ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (the “Company”) (NYSE: CXP) reported
financial results today for the second quarter ended June 30, 2015.
Highlights:
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For the second quarter of 2015, Normalized Funds from Operations (FFO)
per diluted share was $0.53, Adjusted Funds from Operations (AFFO) per
diluted share was $0.37, and Net Income Attributable to Common
Stockholders per diluted share was $0.07
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Expanded our presence in Midtown Manhattan with the agreement in July
2015 to acquire 229 West 43rd Street for $516 million,
which is expected to close within 30 days
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Disposition of 11 non-core assets in July for $433 million completes
the majority of 2015 dispositions previously identified
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In June and July, repaid $333 million of secured debt and recast $950
million of unsecured bank debt with longer maturities and lower
borrowing costs
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Completed 165,000 square feet of leasing during the second quarter,
including 105,000 square feet of renewals, with a 22.5% increase in
rental rates on a cash basis and a 35.8% increase in rental rates on a
GAAP basis
"We've continued to enhance our portfolio by acquiring key assets in our
target markets, selling buildings in non-core markets, and leasing
proactively across the portfolio,” noted Nelson Mills, President and CEO
of Columbia Property Trust. “We've established a high quality portfolio
that is well leased overall, yet positioned for strong growth over the
next several years.
"We're very pleased with the timing and pricing we achieved on the
recent disposition of 11 non-core assets, another big step forward in
the execution of our strategy. The agreement earlier this month to
acquire 229 West 43rd Street further advances our high-barrier market
presence and positions us to compete in New York with a mix of value-add
and stable properties. Our largest markets are now San Francisco, New
York and Washington, D.C. We have strong income growth opportunities in
each of these cities as well as in other key markets. Our team is
working diligently and creatively to capture these value-creation
opportunities across the portfolio."
Acquisition Activity:
In July 2015, we announced an agreement to acquire the office portion,
481,110-square-feet, of 229 West 43rd Street, a 16-story,
731,596-square-foot Class-A office building in Midtown Manhattan, for
$516 million. The acquisition, which is targeted to close within 30
days, is expected to have first-year net operating income (NOI) of
approximately $22.3 million and significantly increase the percentage of
annualized lease revenues concentrated in CBD and high-barrier markets
and multi-tenant properties.
Disposition Activity:
In July, we announced the disposition of 11 properties for $433 million.
These 11 properties are located in suburban areas and are principally
single-tenant office properties, totaling 2.9 million square feet.
Proceeds from the disposition were used to facilitate the repayment of a
$207 million loan secured by 333 Market in San Francisco, a $21 million
mortgage loan secured by 215 Diehl Road in Chicago and a $105 million
loan secured by 100 East Pratt in Baltimore.
Financing Activity:
In July, we entered into a new $500 million unsecured revolving credit
facility, which matures in July 2019 with two six-month extension
options and bears interest at a rate of 100 basis points over LIBOR
based on current credit ratings.
In July, we also replaced our $450 million unsecured term loan maturing
in February 2016 with two separate facilities. The new $300 million
unsecured term loan matures in July 2020 and bears interest at 110 basis
points over LIBOR. The new $150 million unsecured term loan matures in
July 2022 and bears interest at 155 basis points over LIBOR, which has
been fixed at a rate of 3.52% with an interest swap.
Portfolio Highlights:
-
During the second quarter, we entered into leases for 165,000 rentable
square feet of office space with an average lease term of
approximately 7.7 years. Our second quarter leasing activity included
60,000 square feet of new leases and 105,000 square feet of renewal
leases.
-
As of June 30, 2015, our portfolio of 38 office properties was 92.1%
leased and 90.9% occupied compared with 93.5% leased and 92.2%
occupied as of June 30, 2014, and 92.3% leased and 91.2% occupied as
of March 31, 2015.
-
For leases executed during the quarter, we experienced a 22.5%
increase in rental rates on a cash basis and a 35.8% increase in
rental rates on a GAAP basis.
Financial Results:
Net Income Attributable to Common Stockholders was $8.7 million, or
$0.07 per diluted share, for the second quarter of 2015, compared with
$8.0 million, or $0.06 per diluted share, for the second quarter of 2014.
Normalized FFO was $66.3 million, or $0.53 per diluted share, for the
second quarter of 2015, compared with $66.6 million, or $0.53 per
diluted share, in the prior-year period.
AFFO was $45.8 million, or $0.37 per diluted share, for the second
quarter of 2015, compared with $56.0 million, or $0.45 per diluted
share, in the prior-year period.
