ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (the “Company”) (NYSE: CXP) reported
financial results today for the first quarter March 31, 2014.
Highlights:
-
For the first quarter of 2014, compared with the prior-year period,
Normalized Funds from Operations (FFO) per diluted share increased 6%
to $0.51, Adjusted Funds from Operations (AFFO) per diluted share
decreased 8% to $0.33, and Net Income Attributable to Common
Shareholders per diluted share increased to $0.03 from a prior-year
loss
-
Completed 460,000 square feet of new and renewal leasing
-
Executed growth strategy with acquisition of 221 Main Street in San
Francisco for $228.8 million
-
Raising the lower end of 2014 Normalized FFO guidance range
"We continued to make significant progress in the first quarter,
advancing our key objectives of adding growth opportunities to the
portfolio and executing key leases," noted Nelson Mills, President, CEO
and Director of Columbia Property Trust. “The better-than-expected
Normalized FFO growth reflects our solid portfolio and clearly sets the
tone for a strong year in 2014. Our acquisition of 221 Main Street and
recent leasing results enable an increase in the NOI target as well as
the lower end of Normalized FFO guidance. We will continue to build on
this success as we pursue new value-creation opportunities, potentially
funded with non-core dispositions later in the year."
Acquisition Activity:
-
In April, we closed on the purchase of 221 Main Street, a
387,943-square-foot Class-A office tower in San Francisco for $228.8
million. Located in San Francisco’s South Financial District, the
property is currently 81% occupied with in-place rents well below
market. The acquisition offers us the opportunity to substantially
increase Net Operating Income (NOI) from this property by utilizing
our leasing expertise.
Capital Markets Activity:
-
In connection with the acquisition of 221 Main Street, we assumed a
$73.0 million interest-only loan secured by the property that matures
in May 2017 and bears interest at 3.95%. The loan becomes only our
ninth secured mortgage in the portfolio with over 69% of our portfolio
remaining unencumbered (based on Gross Real Estate Assets).
Portfolio Highlights:
-
During the first quarter, we entered into leases for approximately
460,000 rentable square feet of office space (the majority related to
renewal leasing) with an average lease term of approximately 13.7
years. Our first quarter leasing activity was primarily related to the
renewal and extension lease with T. Rowe Price Associates for 424,877
square feet at our 100 East Pratt property in Baltimore.
-
As of March 31, 2014, our portfolio of 59 office properties was 92.4%
leased and 91.5% occupied compared with 93.3% leased and 92.5%
occupied as of March 31, 2013.
-
Primarily due to the T. Rowe Price Associates lease mentioned above,
we achieved a 98.8% tenant retention ratio with positive net
absorption of approximately 18,000 square feet. For leases executed
during the quarter, we experienced a 20.1% decrease in rental rates on
a cash basis and a 5.3% decrease in rental rates on a GAAP basis.
Financial Results:
Net Income Attributable to Common Stockholders was $3.4 million, or
$0.03 per diluted share, for the first quarter of 2014 compared with a
Net Loss Attributable to Common Stockholders of $22.6 million, or $0.17
per diluted share, for the first quarter of 2013.
FFO was $63.1 million, or $0.51 per diluted share, for the first quarter
of 2014 compared with $36.8 million, or $0.27 per diluted share, in the
prior-year period.
Normalized FFO was $63.1 million, or $0.51 per diluted share, for the
first quarter of 2014 compared with $66.0 million, or $0.48 per diluted
share, in the prior-year period.
AFFO was $41.3 million, or $0.33 per diluted share, for the first
quarter of 2014 compared with $48.6 million, or $0.36 per diluted share,
in the prior-year period.
NOI for the first quarter of 2014 decreased 12.5% on a GAAP basis and
decreased 8.1% on a cash basis compared with the prior-year period,
primarily due to the sale of 18 properties in November 2013. Same Store
NOI for the first quarter of 2014 decreased 0.7% compared with the
prior-year period on a GAAP basis and increased 1.7% on a cash basis.
Distributions:
For the first quarter of 2014, the Company paid a dividend of $0.30 per
share, or an annualized rate of $1.20 per share. The dividend was paid
on March 18, 2014 to stockholders of record as of March 3, 2014.
