$0.49 in FFO Per Share: 17% Growth in FFO Per Share
Highlights include:
-- Year over year growth of 17%; quarterly FFO per share of $0.49
-- First quarter occupancy at 97%; annual cash basis NOI growth of 4%
-- Completed 5 separate acquisitions for $68 million during quarter at 10%
yields
-- $13 million in developments have come on line to date at 11.8%
stabilized yields
BOSTON, April 28 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported funds from operations (FFO) per share of $0.49 for the quarter ended
March 31, 1999 compared to $0.42 on a pro forma basis for last year
representing a 17% increase in FFO per share. Funds available for
distribution were $0.44 for the quarter and $0.38 on a proforma basis for last
year. Cabot Industrial Trust completed its initial public offering on
February 4, 1998 and comparative results are shown herein on a proforma basis
after adjusting for a partial first quarter in 1998.
Ferdinand Colloredo-Mansfeld CEO and Chairman of Cabot Industrial Trust
reported, "All aspects of our business remain strong. We continue to
experience solid demand across the national industrial markets; leasing
remains strong not only across our existing portfolio but also for our
development properties. Further, our acquisition effort continues to benefit
from reduced levels of competition, particularly for smaller transactions. We
achieved strong growth in FFO per share, and remain well positioned for
continued steady growth."
Cabot's activities in the first quarter include:
Internal year-over-year growth of 4%
During the first quarter Cabot completed 1.4 million square feet of
leasing. Occupancy remains at 97% with tenant retention at 72%. Rent
increases on signed leases averaged 13%, with 29% for multitenant, 25% for
workspace and 3% for bulk. As a result of this strong activity and continued
attention to tenant relations throughout Cabot's seven regional property
management offices, same store cash basis NOI grew by 4% from first quarter
1998 to first quarter 1999.
Continued opportunity for "value" acquisitions: acquisition yields of 10%
Cabot continued its aggressive, highly selective individual property
acquisition strategy. During the first quarter it completed the acquisitions
of 34 properties for $68 million in five separate transactions. The 34
properties, located in the Cincinnati, Minneapolis, Baltimore/Washington D.C.
and Dallas markets, contain 1.7 million rentable square feet, of which 42% is
multitenant and 58% is workspace property. The properties were 98% leased and
were acquired at 10% yields.
Strong demand for development projects: 11.8% on stabilized projects
Cabot's development program is targeted toward projects with strong user
demand and reduced competition, primarily workspace and multitenant buildings.
Cabot's total development pipeline is well diversified, encompassing eleven
projects in eleven different submarkets in nine of its target markets.
Projects under development through March 31, 1999 total $89.3 million in
projected development costs and will add 1.8 million square feet of product.
Of these new properties, currently 29% have been leased or pre-leased. The
384,750 square feet in Orlando and Phoenix for which construction has been
finished are already fully leased at a blended annual stabilized yield of
11.8%. The remaining projects are located in Ontario, California, the
Baltimore-Washington Corridor, Northern Virginia, Dallas, Atlanta, Cincinnati,
and Broward County, Florida.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Baltimore, Chicago, Los Angeles, Dallas, Orlando and
Cincinnati that specializes in the ownership, acquisition, and development of
industrial properties with 242 properties containing 30 million square feet in
21 states at March 31, 1999. 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)through
March 31, 1999 March 31, 1998
Rental Revenues $34,138 $14,733
Weighted average common shares outstanding:
Basic 27,873 18,587
Diluted 27,873 18,587
Net income per common share:
Basic $0.28 $0.19
Diluted $0.28 $0.19
Funds from operations (A) $21,300 $11,300
Average shares outstanding (B)
Basic 43,522 43,420
Diluted 43,523 43,618
Funds from operations per share (B)
Basic $0.49 $0.26
Diluted $0.49 $0.26
Occupancy Rates March 31, 1999
Bulk Distribution Properties 97.5 %
Multitenant Distribution Properties 96.7 %
Workspace Properties 97.5 %
Weighted average total 97.3 %
(A) Calculated before minority interest
(B) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
1999 1998
(unaudited)
ASSETS
Rental Properties $1,150,535 $1,072,675
Less: Accumulated Depreciation (22,912) (17,290)
Properties Under Development 32,830 23,108
Net Real Estate Investments $1,160,453 $1,078,493
Cash and Cash Equivalents $34,558 $2,301
Rents and Other Receivables,
net of reserve for
uncollectible accounts of
$436 and $312 at March 31, 1999
and December 31, 1998, respectively 2,995 2,872
Deferred Rent Receivable 3,281 2,638
Deferred Lease Acquisition Costs, net 17,921 17,362
Deferred Financing Costs, net 1,910 1,255
Other Assets 3,971 5,649
TOTAL ASSETS $1,225,089 $1,110,570
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $149,784 $48,206
Line of Credit Borrowings 211,000 200,000
Accounts Payable and Accrued Real
Estate Taxes 8,808 7,820
Tenant Security Deposits and
Prepaid Rent 5,429 4,956
Distributions Payable 14,835 14,134
Other Liabilities 18,014 18,156
Total Liabilities $407,870 $293,272
MINORITY INTEREST $58,349 $468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value,
150,000,000 shares authorized,
40,518,271 and 18,586,764 shares
issued and outstanding at March 31,
1999 and December 31, 1998,
respectively $405 $186
Additional paid-in capital 761,168 348,912
Retained earnings (2,703) (111)
Total Shareholders' Equity $758,870 $348,987
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,225,089 $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) through
March 31, 1999 March 31, 1998
REVENUES
Rental Income $29,221 $12,842
Tenant Reimbursements 4,917 1,891
Interest and Other Income 202 474
Total Revenues $34,340 $15,207
EXPENSES
Property Operating $2,680 $1,042
Property Taxes 3,845 1,642
General and Administrative 2,185 1,068
Interest 4,315 155
Depreciation and Amortization 6,810 3,174
Settlement of Treasury Lock 2,492 -
Total Expenses $22,327 $7,081
Income Before Minority Interest $12,013 $8,126
Minority Interest $(4,322) $(4,648)
Net Income $7,691 $3,478
Weighted Average Shares Outstanding:
Basic 27,873 18,587
Diluted 27,873 18,587
Net Income per Common Share:
Basic $0.28 $0.19
Diluted $0.28 $0.19
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from February 4, 1998
Quarter Ended (Inception)through
March 31, 1999 March 31, 1998
Net Income $7,691 $3,478
Add:
Minority Interest 4,322 4,648
Real Estate Related Depreciation
and Amortization 6,795 3,174
Settlement of Treasury Lock 2,492 -
Funds from Operations $21,300 $11,300
Weighted Average Shares Outstanding (A)
Basic 43,522 43,420
Diluted 43,523 43,618
Funds from Operations per Share (A)
Basic $0.49 $0.26
Diluted $0.49 $0.26
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from February 4, 1998
Quarter Ended (Inception)through
March 31, 1999 March 31, 1998
Funds from Operations $21,300 $11,300
Adjustments:
Straightline Rental Income (643) (396)
Amortization of Deferred Financing Costs 164 6
Leasing Commissions and Tenant
Improvements (1,171) (551)
Building Improvements (435) (147)
Funds Available for Distribution $19,215 $10,212
Funds Available for Distribution
per Share (A)
Basic $0.44 $0.24
Diluted $0.44 $0.23
(A) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
SOURCE Cabot Industrial Trust
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CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900; or General
Info., Michael Lawson, or Analyst Info., Pamela King, 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
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