ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (the “Company”) (NYSE: CXP) reported
financial results today for the third quarter ended September 30, 2014.
Highlights:
-
For the third quarter of 2014, Normalized Funds from Operations (FFO)
per diluted share was $0.51, Adjusted Funds from Operations (AFFO) per
diluted share was $0.40, and Net Income Attributable to Common
Shareholders per diluted share was $0.20
-
Advanced the execution of our strategy by acquiring 650 California
Street in San Francisco for $310.2 million in the third quarter, and
by selling two non-core office properties totaling $106.5 million in
the third quarter and Lenox Park for $290.0 million in October
-
These and previous capital recycling transactions have improved our
concentration in key markets and central business districts, and
reduced our exposure to single-tenant buildings
-
Raised guidance for full year 2014 to Normalized FFO of $2.01 to $2.03
per diluted share
"Our goal for the past year has been to improve the overall quality of
the portfolio with investment in value creation opportunities in key
markets and the continued disposition of non-core assets. With $700
million of collective activity since the second quarter and nearly $1
billion for the year, we have reached our targets for 2014,” noted
Nelson Mills, President and Chief Executive Officer. “The impact of this
portfolio improvement has increased the concentration in multi-tenant
and CBD properties. Same-Store Cash NOI is picking up pace in the second
half of this year, as we experience a positive impact from the
establishment of regional operations."
"As we look forward to 2015, our top priority will continue to be
improving the portfolio with the pursuit of value-creating investment
opportunities that increase our presence in core markets or provide an
entry to targeted markets. While we've successfully completed most of
our planned portfolio repositioning steps, we anticipate additional
dispositions of selected single-tenant and suburban assets in non-core
markets to further our strategy. These investment activities, as well as
our focus on proactive leasing and management across the portfolio, will
benefit from the expertise of our regional investment and asset
management platforms. We’ve achieved substantial leasing and portfolio
performance to date, and we believe we are well positioned to address
manageable lease maturities over the next couple of years."
Acquisition Activity:
In September, we closed on the purchase of 650 California Street, a
478,392-square-foot, Class A office tower located in the Financial
District of San Francisco for $310.2 million. The property is currently
88% leased, with more than half the current tenancy rolling in three
years and in place-leases significantly below current market levels. The
property is expected to have first-year in-place net operating income
(NOI) of approximately $11 million.
Disposition Activity:
During the third quarter, we completed the sale of two separate office
buildings for total proceeds of $106.5 million:
-
Sale of the 251,000-square-foot Class-A, single-tenant office property
at 9 Technology Drive in Westborough, MA, for $47.0 million; and
-
Sale of the 248,000-square-foot Class-A, single-tenant office property
at 7031 Columbia Gateway Drive in Columbia, MD, to the existing tenant
for $59.5 million.
In October 2014, we completed the sale of the five-building,
1,040,000-square-foot Class-A, single-tenant office campus at Lenox Park
in Atlanta, GA, for $290 million. Lenox Park is 100% leased to AT&T
Corporation, and had annualized NOI of approximately $20 million.
Portfolio Highlights:
-
During the third quarter, we entered into leases for 123,000 rentable
square feet of office space with an average lease term of
approximately 9.8 years. Our third quarter leasing activity included
78,000 square feet of new leases and 45,000 square feet of renewal
leases.
-
Subsequent to quarter end, the company renewed Edison Electric
Institute for 77,000 square feet at Market Square in Washington D.C.
for 15 years. The prior expiration date was July 31, 2015.
-
As of September 30, 2014, our portfolio of 36 office properties was
93.5% leased and 92.9% occupied compared with 93.2% leased and 91.9%
occupied as of September 30, 2013.
-
For leases executed during the quarter, we experienced a 58.7%
increase in rental rates on a cash basis and a 71.6% increase in
rental rates on a GAAP basis, primarily due to positive leasing at 221
Main Street, one of our recently acquired San Francisco assets.
