$261 Million in Acquisitions Year to Date; Leverage Ratio at 8.3%
Highlights include:
* Quarterly FFO per share of $0.44, quarterly dividend of $0.325
per share
* $76 million in new investments in 2Q98; $261 million in new
acquisitions since February 4, 1998 IPO
* Continued strong demand for workspace drives rents up 28% on new
workspace leases in 1998; portfolio occupancy at 96%
* $55 million in new development committed in seven target markets
* Completes conversion to integrated operator with six in-house property
management offices
BOSTON, July 29 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported funds from operations (FFO) per share of $0.44 for the quarter ended
June 30, 1998. Cabot completed its initial public offering on February 4,
1998 so that comparative results for last year are not available. These
results are in line with consensus estimates.
"We were very successful in executing the Company's strategy for growth in
the second quarter," said Ferdinand Colloredo-Mansfeld, Chairman and Chief
Executive Officer of Cabot Industrial Trust. "We completed acquisitions in
seven of our target markets, initiated developments in six markets and
completed our conversion to a fully integrated operator with national property
management capabilities. With a leverage ratio of approximately 8%, among the
lowest in the industry, we are extremely well positioned for further growth."
Solid Pace of Acquisitions Continues
"We are very pleased with Cabot's solid growth," said Mr. Colloredo-
Mansfeld. "During this quarter, we continued to execute our strategy of
focusing on smaller acquisitions throughout the U.S. within each of our three
targeted industrial property segments." Cabot closed ten separate
transactions, increasing its presence in seven of its 19 target markets,
including Chicago, Cincinnati, Dallas, Los Angeles, New Jersey, Phoenix and
San Diego. The properties acquired included a total of 1.55 million square
feet, of which 38% was bulk distribution, 30% was multi-tenant and 32% was
workspace. The properties are currently 97% occupied by 30 tenants.
Mr. Colloredo-Mansfeld continued, "In the first two quarters of 1998,
Cabot acquired 49 properties totaling $261 million in acquisitions in 23
separate transactions in 11 target markets nationwide at stabilized yields of
9.5%. In addition, we initiated over $55 million in development projects. We
believe there are many good opportunities in the market for continued growth
and strong returns."
Strong Demand for Workspace Drives Up Rents
During the second quarter, Cabot maintained occupancy across its
portfolio, which at the end of the quarter was 96%, and leased 693,000 square
feet of space. Mr. Colloredo-Mansfeld commented, "Over the past two quarters,
the Company has leased in excess of 2 million square feet, of which 15% was
workspace and 28% was multi-tenant distribution. New leases or renewals were
28% higher for workspace and 15% higher for multi-tenant than expiring leases
for those property types over the period. This leasing activity confirms to
us the continued strong demand for our properties and the exceptional demand
for smaller tenant spaces. As a result, we have been shifting our portfolio
mix through acquisitions and development. By the end of the second quarter,
workspace properties generated 26% of annualized net rent and multi-tenant
properties generated 30%."
$55 Million in Development Commitments
Robert E. Patterson, the Company's President, reported, "During the
quarter, Cabot announced the initiation of two development projects in Los
Angeles and the Baltimore/Washington corridor. In addition, we signed letters
of intent or purchase and sale agreements for the development projects in
Phoenix, Cincinnati, Atlanta, Dallas and the Baltimore/Washington corridor.
These projects, which are focused on smaller tenants, result in a total
development pipeline of 1.3 million square feet. We believe Cabot is one of
the few national companies serving the needs of this major but underserved
segment of the market, where there now exists favorable supply and demand
characteristics."
New Offices Opened and Staffing Increased
In the second quarter, Cabot opened new offices in Chicago and Cincinnati,
increasing to six its total number of property management offices. Mr.
Patterson commented, "With the opening of these offices, we have completed
internalizing property management on 75% of Cabot's properties, thus meeting
the target we set for ourselves at the beginning of the year. We have also
augmented our organization in the areas of acquisitions, development, leasing
and finance. This higher level of staffing is commensurate both with Cabot's
expanded scope of operations and with our budget."
