ATLANTA--(BUSINESS WIRE)--
Columbia
Property Trust, Inc. (NYSE: CXP) reported financial results today
for the fourth quarter and year ended December 31, 2016.
Highlights:
-
For the fourth quarter of 2016, net income per diluted share was $0.22
and Normalized Funds from Operations (FFO)(1) per diluted
share was $0.37. Cash flows from operations were $43.4 million and
Adjusted Funds from Operations (AFFO)(1) was $(43.0)
million, due to previously disclosed maintenance capital costs
incurred in the quarter.
-
In the fourth quarter of 2016, the Company continued its non-core
disposition program, exiting the Dallas, Denver, and Phoenix markets,
resulting in total dispositions of $660.5 million in 2016.
-
In January 2017, the Company exited the Houston and Cleveland markets,
resulting in total dispositions of $539.5 million.
-
The Board of Directors revised the Company’s dividend policy,
effective in the first quarter of 2017, and declared a regular
quarterly cash dividend of $0.20 per share, or $0.80 per share on an
annualized basis.
-
The Company issued guidance that reflects an expected increase in net
income, FFO and AFFO beginning in the second half of 2017 and
continuing into 2018.
“With $1.2 billion of dispositions completed over the last 12 months, we
have successfully concluded our ambitious program of planned
dispositions, which was necessary to achieve our desired
transformation. Our portfolio is now concentrated in our desired
high-barrier markets,” noted Nelson Mills, president and chief executive
officer of Columbia Property Trust.
Mr. Mills added, “The benefits of our strategy are coming to fruition,
and the Company is well-positioned for sustainable, long-term growth and
value creation. The strength of our portfolio - reflected in positive
leasing spreads, strong occupancy and leasing momentum - positions
Columbia Property Trust for cash flow growth. We will continue to take a
disciplined approach to seeking new investments to leverage our scale
and competitive edge in our core markets.”
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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 fourth quarter, we entered into leases for an aggregate of
261,000 rentable square feet. Our fourth quarter leasing activity
included 228,000 square feet of new leases, with an average lease term
of approximately 12 years, and 33,000 square feet of renewal leases,
with an average lease term of approximately five years.
As of December 31, 2016, our portfolio of 21 office properties was 90.6%
leased and 89.2% occupied compared with 93.2% leased and 91.6% occupied
as of December 31, 2015, and 90.7% leased and 86.7% occupied as of
September 30, 2016.
For leases executed during the quarter, we experienced a 17.0% increase
in rental rates based on GAAP rents and a 4.5% increase in rental rates
based on cash rents.
Disposition Activity:
Prior to year end 2016, we completed the dispositions of: 9127 South
Jamaica Street in Denver, Colorado for gross proceeds of $19.5 million;
Sterling Commerce in Dallas, Texas for gross proceeds of $51.0 million;
and SanTan Corporate Center in Phoenix, Arizona for gross proceeds of
$58.5 million, bringing total disposition proceeds to $660.5 million for
2016. These sales resulted in the complete exit of all three markets.
In January 2017, we exited Houston with the sale of 5 Houston Center,
Energy Center I and 515 Post Oak, for $272.0 million; and exited
Cleveland with the sale of Key Center Tower and Key Center Marriott in
Cleveland for $267.5 million.
Financial Results:
Net income was $27.4 million, or $0.22 per diluted share, for the fourth
quarter of 2016, compared with $10.2 million, or $0.08 per diluted
share, in the prior-year period. For the full year 2016, net income was
$84.3 million, or $0.68 per diluted share, compared with $44.6 million,
or $0.36 per diluted share, in prior year.
Normalized FFO(1) was $45.2 million, or $0.37 per diluted
share, for the fourth quarter of 2016, compared with $59.2 million, or
$0.48 per diluted share, in the prior-year period. For the full year
2016, Normalized FFO was $205.0 million, or $1.66 per diluted share,
compared with $248.9 million, or $1.99 per diluted share, in the prior
year.
Cash flows from operations were $43.4 million for the fourth quarter of
2016, compared with $48.1 million in the prior-year period. For the full
year 2016, cash flows from operations were $193.1 million, compared with
$223.1 million for 2015. For the full year 2016, AFFO(1) was
negative $43.0 million for the fourth quarter of 2016, compared with
$33.8 million in the prior-year period. AFFO(1) was $74.7
million for 2016, compared with $169.5 million in the prior year. The
decrease in 2016 was primarily due to maintenance capital expenditures
related to our recently signed lease with NYU Medical at our 222 East
42st Street Building.
