Colonial Properties Trust Reports Earnings for Second Quarter 2006.BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. . -- Colonial Properties "Colonial Mall" redirects here. All malls with that name are owned by this company. Colonial Properties Trust NYSE: CLP is a multifamily focused real estate investment trust (REIT). Colonial manages retail, office and multi-family properties. Trust (NYSE NYSE See: New York Stock Exchange : CLP 1. CLP - Cornell List Processor. 2. CLP - Constraint Logic Programming. ), a real estate investment trust that owns a portfolio of multifamily, office and retail properties, reported results for the quarter ending June June: see month. 30, 2006. Net income available to common shareholders was $28.5 million or $0.62 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the quarter, compared to $7.8 million or $0.20 per fully diluted share in the same period in 2005. The increase from the prior year is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increase in gains on sales of property in the second quarter 2006 and a reduction in amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to the merger of Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Income Trust in April, 2005. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings per fully diluted share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) were $0.74 compared to $2.38 for the prior year. Funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ), a widely accepted measure of REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). performance, were $49.7 million, up from $44.2 million in the same period a year ago. Funds from operations per fully diluted share/unit (FFOPS FFOPS Funds from Operations Per Share (financial term) ) were $0.88 for both the second quarter of 2005 and 2006. Solid operating performance and gains recognized from the sale of condominiums in the second quarter of 2006 were offset by the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of preferred share issuance costs and the reduction in the company's overall leverage of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 450 basis points from the second quarter of 2005. Year-to-date FFOPS were $1.69 compared to $1.77 for the same period in 2005. A reconciliation of net income available to common shareholders to FFO is provided in the attached tables. "We are pleased with the operating results produced in each of our divisions and with the strength that property fundamentals continue to demonstrate," said Reynolds Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , the company's chief executive officer. "While our operating businesses continue to perform well, rising interest rates as well as a delay we experienced in condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. closings resulted in second quarter FFOPS falling below the quarterly guidance range we provided. A delay in getting required state approvals and rising insurance costs contributed to the lower number of closings. Our success with condominium conversion projects in Charleston Charleston, cities, United States Charleston. 1 City (1990 pop. 20,398), seat of Coles co., E Ill.; inc. 1835. Charleston is an industrial, rail, and trade center located in an agricultural area; shoes are also made. Eastern Illinois Univ. and Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. continue to make the conversion business attractive to us. However, the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the overall housing market as well as tighter lending criteria criteria (krītēr´ē  ),n. makes the velocity of sales difficult to predict." Highlights for the second quarter of 2006: Corporate: --Achieved positive growth year-to-date in same-property net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics ) for each operating division: multifamily, 6.6 percent; office, 2.2 percent and retail, 8.0 percent compared to the same period in 2005; --Recognized $0.03 of EPS and FFOPS contribution from management and development fees; --Recognized $0.03 of EPS and FFOPS from out parcel land sales; --Redeemed our outstanding $50 million 9.25% Series C Cumulative Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. and recorded a write off of issuance cost of $0.03 of EPS and FFOPS; and --Paid quarterly dividend of $0.68 per common share/unit. Multifamily: --Recognized a 5.4 percent increase in same-property NOI for the second quarter of 2006, the eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval consecutive quarter of year-over-year same-property NOI growth for Colonial Properties' multifamily division; --Reported occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy of 95.9 percent for stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. properties; reported occupancy on same-property portfolio of 96.1 percent; --Announced two new Class A apartment communities totaling 404 units, one in Charlotte N.C. with 250 units and one in Memphis, Tenn. with 154 units; --Acquired four multifamily communities totaling 1,650 units in key Sunbelt Sunbelt Region, south and southwestern U.S. It is characterized by a warm climate, rapid population growth since 1970, and relatively conservative voting patterns. Comprising 15 states, it extends from Virginia and Florida in the southeast through Nevada in the southwest, markets of Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. Texas, Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , GA and Charlotte, N.C.; and --Disposed of one wholly-owned apartment community in Norfolk Norfolk, cities, United States Norfolk (1, 2 nôr`fək; 2 nôr`fôk'). 1 City (1990 pop. 21,476), Madison co., NE Nebr., on the Elkhorn River; inc. 1881. Va. and one partially-owned community in Phoenix, Ariz. Office: --Reported a 3.3 percent decrease in NOI on a same-property basis compared to second quarter of 2005; --Posted occupancy on stabilized properties of 92.3 percent, a 30 basis point increase over the previous quarter; reported occupancy on same-property portfolio of 95.6 percent, a 30 basis point increase sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and a 150 basis point increase over the second quarter 2005; and --Delivered Colonial Center
