BIRMINGHAM, Ala., July 20 /PRNewswire-FirstCall/ -- Colonial Properties
Trust (NYSE: CLP) (the "Company") today reported net income available to
common shareholders of $6.4 million or $0.24 per fully diluted share (EPS) for
the second quarter 2004; for the same period in 2003, net income available to
common shareholders was $3.8 million or $0.15 per fully diluted share. Year-
to-date EPS was $0.73 in 2004 as compared to $0.66 for the same period in
2003.
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Funds from operations (FFO) for the second quarter were $32.7 million, or
$0.87 per fully diluted share/unit (FFOPS), compared to $27.0 million, or
$0.77 per share/unit for the same period a year ago. On a year-to-date basis,
FFOPS was $1.73 in 2004 as compared to $1.64 for the same period in 2003. In
the second quarter of 2003, the Company incurred a one-time $4.5 million non-
cash charge related to the redemption of its 8.75% series A preferred shares.
A reconciliation from 'net income available to common shareholders' to 'funds
from operations' is provided in the attached tables.
On a same-property basis, the multifamily, office and retail divisions
posted net operating income (NOI) results of a 4.4 percent increase, 13.8
percent decrease and 2.2 percent increase, respectively, for the second
quarter 2004, as compared to the same period a year ago. In the second quarter
of 2003, the office division recorded $2.2 million in lease termination fees;
excluding lease termination fees for both periods, the office division's same-
property growth was a 1.8 percent decrease. Occupancies at the end of the
period for the Company's stabilized properties were 96 percent, 91 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.
"With continued expansion in the economy, the Company is experiencing
improvements in same-property growth and solid leasing activity in retail and
multifamily," stated Thomas H. Lowder, chairman and chief executive officer.
"While the office sector lags other property types, the Company's office
portfolio has maintained strong performance in the Huntsville and Birmingham
markets."
Investment and Disposition Activities
The Company acquired a 320-unit multifamily asset, Colonial Grand at
Arringdon, in the Raleigh/Durham, North Carolina market and a 165,000 square
foot retail lifestyle center, Kingwood Commons, in Houston, Texas. Since that
time, the Company has continued to be active in the multifamily and retail
acquisition markets.
In June, Colonial Properties acquired five multifamily assets in the
Dunwoody and Gwinnett submarkets of Atlanta, Georgia. Totaling 1,091 units,
the class-A portfolio is currently 97 percent occupied.
The Company acquired a 90% interest in the Village on the Parkway
lifestyle center located in the Dallas sub-market of Addison, Texas. The
380,000 square foot open-air center is 86 percent occupied and anchored by
127,500 square foot Bed, Bath & Beyond.
The Company acquired a 20% interest and the management of The Cunningham
Apartments, a 280-unit property is located in Austin, Texas. In addition, the
Company acquired a 25% partnership interest and the management of Colonial
Grand at Bayshore and Colonial Grand at Palma Sola, totaling 716 multifamily
units; both properties are located in Bradenton, Florida.
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
In April, 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. In June, the Company swapped the notes to floating through
the 2011 maturity. The notes will carry an interest rate based on six-month
LIBOR.
In June, the Company issued $300 million in senior unsecured notes due
June 2014. The notes carry a coupon of 6.25% and were priced to yield 6.35%.
The proceeds of the transaction were used to pay down the revolving line of
credit and general corporate purposes, which may include future acquisitions.
Conference Call and Supplemental Materials
The Company will hold its quarterly conference call Wednesday, July 21st
at 1:00 pm central time. The call will include a review of the Company's
second 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
8391885. 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 $3.4 billion. The cornerstone of Colonial Properties'
success is its live, work and shop diversified investment strategy. The
Company manages or leases 22,400 apartment units, 6.8 million square feet of
office space and 15.7 million square feet of retail shopping space.
Additional information on Colonial Properties Trust is available on the
Internet at http://www.colonialprop.com . The Company, headquartered in
Birmingham, Ala., is listed on the New York Stock Exchange under the symbol
"CLP" and is included in the S&P SmallCap 600 Index.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for the historical information contained herein, this news
release contains forward-looking statements regarding Company and property
performance, and is based on the Company's current expectations and judgment.