For the fourth quarter of 2016, NOI decreased 19.9% based on GAAP rents
and 22.7% based on cash rents compared with the prior-year period,
primarily due to dispositions in 2016. Same store NOI(1) for
the fourth quarter of 2016 decreased 6.3% based on GAAP rents and 9.3%
based on cash rents, primarily due to decreased occupancy at our
existing properties and new leases in free rent periods.
For the full year 2016, NOI decreased 14.0% based on GAAP rents and
15.1% based on cash rents compared with the prior year, primarily due to
dispositions. Same store NOI(1) for 2016 decreased 0.9% based
on GAAP rents and 0.2% based on cash rents.
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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 fourth 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
January 5, 2017, to stockholders of record as of December 1, 2016.
In a separate release issued today, Columbia announced that its Board of
Directors has revised the Company’s dividend policy and declared a
regular quarterly cash dividend of $0.20 per share, or $0.80 per share
on an annualized basis, for the first quarter of 2017.
Share Repurchases:
During 2016 we continued to execute on our $200 million share repurchase
program. In the fourth quarter of 2016 we repurchased 1.3 million shares
for $27.8 million, or a weighted average price of $21.46 per share.
Since the inception of the program in September 2015, we have acquired
3.1 million shares for a total of $69.1 million.
Guidance for 2017:
For the year ending December 31, 2017, the Company expects to report
Normalized FFO in a range of $1.15 to $1.22 per diluted share, and Net
Income in the range of $0.18 to $0.25 per diluted share.
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A reconciliation of projected Net Income Available to Common
Stockholders per diluted share to projected FFO and Normalized FFO
per diluted share is provided as follows:
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Full Year
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2017 Range
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Low
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High
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Net income
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$
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0.18
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$
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0.25
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Add: Real estate depreciation & amortization
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0.97
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0.97
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FFO
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1.15
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1.22
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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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1.15
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$
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1.22
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Our guidance for 2017 is based on the following assumptions for our
portfolio:
-
Leased percentage at year end 2017 of 93% to 95%
-
GAAP straight-line rental income of $35 million to $40 million
-
G&A of $35 million to $37 million
-
$539.5 million of properties were sold in January 2017. Assumes no
further dispositions except for the transfer of the 263 Shuman
Boulevard property to the lender in settlement of the $49.0 million
mortgage note.
-
Acquisitions of $500 million
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Weighted average diluted share count of 123.2 million (excludes impact
of share repurchases after February 9, 2017)
Jim Fleming, Executive Vice President and Chief Financial Officer,
added, “The company is well positioned with a strong and healthy balance
sheet and greater scale in our high-barrier markets. Our guidance for
2017 reflects our plan to deploy the proceeds from recent dispositions
into new opportunities in our core markets, and to reduce our secured
debt, while continuing to realize the benefits of sustained leasing
volumes and positive re-leasing spreads over the past several quarters.
As we move forward, we expect these elements to come together and result
in increasing cash flows and same-store NOI growth.”
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 Thursday, February 9, 2017, at 5:00 p.m. ET
to discuss quarterly financial results, business highlights, and 2017
guidance. The number to call for this interactive teleconference is
(412) 542-4180. A replay of the conference call will be available
through February 16, 2017, by dialing (877) 344-7529 and entering the
confirmation number, 10099132.
The live audio webcast of the Company’s quarterly conference call will
be available online in the Investor
Relations section of the Company’s website at www.columbia.reit.
The online replay will be available 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 primarily in high-barrier-to-entry, primary markets. Our
portfolio includes 16 office properties containing eight million square
feet, concentrated in New York, San Francisco, Atlanta, and Washington,
D.C. Columbia carries an investment-grade rating from both Moody’s and
Standard & Poor’s. For more information, please visit www.columbia.reit.
Definitions:
Funds From Operations (“FFO”) - 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.
Same Store Net Operating Income (“Same Store NOI”) - Same
Store NOI is calculated as the NOI attributable to the properties
continuously owned and operating for the entirety of the reporting
periods presented. We believe Same Store NOI is an important measure of
comparison of our stabilized properties’ operating performance. Other
REITs may calculate Same Store NOI differently and our calculation
should not be compared to that of other REITs.