Guidance for 2014:
Based on favorable cash NOI, recent leasing activity, and a recent
acquisition, the Company is raising the lower end of its previous
guidance for 2014. For the year ending December 31, 2014, the Company
now expects to report Normalized FFO in the range of $1.92 to $1.98 per
diluted share and Net Income Available to Common Stockholders in the
range of $0.49 to $0.51 per diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to Normalized FFO per diluted share is
provided as follows:
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Full Year
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2014 Range
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Low
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High
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Net income available to common stockholders
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$
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0.49
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$
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0.51
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Plus: Real estate depreciation & amortization
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1.43
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1.47
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Total Normalized FFO
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$
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1.92
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$
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1.98
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The Company’s updated guidance for 2014 is based on the following
assumptions for the Company’s portfolio. This guidance excludes the
impact of the GAAP treatment of gain or loss on interest rate swaps.
-
Leased percentage at year end 2014 of 92.0% to 94.0%
-
Same Store Cash NOI growth of 2.0% to 4.0%
-
GAAP straight-lined rental income of $8 million to $10 million
-
G&A of $32 million to $34 million, excluding any unusual or one-time
items
-
Acquisitions of $250 million to $350 million (of which $229 million
has been completed)
-
Dispositions of $250 million to $350 million
-
Weighted average diluted share count of 125.0 million
These estimates reflect management's view of current market conditions
and incorporate certain economic and operational assumptions and
projections. This annual guidance includes the continued repositioning
of the portfolio based on the above assumptions. Actual results could
differ from these estimates. Note that individual quarters may fluctuate
on both a cash basis and an accrual basis due to lease commencements and
expirations, the timing of repairs and maintenance, capital
expenditures, capital markets activities and one-time revenue or expense
events. In addition, the Company's guidance is based on information
available to management as of the date of this release.
Investor Conference Call and Webcast:
The Company will host a conference call and live audio webcast, both
open for the general public to hear, on Friday, May 9, 2014, at
10:00 a.m. ET to discuss quarterly financial results, business
highlights and provide a Company update. The number to call for this
interactive teleconference is (212) 231-2910. A replay of the conference
call will be available through May 16, 2014, by dialing (800) 633-8284
or (402) 977-9140 and entering the confirmation number, 21713340.
The live audio webcast of the Company’s quarterly conference call will
be available online in the Investor Relations section of the Company’s
website at www.ColumbiaPropertyTrust.com.
The online replay will be available in the Investor Relations section of
the Company’s website shortly after the call and archived for
approximately twelve months following the call.
About Columbia Property Trust
One of the nation’s largest office REITs, Columbia Property Trust
invests in high-quality commercial office properties in primary markets
nationwide and has achieved an investment-grade rating from both Moody's
and Standard & Poor’s rating services. Columbia Property Trust's
portfolio consists of 44 properties, which include 60 operational
buildings, comprising approximately 17.2 million square feet located in
13 states and the District of Columbia. For information about Columbia
Property Trust, visit www.ColumbiaPropertyTrust.com.
Non-GAAP Supplemental Financial Measure Definitions:
The following non-GAAP Supplemental Financial Measures include
earnings (or components of earnings), as defined, from both continuing
operations and discontinued operations as presented in the accompanying
consolidated statements of operations.
Funds from Operations - Funds from operations (“FFO”) is a
non-GAAP measure used by many investors and analysts that follow the
real estate industry to measure the performance of an equity REIT. We
consider FFO a useful measure of our performance because it principally
adjusts for the effects of GAAP depreciation and amortization of real
estate assets, which assume that the value of real estate diminishes
predictably over time. Since real estate values have historically risen
or fallen with market conditions, we believe that FFO provides a
meaningful supplemental measure of our performance. We believe that the
use of FFO, combined with the required GAAP presentations, is beneficial
in improving our investors' understanding of our operating results and
allowing for comparisons among other companies who define FFO as we do.
