ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (the “Company”) (NYSE: CXP) reported
financial results today for the fourth quarter and year ended December
31, 2013.
Highlights:
-
For the fourth quarter of 2013, compared with the prior-year period,
Normalized Funds from Operations (FFO) per diluted share increased 11%
to $0.52, Adjusted Funds from Operations (AFFO) per diluted share
increased 13% to $0.35, and Net Income Attributable to Common
Shareholders per diluted share increased 11% to $0.10
-
For the full year 2013, compared with 2012, Normalized FFO per diluted
share increased 4% to $2.08, AFFO per diluted share decreased 2% to
$1.41, and Net Income Attributable to Common Stockholders per diluted
share decreased 66% to $0.12
-
Completed $521.5 million sale of 18 properties and used proceeds to
pay down $90 million of secured debt and $115 million of unsecured
debt and to fund $234.1 million purchase of common shares
-
Completed 1.8 million square feet of new and renewal leasing in 2013
“The fourth quarter capped one of the more successful and important
years in the progression of our company,” noted Nelson Mills, President,
CEO and Director of Columbia Property Trust. “We gained substantial
momentum in leasing and operational performance, and we improved our
liquidity and strategic focus with a $500 million disposition of
selected assets. We are pleased with the growth in Normalized FFO and
AFFO in the quarter and the solid foundation it provides for executing
our business plan in 2014.
“We have outlined clear objectives for 2014 and beyond that we believe
will establish Columbia Property Trust, not only as an effective real
estate operator, but also as a proven value creator. We believe these
objectives will drive improved performance of our core portfolio as well
as generate opportunities for value creation and growth. We expect to
continue to build out our team with regional talent and relationships to
extend and enhance our operating platform within strategic markets. We
expect our acquisitions, anticipated to be primarily value-added
opportunities, to be funded with current balance sheet capacity and
potential disposition proceeds. We expect to continue to utilize our
investment grade balance sheet to capture opportunities that improve our
long-term earnings potential as well as enhance current value for our
shareholders.”
Portfolio Repositioning:
-
In November, we closed on the sale of 18 properties totaling
approximately 4.0 million square feet in 12 markets for a gross sales
price of $521.5 million, which meaningfully improves our geographical
concentration by reducing the number of markets in which we own
properties from 25 to 16.
Capital Markets Activity:
-
On October 10, 2013, the date of our listing on the NYSE, we commenced
a modified "Dutch-auction" tender offer to purchase for cash up to
$300.0 million in value of shares of our common stock (the “Tender
Offer”). On November 18, 2013, we used net proceeds from the sale of
18 properties described above to purchase in the Tender Offer 9.4
million shares of common stock at a purchase price of $25.00 per share
for an aggregate cost to us of $234.1 million, exclusive of fees and
expenses.
-
In November, we repaid the $90 million loan secured by the Wildwood
Parkway buildings in Atlanta with proceeds from our 18-property
disposition. As a result, we recorded a loss on early extinguishment
of debt in the fourth quarter of $4.7 million, or $0.04 per diluted
share.
Portfolio Highlights:
-
During the fourth quarter, we entered into leases for approximately
502,000 rentable square feet of office space (the majority related to
new leasing) with an average lease term of approximately 8.4 years.
Our fourth quarter leasing activity included:
-
New lease with Baker & Hostetler LLP for 115,615 square feet at
our Key Center property in Cleveland, OH.
-
Renewal lease with Novartis Pharmaceuticals for 71,057 square feet
at our 180 Park Avenue #105 property in Florham Park, NJ.
-
New lease with Net I.Q. Corporation for 55,380 square feet at our
515 Post Oak property in Houston, TX.
-
New lease with Amazon Web Services for 49,064 square feet at our
University Circle property in Palo Alto, CA.
-
Renewal lease with Deloitte & Touche for 41,718 square feet at our
Key Center property in Cleveland, OH.
-
Subsequent to quarter end, we signed a renewal and extension with T.
Rowe Price Associates for 424,877 square feet at our 100 East Pratt
property in Baltimore, MD.