Securities that involve a high level of risk. speculative Of or relating to an asset or a group of assets with uncertain returns. The greater the degree of uncertainty the more speculative the asset. building started in September September: see month. 2005 at Colonial Town Park in Orlando, Fla., 95 percent leased; and --Sold 85% of one wholly-owned office property representing 877,000 square feet in Atlanta, Ga. and three partially-owned properties totaling 535,000 square feet. Retail: --Realized a 12.0 percent increase in same-property NOI for the second quarter compared to the second quarter of 2005; and --Reported occupancy for stabilized properties of 91.9 percent, up 170 basis points from the prior quarter and up 70 basis points from the second quarter of 2005; posted occupancy for the same-property portfolio of 92.6 percent, a 230 basis point increase sequentially and a 200 basis point increase over the same period in the prior year. For Sale: --Recognized $0.11 of EPS and $0.09 FFOPS contribution from the sales of residential units; and --Acquired Randal Park in Orlando, Fla. for $39.5 million, totaling 712 acres with 384 developable acres for a new mixed-use mixed-use adj. Containing or zoned for commercial and residential facilities or development: a 40-story mixed-use tower; a mixed-use parcel of land. community. Portfolio Overview - As of June 30, 2006 Multifamily: The company owns or manages 44,757 units comprised of 106 wholly-owned properties totaling 32,641 units and 32 partially-owned properties with 9,353 units. Additionally, the company provides third-party management services for 2,763 units. Office: Colonial Properties owns or manages 19.7 million square feet of office space. The company's office portfolio includes 31 wholly-owned properties and 27 partially-owned properties that together total 18.8 million square feet. The company manages 7 additional office properties totaling 0.9 million square-feet. Retail: The company owns or manages 11.9 million square feet of retail space. The portfolio includes 35 wholly-owned and 14 partially-owned retail properties totaling 11.5 million square feet. The company manages an additional 4 retail centers with 0.4 million square feet of space. EPS and FFO Per Share Guidance The company's guidance for 2006 fully diluted EPS and FFOPS is set forth and reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. below.
Full-Year 2006 Range
Low - High
Fully Diluted EPS $ 1.43 - $ 1.95
Plus: Real Estate
Depreciation &
Amortization 3.20 - 3.20
Less: Gain on
Sale of Assets (0.85) - (1.25)
-----------------
Fully Diluted FFOPS $ 3.78 - $ 3.90
"We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the remainder of 2006 due to the strength of our operating businesses and the variety of opportunities that we have to produce earnings in our taxable REIT subsidiary. While we are cautious about the slowing housing market and its impact on condominium sales, we have opportunities in land sales and merchant building to offset potential shortfalls in the condominium business," Thompson said. "As we have previously discussed, by 2010 we expect that 75-80% of our NOI will be derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from our multifamily portfolio. Our commercial activities will focus on development and opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. value creation and we will continue to increase our investments in mixed-use projects. We will provide more insight into our future plans when the management team hosts our Investor Day in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of on October October: see month. 3, 2006." For additional details of disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of and investment activities, see the company's detailed Supplemental Financial Highlights available on the company's website. Conference Call and Supplemental Materials The company will hold its quarterly conference call Thursday Thursday: see week. , July July: see month. 27 at 1:00 pm Central Time. The call will include a review of the company's second quarter performance and discussion of the company's strategy and expectations for the future. To participate, dial 1-877-500-9123. A replay will be available for one week by dialing 1-800-642-1687; the Conference ID will be 1207214. Access to the live call and a replay will be available through the company's website at www.colonialprop.com under "Investor Relations Investor relations The process by which the corporation communicates with its investors. : Shareholder Information." Colonial Properties produces a supplemental information package that provides detailed information regarding operating performance, investing activities and the company's overall financial position. For a copy of Colonial Properties' detailed Supplemental Financial Highlights, please visit the Company's website at www.colonialprop.com under the "Investor Relations: Financial Reporting" tab or contact Investor Relations at 800-645-3917. Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services for its portfolio and properties owned by third parties. The company has a total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of approximately $5.6 billion. As of June 30, the company owns or manages 44,757 apartment units, 19.7 million square feet of office space and 11.9 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Estimates of future earnings, by definition, and certain other statements in this press release may, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs operating costs npl → gastos mpl operacionales ; legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the effect of any rating agency action; the cost and availability of new debt financings Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay ; level and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of interest rates or capital market conditions; effect of any terrorist activity or other heightened geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. crisis; or other factors affecting the real estate industry generally. Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release. The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2005, as may be updated or supplemented in the company's Form 10-Q Form 10-Q See 10-Q. filings, which discuss these and other factors that could adversely affect the company's results.
