BIRMINGHAM, Ala., April 21 /PRNewswire-FirstCall/ -- Colonial Properties
Trust (NYSE: CLP) (the "Company") today reported net income available to
common shareholders of $13.4 million or $0.50 per fully diluted share (EPS)
for the first quarter 2004; for the same period in 2003, net income available
to common shareholders was $12.1 million or $0.52 per fully diluted share.
Funds from operations (FFO) for the first quarter were $32.4 million, or $0.87
per fully diluted share/unit (FFOPS), compared to $29.6 million, or $0.87 per
share/unit for the same period a year ago. Per share numbers for 2004 are
impacted by the 2.1 million shares of common equity issued in April of 2003. A
reconciliation from 'net income available to common shareholders' to 'funds
from operations' is provided in the attached tables.
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On a same-property basis, the multifamily, office and retail divisions
posted net operating income (NOI) results of a 1.8 percent increase,
1.0 percent decrease and 0.3 percent increase, respectively, for the first
quarter 2004, as compared to the same period a year ago. Overall same-property
NOI growth for the quarter was 0.3 percent. Occupancies at the end of the
period for the Company's stabilized properties were 95 percent, 90 percent and
89 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.
"We are pleased to report a solid beginning to 2004 with first quarter
FFOPS ahead of our initial guidance. As the economy begins to show some signs
of expansion and job growth, we expect to see improvement in the same-property
performance, particularly in the multifamily division," stated Thomas H.
Lowder, chairman and chief executive officer. "Over the last five months, we
have acquired $120 million of assets which will drive strong external cash
flow growth. At the same time, we have prudently managed our Company's
capitalization. We have modified $100 million of our preferred units, saving
approximately $1.6 million annually, and we fixed the interest rate on
$100 million of our debt through a 7-year 4.80% issuance of senior unsecured
notes."
Investment and Disposition Activities
During the quarter, the Company acquired a 215,000 square foot office
property in Huntsville, Alabama. The property, 100% occupied, is adjacent to
existing assets in the Company's Huntsville portfolio, bringing the holdings
in the market to approximately 1.4 million square feet.
In April, the Company acquired a 320-unit multifamily asset, Colonial
Grand at Arringdon, in the Raleigh/Durham, North Carolina market. Development
of the property was completed in 2003 and is currently 90% occupied with
strong lease-up opportunities. Colonial Properties Trust has been managing
the property throughout the lease-up period.
Additionally, the Company acquired a 165,000 square foot retail lifestyle
center, Kingwood Commons, in Houston, Texas. Kingwood Commons, anchored by
grocery retailer Randall's, includes such retailers as Talbot's, Chico's, Ann
Taylor Loft, Jos. A. Banks, Bombay/Bombay Kids, James Avery, and Carrabba's
Italian Grill. Both acquisitions were funded through the Company's revolving
line of credit.
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 the quarter, the Company modified its privately held $100 million
preferred units which were callable in February 2004. The distribution on the
units was reduced to 7.25% from 8.875% and extended through February 2009.
Subsequent to the end of the first quarter, the Company issued $100
million in senior unsecured notes due in April 2011. The notes carry a coupon
of 4.80% and were priced to yield 4.82%. The proceeds of the transaction were
used to pay down the Company's revolving line of credit.
Conference Call and Supplemental Materials
The Company will hold its quarterly conference call Thursday, April 22nd
at 1:00 pm Central Time. The call will include a review of the Company's
first 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
6459298. 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 $3.2 billion. The cornerstone of Colonial Properties'
success is its live, work and shop diversified investment strategy. The
Company manages or leases 21,300 apartment units, 6.7 million square feet of
office space and 15.7 million square feet of retail shopping space.
Additional information on Colonial Properties Trust is available on the
Internet at http://www.colonialprop.com . The Company, headquartered in Birmingham,
Ala., is listed on the New York Stock Exchange under the symbol "CLP" and is
included in the S&P SmallCap 600 Index.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for the historical information contained herein, this news
release contains forward-looking statements regarding Company and property
performance, and is based on the Company's current expectations and judgment.