-
For 2013, we entered into leases for approximately 1.8 million
rentable square feet of office space (including 587,000 square feet of
new leases) with an average lease term of approximately 10 years.
-
As of December 31, 2013, our portfolio of 59 office properties was
92.3% leased and 90.1% occupied compared with 92.9% leased and 92.1%
occupied for the same portfolio as of December 31, 2012.
-
As expected, we experienced the moveout of a 385,274-square-foot
tenant on November 30, 2013, at our 180 Park Avenue property in
Florham Park, NJ, that impacted our leasing metrics during the fourth
quarter. Because this 385,274-square-foot moveout offset other
positive leasing activity, we achieved a 28.7% tenant retention ratio
with negative net absorption of approximately 189,000 square feet. For
leases executed during the quarter, we experienced a 4.3% decrease in
rental rates on a cash basis and a 1.8% increase in rental rates on a
GAAP basis.
Financial Results:
Net Income Attributable to Common Stockholders was $12.9 million, or
$0.10 per diluted share, for the fourth quarter of 2013 compared with
Net Income Attributable to Common Stockholders of $11.9 million, or
$0.09 per diluted share, for the fourth quarter of 2012. Net Income
Attributable to Common Stockholders was $15.7 million, or $0.12 per
diluted share, for 2013 compared with Net Income Attributable to Common
Stockholders of $48.0 million, or $0.35 per diluted share, for 2012.
FFO was $59.4 million, or $0.46 per diluted share, for the fourth
quarter of 2013 compared with $60.8 million, or $0.44 per diluted share,
in the prior-year period. FFO for 2013 was $240.4 million, or $1.79 per
diluted share, compared with $268.9 million, or $1.97 per diluted share,
in the prior year.
Normalized FFO was $67.4 million, or $0.52 per diluted share, for the
fourth quarter of 2013 compared with $64.2 million, or $0.47 per diluted
share, in the prior-year period. Normalized FFO was $278.3 million, or
$2.08 per diluted share, for 2013 compared with $273.8 million, or $2.00
per diluted share, in the prior year.
AFFO was $45.1 million, or $0.35 per diluted share, for the fourth
quarter of 2013 compared with $42.4 million, or $0.31 per diluted share,
in the prior-year period. AFFO was $188.9 million, or $1.41 per diluted
share, for 2013 compared with $196.3 million, or $1.44 per diluted
share, for the prior year.
Net Operating Income (NOI) for the fourth quarter of 2013 decreased 6.5%
on a GAAP basis and decreased 3.5% on a cash basis compared with the
prior-year period, primarily due to the sale of 18 properties in
November. NOI for 2013 decreased 2.1% on a GAAP basis and decreased 3.4%
on a cash basis compared with the prior year, primarily for the same
reason. Same Store NOI for the fourth quarter of 2013 was flat compared
with the prior-year period on a GAAP basis and increased 0.9% on a cash
basis. Same Store NOI for 2013 increased 0.2% on a GAAP basis and
decreased 1.1% on a cash basis compared with the prior year.
Distributions:
For the fourth quarter of 2013, the Company paid a dividend of $0.30 per
share, or an annualized rate of $1.20 per share. The dividend was paid
on December 17, 2013 to stockholders of record as of December 3, 2013.
Guidance for 2014:
For the year ending December 31, 2014, the Company expects to report
Normalized FFO in the range of $1.90 to $1.98 per diluted share and Net
Income Available to Common Stockholders in the range of $0.47 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
2014 Range
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Low
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–
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High
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Net Income Available to Common Stockholders
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$0.47
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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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$1.90
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$1.98
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The Company’s 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 1.0% to 2.0%
-
GAAP straight-lined rental income of $8 million to $10 million
-
Corporate G&A of $32 million to $34 million, excluding any unusual or
one-time items
-
Dispositions of $250 million to $350 million
-
Acquisitions 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 Thursday, February 13, 2014, at
12:00 p.m. ET to discuss quarterly financial results, business
highlights and provide a Company update. The number to call for this
interactive teleconference is (212) 231-2905. A replay of the conference
call will be available through February 20, 2014, by dialing
(800) 633-8284 or (402) 977-9140 and entering the confirmation number,
21703613.
