BIRMINGHAM, Ala., April 28 /PRNewswire-FirstCall/ -- Colonial Properties
Trust (NYSE: CLP) (the "Company") a real estate investment trust (REIT) that
owns a diversified portfolio of multifamily, office and retail properties,
today reported financial results for the quarter ended March 31, 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20030709/CLPLOGO-c )
For the first quarter of 2005, net income available to common shareholders
was $69.9 million or $2.51 per fully diluted share. In the first quarter of
2004, net income available to common shareholders was $13.4 million, or $0.50
per fully diluted share. The increase from first quarter 2004 is primarily
due to gains from the sales of Colonial Mall Gadsden and eight multifamily
properties. Total gains from dispositions were $91.8 million or $2.40 per
fully diluted share for the first quarter of 2005 compared to $9.4 million or
$0.25 per fully diluted share for the same period in 2004.
Funds from operations (FFO), a widely accepted measure of REIT
performance, increased to $34.0 million, or $0.89 per fully diluted share/unit
(FFOPS), representing a 3.0 percent increase on a per share/unit basis from
$32.4 million, or $0.87 per fully diluted share/unit in the first quarter
2004. A reconciliation of net income available to common shareholders to FFO
is provided in the attached tables.
Thomas H. Lowder, the Company's Chairman and Chief Executive Officer,
stated, "We began 2005 by executing successfully on key aspects of our growth
strategy. Chief among them was the completion of our merger with Cornerstone,
a multifamily REIT. In addition, we made progress toward our strategic
initiative of repositioning our assets with the first quarter divestment of
Colonial Mall Gadsden in Gadsden, AL and the subsequent divestment of Colonial
Mall Temple in Temple, TX, which closed early in the second quarter of 2005.
Both moves position the Company to unlock value by leveraging our expertise in
the multifamily and shopping center areas. Our purchases of two Class A
office properties in Tampa, FL and the retail shopping center in Houston, TX
further enhance the diversity of our portfolio."
Highlights
- Closed the merger with Cornerstone Realty Income Trust (NYSE: TCR)
("Cornerstone") on April 1, 2005.
- Completed $275 million unsecured senior note bond offering providing
balance sheet flexibility.
- Announced the appointment of John E. Tomlinson as Executive
Vice-President and Chief Accounting Officer for the Company.
- Increased dividend for the 12th consecutive year to $0.675 per common
share.
- One of only 314 public companies included on Mergent's 2005 Dividend
Achievers List.
- Multifamily:
-- Realized an increase of 6.7 percent in net operating income
(NOI) on a same-property basis over the comparable period in
2004; represents the sixth consecutive quarter of year-over-year
increases.
-- Posted occupancies for stabilized properties for quarter end of
96.4 percent, an increase of 170 basis points sequentially.
-- Commenced ownership and management of 23,000 multifamily units
formerly owned by Cornerstone on April 1, 2005.
-- Sold six wholly owned and two partially owned multifamily
properties as part of its geographic diversification strategy.
- Office:
-- On a same-property basis, NOI decreased 7.5 percent compared to
the first quarter of 2004.
-- Posted occupancies at period end for stabilized properties of
89.5 percent.
-- Acquired Colonial Place I & II (formerly Westshore Place I &
II), in Tampa, FL.
- Retail:
-- On a same-property basis, realized a 1.3 percent increase in NOI
from first quarter 2004.
-- Posted occupancy for stabilized properties of 91.0 percent.
-- Completed the planned sale of Colonial Mall Gadsden in March and
Colonial Mall Temple in April.
-- In keeping with its strategy of increasing its investments in
shopping center assets, acquired Colonial Promenade Portofino in
Houston, TX.
Acquisitions
On April 1, 2005, Colonial Properties completed its merger with
Cornerstone. At the completion of the merger, the Company owned or managed
more than 49,300 apartment units making it one of the largest multifamily
portfolios in the Sunbelt region of the United States. In connection with the
merger, the Company issued an additional 11.3 million common shares
representing approximately 77 percent of the Cornerstone shares outstanding
and 5.4 million Series E preferred depositary shares representing
approximately 23 percent of the Cornerstone shares outstanding.
The Company acquired two office buildings known as Colonial Place I & II
totaling 371,000 square-feet in Tampa, FL on February 2, 2005. The property's
largest tenant is Blue Cross Blue Shield and the buildings are 95 percent
occupied. Subsequent to the first quarter close, on April 5, 2005, the
Company purchased Mangrove Bay in Tampa, FL, a 214,000 square-foot office
asset which is currently 50 percent occupied.