FFO, as defined by the National Association of Real Estate Investment
Trusts ("NAREIT"), represents net income (computed in accordance with
GAAP), excluding gain on disposition of discontinued operations,
impairment loss on real estate assets, plus depreciation of real estate
assets and amortization of lease-related costs. We compute FFO in
accordance with NAREIT's definition, which may differ from the
methodology for calculating FFO, or similarly titled measures, used by
other companies and this may not be comparable to those presentations.
FFO does not represent amounts available for management's
discretionary use because of needed capital replacement or expansion,
debt service obligations or other commitments and uncertainties, nor is
it indicative of funds available to fund the Company's cash needs,
including its ability to make distributions. Our presentation of FFO
should not be considered as an alternative to net income.
Normalized FFO - We calculate Normalized FFO by starting with
FFO, as defined by NAREIT, and adjusting for (i) consulting and
transition services fees, (ii) real estate acquisition-related costs,
(iii) listing costs, and (iv) loss on early extinguishment of debt. Such
items create significant earnings volatility. We believe Normalized FFO
provides a meaningful measure of our operating performance and more
predictability regarding future earnings potential. Normalized FFO is a
non-GAAP financial measure and should not be viewed as an alternative
measurement of our operating performance to net income; therefore, it
should not be compared to other REITs' equivalent to Normalized FFO.
Adjusted Funds from Operations - AFFO is calculated by
adjusting Normalized FFO to exclude (i) additional amortization of lease
assets (liabilities), (ii) straight-line rental income, (iii) gain
(loss) on interest rate swaps, (iv) and non-incremental capital
expenditures, and adding back (v) stock based compensation and (vi)
non-cash interest expense. Because AFFO adjusts for income and expenses
that we believe are not reflective of the sustainability of our ongoing
operating performance, we believe AFFO provides useful supplemental
information. AFFO is a non-GAAP financial measure and should not be
viewed as an alternative measurement of our operating performance to net
income, as an alternative to net cash flows from operating activities or
as a measure of our liquidity.
EBITDA - EBITDA is defined as net income before interest,
taxes, depreciation and amortization. We believe EBITDA is a reasonable
measure of our liquidity. EBITDA is a non-GAAP financial measure and
should not be viewed as an alternative measurement of cash flows from
operating activities or other GAAP basis liquidity measures. Other REITs
may calculate EBITDA differently and our calculation should not be
compared to that of other REITs.
Adjusted EBITDA - Adjusted EBITDA is defined as net income
before interest, taxes, depreciation and amortization and incrementally
removing any impairment losses, gains or losses from sales of property,
consulting and transition services fees, real estate acquisition-related
costs, discontinued operations adjustments, or other extraordinary
items. We do not include impairment losses in this measure because we
feel these types of losses create volatility in our earnings and make it
difficult to determine the earnings generated by our ongoing business.
We believe adjusted EBITDA is a reasonable measure of our liquidity.
Adjusted EBITDA is a non-GAAP financial measure and should not be viewed
as an alternative measurement of cash flows from operating activities or
other GAAP basis liquidity measures. Other REITs may calculate adjusted
EBITDA differently and our calculation should not be compared to that of
other REITs.
Cash Net Operating Income (Cash NOI): Cash NOI is defined as
Adjusted EBITDA with the add-back of (i) asset management fees, (ii)
portfolio general and administrative expense, (iii) interest rate swap
valuation adjustments, (iv) interest expense associated with interest
rates swaps, (v) cash lease termination income, (vi) amortization of
deferred maintenance, (vii) straight line rent, (viii) net effect of
above/(below) market amortization, (ix) GAAP lease termination expense
(x) discontinued operations adjustments. The company uses this measure
to assess its operating results and believes it is important in
assessing operating performance. Cash NOI is a non-GAAP measure which
does not have any standard meaning prescribed by GAAP and therefore may
not be comparable to similar measures presented by other companies.
GAAP Net Operating Income (GAAP NOI): GAAP NOI is defined as
Adjusted EBITDA with the add-back of (i) asset management fees, (ii)
portfolio general and administrative expense, (iii) interest rate swap
valuation adjustments, (iv) interest expense associated with interest
rates swaps, (v) GAAP lease termination income, (vi) discontinued
operations adjustments. The company uses this measure to assess its
operating results and believes it is important in assessing operating
performance. GAAP NOI is a non-GAAP measure which does not have any
standard meaning prescribed by GAAP and therefore may not be comparable
to similar measures presented by other companies.