Financial Results:
Net Income Attributable to Common Stockholders was $25.0 million, or
$0.20 per diluted share, for the third quarter of 2014 compared with Net
Income Attributable to Common Stockholders of $4.8 million, or $0.04 per
diluted share, for the third quarter of 2013. Net Income Attributable to
Common Stockholders was $36.4 million, or $0.29 per diluted share, for
the first nine months of 2014 compared with $2.8 million, or $0.02 per
diluted share, for the first nine months of 2013.
Normalized FFO was $64.1 million, or $0.51 per diluted share, for the
third quarter of 2014 compared with $71.4 million, or $0.53 per diluted
share, in the prior-year period. Normalized FFO was $193.8 million, or
$1.55 per diluted share, for the first nine months of 2014 compared with
$210.9 million, or $1.55 per diluted share, in the prior-year period.
AFFO was $49.4 million, or $0.40 per diluted share, for the third
quarter of 2014 compared with $50.6 million, or $0.38 per diluted share,
in the prior-year period. AFFO was $146.7 million, or $1.17 per diluted
share, for the first nine months of 2014 compared with $143.8 million,
or $1.06 per diluted share, in the prior-year period.
NOI for the third quarter of 2014 decreased 9.7% on a GAAP basis and
decreased 6.8% on a cash basis compared with the prior-year period,
primarily due to the sale of 18 properties in November 2013. NOI for the
first nine months of 2014 decreased 10.9% on a GAAP basis and decreased
7.3% 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
third quarter of 2014 increased 2.2% compared with the prior-year period
on a GAAP basis and increased 5.4% on a cash basis. Same Store NOI for
the first nine months of 2014 was flat compared with the prior-year
period on a GAAP basis and increased 4.3% on a cash basis.
Distributions:
For the third 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 September 16, 2014 to stockholders of record as of September 2, 2014.
Guidance for 2014:
Based on acquisition and disposition activity to date, as well as
stronger Same Store Cash NOI growth and lower expenses, the Company has
increased both the upper and lower end of its guidance range for the
full year 2014. For the year ending December 31, 2014, the Company now
expects to report Normalized FFO in the range of $2.01 to $2.03 per
diluted share and Net Income Available to Common Stockholders in the
range of $0.35 to $0.37 per diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to Normalized FFO per diluted share is
provided as follows:
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Full Year
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2014 Range
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Low
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High
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Net income available to common stockholders
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$
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0.35
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$
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0.37
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Real estate depreciation & amortization
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$
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1.57
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$
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1.57
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Other(1)
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$
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0.09
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$
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0.09
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Normalized FFO
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$
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2.01
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$
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2.03
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(1)
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Includes impairment charges of $0.12 per share in the first and
second quarter of 2014 and acquisition fees of $0.11 per share in
the second and third quarter, offset by gains on sales of real
estate assets of $0.14 per share.
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The Company has updated the following assumptions for its portfolio to
reflect recent acquisition, disposition and leasing activity. 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 3.0% to 4.0%
-
GAAP straight-lined rental income of $8 million to $9 million
-
G&A of $32 million to $33 million, excluding any unusual or one-time
items
-
No additional dispositions (as of October 30, 2014, $426 million has
been completed)
-
No additional acquisitions (as of October 30, 2014, $539 million has
been completed)
-
Weighted average diluted share count of 125.0 million
The Company intends to provide detailed guidance for 2015, along with
accompanying assumptions, when it reports results for the fourth quarter
of 2014.
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, October 31, 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) 231-2902. A replay of the conference
call will be available through November 7, 2014, by dialing
(800) 633-8284 or (402) 977-9140 and entering the confirmation number,
21734135.
