Highlights include:
* Quarterly FFO per share of $0.56; growth of 12% over second quarter
1999
* During the quarter, stabilized $12.5 million of development at yields
of 10.6%; year-to-date, stabilized $20.7 million of projects at yields
of 11.5%
* Acquired 10 properties in 6 separate transactions for $66 million at
10.2% yields
* Average rent increase of 12%; portfolio occupancy of 97.1%
* Launched joint venture with Chase Capital Partners focused on workspace
properties
* Completed $35 million 8.95% perpetual preferred equity financing
* Closed $62 million 8.4% 10 year secured financing
BOSTON, July 26 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported that for the quarter ended June 30, 2000, rental revenues were
$52.2 million and FFO per share on a diluted basis was $0.56. This represents
revenue growth of 40% and FFO per share growth of 12% compared to previously
reported results for the second quarter 1999.
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
commented, "We achieved strong rent growth in the quarter, particularly for
workspace properties which averaged 23% for the quarter. We are also very
pleased with the performance of our development properties, particularly our
"CABOT tech" properties which have experienced strong demand from
telecommunications and internet service providers. We continue to see
exceptional investment opportunities in the market and are well positioned to
pursue these opportunities on behalf of our joint venture with Chase Capital
Partners and for our own account."
Year-to-date $20.7 million in development stabilized at 11.5% yields
Cabot's ongoing development program includes $252 million of projects in
twelve submarkets across the country at various stages of construction and
lease-up. During the quarter, projects with a cost of $12.5 million were
stabilized at 10.6% yields. Leasing activity has been extremely strong.
Year-to-date, $20.7 million has been stabilized at 11.5% yields.
Additionally, $42 million of projects have reached shell completion, and
two-thirds of the space has been leased.
Interest in the "CABOT tech" workspace development projects has been
particularly strong. During the quarter, leases were signed with AT&T,
SBC Telecom and Ciena Corporation at CABOT tech projects in Northern Virginia
and the Baltimore-Washington Corridor. New CABOT tech projects are under
development in Northern Virginia, Dallas, TX and West Palm Beach, FL markets,
with each project receiving significant pre-leasing interest.
Rent growth of 12%; occupancy of 97.1%
Cabot now has 708 tenants, largely serviced through its nine property
management offices. Over the course of the second quarter, the Company leased
1.9 million square feet, and achieved rent growth of 12% on new leases. Rent
growth for workspace properties was strongest at 23%, followed by multitenant
properties at 9% and bulk properties at 8%. Same store cash basis NOI grew by
3.3% over the second quarter of 1999 (including lease termination payments)
and despite a drop in average occupancy by 93 basis points in the same store
portfolio over the period. Overall occupancy remains high at 97.1%.
$66 million in acquisitions in the quarter; $129 million year-to-date
During the quarter, Cabot completed 6 separate acquisition transactions
for $66 million at an average stabilized yield of 10.2%. As a result of this
investment activity, Cabot has expanded its market position in Atlanta,
Charlotte, Dallas and San Francisco. These acquisitions comprised 10
buildings totaling 1.5 million square feet which were 98% leased to
31 tenants. Additionally, Cabot acquired $21 million of properties in the San
Francisco and Chicago markets on behalf of joint ventures.
Strong capital base -- $100 million in long-term financings in quarter
During the quarter, Cabot completed a $35 million perpetual preferred
equity financing with a coupon rate of 8.95% and a $62 million secured
financing with a coupon rate of 8.4%. At quarter end, Cabot's debt-to-book
asset ratio was 36%. Its debt service coverage ratio was 3.2 times, fixed
charge coverage ratio was 2.3x and FFO payout ratio was 64%.
Conference Call -- The Company will hold its quarterly investor/analyst
conference call on July 27, 2000 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. There will be a digital rebroadcast
accessible 24 hours per day/7 days per week starting at 3:00 p.m. (EDT) on
July 27, 2000 through August 4, 2000 at 5:00 p.m. (EDT). The dial in number
for the rebroadcast is 1-800-938-1593 with a passcode of 74283.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Atlanta, Baltimore, Chicago, Cincinnati, Dallas, Los
Angeles, Orlando and Phoenix, which specializes in the ownership, acquisition,
and development of industrial properties. At June 30, 2000, it owns
350 properties containing 42 million square feet in 22 states. The Company
also manages an additional 10 million square feet of property for investment
advisory accounts and 290,000 square feet for joint venture 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.