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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2006
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---------------
BALANCE SHEET
----------------------------------------------------------------------
($ in 000s) As of As of
6/30/2006 12/31/2005
----------- -----------
ASSETS
Real Estate Assets
------------------
Operating Properties $3,747,690 $3,974,925
Undeveloped Land & Construction in Progress 338,598 202,052
----------- -----------
Total Real Estate, before Depreciation 4,086,288 4,176,977
Less: Accumulated Depreciation (427,145) (453,365)
Real Estate Assets Held for Sale, net 254,039 367,372
----------- -----------
Net Real Estate Assets 3,913,182 4,090,984
Cash and Equivalents 29,393 30,615
Restricted Cash 16,695 8,142
Accounts Receivable, net 22,501 28,543
Notes Receivable 55,324 36,387
Prepaid Expenses 18,973 19,549
Deferred Debt and Lease Costs 42,499 50,436
Investment in Unconsolidated Subsidiaries 140,321 123,700
Other Assets 97,634 110,902
----------- -----------
Total Assets $4,336,522 $4,499,258
=========== ===========
LIABILITIES
Long-Term Liabilities
---------------------
Unsecured Credit Facility $323,531 $210,228
Notes and Mortgages Payable 2,044,625 2,274,620
Mortages Payable Related to Real Estate
Assets Held for Sale 61,268 9,502
----------- -----------
Total Long-Term Liabilities 2,429,424 2,494,350
Other Liabilities 121,843 138,861
----------- -----------
Total Liabilities 2,551,267 2,633,211
----------- -----------
MINORITY INTEREST & EQUITY
Limited Partners' Interest in Consolidated
Partnership 7,419 8,094
Preferred Shares and Units, at Liquidation Value
-------------------------------------------------
Series B 7 1/4%, Preferred Units 100,000 100,000
Series C 9 1/4%, Preferred Shares - 50,000
Series D 8 1/8%, Preferred Shares 125,000 125,000
Series E 7 5/8%, Preferred Shares 104,760 133,159
----------- -----------
Total Preferred Shares and Units, at
Liquidation Value 329,760 408,159
Common Equity, including Minority Interest in
Operating Partnership 1,448,076 1,449,794
----------- -----------
Total Equity, including Minority Interest 1,785,255 1,866,047
----------- -----------
Total Liabilities and Equity $4,336,522 $4,499,258
=========== ===========
----------------------------------------------
SHARES & UNITS OUTSTANDING, END OF PERIOD
----------------------------------------------------------------------
(shares and units in 000s) As of As of
6/30/2006 12/31/2005
----------- -----------
Basic
Shares 45,912 44,857
Operating Partnership Units (OP Units) 10,579 10,872
----------- -----------
Total Shares & OP Units 56,491 55,729
Dilutive Common Share Equivalents 473 391
Diluted
Shares 46,385 45,248
Total Shares & OP Units 56,964 56,120
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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2006
--------------------------------------------------------------------
--------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
--------------------------------------------------------------------
($ in 000s, except per share data) Three Months Ended
-----------------------
6/30/2006 6/30/2005
---------- ----------
Revenue
-------
Minimum Rent $ 106,462 $ 102,905 3.5%
Percentage Rent 322 434 -25.8%
Tenant Recoveries 7,308 8,932 -18.2%
Construction Revenues 7,785 -
Other Property Related Revenue 9,162 7,180 27.6%
Other Non-Property Related Revenue 4,592 2,361 94.5%
---------- ---------- --------
Total Revenue 135,631 121,812 11.3%
Operating Expenses
------------------
Property Operating Expenses:
General Operating Expenses 10,619 9,487 11.9%
Salaries and Benefits 8,241 7,422 11.0%
Repairs and Maintenance 10,533 11,101 -5.1%
Taxes, Licenses, and Insurance 13,864 13,214 4.9%
---------- ---------- --------
Total Property Operating
Expenses 43,257 41,224 4.9%
General and Administrative 10,767 9,707 10.9%
Construction Expenses 7,657 -
Depreciation 35,517 30,841 15.2%
Amortization 3,706 22,316 -83.4%
---------- ---------- --------
Total Operating Expenses 100,904 104,088 -3.1%
---------- ---------- --------
Income from Operations 34,727 17,724 95.9%
Other Income (Expense)
----------------------
Interest Expense & Debt Cost
Amortization (31,888) (35,068) -9.1%
Loss on Retirement of Debt - -
Interest Income 2,411 772 212.3%
Income (Loss) from Investments (2,477) 183 -1453.6%
Gain on Hedging Activities 87 143 -39.2%
Gain on Sale of Property, net of
income taxes of $808 (QTR) and
$1,320 (YTD) in 2006 and $275
