ATLANTA--(BUSINESS WIRE)--
Columbia
Property Trust, Inc. (NYSE: CXP) reported financial results today
for the first quarter ended March 31, 2016.
Highlights:
-
For the first quarter of 2016, Normalized Funds from Operations (FFO)
per diluted share was $0.44, Adjusted Funds from Operations (AFFO) per
diluted share was $0.38, and Net Income per diluted share was $0.05
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Continued our shift to high-barrier markets through dispositions. We
sold 100 East Pratt in Baltimore for $187 million, and expect total
dispositions in 2016 to generate proceeds of $700 million to $800
million
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Repaid the remaining $119 million on our short-term bridge loan in
early April
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Completed 466,000 square feet of leasing since the beginning of 2016,
including a 390,000-square-foot, 30-year, full building lease with
NYU’s Langone Medical Center at 222 East 41st Street in Midtown New
York, signed in April
"We’re off to a strong start for 2016, with a focus on the execution of
key leasing opportunities in our high-quality portfolio, which includes
substantial embedded rent growth," noted Nelson
Mills, President and CEO. "The signing of a full-building lease at
222 East 41st in Midtown New York addresses our largest near-term tenant
expiration with minimal down-time. This is a testament to the quality
and appeal of this property, as well as the effectiveness of having
local teams in our key markets.
"We are also pleased to have made progress on our disposition targets
with the completed sale of 100 East Pratt in Baltimore last month, and
we remain engaged in discussions for our other targeted assets, with
expected pricing in the range we have previously discussed."
Disposition Activity:
In March, we sold 100 East Pratt in Baltimore for gross proceeds of $187
million. We continue to market for sale the 1.3 million-square-foot Key
Center Tower and the 400-room Key Center Marriott in Cleveland, as well
as the 961,000-square-foot 80 Park Plaza in Newark. These three sales
and the disposition of two suburban assets in Gaithersburg, Maryland and
Chicago, all of which are subject to market conditions, are expected to
generate gross proceeds of $700 million to $800 million in 2016.
Financing Activity:
In early April, using the proceeds from the disposition of 100 East
Pratt, we reduced borrowings under our revolving credit facility and
repaid the $119 million balance remaining on our bridge loan, which was
scheduled to mature in August 2016.
Portfolio Highlights:
During the first quarter, we entered into leases for 65,000 rentable
square feet of office space with an average lease term of approximately
7.9 years. Our first quarter leasing activity included 52,000 square
feet of new leases and 13,000 square feet of renewal leases.
As of March 31, 2016, our portfolio of 26 office properties was 92.4%
leased and 91.7% occupied compared with 92.3% leased and 91.2% occupied
as of March 31, 2015, and 93.2% leased and 91.6% occupied as of
December 31, 2015.
Same store NOI for the first quarter of 2016 decreased 1.5% on a GAAP
basis and 2.2% on a cash basis. However, for leases executed during the
quarter, we experienced a 49.2% increase in rental rates on a cash basis
and a 113.6% increase in rental rates on a GAAP basis primarily due to a
lease at University Circle in Palo Alto, California.
Subsequent to quarter end, we signed NYU’s Langone Medical Center to a
30-year, 390,000 square foot lease for the entire building at 222 East
41st Street in Midtown New York.
Financial Results:
Net Income Attributable to Common Stockholders was $6.7 million, or
$0.05 per diluted share, for the first quarter of 2016, compared with
$5.6 million, or $0.04 per diluted share, for the first quarter of 2015.
Normalized FFO was $54.8 million, or $0.44 per diluted share, for the
first quarter of 2016, compared with $65.3 million, or $0.52 per diluted
share, in the prior-year period.
AFFO was $46.5 million, or $0.38 per diluted share, for the first
quarter of 2016, compared with $46.2 million, or $0.37 per diluted
share, in the prior-year period.
NOI for the first quarter of 2016 decreased 10.4% on a GAAP basis and
12.0% on a cash basis compared with the prior-year period, primarily due
to selling 11 properties on July 1, 2015.
Distributions:
For the first quarter of 2016, we paid a dividend of $0.30 per share, or
an annualized rate of $1.20 per share. The dividend was paid on March
15, 2016, to stockholders of record as of March 1, 2016.
Share Repurchases:
During the first quarter, we continued to execute under our $200 million
share repurchase program with the purchase of 1.1 million shares for a
total expenditure of $25.0 million, or a weighted-average price of
$22.60 per share. Since inception of the program in September 2015, we
have acquired 1.8 million shares for a total expenditure of $41.3
million.