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, 2016 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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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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$
|
751,351
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|
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|
$
|
896,467
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|
|
Buildings and improvements, less accumulated depreciation of
$435,457 and $613,639, as of December 31, 2016 and 2015, respectively
|
|
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|
2,121,150
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|
|
|
|
2,897,431
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|
|
Intangible lease assets, less accumulated amortization of $112,777
and $250,085, as of December 31, 2016 and 2015, respectively
|
|
|
|
193,311
|
|
|
|
|
259,136
|
|
|
Construction in progress
|
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|
36,188
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|
|
|
|
31,847
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|
|
Real estate assets held for sale, less accumulated depreciation and
amortization of $180,791 as of December 31, 2016
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412,506
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|
|
—
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Total real estate assets
|
|
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|
3,514,506
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|
|
|
|
4,084,881
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|
|
Investment in unconsolidated joint venture
|
|
|
|
127,346
|
|
|
|
|
118,695
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|
Cash and cash equivalents
|
|
|
|
216,085
|
|
|
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|
32,645
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|
|
Tenant receivables, net of allowance for doubtful accounts of $31
and $8, as of December 31, 2016 and 2015, respectively
|
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|
7,163
|
|
|
|
|
11,670
|
|
|
Straight-line rent receivable
|
|
|
|
64,811
|
|
|
|
|
109,062
|
|
|
Prepaid expenses and other assets
|
|
|
|
24,275
|
|
|
|
|
35,848
|
|
|
Intangible lease origination costs, less accumulated amortization of
$74,578 and $181,482, as of December 31, 2016 and 2015, respectively
|
|
|
|
54,279
|
|
|
|
|
77,190
|
|
|
Deferred lease costs, less accumulated amortization of $22,753 and
$40,817, as of December 31, 2016 and 2015, respectively
|
|
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|
125,799
|
|
|
|
|
88,127
|
|
|
Investment in development authority bonds
|
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|
|
120,000
|
|
|
|
|
120,000
|
|
|
Other assets held for sale, less accumulated amortization of $34,152
as of December 31, 2016
|
|
|
|
45,529
|
|
|
|
|
—
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Total assets
|
|
|
$
|
4,299,793
|
|
|
|
$
|
4,678,118
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|
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Liabilities:
|
|
|
|
|
|
|
|
Line of credit and notes payable, net of deferred financing costs of
$3,136 and $4,492, as of December 31, 2016 and 2015, respectively
|
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|
$
|
721,466
|
|
|
|
$
|
1,130,571