(QTR) and $401 (YTD) in 2005 30,770 1,183 2501.0%
Income Taxes (350) (352) -0.6%
---------- ---------- --------
Total Other Income (Expense) (1,447) (33,139) -95.6%
---------- ---------- --------
Income before Minority Interest
& Discontinued Operations 33,280 (15,415) -315.9%
Minority Interest
-----------------
Minority Interest of Limited
Partners 235 20 1075.0%
Minority Interest in CRLP -
Preferred (1,813) (1,813) 0.0%
Minority Interest in CRLP - Common (4,568) 5,061 -190.3%
---------- ---------- --------
Total Minority Interest (6,146) 3,268 -288.1%
---------- ---------- --------
Income from Continuing Operations 27,134 (12,147) -323.4%
Discontinued Operations
-----------------------
Income from Discontinued Operations 3,345 6,791 -50.7%
Gain (Loss) on Disposal of Discontinued
Operations, net of income taxes of $3,321
(QTR) and $4,590 (YTD) in 2006
and $0 in 2005 9,485 26,893 -64.7%
Minority Interest in CRLP - Common (2,106) (7,215) -70.8%
Minority Interest of Limited
Partners (1,734) (267) 549.4%
---------- ---------- --------
Income from Discontinued Operations 8,990 26,202 -65.7%
---------- ---------- --------
Net Income 36,124 14,055 157.0%
---------- ---------- --------
Dividends to Preferred Shareholders (5,705) (6,232) -8.5%
--------
Preferred Share Issuance Costs (1,924) -
---------- ----------
Net Income Available to Common
Shareholders $ 28,495 $ 7,823 264.2%
========== ========== ========
Earnings per Share - Basic
Continuing Operations $ 0.43 $ (0.47) -191.5%
Discontinued Operations 0.20 0.67 -70.1%
---------- ---------- --------
EPS - Basic $ 0.63 $ 0.20 215.0%
========== ========== ========
----------------------------------------------------------------------
Earnings per Share - Diluted
Continuing Operations $ 0.42 $ (0.47) -189.4%
Discontinued Operations 0.20 0.67 -70.1%
---------- ---------- --------
EPS - Diluted $ 0.62 $ 0.20 210.0%
========== ========== ========
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COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2006
-------------------------------------------------------------------
--------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------------------------------
($ in 000s, except per share data) Six Months Ended
-----------------------
6/30/2006 6/30/2005
---------- ----------
Revenue
-------
Minimum Rent $ 212,381 $ 169,624 25.2%
Percentage Rent 736 1,094 -32.7%
Tenant Recoveries 15,161 17,899 -15.3%
Construction Revenues 19,925 -
Other Property Related Revenue 16,448 10,912 50.7%
Other Non-Property Related Revenue 8,700 3,346 160.0%
---------- ---------- -------
Total Revenue 273,351 202,875 34.7%
Operating Expenses
------------------
Property Operating Expenses:
General Operating Expenses 21,241 15,121 40.5%
Salaries and Benefits 16,322 11,069 47.5%
Repairs and Maintenance 20,175 18,800 7.3%
Taxes, Licenses, and Insurance 28,003 21,846 28.2%
---------- ---------- -------
Total Property Operating
Expenses 85,741 66,836 28.3%
General and Administrative 22,281 16,968 31.3%
Construction Expenses 19,026 -
Depreciation 73,055 52,725 38.6%
Amortization 11,440 25,609 -55.3%
---------- ---------- -------
Total Operating Expenses 211,543 162,138 30.5%
---------- ---------- -------
Income from Operations 61,808 40,737 51.7%
Other Income (Expense)
----------------------
Interest Expense & Debt Cost
Amortization (64,742) (58,998) 9.7%
Loss on Retirement of Debt (791) -
Interest Income 3,947 982 301.9%
Income (Loss) from Investments (3,139) 1,008 -411.4%
Gain on Hedging Activities 2,551 422 504.5%
Gain on Sale of Property, net of
income taxes of $808 (QTR) and
$1,320 (YTD) in 2006 and $275
(QTR) and $401 (YTD) in 2005 38,104 2,082 1730.2%
Income Taxes (1,146) (436) 162.8%
---------- ---------- -------
Total Other Income (Expense) (25,216) (54,940) -54.1%
---------- ---------- -------
Income before Minority Interest
& Discontinued Operations 36,592 (14,203) -357.6%
Minority Interest
------------------
Minority Interest of Limited
Partners 116 16 625.0%
Minority Interest in CRLP -
Preferred (3,625) (3,625) 0.0%
Minority Interest in CRLP - Common (3,684) 6,749 -154.6%
---------- ---------- -------
Total Minority Interest (7,193) 3,140 -329.1%
---------- ---------- -------
Income from Continuing Operations 29,399 (11,063) -365.7%
Discontinued Operations
-----------------------
Income from Discontinued Operations 6,589 15,874 -58.5%
Gain (Loss) on Disposal of Discontinued
Operations, net of income taxes of
$3,321 (QTR) and $4,590 (YTD) in