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 September 30, 2014,
Columbia Property Trust's portfolio consists of 36 office properties and
one hotel, which include 57 operational buildings, comprising
approximately 16.8 million square feet located in 12 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 - FFO, as defined by the National
Association of Real Estate Investment Trusts (“NAREIT”), represents net
income (computed in accordance with GAAP), plus depreciation of real
estate assets and amortization of lease-related costs, excluding gains
(losses) on sales of real estate and impairment losses on real estate
assets. The Company computes 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. We consider FFO an appropriate supplemental
performance measure given its wide use by and relevance to investors and
analysts. FFO, reflecting the assumption that real estate asset values
rise or fall with market conditions, 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.
Normalized FFO - We calculate Normalized FFO by starting
with FFO, as defined by NAREIT, and adjusting for (i) real estate
acquisition-related costs, (ii) listing costs, and (iii) 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)
straight-line rental income - lease terminations, (iv) gain (loss) on
interest rate swaps, (v) non-incremental capital expenditures, and
adding back (vi) stock based compensation expense and (vii) 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,
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 adjusted for (i) portfolio general and administrative
expense, (ii) interest rate swap valuation adjustments, (iii) interest
expense associated with interest rates swaps, (iv) cash lease
termination income, (v) amortization of deferred maintenance, (vi)
straight-line rent, (vii) straight-line rent - lease terminations,
(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 adjusted for (i) portfolio general and administrative
expense, (ii) interest rate swap valuation adjustments, (iii) interest
expense associated with interest rates swaps, (iv) GAAP lease
termination income, (v) 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 BALANCE SHEETS
(in thousands, except share and per-share amounts)
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(Unaudited)
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September 30,
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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789,967
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$
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706,938
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Buildings and improvements, less accumulated depreciation of
$630,114 and $604,497, as of September 30, 2014 and December 31,
2013, respectively
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3,046,359
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2,976,287
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Intangible lease assets, less accumulated amortization of $302,713
and $298,975, as of September 30, 2014 and December 31, 2013,
respectively
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259,146
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281,220
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Construction in progress
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16,479
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7,949
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Real estate assets held for sale, less accumulated depreciation and
amortization of $46,637, as of September 30, 2014
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211,131
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—
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Total real estate assets
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4,323,082
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3,972,394
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Cash and cash equivalents
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46,433
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99,855
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Tenant receivables, net of allowance for doubtful accounts of $2 and
$52 as of September 30, 2014 and December 31, 2013, respectively
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8,200
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7,414
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Straight-line rent receivable
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113,645