NOI for the second quarter of 2015 increased 3.8% on a GAAP basis and
increased 0.3% on a cash basis compared with the prior-year period. Same
Store NOI for the second quarter of 2015 decreased 1.0% on a GAAP basis
compared with the prior-year period and decreased 1.7% on a cash basis.
Distributions:
For the second 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 June
16, 2015, to stockholders of record as of June 1, 2015.
Guidance for 2015:
For the year ending December 31, 2015, the Company continues to expect
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 $0.23
per diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO per
diluted share is provided as follows:
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Full Year
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2015 Range
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Low
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High
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Net income available to common stockholders
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$
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0.17
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$
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0.23
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Add: Real estate depreciation & amortization
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1.66
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1.66
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FFO
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1.83
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1.89
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Add: Acquisition costs
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0.02
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0.02
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Normalized FFO
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$
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1.85
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$
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1.91
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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%
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GAAP straight-line rental income of $14 million to $17 million
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G&A of $31 million to $33 million, excluding any unusual or one-time
items
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Acquisitions of $1.1 billion ($588 million completed and $516 million
announced)
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Dispositions of $500 million to $600 million ($433 million completed
to date)
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Weighted average diluted share count of 125.0 million
Jim Fleming, Executive Vice President and Chief Financial Officer,
added, "As evidenced by the second quarter results, our portfolio is
performing well. The timing of the portfolio sale early in the third
quarter would have caused our 2015 FFO to fall near the bottom of our
expected range, but this timing will be offset by the expected
acquisition of 229 West 43rd Street. With our capital markets
activity, we have returned the balance sheet once again to a level that
allows us to be disciplined, yet opportunistic, in our pursuit of new
investments such as this latest addition to our market presence in
Midtown Manhattan."
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 acquisitions
and 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, July 31, 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 (412)
317-6016. A replay of the conference call will be available through
August 7, 2015, by dialing (877) 344-7529 and entering the confirmation
number, 10067522.
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
Columbia Property Trust is a fully integrated real estate investment
trust that operates, manages, and acquires Class-A office buildings
concentrated in CBD locations, with approximately half of its portfolio,
as measured by annualized lease revenue, located in high-barrier primary
markets. As of July 1, 2015, Columbia owned 27 office properties and one
hotel, which included 40 buildings totaling 13.4 million square feet of
office space. For more information about Columbia Property Trust, please
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) gain (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 rate swaps, (iv) GAAP lease termination
income, (v) non-cash 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 rate 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.
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COLUMBIA PROPERTY TRUST, INC.
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CONSOLIDATED BALANCE SHEETS
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(in thousands, except share and per-share amounts)
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(Unaudited)
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June 30,
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December 31,
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2015
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2014
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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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849,042
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$
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785,101
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Buildings and improvements, less accumulated depreciation of
$616,274 and $660,098, as of June 30, 2015 and December 31, 2014,
respectively
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3,071,335
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3,026,431
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Intangible lease assets, less accumulated amortization of $264,564
and $313,822, as of June 30, 2015 and December 31, 2014, respectively
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265,735
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247,068
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Construction in progress
