$0.50 in FFO Per Share; Year-Over-Year Growth of 14%
Highlights include:
* Year-over-year growth of 14% in FFO per share and 42% in rental
revenues;
* Same store cash basis NOI growth of 5%; second quarter occupancy at
97.6%;
* Acquired approximately $100 million in properties during the quarter
yielding an average of 10.5%;
* Completed debut $200 million five year bond offering with a coupon rate
of 7.125%; and,
* Completed a $65 million perpetual preferred equity offering with a
coupon rate of 8.625%.
BOSTON, July 28 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported funds from operations (FFO) per share of $0.50 for the quarter ended
June 30, 1999; funds available for distribution were $0.44 per share. These
results show Cabot growing FFO per share at 14%. Rental revenues grew to
$37.2 million, a 42% increase over second quarter 1998 results.
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
reported, "Demand for high quality industrial properties remained strong
within all of our targeted 18 industrial markets. Our property operations
division including our nine regional property management offices remains
focused on intensive property management and tenant relations. During the
quarter, same store cash basis NOI increased 5% with occupancy averaging 97%.
Further, our acquisition team is finding excellent opportunities in the
marketplace, particularly for less sought after smaller transactions. Year to
date, we have raised $360 million in long-term capital including a
well-received debut bond financing. We remain well positioned for continued
strong growth." Cabot's activities in the second quarter include:
Internal growth year-over-year of 5%
During the quarter Cabot completed 1.3 million square feet of leasing.
Occupancy averaged 97% and tenant retention was 69%. Increased rents on
signed leases averaged 11% for the quarter and 12% year-to-date. The year-to-
date rent increases by property type were 8% for bulk, 21% for multitenant and
13% for workspace. Same store cash basis NOI grew by 5% from second quarter
1998 to second quarter 1999.
"Value" focused, single property acquisitions
Cabot continued its highly selective individual property acquisition
strategy during the second quarter. During the quarter, nine separate
transactions were completed which resulted in $100 million in total
acquisitions at average annual yields of 10.5%. Cabot's acquisitions
increased its representation across seven target markets. During the six
months ended June 30, 1999, Cabot acquired $168 million of properties in 14
separate transactions. As defined by property type, the 1999 acquisitions
consisted of 8% bulk, 48% multitenant and 44% workspace.
Strong capital base; 27% debt to total market capitalization
During the quarter, Cabot completed a $200 million unsecured five-year
debt offering. The bonds were priced to yield 7.192% to maturity. At June
30, 1999, Cabot had $321 million available under its unsecured credit
facility, and its debt-to-market capitalization stood at 27%. Cabot also
completed a $65 million privately placed perpetual preferred equity offering.
The coupon rate was 8.625% and the securities are callable in five years.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Atlanta, Baltimore, Boston, Chicago, Cincinnati, Dallas,
Los Angeles, Orlando and Phoenix, which specializes in the ownership,
acquisition, and development of industrial properties. It owns 267 properties
containing 32 million square feet in 22 states. The Company also manages an
additional 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.
To receive Cabot Industrial Trust's latest news release 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 Six Months Ended
June 30, 1999 June 30, 1999
Rental Revenues $37,182 $71,320
Weighted average common shares outstanding:
Basic 37,324 33,489
Diluted 37,324 33,489
Net income per common share:
Basic $0.41 $0.68
Diluted $0.41 $0.68
Funds from operations (A) $21,656 $42,956
Average shares outstanding (B)
Basic 43,634 43,579
Diluted 43,716 43,594
Funds from operations per common share (B)
Basic $0.50 $0.99
Diluted $0.50 $0.99
Occupancy Rates June 30, 1999
Bulk Distribution Properties 97.8%
Multitenant Distribution Properties 97.6%
Workspace Properties 97.2%
Weighted average total 97.6%
NOTE(A): Calculated before minority interest, after preferred unit
distributions.
(B): Calculated based on weighted average common shares outstanding
assuming conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
June 30, 1999 December 31, 1998
(unaudited)
ASSETS
Rental Properties $1,242,712 $1,072,675
Less: Accumulated Depreciation (28,812) (17,290)
Properties Under Development 46,334 23,108
Net Real Estate Investments $1,260,234 $1,078,493
Cash and Cash Equivalents $827 $2,301
Rents and Other Receivables,
net of reserve for
uncollectible accounts of
$388 and $312 at June 30, 1999
and December 31, 1998,
respectively 3,844 2,872
Deferred Rent Receivable 3,985 2,638
Deferred Lease Acquisition Costs, net 18,999 17,362
Deferred Financing Costs, net 3,981 1,255
Other Assets 5,710 5,649
TOTAL ASSETS $1,297,580 $1,110,570
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $159,103 $48,206
Unsecured Debt 200,000 --
Line of Credit Borrowings 4,000 200,000
Accounts Payable and
Accrued Real Estate Taxes 9,044 7,820
Tenant Security Deposits and Prepaid Rent 6,087 4,956
Distributions Payable 14,835 14,134
Other Liabilities 21,357 18,156
Total Liabilities $414,426 $293,272
MINORITY INTEREST
8.625% Series B Cumulative
Redeemable Perpetual Preferred Units $63,175 $ --
Limited Partnership Units 56,642 468,311
Total Minority Interest $119,817 $468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value,
150,000,000 shares authorized,
40,619,420 and 18,586,764 shares issued
and outstanding at June 30, 1999
and December 31, 1998, respectively $406 $186
Additional paid-in capital 767,776 348,912
Retained deficit (4,845) (111)
Total Shareholders' Equity $763,337 $348,987
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,297,580 $1,110,570
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
REVENUES
Rental Income $32,004 $61,225
Tenant Reimbursements 5,178 10,095
Interest and Other Income 304 506
Gain on Sale of Real Estate 3,404 3,404
Total Revenues $40,890 $75,230
EXPENSES
Property Operating $2,749 $5,429
Property Taxes 4,125 7,970
General and Administrative 2,136 4,321
Interest 5,822 10,137
Depreciation and Amortization 7,353 14,163
Settlement of Treasury Lock -- 2,492
Total Expenses $22,185 $44,512
Income Before Minority Interest $18,705 $30,718
Minority Interest $(3,544) $(7,866)
Net Income $15,161 $22,852
Weighted Average Shares Outstanding:
Basic 37,324 33,489
Diluted 37,324 33,489
Net Income per Common Share:
Basic $0.41 $0.68
Diluted $0.41 $0.68
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
Net Income $15,161 $22,852
Add:
Minority Interest 3,544 7,866
Real Estate Related Depreciation
and Amortization 7,336 14,131
Settlement of Treasury Lock -- 2,492
Preferred Unit Distributions (981) (981)
Gain on Sale of Real Estate (3,404) (3,404)
Funds from Operations $21,656 $42,956
Weighted Average Shares Outstanding (A)
Basic 43,634 43,579
Diluted 43,716 43,594
Funds from Operations per Share (A)
Basic $0.50 $0.99
Diluted $0.50 $0.99
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
Funds from Operations $21,656 $42,956
Adjustments:
Straightline Rental Income (733) (1,376)
Amortization of Deferred
Financing Costs 244 408
Leasing Commissions and
Tenant Improvements (1,622) (2,793)
Building Improvements (280) (715)
Funds Available for Distribution $19,265 $38,480
Funds Available for Distribution per Share (A)
Basic $0.44 $0.88
Diluted $0.44 $0.88
NOTE(A): Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
SOURCE Cabot Industrial Trust
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Related links:
http://www.cabottrust.com
CONTACT:
Franz Colloredo-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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