Guidance for 2016:
For the year ending December 31, 2016, the Company maintained its
previously issued guidance range for Normalized FFO of $1.50 to $1.60
per diluted share, and for Net Income in the range of $0.23 to $0.33 per
diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO per
diluted share is provided as follows:
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Full Year
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2016 Range
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Low
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High
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Net income
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$
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0.23
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$
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0.33
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Add: Real estate depreciation & amortization
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1.27
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1.27
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Loss on sale of real estate assets
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0.00
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0.00
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FFO
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1.50
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1.60
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Adjustments
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—
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—
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Normalized FFO
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$
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1.50
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$
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1.60
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Our guidance for 2016 is based on the following assumptions for our
portfolio:
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Leased percentage at year end 2016 of 90% to 92%
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GAAP straight-line rental income of $16 million to $24 million
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G&A of $32 million to $34 million
-
Dispositions of $700 million to $800 million ($187 million sold to
date)
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Acquisitions of $200 million to $400 million
Weighted average diluted share count of 123.5 million (excludes impact
of share repurchases after April 28, 2016)
Jim Fleming, Executive Vice President and Chief Financial Officer,
added, "We were pleased with our financial results for the first
quarter, and our portfolio continues to perform well. At this point, our
FFO guidance range remains unchanged, and we will revisit it next
quarter when we have more clarity on the timing of dispositions. While
the leasing of the entire building at 222 East 41st will not materially
affect 2016 FFO, it will have a positive impact on FFO in 2017 and
future years."
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, later today at 5:00 p.m. ET to discuss quarterly
financial results and business highlights. The number to call for this
interactive teleconference is (412) 542-4180. A replay of the conference
call will be available through May 6, 2016, by dialing (877) 344-7529
and entering the confirmation number, 10082995.
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 (NYSE: CXP) owns and operates Class-A office
buildings in competitive, primarily CBD locations, and over half our
investments are in high-barrier-to-entry, primary markets. Our $5
billion portfolio includes 26 office properties containing 13.0 million
square feet and one hotel, concentrated in San Francisco, New York, and
Washington, D.C. For more information about Columbia, which carries an
investment-grade rating from both Moody’s and Standard & Poor’s, 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 certain non-recurring
items, including: (i) real estate acquisition-related costs, (ii)
listing costs, (iii) loss on interest rate swaps and (iv) loss on early
extinguishment of debt. Such items create significant earnings
volatility. We believe Normalized FFO provides a meaningful measure of
our operating performance and more predictability regarding future
earnings potential. Normalized FFO is a non-GAAP financial measure and
should not be viewed as an alternative measurement of our operating
performance to net income; therefore, it should not be compared to other
REITs’ equivalent to Normalized FFO.
Adjusted Funds from Operations - AFFO is calculated by
adjusting Normalized FFO to exclude (i) additional amortization of lease
assets (liabilities), (ii) straight-line rental income, (iii) gain
(loss) on interest rate swaps, (iv) 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) 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 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, 2015 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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March 31,
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December 31,
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2016
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2015
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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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864,690
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$
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896,467
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Buildings and improvements, less accumulated depreciation of
$584,830 and $613,639, as of March 31, 2016 and December 31, 2015,
respectively
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2,790,003
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2,897,431
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Intangible lease assets, less accumulated amortization of $244,578
and $250,085, as of March 31, 2016 and December 31, 2015,
respectively
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245,783
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259,136
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Construction in progress
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11,223
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31,847
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Total real estate assets
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3,911,699
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4,084,881
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Investment in unconsolidated joint venture
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121,784
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118,695
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Cash and cash equivalents
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185,376
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32,645
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Tenant receivables, net of allowance for doubtful accounts of $530
and $8 as of March 31, 2016 and December 31, 2015, respectively
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11,731
