ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (the “Company”) (NYSE: CXP) reported
financial results today for the first quarter ended March 31, 2015.
Highlights:
-
For the first quarter of 2015, Normalized Funds from Operations (FFO)
per diluted share was $0.52, Adjusted Funds from Operations (AFFO) per
diluted share was $0.37, and Net Income Attributable to Common
Stockholders per diluted share was $0.04
-
Improved our concentration in key markets and central business
districts by acquiring 315 Park Avenue South in New York for $372
million and 116 Huntington Avenue in Boston's Back Bay for $152 million
-
Issued $350 million of ten-year, unsecured 4.150% senior notes to
extend and improve our debt maturities
-
Completed 230,000 square feet of leasing during the first quarter,
including over 100,000 square feet at 221 Main Street in San Francisco
"We began 2015 with a quality portfolio concentrated in high-barrier
markets with substantial embedded rent growth. Our leasing execution
during the first quarter and the growing demand in our key markets are
continuing to further our goals of growing NAV and cash flows," noted
Nelson Mills, President and CEO of Columbia Property Trust. "We are
right where we expected to be in terms of our acquisition and
disposition strategies and will remain disciplined in pursuing
additional opportunities. Our team continues to lock in value through
new leases and renewals across the portfolio as well as through
continuing improvements to our properties and operations. We will look
to continue that momentum throughout the year."
Acquisition Activity:
On January 7, 2015, we acquired a two-property portfolio consisting of
315 Park Avenue South, a 341,000-square-foot, historic, Class A office
building in New York's Gramercy Park sub-market for $372.0 million, and
1881 Campus Commons Drive, a 245,000-square-foot, Class A office
building in Washington D.C.'s Reston, Virginia sub-market, for $64.0
million.
On January 8, 2015, we acquired 116 Huntington Avenue, a
274,000-square-foot, Class A office building in Boston's Back Bay
district for $152.0 million.
Financing Activity:
We issued $350 million of ten-year, unsecured 4.150% senior notes in
March 2015 at 99.859% of face value. The proceeds from these notes were
used to repay the $300 million Bridge Loan, which financed a portion of
the acquisitions completed in January 2015, and for general corporate
purposes. The Bridge Loan was originally due in July 2015.
Portfolio Highlights:
-
During the first quarter, we entered into leases for 230,000 rentable
square feet of office space with an average lease term of
approximately 9.4 years. Our first quarter leasing activity included
190,000 square feet of new leases and 40,000 square feet of renewal
leases.
-
As of March 31, 2015, our portfolio of 38 office properties was 92.3%
leased and 91.2% occupied compared with 92.4% leased and 91.5%
occupied as of March 31, 2014.
-
For leases executed during the quarter, we experienced a 61.3%
increase in rental rates on a cash basis and an 82.7% increase in
rental rates on a GAAP basis.
Financial Results:
Net Income Attributable to Common Stockholders was $5.6 million, or
$0.04 per diluted share, for the first quarter of 2015, compared with
Net Income Attributable to Common Stockholders of $3.4 million, or $0.03
per diluted share, for the first quarter of 2014.
Normalized FFO was $65.3 million, or $0.52 per diluted share, for the
first quarter of 2015, compared with $63.1 million, or $0.51 per diluted
share, in the prior-year period.
AFFO was $46.2 million, or $0.37 per diluted share, for the first
quarter of 2015, compared with $41.3 million, or $0.33 per diluted
share, in the prior-year period.
NOI for the first quarter of 2015 increased 6.9% on a GAAP basis and
increased 2.1% on a cash basis compared with the prior-year period,
primarily due to property acquisitions during 2014 and the first quarter
of 2015. Same Store NOI for the first quarter of 2015 decreased 1.0%
compared with the prior-year period on both a cash and GAAP basis.
Distributions:
For the first quarter of 2015, we paid a dividend of $0.30 per share, or
an annualized rate of $1.20 per share. The dividend was paid on March
17, 2015 to stockholders of record as of March 2, 2015.
Guidance for 2015:
For the year ending December 31, 2015, the Company expects to report
Normalized FFO in a range of $1.85 to $1.91 per diluted share, and Net
Income Available to Common Stockholders in the range of $0.17 to $0.23
per diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO per
diluted share is provided as follows:
|
|
|
|
|
Full Year
|
|
|
|
|
|
2015 Range
|
|
|
|
|
|
Low
|
|
|
High
|
|
Net income available to common stockholders
|
|
|
|
$
|
0.17
|
|
|
$
|
0.23
|
|
Add: Real estate depreciation & amortization
|
|
|
|
1.66
|
|
|
1.66
|
|
FFO
|
|
|
|
1.83
|
|
|
1.89
|
|
Add: Acquisition costs
|
|
|
|
0.02
|
|
|
0.02
|
|
Normalized FFO
|
|
|
|
$
|
1.85
|
|
|
$
|
1.91
|
|
|
Our guidance for 2015 is based on the following assumptions for our
portfolio. This guidance excludes the impact of the GAAP treatment of
gains or losses on interest rate swaps and assumes no additional
acquisitions during the year.