On January 13, 2005 the Company purchased Colonial Promenade Portofino, a
373,000 square-foot retail shopping center in Houston, TX. The property is
82.3 percent leased and includes such tenants as Oshman's, Steinmart and Old
Navy.
Dispositions
On March 30, 2005, the Company sold six apartment communities totaling
2,074 units for $143.8 million excluding closing costs. In conjunction with
the sale, the Company paid off mortgage debt of $69.8 million at a blended
interest rate of 5.97 percent. The properties were approximately 94 percent
occupied with an average age of 10 years. Included in the sale were two
Colonial Grand apartment communities totaling 572 units located in Macon, GA
and Birmingham, AL and four Colonial Village apartment communities totaling
1,502 units located in Gainesville, FL; Augusta, GA; Bluffton, SC; and
Sarasota, FL. Additionally, the Company sold its 15 percent interest in two
partially owned apartment communities totaling 901 units for approximately
$8.1 million, of which $4.5 million was used to pay off the portion of
associated mortgage debt.
On March 31, 2005, the Company completed the sale of Colonial Mall Gadsden
located in Gadsden, AL. The total sales price was $58.8 million which
represented a capitalization rate of 8.1 percent. The mall was 96 percent
occupied upon disposition.
On April 15, 2005, the Company sold Colonial Mall Temple located in
Temple, TX for $33.5 million representing a capitalization rate of 9.0
percent. The mall was 91.1 percent occupied upon disposition.
Financing Activities
During the first quarter, the Company's operating partnership, Colonial
Realty Limited Partnership, completed an offering of $275 million, 4.750
percent senior unsecured notes due February 1, 2010. The notes were priced to
yield 4.751 percent, representing a 105 basis point spread over the 5-year
Treasury rate. Net proceeds of approximately $273.3 million were used to pay
down the Company's unsecured bridge facility and for general corporate
purposes. Lowder noted, "Through active marketing, the Company successfully
reduced its bond spreads with the latest offering."
Portfolio Overview - As of April 2005
Multifamily: The Company owns or manages approximately 49,300 units which
are currently 94.6 percent occupied. This is comprised of 126 wholly owned
properties totaling approximately 36,580 units and a partial interest in 31
properties with 8,619 units. Additionally, the Company provides third party
management services for approximately 4,100 units.
Office: Colonial Properties owns or manages 7.2 million square feet of
office space. The Company's office portfolio includes 29 wholly owned
properties and one partially owned property that together total 6.5 million
square feet. The Company manages six additional office properties totaling 0.7
million square-feet.
Retail: The Company owns or manages 15.3 million square feet of retail
space. These properties include 31 wholly owned and two partially owned
shopping centers totaling 6.4 million square feet as well as 13 wholly owned
and one partially owned regional mall with 8.5 million square feet. The
Company manages an additional four shopping centers with 0.3 million square
feet of space. The total retail portfolio is currently 91.0 percent occupied.
EPS and FFO Per Share Guidance
The Company's guidance for the second-quarter and full-year 2005 for fully
diluted EPS and FFOPS is set forth and reconciled below.
Second-Quarter 2005 Range Full-Year 2005 Range
Low - High Low - High
Fully Diluted EPS $0.13 - $1.53 $3.20 - $4.73
Plus: Real Estate
Depreciation &
Amortization 0.74 - 0.74 2.28 - 2.28
Less: Gain on
Sale of Assets ( - ) - (1.37) (1.80) - (3.25)
Fully Diluted FFOPS $0.87 - $0.90 $3.68 - $3.76
Looking ahead, Lowder stated, "We already see evidence in our portfolio of
improved market fundamentals. We are set to capitalize on the investments we
have made throughout our asset base."
For additional details of disposition and investment activities, see the
Company's detailed Supplemental Financial Highlights available on the
Company's website.
Conference Call and Supplemental Materials
Colonial Properties will hold its quarterly conference call today, April
28th at 1:00 p.m. Central time. The call will include a review of the
Company's first quarter 2005 performance and discussion of its strategy and
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
5272798. 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."
Colonial Properties produces a supplemental information package that
provides detailed information regarding operating performance, investing
activities and the Company's overall financial position. For a copy of
Colonial Properties' detailed Supplemental Financial Highlights, please visit
the Company's website at http://www.colonialprop.com under the "Investor
Relations: Financial Reporting" tab or contact Barbara Pooley in 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, Virginia, Tennessee, Texas, Arizona, Nevada and New
Mexico. Colonial Properties Trust performs development, acquisition,
management, leasing and brokerage services for its portfolio and properties
owned by third parties. The Company has a total market capitalization of
approximately $5 billion. The foundation of Colonial Properties' success is
its live, work and shop diversified investment strategy. The Company owns or
manages 49,300 apartment units, 7.2 million square-feet of office space and
15.3 million square-feet of retail shopping space. Additional information on
Colonial Properties Trust is available on the Internet
at http://www.colonialprop.com . The Company, headquartered in Birmingham, AL, is
listed on the New York Stock Exchange under the symbol "CLP" and is included
in the S&P SmallCap 600 Index
Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for the historical information contained herein, this news
release contains forward-looking statements regarding Company and property
performance, and is based on the Company's current expectations and judgment.