2006 and $0 in 2005 18,923 118,210 -84.0%
Minority Interest in CRLP - Common (4,375) (32,503) -86.5%
Minority Interest of Limited
Partners (2,714) (492) 451.6%
---------- ---------- -------
Income from Discontinued Operations 18,423 101,089 -81.8%
---------- ---------- -------
Net Income 47,822 90,026 -46.9%
---------- ---------- -------
Dividends to Preferred Shareholders (11,804) (9,927) 18.9%
-------
Preferred Share Issuance Costs (2,083) -
---------- ----------
Net Income Available to Common
Shareholders $ 33,935 $ 80,099 -57.6%
========== ========== =======
Earnings per Share - Basic
Continuing Operations $ 0.34 $ (0.63) -154.0%
Discontinued Operations 0.41 3.01 -86.4%
---------- ---------- -------
EPS - Basic $ 0.75 $ 2.38 -68.5%
========== ========== =======
Earnings per Share - Diluted
Continuing Operations $ 0.34 $ (0.63) -154.0%
Discontinued Operations 0.40 3.01 -86.7%
---------- ---------- -------
EPS - Diluted $ 0.74 $ 2.38 -68.9%
========== ========== =======
---------------------------------------------------------
FIRST QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
----------------------------------------------------------------------
($ in 000s, except per share data) Three Months Ended
---------------------
6/30/2006 6/30/2005
---------- ----------
Net Income Available to Common
Shareholders $28,495 $7,823 264.2%
Minority Interest in CRLP (Operating Ptr
Unitholders) 6,674 2,154 209.8%
Minority Interest in Gain/(Loss) on Sale
of Undepreciated Property 1,506 -
---------- ----------
Total 36,675 9,977 267.6%
Adjustments - Consolidated Properties
-------------------------------------
Depreciation - Real Estate 36,829 34,658 6.3%
Amortization - Real Estate 3,758 24,720 -84.8%
Remove: Gain/(Loss) on Sale of
Property, net of Income Tax (39,297) (27,520) 42.8%
Include: Gain/(Loss) on Sale of
Undepreciated
Property, net of Income Tax and
Minority Interest (1) 7,052 1,184 495.6%
---------- ---------- --------
Total Adjustments - Consolidated 8,342 33,042 -74.8%
Adjustments - Unconsolidated Properties
----------------------------------------
Depreciation - Real Estate 3,979 1,210 228.8%
Amortization - Real Estate 1,673 2 83550.0%
Remove: Gain/(Loss) on Sale of
Property (960) - 0.0%
---------- ---------- --------
Total Adjustments -
Unconsolidated 4,692 1,212 287.1%
---------- ---------- --------
Funds from Operations $49,709 $44,231 12.4%
========== ========== ========
FFO per Share
Basic $0.89 $0.88 0.5%
Diluted $0.88 $0.88 -0.3%
Six Months Ended
---------------------
6/30/2006 6/30/2005
---------- ----------
Net Income Available to Common
Shareholders $33,935 $80,099 -57.6%
Minority Interest in CRLP (Operating
Ptr Unitholders) 8,059 25,755 -68.7%
Minority Interest in Gain/(Loss) on
Sale of Undepreciated Property 2,641 -
---------- ----------
Total 44,635 105,854 -57.8%
Adjustments - Consolidated Properties
---------------------------------------
Depreciation - Real Estate 76,360 59,885 27.5%
Amortization - Real Estate 11,587 28,308 -59.1%
Remove: Gain/(Loss) on Sale of
Property, net of Income Tax (55,829) (117,852) -52.6%
Include: Gain/(Loss) on Sale of
Undepreciated Property, net of
Income Tax and Minority Interest
(1) 9,623 2,124 353.1%
---------- ---------- ---------
Total Adjustments - Consolidated 41,741 (27,535) -251.6%
Adjustments - Unconsolidated Properties
---------------------------------------
Depreciation - Real Estate 7,410 2,383 211.0%
Amortization - Real Estate 2,880 3 95900.0%
Remove: Gain/(Loss) on Sale of
Property (1,200) (2,440) -50.8%
---------- ---------- ---------
Total Adjustments -
Unconsolidated 9,090 (54) -16933.3%
---------- ---------- ---------
Funds from Operations $95,466 $78,265 22.0%
========== ========== =========
FFO per Share
Basic $1.71 $1.77 -3.7%
Diluted $1.69 $1.77 -4.6%
(1) The Company recognizes incremental gains on condominium sales in
FFO, net of provision for income taxes, to the extent that net sales
proceeds, less costs of sales, from the sale of condominium units
exceeds the greater of their fair value or net book value as of the
date the property is acquired by the Company's taxable REIT
subsidiary.
Pursuant to the definition of Funds from Operations ("FFO") adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"), FFO is calculated by adjusting net
income (loss) (computed in accordance with GAAP), excluding gains (or
losses) from sales of depreciated property, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures are calculated to reflect FFO on the same basis.