-
Leased percentage at year end 2015 of 91.0% to 93.0%
-
GAAP straight-line rental income of $14 million to $17 million
-
G&A of $31 million to $33 million, excluding any unusual or one-time
items
-
Dispositions of $500 million to $600 million
-
Weighted average diluted share count of 125.0 million
Jim Fleming, Executive Vice President and Chief Financial Officer,
added, "Based on the significant interest in the non-core assets we
began marketing earlier this year, we are now modeling most of those
dispositions to close in the third quarter. With the upsizing of our
bond offering in March and the dispositions we are projecting for the
year, we continue to expect that the first half of the year will account
for more than half of our full-year Normalized FFO."
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 enhancement 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 a GAAP basis due to the timing of dispositions,
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:
We will host a conference call and live audio webcast, both open for the
general public to hear, on Friday, May 1, 2015, at 10:00 a.m. ET to
discuss financial results, business highlights, and provide a Company
update. The number to call for this interactive teleconference is
(212) 231-2929. A replay of the conference call will be available
through May 8, 2015, by dialing (800) 633-8284 or (402) 977-9140 and
entering the confirmation number, 21765935.
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 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 March 31, 2015, Columbia
Property Trust's portfolio consisted of 38 office properties and one
hotel, which include 55 operational buildings, comprising approximately
16.6 million square feet located in 15 U.S. metropolitan statistical
areas (MSAs). For information about Columbia Property Trust, visit www.ColumbiaPropertyTrust.com.
Non-GAAP Supplemental Financial Measure Definitions:
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) gain (loss)
on interest rate swaps, (iv) recurring capital expenditures, and adding
back (v) stock based compensation expense and (vi) non-cash interest
expense. Because AFFO adjusts for income and expenses that we believe
are not reflective of the sustainability of our ongoing operating
performance, we believe AFFO provides useful supplemental information.
AFFO is a non-GAAP financial measure and should not be viewed as an
alternative measurement of our operating performance to net income, as
an alternative to net cash flows from operating activities or as a
measure of our liquidity.
EBITDA - EBITDA is defined as net income before interest,
taxes, depreciation and amortization. We believe EBITDA is a reasonable
measure of our liquidity. EBITDA is a non-GAAP financial measure and
should not be viewed as an alternative measurement of cash flows from
operating activities or other GAAP basis liquidity measures. Other REITs
may calculate EBITDA differently and our calculation should not be
compared to that of other REITs.
Adjusted EBITDA - Adjusted EBITDA is defined as net income
before interest, taxes, depreciation and amortization and incrementally
removing any impairment losses, gains or losses from sales of property,
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) GAAP lease
termination income, (v) noncash property operations, (vi) straight-line
rental income, (vii) net effect of above/(below) market amortization,
and (viii) 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, 2014 and subsequently filed periodic reports 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.
Management's Quotes:
Quotes attributed to management within this document reflect
management's beliefs at the time of release.
