Strong development results year to date
Highlights include:
* Quarterly FFO per share of $0.57; growth of 11.8% over third quarter 1999
* During the quarter, brought on-line and stabilized $21.1 million of
development at yields of 15.8%
* Average rent increase of 10%; portfolio occupancy rose to 97.8%
* Launched $250 million joint venture with GE Capital Real Estate
* Closed on $21.7 million in joint venture acquisitions
* Completed $55 million Medium Term Notes offering
BOSTON, Oct. 25 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported that for the quarter ended September 30, 2000, rental revenues were
$54.5 million and Funds from Operations ("FFO") per share on a diluted basis
was $0.57. This represents revenue growth of 33% and FFO per share growth of
11.8%, compared to reported results for the third quarter 1999.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000218/CABOTLOGO )
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
commented, "We are pleased to report our eleventh consecutive quarter of
continuous strong increases in FFO per share and rental revenues. Our growth
this quarter was driven by rent growth, sustained high occupancy levels and
strong property development results. Demand for our properties remains very
strong. Our financial objectives continue to include generating consistent
growth in FFO per share as well as maintaining financial flexibility through a
conservative capital structure. Moreover, our proven ability to access
different sectors of the capital markets was demonstrated by the commitment of
$100 million of private equity from GE Capital Real Estate ("GECC") and the
successful launch of our Medium Term Note program."
Year-to-date $41.8 million in development brought on-line at 13.7% yields
Cabot's ongoing development program includes $259.7 million of projects in
twelve submarkets across the country at various stages of pre-development,
construction and lease-up. During the quarter, projects with costs of $21.1
million were stabilized and brought on-line at 15.8% yields. Leasing activity
has been extremely strong. Year-to-date, $41.8 million has been stabilized
and brought on-line at 13.7% yields. Additionally, $35.7 million of projects
which are at shell completion at September 30, 2000 are 68% leased.
"CABOT tech" workspace development projects stabilized and brought on-line
during the quarter included buildings in Northern Virginia and the Baltimore-
Washington Corridor, with average stabilized yields of 17.0% and 13.3%,
respectively. New CABOT tech projects are under development in Northern
Virginia, the Baltimore-Washington Corridor, Dallas, Texas and the West Palm
Beach, Florida markets.
Rent growth of 10.4%; occupancy of 97.8%
Cabot now has 721 tenants, predominantly serviced through its own ten
property management offices. Over the course of the third quarter, the
Company leased 1.7 million square feet, and achieved rent growth of 10.4% on
new leases. Year-to-date rent growth for workspace properties continues to be
strongest at 17.2%, with multitenant properties at 11.7% and bulk properties
at 8.4%.
Same store cash basis NOI growth in the quarter was impacted by an
approximate 1% drop in occupancy in the same store portfolio as the Company's
leasing objectives are prioritizing rent growth over occupancy, given the
extraordinarily high occupancy portfolio-wide at 97.8%. As a result, same
store cash basis NOI grew by 2.1% over the third quarter of 1999.
$21.7 million in acquisitions in the quarter for joint venture programs
During the quarter, Cabot completed 2 acquisition transactions for joint
venture programs, totaling $21.7 million, at an average stabilized yield of
12.1%. These acquisitions comprised 9 buildings totaling 469,502 square feet,
which were 88% leased to 18 tenants.
New sources of capital - continued strong capital base
During the quarter, Cabot formed a $250 million joint venture investment
program with GECC. GECC has committed $100 million in equity or 80% of the
total equity, and leverage is targeted to be 50% of the total capitalized
value of the program. In addition, Cabot established a Medium Term Note
program enhancing its access to the public debt markets and issued $55 million
in notes. $40 million in notes are 10 year securities with a coupon of 8.5%
and $15 million of notes have a 5 year maturity with a coupon of 8.2%.
At quarter end, Cabot's debt-to-book asset ratio was 36.1%. Its debt
service coverage ratio was 3.1 times, fixed charge coverage ratio was 2.3
times, and FFO payout ratio was 62%.
Conference Call - The Company will hold its quarterly investor/analyst
conference call on October 26, 2000 beginning at 1:00 p.m. 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
October 26, 2000 through November 2, 2000 at 12:00 p.m. (EDT). The dial in
number for the rebroadcast is 1-800-938-1593 with a passcode of 99922.