Forward-Looking Statements:
Certain statements contained in this press release other than
historical facts may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. We intend for all such
forward-looking statements to be covered by the applicable safe harbor
provisions for forward-looking statements contained in those acts. Such
statements include, in particular, statements about our plans,
strategies, guidance, and prospects and are subject to certain risks and
uncertainties, including known and unknown risks, which could cause
actual results to differ materially from those projected or anticipated.
Therefore, such statements are not intended to be a guarantee of our
performance in future periods. Such forward-looking statements can
generally be identified by our use of forward-looking terminology such
as "may," "will," "expect," "intend," "anticipate," "estimate,"
"believe," "continue," or other similar words. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. We make no representations or
warranties (express or implied) about the accuracy of any such
forward-looking statements contained in this press release, and we do
not intend to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are subject to risks,
uncertainties, and other factors and are based on a number of
assumptions involving judgments with respect to, among other things,
future economic, competitive, and market conditions, all of which are
difficult or impossible to predict accurately. To the extent that our
assumptions differ from actual conditions, our ability to accurately
anticipate results expressed in such forward-looking statements,
including our ability to generate positive cash flow from operations,
make distributions to stockholders, and maintain the value of our real
estate properties, may be significantly hindered. See Item 1A in the
Company's most recently filed Annual Report on Form 10-K for the year
ended December 31, 2013 for a discussion of some of the risks and
uncertainties that could cause actual results to differ materially from
those presented in our forward-looking statements. The risk factors
described in our Annual Report are not the only ones we face, but do
represent those risks and uncertainties that we believe are material to
us. Additional risks and uncertainties not currently known to us or that
we currently deem immaterial may also harm our business.
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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
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(Unaudited)
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Three months ended
March 31,
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2014
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2013
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Revenues:
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Rental income
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$
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100,567
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$
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101,306
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Tenant reimbursements
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23,733
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22,244
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Hotel income
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4,061
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4,954
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Other property income
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807
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288
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129,168
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128,792
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Expenses:
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Property operating costs
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38,980
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37,584
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Hotel operating costs
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4,141
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4,261
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Asset and property management fees:
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Related-party
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—
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4,693
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Other
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289
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613
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Depreciation
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27,304
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26,710
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Amortization
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18,521
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19,902
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Impairment loss on real estate assets
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13,550
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—
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General and administrative
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6,946
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36,819
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109,731
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130,582
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Real estate operating income (loss)
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19,437
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(1,790
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)
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Other income (expense):
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Interest expense
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(17,910
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)
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(26,134
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)
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Interest and other income
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1,810
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9,111
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Gain (loss) on interest rate swaps
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(230
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)
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57
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(16,330
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)
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(16,966
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)
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Income (loss) before income tax benefit