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. As of December 31, 2013, Columbia
Property Trust's $5 billion portfolio consists of 43 properties, which
include 59 operational buildings, comprising approximately 16.8 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) 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 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.
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, 2012 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.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except per-share amounts)
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(Unaudited)
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(Unaudited)
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Three months ended
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Nine months ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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Revenues:
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Rental income
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$
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100,639
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$
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95,791
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$
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406,907
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$
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381,796
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Tenant reimbursements
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24,292
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23,934
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90,875
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88,402
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Hotel income
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5,452
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5,522
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23,756
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23,049
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Other property income
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3,004
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256
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5,040
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1,024
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133,387
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|
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125,503
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526,578
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494,271
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Expenses:
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Property operating costs
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40,123
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39,549
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154,559
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147,202
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Hotel operating costs
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4,566
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4,356
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18,340
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18,362
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Asset and property management fees:
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Related-party
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-
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6,759
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4,693
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29,372
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Other
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289
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751
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1,671
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2,421
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Depreciation
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27,285
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24,933
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108,105
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98,698
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Amortization
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19,121
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19,319
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78,710
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86,458
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General and administrative
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8,210
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7,001
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61,866
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24,613
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Listing costs
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3,304
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-
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4,060
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-
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Acquisition fees and expenses
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-
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1,876
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-
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1,876
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102,898
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104,544
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432,004
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409,002
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Real estate operating income
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30,489
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20,959
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94,574
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85,269
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Other income (expense):
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Interest expense
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(23,191
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)
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(25,710
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)
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(101,941
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)
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(101,886
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)
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Interest and other income
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6,680
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9,817
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34,029
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39,856
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Loss on interest rate swaps
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(144
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)
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(1,107
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)
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(342
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)
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(1,225
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)
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(16,655
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)
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(17,000
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)
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(68,254
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)
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(63,255
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)
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Income before income tax benefit (expense)
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13,834
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3,959
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26,320
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22,014
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Income tax benefit (expense)
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146
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(28
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)
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(500
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)
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(572
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)
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Income from continuing operations
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13,980
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3,931
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25,820
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21,442
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Discontinued operations:
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Operating income (loss) from discontinued operations
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(2,264
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)
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4,752
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(21,325
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)
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6,484
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Gains on disposition of discontinued operations
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1,211
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|
|
3,170
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|
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11,225
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|
|
20,117
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Income (loss) from discontinued operations
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(1,053
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)
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7,922
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(10,100
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)
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26,601
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Net income
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12,927
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11,853
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15,720
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48,043
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Less: net income attributable to nonredeemable noncontrolling
interests
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-
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-
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-
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(4
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)
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Net income attributable to the common stockholders of Columbia
Property Trust, Inc.
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$
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12,927
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$
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11,853
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$
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15,720
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$
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48,039
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Per-share information – basic and diluted:
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Income from continuing operations
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$
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0.11
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$
|
0.03
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|
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$
|
0.19
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$
|
0.16
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Income (loss) from discontinued operations
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$
|
(0.01
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)
|
|
$
|
0.06
|
|
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$
|
(0.08
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)
|
|
$
|
0.19
|
|
|
Net income attributable to the common stockholders of Columbia
Property Trust, Inc.