Cabot Industrial Trust is a fully integrated real estate company, with
offices in Boston, Atlanta, Baltimore, Charlotte, Chicago, Cincinnati, Dallas,
Los Angeles, Orlando and Phoenix, which specializes in the ownership,
acquisition, and development of industrial properties. At September 30, 2000,
it owned 353 operating properties containing 42 million square feet in 22
states. The Company also manages an additional 11 million square feet of
property for investment advisory accounts and for joint ventures. 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
September 30, 2000 September 30, 1999
Rental Revenues $54,477 $40,840
Weighted average common shares outstanding:
Basic 40,624 41,155
Diluted 40,624 41,155
Net income per common share:
Basic $0.33 $0.31
Diluted $0.33 $0.31
Funds from operations (1) $24,971 $22,269
Average shares outstanding (2)
Basic 43,668 43,634
Diluted 43,763 43,703
Funds from operations per common share (2)
Basic $0.57 $0.51
Diluted $0.57 $0.51
Occupancy Rates September 30, 2000 September 30, 1999
Bulk Distribution Properties 97.9% 98.0%
Multitenant Distribution Properties 96.9% 98.7%
Workspace Properties 99.1% 97.7%
Weighted average total 97.8% 98.2%
(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)
Nine Months Ended Nine Months Ended
September 30, 2000 September 30, 1999
Rental Revenues $156,463 $112,160
Weighted average common shares outstanding:
Basic 40,621 35,892
Diluted 40,621 35,892
Net income per common share:
Basic $0.96 $0.99
Diluted $0.96 $0.99
Funds from operations (1) $72,882 $62,733(3)
Average shares outstanding (2)
Basic 43,668 43,597
Diluted 43,735 43,615
Funds from operations per common share (2)
Basic $1.67 $1.44(3)
Diluted $1.67 $1.44(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 nine months ended September 30, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492 and
were reported as $65,225 and $1.50, respectively.
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
September 30, 2000 December 31, 1999
(unaudited)
ASSETS
Rental Properties $1,682,559 $1,507,834
Less: Accumulated Depreciation (68,059) (42,543)
Properties Under Development 64,585 63,938
Net Real Estate Investments $1,679,085 $1,529,229
Cash and Cash Equivalents $255 $22,007
Rents and Other Receivables, net
of reserve for uncollectible
accounts of $1,143 and $574 at
September 30, 2000 and
December 31, 1999, respectively 3,095 3,828
Deferred Rent Receivable 10,460 6,079
Deferred Lease Acquisition Costs, net 33,884 23,913
Deferred Financing Costs, net 3,565 3,369
Investment in and Notes Receivable
from Joint Ventures 13,048 --
Other Assets 8,417 5,059
TOTAL ASSETS $1,751,809 $1,593,484
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $234,354 $163,866
Unsecured Debt 255,000 200,000
Line of Credit Borrowings 140,000 163,000
Accounts Payable and Accrued Real
Estate Taxes 13,909 11,143
Tenant Security Deposits and
Prepaid Rent 9,036 11,205
Distributions Payable 18,549 15,437
Other Liabilities 27,960 20,117
Total Liabilities $698,808 $584,768
MINORITY INTEREST
Cumulative Redeemable Perpetual
Preferred Units $238,205 $189,805
Limited Partnership Units 56,788 57,169
Total Minority Interest $294,993 $246,974
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value,
150,000,000 shares authorized,
40,624,833 and 40,619,420 shares
issued and outstanding at September
30, 2000 and December 31, 1999,
respectively $406 $406
Additional paid-in capital 768,303 767,774
Retained deficit (10,701) (6,438)
Total Shareholders' Equity $758,008 $761,742
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,751,809 $1,593,484
CABOT INDUSTRIAL TRUST
CONSOLIDATED QUARTERLY STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
September 30, 2000 September 30, 1999
REVENUES
Rental Income $46,530 $35,388
Tenant Reimbursements 7,947 5,452
Interest and Other Income 691 274
Gain (Loss) on Sale of Real Estate -- (653)
Total Revenues $55,168 $40,461
EXPENSES