Actual results could vary materially depending on risks and uncertainties
inherent to general and local real estate conditions, competitive factors
specific to markets in which Colonial Properties operates, legislative or
other regulatory decisions, future interest rate levels or capital markets
conditions. The Company assumes no liability to update this information. For
more details, please refer to the Company's SEC filings, including its most
recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2005
BALANCE SHEET
($ in 000s) As of As of
03/31/2005 12/31/2004
ASSETS
Real Estate Investments
Operating Properties $2,702,651 $2,696,304
Undeveloped Land & Construction in
Progress 170,583 158,954
Total Real Estate, before
Depreciation 2,873,234 2,855,258
Less: Accumulated Depreciation (427,812) (437,635)
Real estate assets held for sale,
net 153,189 167,712
Net Real Estate Assets 2,598,611 2,585,335
Cash and Equivalents 146,317 10,725
Restricted Cash 4,613 2,333
Accounts Receivable, net 20,638 20,642
Notes Receivable 879 906
Prepaid Expenses 8,615 11,238
Deferred Debt and Lease Costs 43,659 36,750
Investment in Unconsolidated
Subsidiaries 64,935 65,472
Other Assets 83,030 67,942
Total Assets $2,971,297 $2,801,343
LIABILITIES
Long-Term Liabilities
Unsecured Credit Facility $253,520 $239,970
Notes and Mortgages Payable 1,677,438 1,615,817
Total Long-Term Liabilities 1,930,958 1,855,787
Other Liabilities 77,083 74,548
Total Liabilities 2,008,041 1,930,335
MINORITY INTEREST & EQUITY
Limited Partners' Interest in
Consolidated Partnership 1,397 1,389
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 686,859 594,619
Total Equity, including Minority
Interest in Operating Partnership 963,256 871,008
Total Liabilities, Minority Interest
and Equity $2,971,297 $2,801,343
SHARES & UNITS OUTSTANDING, END OF PERIOD
(shares and units in 000s) As of As of
03/31/2005 12/31/2004
Basic
Shares 28,007 27,599
Operating Partnership Units (OP Units) 10,296 10,373
Total Shares & OP Units 38,303 37,972
Dilutive Common Share Equivalents - 341
Diluted
Shares 28,007 27,940
Total Shares & OP Units 38,303 38,313
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2005
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data) Three Months Ended
03/31/2005 03/31/2004
Revenue
Minimum Rent $74,546 $58,511 27.4%
Percentage Rent 629 434 44.9%
Tenant Recoveries 8,747 6,981 25.3%
Other Property Related Revenue 4,542 3,772 20.4%
Other Non-Property Related
Revenue 3,306 1,330 148.6%
Total Revenue 91,770 71,028 29.2%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 6,635 5,303 25.1%
Salaries and Benefits 4,573 3,370 35.7%
Repairs and Maintenance 8,215 6,327 29.8%
Taxes, Licenses, and Insurance 9,611 6,878 39.7%
Total Property Operating
Expenses 29,034 21,878 32.7%
General and Administrative 8,401 5,460 53.9%
Depreciation 24,222 17,565 37.9%
Amortization 4,554 2,245 102.9%
Total Operating Expenses 66,211 47,148 40.4%
Income from Operations 25,559 23,880 7.0%
Other Income (Expense)
Interest Expense (23,696) (15,474) 53.1%
Income from Investments 100 105 -4.8%
Gain (Loss) on Hedging Activities 280 (80) 450.0%
Gain on Sale of Property 1,126 1,002 12.4%
Other (210) (20) -950.0%
Total Other Expense (22,400) (14,467) 54.8%
Income before Minority Interest
& Discontinued Operations 3,159 9,413 -66.4%
Minority Interest
Minority Interest of limited
partners (229) -
Minority Interest in CRLP -
Preferred (1,813) (2,055) -11.8%
Minority Interest in CRLP -
Common 698 (1,025) -168.1%
Total Minority Interest (1,344) (3,080) -56.4%
Income from Continuing Operations 1,815 6,333 -71.3%
Discontinued Operations
Income from Discontinued
Operations 6,685 5,537 20.7%
Gain (Loss) on Disposal of
Discontinued Operations 91,772 9,391 877.2%
Minority Interest in Discontinued
Operations (26,672) (4,177) 538.5%
Income from Discontinued Operations 71,785 10,751 567.7%
