ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE: CXP) reported financial results
today for the quarter ended September 30, 2016.
Highlights:
-
For the third quarter of 2016, our Net Income per diluted share was
$0.30 and our Normalized Funds from Operations (NFFO)(1)
per diluted share was $0.37. Cash flows from operations were $60.3
million and Adjusted Funds from Operations were $30.3 million.
-
We continued our non-core dispositions with the sales of 80 Park Plaza
in Newark, South Jamaica Street in Denver, and 800 North Frederick
Avenue in Suburban Maryland for total gross proceeds of $364 million,
bringing us to $551 million of dispositions completed to date in 2016.
-
We issued $350 million in ten-year, unsecured 3.650% senior notes to
extend our debt maturities and improve our cost of debt capital.
"During our September investor conference, we outlined our plans for the
next couple of years as we finish the process of becoming a leading
high-barrier, CBD-focused REIT while also unlocking the intrinsic value
of our assets," said Nelson Mills, president and chief executive officer
of Columbia Property Trust. “We are pleased to report that we have
already completed several of the initial tasks set forth in September.
During the third quarter, we sold our non-core assets in Newark, Denver
and Suburban Maryland, allowing us to exit those markets and bringing us
to $551 million in dispositions in 2016. These transactions keep us on
track to achieve our targeted range of $700 million to $1 billion in
total dispositions for the year. Thanks to our experienced local teams,
we are also continuing to build leasing momentum in our largest markets
- New York, San Francisco and Washington, D.C."
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(1)
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Non-GAAP financial measure. See Definitions and reconciliation
between GAAP and non-GAAP financial measures or additional
information, including the specific reasons why we provide these
non-GAAP financial measures.
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Portfolio Highlights:
During the third quarter, we entered into leases for an aggregate of
149,000 rentable square feet. Our third quarter leasing activity
included 36,000 square feet of new leases, with an average lease term of
approximately eight years, and 113,000 square feet of renewal leases,
with an average lease term of approximately six years.
As of September 30, 2016, excluding the 9127 South Jamaica Street
building, which was sold on October 12, 2016, our portfolio of 23 office
properties was 90.7% leased and 86.7% occupied compared with 93.3%
leased and 91.7% occupied as of September 30, 2015, and 90.6% leased and
86.8% occupied as of June 30, 2016. The year-over-year declines are due
to the timing of our current year leasing activity. In the second
quarter, we terminated the Jones Day lease at 222 East 41st
Street and executed a full-building lease with NYU Langone Medical,
which commenced in the fourth quarter.
For leases executed during the quarter, we experienced a 26.3% increase
in rental rates on a GAAP Rent basis and an 18.3% increase in rental
rates on a cash rent basis.
Financing Activity:
We issued $350 million in ten-year, unsecured 3.650% senior notes in
August 2016 at 99.626% of face value. The proceeds from these notes were
used to repay $250 million of 5.875% senior notes, with an original
maturity date of April 1, 2018, and the related $17.9 million make-whole
payment, and to pay down borrowings on our revolving credit facility.
Disposition Activity:
Since the beginning of the third quarter, we completed the following
dispositions, bringing us to $551 million completed to date in 2016:
-
800 North Frederick Avenue in suburban Maryland for gross proceeds of
$48 million;
-
80 Park Plaza in Newark for gross proceeds of $174.5 million; and
-
South Jamaica Street in Denver for gross proceeds of $141.5 million in
two separate transactions.
We are under contract to sell the 1.3 million-square-foot Key Center
Tower and the 400-room Key Center Marriott in Cleveland, and we continue
marketing efforts for the 267,000-square-foot SanTan Corporate Center in
Phoenix and the 310,000-square-foot Sterling Commerce property in
Dallas. Depending on timing, we expect these dispositions, plus those
already closed this year, to generate aggregate gross proceeds within
the target range of $700 million to $1 billion.
Financial Results:
Net Income Attributable to Common Stockholders was $36.9 million, or
$0.30 per diluted share, for the third quarter of 2016, compared with
$20.1 million, or $0.16 per diluted share, for the third quarter of
2015. The year-over-year change is primarily due to disposition activity
and debt refinancings.