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Bonds payable, net of discount of $1,664 and $1,020 and deferred
financing costs of $5,364 and $3,721, as of December 31, 2016 and
2015, respectively
|
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692,972
|
|
|
|
|
595,259
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|
|
Accounts payable, accrued expenses, and accrued capital expenditures
|
|
|
|
131,028
|
|
|
|
|
98,759
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|
|
Dividends payable
|
|
|
|
36,727
|
|
|
|
|
37,354
|
|
|
Deferred income
|
|
|
|
19,694
|
|
|
|
|
24,814
|
|
|
Intangible lease liabilities, less accumulated amortization of
$44,564 and $81,496, as of December 31, 2016 and 2015, respectively
|
|
|
|
33,375
|
|
|
|
|
57,167
|
|
|
Obligations under capital leases
|
|
|
|
120,000
|
|
|
|
|
120,000
|
|
|
Liabilities held for sale, less accumulated amortization of $1,239
as of December 31, 2016
|
|
|
|
41,763
|
|
|
|
|
—
|
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|
Total liabilities
|
|
|
|
1,797,025
|
|
|
|
|
2,063,924
|
|
|
Commitments and Contingencies
|
|
|
|
—
|
|
|
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—
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|
Equity:
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 225,000,000 shares authorized,
122,184,193 and 124,363,073 shares issued and outstanding as of
December 31, 2016 and 2015, respectively
|
|
|
|
1,221
|
|
|
|
|
1,243
|
|
|
Additional paid-in capital
|
|
|
|
4,538,912
|
|
|
|
|
4,588,303
|
|
|
Cumulative distributions in excess of earnings
|
|
|
|
(2,036,482
|
)
|
|
|
|
(1,972,916
|
)
|
|
Accumulated other comprehensive loss
|
|
|
|
(883
|
)
|
|
|
|
(2,436
|
)
|
|
Total equity
|
|
|
|
2,502,768
|
|
|
|
|
2,614,194
|
|
|
Total liabilities and equity
|
|
|
$
|
4,299,793
|
|
|
|
$
|
4,678,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per-share
amounts)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental income
|
|
|
$
|
85,472
|
|
|
|
$
|
103,312
|
|
|
|
$
|
366,186
|
|
|
|
$
|
436,048
|
|
|
Tenant reimbursements
|
|
|
|
14,219
|
|
|
|
|
22,260
|
|
|
|
|
69,770
|
|
|
|
|
99,655
|
|
|
Hotel income
|
|
|
|
5,177
|
|
|
|
|
5,411
|
|
|
|
|
22,661
|
|
|
|
|
24,309
|
|
|
Other property income
|
|
|
|
900
|
|
|
|
|
1,696
|
|
|
|
|
14,926
|
|
|
|
|
6,053
|
|
|
|
|
|
|
105,768
|
|
|
|
|
132,679
|
|
|
|
|
473,543
|
|
|
|
|
566,065
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating costs
|
|
|
|
34,289
|
|
|
|
|
43,703
|
|
|
|
|
154,968
|
|
|
|
|
188,078
|
|
|
Hotel operating costs
|
|
|
|
4,371
|
|
|
|
|
4,546
|
|
|
|
|
18,686
|
|
|
|
|
19,615
|
|
|
Asset and property management fees
|
|
|
|
357
|
|
|
|
|
444
|
|
|
|
|
1,415
|
|
|
|
|
1,816
|
|
|
Depreciation
|
|
|
|
24,026
|
|
|
|
|
31,229
|
|
|
|
|
108,543
|
|
|
|
|
131,490
|
|
|
Amortization
|
|
|
|
13,873
|
|
|
|
|
19,895
|
|
|
|
|
56,775
|
|
|
|
|
87,128
|
|
|
General and administrative
|
|
|
|
8,158
|
|
|
|
|
7,762
|
|
|
|
|
33,876
|
|
|
|
|
29,683
|
|
|
Acquisition expenses
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,675
|
|
|
|
|
|
|
85,074
|
|
|
|
|
107,579
|
|
|
|
|
374,263
|
|
|
|
|
461,485
|
|
|
Real estate operating income
|
|
|
|
20,694
|
|
|
|
|
25,100
|
|
|
|
|
99,280
|
|
|
|
|
104,580
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(15,194
|
)
|
|
|
|
(19,035
|
)
|
|
|
|
(67,609
|
)
|
|
|
|
(85,296
|
)
|
|
Interest and other income
|
|
|
|
1,836
|
|
|
|
|
1,806
|
|
|
|
|
7,288
|
|
|
|
|
7,254
|
|
|
Loss on interest rate swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,110
