658 43,503
Funds from Operations per Share(1)
Basic $ 0.59 $ 0.53 $ 0.48
Diluted $ 0.59 $ 0.53 $ 0.48
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Quarter Quarter
Ended Ended Ended
December 31, December 31, December 31,
2000 1999 1998
Funds from Operations $ 25,821 $ 23,300 $ 20,760
Adjustments:
Straightline Rental Income (1,206) (1,105) (900)
Amortization of Deferred
Financing Costs 587 278 152
Leasing Commissions and
Tenant Improvements (2,337) (1,066) (1,261)
Building Improvements (715) (449) (185)
Funds Available for Distribution $ 22,150 $ 20,958 $ 18,566
Funds Available for Distribution per
Share (1)
Basic $ 0.51 $ 0.48 $ 0.43
Diluted $ 0.51 $ 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
(inception)
Year Ended Year Ended through
December 31, December 31, December 31,
2000 1999 1998
Net Income $ 55,193 $ 49,048 $ 21,766
Add:
Minority Interest 23,759 14,639 29,192
Real Estate Related
Depreciation and
Amortization 42,009 31,106 20,883
Preferred Unit
Distributions (19,619) (6,009) --
Net Gain on Sale of
Real Estate (2,639) (2,751) (572)
Funds from Operations $ 98,703 $ 86,033(2) $ 71,269
Weighted Average Shares
Outstanding (1)
Basic 43,668 43,608 43,493
Diluted 43,728 43,632 43,587
Funds from Operations per Share(1)
Basic $ 2.26 $ 1.97(2) $ 1.64
Diluted $ 2.26 $ 1.97(2) $ 1.64
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER
SHARE DATA)
Period from
February 4,
1998
Year Year (inception)
Ended Ended through
December 31, December 31, December 31,
2000 1999 1998
Funds from Operations $ 98,703 $ 86,033 (2) $ 71,269
Adjustments:
Straightline Rental
Income (5,587) (3,470) (2,638)
Amortization of
Deferred Financing
Costs 1,513 1,003 466
Leasing Commissions and
Tenant Improvements (7,819) (4,770) (3,689)
Building Improvements (2,607) (1,868) (1,158)
Funds Available for Distribution$ 84,203 $ 76,928 (2) $ 64,250
Funds Available for Distribution
per Share (1)
Basic $ 1.93 $ 1.76 (2) $ 1.47
Diluted $ 1.93 $ 1.76 (2) $ 1.47
(1) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding.
(2) Restated in accordance with NAREIT clarification of the
definition of Funds from Operations, which became effective
January 1, 2000. Funds from Operations and Funds from
Operations per Share as originally reported for the year ended
December 31, 1999 did not include the expense of the Settlement
of Treasury Lock of $2,492 and were reported as $88,525 and
$2.03, respectively.
SOURCE Cabot Industrial Trust
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http://www.cabottrust.com
Photo Notes:
NewsCom:
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AP Archive: http://photoarchive.ap.org
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CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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