$0.51 IN FFO PER SHARE; Year-over-year growth of 11%
Highlights include:
* 11% growth in FFO per share; 44% growth in rental revenue versus year
earlier results
* Same store basis NOI growth of 5%; rent growth in lease rollovers of
12%
* Acquired $156 million in properties in 17 transactions yielding an
average of 10.3%
* Completed $75 million in two separate perpetual preferred equity
financings at blended yield of 8.6%
BOSTON, Oct. 27 /PRNewswire/ -- Cabot Industrial Trust (NYSE: CTR) today
reported funds from operations (FFO) per share of $0.51 for the quarter ended
September 30, 1999; funds available for distribution were $0.46. For the
quarter Cabot has grown FFO per share by 11% and year to date Cabot has grown
FFO per share by 14% (prior year first quarter is pro forma since the company
commenced operations on February 4, 1998).
Ferdinand Colloredo-Mansfeld, CEO and Chairman of Cabot Industrial Trust
remarked, "Over the course of this year we have focused on growing FFO per
share, expanding our property management network, building concentrations in
our target markets and maintaining a flexible and strong capital position.
Results year to date and particularly during the course of this quarter show
the strong progress we have made in each of these areas."
Property Operations Generate Quarterly Internal Growth of 5% Year Over
Year
During the quarter Cabot completed 1.4 million square feet in leases.
Occupancy increased to over 98% and increased rents on new leases averaged
12% for the quarter. Rent increases for the quarter by property type were 4%
for bulk, 12% for multitenant and 18% for workspace. Same store cash basis
NOI grew by 5% compared to the prior year quarter.
Building Concentrations in Target Markets Through Acquisitions and
Development
During the quarter Cabot acquired $156 million in properties in
17 separate transactions. The properties were acquired at average annual
yields of 10.3%. Cabot's acquisitions increased its penetrations in 9 target
markets: Chicago, Charlotte, Dallas, Dulles Airport, Los Angeles, Minneapolis,
San Diego, San Francisco and South Florida. Cabot's development program
currently has 2.7 million square feet (a $130 million investment) under
development in 11 sub-markets. Five projects totaling 511,782 square feet
representing an investment of $20 million are stabilized or fully leased, with
12% average yields.
Flexible Capital Structure 30.9% Debt to Total Assets
During the quarter Cabot completed two separate perpetual preferred equity
financings: the first financing closed on September 3 for $65 million with a
coupon rate of 8 5/8% and on September 27 a second financing for $10 million
with a coupon rate of 8 3/8% was completed. In both cases the securities are
callable in five years. At September 30 Cabot had $234 million available on
its unsecured credit facility and its debt to total assets stood at 30.9%.
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 291 properties containing
35 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
Funds From Operations
(Unaudited, In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
September 30, 1999 September 30, 1999
Net Income $ 12,816 $ 35,668
Add:
Minority Interest 2,606 10,472
Real Estate Related Depreciation
and Amortization 8,028 22,159
Settlement of Treasury Lock -- 2,492
Preferred Unit Distributions (1,834) (2,815)
Gain (Loss) on Sale of
Real Estate 653 (2,751)
Funds from Operations $ 22,269 $ 65,225
Weighted Average Shares Outstanding(a)
Basic 43,634 43,597
Diluted 43,703 43,615
Funds from Operations per Share (a)
Basic $ 0.51 $ 1.50
Diluted $ 0.51 $ 1.50
CABOT INDUSTRIAL TRUST
Funds Available For Distribution
(Unaudited, In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
September 30, 1999 September 30, 1999
Funds from Operations $ 22,269 $ 65,225
Adjustments:
Straightline Rental Income (989) (2,365)
Amortization of Deferred
Financing Costs 317 725
Leasing Commissions and Tenant
Improvements (911) (3,704)
Building Improvements (704) (1,419)
Funds Available for Distribution $ 19,982 $ 58,462
Funds Available for Distribution
per Share(a)
Basic $ 0.46 $ 1.34
Diluted $ 0.46 $ 1.34
(a) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding.
