First Quarter Highlights:
* Completion of $172.5 million IPO and $20 million concurrent private
placement on February 4
* Quarterly pro forma FFO per share of $0.42 or $0.26 for the partial
quarter; quarterly dividend rate of $0.325 per share or $0.202 for the
partial quarter
* $185 million in new investments through March 31
* Closing of a $325 million unsecured line of credit to facilitate growth
* Opening of three offices in Dallas, Los Angeles and Orlando
BOSTON, April 29 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported pro forma funds from operations (FFO) per share of $0.42 for the
quarter ended March 31, 1998. Cabot Industrial Trust completed its initial
public offering (IPO) on February 4, 1998. Actual FFO of $0.26 per share
therefore reflects a partial quarter and comparative results are not
available.
"During the past quarter we achieved a number of significant milestones,
including completing our initial public offering and acquiring $185 million in
properties," said Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot
Industrial Trust. "We also opened offices in Dallas, Los Angeles and Orlando,
thereby further internalizing property management so that we now manage
11.2 million square feet of property in-house."
In February and March 1998, Cabot announced the closing of 13 separate
acquisitions, increasing its presence in nine of its target markets, including
Atlanta, Chicago, Cincinnati/Northern Kentucky, Dallas, Harrisburg, Los
Angeles, Orlando, Phoenix and San Diego, and added a new target market in
Minneapolis. The 29 properties acquired include a total of 4.4 million square
feet, of which 30% is workspace. These acquisitions shift the revenue mix so
that workspace tenants account for 24% of annualized net rents, up from 22% at
the time of the Company's IPO. These properties are currently 91% occupied
and upon stabilization are expected to have average yields of 9.2% based
upon current market conditions. "These transactions are consistent with our
growth strategy of focusing on smaller acquisitions within each of our three
targeted industrial property segments throughout the United States," said Mr.
Colloredo-Mansfeld.
Cabot's acquisitions were financed in part by the $192.5 million gross
proceeds of its IPO and concurrent private placement. Additional financing is
now available from a $325 million unsecured line of credit provided by a
syndicate of ten banks in March. Franz Colloredo-Mansfeld, the Company's
Chief Financial Officer, commented, "Cabot is well positioned to finance its
growth going forward. Today we have a debt-to-total market capitalization
ratio of less than 2%. Our capital structure will provide for significant
growth without returning to the equity markets."
Robert E. Patterson, the Company's President, added "By opening three new
offices Cabot also achieved progress in executing its long-term strategy of
establishing even closer relations with its tenants by internalizing property
management. The offices are staffed by the same seasoned managers we have
been working with for years. By bringing this function in-house, we can
better respond to the needs of our tenants on a cost-effective basis.
Additionally, these offices will allow Cabot to better support its development
activities, including our previously announced development of a 105,000 square
foot project near the entrance of the Orlando International Airport."
Cabot Industrial Trust is a fully integrated real estate company that
specializes in the ownership, acquisition and development of industrial
properties. Its portfolio currently includes 152 properties containing over
23 million square feet in 22 states. The Company focuses on a broad spectrum
of industrial property types nationwide, including large bulk distribution
facilities, multi-tenant distribution facilities and workspace properties.
Cabot Industrial Trust closed its initial public offering of 8,625,000 common
shares and a concurrent private placement of 1,000,000 shares to Morgan
Stanley Asset Management on February 4, 1998.
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, 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
(inception) through
March 31, 1998
Rental revenues $14,733
Net income available to common shareholders (A) $3,478
Weighted average common shares outstanding:
Basic 18,587
Diluted 18,587
Net income per common share:
Basic $0.19
Diluted $0.19
Funds from operations (C) $11,300
Average shares outstanding (B)
Basic 43,420
Diluted 43,618
Funds from operations per share (B)
Basic $0.26
Diluted $0.26
Occupancy rates March 31, 1998
Bulk Distribution Properties 97.4%
Multi-tenant Distribution Properties 96.0%
Workspace Properties 96.8%
Weighted Average Total 96.9%
(A) Net income after minority interest
(B) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
(C) Calculated before minority interest
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE DATA)
March 31, 1998
ASSETS
Rental Properties $840,041
Less: Accumulated Depreciation (2,670)
Land Held for Development 669
Net Real Estate Investments $838,040
Cash and Cash Equivalents $1,313
Rents and Other Receivables 1,603
Deferred Rent Receivable 396
Lease Acquisition Costs, net 12,465
Deferred Financing Costs, net 1,477
Other Assets 930
TOTAL ASSETS $856,224
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $13,445
Accounts Payable and Accrued
Real Estate Taxes 3,969
Tenant Security Deposits
and Prepaid Rent 2,491
Other Liabilities 12,140
Total Liabilities $32,045
MINORITY INTEREST $471,430
SHAREHOLDERS' EQUITY
Common Stock, $0.01 par value,
150,000,000 shares authorized,
18,586,764 shares issued and
outstanding $186
Additional paid-in capital 349,085
Retained earnings 3,478
Total Shareholders' Equity $352,749
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $856,224
CABOT INDUSTRIAL TRUST
STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
(inception) through
March 31, 1998
REVENUES
Rental Income $12,842
Tenant Reimbursements 1,891
Interest and Other Income 474
Total Revenues 15,207
EXPENSES
Property Operating 1,042
Real Estate Taxes 1,642
General and Administrative 1,068
Interest Expense 155
Depreciation and Amortization 3,174
Total Expenses 7,081
Income Before Minority Interest Expense 8,126
Minority Interest Expense (4,648)
Net Income $3,478
Weighted Average Shares Outstanding:
Basic 18,587
Diluted 18,587
Income per Common Share:
Basic $0.19
Diluted $0.19
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
(inception) through
March 31, 1998
Net Income $3,478
Add:
Minority Interest 4,648
Depreciation and Amortization 3,174
Funds from Operations $11,300
Weighted Average Shares Outstanding (A)
Basic 43,420
Diluted 43,618
Funds from Operations per Share (A)
Basic $0.26
Diluted $0.26
(A) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
(inception) through
March 31, 1998
Funds from Operations $11,300
Adjustments:
Straightline Rental Income (396)
Amortization of Deferred Financing Costs (6)
Leasing Commissions and Tenant Improvements (551)
Building Improvements (147)
Funds Available for Distribution $10,200
Funds Available for Distribution per Share (A) $0.23
Basic $0.23
Diluted
(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, 617-723-0900; or Harriet Fried,
General Info., or Pamela King, Analyst Info., 212-661-8030, both
of The Financial Relations Board
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release and other corporate documents via FAX, at no cost, dial
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