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11,670
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Straight-line rent receivable
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103,367
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109,062
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Prepaid expenses and other assets
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35,779
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35,848
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Intangible lease origination costs, less accumulated amortization of
$174,180 and $181,482, as of March 31, 2016 and December 31, 2015,
respectively
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70,560
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77,190
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Deferred lease costs, less accumulated amortization of $38,808 and
$40,817, as of March 31, 2016 and December 31, 2015, respectively
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74,502
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88,127
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Investment in development authority bonds
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120,000
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120,000
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Total assets
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$
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4,634,798
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$
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4,678,118
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Liabilities:
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Line of credit and notes payable, net of deferred financing costs of
$4,044 and $4,492, as of March 31, 2016 and December 31, 2015,
respectively
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$
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1,204,678
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$
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1,130,571
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Bonds payable, net of discounts of $945 and $1,020 and deferred
financing costs of $3,546 and $3,721, as of March 31, 2016 and
December 31, 2015, respectively
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595,509
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595,259
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Accounts payable, accrued expenses, and accrued capital expenditures
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85,351
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98,759
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Dividends payable
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—
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37,354
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Deferred income
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21,886
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24,814
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Intangible lease liabilities, less accumulated amortization of
$82,098 and $81,496, as of
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53,154
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57,167
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March 31, 2016 and December 31, 2015, respectively
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Obligations under capital leases
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120,000
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120,000
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Total liabilities
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2,080,578
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2,063,924
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Commitments and Contingencies
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—
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—
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Equity:
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Common stock, $0.01 par value, 225,000,000 shares authorized,
123,458,960 and 124,363,073 shares issued and outstanding as of
March 31, 2016 and December 31, 2015, respectively
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1,234
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|
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|
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1,243
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Additional paid-in capital
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4,563,537
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4,588,303
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Cumulative distributions in excess of earnings
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(2,003,258
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)
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(1,972,916
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)
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Cumulative other comprehensive loss
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(7,293
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)
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(2,436
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)
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Total equity
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2,554,220
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2,614,194
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Total liabilities and equity
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$
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4,634,798
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$
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4,678,118
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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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Three Months Ended
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March 31,
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2016
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2015
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Revenues:
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Rental income
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$
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99,586
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$
|
112,809
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Tenant reimbursements
|
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19,753
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|
|
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28,249
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Hotel income
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4,663
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4,993
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Other property income
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|
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2,577
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|
|
|
|
1,492
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|