|
)
|
|
Loss on the early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(18,997
|
)
|
|
|
|
(3,149
|
)
|
|
|
|
|
|
(13,358
|
)
|
|
|
|
(17,229
|
)
|
|
|
|
(79,318
|
)
|
|
|
|
(82,301
|
)
|
|
Income before income tax, unconsolidated joint ventures, and
gains on sales of real estate assets
|
|
|
|
7,336
|
|
|
|
|
7,871
|
|
|
|
|
19,962
|
|
|
|
|
22,279
|
|
|
Income tax expense
|
|
|
|
(58
|
)
|
|
|
|
(238
|
)
|
|
|
|
(445
|
)
|
|
|
|
(378
|
)
|
|
Loss from unconsolidated joint venture
|
|
|
|
(2,120
|
)
|
|
|
|
(1,142
|
)
|
|
|
|
(7,561
|
)
|
|
|
|
(1,142
|
)
|
|
Income before gains of sales of real estate assets
|
|
|
|
5,158
|
|
|
|
|
6,491
|
|
|
|
|
11,956
|
|
|
|
|
20,759
|
|
|
Gains on sales of real estate assets
|
|
|
|
22,242
|
|
|
|
|
3,678
|
|
|
|
|
72,325
|
|
|
|
|
23,860
|
|
|
Net income
|
|
|
$
|
27,400
|
|
|
|
$
|
10,169
|
|
|
|
$
|
84,281
|
|
|
|
$
|
44,619
|
|
|
Per-share information – basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.22
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.36
|
|
|
Weighted-average common shares outstanding – basic
|
|
|
|
122,709
|
|
|
|
|
124,343
|
|
|
|
|
123,130
|
|
|
|
|
124,757
|
|
|
Per-share information – diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
0.22
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.36
|
|
|
Weighted-average common shares outstanding – diluted
|
|
|
|
122,855
|
|
|
|
|
124,466
|
|
|
|
|
123,228
|
|
|
|
|
124,847
|
|
|
Dividends per share
|
|
|
$
|
0.30
|
|
|
|
$
|
0.30
|
|
|
|
$
|
1.20
|
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
FUNDS FROM OPERATIONS
AND NORMALIZED FUNDS FROM OPERATIONS
(in thousands,
except per-share amounts, unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Funds From Operations and
Normalized Funds From Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,400
|
|
|
|
$
|
10,169
|
|
|
|
$
|
84,281
|
|
|
|
$
|
44,619
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of real estate assets
|
|
|
|
24,026
|
|
|
|
|
31,229
|
|
|
|
|
108,543
|
|
|
|
|
131,490
|
|
|
Amortization of lease-related costs
|
|
|
|
13,873
|
|
|
|
|
19,895
|
|
|
|
|
56,775
|
|
|
|
|
87,128
|
|
|
Depreciation and amortization included in loss from unconsolidated
joint venture
|
|
|
|
2,106
|
|
|
|
|
1,606
|
|
|
|
|
8,776
|
|
|
|
|
1,606
|
|
|
Gain on sale of real estate assets
|
|
|
|
(22,242
|
)
|
|
|
|
(3,678
|
)
|
|
|
|
(72,325
|
)
|
|
|
|
(23,860
|
)
|
|
FFO
|
|
|
|
45,163
|
|
|
|
|
59,221
|
|
|
|
|
186,050
|
|
|
|
|
240,983
|
|
|
Real estate acquisition-related costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,675
|
|
|
Settlement of interest rate swap
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
18,997
|
|
|
|
|
3,149
|
|
|
Normalized FFO
|
|
|
|
45,163
|
|
|
|
|
59,221
|
|
|
|
|
205,047
|
|
|
|
|
248,909
|
|
|
Per-share information - basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.51
|
|
|
|
$
|
1.93
|
|
|
Normalized FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.67
|
|
|
|
$
|
2.00
|
|
|
Weighted-average shares outstanding - basic
|
|
|
|
122,709
|
|
|
|
|
124,343
|
|
|
|
|
123,130
|
|
|
|
|
124,757
|
|
|
Per-share information - diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.51
|
|
|
|
$
|
1.93
|
|
|
Normalized FFO per share
|
|
|
$
|
0.37
|
|
|
|
$
|
0.48
|
|
|
|
$
|
1.66
|
|
|
|
$
|
1.99
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
|
122,855
|
|
|
|
|
124,466
|
|
|
|
|
123,228
|
|
|
|
|
124,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA PROPERTY TRUST, INC.