|
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$
|
0.10
|
|
|
$
|
0.09
|
|
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$
|
0.12
|
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$
|
0.35
|
|
|
Weighted-average common shares outstanding – basic and diluted
|
|
|
129,410
|
|
|
|
137,009
|
|
|
|
134,085
|
|
|
|
136,672
|
|
|
Dividends per share
|
|
$
|
0.300
|
|
|
$
|
0.380
|
|
|
$
|
1.440
|
|
|
$
|
1.880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except share and per-share amounts)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Real estate assets, at cost:
|
|
|
|
|
|
Land
|
|
$
|
706,938
|
|
|
$
|
789,237
|
|
|
Buildings and improvements, less accumulated depreciation of
$604,497 and $580,334, as of December 31, 2013 and 2012, respectively
|
|
|
2,976,287
|
|
|
|
3,468,218
|
|
|
Intangible lease assets, less accumulated amortization of $298,975
and $315,840, as of December 31, 2013 and 2012, respectively
|
|
|
281,220
|
|
|
|
341,460
|
|
|
Construction in progress
|
|
|
7,949
|
|
|
|
12,680
|
|
|
Total real estate assets
|
|
|
3,972,394
|
|
|
|
4,611,595
|
|
|
Cash and cash equivalents
|
|
|
99,855
|
|
|
|
53,657
|
|
|
Tenant receivables, net of allowance for doubtful accounts of $52
and $117, as of December 31, 2013 and 2012, respectively
|
|
|
7,414
|
|
|
|
14,426
|
|
|
Straight-line rent receivable
|
|
|
113,592
|
|
|
|
119,673
|
|
|
Prepaid expenses and other assets
|
|
|
32,423
|
|
|
|
29,373
|
|
|
Deferred financing costs, less accumulated amortization of $11,938
and $8,527, as of December 31, 2013 and 2012, respectively
|
|
|
10,388
|
|
|
|
10,490
|
|
|
Intangible lease origination costs, less accumulated amortization of
$216,598 and $230,930, as of December 31, 2013 and 2012, respectively
|
|
|
148,889
|
|
|
|
206,927
|
|
|
Deferred lease costs, less accumulated amortization of $27,375 and
$24,222, as of December 31, 2013 and 2012, respectively
|
|
|
87,527
|
|
|
|
98,808
|
|
|
Investment in development authority bonds
|
|
|
120,000
|
|
|
|
586,000
|
|
|
Total assets
|
|
$
|
4,592,482
|
|
|
$
|
5,730,949
|
|
|
Liabilities:
|
|
|
|
|
|
Line of credit and notes payable
|
|
|
1,240,249
|
|
|
|
1,401,618
|
|
|
Bonds payable, net of discount of $1,070 and $1,322, as of December
31, 2013 and 2012, respectively
|
|
|
248,930
|
|
|
|
248,678
|
|
|
Accounts payable, accrued expenses, and accrued capital expenditures
|
|
|
99,678
|
|
|
|
102,858
|
|
|
Due to affiliates
|
|
|
-
|
|
|
|
1,920
|
|
|
Deferred income
|
|
|
21,938
|
|
|
|
28,071
|
|
|
Intangible lease liabilities, less accumulated amortization of
$76,500 and $84,326, as of December 31, 2013 and 2012, respectively
|
|
|
73,864
|
|
|
|
98,298
|
|
|
Obligations under capital leases
|
|
|
120,000
|
|
|
|
586,000
|
|
|
Total liabilities
|
|
|
1,804,659
|
|
|
|
2,467,443
|
|
|
Commitments and Contingencies
|
|
|
-
|
|
|
|
-
|
|
|
Redeemable Common Stock
|
|
|
-
|
|
|
|
99,526
|
|
|
Equity:
|
|
|
|
|
|
Common stock, $0.01 par value, 900,000,000 shares authorized,
124,830,122 and 136,900,911 shares issued and outstanding as of
December 31, 2013 and 2012, respectively
|
|
|
1,248
|
|
|
|
1,369
|
|
|
Additional paid-in capital
|
|
|
4,600,166
|
|
|
|
4,901,889
|
|
|
Cumulative distributions in excess of earnings
|
|
|
(1,810,284
|
)
|
|
|
(1,634,531
|
)
|
|
Redeemable common stock
|
|
|
-
|
|
|
|
(99,526
|
)
|
|
Other comprehensive loss
|
|
|
(3,307
|
)
|
|
|
(5,221
|
)
|
|
Total equity
|
|
|
2,787,823
|
|
|
|
3,163,980
|
|
|
Total liabilities, redeemable common stock, and equity
|
|
$
|
4,592,482
|
|
|
$
|
5,730,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
|
|
FUNDS FROM OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS
|
|
AND ADJUSTED FUNDS FROM OPERATIONS
|
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Reconciliation of Net Income to Funds From Operations, Normalized
Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the common stockholders of Columbia
Property Trust, Inc.