Actual results could vary materially depending on risks and uncertainties
inherent to general and local real estate conditions, competitive factors
specific to markets in which Colonial Properties operates, legislative or
other regulatory decisions, future interest rate levels or capital markets
conditions. The Company assumes no liability to update this information. For
more details, please refer to the Company's SEC filings, including its most
recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
BALANCE SHEET
($ in 000s) As of As of
6/30/2004 12/31/2003
ASSETS
Real Estate Investments
Operating Properties $2,662,134 $2,378,835
Undeveloped Land & Construction in
Progress 113,824 114,262
Total Real Estate, before
Depreciation 2,775,958 2,493,097
Less: Accumulated Depreciation (457,842) (419,827)
Real estate assets held for sale, net 15,354 11,691
Net Real Estate Assets 2,333,470 2,084,961
Cash and Equivalents 35,617 8,070
Restricted Cash 2,024 1,879
Accounts Receivable, net 9,313 10,262
Notes Receivable 4,166 2,504
Prepaid Expenses 5,738 6,587
Deferred Debt and Lease Costs 32,204 25,832
Investment in Unconsolidated Subsidiaries 54,383 37,496
Other Assets 31,804 17,336
Total Assets $2,508,719 $2,194,927
LIABILITIES
Long-Term Liabilities
Unsecured Credit Facility $- $205,935
Notes and Mortgages Payable 1,564,609 1,050,145
Mortgages Payable related to real
estate held for sale 3,400 11,785
Total Long-Term Liabilities 1,568,009 1,267,865
Other Liabilities 67,156 55,275
Total Liabilities 1,635,165 1,323,140
MINORITY INTEREST & EQUITY
Minority Interest 1,575 -
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 596,979 596,787
Total Equity, including Minority Interest 873,554 871,787
Total Liabilities and Equity $2,508,719 $2,194,927
SHARES & UNITS OUTSTANDING, END OF PERIOD
(shares and units in 000s) As of As of
6/30/2004 12/31/2003
Basic
Shares 27,191 26,395
Operating Partnership Units (OP Units) 10,345 10,361
Total Shares & OP Units 37,536 36,756
Dilutive Common Share Equivalents 336 266
Diluted
Shares 27,527 26,661
Total Shares & OP Units 37,872 37,022
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data) Three Months Ended
6/30/2004 6/30/2003
Revenue
Minimum Rent $71,896 $64,575 11.3%
Percentage Rent 641 601 6.7%
Tenant Recoveries 9,512 10,077 -5.6%
Other Property Related Revenue 5,282 6,471 -18.4%
Other Non-Property Related Revenue 1,380 1,608 -14.2%
Total Revenue 88,711 83,332 6.5%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 6,323 5,872 7.7%
Salaries and Benefits 4,348 3,814 14.0%
Repairs and Maintenance 9,501 8,733 8.8%
Taxes, Licenses, and Insurance 8,109 7,726 5.0%
Total Property Operating
Expenses 28,281 26,145 8.2%
General and Administrative 5,678 5,262 7.9%
Depreciation 21,649 19,862 9.0%
Amortization 2,706 1,898 42.6%
Total Operating Expenses 58,314 53,167 9.7%
Income from Operations 30,397 30,165 0.8%
Other Income (Expense)
Interest Expense (18,320) (16,929) 8.2%
Income from Investments 312 1 31100.0%
Gain (Loss) on Hedging Activities 160 (79) -302.5%
Gain on Sale of Property 1,117 2,324 -51.9%
Other (87) 167 -152.1%
Total Other Expense (16,818) (14,516) 15.9%
Income before Minority Interest
& Discontinued Operations 13,579 15,649 -13.2%
Minority Interest
Minority Interest of limited partners (10) -
Minority Interest in CRLP - Preferred (1,813) (2,218) -18.3%
Minority Interest in CRLP - Common (2,270) (1,504) 50.9%
Total Minority Interest (4,093) (3,722) 10.0%
Income from Continuing Operations 9,486 11,927 -20.5%
Discontinued Operations
Income from Discontinued Operations 352 481 -26.8%
Gain (Loss) on Disposal of
Discontinued Operations 491 (47) -1144.7%
Minority Interest in Discontinued
Operations (193) (130) 48.5%
Income from Discontinued Operations 650 304 113.8%
Net Income 10,136 12,231 -17.1%
Dividends to Preferred Shareholders (3,695) (3,973) -7.0%
Preferred Share Issuance Costs - (4,451) -100.0%
Net Income Available to Common
Shareholders $6,441 $3,807 69.2%
Earnings per Share - Basic
Continuing Operations $0.21 $0.15 40.0%
Discontinued Operations 0.02 0.01 100.0%
EPS - Basic $0.24 $0.16 50.0%
Earnings per Share - Diluted
Continuing Operations $0.21 $0.14 50.0%
Discontinued Operations 0.02 0.01 100.0%
EPS - Diluted $0.24 $0.15 60.0%
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
CONSOLIDATED STATEMENTS OF INCOME
($ in 000s, except per share data) Six Months Ended