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39,777
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17,962
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Real estate assets held for sale, less accumulated depreciation and
amortization of $139,820, as of June 30, 2015
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372,484
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—
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Total real estate assets
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4,598,373
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4,076,562
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Cash and cash equivalents
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33,742
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149,790
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Tenant receivables, net of allowance for doubtful accounts of $0 and
$3 as of June 30, 2015 and December 31, 2014
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8,551
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6,945
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Straight-line rent receivable
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107,727
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116,489
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Prepaid expenses and other assets
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28,910
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52,143
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Deferred financing costs, less accumulated amortization of $16,695
and $15,205, as of June 30, 2015 and December 31, 2014, respectively
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9,811
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8,426
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Intangible lease origination costs, less accumulated amortization of
$179,438 and $219,626, as of June 30, 2015 and December 31, 2014,
respectively
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84,407
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105,528
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Deferred lease costs, less accumulated amortization of $37,166 and
$36,589, as of June 30, 2015 and December 31, 2014, respectively
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97,834
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102,995
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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
$42,181, as of June 30, 2015
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36,878
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—
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Total assets
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$
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5,126,233
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$
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4,738,878
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Liabilities:
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Line of credit and notes payable
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$
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1,517,696
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$
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1,430,884
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Bonds payable, net of discounts of $1,171 and $818, as of June 30,
2015 and December 31, 2014, respectively
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598,829
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249,182
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Accounts payable, accrued expenses, and accrued capital expenditures
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93,144
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|
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106,276
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Deferred income
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22,304
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24,753
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Intangible lease liabilities, less accumulated amortization of
$79,607 and $84,935, as of June 30, 2015 and December 31, 2014,
respectively
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71,387
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|
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74,305
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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 $3,662,
as of June 30, 2015
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28,239
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—
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Total liabilities
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2,451,599
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2,005,400
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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, $0.01 par value, 225,000,000 shares authorized,
125,075,802 and 124,973,304 shares issued and outstanding as of June
30, 2015 and December 31, 2014, respectively
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1,250
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1,249
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Additional paid-in capital
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4,603,107
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4,601,808
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Cumulative distributions in excess of earnings
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(1,928,350
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)
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(1,867,611
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)
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Cumulative other comprehensive loss
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(1,373
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(1,968
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)
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Total equity