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3,107
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(18,756
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)
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Income tax benefit
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344
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101
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Income (loss) from continuing operations
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3,451
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(18,655
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)
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Discontinued operations:
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Operating income (loss) from discontinued operations
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277
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(13,967
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)
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Gain (loss) on disposition of discontinued operations
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(328
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)
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10,014
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Loss from discontinued operations
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(51
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)
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(3,953
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)
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Net income (loss)
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$
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3,400
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$
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(22,608
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)
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Per-share information – basic:
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Income (loss) from continuing operations
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$
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0.03
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$
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(0.14
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)
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Income (loss) from discontinued operations
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$
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0.00
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$
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(0.03
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)
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Net income (loss)
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$
|
0.03
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$
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(0.17
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)
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Weighted-average common shares outstanding – basic
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124,851
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136,521
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Per-share information – diluted:
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Income (loss) from continuing operations
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$
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0.03
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$
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(0.14
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)
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Income (loss) from discontinued operations
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$
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0.00
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$
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(0.03
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)
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Net income (loss)
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$
|
0.03
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$
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(0.17
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)
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Weighted-average common shares outstanding – diluted
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124,887
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136,521
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Dividends per share
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$
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0.300
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$
|
0.380
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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
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(Unaudited)
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March 31,
2014
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December 31,
2013
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Assets:
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Real estate assets, at cost:
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Land
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$
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703,552
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$
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706,938
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Buildings and improvements, less accumulated depreciation of
$631,773 and $604,497, as of March 31, 2014 and December 31, 2013,
respectively
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2,943,522
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2,976,287
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|
Intangible lease assets, less accumulated amortization of $307,524
and $298,975, as of March 31, 2014 and December 31, 2013,
respectively
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271,273
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|
|
|
281,220
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Construction in progress
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10,480
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|
7,949
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Total real estate assets
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|
3,928,827
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|
|
|
3,972,394
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Cash and cash equivalents
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|
86,243
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|
|
|
99,855
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|