Actual results could vary materially depending on risks and uncertainties
inherent to general and local real estate conditions, competitive factors
specific to markets in which Colonial Properties operates, legislative or
other regulatory decisions, future interest rate levels or capital markets
conditions. The Company assumes no liability to update this information. For
more details, please refer to the Company's SEC filings, including its most
recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2004
BALANCE SHEET
($ in 000s) As of As of
3/31/2004 12/31/2003
ASSETS
Real Estate Investments
Operating Properties $2,404,608 $2,378,835
Undeveloped Land & Construction in
Progress 117,357 114,262
Total Real Estate, before Depreciation 2,521,965 2,493,097
Less: Accumulated Depreciation (437,867) (419,827)
Real estate assets held for sale, net 5,775 11,691
Net Real Estate Assets 2,089,873 2,084,961
Cash and Equivalents 20,781 8,070
Restricted Cash 2,010 1,879
Accounts Receivable, net 9,659 10,262
Notes Receivable 3,425 2,504
Prepaid Expenses 5,814 6,587
Deferred Debt and Lease Costs 25,673 25,832
Investment in Unconsolidated Subsidiaries 38,353 37,496
Other Assets 17,144 17,336
Total Assets $2,212,732 $2,194,927
LIABILITIES
Long-Term Liabilities
Unsecured Credit Facility $214,810 $205,935
Notes and Mortgages Payable 1,057,228 1,050,145
Mortgages Payable related to real
estate held for sale 3,400 11,785
Total Long-Term Liabilities 1,275,438 1,267,865
Other Liabilities 56,938 55,275
Total Liabilities 1,332,376 1,323,140
MINORITY INTEREST & EQUITY
Preferred Shares and Units, at
Liquidation Value
Series B 7 1/4%, Preferred Units 100,000 100,000
Series C 9 1/4%, Preferred Shares 50,000 50,000
Series D 8 1/8%, Preferred Shares 125,000 125,000
Total Preferred Shares and Units,
at Liquidation Value 275,000 275,000
Common Equity, including Minority Interest 605,356 596,787
Total Equity, including Minority Interest 880,356 871,787
Total Liabilities and Equity $2,212,732 $2,194,927
SHARES & UNITS OUTSTANDING, END OF PERIOD
(shares and units in 000s) As of As of
3/31/2004 12/31/2003
Basic
Shares 26,933 26,395
Operating Partnership Units (OP Units) 10,361 10,361
Total Shares & OP Units 37,294 36,756
Dilutive Common Share Equivalents 375 266
Diluted
Shares 27,308 26,661
Total Shares & OP Units 37,669 37,022
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2004
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data)
Three Months Ended
3/31/2004 3/31/2003
Revenue
Minimum Rent $69,426 $64,325 7.9%
Percentage Rent 681 566 20.3%
Tenant Recoveries 9,731 10,124 -3.9%
Other Property Related Revenue 4,480 5,108 -12.3%
Other Non-Property Related Revenue 1,330 1,098 21.1%
Total Revenue 85,648 81,221 5.5%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 6,108 5,737 6.5%
Salaries and Benefits 4,024 3,596 11.9%
Repairs and Maintenance 8,474 8,167 3.8%
Taxes, Licenses, and Insurance 8,231 7,810 5.4%
Total Property Operating Expenses 26,837 25,310 6.0%
General and Administrative 5,460 4,803 13.7%
Depreciation 20,836 19,312 7.9%
Amortization 2,557 1,963 30.3%
Total Operating Expenses 55,690 51,388 8.4%
Income from Operations 29,958 29,833 0.4%
Other Income (Expense)
Interest Expense (16,308) (16,336) -0.2%
Income from Investments 249 85 192.9%
Loss on Hedging Activities (80) (237) -66.2%
Gain on Sale of Property 1,002 29 3355.2%
Other (20) 181 -111.0%
Total Other Expense (15,157) (16,278) -6.9%
Income before Minority Interest
& Discontinued Operations 14,801 13,555 9.2%
Minority Interest
Minority Interest in CRLP - Preferred (2,055) (2,218) -7.3%
Minority Interest in CRLP - Common (2,532) (2,329) 8.7%
Total Minority Interest (4,587) (4,547) 0.9%
Income from Continuing Operations 10,214 9,008 13.4%
Discontinued Operations
Income from Discontinued Operations 149 548 -72.8%
Gain on Disposal of Discontinued
Operations 9,391 9,627 -2.5%
Minority Interest in Discontinued