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2,674,634
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|
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2,733,478
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Total liabilities and equity
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$
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5,126,233
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$
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4,738,878
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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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Six Months Ended
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June 30,
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June 30,
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2015
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2014
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2015
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2014
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Revenues:
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Rental income
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$
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112,916
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$
|
103,821
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$
|
225,725
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$
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204,388
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Tenant reimbursements
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26,519
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|
|
22,934
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|
|
54,768
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|
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46,667
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Hotel income
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6,964
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|
|
6,505
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|
|
11,957
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|
|
|
10,566
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Other property income
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|
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1,725
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|
|
|
3,497
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|
|
|
3,217
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|
|
4,304
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|
|
|
|
|
148,124
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|
|
|
136,757
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|
|
|
295,667
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|
|
|
265,925
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|
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Expenses:
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|
|
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Property operating costs
|
|
|
48,083
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|
|
|
38,832
|
|
|
|
97,837
|
|
|
|
77,812
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|
|
Hotel operating costs
|
|
|
5,147
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|
|
|
4,689
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|
|
|
9,738
|
|
|
|
8,830
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|
|
Asset and property management fees
|
|
|
503
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|
|
|
675
|
|
|
|
900
|
|
|
|
964
|
|
|
Depreciation
|
|
|
33,813
|
|
|
|
30,169
|
|
|
|
67,820
|
|
|
|
57,473
|
|
|
Amortization
|
|
|
23,738
|
|
|
|
20,221
|
|
|
|
46,957
|
|
|
|
38,742
|
|
|
Impairment loss on real estate assets
|
|
|
—
|
|
|
|
1,432
|
|
|
|
—
|
|
|
|
14,982
|
|
|
General and administrative
|
|
|
7,080
|
|
|
|
8,412
|
|
|
|
15,124
|
|
|
|
15,358
|
|
|
Acquisition expenses
|
|
|
—
|
|
|
|
6,102
|
|
|
|
1,995
|
|
|
|
6,102
|
|
|
|
|
|
118,364
|
|
|
|
110,532
|
|
|
|
240,371
|
|
|
|
220,263
|
|
|
Real estate operating income
|
|
|
29,760
|
|
|
|
26,225
|
|
|
|
55,296
|
|
|
|
45,662
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(22,765
|
)
|
|
|
(18,860
|
)
|
|
|
(44,249
|
)
|
|
|
(36,770
|
)
|
|
Interest and other income
|
|
|
1,807
|
|
|
|
1,802
|
|
|
|
3,640
|
|
|
|
3,612
|
|
|
Loss on interest rate swaps
|
|
|
(2
|
)
|
|
|
(105
|
)
|
|
|
(8
|
)
|
|
|
(335
|
)
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
(477
|
)
|
|
|
—
|
|
|
|
|
|
(20,960
|
)
|
|
|
(17,163
|
)
|
|
|
(41,094
|
)
|
|
|
(33,493
|
)
|
|
Income before income tax benefit (expense)
|
|
|
8,800
|
|
|
|
9,062
|
|
|
|
14,202
|
|
|
|
12,169
|
|
|
Income tax benefit (expense)
|
|
|
(91
|
)
|
|
|
(351
|
)
|
|
|
105
|
|
|
|
(7
|
)
|
|
Income from continuing operations
|
|
|
8,709
|
|
|
|
8,711
|
|
|
|
14,307
|
|
|
|
12,162
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) from discontinued operations
|
|
|
—
|
|
|
|
(40
|
)
|
|
|
—
|
|
|
|
237
|
|
|
Loss on disposition of discontinued operations
|
|
|
—
|
|
|
|
(650
|
)
|
|
|
—
|
|
|
|
(978
|
)
|
|
Loss from discontinued operations
|
|
|
—
|
|
|
|
(690
|
)
|
|
|
—
|
|
|
|
(741
|
)
|
|
Net income
|
|
|
$
|
8,709
|
|
|
|
$
|
8,021
|
|
|
|
$
|
14,307
|
|
|
|
$
|
11,421
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.07
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.10
|
|
|
Loss from discontinued operations
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.01
|
)
|
|
Net income
|
|
|
$
|
0.07
|
|
|
|
$
|
0.06
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.09
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
124,925
|
|
|
|
124,860
|
|
|
|
124,914
|
|
|
|
124,855
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
$
|
0.07
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.10
|
|
|
Loss from discontinued operations
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.01
|
)
|
|
Net income
|
|
|
$
|
0.07
|
|
|
|
$
|
0.06
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.09
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
125,017
|
|
|
|
124,919
|
|
|
|
124,981
|
|
|
|
124,901