Tenant receivables, net of allowance for doubtful accounts of $52 as
of December 31, 2013
|
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|
8,140
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|
|
7,414
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Straight line rent receivable
|
|
|
116,343
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|
|
|
113,592
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|
|
Prepaid expenses and other assets
|
|
|
39,969
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|
|
|
32,423
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|
|
Deferred financing costs, less accumulated amortization of $12,578
and $11,938, as of March 31, 2014 and December 31, 2013,
respectively
|
|
|
9,588
|
|
|
|
10,388
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|
|
Intangible lease origination costs, less accumulated amortization of
$219,623 and $216,598, as of March 31, 2014 and December 31, 2013,
respectively
|
|
|
140,457
|
|
|
|
148,889
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|
|
Deferred lease costs, less accumulated amortization of $30,116 and
$27,375, as of March 31, 2014 and December 31, 2013, respectively
|
|
|
98,563
|
|
|
|
87,527
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|
|
Investment in development authority bonds
|
|
|
120,000
|
|
|
|
120,000
|
|
|
Total assets
|
|
|
$
|
4,548,130
|
|
|
|
$
|
4,592,482
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Line of credit and notes payable
|
|
|
$
|
1,239,452
|
|
|
|
$
|
1,240,249
|
|
|
Bonds payable, net of discount of $1,007 and $1,070, as of March
31, 2014 and December 31, 2013, respectively
|
|
|
248,993
|
|
|
|
248,930
|
|
|
Accounts payable, accrued expenses, and accrued capital expenditures
|
|
|
90,096
|
|
|
|
99,678
|
|
|
Deferred income
|
|
|
24,628
|
|
|
|
21,938
|
|
|
Intangible lease liabilities, less accumulated amortization of
$79,502 and $76,500, as of March 31, 2014 and December 31, 2013,
respectively
|
|
|
70,783
|
|
|
|
73,864
|
|
|
Obligations under capital leases
|
|
|
120,000
|
|
|
|
120,000
|
|
|
Total liabilities
|
|
|
1,793,952
|
|
|
|
1,804,659
|
|
|
Commitments and Contingencies
|
|
|
—
|
|
|
|
—
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 900,000,000 shares authorized,
124,964,454 and 124,830,122 shares issued and outstanding as of
March 31, 2014 and December 31, 2013, respectively
|
|
|
1,249
|
|
|
|
1,248
|
|
|
Additional paid-in capital
|
|
|
4,600,355
|
|
|
|
4,600,166
|
|
|
Cumulative distributions in excess of earnings
|
|
|
(1,844,373
|
)
|
|
|
(1,810,284
|
)
|
|
Other comprehensive loss
|
|
|
(3,053
|
)
|
|
|
(3,307
|
)
|
|
Total equity
|
|
|
2,754,178
|
|
|
|
2,787,823
|
|
|
Total liabilities and equity
|
|
|
$
|
4,548,130
|
|
|
|
$
|
4,592,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS
AND ADJUSTED FUNDS FROM OPERATIONS
(in thousands, except per-share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Reconciliation of Net Income (Loss) to Funds From Operations,
Normalized Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
3,400
|
|
|
|
$
|
(22,608
|
)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate assets(1)
|
|
|
27,304
|
|
|
|
30,627
|
|
|
|
Amortization of lease-related costs(1)
|
|
|
18,521
|
|
|
|
21,947
|
|
|
|
Impairment loss on real estate assets(1)
|
|
|
13,550
|
|
|
|
16,867
|
|
|
|
Gain on disposition of discontinued operations
|
|
|
328
|
|
|
|
(10,014
|
)
|
|
|
Funds From Operations adjustments
|
|
|
59,703
|
|
|
|
59,427
|
|
|
|
Funds From Operations
|
|
|
$
|
63,103
|
|
|
|
$
|
36,819
|
|
|
|
Consulting and transition services fees(2)
|
|
|
—
|
|
|
|
29,187
|
|
|
|
Normalized FFO
|
|
|
$
|
63,103
|
|
|
|
$
|
66,006
|
|
|
|
Other income (expenses) included in net income (loss), which do not
correlate with our operations:
|
|
|
|
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities)(3)
|
|
|
(276
|
)
|
|
|
(618
|
)
|
|
|
Straight-line rental income(1)
|
|
|
(2,356
|
)
|
|
|
(6,593
|
)
|
|
|
Gain on interest rate swaps
|
|
|
(1,097
|
)
|
|
|
(1,678
|
)
|
|
|
Stock-based compensation expense(4)
|
|
|
507
|
|
|
|
—
|
|
|
|
Non-cash interest expense(5)
|
|
|
736
|
|
|
|
858
|
|
|
|
Total other non-cash adjustments
|
|
|
(2,486
|
)
|
|
|
(8,031
|
)
|
|
|
Non-incremental capital expenditures(6)
|
|
|
(19,344
|
)
|
|
|
(9,362
|
)
|
|
|
Adjusted FFO
|
|
|
$
|
41,273
|
|
|
|
$
|
48,613
|
|
|
|
Weighted-average shares outstanding - basic
|
|
|
124,851
|
|
|
|
136,521
|
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.51000
|
|
|
|
$
|
0.27000
|
|
|
|
Normalized FFO per share
|
|
|
$
|
0.51000
|
|
|
|
$
|
0.48000
|
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.33
|
|
|
|
$
|
0.36
|
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
124,887
|
|
|
|
136,521
|
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.51
|
|
|
|
$
|
0.27
|
|
|
|
Normalized FFO per share
|
|
|
$
|
0.51
|
|
|
|
$
|
0.48
|
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.33
|
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes amounts attributable to consolidated properties,
including discontinued operations.
|
|
|
|
|
(2)
|
Includes nonrecurring fees incurred under the consulting and
transition services agreements. See Quarterly Report on Form 10-Q
for the quarter ended March 31, 2013 and Annual Report on Form
10-K for the year ended December 31, 2012 for a description of
these fees.
|
|
|
|
|
(3)
|
GAAP implicitly assumes that the value of intangible lease assets
(liabilities) diminishes predictably over time and, thus, requires
these charges to be recognized ratably over the respective lease
terms. Such intangible lease assets (liabilities) arise from the
allocation of acquisition price related to direct costs associated
with obtaining a new tenant, the value of opportunity costs
associated with lost rentals, the value of tenant relationships,
and the value of effective rental rates of in-place leases that
are above or below market rates of comparable leases at the time
of acquisition. Like real estate values, market lease rates in
aggregate have historically risen or fallen with local market
conditions.
|
|
|
|
|
(4)
|
This item represents the noncash impact of compensation expense
related to stock grants under our 2013 Long-Term Incentive Plan.
|
|
|
|
|
(5)
|
This item represents amortization of financing costs paid in
connection with executing our debt instruments, and the accretion
of premiums (and amortization of discounts) on certain of our debt
instruments. GAAP requires these items to be recognized over the
remaining term of the respective debt instrument, which may not
correlate with the ongoing operations of our real estate portfolio.
|
|
|
|
|
(6)
|
Non-Incremental Capital Expenditures are defined as capital
expenditures related to tenant improvements and leasing
commissions that do not incrementally enhance the underlying
assets’ income generating capacity. We exclude first generation
tenant improvements and leasing commissions from this measure.