Net Income 73,600 17,084 330.8%
Dividends to Preferred Shareholders (3,695) (3,695) 0.0%
Net Income Available to Common
Shareholders $69,905 $13,389 422.1%
Earnings per Share - Basic
Continuing Operations $(0.07) $0.10 -170.0%
Discontinued Operations 2.58 0.40 545.0%
EPS - Basic $2.51 $0.50 402.0%
Earnings per Share - Diluted
Continuing Operations $(0.07) $0.10 -170.0%
Discontinued Operations 2.58 0.40 545.0%
EPS - Diluted $2.51 $0.50 402.0%
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2005
FIRST QUARTER FUNDS FROM OPERATIONS
(FFO) RECONCILIATION
($ in 000s, except per share data) Three Months Ended
03/31/2005 03/31/2004
Net Income Available to Common
Shareholders $69,905 $13,389 422.1%
Minority Interest in CRLP (Operating
Ptr Unitholders) 25,974 5,202 399.3%
Total 95,879 18,591 415.7%
Adjustments - Consolidated
Properties
Depreciation - Real Estate 25,227 20,728 21.7%
Amortization - Real Estate 3,587 1,399 156.4%
Remove: Gain/(Loss) on Sale of
Property (90,462) (10,393) 770.4%
Include: Gain/(Loss) on Sale of
Undepreciated Property 1,063 1,008 5.5%
Total Adjustments -
Consolidated (60,585) 12,742 -575.5%
Adjustments - Unconsolidated
Properties
Depreciation - Real Estate 1,173 1,041 12.7%
Amortization - Real Estate 1 16 -93.8%
Remove: Gain/(Loss) on Sale of
Property (2,440) -
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Total Adjustments -
Unconsolidated (1,266) 1,057 -219.8%
Funds from Operations $34,028 $32,390 5.1%
FFO per Share
Basic $0.89 $0.87 1.9%
Diluted $0.89 $0.87 3.0%
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
03/31/2005 03/31/2004
Basic
Shares 27,824 26,670 4.3%
Operating Partnership Units (OP
Units) 10,338 10,361 -0.2%
Total Shares & OP Units 38,162 37,031 3.1%
Dilutive Common Share Equivalents - 375 -100.0%
Diluted (1)
Shares 27,824 27,045 2.9%
Total Shares & OP Units 38,162 37,406 2.0%
Notes:
(1) For periods where the Company reported a net loss from continuing
operations (after preferred dividends), the effect of dilutive shares
has been excluded from per share computations as including such shares
would be anti-dilutive.
COLONIAL PROPERTIES TRUST
Financial Statements
First Quarter 2005
FIRST QUARTER SEGMENT DATA &
RECONCILIATION
Three Months Ended
03/31/2005 03/31/2004
Net Operating Income (NOI)
Divisional Same-Property NOI
Multifamily $13,807 $12,941 6.7%
Office 15,460 16,707 -7.5%
Retail 22,791 22,491 1.3%
Total Same-Property 52,058 52,139 -0.2%
Less: Unconsolidated Assets (899) (843)
Same-Property NOI, Consolidated 51,159 51,296
Divisional Non Same-Property NOI
Multifamily 9,255 3,234
Office 1,801 294
Retail 8,498 4,707
Total Non-Same Property 19,554 8,235
Less: Unconsolidated Assets (2,049) (1,535)
Non Same-Property NOI,
Consolidated 17,505 6,700
Divisional Total NOI
Multifamily 23,062 16,175 42.6%
Office 17,261 17,001 1.5%
Retail 31,289 27,198 15.0%
Total Divisional NOI 71,612 60,374 18.6%
Less: NOI, Unconsolidated (2,948) (2,378)
Less: Discontinued Operations (9,218) (10,128)
Unallocated Corporate Rev 3,306 1,297
Other Expense (16) (15)
General & Administrative Expenses (8,401) (5,460)
Depreciation (24,222) (17,565)
Amortization (4,554) (2,245)
Income from Operations, restated
for additional discontinued
operations 25,559 23,880
Total Other Expense (22,400) (14,467)
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
as restated for additional
discontinued operations 3,159 9,413
Add: Discontinued Operations
Income, post 1Q 2004 - 5,388
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
per corresponding 10-K or 10-Q $3,159 $14,801
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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http://www.colonialprop.com
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CONTACT:
Barbara M. Pooley, SVP - Investor Relations
of Colonial Properties Trust, +1-800-645-3917
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