We experienced year-over-year declines in NFFO, AFFO, Net Operating
Income ("NOI") and Same Store NOI due to the current year leasing
activity at 222 East 41st Street and property sales. In the
second quarter, we terminated the Jones Day lease, the property’s
majority tenant, to prepare for a full-building lease with NYU Langone
Medical, which commenced in October. In lieu of rent for the third
quarter, we collected a lease termination fee of $6.2 million from Jones
Day in the second quarter.
NFFO was $46.2 million, or $0.37 per diluted share, for the third
quarter of 2016, compared with $58.1 million, or $0.47 per diluted
share, in the prior-year period. If the $6.2 million lease termination
fee from Jones Day had been paid in the third quarter under its original
lease term, NFFO would have been $52.4 million for the third quarter of
2016. The remaining $5.7 million decrease in NFFO is due to property
sales.
Cash flows from operations were $60.3 million for the third quarter of
2016, compared with $66.0 million in the prior-year period. AFFO(1)
was $30.3 million for the third quarter of 2016, compared with $43.7
million in the prior-year period. If the $6.2 million lease termination
fee from Jones Day had been paid in the third quarter under its original
lease term, AFFO would have been $36.5 million for the third quarter of
2016. The remaining $7.2 million decrease in AFFO is due to property
sales.
NOI(1) for the third quarter of 2016 decreased 16.7% based on
GAAP rents and 16.8% based on cash rents compared with the prior-year
period. Same store NOI(1) for the third quarter of 2016
decreased 9.9% based on GAAP rents and 7.9% based on cash rents compared
with the prior year period. If the $6.2 million lease termination fee
from Jones Day had been paid in the third quarter under its original
lease term, NOI for the third quarter of 2016 would have
decreased by 9.4% based on GAAP rents and by 8.9% based on cash rents
compared with the prior-year period, primarily due to property sales;
and Same store NOI for the third quarter of 2016 would have been stable
based on GAAP rents and increased 2.6% based on cash rents compared with
the prior year period.
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(1)
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Non-GAAP financial measure. See Definitions and reconciliation
between GAAP and non-GAAP financial measures or additional
information, including the specific reasons why we provide these
non-GAAP financial measures.
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Distributions:
For the third quarter of 2016, we paid a dividend of $37.0 million,
which was $0.30 per share, or an annualized rate of $1.20 per share. The
dividend was paid on September 15, 2016, to stockholders of record as of
September 1, 2016.
Guidance for 2016:
For the year ending December 31, 2016, the Company raised its guidance
range for Normalized FFO to $1.62 to $1.64 per diluted share, and its
guidance range for Net Income to $0.50 to $0.52 per diluted share.
A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO per
diluted share is provided as follows:
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Full Year
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2016 Range
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Low
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High
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Net income
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$
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0.50
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$
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0.52
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Real estate depreciation & amortization
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1.38
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1.38
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Gain on sale of real estate assets
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(0.41
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)
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(0.41
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)
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FFO
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1.47
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1.49
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Loss on early extinguishment of debt
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0.15
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0.15
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Normalized FFO
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$
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1.62
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$
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1.64
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Our guidance for 2016 is based on the following assumptions for our
portfolio:
-
Leased percentage at year end 2016 of 90% to 92%
-
GAAP straight-line rental income of $20 million to $23 million
-
G&A of $32 million to $34 million
-
Dispositions of $700 million to $1 billion ($551 million sold to date)
-
Assumes no acquisitions before year end
-
Weighted average diluted share count of 123.5 million (excludes impact
of potential share repurchases after October 27, 2016)
Jim Fleming, Executive Vice President and Chief Financial Officer,
added, "The high demand and attractive pricing we achieved on the bonds
we issued in the third quarter provides additional validation of our
overall strategy, as we have maintained a strong balance sheet while
making steady progress in transforming the company. The pricing of these
bonds, as well as the way they have traded since issuance, points to a
substantially lower cost of debt capital as we move our company forward.
With the dispositions completed to date, and the timing of certain
leasing and other dispositions, we have been able to raise our guidance
for 2016."
Our guidance reflects 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 November 4, 2016, by dialing
(877) 344-7529 and entering the confirmation number, 10092869.
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 Columbia.REIT.
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 23 office properties containing 11.2 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 Columbia.REIT.