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and per-share amounts)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
March 31,
2015
|
|
|
December 31,
2014
|
|
Assets:
|
|
|
|
|
|
|
|
|
Real estate assets, at cost:
|
|
|
|
|
|
|
|
|
Land
|
|
|
|
$
|
912,035
|
|
|
|
$
|
785,101
|
|
|
Buildings and improvements, less accumulated depreciation of
$693,780 and $660,098, as of March 31, 2015 and December 31, 2014,
respectively
|
|
|
|
3,389,402
|
|
|
|
3,026,431
|
|
Intangible lease assets, less accumulated amortization of $316,720
and $313,822, as of
March 31, 2015 and December 31, 2014,
respectively
|
|
|
|
291,969
|
|
|
|
247,068
|
|
|
Construction in progress
|
|
|
|
27,201
|
|
|
|
17,962
|
|
|
Total real estate assets
|
|
|
|
4,620,607
|
|
|
|
4,076,562
|
|
|
Cash and cash equivalents
|
|
|
|
31,236
|
|
|
|
149,790
|
|
|
Tenant receivables, net of allowance for doubtful accounts of $3 as
of December 31, 2014
|
|
|
|
10,859
|
|
|
|
6,945
|
|
|
Straight-line rent receivable
|
|
|
|
121,098
|
|
|
|
116,489
|
|
|
Prepaid expenses and other assets
|
|
|
|
29,728
|
|
|
|
52,143
|
|
|
Deferred financing costs, less accumulated amortization of $15,909
and $15,205, as of March 31, 2015 and December 31, 2014,
respectively
|
|
|
|
10,653
|
|
|
|
8,426
|
|
|
Intangible lease origination costs, less accumulated amortization of
$220,596 and $219,626, as of March 31, 2015 and December 31, 2014,
respectively
|
|
|
|
105,759
|
|
|
|
105,528
|
|
|
Deferred lease costs, less accumulated amortization of $39,338 and
$36,589, as of March 31, 2015 and December 31, 2014, respectively
|
|
|
|
107,668
|
|
|
|
102,995
|
|
|
Investment in development authority bonds
|
|
|
|
120,000
|
|
|
|
120,000
|
|
|
Total assets
|
|
|
|
$
|
5,157,608
|
|
|
|
$
|
4,738,878
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Line of credit and notes payable
|
|
|
|
$
|
1,535,015
|
|
|
|
$
|
1,430,884
|
|
|
Bonds payable, net of discounts of $1,246 and $818, as of March
31, 2015 and December 31, 2014, respectively
|
|
|
|
598,754
|
|
|
|
249,182
|
|
|
Accounts payable, accrued expenses, and accrued capital expenditures
|
|
|
|
97,973
|
|
|
|
106,276
|
|
|
Deferred income
|
|
|
|
25,688
|
|
|
|
24,753
|
|
|
Intangible lease liabilities, less accumulated amortization of
$86,922 and $84,935, as of March 31, 2015 and December 31, 2014,
respectively
|
|
|
|
78,072
|
|
|
|
74,305
|
|
|
Obligations under capital leases
|
|
|
|
120,000
|
|
|
|
120,000
|
|
|
Total liabilities
|
|
|
|
2,455,502
|
|
|
|
2,005,400
|
|
|
Commitments and Contingencies (Note 6)
|
|
|
|
—
|
|
|
|
—
|
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 225,000,000 shares authorized,
125,076,869 and 124,973,304 shares issued and outstanding as of
March 31, 2015 and December 31, 2014, respectively
|
|
|
|
1,250
|
|
|
|
1,249
|
|
|
Additional paid-in capital
|
|
|
|
4,602,201
|
|
|
|
4,601,808
|
|
|
Cumulative distributions in excess of earnings
|
|
|
|
(1,899,536
|
)
|
|
|
(1,867,611
|
)
|
|
Cumulative other comprehensive loss
|
|
|
|
(1,809
|
)
|
|
|
(1,968
|
)
|
|
Total equity
|
|
|
|
2,702,106
|
|
|
|
2,733,478
|
|
|
Total liabilities and equity
|
|
|
|
$
|
5,157,608
|
|
|
|
$
|
4,738,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per-share
amounts)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
|
$
|
112,809
|
|
|
|
$
|
100,567
|
|
|
Tenant reimbursements
|
|
|
|
28,249
|
|
|
|
23,733
|
|
|
Hotel income
|
|
|
|
4,993
|
|
|
|
4,061
|
|
|
Other property income
|
|
|
|
1,492
|
|
|
|
807
|
|
|
|
|
|
|
147,543
|
|
|
|
129,168
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Property operating costs
|
|
|
|
49,754
|
|
|
|
38,980
|
|
|
Hotel operating costs
|
|
|
|
4,591
|
|
|
|
4,141
|
|
|
Asset and property management fees
|
|
|
|
397
|
|
|
|
289
|
|
|
Depreciation
|
|
|
|
34,007
|
|
|
|
27,304
|
|
|
Amortization
|
|
|
|
23,219
|
|
|
|
18,521
|
|
|
Impairment loss on real estate assets
|
|
|
|
—
|
|
|
|
13,550
|
|
|
General and administrative
|
|
|
|
8,044
|
|
|
|
6,946
|
|
|
Acquisition expenses
|
|
|
|
1,995
|
|
|
|
—
|
|
|
|
|
|
|
122,007
|
|
|
|