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME AND SAME STORE NET OPERATING INCOME - GAAP
BASIS
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Reconciliation of Net Income (Loss) to Net Operating Income and
Same Store Net Operating Income:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
3,400
|
|
|
|
$
|
(22,608
|
)
|
|
|
Net interest expense
|
|
|
17,910
|
|
|
|
26,134
|
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(9,107
|
)
|
|
|
Income tax benefit
|
|
|
(344
|
)
|
|
|
(101
|
)
|
|
|
Depreciation
|
|
|
27,304
|
|
|
|
26,710
|
|
|
|
Amortization
|
|
|
18,521
|
|
|
|
19,902
|
|
|
|
EBITDA
|
|
|
$
|
64,991
|
|
|
|
$
|
40,930
|
|
|
|
Impairment loss
|
|
|
13,550
|
|
|
|
—
|
|
|
|
Consulting and transition services fees(1)
|
|
|
—
|
|
|
|
29,187
|
|
|
|
Discontinued operations adjustment
|
|
|
328
|
|
|
|
13,945
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
78,869
|
|
|
|
$
|
84,062
|
|
|
|
Asset management fees(2)
|
|
|
—
|
|
|
|
5,083
|
|
|
|
General and administrative
|
|
|
6,946
|
|
|
|
7,632
|
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,097
|
)
|
|
|
(1,678
|
)
|
|
|
Interest expense associated with interest rate swaps
|
|
|
1,327
|
|
|
|
1,621
|
|
|
|
Lease termination income - GAAP(3)
|
|
|
(447
|
)
|
|
|
—
|
|
|
|
NOI - GAAP basis from discontinued operations adjustments
|
|
|
142
|
|
|
|
1,292
|
|
|
|
Net Operating Income - GAAP Basis
|
|
|
$
|
85,740
|
|
|
|
$
|
98,012
|
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(4)
|
|
|
—
|
|
|
|
—
|
|
|
|
Dispositions(5)
|
|
|
(295
|
)
|
|
|
(11,925
|
)
|
|
|
Same Store NOI - GAAP Basis
|
|
|
$
|
85,445
|
|
|
|
$
|
86,087
|
|
|
|
|
|
(1)
|
Includes nonrecurring fees incurred under the consulting and
transition services agreements, which were terminated effective
December 31, 2013. See Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013 and Annual Report on Form 10-K for
the year ended December 31, 2012 for a description of these fees.
|
|
|
|
|
(2)
|
Includes amounts attributable to consolidated properties,
including discontinued operations.
|
|
|
|
|
(3)
|
Includes adjustments for straight line-rent related to lease
terminations.
|
|
|
|
|
(4)
|
There were no acquisitions during the periods presented, so the
operating activity for all properties, other than those we have
sold, is included in the same store amounts.
|
|
|
|
|
(5)
|
Dispositions include: 2000 Park Lane, Lakepointes 3/5, Tampa
Commons, Baldwin Point, 180 E 100 South, Edgewater, 11950
Corporate Blvd, One West Fourth, Dvintsev Business Center B, 2500
Windy Ridge Parkway, 4200 Wildwood Parkway, 4100-4300 Wildwood
Parkway, 120 Eagle Rock, 919 Hidden Ridge, 4300 Centreway Place,
One Century Place, Sterling Commerce Center, Chase Center
Building, 4241 Irwin Simpson, 8990 Duke Road, 11200 West Parkland
Avenue, College Park Plaza, 1200 Morris Drive, 13655 Riverport
Drive, 15815 & 16201 25th Avenue West, and 333 & 777 Republic
Drive.
