Colonial Properties Trust Reports Second Quarter 2005 Earnings.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 diversified diversified (di·verˑ·s real estate investment trust that owns a portfolio of multifamily, office and retail properties, today reported financial results for the second quarter, ended June June: see month. 30, 2005. Net income available to common shareholders was $7.8 million or $0.20 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 compared to $6.4 million or $0.24 per fully diluted share for the second quarter of 2004. The change from the previous year is primarily due to the increase in depreciation and the 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 with 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 (TCR TCR T cell receptor. ), which was offset primarily by the gain on sale of Colonial Village Lake Mary Lake Mary may refer to:
The period beginning at the start of the calendar year up to the current date. earnings per 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 $2.38 in 2005, compared to $0.73 for the same period in 2004. 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, rose to $44.2 million or $0.88 per fully diluted share/unit (FFOPS FFOPS Funds from Operations Per Share (financial term) ), a 1.7 percent increase on a per share/unit basis from $32.7 million or $0.87 FFOPS in the same period a year ago. A reconciliation of net income available to common shareholders to FFO is provided in the attached tables. "We are delivering the results we said we would deliver," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs H. Lowder, the company's chairman and chief executive officer. "The Cornerstone integration has gone well and we continue to meet our targeted growth projections. Additionally, we are excited about our expanding development pipeline, including our newest projects in the for-sale arena." Highlights since the end of first quarter 2005: Corporate: --Successfully closed the merger with TCR on April 1, 2005. --Completed $316 million in acquisitions for a year-to-date total of $437 million. --Completed dispositions of $322 million for a year-to-date total of $533 million. --Posted growth in same-store 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 ) in all three operating divisions. --Announced $230 million in new development. --Introduced a new Direct Investment Program currently featuring a discount on dividend reinvestments and optional cash investments. --Paid a dividend of $0.675 per common share. The company announced its entry into the for-sale residential business with a pipeline of projects totaling over $200 million. A new joint venture with Montecito See Itanium. Property Company for the conversion of apartment properties into 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. communities is the largest investment with an initial capital commitment of $120 million for the conversion of two properties in south Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and . The projects also include a condominium development in Charlotte, N.C., and two projects in the early stages of development in Gulf Shores, Ala. Multifamily: --Posted a 6.1 percent increase for the second quarter of 2005 in same-property NOI for the combined CLP and former TCR same-property portfolio compared to the same period in the prior year. --Posted an increase of 7.2 percent growth in same-property NOI for the second quarter of 2005 for the former CLP same-property multifamily portfolio over the same period in 2004; the seventh consecutive quarter of year-over-year same-property growth for Colonial Properties' multifamily division. --Realized 5.5 percent increase in same-property NOI for the second quarter of 2005 for the former TCR portfolio compared to the same period in the prior year. --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 96.3 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 for the combined CLP and TCR portfolio; 97.3 percent for the CLP portfolio, a 90 basis point increase from the first quarter of 2005 and 95.7 percent for the former TCR portfolio. --Began development on three Colonial Grand multifamily communities in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas. --Announced a joint venture with Montecito Property Company to convert apartment properties to condominium communities. --Sold one CLP and seven former TCR properties. The company disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of seven former TCR properties as well as one CLP multifamily property during the quarter. Totaling 2,133 units, the properties sold for $122.9 million and were located in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ; Forth Worth, 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.; Charlotte, N.C.; 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. , Fla. The properties are part of an ongoing transaction that includes six CLP properties, which were sold at the end of the first quarter. To date, the transaction totals $266.7 million and represents a 6.3 percent capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. . Office: --Achieved a 3.7 percent increase in NOI on a same-property basis compared to second quarter 2004. --Realized 92.7 percent occupancy for stabilized properties, a 320 basis point increase over first quarter 2005. --Acquired five office properties since the end of the first quarter; three Florida properties located in Tampa Tampa (tăm`pə), city (1990 pop. 280,015), seat of Hillsborough co., W Fla., a port of entry with an impressive harbor on Tampa Bay; inc. 1855. , Miami and Orlando; one property in Austin, Texas, and one in Charlotte, N.C. --Announced a build-to-suit project for Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. in