The Company believes that FFO is useful to investors because it
provides an additional indicator of the Company's financial and
operating performance. This is because, by excluding the effect of
real estate depreciation and gains (or losses) from sales of
properties (all of which are based on historical costs which may be of
limited relevance in evaluating current performance), FFO can
facilitate comparison of operating performance among equity REITs. FFO
is a widely recognized measure in the Company's industry.FFO does not
represent cash generated from operating activities determined in
accordance with GAAP, and should not be considered as an alternative
to net cash flows from operating activities (determined in accordance
with GAAP), as a measure of our liquidity, or as an indicator of our
ability to make cash distributions.
------------------------------------------------------
SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
----------------------------------------------------------------------
(shares and units in 000s) Three Months Ended
---------------------
6/30/2006 6/30/2005
---------- ----------
Basic
Shares 45,424 39,325 15.5%
Operating Partnership Units (OP Units) 10,693 10,868 -1.6%
---------- ---------- -----
Total Shares & OP Units 56,117 50,193 11.8%
Dilutive Common Share Equivalents 473 -
Diluted (1)
Shares 45,897 39,325 16.7%
Total Shares & OP Units 56,590 50,193 12.7%
Six Months Ended
--------------------
6/30/2006 6/30/2005
--------- ----------
Basic
Shares 45,203 33,575 34.6%
Operating Partnership Units (OP Units) 10,778 10,604 1.6%
---------- -------- -----
Total Shares & OP Units 55,981 44,179 26.7%
Dilutive Common Share Equivalents 485 -
Diluted (1)
Shares 45,688 33,575 36.1%
Total Shares & OP Units 56,466 44,179 27.8%
Notes:
(1) For periods where the Company reported a net loss from continuing
operations (after preferred dividends), the effect of dilutive shares
has been excluded from per share computations as including such
shares would be anti-dilutive.
----------------------------------------------------------------------
COLONIAL PROPERTIES TRUST
Segment Data
($ in 000s, except per share data)
----------------------------------------------------------------------
----------------------------------------------------------------------
QUARTERLY SEGMENT DATA SUMMARY FOR THREE MONTHS ENDED JUNE 30, 2006
AND 2005
----------------------------------------------------------------------
Revenue Expense
------------------- ------ ------------------ ------
2Q06 2Q05 Change 2Q06 2Q05 Change
(1)
--------- --------- ------ --------- -------- ------
MULTIFAMILY PORTFOLIO
Same-
Property
(2) $62,577 $59,845 4.6% $23,864 $23,129 3.2%
Non Same-
Property 14,853 20,410 -27.2% 6,952 9,241 -24.8%
--------- --------- ------ --------- -------- ------
Total
Division 77,430 80,255 -3.5% 30,816 32,370 -4.8%
OFFICE PORTFOLIO
Same-
Property
(2) 21,680 21,768 -0.4% 6,875 6,451 6.6%
Non Same-
Property 23,822 8,120 193.4% 8,972 2,909 208.4%
========= ========= ====== ========= ======== ======
Total
Division 45,502 29,888 52.2% 15,847 9,360 69.3%
RETAIL PORTFOLIO
Same-
Property
(2) 19,708 17,979 9.6% 5,327 5,134 3.8%
Non Same-
Property 7,122 23,142 -69.2% 2,183 7,514 -70.9%
--------- --------- ------ --------- -------- ------
Total
Division 26,830 41,121 -34.8% 7,510 12,648 -40.6%
TOTAL PORTFOLIO
Same-
Property
(2) 103,965 99,592 4.4% 36,066 34,714 3.9%
Non Same-
Property 45,797 51,672 -11.4% 18,107 19,664 -7.9%
--------- --------- ------ --------- -------- ------
Total $149,762 $151,264 -1.0% $54,173 $54,378 -0.4%
========= ========= ====== ========= ======== ======
Net Operating Income
(NOI)
-------------------------
2Q06 2Q05 (1)Change
--------- ---------------
MULTIFAMILY PORTFOLIO
Same-Property (2) $38,713 $36,716 5.4%
Non Same-Property 7,901 11,169 -29.3%
--------- ---------------
Total Division 46,614 47,885 -2.7%
OFFICE PORTFOLIO
Same-Property (2) 14,805 15,317 -3.3%
Non Same-Property 14,850 5,211 185.0%
========= ===============
Total Division 29,655 20,528 44.5%
RETAIL PORTFOLIO
Same-Property (2) 14,381 12,845 12.0%
Non Same-Property 4,939 15,628 -68.4%
--------- ---------------
Total Division 19,320 28,473 -32.1%
TOTAL PORTFOLIO
Same-Property (2) 67,899 64,878 4.7%
Non Same-Property 27,690 32,008 -13.5%
--------- ---------------
Total $95,589 $96,886 -1.3%
========= ===============
----------------------------------------------------------------------
QUARTERLY SEGMENT DATA SUMMARY FOR SIX MONTHS ENDED JUNE 30, 2006 AND
2005
----------------------------------------------------------------------
Revenue Expense