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|
|
113,592
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Prepaid expenses and other assets
|
|
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28,320
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32,423
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Deferred financing costs, less accumulated amortization of $14,321
and $11,938, as of September 30, 2014 and December 31, 2013,
respectively
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9,334
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|
10,388
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Intangible lease origination costs, less accumulated amortization of
$216,091 and $216,598, as of September 30, 2014 and December 31,
2013, respectively
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113,447
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148,889
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Deferred lease costs, less accumulated amortization of $34,238 and
$27,375, as of September 30, 2014 and December 31, 2013,
respectively
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97,273
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87,527
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Investment in development authority bonds
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120,000
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120,000
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Other assets held for sale, less accumulated amortization of
$13,631, as of September 30, 2014
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23,853
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—
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Total assets
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$
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4,883,587
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$
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4,592,482
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Liabilities:
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Line of credit and notes payable
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$
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1,590,824
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$
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1,240,249
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Bonds payable, net of discount of $881 and $1,070, as of September
30, 2014 and December 31, 2013, respectively
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249,119
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248,930
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Accounts payable, accrued expenses, and accrued capital expenditures
|
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100,911
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|
|
|
99,678
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Deferred income
|
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26,478
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|
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|
21,938
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Intangible lease liabilities, less accumulated amortization of
$80,043 and $76,500, as of September 30, 2014 and December 31,
2013, respectively
|
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79,198
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|
|
|
73,864
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Obligations under capital leases
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120,000
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|
120,000
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Liabilities held for sale, less accumulated amortization of $2,432,
as of September 30, 2014
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3,037
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—
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Total liabilities
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2,169,567
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1,804,659
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Commitments and Contingencies (Note 6)
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—
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—
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Equity:
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Common stock, $0.01 par value, 225,000,000 and 900,000,000 shares
authorized, 124,969,182 and 124,830,122 shares issued and