109,731
|
|
|
Real estate operating income
|
|
|
|
25,536
|
|
|
|
19,437
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(21,484
|
)
|
|
|
(17,910
|
)
|
|
Interest and other income
|
|
|
|
1,833
|
|
|
|
1,810
|
|
|
Loss on interest rate swaps
|
|
|
|
(6
|
)
|
|
|
(230
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
(477
|
)
|
|
|
—
|
|
|
|
|
|
|
(20,134
|
)
|
|
|
(16,330
|
)
|
|
Income before income tax benefit
|
|
|
|
5,402
|
|
|
|
3,107
|
|
|
Income tax benefit
|
|
|
|
196
|
|
|
|
344
|
|
|
Income from continuing operations
|
|
|
|
5,598
|
|
|
|
3,451
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
Operating income from discontinued operations
|
|
|
|
—
|
|
|
|
277
|
|
|
Loss on disposition of discontinued operations
|
|
|
|
—
|
|
|
|
(328
|
)
|
|
Loss from discontinued operations
|
|
|
|
—
|
|
|
|
(51
|
)
|
|
Net income
|
|
|
|
$
|
5,598
|
|
|
|
$
|
3,400
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.03
|
|
|
Loss from discontinued operations
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
Net income
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.03
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
|
124,903
|
|
|
|
124,851
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.03
|
|
|
Loss from discontinued operations
|
|
|
|
$
|
0.00
|
|
|
|
$
|
0.00
|
|
|
Net income
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.03
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
|
124,935
|
|
|
|
124,887
|
|
|
Dividends per share
|
|
|
|
$
|
0.300
|
|
|
|
$
|
0.300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
FUNDS FROM
OPERATIONS, NORMALIZED FUNDS FROM OPERATIONS
AND
ADJUSTED FUNDS FROM OPERATIONS
(in thousands, except
per-share amounts, unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Reconciliation of Net Income to Funds From Operations, Normalized
Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
5,598
|
|
|
$
|
3,400
|
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation of real estate assets
|
|
|
34,007
|
|
|
27,304
|
|
|
Amortization of lease-related costs
|
|
|
23,219
|
|
|
18,521
|
|
|
Impairment loss on real estate assets
|
|
|
—
|
|
|
13,550
|
|
|
Loss on sale of real estate assets - discontinued operations
|
|
|
—
|
|
|
328
|
|
|
Funds From Operations adjustments
|
|
|
57,226
|
|
|
59,703
|
|
|
FFO
|
|
|
62,824
|
|
|
63,103
|
|
|
Real estate acquisition related costs
|
|
|
1,995
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
477
|
|
|
—
|
|
|
Normalized FFO
|
|
|
65,296
|
|
|
63,103
|
|
|
Other income (expenses) included in net income, which do not
correlate with our operations:
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities)(1)
|
|
|
(2,742
|
)
|
|
(276
|
)
|
|
Straight-line rental income(2)
|
|
|
(3,937
|
)
|
|
(2,356
|
)
|
|
Gain on interest rate swaps
|
|
|
(1,315
|
)
|
|
(1,097
|
)
|
|
Stock-based compensation expense in general and administrative(3)
|
|
|
1,014
|
|
|
507
|
|
|
Non-cash interest expense(4)
|
|
|
1,069
|
|
|
736
|
|
|
Total other non-cash adjustments
|
|
|
(5,911
|
)
|
|
(2,486
|
)
|
|
Recurring capital expenditures(5)
|
|
|
(13,147
|
)
|
|
(19,344
|
)
|
|
Adjusted FFO
|
|
|
$
|
46,238
|
|
|
$
|
41,273
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
Normalized FFO per share
|
|
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.37
|
|
|
$
|
0.33
|
|
|
Weighted-average shares outstanding - basic
|
|
|
124,903
|
|
|
124,851
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.50
|
|
|
$
|
0.51
|
|
|
Normalized FFO per share
|
|
|
$
|
0.52
|
|
|
$
|
0.51
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.37
|
|
|
$
|
0.33
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
124,935
|
|
|
124,887
|
|
|
|
|
(1) 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.
|
|
(2) Prior to first quarter 2015, adjustments for
straight-line rent related to lease terminations were included.
|
|
(3) This item represents the noncash impact of compensation
expense related to stock grants under our Long-Term Incentive Plan.
|
|
(4) 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.