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 items that are not
reflective of our core operations, 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 Cash Flow from Operations to exclude (i) changes in assets and
liabilities resulting from timing differences (ii) additional
amortization of lease assets (liabilities), (iii) straight-line rental
income, (iv) gain (loss) on interest rate swaps, (v) recurring capital
expenditures, and adding back (vi) stock based compensation expense and
(vii) non-cash interest expense. Because AFFO adjusts for income and
expenses that we believe are not reflective of our core operations, 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 cash flows from
operating activities or net income.
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.
Net Operating Income (based on cash rents) - NOI - cash rents
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)
non-cash property operations, (v) straight-line rental income, and (vi)
net effect of above/(below) market amortization. The company uses this
measure to assess its operating results and believes it is important in
assessing operating performance. NOI - cash rents 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.
Net Operating Income (based on GAAP Rents) - NOI - GAAP rents
is defined as Adjusted EBITDA adjusted for (i) portfolio general and
administrative expense, (ii) interest rate swap valuation adjustments,
and (iii) interest expense associated with interest rates swaps. The
company uses this measure to assess its operating results and believes
it is important in assessing operating performance. NOI - GAAP rents 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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share amounts)
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(Unaudited)
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September 30,
2016
|
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December 31,
2015
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Assets:
|
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Real estate assets, at cost:
|
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Land
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|
$
|
787,456
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|
|
|
$
|
896,467
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|
Buildings and improvements, less accumulated depreciation of
$500,583 and $613,639, as of September 30, 2016 and December 31,
2015, respectively
|
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2,371,273
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|
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|
2,897,431
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|
|
Intangible lease assets, less accumulated amortization of $141,451
and $250,085, as of September 30, 2016 and December 31, 2015,
respectively
|
|
|
204,200
|
|
|
|
259,136
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Construction in progress
|
|
|
28,888
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|
|
|
31,847
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|
Real estate assets held for sale, less accumulated depreciation and
amortization of $111,425 as of September 30, 2016
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238,876
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|
|
|
—
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Total real estate assets
|
|
|
3,630,693
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|
|
4,084,881
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Investment in unconsolidated joint venture
|
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|
125,605
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|
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|
118,695
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|
Cash and cash equivalents
|
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|
190,856
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32,645
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|
Tenant receivables, net of allowance for doubtful accounts of $35
and $8 as of September 30, 2016 and December 31, 2015, respectively
|
|
|
6,366
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|
|
|
11,670
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|
|
Straight-line rent receivable
|
|
|
70,186
|
|
|
|
109,062
|
|
|
Prepaid expenses and other assets
|
|
|
24,885
|
|
|
|
35,848
|
|
|
Intangible lease origination costs, less accumulated amortization of
$81,735 and $181,482, as of September 30, 2016 and December 31,
2015, respectively
|
|
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58,645
|
|
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|
77,190
|
|
|
Deferred lease costs, less accumulated amortization of $33,729 and
$40,817, as of September 30, 2016 and December 31, 2015,
respectively
|
|
|
60,383
|
|
|
|
88,127
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|