Huntsville Huntsville, town, Canada Huntsville, town (1991 pop. 14,997), SE Ont., Canada, on the Muskoka River. It has lumber mills and a woodworking plant, but it is sustained mainly by its year-round tourist trade. , Ala. Since the end of the first quarter, the company purchased five office properties totaling 1.2 million square feet. In keeping with the company's 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. approach to its office business, the properties provide unique value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. opportunities. Colonial Bank Colonial Bank, a subsidiary of Colonial Bancgroup Inc. NYSE: CNB, is headquartered in Montgomery, Alabama. Colonial Bank has 300 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Its common stock is traded on the NYSE under the symbol CNB. Center at 1200 Brickell Avenue Brickell Avenue is the name given to the stretch of U.S. Route 1 in Miami-Dade County, Florida just south of the Miami River. It is the main road through the Brickell district of Downtown Miami. in Miami, Fla., is located in one of the most desirable office markets in the country. Both Colonial Center
adj. Situated very close to or on the shore of a bay: bayside cottages. in Tampa, Fla., and the Esplanade property in Charlotte, N.C., offer excellent value creation opportunities through lease-up of the assets. Research Park III & IV in Austin, Texas, is 100 percent leased to a strong credit tenant through 2012. Retail: --Realized 1.7 percent increase in NOI on a same property basis compared to the second quarter, 2004. --Increased occupancy for stabilized properties from 91.0 percent to 91.6 percent from first quarter 2005, a 60 basis point increase. --Disposed of one mall mall: see shopping center. (World-Wide Web) mall - A collection of World-Wide Web documents featuring commercial products and services, usually served by one particualr Internet access provider. during the quarter and two malls subsequent to the quarter close. --Announced the development of Pinnacle pinnacle (pĭn`ĭkəl), minor architectural motif of vertical tapering shape, usually crowning a pier, buttress, or gable. Although sometimes it appears in Renaissance design, as in the Certosa di Pavia, it is almost exclusively a medieval at Sumner Sum·ner , James Batcheller 1887-1955. American biochemist. He shared a 1946 Nobel Prize for his pioneering work on crystallizing enzymes. Point, a retail shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , in Nashville Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn. As part of its ongoing strategy to reposition its retail portfolio to shopping centers, the company sold one of its enclosed en·close also in·close tr.v. en·closed, en·clos·ing, en·clos·es 1. To surround on all sides; close in. 2. To fence in so as to prevent common use: enclosed the pasture. malls during the quarter and two in July July: see month. . The company sold Colonial Mall Macon Macon (mā`kən, mā`kŏn), city (1990 pop. 106,612), seat of Bibb co., central Ga., at the head of navigation on the Ocmulgee River; inc. 1823. for $133.5 million, realizing an 8.5 percent capitalization rate. Colonial Mall Temple sold for $33.5 million and Colonial Mall Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. sold for $32.5 million. Since December December: see month. of 2004, the company sold five mall assets for a total of $320 million, representing a capitalization rate of 8.4 percent. The company announced the development of a 300,000 square foot lifestyle center, Pinnacle at Sumner Point, in Hendersonville Hen·der·son·ville A city of northern Tennessee northeast of Nashville. It is a popular resort. Population: 42,200. , Tenn., near Nashville. The company will invest $60 million in the center, which will contain a stadium-seated cinema, specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailers, and fine dining in Dining in is a formal military function for members of a company or other unit. The practice is thought to have begun in 16th Century England, in the monasteries and early universities. an open-air setting. The project is expected to open in the spring of 2007. Financing Activities In connection with the TCR merger, the company assumed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500 million of secured debt and prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. approximately
$350 million of secured debt. At the end of the second quarter, the
company's debt plus preferred equity was approximately 66.4 percent
of gross assets.Portfolio Overview - As of July 28, 2005 Multifamily: The company owns or manages approximately 47,700 comprised of 117 wholly owned properties totaling about 34,749 units, and holds a partial interest in 35 properties with 9,734 units. Additionally, the company provides third-party management services for approximately 3,228 units. Office: Colonial Properties owns or manages 8.3 million square feet of office space. The company's office portfolio includes 34 wholly-owned properties and one partially-owned property that together total 7.5 million square feet. The company manages six additional office properties totaling 0.8 million square-feet. Retail: The company owns or manages 13.5 million square feet of retail space. These properties include 32 wholly-owned and two partially-owned shopping centers totaling 6.4 million square feet as well as 11 wholly-owned and one partially-owned regional mall with 6.7 million square feet. The company manages an additional four shopping centers with 0.3 million square feet of space. EPS and FFO Per Share Guidance The company's guidance for the third-quarter and full-year 2005 for 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.