outstanding as of September 30, 2014 and December 31, 2013,
respectively
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1,249
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|
1,248
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Additional paid-in capital
|
|
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4,601,363
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|
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4,600,166
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Cumulative distributions in excess of earnings
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|
|
(1,886,346
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)
|
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|
(1,810,284
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)
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Other comprehensive loss
|
|
|
(2,246
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)
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|
(3,307
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)
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Total equity
|
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2,714,020
|
|
|
|
2,787,823
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Total liabilities and equity
|
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$
|
4,883,587
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$
|
4,592,482
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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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(Unaudited)
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Three months ended
September 30,
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Nine months ended
September 30,
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2014
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2013
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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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$
|
104,938
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$
|
101,859
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$
|
309,326
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$
|
306,268
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Tenant reimbursements
|
|
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23,861
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|
|
|
23,073
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|
70,528
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|
|
|
66,583
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Hotel income
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6,732
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|
|
6,788
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|
|
|
17,298
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|
|
|
18,304
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Other property income
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1,450
|
|
|
|
782
|
|
|
|
5,754
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|
|
|
2,036
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|
|
|
|
|
136,981
|
|
|
|
132,502
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|
|
|
402,906
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|
|
|
393,191
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Expenses:
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Property operating costs
|
|
|
41,144
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|
|
|
39,783
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|
|
|
118,956
|
|
|
|
114,436
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|
|
Hotel operating costs
|
|
|
5,039
|
|
|
|
4,693
|
|
|
|
13,869
|
|
|
|
13,774
|
|
|
Asset and property management fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related-party
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,693
|
|
|
Other
|
|
|
682
|
|
|
|
239
|
|
|
|
1,646
|
|
|
|
1,382
|
|
|
Depreciation
|
|
|
29,980
|
|
|
|
27,155
|
|
|
|
87,453
|
|
|
|
80,820
|
|
|
Amortization
|
|
|
19,476
|
|
|
|
19,705
|
|
|
|
58,218
|
|
|
|
59,589
|
|
|
Impairment loss on real estate assets
|
|
|
—
|
|
|
|
—
|
|
|
|
14,982
|
|
|
|
—
|
|
|
General and administrative
|
|
|
7,836
|
|
|
|
7,880
|
|
|
|
23,194
|
|
|
|
53,656
|
|
|
Listing costs
|
|
|
—
|
|
|
|
756
|
|
|
|
—
|
|
|
|
756
|
|
|
Acquisition expenses
|
|
|
7,996
|
|
|
|
—
|
|
|
|
14,098
|
|
|
|
—
|
|
|
|
|
|
112,153
|
|
|
|
100,211
|
|
|
|
332,416
|
|
|
|
329,106
|
|
|
Real estate operating income
|
|
|