6/30/2004 6/30/2003
Revenue
Minimum Rent $140,991 $128,558 9.7%
Percentage Rent 1,321 1,169 13.0%
Tenant Recoveries 19,158 20,121 -4.8%
Other Property Related Revenue 9,798 11,570 -15.3%
Other Non-Property Related Revenue 2,676 2,707 -1.1%
Total Revenue 173,944 164,125 6.0%
Operating Expenses
Property Operating Expenses:
General Operating Expenses 12,400 11,596 6.9%
Salaries and Benefits 8,356 7,407 12.8%
Repairs and Maintenance 17,902 16,873 6.1%
Taxes, Licenses, and Insurance 16,301 15,502 5.2%
Total Property Operating Expenses 54,959 51,378 7.0%
General and Administrative 11,217 10,065 11.4%
Depreciation 42,415 39,104 8.5%
Amortization 5,261 3,857 36.4%
Total Operating Expenses 113,852 104,404 9.0%
Income from Operations 60,092 59,721 0.6%
Other Income (Expense)
Interest Expense (34,628) (33,232) 4.2%
Income from Investments 561 83 575.9%
Gain (Loss) on Hedging Activities 80 (316) -125.3%
Gain on Sale of Property 2,119 2,355 -10.0%
Other (107) 349 -130.7%
Total Other Expense (31,975) (30,761) 3.9%
Income before Minority Interest
& Discontinued Operations 28,117 28,960 -2.9%
Minority Interest
Minority Interest of limited partners (10) -
Minority Interest in CRLP - Preferred (3,868) (4,438) -12.8%
Minority Interest in CRLP - Common (4,743) (3,818) 24.2%
Total Minority Interest (8,621) (8,256) 4.4%
Income from Continuing Operations 19,496 20,704 -5.8%
Discontinued Operations
Income from Discontinued Operations 765 1,275 -40.0%
Gain (Loss) on Disposal of
Discontinued Operations 9,882 9,579 3.2%
Minority Interest in Discontinued
Operations (2,922) (3,327) -12.2%
Income from Discontinued Operations 7,725 7,527 2.6%
Net Income 27,221 28,231 -3.6%
Dividends to Preferred Shareholders (7,391) (7,863) -6.0%
Preferred Share Issuance Costs - (4,451) -100.0%
Net Income Available to Common
Shareholders $19,830 $15,917 24.6%
Earnings per Share - Basic
Continuing Operations $0.45 $0.35 28.6%
Discontinued Operations 0.29 0.32 -9.4%
EPS - Basic $0.74 $0.67 10.4%
Earnings per Share - Diluted
Continuing Operations $0.44 $0.35 25.7%
Discontinued Operations 0.28 0.31 -9.7%
EPS - Diluted $0.73 $0.66 10.6%
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
($ in 000s, except per share data) Three Months Ended
6/30/2004 6/30/2003
Net Income Available to Common
Shareholders $6,441 $3,807 69.2%
Minority Interest in CRLP (Operating
Ptr Unitholders) 2,463 1,634 50.7%
Total 8,904 5,441 63.6%
Adjustments - Consolidated Properties
Depreciation - Real Estate 21,554 19,806 8.8%
Amortization - Real Estate 1,797 1,018 76.5%
Remove: Gain/(Loss) on Sale of
Property (811) (2,277) -64.4%
Include: Gain/(Loss) on Sale of
Undepreciated Property 1,115 2,004 -44.4%
Total Adjustments - Consolidated 23,655 20,551 15.1%
Adjustments - Unconsolidated Properties
Depreciation - Real Estate 918 942 -2.5%
Amortization - Real Estate 20 23 -13.0%
Remove: Gain/(Loss) on Sale of Property (799) (3) 26533.3%
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Total Adjustments - Unconsolidated 139 962 -85.6%
Funds from Operations $32,698 $26,954 21.3%
FFO per Share
Basic $0.87 $0.78 12.5%
Diluted $0.87 $0.77 12.4%
Pursuant to the definition of Funds from Operations ("FFO") adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"), FFO is calculated by adjusting net
income (loss) (computed in accordance with GAAP), excluding
gains (or losses) from sales of depreciated property, plus depreciation
and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated
partnerships and joint ventures are calculated to reflect FFO on the
same basis.
The Company believes that FFO is useful to investors because it
provides an additional indicator of the Company's financial and
operating performance. This is because, by excluding the effect of real
estate depreciation and gains (or losses) from sales of properties (all of
which are based on historical costs which may be of limited relevance in
evaluating current performance), FFO can facilitate comparison of
operating performance among equity REITs. FFO is a widely recognized
measure in the Company's industry. FFO does not represent cash
generated from operating activities determined in accordance with GAAP,
and should not be considered as an alternative to net cash flows
from operating activities (determined in accordance with GAAP), as a
measure of our liquidity, or as an indicator of our ability to make
cash distributions.