Third-Quarter 2005 Range Full-Year 2005 Range
Low - High Low - High
Fully Diluted EPS $1.12 - $1.17 $3.70 - $5.80
Plus: Real Estate
Depreciation &
Amortization 1.05 - 1.05 3.64 - 3.64
Less: Gain on
Sale of Assets (1.28) - (1.30) (3.68) - (5.72)
Fully Diluted FFOPS $0.89 - $0.92 $3.66 - $3.72
"We have significant momentum in all our divisions," Lowder said. "With the Cornerstone merger behind us, we are focusing on dispositions and the redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of capital. Since we have the ability to allocate To reserve a resource such as memory or disk. See memory allocation. capital across all property types, we can act nimbly nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. for the right opportunities." 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 28 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 current expectations for the future. To participate, dial 1-877-500-9123. As with previous calls, a replay will be available for one week, by dialing 1-800-642-1687; the Conference ID will be 7451771. Access to the live call and a replay will be available through the company's website at http://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 http://www.colonialprop.com under the "Investor Relations: Financial Reporting" tab or contact Barbara Barbara maid exemplifying personal and domestic neatness. [Br. Lit.: Old Curiosity Shop] See : Orderliness Pooley in 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 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, . 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 $5.5 billion. As of July 28, the company owned or managed 47,700 apartment units, 8.3 million square feet of office space and 13.5 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 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: Certain 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 or achievements to be materially different from the results, performance or achievements 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 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 ; 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 factors affecting the real estate industry generally. Except as otherwise required by the federal securities laws, the company assumes no liability 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 "Business-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 31, 2004, which discuss these and other factors that could adversely affect the company's results.
COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2005
-----------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------
($ in 000s, except per share data) Three Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Revenue
-----------------------------------------
Minimum Rent $ 106,913 $ 58,588 82.5%
Percentage Rent 403 409 -1.5%
Tenant Recoveries 8,814 6,834 29.0%
Other Property Related Revenue 8,243 4,294 92.0%
Other Non-Property Related Revenue 4,506 1,380 226.5%
---------- ----------------
Total Revenue 128,879 71,505 80.2%
Operating Expenses
-----------------------------------------
Property Operating Expenses:
General Operating Expenses 10,128 5,156 96.4%
Salaries and Benefits 7,980 3,277 143.5%
Repairs and Maintenance 11,242 6,910 62.7%
Taxes, Licenses, and Insurance 13,853 6,420 115.8%
---------- ----------------
Total Property Operating Expenses 43,203 21,763 98.5%
General and Administrative 10,963 5,678 93.1%
Depreciation 34,134 17,773 92.1%
Amortization 26,011 2,534 926.5%
---------- ----------------
Total Operating Expenses 114,311 47,748 139.4%
---------- ----------------
Income from Operations 14,568 23,757 -38.7%
Other Income (Expense)
-----------------------------------------
Interest Expense (32,531) (16,176) 101.1%
Income from Investments 186 283 -34.3%
Gain (Loss) on Hedging Activities 143 160 -10.6%
Gain on Sale of Property 1,492 1,117 33.6%
Other (627) (87) 620.7%
---------- ----------------
Total Other Expense (31,337) (14,703) 113.1%
---------- ----------------
Income (Loss) before Minority Interest
& Discontinued Operations (16,769) 9,054 -285.2%
Minority Interest
-----------------------------------------
Minority Interest of limited partners (247) (10) 2370.0%
Minority Interest in CRLP - Preferred (1,813) (1,813) 0.0%