ADJUSTED FUNDS FROM
OPERATIONS
(in thousands, except per-share amounts,
unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Cash Flows from Operations to Adjusted Funds
From Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
$
|
43,387
|
|
|
|
$
|
48,101
|
|
|
|
$
|
193,091
|
|
|
|
$
|
223,080
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line lease terminations income
|
|
|
|
257
|
|
|
|
|
467
|
|
|
|
|
2,367
|
|
|
|
|
(949
|
)
|
|
Adjustments included in loss from unconsolidated joint ventures
|
|
|
|
(968
|
)
|
|
|
|
320
|
|
|
|
|
(1,248
|
)
|
|
|
|
320
|
|
|
Net changes in operating assets and liabilities
|
|
|
|
(3,397
|
)
|
|
|
|
5,369
|
|
|
|
|
(7,270
|
)
|
|
|
|
1,179
|
|
|
Acquisition costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,675
|
|
|
Maintenance capital(1)(2)
|
|
|
|
(82,311
|
)
|
|
|
|
(20,505
|
)
|
|
|
|
(112,194
|
)
|
|
|
|
(57,797
|
)
|
|
Adjusted FFO
|
|
|
$
|
(43,032
|
)
|
|
|
$
|
33,752
|
|
|
|
$
|
74,746
|
|
|
|
$
|
169,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income (based on
GAAP rents) and Same Store NOI (based on GAAP Rents):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,400
|
|
|
|
$
|
10,169
|
|
|
|
$
|
84,281
|
|
|
|
$
|
44,619
|
|
|
Net interest expense
|
|
|
|
15,158
|
|
|
|
|
19,030
|
|
|
|
|
67,538
|
|
|
|
|
85,265
|
|
|
Interest income from development authority bonds
|
|
|
|
(1,800
|
)
|
|
|
|
(1,800
|
)
|
|
|
|
(7,200
|
)
|
|
|
|
(7,200
|
)
|
|
Income tax expense
|
|
|
|
58
|
|
|
|
|
238
|
|
|
|
|
445
|
|
|
|
|
378
|
|
|
Depreciation
|
|
|
|
24,026
|
|
|
|
|
31,229
|
|
|
|
|
108,543
|
|
|
|
|
131,490
|
|
|
Amortization
|
|
|
|
13,873
|
|
|
|
|
19,895
|
|
|
|
|
56,775
|
|
|
|
|
87,128
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
|
4,216
|
|
|
|
|
3,079
|
|
|
|
|
17,213
|
|
|
|
|
3,079
|
|
|
EBITDA
|
|
|
$
|
82,931
|
|
|
|
$
|
81,840
|
|
|
|
$
|
327,595
|
|
|
|
$
|
344,759
|
|
|
Real estate acquisition costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,675
|
|
|
Settlement of interest rate swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
18,997
|
|
|
|
|
3,149
|
|
|
Gain on sale of real estate assets
|
|
|
|
(22,242
|
)
|
|
|
|
(3,678
|
)
|
|
|
|
(72,325
|
)
|
|
|
|
(23,860
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
60,689
|
|
|
|
$
|
78,162
|
|
|
|
$
|
274,267
|
|
|
|
$
|
328,825
|
|
|
General and administrative
|
|
|
|
8,158
|
|
|
|
|
7,762
|
|
|
|
|
33,876
|
|
|
|
|
29,683
|
|
|
Interest rate swap valuation adjustment
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(2,634
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,642
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
|
8
|
|
|
|
|
55
|
|
|
|
|
80
|
|
|
|
|
55
|
|
|
Net Operating Income (based on GAAP rents) - consolidated
|
|
|
$
|
68,855
|
|
|
|
$
|
85,979
|
|
|
|
$
|
308,223
|
|
|
|
$
|
358,571
|
|
|
Same Store NOI (based on GAAP rents) - 51% of Market Square Buildings(1)
|
|
|
|
(2,104
|
)
|
|
|
|
(2,908
|
)
|
|
|
|
(9,732
|
)
|
|
|
|
(14,021
|
)
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
|
(11,907
|
)
|
|
|
|
(11,759
|
)
|
|
|
|
(46,145
|
)
|
|
|
|
(31,189
|
)
|
|
Dispositions(3)
|
|
|
|
(1,224
|
)
|
|
|
|
(14,088
|
)
|
|
|
|
(27,319
|
)
|
|
|
|
(86,376
|
)
|
|
Same Store NOI (based on GAAP rents) - wholly-owned properties(4)
|
|
|
$
|
53,620
|
|
|
|
$
|
57,224
|
|
|
|
$
|
225,027
|
|
|
|
$
|
226,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects NOI for 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. Beginning on October
28, 2015, upon entering the joint venture, our interest in NOI from
the Market Square Buildings is included in loss from unconsolidated
joint venture on our income statement.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Reflects activity for the following properties acquired since