------------------- ------ ------------------ ------
2006 2005 (1) Change 2006 2005 Change
--------- --------- ------ --------- -------- ------
MULTIFAMILY PORTFOLIO
Same-
Property
(2) $123,535 $118,590 4.2% $47,668 $47,450 0.5%
Cornerstone
Properties (3) (31,870) (14,104)
Non Same-
Property 31,864 31,802 0.2% 14,410 14,241 1.2%
--------- --------- ------ --------- -------- ------
Total
Division 155,399 118,522 31.1% 62,078 47,587 30.5%
OFFICE PORTFOLIO
Same-
Property
(2) 42,580 41,078 3.7% 13,379 12,517 6.9%
Non Same-
Property 47,344 13,890 240.8% 17,533 4,664 275.9%
========= ========= ====== ========= ======== ======
Total
Division 89,924 54,968 63.6% 30,912 17,181 79.9%
RETAIL PORTFOLIO
Same-
Property
(2) 38,757 36,239 6.9% 10,698 10,261 4.3%
Non Same-
Property 16,422 49,292 -66.7% 4,556 15,550 -70.7%
--------- --------- ------ --------- -------- ------
Total
Division 55,179 85,531 -35.5% 15,254 25,811 -40.9%
TOTAL PORTFOLIO
Same-
Property
(2) 204,872 195,907 4.6% 71,745 70,228 2.2%
Cornerstone
Properties (3) (31,870) (14,104)
Non Same-
Property 95,630 94,984 0.7% 36,499 34,455 5.9%
--------- --------- ------ --------- -------- ------
Total $300,502 $259,021 16.0% $108,244 $90,579 19.5%
========= ========= ====== ========= ======== ======
Net Operating Income (NOI)
-------------------------
2006 2005 (1)Change
--------- ---------------
MULTIFAMILY PORTFOLIO
Same-Property (2) $75,867 $71,140 6.6%
Cornerstone Properties (3) (17,766)
Non Same-Property 17,454 17,561 -0.6%
--------- ---------------
Total Division 93,321 70,935 31.6%
OFFICE PORTFOLIO
Same-Property (2) 29,201 28,561 2.2%
Non Same-Property 29,811 9,226 223.1%
========= ===============
Total Division 59,012 37,787 56.2%
RETAIL PORTFOLIO
Same-Property (2) 28,059 25,978 8.0%
Non Same-Property 11,866 33,742 -64.8%
--------- ---------------
Total Division 39,925 59,720 -33.1%
TOTAL PORTFOLIO
Same-Property (2) 133,127 125,679 5.9%
Cornerstone Properties (3) (17,766)
Non Same-Property 59,131 60,529 -2.3%
--------- ---------------
Total $192,258 $168,442 14.1%
========= ===============
Notes:
(1) The 2005 year-to-date same-property data includes Cornerstone
properties that were not owned by the Company during Q105.
(2) The 2005 same-property data reflects results of the 2006 same-
property portfolio, as adjusted for dispositions during year and
including straight-line rents.
(3) In the 2005 year-to-date calculation, Cornerstone 1Q05 same-
property results are deducted to arrive at 1Q05 Total Portfolio
results due to the fact that the Cornerstone merger was not completed
until April 1, 2005.
Revenue is defined as total property revenues, including our prorata
share of unconsolidated partnerships and joint ventures. The Company
believes Revenue (and other revenue measures aggregating segment data)
is useful to investors as a meaningful indicator of property operating
performance and current market conditions affecting the Company.
Additionally, Revenue is an integral component in calculating
Divisional NOI.
Expense is defined as real estate expenses, (such items as repairs and
maintenance, payroll, utilities, property taxes, insurance,
advertising, management fees), including unconsolidated partnerships
and joint ventures. The Company believes Expense (and other expense
measures aggregating segment data) is useful to investors as a
meaningful indicator of property operating expenses. Additionally,
Expense is an integral component in calculating Divisional NOI.
Net Operating Income (NOI) is defined as total property revenues,
including our prorata share of unconsolidated partnerships and joint
ventures, less real estate expenses (such items as repairs and
maintenance, payroll, utilities, property taxes, insurance,
advertising, management fees). The Company believes NOI (and other NOI
measures aggregating segment data) is useful to investors as a
meaningful indicator of property level operating performance and
current market conditions affecting the Company . Additionally, the
Company also believes NOI (and such other NOI measures) is useful to
investors because NOI is commonly used industry-wide to evaluate and
compare property level operating results of real estate companies,
allowing investors to view the Company in comparison to these other
real estate companies. The Company cautions investors that other real
estate companies may calculate NOI on a basis different than the
Company. In addition, NOI (and such other NOI measures) should not be
viewed as a substitute measure of performance for GAAP income from
continuing operations or other applicable GAAP performance measures.