|
|
(5) Recurring Capital Expenditures are defined as capital
expenditures incurred to maintain the building structure and
functionality, and to lease space at our properties in their
current condition. Recurring capital expenditures include building
capital, tenant improvements, and leasing commissions. This
measure excludes capital for first generation leasing and
acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME
AND SAME STORE NET OPERATING INCOME - CASH BASIS
(in
thousands, unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Reconciliation of Net Income to Net Operating Income - Cash Basis
and Same Store Net Operating Income - Cash Basis:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
5,598
|
|
|
$
|
3,400
|
|
|
Net interest expense
|
|
|
21,469
|
|
|
17,910
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
(1,800
|
)
|
|
Income tax benefit
|
|
|
(196
|
)
|
|
(344
|
)
|
|
Depreciation
|
|
|
34,007
|
|
|
27,304
|
|
|
Amortization
|
|
|
23,219
|
|
|
18,521
|
|
|
EBITDA
|
|
|
$
|
82,297
|
|
|
$
|
64,991
|
|
|
Real estate acquisition costs
|
|
|
1,995
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
477
|
|
|
—
|
|
|
Impairment loss
|
|
|
—
|
|
|
13,550
|
|
|
Discontinued operations adjustment
|
|
|
—
|
|
|
328
|
|
|
Adjusted EBITDA
|
|
|
$
|
84,769
|
|
|
$
|
78,869
|
|
|
General and administrative
|
|
|
8,044
|
|
|
6,946
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,315
|
)
|
|
(1,097
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,321
|
|
|
1,327
|
|
|
Lease termination income (1)
|
|
|
(1,139
|
)
|
|
(447
|
)
|
|
Straight-line rental income
|
|
|
(3,937
|
)
|
|
(2,090
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
(2,742
|
)
|
|
(402
|
)
|
|
Non-cash property operations
|
|
|
—
|
|
|
125
|
|
|
NOI - Cash basis from discontinued operations adjustments
|
|
|
—
|
|
|
18
|
|
|
Net Operating Income - Cash Basis
|
|
|
$
|
85,001
|
|
|
$
|
83,249
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(9,531
|
)
|
|
—
|
|
|
Dispositions(3)
|
|
|
(17
|
)
|
|
(7,061
|
)
|
|
Same Store NOI - Cash Basis
|
|
|
$
|
75,453
|
|
|
$
|
76,188
|
|
|
|
|
(1) Includes adjustments for straight-line rent related to
lease terminations.
|
|
(2) Includes the following acquisitions: 315 Park Avenue
South, 1881 Campus Commons, 116 Huntington Avenue, 650 California
Street, and 221 Main Street.
|
|
(3) Includes the following dispositions: Lenox Park
Buildings, 9 Technology Drive, 7031 Columbia Gateway Drive, 200
South Orange, and 160 Park Avenue.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME
AND SAME STORE NET OPERATING INCOME - GAAP BASIS
(in
thousands, unaudited)
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
Reconciliation of Net Income to Net Operating Income - GAAP Basis
and Same Store Net Operating Income - GAAP Basis:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
5,598
|
|
|
|
$
|
3,400
|
|
|
Net interest expense
|
|
|
21,469
|
|
|
|
17,910
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax benefit
|
|
|
(196
|
)
|
|
|
(344
|
)
|
|
Depreciation
|
|
|
34,007
|
|
|
|
27,304
|
|
|
Amortization
|
|
|
23,219
|
|
|
|
18,521
|
|
|
EBITDA
|
|
|
$
|
82,297
|
|
|
|
$
|
64,991
|
|
|
Real estate acquisition costs
|
|
|
1,995
|
|
|
|
—
|
|
|
Loss on early extinguishment of debt
|
|
|
477
|
|
|
|
—
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
13,550
|
|
|
Discontinued operations adjustment
|
|
|
—
|
|
|
|
328
|
|
|
Adjusted EBITDA
|
|
|
$
|
84,769
|
|
|
|
$
|
78,869
|
|
|
General and administrative
|
|
|
8,044
|
|
|
|
6,946
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,315
|
)
|
|
|
(1,097
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,321
|
|
|
|
1,327
|
|
|
Lease termination income(1)
|
|
|
(1,139
|
)
|
|
|
(447
|
)
|
|
NOI - GAAP basis from discontinued operations adjustments
|
|
|
—
|
|
|
|
142
|
|
|
Net Operating Income - GAAP Basis
|
|
|
$
|
91,680
|
|
|
|
$
|
85,740
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(14,186
|
)
|
|
|
—
|
|
|
Dispositions(3)
|
|
|
(17
|
)
|
|
|
(7,487
|
)
|
|
Same Store NOI - GAAP Basis
|
|
|
$
|
77,477
|
|
|
|
$
|
78,253
|
|
|
|
|
(1) Includes adjustments for straight-line rent related to
lease terminations.
|
|
(2) Includes the following acquisitions: 315 Park Avenue
South, 1881 Campus Commons, 116 Huntington Avenue, 650 California
Street and 221 Main Street.
|
|
(3) Includes the following dispositions: Lenox Park
Buidlings, 9 Technology Drive, 7031 Columbia Gateway Drive, 200
South Orange Building, and 160 Park Avenue.
|
|
|
|
|
|
|
for Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.