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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 $23,125
as of September 30, 2016
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32,306
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|
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|
—
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Total assets
|
|
|
$
|
4,319,925
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$
|
4,678,118
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Liabilities:
|
|
|
|
|
|
|
|
Line of credit and notes payable, net of unamortized deferred
financing costs of $3,406 and $4,492, as of September 30, 2016 and
December 31, 2015, respectively
|
|
|
$
|
821,586
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|
|
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$
|
1,130,571
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Bonds payable, net of discounts of $1,709 and $1,020 and unamortized
deferred financing costs of $5,528 and $3,721, as of September 30,
2016 and December 31, 2015, respectively
|
|
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692,763
|
|
|
|
595,259
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|
Accounts payable, accrued expenses, and accrued capital expenditures
|
|
|
81,617
|
|
|
|
98,759
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|
|
Dividends payable
|
|
|
—
|
|
|
|
37,354
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|
|
Deferred income
|
|
|
20,411
|
|
|
|
24,814
|
|
|
Intangible lease liabilities, less accumulated amortization of
$46,480 and $81,496, as of September 30, 2016 and December 31,
2015, respectively
|
|
|
36,239
|
|
|
|
57,167
|
|
|
Obligations under capital leases
|
|
|
120,000
|
|
|
|
120,000
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|
|
Liabilities held for sale, less accumulated amortization $1,210 as
of September 30, 2016
|
|
|
15,644
|
|
|
|
—
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Total liabilities
|
|
|
1,788,260
|
|
|
|
2,063,924
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|
|
Commitments and Contingencies
|
|
|
—
|
|
|
|
—
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Equity:
|
|
|
|
|
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|
Common stock, $0.01 par value, 225,000,000 shares authorized,
123,471,082 and 124,363,073 shares issued and outstanding as of
September 30, 2016 and December 31, 2015, respectively
|
|
|
1,234
|
|
|
|
1,243
|
|
|
Additional paid-in capital
|
|
|
4,565,651
|
|
|
|
4,588,303
|
|
|
Cumulative distributions in excess of earnings
|
|
|
(2,027,155
|
)
|
|
|
(1,972,916
|
)
|
|
Cumulative other comprehensive loss
|
|
|
(8,065
|
)
|
|
|
(2,436
|
)
|
|
Total equity
|
|
|
2,531,665
|
|
|
|
2,614,194
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|
|
Total liabilities and equity
|
|
|
$
|
4,319,925
|
|
|
|
$
|
4,678,118
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|
|
|
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|
|
|
|
|
|
|
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COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
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(Unaudited)
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Three Months Ended
September 30,
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2016
|
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
|
|
Rental income
|
|
|
$
|
87,561
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|
|
|
$
|
107,011
|
|
|
Tenant reimbursements
|
|
|
17,090
|
|
|
|
22,627
|
|
|
Hotel income
|
|
|
6,270
|
|
|
|
6,941
|
|
|
Other property income
|
|
|
2,345
|
|
|
|
1,140
|
|
|
|
|
|
113,266
|
|
|
|
137,719
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Property operating costs
|
|
|
39,101
|
|
|
|
46,538
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Hotel operating costs
|
|
|
4,946
|
|
|
|
5,331
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|
|
Asset and property management fees
|
|
|
387
|
|
|
|
472
|
|
|
Depreciation
|
|
|
26,778
|
|
|
|
32,441
|
|
|
Amortization
|
|
|
11,895
|
|
|
|
20,276
|
|
|
General and administrative
|
|
|
7,467
|
|
|
|
6,797
|
|
|
Acquisition expenses
|
|
|
—
|
|
|
|
1,680
|
|
|
|
|
|
90,574
|
|
|
|
113,535
|
|
|
Real estate operating income
|
|
|
22,692
|
|
|
|
24,184
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(17,138
|
)
|
|
|
(22,012
|
)
|
|
Interest and other income
|
|
|
1,839
|
|
|
|
1,808
|
|
|
Loss on interest rate swaps
|
|
|
—
|
|
|
|
(1,102
|
)
|
|
Loss on early extinguishment of debt
|
|
|
(18,905
|
)
|
|
|
(2,672
|
)
|
|
|
|
|
(34,204
|
)
|
|
|
(23,978
|
)
|
|
Income (loss) before income taxes, unconsolidated joint venture,
and gains on sales of real estate
|
|
|
(11,512
|
)
|
|
|
206
|
|
|
Income tax expense
|
|
|
(65
|
)
|
|
|
(245
|
)
|
|
Loss from unconsolidated joint venture
|
|
|
(1,937
|
)
|
|
|
—
|
|
|
Loss before gains on sales of real estate
|
|
|
(13,514
|
)
|
|
|
(39
|
)
|
|
Gains on sales of real estate
|
|
|
50,412
|
|
|
|
20,182
|
|
|
Net income
|
|
|
$
|
36,898
|
|