Minority Interest in CRLP - Common 5,411 (978) -653.3%
---------- ----------------
Total Minority Interest 3,351 (2,801) -219.6%
---------- ----------------
Income (Loss) from Continuing Operations (13,418) 6,253 -314.6%
Discontinued Operations
-----------------------------------------
Income from Discontinued Operations 8,735 5,021 74.0%
Gain (Loss) on Disposal of
Discontinued Operations 26,303 347 7480.1%
Minority Interest in Discontinued
Operations (7,565) (1,485) 409.4%
---------- ----------------
Income from Discontinued Operations 27,473 3,883 607.5%
---------- ----------------
Net Income 14,055 10,136 38.7%
---------- ----------------
Dividends to Preferred Shareholders (6,232) (3,695) 68.7%
---------- ----------------
Net Income Available to Common
Shareholders $ 7,823 $ 6,441 21.5%
========== ================
Earnings per Share - Basic
Continuing Operations $ (0.50)$ 0.10 -600.0%
Discontinued Operations 0.70 0.14 400.0%
---------- ----------------
EPS - Basic $ 0.20 $ 0.24 -16.7%
========== ================
Earnings per Share - Diluted
Continuing Operations $ (0.50)$ 0.10 -600.0%
Discontinued Operations 0.70 0.14 400.0%
---------- ----------------
EPS - Diluted $ 0.20 $ 0.24 -16.7%
========== ================
-----------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
----------------------------------------------------------------------
($ in 000s, except per share data) Six Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Revenue
-----------------------------------------
Minimum Rent $ 178,516 $ 114,352 56.1%
Percentage Rent 1,030 842 22.3%
Tenant Recoveries 17,561 13,814 27.1%
Other Property Related Revenue 12,567 7,903 59.0%
Other Non-Property Related Revenue 7,812 2,676 191.9%
---------- ----------------
Total Revenue 217,486 139,587 55.8%
Operating Expenses
-----------------------------------------
Property Operating Expenses:
General Operating Expenses 16,393 10,123 61.9%
Salaries and Benefits 12,150 6,257 94.2%
Repairs and Maintenance 19,035 12,899 47.6%
Taxes, Licenses, and Insurance 23,095 12,919 78.8%
---------- ----------------
Total Property Operating Expenses 70,673 42,198 67.5%
General and Administrative 19,364 11,217 72.6%
Depreciation 57,697 34,697 66.3%
Amortization 30,537 4,752 542.6%
---------- ----------------
Total Operating Expenses 178,271 92,864 92.0%
---------- ----------------
Income from Operations 39,215 46,723 -16.1%
Other Income (Expense)
-----------------------------------------
Interest Expense (55,067) (30,555) 80.2%
Income from Investments 285 388 -26.5%
Gain (Loss) on Hedging Activities 422 80 427.5%
Gain on Sale of Property 2,618 2,119 23.5%
Other (837) (107) 682.2%
---------- ----------------
Total Other Expense (52,579) (28,075) 87.3%
---------- ----------------
Income (Loss) before Minority Interest
& Discontinued Operations (13,364) 18,648 -171.7%
Minority Interest
-----------------------------------------
Minority Interest of limited partners (476) (10) 4660.0%
Minority Interest in CRLP - Preferred (3,625) (3,868) -6.3%
Minority Interest in CRLP - Common 6,664 (2,069) -422.1%
---------- ----------------
Total Minority Interest 2,563 (5,947) -143.1%
---------- ----------------
Income (Loss) from Continuing Operations (10,801) 12,701 -185.0%
Discontinued Operations
-----------------------------------------
Income from Discontinued Operations 15,171 10,378 46.2%
Gain (Loss) on Disposal of
Discontinued Operations 118,075 9,738 1112.5%
Minority Interest in Discontinued
Operations (32,419) (5,596) 479.3%
---------- ----------------
Income from Discontinued Operations 100,827 14,520 594.4%
---------- ----------------
Net Income 90,026 27,221 230.7%
---------- ----------------
Dividends to Preferred Shareholders (9,927) (7,391) 34.3%
---------- ----------------
Net Income Available to Common
Shareholders $ 80,099 $ 19,830 303.9%
========== ================
Earnings per Share - Basic
Continuing Operations $ (0.62)$ 0.20 -410.0%
Discontinued Operations 3.00 0.54 455.6%
---------- ----------------
EPS - Basic $ 2.38 $ 0.74 221.6%
========== ================
Earnings per Share - Diluted
Continuing Operations $ (0.62)$ 0.20 -410.0%
Discontinued Operations 3.00 0.53 466.0%
---------- ----------------
EPS - Diluted $ 2.38 $ 0.73 226.0%
========== ================