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|
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126,579
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|
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147,543
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Expenses:
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Property operating costs
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|
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41,336
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|
|
|
|
49,754
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Hotel operating costs
|
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|
|
4,331
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|
|
|
|
4,591
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|
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Asset and property management fees
|
|
|
|
|
330
|
|
|
|
|
397
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|
|
Depreciation
|
|
|
|
|
29,289
|
|
|
|
|
34,007
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|
|
Amortization
|
|
|
|
|
16,075
|
|
|
|
|
23,219
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|
|
General and administrative
|
|
|
|
|
10,490
|
|
|
|
|
8,044
|
|
|
Acquisition expenses
|
|
|
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|
—
|
|
|
|
|
1,995
|
|
|
|
|
|
|
|
101,851
|
|
|
|
|
122,007
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|
|
Real estate operating income
|
|
|
|
|
24,728
|
|
|
|
|
25,536
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|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(17,897
|
)
|
|
|
|
(21,484
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)
|
|
Interest and other income
|
|
|
|
|
1,805
|
|
|
|
|
1,833
|
|
|
Loss on interest rate swaps
|
|
|
|
|
—
|
|
|
|
|
(6
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
|
—
|
|
|
|
|
(477
|
)
|
|
|
|
|
|
|
(16,092
|
)
|
|
|
|
(20,134
|
)
|
|
Income before income taxes, unconsolidated joint venture, and
loss on sale of real estate
|
|
|
|
|
8,636
|
|
|
|
|
5,402
|
|
|
Income tax benefit (expense)
|
|
|
|
|
(77
|
)
|
|
|
|
196
|
|
|
Loss from unconsolidated joint venture
|
|
|
|
|
(1,552
|
)
|
|
|
|
—
|
|
|
Income before loss on sale of real estate
|
|
|
|
|
7,007
|
|
|
|
|
5,598
|
|
|
Loss on sale of real estate
|
|
|
|
|
(310
|
)
|
|
|
|
—
|
|
|
Net income
|
|
|
|
$
|
6,697
|
|
|
|
$
|
5,598
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.04
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
|
|
123,393
|
|
|
|
|
124,903
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.04
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
|
|
123,412
|
|
|
|
|
124,935
|
|
|
Dividends per share
|
|
|
|
$
|
0.30
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2016
|
|
2015
|
|
Reconciliation of Net Income to Funds From Operations, Normalized
Funds From Operations and Adjusted Funds From Operations:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
6,697
|
|
|
$
|
5,598
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation of real estate assets
|
|
|
|
|
29,289
|
|
|
|
34,007
|
|
|
Amortization of lease-related costs
|
|
|
|
|
16,075
|
|
|
|
23,219
|
|
|
Depreciation and amortization included in loss from unconsolidated
joint venture
|
|
|
|
|
2,470
|
|
|
|
—
|
|
|
Loss on sale of real estate
|
|
|
|
|
310
|
|
|
|
—
|
|
|
FFO
|
|
|
|
|
54,841
|
|
|
|
62,824
|
|
|
Real estate acquisition-related costs
|
|
|
|
|
—
|
|
|
|
1,995
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
—
|
|
|
|
477
|
|
|
Normalized FFO
|
|
|
|
|
54,841
|
|
|
|
65,296
|
|
|
Other income (expenses) included in net income, which do not
correlate with our operations:
|
|
|
|
|
|
|
|
Additional amortization of lease assets (liabilities)(1)
|
|
|
|
|
(1,322
|
)
|
|
|
(2,742
|
)
|
|
Straight-line rental income
|
|
|
|
|
(5,375
|
)
|
|
|
(3,937
|
)
|
|
Gain on interest rate swaps
|
|
|
|
|
—
|
|
|
|
(1,315
|
)
|
|
Stock-based compensation expense in general and administrative(2)
|
|
|
|
|
1,382
|
|
|
|
1,014
|
|
|
Non-cash interest expense(3)
|
|
|
|
|
1,012
|
|
|
|
1,069
|
|
|
Other non-cash adjustments included in loss from unconsolidated
joint venture
|
|
|
|
|
(401
|
)
|
|
|
—
|
|
|
Total other non-cash adjustments
|
|
|
|
|
(4,704
|
)
|
|
|
(5,911
|
)
|
|
Recurring capital expenditures(4)
|
|
|
|
|
(3,671
|
)
|
|
|
(13,147
|
)
|
|
Adjusted FFO
|
|
|
|
$
|
46,466
|
|
|
$
|
46,238
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
FFO per share
|
|
|
|
$
|
0.44
|
|
|
$
|
0.50
|
|
|
Normalized FFO per share
|
|
|
|
$
|
0.44
|
|
|
$
|
0.52
|
|
|
Adjusted FFO per share
|
|
|
|
$
|
0.38
|
|
|
$
|
0.37
|
|
|
Weighted-average shares outstanding - basic
|
|
|
|
|
123,393
|
|
|
|
124,903
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
FFO per share
|
|
|
|
$
|
0.44
|
|
|
$
|
0.50
|
|
|
Normalized FFO per share
|
|
|
|
$
|
0.44
|
|
|
$
|
0.52
|
|
|
Adjusted FFO per share
|
|
|
|
$
|
0.38
|
|
|
$
|
0.37
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
|
|
123,412
|
|
|
|
124,935
|
|
|
|
|
|
|
|
|
|
|
(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) This item represents the noncash impact of
compensation expense related to stock grants under our Long-Term
Incentive Plan.
|
|
(3) This item represents amortization of financing
costs paid in connection with executing our debt instruments, and
the accretion of premiums (and amortization of discounts) on
certain of our debt instruments. GAAP requires these items to be
recognized over the remaining term of the respective debt
instrument, which may not correlate with the ongoing operations of
our real estate portfolio.
|
|
(4) 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,
|
|
|
|
|
|
2016
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income - Cash Basis
and Same Store Net Operating Income - Cash Basis:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
6,697
|
|
|
$
|
5,598
|
|
|
Interest expense, net
|
|
|
|
|
19,999
|
|
|
|
21,469
|
|
|
Interest income from development authority bonds
|
|
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax expense (benefit)
|
|
|
|
|
77
|
|
|
|
(196
|
)
|
|
Depreciation
|
|
|
|
|
31,097
|
|
|
|
34,007
|
|
|
Amortization
|
|
|
|
|
16,737
|
|
|
|
23,219
|
|
|
EBITDA
|
|
|
|
$
|
72,807
|
|
|
$
|
82,297
|
|
|
Real estate acquisition costs
|
|
|
|
|
—
|
|
|
|
1,995
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
—
|
|
|
|
477
|
|
|
Loss on sale of real estate
|
|
|
|
|
310
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
73,117
|
|
|
$
|
84,769
|
|
|
General and administrative
|
|
|
|
|
10,552
|
|
|
|
8,044
|
|
|
Interest rate swap valuation adjustment
|
|
|
|
|
—
|
|
|
|
(1,315
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
|
|
—
|
|
|
|
1,321
|
|
|
Lease termination income(1)
|
|
|
|
|
(1,568
|
)
|
|
|
(1,139
|
)
|
|
Straight-line rental income
|
|
|
|
|
(5,872
|
)
|
|
|
(3,937
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
|
|
(1,417
|
)
|
|
|
(2,742
|
)
|
|
Net operating income - cash basis
|
|
|
|
$
|
74,812
|
|
|
$
|
85,001
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
|
|
(9,130
|
)
|
|
|
(3,908
|
)
|
|
Dispositions(3)
|
|
|
|
|
(2,713
|
)
|
|
|
(16,716
|
)
|
|
Same store NOI - cash basis(4)
|
|
|
|
$
|
62,969
|
|
|
$
|
64,377
|
|
|
|
|
|
|
|
|
|
|
(1) Includes adjustments for straight-line rent related
to lease terminations.