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
($ in 000s, except per share data) Six Months Ended
6/30/2004 6/30/2003
Net Income Available to Common
Shareholders $19,830 $15,917 24.6%
Minority Interest in CRLP (Operating
Ptr Unitholders) 7,665 7,145 7.3%
Total 27,495 23,062 19.2%
Adjustments - Consolidated Properties
Depreciation - Real Estate 42,282 39,187 7.9%
Amortization - Real Estate 3,196 2,143 49.1%
Remove: Gain/(Loss) on Sale of
Property (11,204) (11,934) -6.1%
Include: Gain/(Loss) on Sale of
Undepreciated Property 2,123 2,155 -1.5%
Total Adjustments - Consolidated 36,397 31,551 15.4%
Adjustments - Unconsolidated Properties
Depreciation - Real Estate 1,959 1,882 4.1%
Amortization - Real Estate 36 55 -34.5%
Remove: Gain/(Loss) on Sale of Property (799) (3) 26533.3%
Include: Gain/(Loss) on Sale of
Undepreciated Property - -
Total Adjustments - Unconsolidated 1,196 1,934 -38.2%
Funds from Operations $65,088 $56,547 15.1%
FFO per Share
Basic $1.75 $1.65 5.9%
Diluted $1.73 $1.64 5.6%
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.
SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
(shares and units in 000s)
Three Months Ended Six Months Ended
6/30/2004 6/30/2003 6/30/2004 6/30/2003
Basic
Shares 27,089 24,312 11.4% 26,880 23,777 13.0%
Operating Partnership
Units (OP Units) 10,358 10,420 -0.6% 10,360 10,497 -1.3%
Total Shares & OP Units 37,447 34,732 7.8% 37,239 34,274 8.7%
Dilutive Common Share
Equivalents 293 250 17.3% 336 204 64.7%
Diluted
Shares 27,382 24,562 11.5% 27,216 23,981 13.5%
Total Shares & OP Units 37,740 34,982 7.9% 37,575 34,478 9.0%
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2004
SECOND QUARTER SEGMENT DATA & RECONCILIATION
Three Months Ended Six Months Ended
6/30/2004 6/30/2003 6/30/2004 6/30/2003
Net Operating Income
(NOI)
Divisional Same-
Property NOI
Multifamily 15,406 14,762 4.4% 30,320 29,418 3.1%
Office 15,653 18,161 -13.8% 31,316 33,984 -7.9%
Retail 24,832 24,307 2.2% 50,404 49,808 1.2%
Total Same-Property 55,891 57,230 -2.3% 112,040 113,210 -1.0%
Less:
Unconsolidated
Assets (1,737) (1,769) (3,639) (3,577)
Same-Property NOI,
Consolidated 54,154 55,461 108,401 109,633
Divisional Non Same-
Property NOI
Multifamily 2,316 400 3,577 1,069
Office 1,616 (7) 2,954 53
Retail 1,914 1,265 3,540 2,978
Total Non-Same
Property 5,846 1,658 10,071 4,100
Less:
Unconsolidated
Assets (417) (442) (713) (903)
Non Same-Property
NOI, Consolidated 5,429 1,216 9,358 3,197
Divisional Total NOI
Multifamily 17,722 15,162 16.9% 33,897 30,487 11.2%
Office 17,269 18,154 -4.9% 34,270 34,037 0.7%
Retail 26,746 25,572 4.6% 53,944 52,786 2.2%
Total Divisional
NOI 61,737 58,888 4.8% 122,111 117,310 4.1%
Less: NOI,
Unconsolidated (2,154) (2,211) (4,352) (4,480)
Less: Discontinued
Operations (530) (1,041) (1,331) (2,576)
Unallocated Corporate
Rev 1,380 1,588 2,676 2,571
Other Expense (3) (37) (119) (78)
General &
Administrative
Expenses (5,678) (5,262) (11,217) (10,065)
Depreciation (21,649) (19,862) (42,415) (39,104)
Amortization (2,706) (1,898) (5,261) (3,857)
Income from
Operations, restated
for additional
discontinued
operations 30,397 30,165 60,092 59,721
Total Other Income
(Expense) (16,818) (14,516) (31,975) (30,761)
Income from
Continuing
Operations before
Extraordinary
Items, Minority
Interest and
Discontinued
Operations,
as restated for
additional
discontinued
operations 13,579 15,649 28,117 28,960
Add: Discontinued
Operations Income,
post 2Q 2003 - 434 - 981
Income from
Continuing
Operations before
Extraordinary
Items, Minority
Interest and
Discontinued
Operations, per
corresponding 10-K
or 10-Q 13,579 16,083 28,117 29,941
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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