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 172 properties containing over
24.5 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 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
Quarter Ended February 4, 1998
(Inception)
June 30, 1998through June 30, 1998
Rental Revenues $26,159 $40,892
Net income available to
common shareholders (a) $6,081 $9,559
Weighted average common shares outstanding:
Basic 18,587 18,587
Diluted 18,587 18,587
Net income per common share:
Basic $0.33 $0.51
Diluted $0.33 $0.51
Funds from operations (b) $19,304 $30,604
Average shares outstanding (c)
Basic 43,508 43,474
Diluted 43,733 43,690
Funds from operations per share (c)
Basic $0.44 $0.70
Diluted $0.44 $0.70
Occupancy Rates June 30, 1998
Bulk Distribution Properties 96.0%
Multi-tenant Distribution Properties 95.7%
Workspace Properties 97.1%
Weighted average total 96.1%
(a) Net income after minority interest
(b) Calculated before minority interest
(c) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
CABOT INDUSTRIAL TRUST
CONSOLIDATE BALANCE SHEET
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE DATA)
June 30, 1998
ASSETS
Rental Properties $917,720
Less: Accumulated Depreciation (6,933)
Development Projects 3,457
Net Real Estate Investments $914,244
Cash and Cash Equivalents $5,386
Rents and Other Receivables 1,102
Deferred Rent Receivable 1,090
Lease Acquisition Costs, net 13,721
Deferred Financing Costs, net 1,514
Other Assets 1,689
TOTAL ASSETS $938,746
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $17,533
Line of Credit Borrowings 68,000
Accounts Payable and Accrued Real Estate Taxes 6,107
Tenant Security Deposits and Prepaid Rent 2,732
Other Liabilities 12,398
Total Liabilities $106,770
MINORITY INTEREST $476,722
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value, 150,000,000 shares
authorized, 18,586,764 shares issued
and outstanding $186
Additional paid-in capital 350,545
Retained earnings 4,523
Total Shareholders' Equity $355,254
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $938,746
CABOT INDUSTRIAL TRUST
STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Quarter Ended (Inception)
June 30, 1998 through June 30, 1998
REVENUES
Rental Income $22,813 $35,655
Tenant Reimbursements 3,346 5,237
Interest and Other Income 248 722
Total Revenues 26,407 41,614
EXPENSES
Property Operating 1,474 2,516
Real Estate Taxes 3,100 4,742
General and Administrative 1,722 2,790
Interest Expense 797 952
Depreciation and Amortization 5,072 8,246
Total Expenses 12,165 19,246
Income Before Minority Interest Expense 14,242 22,368
Minority Interest Expense (8,161) (12,809)
Net Income $6,081 $9,559
Weighted Average Shares Outstanding:
Basic 18,587 18,587
Diluted 18,587 18,587
Income per Common Share:
Basic $0.33 $0.51
Diluted $0.33 $0.51
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
Quarter Ended February 4, 1998
June 30,1998 (Inception)
through June 30, 1998
Net Income $6,081 $9,559
Add:
Minority Interest 8,161 12,809
Real Estate Related Depreciation
and Amortization 5,062 8,236
Funds from Operations $19,304 $30,604
Weighted Average Shares Outstanding (a)
Basic 43,508 43,474
Diluted 43,733 43,690
Funds from Operations per Share (a)
Basic $0.44 $0.70
Diluted $0.44 $0.70
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Period from
February 4, 1998
Quarter Ended (Inception)
June 30,1998 through June 30,1998
Funds from Operations $19,304 $30,604
Adjustments:
Straightline Rental Income (694) (1,090)
Amortization of Deferred Financing Costs 140 146
Leasing Commissions and Tenant Improvements (555) (1,106)
Building Improvements (604) (751)
Funds Available for Distribution $17,591 $29,999
Funds Available for Distribution per Share (a)
Basic $0.40 $0.64
Diluted $0.40 $0.64
(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, 617-723-0900; or General Info, Harriet Fried,
or Analyst Info, Pamela King, 212-661-8030, both of The Financial
Relations Board
NOTE TO EDITORS: To receive Cabot Industrial Trust's latest news
release and other corporate documents via FAX, at no cost, dial
1-800-PRO-INFO. Use the company's ticker, CTR
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