|
|
$
|
20,143
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.30
|
|
|
|
$
|
0.16
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
123,215
|
|
|
|
124,359
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.30
|
|
|
|
$
|
0.16
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
123,350
|
|
|
|
124,460
|
|
|
Dividends per share
|
|
|
$
|
0.30
|
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
FUNDS FROM OPERATIONS AND NORMALIZED FUNDS FROM OPERATIONS
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Funds From Operations and
Normalized Funds From Operations:
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
36,898
|
|
|
|
$
|
20,143
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
26,778
|
|
|
|
32,441
|
|
|
Amortization
|
|
|
11,895
|
|
|
|
20,276
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
2,123
|
|
|
|
—
|
|
|
Gains on sales of real estate assets
|
|
|
(50,412
|
)
|
|
|
(20,182
|
)
|
|
FFO
|
|
|
27,282
|
|
|
|
52,678
|
|
|
Real estate acquisition-related costs
|
|
|
—
|
|
|
|
1,680
|
|
|
Settlement of interest rate swap
|
|
|
—
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
18,905
|
|
|
|
2,672
|
|
|
Normalized FFO
|
|
|
46,187
|
|
|
|
58,132
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.22
|
|
|
|
$
|
0.42
|
|
|
Normalized FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.47
|
|
|
Weighted-average shares outstanding - basic
|
|
|
123,215
|
|
|
|
124,359
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.22
|
|
|
|
$
|
0.42
|
|
|
Normalized FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.47
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
123,350
|
|
|
|
124,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
ADJUSTED FUNDS FROM OPERATIONS
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Cash Flows from Operations to Adjusted Funds
From Operations:
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
$
|
60,266
|
|
|
|
$
|
66,041
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Straight-line lease terminations income
|
|
|
(5,742
|
)
|
|
|
460
|
|
|
Adjustments included in loss from unconsolidated joint ventures
|
|
|
(559
|
)
|
|
|
—
|
|
|
Net changes in operating assets and liabilities
|
|
|
(12,039
|
)
|
|
|
(15,359
|
)
|
|
Acquisition costs
|
|
|
—
|
|
|
|
1,680
|
|
|
Maintenance capital(1)(2)
|
|
|
(11,637
|
)
|
|
|
(9,140
|
)
|
|
Adjusted FFO
|
|
|
$
|
30,289
|
|
|
|
$
|
43,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Maintenance capital is defined as Capital expenditures incurred to
maintain the building structure and functionality, and to lease
space at our properties in their current condition. Maintenance
capital excludes capital for recent acquisitions and first
generation leasing.
|
|
|
|
|
(2)
|
Reflects 51% of the capital expenditures of the Market Square Joint
Venture, in which Columbia Property Trust owns a 51% interest.
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME AND SAME STORE NET OPERATING INCOME (BASED
ON GAAP RENTS)
(in thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income (based on
GAAP rents) and Same Store Net Operating Income (based on GAAP
rents):
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
36,898
|
|
|
|
$
|
20,143
|
|
|
Net interest expense
|
|
|
17,116
|
|
|
|
22,004
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax expense
|
|
|
65
|
|
|
|
245
|
|
|
Depreciation
|
|
|
26,778
|
|
|
|
32,441
|
|
|
Amortization
|
|
|
11,895
|
|
|
|
20,276
|
|
|
Adjustments include in loss from unconsolidated joint venture
|
|
|
4,234
|
|
|
|
—
|
|
|
EBITDA
|
|
|
$
|
95,186
|
|
|
|
$
|
93,309
|
|
|
Real estate acquisition-related costs
|
|
|
—
|
|
|
|
1,680
|
|
|
Settlement of interest rate swap
|
|
|
—
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
18,905
|
|
|
|
2,672
|
|
|
Gains on sales of real estate
|
|
|
(50,412
|
)
|
|
|
(20,182
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
63,679
|
|
|
|
$
|
78,581
|
|
|
General and administrative
|
|
|
7,467
|
|
|
|
6,797
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
5
|
|
|
|
—
|
|
|
Net Operating Income (based on GAAP rents) - consolidated
|
|
|
$
|
71,151
|
|
|
|
$
|
85,378
|
|
|
Same Store NOI (based on GAAP rents) - 51% of Market Square Buildings(1)
|
|
|
(2,301
|
)
|
|
|
(2,948
|
)
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(6,909
|
)
|
|
|
(4,330
|
)
|
|
Dispositions(3)
|
|
|
(5,143
|
)
|
|
|
(15,070
|
)
|
|
Same Store NOI (based on GAAP rents) - wholly-owned
properties(4)
|
|
|
$
|
56,798
|
|
|
|
$
|
63,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reflects NOI from 51% of the Market Square Buildings for all periods
presented. On October 28, 2015, we transferred the Market Square
Buildings and the $325.0 million mortgage note to a joint venture,
and sold a 49% interest in the joint venture. Our interest in NOI
from the Market Square Buildings is included in loss from
unconsolidated joint venture for the third quarter of 2016, and in
our consolidated results of operations for the third quarter of 2015.