24,828
|
|
|
|
32,291
|
|
|
|
70,490
|
|
|
|
64,085
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(19,273
|
)
|
|
|
(26,567
|
)
|
|
|
(56,043
|
)
|
|
|
(78,750
|
)
|
|
Interest and other income
|
|
|
1,803
|
|
|
|
9,125
|
|
|
|
5,415
|
|
|
|
27,349
|
|
|
Loss on interest rate swaps
|
|
|
(28
|
)
|
|
|
(419
|
)
|
|
|
(363
|
)
|
|
|
(198
|
)
|
|
|
|
|
(17,498
|
)
|
|
|
(17,861
|
)
|
|
|
(50,991
|
)
|
|
|
(51,599
|
)
|
|
Income before income tax expense and gains on sale of real estate
assets
|
|
|
7,330
|
|
|
|
14,430
|
|
|
|
19,499
|
|
|
|
12,486
|
|
|
Income tax expense
|
|
|
(409
|
)
|
|
|
(424
|
)
|
|
|
(416
|
)
|
|
|
(646
|
)
|
|
Income from continuing operations before gains of sale of real
estate assets
|
|
|
6,921
|
|
|
|
14,006
|
|
|
|
19,083
|
|
|
|
11,840
|
|
|
Gain on sale of real estate assets
|
|
|
18,607
|
|
|
|
—
|
|
|
|
18,607
|
|
|
|
—
|
|
|
Income from continuing operations
|
|
|
25,528
|
|
|
|
14,006
|
|
|
|
37,690
|
|
|
|
11,840
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss from discontinued operations
|
|
|
(540
|
)
|
|
|
(9,206
|
)
|
|
|
(303
|
)
|
|
|
(19,061
|
)
|
|
Gain (loss) on disposition of discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
(978
|
)
|
|
|
10,014
|
|
|
Loss from discontinued operations
|
|
|
(540
|
)
|
|
|
(9,206
|
)
|
|
|
(1,281
|
)
|
|
|
(9,047
|
)
|
|
Net income
|
|
|
$
|
24,988
|
|
|
|
$
|
4,800
|
|
|
|
$
|
36,409
|
|
|
|
$
|
2,793
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.20
|
|
|
|
$
|
0.10
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.09
|
|
|
Loss from discontinued operations
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.07
|
)
|
|
Net income
|
|
|
$
|
0.20
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.29
|
|
|
|
$
|
0.02
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
124,863
|
|
|
|
134,668
|
|
|
|
124,858
|
|
|
|
135,661
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.20
|
|
|
|
$
|
0.10
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.09
|
|
|
Loss from discontinued operations
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.07
|
)
|
|
Net income
|
|
|
$
|
0.20
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.29
|
|
|
|
$
|
0.02
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
124,938
|
|
|
|
134,668
|
|
|
|
124,921
|
|
|
|
135,661
|
|
|
Dividends per share
|
|
|
$
|
0.300
|
|
|
|
$
|
0.380
|
|
|
|
$
|
0.900
|
|
|
|
$
|
1.140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Reconciliation of Net Income to Funds From Operations, Normalized
Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
24,988
|
|
|
|
$
|
4,800
|
|
|
|
$
|
36,409
|
|
|
|
$
|
2,793
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate assets(1)
|
|
|
29,980
|
|
|
|
30,911
|
|
|
|
87,453
|
|
|
|
92,146
|
|
|
Amortization of lease-related costs(1)
|
|
|
19,476
|
|
|
|
22,027
|
|
|
|
58,218
|
|
|
|
66,301
|
|
|
Impairment loss on real estate assets(1)
|
|
|
—
|
|
|
|
12,870
|
|
|
|
14,982
|
|
|
|
29,737
|
|
|
Gain on sale of real estate assets - continuing operations
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
Loss (gain) on sale of real estate assets - discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
978
|
|
|
|
(10,014
|
)
|
|
Funds From Operations adjustments
|
|
|
30,849
|
|
|
|
65,808
|
|
|
|
143,024
|
|
|
|
178,170
|
|
|
Funds From Operations
|
|
|
55,837
|
|
|
|
70,608
|
|
|
|
179,433
|
|
|
|
180,963
|
|
|
Real estate acquisition related costs
|
|
|
7,996
|
|
|
|
—
|
|
|
|
14,098
|
|
|
|
—
|
|
|
Shelf registration costs
|
|
|
269
|
|
|
|
—
|
|
|
|
269
|
|
|
|
—
|
|
|
Listing costs
|
|
|
—
|
|
|
|
756
|
|
|
|
—
|
|
|
|
756
|
|
|
Consulting and transition services fees(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29,187
|
|
|
Normalized FFO
|
|
|
64,102
|
|
|
|
71,364
|
|
|
|
193,800
|
|
|
|
210,906
|
|
|
Other income (expenses) included in net income, which do not
correlate with our operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities)(3)
|
|
|
(931
|
)
|
|
|
(411
|
)
|
|
|
(2,131
|
)
|
|
|
(1,584
|
)
|
|
Straight-line rental income(1)
|
|
|
(2,195
|
)
|
|
|
(5,638
|
)
|
|
|
(6,074
|
)
|
|
|
(18,188
|
)
|
|
Straight-line lease termination income
|
|
|
(1,058
|
)
|
|
|
(429
|
)
|
|
|
1,966
|
|
|
|
(1,000
|
)
|
|
Gain on interest rate swaps
|
|
|
(1,300
|
)
|
|
|
(892
|
)
|
|
|
(3,624
|
)
|
|
|
(4,353
|
)
|
|
Stock-based compensation expense in general and administrative(4)
|
|
|
488
|
|
|
|
—
|
|
|
|
1,511
|
|
|
|
—
|
|
|
Non-cash interest expense(5)
|
|
|
785
|
|
|
|
1,227
|
|
|
|
2,297
|
|
|
|
2,947
|
|
|
Total other non-cash adjustments
|
|
|
(4,211
|