|
|
$
|
12,927
|
|
|
$
|
11,853
|
|
|
$
|
15,720
|
|
|
$
|
48,039
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate assets
|
|
|
27,689
|
|
|
|
29,540
|
|
|
|
119,835
|
|
|
|
120,307
|
|
|
Amortization of lease-related costs
|
|
|
19,999
|
|
|
|
22,589
|
|
|
|
86,300
|
|
|
|
102,234
|
|
|
Impairment loss on real estate assets
|
|
|
-
|
|
|
|
-
|
|
|
|
29,737
|
|
|
|
18,467
|
|
|
Gain on disposition of discontinued operations
|
|
|
(1,211
|
)
|
|
|
(3,170
|
)
|
|
|
(11,225
|
)
|
|
|
(20,117
|
)
|
|
Total Funds From Operations adjustments
|
|
|
46,477
|
|
|
|
48,959
|
|
|
|
224,647
|
|
|
|
220,891
|
|
|
Funds From Operations
|
|
$
|
59,404
|
|
|
$
|
60,812
|
|
|
$
|
240,367
|
|
|
$
|
268,930
|
|
|
Consulting and transition services fees (1)
|
|
|
-
|
|
|
|
1,500
|
|
|
|
29,187
|
|
|
|
3,000
|
|
|
Real estate acquisition-related costs
|
|
|
-
|
|
|
|
1,876
|
|
|
|
-
|
|
|
|
1,876
|
|
|
Listing costs
|
|
|
3,304
|
|
|
|
-
|
|
|
|
4,060
|
|
|
|
-
|
|
|
Loss on early extinguishment of debt
|
|
|
4,709
|
|
|
|
-
|
|
|
|
4,709
|
|
|
|
-
|
|
|
Normalized FFO
|
|
$
|
67,417
|
|
|
$
|
64,188
|
|
|
$
|
278,323
|
|
|
$
|
273,806
|
|
|
Other income (expenses) included in net income (loss), which do not
correlate with our operations:
|
|
|
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities) (2)
|
|
|
(85
|
)
|
|
|
(191
|
)
|
|
|
(1,668
|
)
|
|
|
(1,765
|
)
|
|
Straight-line rental income
|
|
|
(3,605
|
)
|
|
|
(6,238
|
)
|
|
|
(22,793
|
)
|
|
|
(11,033
|
)
|
|
Gain (loss) on interest rate swaps
|
|
|
(1,176
|
)
|
|
|
634
|
|
|
|
(5,530
|
)
|
|
|
(173
|
)
|
|
Non-cash interest expense (3)
|
|
|
655
|
|
|
|
988
|
|
|
|
3,602
|
|
|
|
3,881
|
|
|
Total other non-cash adjustments
|
|
|
(4,211
|
)
|
|
|
(4,807
|
)
|
|
|
(26,389
|
)
|
|
|
(9,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Non-incremental capital expenditures (4)
|
|
|
(18,118
|
)
|
|
|
(16,998
|
)
|
|
|
(63,005
|
)
|
|
|
(68,466
|
)
|
|
Adjusted FFO
|
|
$
|
45,088
|
|
|
$
|
42,383
|
|
|
$
|
188,929
|
|
|
$
|
196,250
|
|
|
Weighted-average shares outstanding
|
|
|
129,410
|
|
|
|
137,009
|
|
|
|
134,085
|
|
|
|
136,672
|
|
|
Per-share information
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
$
|
0.46
|
|
|
$
|
0.44
|
|
|
$
|
1.79
|
|
|
$
|
1.97
|
|
|
Normalized FFO per share
|
|
$
|
0.52
|
|
|
$
|
0.47
|
|
|
$
|
2.08
|
|
|
$
|
2.00
|
|
|
Adjusted FFO per share
|
|
$
|
0.35
|
|
|
$
|
0.31
|
|
|
$
|
1.41
|
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See 10-Q filed May 8, 2013 for a description of these one time
fees.
|
|
|
|
|
|
|
|
|
|
|
|
(2) 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.
|
|
|
|
|
|
|
|
|
|
|
|
(3) 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.