Property Operating $4,892 $3,090
Property Taxes 6,165 4,564
General and Administrative 2,448 2,254
Interest 11,373 7,090
Depreciation and Amortization 10,734 8,041
Total Expenses $35,612 $25,039
Income Before Minority Interest $19,556 $15,422
Minority Interest:
Preferred Units (5,294) (1,834)
Limited Partnership Units (996) (772)
Net Income $13,266 $12,816
Weighted Average Shares Outstanding:
Basic 40,624 41,155
Diluted 40,624 41,155
Net Income per Common Share:
Basic $0.33 $0.31
Diluted $0.33 $0.31
CABOT INDUSTRIAL TRUST
CONSOLIDATED YEAR-TO-DATE STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Nine Months Ended Nine Months Ended
September 30, 2000 September 30, 1999
REVENUES
Rental Income $134,273 $96,613
Tenant Reimbursements 22,190 15,547
Interest and Other Income 1,654 780
Gain on Sale of Real Estate -- 2,751
Total Revenues $158,117 $115,691
EXPENSES
Property Operating $14,143 $8,519
Property Taxes 18,085 12,534
General and Administrative 7,145 6,575
Interest 31,383 17,227
Depreciation and Amortization 31,025 22,204
Settlement of Treasury Lock -- 2,492
Total Expenses $101,781 $69,551
Income Before Minority Interest $56,336 $46,140
Minority Interest:
Preferred Units (14,410) (2,815)
Limited Partnership Units (2,927) (7,657)
Net Income $38,999 $35,668
Weighted Average Shares Outstanding:
Basic 40,621 35,892
Diluted 40,621 35,892
Net Income per Common Share:
Basic $0.96 $0.99
Diluted $0.96 $0.99
CABOT INDUSTRIAL TRUST
QUARTERLY FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
September 30, 2000 September 30, 1999
Net Income $13,266 $12,816
Add:
Minority Interest 6,290 2,606
Real Estate Related Depreciation
and Amortization 10,709 8,028
Preferred Unit Distributions (5,294) (1,834)
Loss on Sale of Real Estate -- 653
Funds from Operations $24,971 $22,269
Weighted Average Shares Outstanding (1)
Basic 43,668 43,634
Diluted 43,763 43,703
Funds from Operations per Share (1)
Basic $0.57 $0.51
Diluted $0.57 $0.51
CABOT INDUSTRIAL TRUST
QUARTERLY FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Quarter Ended Quarter Ended
September 30, 2000 September 30, 1999
Funds from Operations $24,971 $22,269
Adjustments:
Straightline Rental Income (1,743) (989)
Amortization of Deferred Financing
Costs 312 317
Leasing Commissions and Tenant
Improvements (2,002) (911)
Building Improvements (593) (704)
Funds Available for Distribution $20,945 $19,982
Funds Available for Distribution per Share (1)
Basic $0.48 $0.46
Diluted $0.48 $0.46
(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)
Nine Months Ended Nine Months Ended
September 30, 2000 September 30, 1999
Net Income $38,999 $35,668
Add:
Minority Interest 17,337 10,472
Real Estate Related Depreciation
and Amortization 30,956 22,159
Preferred Unit Distributions (14,410) (2,815)
Gain on Sale of Real Estate -- (2,751)
Funds from Operations $72,882 $62,733(2)
Weighted Average Shares Outstanding (1)
Basic 43,668 43,597
Diluted 43,735 43,615
Funds from Operations per Share (1)
Basic $1.67 $1.44(2)
Diluted $1.67 $1.44(2)
CABOT INDUSTRIAL TRUST
YEAR-TO-DATE FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Nine Months Ended Nine Months Ended
September 30, 2000 September 30, 1999
Funds from Operations $72,882 $62,733(2)
Adjustments:
Straightline Rental Income (4,381) (2,365)
Amortization of Deferred Financing
Costs 926 725
Leasing Commissions and Tenant
Improvements (5,482) (3,704)
Building Improvements (1,892) (1,419)
Funds Available for Distribution $62,053 $55,970(2)
Funds Available for Distribution per Share (1)
Basic $1.42 $1.28(2)
Diluted $1.42 $1.28(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 nine months ended September 30, 1999 did not
include the expense of the Settlement of Treasury Lock of $2,492 and
were reported as $65,225 and $1.50, 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-Mansfeld, Chief Financial
Officer of Cabot Industrial Trust, 617-723-0900
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