----------------------------------------------------------------------
COLONIAL PROPERTIES TRUST
Corporate Reconciliations
($ in 000s, except per share data)
----------------------------------------------------------------------
---------------------------
RECONCILIATION OF REVENUES
----------------------------------------------------------------------
Three Months Ended Six Months Ended
--------------------- ---------------------
6/30/2006 6/30/2005 6/30/2006 6/30/2005
---------- ---------- ---------- ----------
Divisional Total Revenues
Multifamily 77,430 80,255 155,399 118,522
Office 45,502 29,888 89,924 54,968
Retail 26,830 41,121 55,179 85,531
---------- ---------- ---------- ----------
Total Divisional
Revenues 149,762 151,264 300,502 259,021
Less: Unconsolidated
Revenues (16,681) (5,071) (32,842) (9,972)
Discontinued
Operations (9,827) (26,742) (22,934) (49,521)
Construction Revenues 7,785 - 19,925 -
Unallocated Corporate
Rev 4,592 2,361 8,700 3,347
---------- ---------- ---------- ----------
Cons. Rev, adj -'05
Disc Ops 135,631 121,812 273,351 202,875
---------- ---------- ---------- ----------
Add: Add'l Disc Ops
Rev, post filing - 7,067 - 14,611
---------- ---------- ---------- ----------
Total Consol. Rev, per
10-Q / K 135,631 128,879 273,351 217,486
========== ========== ========== ==========
---------------------------
RECONCILIATION OF EXPENSES
----------------------------------------------------------------------
Three Months Ended Six Months Ended
--------------------- ---------------------
6/30/2006 6/30/2005 6/30/2006 6/30/2005
---------- ---------- ---------- ----------
Divisional Total Expenses
Multifamily 30,816 32,370 62,078 47,587
Office 15,847 9,360 30,912 17,181
Retail 7,510 12,648 15,254 25,811
---------- ---------- ---------- ----------
Total Divisional
Expenses 54,173 54,378 108,244 90,579
Less: Unconsolidated
Expense (6,685) (2,057) (12,803) (4,031)
Discontinued
Operations (4,450) (11,116) (10,135) (19,746)
Other Expense 219 19 435 34
---------- ---------- ---------- ----------
Total Property
Operating Exp 43,257 41,224 85,741 66,836
Construction Expenses 7,657 - 19,026 -
General &
Administrative Exp 10,767 9,707 22,281 16,968
Depreciation 35,517 30,841 73,055 52,725
Amortization 3,706 22,316 11,440 25,609
---------- ---------- ---------- ----------
Cons. Exp, adj -'05
Disc Ops 100,904 104,088 211,543 162,138
---------- ---------- ---------- ----------
Add: Add'l Disc Ops
Exp,post filing - 10,223 - 16,133
---------- ---------- ---------- ----------
Total Consol. Exp, per
10-Q / K 100,904 114,311 211,543 178,271
========== ========== ========== ==========
------------------------
RECONCILIATION OF NOI
----------------------------------------------------------------------
Three Months Ended Six Months Ended
--------------------- ---------------------
6/30/2006 6/30/2005 6/30/2006 6/30/2005
---------- ---------- ---------- ----------
Divisional Total NOI
Multifamily 46,614 47,885 93,321 70,935
Office 29,655 20,528 59,012 37,787
Retail 19,320 28,473 39,925 59,720
---------- ---------- ---------- ----------
Total Divisional
NOI 95,589 96,886 192,258 168,442
Less: Unconsolidated
NOI (9,996) (3,014) (20,039) (5,941)
Discontinued
Operations (5,377) (15,626) (12,799) (29,775)
Unallocated Corporate
Rev 4,592 2,361 8,700 3,347
Construction NOI 128 - 899 -
Other Expense (219) (19) (436) (34)
G&A Expenses (10,767) (9,707) (22,281) (16,968)
Depreciation (35,517) (30,841) (73,055) (52,725)
Amortization (3,706) (22,316) (11,440) (25,609)
---------- ---------- ---------- ----------
Income from
Operations 34,727 17,724 61,807 40,737
Total Other Income
(Expense) (1,447) (33,139) (25,215) (54,940)
---------- ---------- ---------- ----------
Income from Contin'g
Ops (1) 33,280 (15,415) 36,592 (14,203)
---------- ---------- ---------- ----------
Disc Ops - - - -
05 & 06 Disc Ops Other
Inc(Exp) - (1,354) - 839
---------- ---------- ---------- ----------
Inc from Cont (1), per
10-Q / K 33,280 (16,769) 36,592 (13,364)
========== ========== ========== ==========
Quarterly NOI from Properties Not Stabilized in that Quarter
Properties in Lease-up
or CIP 1,093 1,850 1,508 2,085
Acquisitions 696 787 1,113 2,485
Notes:
(1) Income from Continuing Operations before extraordinary items,
minority interest and discontinued operations. Adjustments for
additional discontinued operations have restated prior periods in
accordance with FAS 144.
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