Highlights include:
* Quarterly FFO per share of $0.60; growth of 11.1% over first quarter
2000
* Average rent increase of 13%; achieved 5.4% cash NOI growth
* Occupancy at 96.4% at quarter end
* Completed and fully leased $38 million of development projects,
including two joint venture developments, at yields to Cabot of 11.3%
* Initiated $110 million investment program with New York State Teachers'
Retirement System
* Acquired $39 million of properties on behalf of institutional
investment programs
BOSTON, April 25 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported that for the quarter ended March 31, 2001, rental revenues were
$56.4 million and funds from operations (FFO) per share on a diluted basis was
$0.60. This represents revenue growth of 13.3% and FFO per share growth of
11.1% compared to previously reported results for the first quarter 2000.
Funds from operations is generally considered to be the primary operating
performance measure for the REIT industry.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20000218/CABOTLOGO )
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
commented, "Demand for our properties, including our development projects, has
continued at a very good pace. We experienced strong rent growth across the
portfolio, particularly for Workspace properties. Occupancy levels remain
very high at 96.4%. Notably, pre-leasing for our development properties is
also high, at 56% for properties under construction or at shell completion."
Rent growth of 13%; occupancy of 96.4%; same store cash NOI growth of 5.4%
Over the course of the first quarter, the Company leased 1.3 million
square feet, achieved rent growth of 13% on new leases, and increased
occupancy by 20 basis points. Rent growth for Workspace properties was
strongest at 27.3%. Growth for Multi-tenant properties was flat. Same store
cash basis net operating income (NOI) grew by 5.4% over the first quarter of
2000, excluding development properties available for lease at the beginning of
the period and including termination payments. Including development
properties, same store NOI growth was 7.2%. If lease termination payments and
developments were excluded, same store NOI growth was 2.0%.
Development achieves 11.3% stabilized yields
Cabot currently has $55.7 million under construction or at shell
completion of which $40.1 million has already been funded. Five development
projects totaling $37.7 million were completed and fully leased in the first
quarter at yields to Cabot of 11.3%. Of these five projects, two joint
venture developments with TIAA totaling $22.6 million were completed and fully
leased.
Acquisition activity focused on institutional investment programs
During the quarter, Cabot initiated the investment of an additional
$110 million for its separate account investment advisory program with New
York State Teachers. Cabot now has four active institutional investment
programs with New York State Teachers, GE Capital Real Estate, TIAA and JP
Morgan Partners. During the quarter, Cabot closed $39 million in investments
on behalf of programs for GE Capital Real Estate and New York State Teachers.
Conference Call -- The Company will hold its quarterly investor/analyst
conference call on April 26, 2001 beginning at 1:00 EDT. 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 May 5, 2001. The telephone number for the replay is
800-428-6051 and the meeting identification number is 175390.
Cabot Industrial Trust is a publicly held real estate investment trust
with $1.8 billion in total assets. The Company's investment strategy is
focused exclusively on the industrial property sector where it seeks to own
high quality, functional buildings. As of March 31, 2001, the Company owned
360 warehouse, distribution or workspace properties in 19 principal markets
throughout the nation. The Company targets locations in major metropolitan
areas, which the Company believes have the best long-term prospects, based on
employment and distribution trends as well as actual or potential land
scarcity. The Company seeks to grow cash flows and shareholder value by
focusing on the following: active property management and tenant marketing
and leasing; disciplined value-based acquisitions; property development; and
investment advisory and co-investment programs with major institutional
investors.
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 Quarter Ended
March 31, March 31, March 31,
2001 2000 1999
Rental Revenues $56,422 $49,808 $34,138
Weighted average common shares
outstanding:
Basic 40,644 40,619 27,873
Diluted 40,644 40,619 27,873
Net income per common share:
Basic $0.39 $0.31 $0.28
Diluted $0.39 $0.31 $0.28
Funds from operations (1) $26,160 $23,496 $18,808 (3)
Average shares outstanding (2)
Basic 43,669 43,668 43,522
Diluted 43,772 43,699 43,523
Funds from operations per common
share (2)
Basic $0.60 $0.54 $0.43 (3)
Diluted $0.60 $0.54 $0.43 (3)
Occupancy Rates March 31, 2001 March 31, 2000 March 31, 1999
Bulk Distribution
Properties 96.8 % 97.3 % 97.5 %
Multi-tenant Distribution
Properties 96.1 % 96.0 % 96.7 %
Workspace Properties 96.0 % 97.7 % 97.5 %
Weighted average total 96.4 % 96.9 % 97.3 %
(1) Calculated before minority interest and 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 quarter ended March 31, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492
and were reported as $21,300 and $0.49, respectively.