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
June 30, June 30,
2000 1999
Rental Revenues $52,178 $37,182
Weighted average common shares outstanding:
Basic 40,619 37,324
Diluted 40,619 37,324
Net income per common share:
Basic $0.32 $0.41
Diluted $0.32 $0.41
Funds from operations (1) $24,415 $21,656
Average shares outstanding (2)
Basic 43,668 43,634
Diluted 43,714 43,716
Funds from operations per common share (2)
Basic $0.56 $0.50
Diluted $0.56 $0.50
Occupancy Rates June 30, June 30,
2000 1999
Bulk Distribution Properties 97.5% 97.8%
Multitenant Distribution Properties 96.3% 97.6%
Workspace Properties 98.0% 97.2%
Weighted average total 97.1% 97.6%
(1) Calculated before minority interest and after preferred unit
distributions.
(2) Calculated based on weighted average common shares outstanding
assuming conversion of all limited partnership units outstanding.
Cabot Industrial Trust
Summary Unaudited Year-to-Date Results
(In Thousands, Except Per Share Data)
Six Months Six Months
Ended Ended
June 30, June 30,
2000 1999
Rental Revenues $101,986 $71,320
Weighted average common shares outstanding:
Basic 40,619 33,489
Diluted 40,619 33,489
Net income per common share:
Basic $0.63 $0.68
Diluted $0.63 $0.68
Funds from operations (1) $47,911 $40,464(3)
Average shares outstanding (2)
Basic 43,668 43,579
Diluted 43,713 43,594
Funds from operations per common share (2)
Basic $1.10 $0.93(3)
Diluted $1.10 $0.93(3)
(1) Calculated before minority interest and after preferred unit
distributions.
(2) Calculated based on weighted average common shares outstanding
assuming conversion of all limited 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 six months ended June 30, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492 and
were reported as $42,956 and $0.99, respectively.
Cabot Industrial Trust
Consolidated Balance Sheet
(In Thousands, Except Share Data)
June 30, December 31,
2000 1999
(unaudited)
ASSETS
Rental Properties $1,661,447 $1,507,834
Less: Accumulated Depreciation (59,305) (42,543)
Properties Under Development 62,174 63,938
Net Real Estate Investments $1,664,316 $1,529,229
Cash and Cash Equivalents $3,018 $22,007
Rents and Other Receivables, net
of reserve for uncollectible accounts of
$763 and $574 at June 30, 2000 and
December 31, 1999, respectively 3,398 3,828
Deferred Rent Receivable 8,717 6,079
Deferred Lease Acquisition Costs, net 30,019 23,913
Deferred Financing Costs, net 3,460 3,369
Other Assets 14,998 5,059
Total Assets $1,727,926 $1,593,484
Liabilities and Shareholders' Equity
Liabilities
Mortgage Debt $234,878 $163,866
Unsecured Debt 200,000 200,000
Line of Credit Borrowings 183,000 163,000
Accounts Payable and Accrued
Real Estate Taxes 12,461 11,143
Tenant Security Deposits and Prepaid Rent 8,739 11,205
Distributions Payable 16,155 15,437
Other Liabilities 19,002 20,117
Total Liabilities $674,235 $584,768
Minority Interest
Cumulative Redeemable Perpetual
Preferred Units $238,205 $189,805
Limited Partnership Units 56,931 57,169
Total Minority Interest $295,136 $246,974
Shareholders' Equity
Common Stock, $.01 par value, 150,000,000
shares authorized, 40,619,833 and 40,619,420
shares issued and outstanding at
June 30, 2000 and December 31,
1999, respectively $406 $406
Additional paid-in capital 767,694 767,774
Retained deficit (9,545) (6,438)
Total Shareholders' Equity $758,555 $761,742
Total Liabilities and Shareholders' Equity $1,727,926 $1,593,484
Cabot Industrial Trust
Consolidated Quarterly Statement of Operations
(Unaudited, in Thousands, Except Per Share Data)
Quarter Ended Quarter Ended
June 30, 2000 June 30, 1999
Revenues
Rental Income $44,994 $32,004
Tenant Reimbursements 7,184 5,178
Interest and Other Income 669 304
Gain on Sale of Real Estate - 3,404
Total Revenues $52,847 $40,890
Expenses
Property Operating $4,705 $2,749
Property Taxes 6,022 4,125
General and Administrative 2,216 2,136
Interest 10,560 5,822