CABOT INDUSTRIAL TRUST
Summary Unaudited Quarterly Results
(In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
September 30, 1999 September 30, 1999
Rental Revenues $ 40,840 $ 112,160
Weighted average common shares
outstanding:
Basic 41,155 35,892
Diluted 41,155 35,892
Net income per common share:
Basic $ 0.31 $ 0.99
Diluted $ 0.31 $ 0.99
Funds from operations (a) $ 22,269 $ 65,225
Average shares outstanding (b)
Basic 43,634 43,597
Diluted 43,703 43,615
Funds from operations per common
share (b)
Basic $ 0.51 $ 1.50
Diluted $ 0.51 $ 1.50
Occupancy Rates September 30, 1999
Bulk Distribution Properties 98.0 %
Multitenant Distribution
Properties 98.7 %
Workspace Properties 97.7 %
Weighted average total 98.2 %
(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 Statement of Operations
(Unaudited, In Thousands, Except Per Share Data)
Quarter Ended Nine Months Ended
September 30, 1999 September 30, 1999
REVENUES
Rental Income $ 35,388 $ 96,613
Tenant Reimbursements 5,452 15,547
Interest and Other Income 274 780
Gain (Loss) on Sale of Real Estate (653) 2,751
Total Revenues $ 40,461 $ 115,691
EXPENSES
Property Operating $ 3,090 $ 8,519
Property Taxes 4,564 12,534
General and Administrative 2,254 6,575
Interest 7,090 17,227
Depreciation and Amortization 8,041 22,204
Settlement of Treasury Lock -- 2,492
Total Expenses $ 25,039 $ 69,551
Income Before Minority Interest $ 15,422 $ 46,140
Minority Interest $ (2,606) $ (10,472)
Net Income $ 12,816 $ 35,668
Weighted Average Shares Outstanding:
Basic 41,155 35,892
Diluted 41,155 35,892
Net Income per Common Share:
Basic $ 0.31 $ 0.99
Diluted $ 0.31 $ 0.99
CABOT INDUSTRIAL TRUST
Consolidated Balance Sheet
(In Thousands, Except Share Data)
September 30, 1999 December 31, 1998
(unaudited)
ASSETS
Rental Properties $1,389,886 $1,072,675
Less: Accumulated Depreciation (35,352) (17,290)
Properties Under Development 54,466 23,108
Net Real Estate Investments $1,409,000 $1,078,493
Cash and Cash Equivalents $ 13,670 $ 2,301
Rents and Other Receivables, net of
reserve for uncollectible accounts
of $439 and $312 at September 30,
1999 and December 31, 1998,
respectively 4,306 2,872
Deferred Rent Receivable 4,976 2,638
Deferred Lease Acquisition Costs, net 21,531 17,362
Deferred Financing Costs, net 3,664 1,255
Other Assets 6,068 5,649
TOTAL ASSETS $1,463,215 $1,110,570
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage Debt $ 160,441 $ 48,206
Unsecured Debt 200,000 --
Line of Credit Borrowings 91,000 200,000
Accounts Payable and Accrued Real
Estate Taxes 12,622 7,820
Tenant Security Deposits and Prepaid
Rent 6,342 4,956
Distributions Payable 15,278 14,134
Other Liabilities 22,735 18,156
Total Liabilities $ 508,418 $ 293,272
MINORITY INTEREST
8.625% Series B Cumulative Redeemable
Perpetual Preferred Units $ 63,175 $ --
8.625% Series C Cumulative Redeemable
Perpetual Preferred Units 63,175 --
8.375% Series D Cumulative Redeemable
Perpetual Preferred Units 9,715 --
Limited Partnership Units 56,557 468,311
Total Minority Interest $ 192,622 $ 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 September
30, 1999 and December 31, 1998,
respectively $ 406 $ 186
Additional paid-in capital 767,776 348,912
Retained deficit(6,007)(111)
Total Shareholders' Equity $ 762,175 $ 348,987
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $1,463,215 $1,110,570
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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