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME AND SAME STORE NET OPERATING INCOME - CASH
BASIS
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Reconciliation of Net Income to Net Operating Income and Same
Store Net Operating Income:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
3,400
|
|
|
|
$
|
(22,608
|
)
|
|
|
Net interest expense
|
|
|
17,910
|
|
|
|
26,134
|
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(9,107
|
)
|
|
|
Income tax benefit
|
|
|
(344
|
)
|
|
|
(101
|
)
|
|
|
Depreciation
|
|
|
27,304
|
|
|
|
26,710
|
|
|
|
Amortization
|
|
|
18,521
|
|
|
|
19,902
|
|
|
|
EBITDA
|
|
|
$
|
64,991
|
|
|
|
$
|
40,930
|
|
|
|
Impairment loss
|
|
|
13,550
|
|
|
|
—
|
|
|
|
Consulting and transition services fees(1)
|
|
|
—
|
|
|
|
29,187
|
|
|
|
Discontinued operations adjustments
|
|
|
328
|
|
|
|
13,945
|
|
|
|
Adjusted EBITDA
|
|
|
$
|
78,869
|
|
|
|
$
|
84,062
|
|
|
|
Asset management fees(2)
|
|
|
—
|
|
|
|
5,083
|
|
|
|
General and administrative
|
|
|
6,946
|
|
|
|
7,632
|
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,097
|
)
|
|
|
(1,678
|
)
|
|
|
Interest expense associated with interest rate swaps
|
|
|
1,327
|
|
|
|
1,621
|
|
|
|
Lease termination income - Cash(3)
|
|
|
(181
|
)
|
|
|
—
|
|
|
|
Amortization of deferred maintenance
|
|
|
125
|
|
|
|
47
|
|
|
|
Straight-line rent(2)
|
|
|
(2,356
|
)
|
|
|
(6,593
|
)
|
|
|
Net effect of above/(below) market amortization(2)
|
|
|
(402
|
)
|
|
|
(466
|
)
|
|
|
Lease termination expense - GAAP(4)
|
|
|
—
|
|
|
|
—
|
|
|
|
NOI - Cash basis from discontinued operations adjustments
|
|
|
18
|
|
|
|
835
|
|
|
|
Net Operating Income - Cash Basis
|
|
|
$
|
83,249
|
|
|
|
$
|
90,543
|
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(5)
|
|
|
—
|
|
|
|
—
|
|
|
|
Dispositions(6)
|
|
|
(295
|
)
|
|
|
(8,991
|
)
|
|
|
Same Store NOI - Cash Basis
|
|
|
$
|
82,954
|
|
|
|
$
|
81,552
|
|
|
|
|
|
(1)
|
Includes nonrecurring fees incurred under the consulting and
transition services agreements, which were terminated effective
December 31, 2013. See Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013 and Annual Report on Form 10-K for
the year ended December 31, 2012 for a description of these fees.
|
|
|
|
|
(2)
|
Includes amounts attributable to consolidated properties,
including discontinued operations.
|
|
|
|
|
(3)
|
Excludes adjustments for straight line-rent related to lease
terminations.
|
|
|
|
|
(4)
|
Includes adjustments for straight line-rent related to lease
terminations.
|
|
|
|
|
(5)
|
There were no acquisitions during the periods presented, so the
operating activity for all properties, other than those we have
sold, is included in the same store amounts.
|
|
|
|
|
(6)
|
Dispositions include: 2000 Park Lane, Lakepointes 3/5, Tampa
Commons, Baldwin Point, 180 E 100 South, Edgewater, 11950
Corporate Blvd, One West Fourth, Dvintsev Business Center B, 2500
Windy Ridge Parkway, 4200 Wildwood Parkway, 4100-4300 Wildwood
Parkway, 120 Eagle Rock, 919 Hidden Ridge, 4300 Centreway Place,
One Century Place, Sterling Commerce Center, Chase Center
Building, 4241 Irwin Simpson, 8990 Duke Road, 11200 West Parkland
Avenue, College Park Plaza, 1200 Morris Drive, 13655 Riverport
Drive, 15815 & 16201 25th Avenue West, and 333 & 777 Republic
Drive.
|
|
|
|
Analysts and Institutional Investors:
Columbia
Property Trust, Inc.
James A. Fleming, 404-465-2200
EVP -
Chief Financial Officer
or
Corporate Communications, Inc.
Tripp
Sullivan, 615-324-7335
tripp.sullivan@cci-ir.com
or
Shareholder
Services:
855-347-0042 (toll free)
Fax: 816-701-7629
shareholders@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.