January 1, 2015: 229 West 43rd Street, 116 Huntington Avenue, and
315 Park Avenue South.
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Reflects activity for the following properties sold since January 1,
2015: SanTan Corporate Center, Sterling Commerce, 80 Park Plaza,
9127, 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
December 31,
|
|
|
Years Ended
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Reconciliation of Net Income to Net Operating Income (based on
cash rents) and Same Store NOI (based on cash rents):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
27,400
|
|
|
|
$
|
10,169
|
|
|
|
$
|
84,281
|
|
|
|
$
|
44,619
|
|
|
Net interest expense
|
|
|
|
15,158
|
|
|
|
|
19,030
|
|
|
|
|
67,538
|
|
|
|
|
85,265
|
|
|
Interest income from development authority bonds
|
|
|
|
(1,800
|
)
|
|
|
|
(1,800
|
)
|
|
|
|
(7,200
|
)
|
|
|
|
(7,200
|
)
|
|
Income tax expense
|
|
|
|
58
|
|
|
|
|
238
|
|
|
|
|
445
|
|
|
|
|
378
|
|
|
Depreciation
|
|
|
|
24,026
|
|
|
|
|
31,229
|
|
|
|
|
108,543
|
|
|
|
|
131,490
|
|
|
Amortization
|
|
|
|
13,873
|
|
|
|
|
19,895
|
|
|
|
|
56,775
|
|
|
|
|
87,128
|
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
|
4,216
|
|
|
|
|
3,079
|
|
|
|
|
17,213
|
|
|
|
|
3,079
|
|
|
EBITDA
|
|
|
$
|
82,931
|
|
|
|
$
|
81,840
|
|
|
|
$
|
327,595
|
|
|
|
$
|
344,759
|
|
|
Real estate acquisition costs
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
3,675
|
|
|
Settlement of interest rate swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,102
|
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
18,997
|
|
|
|
|
3,149
|
|
|
Gain on sale of real estate assets
|
|
|
|
(22,242
|
)
|
|
|
|
(3,678
|
)
|
|
|
|
(72,325
|
)
|
|
|
|
(23,860
|
)
|
|
Adjusted EBITDA
|
|
|
$
|
60,689
|
|
|
|
$
|
78,162
|
|
|
|
$
|
274,267
|
|
|
|
$
|
328,825
|
|
|
General and administrative
|
|
|
|
8,158
|
|
|
|
|
7,762
|
|
|
|
|
33,876
|
|
|
|
|
29,683
|
|
|
Interest rate swap valuation adjustment
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(2,634
|
)
|
|
Interest expense associated with interest rate swaps
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
2,642
|
|
|
Straight-line rental income
|
|
|
|
(6,152
|
)
|
|
|
|
(5,023
|
)
|
|
|
|
(19,984
|
)
|
|
|
|
(17,739
|
)
|
|
Net effect of above/(below) market amortization
|
|
|
|
(611
|
)
|
|
|
|
(1,774
|
)
|
|
|
|
(4,244
|
)
|
|
|
|
(9,127
|
)
|
|
Adjustments included in loss from unconsolidated joint venture
|
|
|
|
(952
|
)
|
|
|
|
(94
|
)
|
|
|
|
(2,433
|
)
|
|
|
|
(94
|
)
|
|
Net operating income (based on cash rents) - consolidated
|
|
|
$
|
61,132
|
|
|
|
$
|
79,033
|
|
|
|
$
|
281,482
|
|
|
|
$
|
331,556
|
|
|
Same Store NOI (based on cash rents) - 51% of Market Square Buildings(1)
|
|
|
|
(1,144
|
)
|
|
|
|
(2,685
|
)
|
|
|
|
(7,219
|
)
|
|
|
|
(12,640
|
)
|
|
Net Operating Income from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions(2)
|
|
|
|
(9,438
|
)
|
|
|
|
(9,116
|
)
|
|
|
|
(39,581
|
)
|
|
|
|
(23,711
|
)
|
|
Dispositions(3)
|
|
|
|
(1,435
|
)
|
|
|
|
(13,100
|
)
|
|
|
|
(20,796
|
)
|
|
|
|
(80,844
|
)
|
|
Same store NOI (based on cash rents) - wholly-owned properties(4)
|
|
|
$
|
49,115
|
|
|
|
$
|
54,132
|
|
|
|
$
|
213,886
|
|
|
|
$
|
214,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects NOI for 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. Beginning on October
28, 2015, upon entering the joint venture, our interest in NOI from
the Market Square Buildings is included in loss from unconsolidated
joint venture on our income statement.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Reflects activity for the following properties acquired since
January 1, 2015: 229 West 43rd Street, 116 Huntington Avenue, and
315 Park Avenue South.
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Reflects activity for the following properties sold since January 1,
2015: SanTan Corporate Center, Sterling Commerce, 80 Park Plaza,
9127, 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/20170209006254/en/
Columbia Property Trust, Inc.
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, Inc.