|
|
|
|
|
|
|
|
|
|
|
|
(4) Non-Incremental Capital Expenditures are defined as capital
expenditures of a recurring nature 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Reconciliation of Net Income to Net Operating Income and Same Store
Net Operating Income:
|
|
|
|
|
|
|
|
|
|
Net income attributable to the common stockholders of Columbia
Property Trust, Inc.
|
|
$
|
12,927
|
|
|
$
|
11,853
|
|
|
$
|
15,720
|
|
|
$
|
48,039
|
|
|
Net interest expense
|
|
|
23,191
|
|
|
|
25,710
|
|
|
|
101,941
|
|
|
|
101,886
|
|
|
Interest income from development authority bonds
|
|
|
(6,671
|
)
|
|
|
(9,814
|
)
|
|
|
(33,992
|
)
|
|
|
(39,835
|
)
|
|
Income tax expense (benefit)
|
|
|
(146
|
)
|
|
|
28
|
|
|
|
500
|
|
|
|
572
|
|
|
Depreciation
|
|
|
27,285
|
|
|
|
24,933
|
|
|
|
108,105
|
|
|
|
98,698
|
|
|
Amortization
|
|
|
19,121
|
|
|
|
19,319
|
|
|
|
78,710
|
|
|
|
86,458
|
|
|
EBITDA
|
|
$
|
75,707
|
|
|
$
|
72,029
|
|
|
$
|
270,984
|
|
|
$
|
295,818
|
|
|
Consulting and transition services fees (1)
|
|
|
-
|
|
|
|
1,500
|
|
|
|
29,187
|
|
|
|
3,000
|
|
|
Listing costs
|
|
|
3,304
|
|
|
|
-
|
|
|
|
4,060
|
|
|
|
-
|
|
|
Real estate acquisition-related costs
|
|
|
-
|
|
|
|
1,876
|
|
|
|
-
|
|
|
|
1,876
|
|
|
EBITDA from discontinued operations adjustments
|
|
|
5,196
|
|
|
|
6,261
|
|
|
|
46,346
|
|
|
|
42,357
|
|
|
EBITDA
|
|
$
|
84,207
|
|
|
$
|
81,666
|
|
|
$
|
350,577
|
|
|
$
|
343,051
|
|
|
Asset management fees (2)
|
|
|
-
|
|
|
|
7,875
|
|
|
|
5,083
|
|
|
|
32,000
|
|
|
General and administrative
|
|
|
8,210
|
|
|
|
5,501
|
|
|
|
32,679
|
|
|
|
21,613
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,176
|
)
|
|
|
634
|
|
|
|
(5,530
|
)
|
|
|
(173
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,320
|
|
|
|
473
|
|
|
|
5,872
|
|
|
|
1,398
|
|
|
Lease termination income - GAAP (3)
|
|
|
(2,485
|
)
|
|
|
-
|
|
|
|
(3,491
|
)
|
|
|
-
|
|
|
NOI - GAAP basis from discontinued operations adjustments
|
|
|
250
|
|
|
|
414
|
|
|
|
2,263
|
|
|
|
(3,865
|
)
|
|
Net Operating Income - GAAP Basis
|
|
$
|
90,326
|
|
|
$
|
96,563
|
|
|
$
|
387,453
|
|
|
$
|
394,024
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
Acquisitions (4)
|
|
|
(6,228
|
)
|
|
|
(737
|
)
|
|
|
(24,912
|
)
|
|
|
(737
|
)
|
|
Dispositions (5)
|
|
|
(4,336
|
)
|
|
|
(16,040
|
)
|
|
|
(38,993
|
)
|
|
|
(70,514
|
)
|
|
Same Store NOI - GAAP Basis
|
|
$
|
79,762
|
|
|
$
|
79,786
|
|
|
$
|
323,548
|
|
|
$
|
322,773
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Acquisitions include 333 Market Street in San Francisco, CA,
acquired in December 2012.