|
|
(2) Reflects activity for the following properties
acquired since January 1, 2015, for all periods presented: 229
West 43rd Street, 315 Park Avenue South, and 116 Huntington Avenue.
|
|
(3) Reflects activity for the following properties sold
since January 1, 2015, for all periods presented: 100 East Pratt,
1881 Campus Commons, Market Square (49%), 170 Park Avenue, 180
Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark
III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn
Lake III, 550 King Street, and Robbins Road.
|
|
(4) Includes Columbia Property Trust's pro rata share
(51%) in the Market Square Joint Venture for all periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
|
|
NET OPERATING INCOME AND SAME STORE NET OPERATING INCOME - GAAP
BASIS
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income - GAAP Basis
and Same Store Net Operating Income - GAAP Basis:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
6,697
|
|
|
$
|
5,598
|
|
|
Net interest expense
|
|
|
|
|
19,999
|
|
|
|
21,469
|
|
|
Interest income from development authority bonds
|
|
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax expense (benefit)
|
|
|
|
|
77
|
|
|
|
(196
|
)
|
|
Depreciation
|
|
|
|
|
31,097
|
|
|
|
34,007
|
|
|
Amortization
|
|
|
|
|
16,737
|
|
|
|
23,219
|
|
|
EBITDA
|
|
|
|
$
|
72,807
|
|
|
$
|
82,297
|
|
|
Real estate acquisition costs
|
|
|
|
|
—
|
|
|
|
1,995
|
|
|
Loss on early extinguishment of debt
|
|
|
|
|
—
|
|
|
|
477
|
|
|
Loss on sale of real estate
|
|
|
|
|
310
|
|
|
|
—
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
73,117
|
|
|
$
|
84,769
|
|
|
General and administrative
|
|
|
|
|
10,552
|
|
|
|
8,044
|
|
|
Interest rate swap valuation adjustment
|
|
|
|
|
—
|
|
|
|
(1,315
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
|
|
—
|
|
|
|
1,321
|
|
|
Lease termination income(1)
|
|
|
|
|
(1,568
|
)
|
|
|
(1,139
|
)
|
|
Net Operating Income - GAAP Basis
|
|
|
|
$
|
82,101
|
|
|
$
|
91,680
|
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
|
|
(10,038
|
)
|
|
|
(5,189
|
)
|
|
Dispositions(3)
|
|
|
|
|
(3,918
|
)
|
|
|
(17,285
|
)
|
|
Same Store NOI - GAAP Basis(4)
|
|
|
|
$
|
68,145
|
|
|
$
|
69,206
|
|
|
|
|
|
|
|
|
|
|
(1) Includes adjustments for straight-line rent related
to lease terminations.
|
|
(2) Reflects activity for the following properties
acquired since January 1, 2015, for all periods presented: 229
West 43rd Street, 315 Park Avenue South, and 116 Huntington Avenue.
|
|
(3) Reflects activity for the following properties sold
since January 1, 2015, for all periods presented: 100 East Pratt,
1881 Campus Commons, Market Square (49%), 170 Park Avenue, 180
Park Avenue, 1580 West Nursery Road, Acxiom, Highland Landmark
III, The Corridors III, 215 Diehl Road, 544 Lakeview, Bannockburn
Lake III, 550 King Street, and Robbins Road.
|
|
(4) Includes Columbia Property Trust's pro rata share
(51%) in the Market Square Joint Venture for all periods presented.
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160428006634/en/
for Columbia Property Trust
Media Contact:
Bud
Perrone, 212-843-8068
bperrone@rubenstein.com
or
Investor
Relations:
Matt Stover, 404-465-2227
IR@columbiapropertytrust.com
Source: Columbia Property Trust