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, 2001 December 31, 2000
(unaudited)
ASSETS
Rental Properties $1,656,697 $1,653,777
Less: Accumulated Depreciation (81,256) (73,857)
Properties Under Development 61,882 64,296
Net Real Estate Investments $1,637,323 $1,644,216
Cash and Cash Equivalents $6,285 $3,003
Rents and Other Receivables, net of
reserve for uncollectible accounts
of $1,136 and $982 at March 31,
2001 and December 31, 2000,
respectively 4,619 3,432
Deferred Rent Receivable 12,641 11,573
Deferred Lease Acquisition Costs,
net 38,620 34,288
Deferred Financing Costs, net 5,196 5,460
Investment in and Advances to Cabot
Advisors 1,945 750
Investment in and Notes Receivables
from Joint Ventures 18,043 12,518
Assets Held for Sale 26,266 35,882
Other Assets 31,631 16,837
TOTAL ASSETS $1,782,569 $1,767,959
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $245,279 $246,379
Unsecured Debt 255,000 255,000
Line of Credit Borrowings 162,000 149,000
Accounts Payable and Accrued
Real Estate Taxes 13,272 12,545
Tenant Security Deposits and
Prepaid Rents 10,380 11,395
Distributions Payable 19,119 16,069
Other Liabilities 23,160 22,666
Total Liabilities $728,210 $713,054
MINORITY INTEREST
Cumulative Redeemable Perpetual
Preferred Units $238,205 $238,205
Limited Partnership Units 56,259 56,920
Total Minority Interest $294,464 $295,125
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value,
140,900,000 shares authorized,
40,659,128 and 40,624,833 shares
issued and outstanding at
March 31, 2001 and December 31,
2000, respectively $406 $406
Additional paid-in capital 768,944 768,303
Retained deficit (8,212) (8,929)
Accumulated Other Comprehensive Income (1,243) --
Total Shareholders' Equity $759,895 $759,780
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,782,569 $1,767,959
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended Quarter Ended
March 31, March 31, March 31,
2001 2000 1999
REVENUES
Rental Income $47,764 $42,749 $29,221
Tenant Reimbursements 8,658 7,059 4,917
Gain on Sale of Real Estate 949 -- --
Earnings and Fees from Joint
Ventures and Advisory Clients 821 -- --
Interest and Other Income 341 294 202
Total Revenues $58,533 $50,102 $34,340
EXPENSES
Property Operating $5,324 $4,546 $2,680
Property Taxes 6,503 5,898 3,845
General and Administrative 2,685 2,481 2,185
Interest 11,708 9,450 4,315
Depreciation and Amortization 10,085 9,823 6,810
Settlement of Treasury Lock -- -- 2,492
Total Expenses $36,305 $32,198 $22,327
Income Before Minority Interest $22,228 $17,904 $12,013
Minority Interest:
Preferred Units $(5,294) $(4,211) $--
Limited Partnership Units (1,173) (956) (4,322)
Net Income $15,761 $12,737 $7,691
Weighted Average Shares Outstanding:
Basic 40,644 40,619 27,873
Diluted 40,644 40,619 27,873
Net Income per Common Share:
Basic $0.39 $0.31 $0.28
Diluted $0.39 $0.31 $0.28
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended Quarter Ended
March 31, 2001 March 31, 2000 March 31, 1999
Net Income $15,761 $12,737 $7,691
Add:
Minority Interest 6,467 5,167 4,322
Real Estate Related
Depreciation and
Amortization 10,085 9,803 6,795
Preferred Unit Distributions (5,294) (4,211) --
Net Gain on Sale of Real
Estate (949) -- --
Company's Share of Joint
Venture Depreciation and
Amortization 90 -- --
Funds from Operations $26,160 $23,496 $18,808 (2)
Weighted Average Shares
Outstanding (1)
Basic 43,669 43,668 43,522
Diluted 43,772 43,699 43,523
Funds from Operations
per Share (1)
Basic $0.60 0.54 0.43 (2)
Diluted $0.60 0.54 0.43 (2)
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended Quarter Ended
March 31, 2001 March 31, 2000 March 31, 1999
Funds from Operations $26,160 $23,496 $18,808
Adjustments:
Straightline Rental Income (1,128) (1,360) (643)
Amortization of Deferred
Financing Costs 482 313 164
Leasing Commissions and
Tenant Improvements (2,355) (1,502) (1,171)
Building Improvements (578) (535) (435)
Funds Available for
Distribution $22,581 $20,412 $16,723 (2)
Funds Available for Distribution
per Share (1)
Basic $0.52 $0.47 $0.38 (2)
Diluted $0.52 $0.47 $0.38 (2)
(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 quarter ended March 31, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492
and were reported as $21,300 and $0.49, respectively.
SOURCE Cabot Industrial Trust
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Related links:
http://www.cabottrust.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000218/CABOTLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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