Operations (2,670) (3,183) -16.1%
Income from Discontinued Operations 6,870 6,992 -1.7%
Net Income 17,084 16,000 6.8%
Dividends to Preferred Shareholders (3,695) (3,891) -5.0%
Net Income Available to Common
Shareholders $13,389 $12,109 10.6%
Earnings per Share - Basic
Continuing Operations $0.24 $0.22 9.1%
Discontinued Operations 0.26 0.30 -13.3%
EPS - Basic $0.50 $0.52 -3.8%
Earnings per Share - Diluted
Continuing Operations $0.24 $0.22 9.1%
Discontinued Operations 0.26 0.30 -13.3%
EPS - Diluted $0.50 $0.52 -3.8%
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2004
FIRST QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
($ in 000s, except per share data)
Three Months Ended
3/31/2004 3/31/2003
Net Income Available to Common
Shareholders $13,389 $12,109 10.6%
Minority Interest in CRLP (Operating
Ptr Unitholders) 5,202 5,512 -5.6%
Total 18,591 17,621 5.5%
Adjustments - Consolidated Properties
Depreciation - Real Estate 20,728 19,381 7.0%
Amortization - Real Estate 1,399 1,125 24.4%
Remove: Gain/(Loss) on Sale of
Property (10,393) (9,656) 7.6%
Include: Gain/(Loss) on Sale of
Undepreciated Property 1,008 151 567.5%
Total Adjustments - Consolidated 12,742 11,001 15.8%
Adjustments - Unconsolidated Properties
Depreciation - Real Estate 1,041 940 10.7%
Amortization - Real Estate 16 32 -50.0%
Remove: Gain/(Loss) on Sale of
Property - -
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Total Adjustments - Unconsolidated 1,057 972 8.7%
Funds from Operations $32,390 $29,594 9.4%
FFO per Share
Basic $0.87 $0.88 -0.1%
Diluted $0.87 $0.87 -0.6%
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.
FIRST QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
(shares and units in 000s)
Three Months Ended
3/31/2004 3/31/2003
Basic
Shares 26,670 23,236 14.8%
Operating Partnership Units (OP Units) 10,361 10,576 -2.0%
Total Shares & OP Units 37,031 33,812 9.5%
Dilutive Common Share Equivalents 375 169 121.8%
Diluted
Shares 27,045 23,405 15.6%
Total Shares & OP Units 37,406 33,981 10.1%
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2004
FIRST QUARTER SEGMENT DATA & RECONCILIATION
Three Months Ended
3/31/2004 3/31/2003
Net Operating Income (NOI)
Divisional Same-Property NOI
Multifamily 14,914 14,656 1.8%
Office 15,682 15,846 -1.0%
Retail 25,571 25,501 0.3%
Total Same-Property 56,167 56,003 0.3%
Less: Unconsolidated Assets (1,922) (1,831)
Same-Property NOI, Consolidated 54,245 54,172
Divisional Non Same-Property NOI
Multifamily 1,261 669
Office 1,319 38
Retail 1,627 1,712
Total Non-Same Property 4,207 2,419
Less: Unconsolidated Assets (456) (438)
Non Same-Property NOI, Consolidated 3,751 1,981
Divisional Total NOI
Multifamily 16,175 15,325 5.5%
Office 17,001 15,884 7.0%
Retail 27,198 27,213 -0.1%
Total Divisional NOI 60,374 58,422 3.3%
Less: NOI, Unconsolidated (2,378) (2,269)
2003 Discontinued Operations - (529)
2004 Discontinued Operations (471) (656)
Unallocated Corporate Rev 1,330 991
Other Expense (44) (48)
General & Administrative Expenses (5,460) (4,803)
Depreciation (20,836) (19,312)
Amortization (2,557) (1,963)
Income from Operations, restated
for additional discontinued
operations 29,958 29,833
Total Other Income (Expense) (15,157) (16,278)
Income from Continuing Operations
before Extraordinary Items,
Minority Interest and
Discontinued Operations,
as restated for additional
discontinued operations 14,801 13,555
Add: 2003 Discontinued Operations
NOI, post 1Q 2003 - 89
2004 Discontinued Operations NOI - 656
Discontinued Operations
Deprec/Amortization - (203)
Discontinued Ops Interest Expense - (240)
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
per corresponding 10-K or 10-Q 14,801 13,857
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
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CONTACT:
Sandra Lee Robertson, Senior Vice President -
Finance of Colonial Properties Trust, +1-205-250-8788
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