|
|
|
|
(2)
|
Reflects activity for the following property acquired since July 1,
2015, for all periods presented: 229 West 43rd Street.
|
|
|
|
(3)
|
Reflects activity for the following properties sold since July 1,
2015, for all periods presented: 80 Park Plaza, 9189, 9191 & 9193
South Jamaica Street, 800 North Frederick,100 East Pratt, 1881
Campus Commons, 49% of the Market Square Buildings, 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)
|
Reflects NOI from properties that were wholly-owned for the entirety
of the periods presented.
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
NET OPERATING INCOME AND SAME STORE NET OPERATING INCOME (BASED
ON CASH RENTS)
(in thousands)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income (based on
cash rents) and Same Store Net Operating Income (based on cash
rents):
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
36,898
|
|
|
|
$
|
20,143
|
|
|
Interest expense, net
|
|
|
17,116
|
|
|
|
22,004
|
|
|
Interest income from development authority bonds
|
|
|
(1,800
|
)
|
|
|
(1,800
|
)
|
|
Income tax expense
|
|
|
65
|
|
|
|
245
|
|
|
Depreciation
|
|
|
26,778
|
|
|
|
32,441
|
|
|
Amortization
|
|
|
11,895
|
|
|
|
20,276
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
4,234
|
|
|
|
—
|
|
|
EBITDA
|
|
|
$
|
95,186
|
|
|
|
$
|
93,309
|
|
|
Real estate acquisition-related costs
|
|
|
—
|
|
|
|
1,680
|
|
|
Settlement of interest rate swap
|
|
|
—
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
18,905
|
|
|
|
2,672
|
|
|
Gains on sales of real estate
|
|
|
(50,412
|
)
|
|
|
(20,182
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
63,679
|
|
|
|
$
|
78,581
|
|
|
General and administrative
|
|
|
7,467
|
|
|
|
6,797
|
|
|
Straight-line rental income
|
|
|
(4,823
|
)
|
|
|
(4,957
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
(682
|
)
|
|
|
(2,401
|
)
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
(746
|
)
|
|
|
—
|
|
|
Net operating income (based on cash rents) - consolidated
|
|
|
$
|
64,895
|
|
|
|
$
|
78,020
|
|
|
Same Store NOI (based on cash rents) - 51% of Market Square Buildings(1)
|
|
|
(1,550
|
)
|
|
|
(2,455
|
)
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
(6,465
|
)
|
|
|
(3,188
|
)
|
|
Dispositions(3)
|
|
|
(2,591
|
)
|
|
|
(13,406
|
)
|
|
Same store NOI (based on cash rents) - wholly-owned
properties(4)
|
|
|
$
|
54,289
|
|
|
|
$
|
58,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Reflects NOI from 51% of the Market Square Buildings for all periods
presented. On October 28, 2015, we transferred the Market Square
Buildings and the $325.0 million mortgage note to a joint venture,
and sold a 49% interest in the joint venture. Our interest in NOI
from the Market Square Buildings is included in loss from
unconsolidated joint venture for the third quarter of 2016, and in
our consolidated results of operations for the third quarter of 2015.
|
|
|
|
(2)
|
Reflects activity for the following property acquired since July 1,
2015, for all periods presented: 229 West 43rd Street.
|
|
|
|
(3)
|
Reflects activity for the following properties sold since July 1,
2015, for all periods presented: 80 Park Plaza, 9189, 9191 & 9193
South Jamaica Street, 800 North Frederick,100 East Pratt, 1881
Campus Commons, 49% of the Market Square Buildings, 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)
|
Reflects NOI from properties that were wholly-owned for the entirety
of the periods presented.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006707/en/
For Columbia Property Trust, Inc.
Media Contact:
Bud
Perrone, 212-843-8068
bperrone@rubenstein.com
or
Investor
Relations:
Matt Stover, 404-465-2227
IR@columbia.reit
Source: Columbia Property Trust, Inc.