Depreciation and Amortization 10,468 7,353
Total Expenses $33,971 $22,185
Income Before Minority Interest $18,876 $18,705
Minority Interest:
Preferred Units (4,905) (981)
Limited Partnership Units (975) (2,563)
Net Income $12,996 $15,161
Weighted Average Shares Outstanding:
Basic 40,619 37,324
Diluted 40,619 37,324
Net Income per Common Share:
Basic $0.32 $0.41
Diluted $0.32 $0.41
Cabot Industrial Trust
Consolidated Year-to-Date Statement of Operations
(Unaudited, in Thousands, Except Per Share Data)
Six Months Six Months
Ended Ended
June 30, June 30,
2000 1999
Revenues
Rental Income $87,743 $61,225
Tenant Reimbursements 14,243 10,095
Interest and Other Income 963 506
Gain on Sale of Real Estate - 3,404
Total Revenues $102,949 $75,230
Expenses
Property Operating $9,251 $5,429
Property Taxes 11,920 7,970
General and Administrative 4,697 4,321
Interest 20,010 10,137
Depreciation and Amortization 20,291 14,163
Settlement of Treasury Lock - 2,492
Total Expenses $66,169 $44,512
Income Before Minority Interest $36,780 $30,718
Minority Interest:
Preferred Units (9,116) (981)
Limited Partnership Units (1,931) (6,885)
Net Income $25,733 $22,852
Weighted Average Shares Outstanding:
Basic 40,619 33,489
Diluted 40,619 33,489
Net Income per Common Share:
Basic $0.63 $0.68
Diluted $0.63 $0.68
Cabot Industrial Trust
Quarterly Funds From Operations
(Unaudited, in Thousands, Except Per Share)
Quarter Ended Quarter Ended
June 30, 2000 June 30, 1999
Net Income $12,996 $15,161
Add:
Minority Interest 5,880 3,544
Real Estate Related Depreciation
and Amortization 10,444 7,336
Preferred Unit Distributions (4,905) (981)
Gain on Sale of Real Estate - (3,404)
Funds from Operations $24,415 $21,656
Weighted Average Shares Outstanding (1)
Basic 43,668 43,634
Diluted 43,714 43,716
Funds from Operations per Share (1)
Basic $0.56 $0.50
Diluted $0.56 $0.50
Cabot Industrial Trust
Quarterly Funds Available for Distribution
(Unaudited, in Thousands, Excepts Per Share Data)
Quarter Ended Quarter Ended
June 30, 2000 June 30, 1999
Funds from Operations $ 24,415 $ 21,656
Adjustments:
Straightline Rental Income (1,278) (733)
Amortization of Deferred Financing Costs 301 244
Leasing Commissions and Tenant Improvements (1,978) (1,622)
Building Improvements (764) (280)
Funds Available for Distribution $ 20,696 $ 19,265
Funds Available for Distribution per Share (1)
Basic $ 0.47 $ 0.44
Diluted $ 0.47 $ 0.44
(1) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding.
Cabot Industrial Trust
Year-to-Date Funds From Operations
(Unaudited, in Thousands, Except Per Share Data)
Six Months Six Months
Ended Ended
June 30, June 30,
2000 1999
Net Income $25,733 $22,852
Add:
Minority Interest 11,047 7,866
Real Estate Related Depreciation
and Amortization 20,247 14,131
Preferred Unit Distributions (9,116) (981)
Gain on Sale of Real Estate - (3,404)
Funds from Operations $47,911 $40,464(2)
Weighted Average Shares Outstanding (1)
Basic 43,668 43,579
Diluted 43,713 43,594
Funds from Operations per Share (1)
Basic $1.10 $0.93(2)
Diluted $1.10 $0.93(2)
Cabot Industrial Trust
Year-to-Date Funds Available for Distribution
(Unaudited, in Thousands, Except Per Share Data)
Six Months Six Months
Ended Ended
June 30, June 30,
2000 1999
Funds from Operations $47,911 $40,464(2)
Adjustments:
Straightline Rental Income (2,638) (1,376)
Amortization of Deferred Financing Costs 614 408
Leasing Commissions and Tenant Improvements (3,480) (2,793)
Building Improvements (1,299) (715)
Funds Available for Distribution $41,108 $35,988(2)
Funds Available for Distribution per Share (1)
Basic $0.94 $0.83(2)
Diluted $0.94 $0.83(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 six months ended June 30, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492 and
were reported as $42,956 and $0.99, 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-Mansfield, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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