)
|
|
|
(6,143
|
)
|
|
|
(6,055
|
)
|
|
|
(22,178
|
)
|
|
Non-incremental capital expenditures(6)
|
|
|
(10,491
|
)
|
|
|
(14,595
|
)
|
|
|
(41,038
|
)
|
|
|
(44,887
|
)
|
|
Adjusted FFO
|
|
|
$
|
49,400
|
|
|
|
$
|
50,626
|
|
|
|
$
|
146,707
|
|
|
|
$
|
143,841
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.45
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.44
|
|
|
|
$
|
1.33
|
|
|
Normalized FFO per share
|
|
|
$
|
0.51
|
|
|
|
$
|
0.53
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.55
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.40
|
|
|
|
$
|
0.38
|
|
|
|
$
|
1.17
|
|
|
|
$
|
1.06
|
|
|
Weighted-average shares outstanding - basic
|
|
|
124,863
|
|
|
|
134,668
|
|
|
|
124,858
|
|
|
|
135,661
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.45
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.44
|
|
|
|
$
|
1.33
|
|
|
Normalized FFO per share
|
|
|
$
|
0.51
|
|
|
|
$
|
0.53
|
|
|
|
$
|
1.55
|
|
|
|
$
|
1.55
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.40
|
|
|
|
$
|
0.38
|
|
|
|
$
|
1.17
|
|
|
|
$
|
1.06
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
124,938
|
|
|
|
134,668
|
|
|
|
124,921
|
|
|
|
135,661
|
|
|
(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 - CASH
BASIS
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Reconciliation of Net Income to Net Operating Income and Same
Store Net Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
24,988
|
|
|
|
$
|
4,800
|
|
|
|
$
|
36,409
|
|
|
|
$
|
2,793
|
|
|
Net interest expense
|
|
|
19,273
|
|
|
|
26,567
|
|
|
|
56,043
|
|
|
|
78,750
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(9,107
|
)
|
|
|
(5,400
|
)
|
|
|
(27,321
|
)
|
|
Income tax expense
|
|
|
409
|
|
|
|
424
|
|
|
|
416
|
|
|
|
646
|
|
|
Depreciation
|
|
|
29,980
|
|
|
|
27,155
|
|
|
|
87,453
|
|
|
|
80,820
|
|
|
Amortization
|
|
|
19,476
|
|
|
|
19,705
|
|
|
|
58,218
|
|
|
|
59,589
|
|
|
EBITDA
|
|
|
$
|
92,326
|
|
|
|
$
|
69,544
|
|
|
|
$
|
233,139
|
|
|
|
$
|
195,277
|
|
|
Gain on sale of real estate assets
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
Real estate acquisition costs
|
|
|
7,996
|
|
|
|
—
|
|
|
|
14,098
|
|
|
|
—
|
|
|
Shelf registration costs
|
|
|
269
|
|
|
|
—
|
|
|
|
269
|
|
|
|
—
|
|
|
Listing costs
|
|
|
—
|
|
|
|
756
|
|
|
|
—
|
|
|
|
756
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
—
|
|
|
|
14,982
|
|
|
|
—
|
|
|
Consulting and transition services fees(1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29,187
|
|
|
Discontinued operations adjustment
|
|
|
—
|
|
|
|
20,079
|
|
|
|
978
|
|
|
|
41,150
|
|
|
Adjusted EBITDA
|
|
|
$
|
81,984
|
|
|
|
$
|
90,379
|
|
|
|
$
|
244,859
|
|
|
|
$
|
266,370
|
|
|
Asset management fees(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,083
|
|
|
General and administrative
|
|
|
7,836
|
|
|
|
7,880
|
|
|
|
23,194
|
|
|
|
24,469
|
|
|
Shelf registration costs in general and administrative
|
|
|
(269
|
)
|
|
|
—
|
|
|
|
(269
|
)
|
|
|
—
|
|
|
Straight-line rent receivable write offs in general and
administrative(3)
|
|
|
—
|
|
|
|
—
|
|
|
|
(114
|
)
|
|
|
—
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,300
|
)
|
|
|
(892
|
)
|
|
|
(3,624
|
)
|
|
|
(4,353
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,328
|
|
|
|
1,311
|
|
|
|
3,987
|
|
|
|
4,551
|
|
|
Lease termination income - cash(4)
|
|
|
181
|
|
|
|
(6
|
)
|
|
|
(6,314
|
)
|
|
|
(6
|
)
|
|
Amortization of deferred maintenance
|
|
|
27
|
|
|
|
54
|
|
|
|
321
|
|
|
|
149
|
|
|
Straight-line rental income(1)
|
|
|
(2,195
|
)
|
|
|
(5,638
|
)
|
|
|
(6,074
|
)
|
|
|
(18,188
|
)
|
|
Straight-line lease termination income
|
|
|
(1,058
|
)
|
|
|
(429
|
)
|
|
|
1,966
|
|
|
|
(1,000
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
(957
|
)
|
|
|
(392
|
)
|
|
|
(2,451
|
)
|
|
|
(1,428
|
)
|
|
NOI - Cash basis from discontinued operations adjustments
|
|
|
548
|
|
|
|
143
|
|
|
|
676
|
|
|
|
694
|
|
|
Net Operating Income - Cash Basis
|
|
|
$
|
86,125
|
|
|
|
$
|
92,410
|
|
|
|
$
|
256,157
|
|
|
|
$
|
276,341
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(6)
|
|
|
(1,807
|
)
|
|
|
—
|
|
|
|
(2,750
|
)
|
|
|
—
|
|
|
Dispositions(7)
|
|
|
(477
|
)
|
|
|
(12,876
|
)
|
|
|
(4,823
|
)
|
|
|
(37,974
|
)
|
|
Same Store NOI - Cash Basis
|
|
|
$
|
83,841
|
|
|
|
$
|
79,534
|
|
|
|
$
|
248,584
|
|
|
|
$
|
238,367
|
|
|
(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 within general and administrative expense.
|
|
(4)
|
Excludes adjustments for straight-line rent related to lease
terminations.
|
|
(5)
|
Includes the following acquisition: 650 California Street and 221
Main Street.