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Reconciliation of Net Income to Net Operating Income and Same Store
Net Operating Income:
|
|
|
|
|
|
|
|
|
|
Net income attributable to the common stockholders of Columbia
Property Trust, Inc.
|
|
$
|
12,927
|
|
|
$
|
11,853
|
|
|
$
|
15,720
|
|
|
$
|
48,039
|
|
|
Net interest expense
|
|
|
23,191
|
|
|
|
25,710
|
|
|
|
101,941
|
|
|
|
101,886
|
|
|
Interest income from development authority bonds
|
|
|
(6,671
|
)
|
|
|
(9,814
|
)
|
|
|
(33,992
|
)
|
|
|
(39,835
|
)
|
|
Income tax expense (benefit)
|
|
|
(146
|
)
|
|
|
28
|
|
|
|
500
|
|
|
|
572
|
|
|
Depreciation
|
|
|
27,285
|
|
|
|
24,933
|
|
|
|
108,105
|
|
|
|
98,698
|
|
|
Amortization
|
|
|
19,121
|
|
|
|
19,319
|
|
|
|
78,710
|
|
|
|
86,458
|
|
|
EBITDA
|
|
$
|
75,707
|
|
|
$
|
72,029
|
|
|
$
|
270,984
|
|
|
$
|
295,818
|
|
|
Consulting and transition services fees (1)
|
|
|
-
|
|
|
|
1,500
|
|
|
|
29,187
|
|
|
|
3,000
|
|
|
Listing costs
|
|
|
3,304
|
|
|
|
-
|
|
|
|
4,060
|
|
|
|
-
|
|
|
Real estate acquisition-related costs
|
|
|
-
|
|
|
|
1,876
|
|
|
|
-
|
|
|
|
1,876
|
|
|
EBITDA from discontinued operations adjustments
|
|
|
5,196
|
|
|
|
6,261
|
|
|
|
46,346
|
|
|
|
42,357
|
|
|
EBITDA
|
|
$
|
84,207
|
|
|
$
|
81,666
|
|
|
$
|
350,577
|
|
|
$
|
343,051
|
|
|
Asset management fees (2)
|
|
|
-
|
|
|
|
7,875
|
|
|
|
5,083
|
|
|
|
32,000
|
|
|
General and administrative
|
|
|
8,210
|
|
|
|
5,501
|
|
|
|
32,679
|
|
|
|
21,613
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,176
|
)
|
|
|
634
|
|
|
|
(5,530
|
)
|
|
|
(173
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,320
|
|
|
|
473
|
|
|
|
5,872
|
|
|
|
1,398
|
|
|
Lease termination income - Cash (3)
|
|
|
(2,056
|
)
|
|
|
-
|
|
|
|
(2,062
|
)
|
|
|
-
|
|
|
Amortization of deferred maintenance
|
|
|
58
|
|
|
|
28
|
|
|
|
207
|
|
|
|
112
|
|
|
Straight-line rent (2)
|
|
|
(3,605
|
)
|
|
|
(6,238
|
)
|
|
|
(22,793
|
)
|
|
|
(11,033
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
(118
|
)
|
|
|
-
|
|
|
|
(1,547
|
)
|
|
|
(1,422
|
)
|
|
Lease term expense - GAAP (4)
|
|
|
(70
|
)
|
|
|
-
|
|
|
|
(71
|
)
|
|
|
(1,106
|
)
|
|
NOI - Cash basis from discontinued operations
|
|
|
47
|
|
|
|
(5
|
)
|
|
|
739
|
|
|
|
(9,813
|
)
|
|
Net Operating Income - Cash Basis
|
|
$
|
86,817
|
|
|
$
|
89,934
|
|
|
$
|
363,154
|
|
|
$
|
374,627
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
Acquisitions (4)
|
|
|
(5,769
|
)
|
|
|
(682
|
)
|
|
|
(23,077
|
)
|
|
|
(682
|
)
|
|
Dispositions (5)
|
|
|
(3,639
|
)
|
|
|
(12,558
|
)
|
|
|
(31,454
|
)
|
|
|
(61,918
|
)
|
|
Same Store NOI - Cash Basis
|
|
$
|
77,409
|
|
|
$
|
76,694
|
|
|
$
|
308,623
|
|
|
$
|
312,027
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Acquisitions include 333 Market Street in San Francisco, CA,
acquired in December 2012.
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
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:
T 855-347-0042 (toll free)
F 816-701-7629
shareholders@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.