|
|
|
Dividends per share
|
|
|
$
|
0.30
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.60
|
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Reconciliation of Net Income to Funds From Operations, Normalized
Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
8,709
|
|
|
|
$
|
8,021
|
|
|
|
$
|
14,307
|
|
|
|
$
|
11,421
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate assets
|
|
|
33,813
|
|
|
|
30,169
|
|
|
|
67,820
|
|
|
|
57,473
|
|
|
Amortization of lease-related costs
|
|
|
23,738
|
|
|
|
20,221
|
|
|
|
46,957
|
|
|
|
38,742
|
|
|
Impairment loss on real estate assets
|
|
|
—
|
|
|
|
1,432
|
|
|
|
—
|
|
|
|
14,982
|
|
|
Loss on sale of real estate assets - discontinued operations
|
|
|
—
|
|
|
|
650
|
|
|
|
—
|
|
|
|
978
|
|
|
Funds From Operations adjustments
|
|
|
57,551
|
|
|
|
52,472
|
|
|
|
114,777
|
|
|
|
112,175
|
|
|
FFO
|
|
|
66,260
|
|
|
|
60,493
|
|
|
|
129,084
|
|
|
|
123,596
|
|
|
Real estate acquisition related costs
|
|
|
—
|
|
|
|
6,102
|
|
|
|
1,995
|
|
|
|
6,102
|
|
|
Loss on early extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
477
|
|
|
|
—
|
|
|
Normalized FFO
|
|
|
66,260
|
|
|
|
66,595
|
|
|
|
131,556
|
|
|
|
129,698
|
|
|
Other income (expenses) included in net income, which do not
correlate with our operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities)(1)
|
|
|
(2,210
|
)
|
|
|
(924
|
)
|
|
|
(4,952
|
)
|
|
|
(1,200
|
)
|
|
Straight-line rental income(2)
|
|
|
(3,822
|
)
|
|
|
1,501
|
|
|
|
(7,759
|
)
|
|
|
(855
|
)
|
|
Gain on interest rate swaps
|
|
|
(1,319
|
)
|
|
|
(1,227
|
)
|
|
|
(2,634
|
)
|
|
|
(2,324
|
)
|
|
Stock-based compensation expense in general and administrative(3)
|
|
|
1,015
|
|
|
|
516
|
|
|
|
2,029
|
|
|
|
1,023
|
|
|
Non-cash interest expense(4)
|
|
|
917
|
|
|
|
776
|
|
|
|
1,986
|
|
|
|
1,512
|
|
|
Total other non-cash adjustments
|
|
|
(5,419
|
)
|
|
|
642
|
|
|
|
(11,330
|
)
|
|
|
(1,844
|
)
|
|
Recurring capital expenditures(5)
|
|
|
(15,005
|
)
|
|
|
(11,203
|
)
|
|
|
(28,152
|
)
|
|
|
(30,547
|
)
|
|
Adjusted FFO
|
|
|
$
|
45,836
|
|
|
|
$
|
56,034
|
|
|
|
$
|
92,074
|
|
|
|
$
|
97,307
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.53
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.03
|
|
|
|
$
|
0.99
|
|
|
Normalized FFO per share
|
|
|
$
|
0.53
|
|
|
|
$
|
0.53
|
|
|
|
$
|
1.05
|
|
|
|
$
|
1.04
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.74
|
|
|
|
$
|
0.78
|
|
|
Weighted-average shares outstanding - basic
|
|
|
124,925
|
|
|
|
124,860
|
|
|
|
124,914
|
|
|
|
124,855
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.53
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.03
|
|
|
|
$
|
0.99
|
|
|
Normalized FFO per share
|
|
|
$
|
0.53
|
|
|
|
$
|
0.53
|
|
|
|
$
|
1.05
|
|
|
|
$
|
1.04
|
|
|
Adjusted FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.74
|
|
|
|
$
|
0.78
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
125,017
|
|
|
|
124,919
|
|
|
|
124,981
|
|
|
|
124,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
Reconciliation of Net Income to Net Operating Income - Cash Basis
and Same Store Net Operating Income - Cash Basis:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
8,709
|
|
|
|
$
|
8,021
|
|
|
Net interest expense
|
|
|
22,762
|
|
|
|
18,860
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax benefit
|
|
|
91
|
|
|
|
351
|
|
|
Depreciation
|
|
|
33,813
|
|
|
|
30,169
|
|
|
Amortization
|
|
|
23,738
|
|
|
|
20,221
|
|
|
EBITDA
|
|
|
$
|
87,313
|
|
|
|
$
|
75,822
|
|
|
Real estate acquisition costs
|
|
|
—
|
|
|
|
6,102
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
1,432
|
|
|
Loss on disposition of real estate assets - discontinued operations
|
|
|
—
|
|
|
|
650
|
|
|
Adjusted EBITDA
|
|
|
$
|
87,313
|
|
|
|
$
|
84,006
|
|
|
General and administrative
|
|
|
7,080
|
|
|
|
8,412
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,319
|
)
|
|
|
(1,227
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,321
|
|
|
|
1,332
|
|
|
Lease termination income (1)
|
|
|
(1,295
|
)
|
|
|
(3,138
|
)
|
|
Straight-line rental income
|
|
|
(3,822
|
)
|
|
|
(1,789
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
(2,210
|
)
|
|
|
(1,092
|
)
|
|
Non-cash property operations
|
|
|
—
|
|
|
|
169
|
|
|
Operating loss from discontinued operations - cash basis
|
|
|
—
|
|
|
|
110
|
|
|
Net Operating Income - Cash Basis
|
|
|
$
|
87,068
|
|
|
|
$
|
86,783
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(9,728
|
)
|
|
|
(943
|
)
|
|
Dispositions(3)
|
|
|
(3
|
)
|
|
|
(7,130
|
)
|
|
Same Store NOI - Cash Basis
|
|
|
$
|
77,337
|
|
|
|
$
|
78,710
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
Reconciliation of Net Income to Net Operating Income - GAAP Basis
and Same Store Net Operating Income - GAAP Basis:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
8,709
|
|
|
|
$
|
8,021
|
|
|
Net interest expense
|
|
|
22,762
|
|
|
|
18,860
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax benefit
|
|
|
91
|
|
|
|
351
|
|
|
Depreciation
|
|
|
33,813
|
|
|
|
30,169
|
|
|
Amortization
|
|
|
23,738
|
|
|
|
20,221
|
|
|
EBITDA
|
|
|
$
|
87,313
|
|
|
|
$
|
75,822
|
|
|
Real estate acquisition costs
|
|
|
—
|
|
|
|
6,102
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
1,432
|
|
|
Loss on disposition of real estate assets - discontinued operations
|
|
|
—
|
|
|
|
650
|
|
|
Adjusted EBITDA
|
|
|
$
|
87,313
|
|
|
|
$
|
84,006
|
|
|
General and administrative
|
|
|
7,080
|
|
|
|
8,412
|
|
|
Interest rate swap valuation adjustment
|
|
|
(1,319
|
)
|
|
|
(1,227
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
1,321
|
|
|
|
1,332
|
|
|
Lease termination income(1)
|
|
|
(1,295
|
)
|
|
|
(3,138
|
)
|
|
Loss on sale of real estate assets - discontinued operations
|
|
|
—
|
|
|
|
279
|
|
|
Net Operating Income - GAAP Basis
|
|
|
$
|
93,100
|
|
|
|
$
|
89,664
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(13,618
|
)
|
|
|
(1,869
|
)
|
|
Dispositions(3)
|
|
|
(3
|
)
|
|
|
(7,532
|
)
|
|
Same Store NOI - GAAP Basis
|
|
|
$
|
79,479
|
|
|
|
$
|
80,263
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Building, and 160 Park Avenue.
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730006684/en/
Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.