|
|
(6)
|
Dispositions include: 9 Technology Drive, 7031 Columbia Gateway
Drive, 200 South Orange Building, 160 Park Avenue, 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 - GAAP
BASIS
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Reconciliation of Net Income to Net Operating Income and Same
Store Net Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
24,988
|
|
|
|
$
|
4,800
|
|
|
|
$
|
36,409
|
|
|
|
$
|
2,793
|
|
|
Net interest expense
|
|
|
19,273
|
|
|
|
26,567
|
|
|
|
56,043
|
|
|
|
78,750
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(9,107
|
)
|
|
|
(5,400
|
)
|
|
|
(27,321
|
)
|
|
Income tax benefit
|
|
|
409
|
|
|
|
424
|
|
|
|
416
|
|
|
|
646
|
|
|
Depreciation
|
|
|
29,980
|
|
|
|
27,155
|
|
|
|
87,453
|
|
|
|
80,820
|
|
|
Amortization
|
|
|
19,476
|
|
|
|
19,705
|
|
|
|
58,218
|
|
|
|
59,589
|
|
|
EBITDA
|
|
|
$
|
92,326
|
|
|
|
$
|
69,544
|
|
|
|
$
|
233,139
|
|
|
|
$
|
195,277
|
|
|
Gain on sale of real estate assets
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
|
(18,607
|
)
|
|
|
—
|
|
|
Real estate acquisition costs
|
|
|
7,996
|
|
|
|
—
|
|
|
|
14,098
|
|
|
|
—
|
|
|
Shelf registration costs
|
|
|
269
|
|
|
|
—
|
|
|
|
269
|
|
|
|
—
|
|
|
Listing costs
|
|
|
—
|
|
|
|
756
|
|
|
|
—
|
|
|
|
756
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
—
|
|
|
|
14,982
|
|
|
|
—
|
|
|
Consulting and transition services fees(1)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29,187
|
|
|
Discontinued operations adjustment
|
|
|
—
|
|
|
|
20,079
|
|
|
|
978
|
|
|
|
41,150
|
|
|
Adjusted EBITDA
|
|
|
$
|
81,984
|
|
|
|
$
|
90,379
|
|
|
|
$
|
244,859
|
|
|
|
$
|
266,370
|
|
|
Asset management fees(2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,083
|
|
|
General and administrative
|
|
|
7,836
|
|
|
|
7,880
|
|
|
|
23,194
|
|
|
|
24,469
|
|
|
Shelf registration costs in general and administrative
|
|
|
(269
|
)
|
|
|
—
|
|
|
|
(269
|
)
|
|
|
—
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,300
|
)
|
|
|
(892
|
)
|
|
|
(3,624
|
)
|
|
|
(4,353
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,328
|
|
|
|
1,311
|
|
|
|
3,987
|
|
|
|
4,551
|
|
|
Lease termination income - GAAP(3)
|
|
|
(877
|
)
|
|
|
(435
|
)
|
|
|
(4,462
|
)
|
|
|
(1,006
|
)
|
|
NOI - GAAP basis from discontinued operations adjustments
|
|
|
575
|
|
|
|
577
|
|
|
|
996
|
|
|
|
2,013
|
|
|
Net Operating Income - GAAP Basis
|
|
|
$
|
89,277
|
|
|
|
$
|
98,820
|
|
|
|
$
|
264,681
|
|
|
|
$
|
297,127
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(4)
|
|
|
(3,137
|
)
|
|
|
—
|
|
|
|
(5,006
|
)
|
|
|
—
|
|
|
Dispositions(5)
|
|
|
(553
|
)
|
|
|
(15,072
|
)
|
|
|
(5,327
|
)
|
|
|
(45,703
|
)
|
|
Same Store NOI - GAAP Basis
|
|
|
$
|
85,587
|
|
|
|
$
|
83,748
|
|
|
|
$
|
254,348
|
|
|
|
$
|
251,424
|
|
|
(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)
|
Includes the following acquisition: 650 California Street and 221
Main Street.
|
|
(5)
|
Dispositions include: 9 Technology Drive, 7031 Columbia Gateway
Drive, 200 South Orange Building, 160 Park Avenue, 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.
Krister Romeyn, 404-465-2231
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.