---------------------------------------------------
SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION
----------------------------------------------------------------------
($ in 000s, except per share data) Three Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Net Income Available to Common
Shareholders $ 7,823 $ 6,441 21.5%
Minority Interest in CRLP (Operating Ptr
Unitholders) 2,154 2,463 -12.5%
---------- ----------------
Total 9,977 8,904 12.1%
Adjustments - Consolidated Properties
-----------------------------------------
Depreciation - Real Estate 34,658 21,554 60.8%
Amortization - Real Estate 24,720 1,797 1275.6%
Remove: Gain/(Loss) on Sale of
Property (27,795) (811) 3327.3%
Include: Gain/(Loss) on Sale of
Undepreciated Property 1,459 1,115 30.9%
---------- ----------------
Total Adjustments - Consolidated 33,042 23,655 39.7%
Adjustments - Unconsolidated Properties
-----------------------------------------
Depreciation - Real Estate 1,210 918 31.8%
Amortization - Real Estate 2 20 -90.0%
Remove: Gain/(Loss) on Sale of
Property - (799) -100.0%
Include: Gain/(Loss) on Sale of
Undepreciated Property - - 0.0%
---------- ----------------
Total Adjustments - Unconsolidated 1,212 139 771.9%
---------- ----------------
Funds from Operations $ 44,231 $ 32,698 35.3%
========== ================
FFO per Share
Basic $ 0.88 $ 0.87 0.9%
Diluted $ 0.88 $ 0.87 1.7%
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 FUNDS FROM OPERATIONS (FFO) RECONCILIATION
----------------------------------------------------------------------
($ in 000s, except per share data) Six Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Net Income Available to Common
Shareholders $ 80,099 $ 19,830 303.9%
Minority Interest in CRLP (Operating Ptr
Unitholders) 25,755 7,665 236.0%
---------- -----------------
Total 105,854 27,495 285.0%
Adjustments - Consolidated Properties
-----------------------------------------
Depreciation - Real Estate 59,885 42,282 41.6%
Amortization - Real Estate 28,308 3,196 785.7%
Remove: Gain/(Loss) on Sale of
Property (118,253) (11,204) 955.5%
Include: Gain/(Loss) on Sale of
Undepreciated Property 2,525 2,123 18.9%
---------- -----------------
Total Adjustments - Consolidated (27,535) 36,397 -175.7%
Adjustments - Unconsolidated Properties
-----------------------------------------
Depreciation - Real Estate 2,383 1,959 21.6%
Amortization - Real Estate 3 36 -91.7%
Remove: Gain/(Loss) on Sale of
Property (2,440) (799) 205.4%
Include: Gain/(Loss) on Sale of
Undepreciated Property - - 0.0%
---------- -----------------
Total Adjustments - Unconsolidated (54) 1,196 -104.5%
---------- -----------------
Funds from Operations $ 78,265 $ 65,088 20.2%
========== =================
FFO per Share
Basic $ 1.77 $ 1.75 1.4%
Diluted $ 1.77 $ 1.73 2.3%
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
----------------------
6/30/2005 6/30/2004
---------- ----------
Basic
Shares 39,325 27,089 45.2%
Operating Partnership Units (OP Units) 10,868 10,358 4.9%
---------- -----------------
Total Shares & OP Units 50,193 37,447 34.0%
Dilutive Common Share Equivalents - 293 -100.0%
Diluted (1)
Shares 39,325 27,382 43.6%
Total Shares & OP Units 50,193 37,740 33.0%
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.
-----------------------------------------
SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED
----------------------------------------------------------------------
(shares and units in 000s) Six Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Basic
Shares 33,575 26,880 24.9%
Operating Partnership Units (OP Units) 10,604 10,360 2.4%
---------- -----------------
Total Shares & OP Units 44,179 37,240 18.6%
Dilutive Common Share Equivalents - 336 -100.0%
Diluted (1)
Shares 33,575 27,216 23.4%
Total Shares & OP Units 44,179 37,576 17.6%
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.
-----------------------------------------
SECOND QUARTER SEGMENT DATA & RECONCILIATION
----------------------------------------------------------------------
Three Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Net Operating Income (NOI)
Divisional Same-Property NOI
Multifamily $ 13,715 $ 12,790 7.2%
Office 17,344 16,728 3.7%
Retail 21,212 20,858 1.7%
---------- -----------------
Total Same-Property 52,271 50,376 3.8%
Less: Unconsolidated Assets (897) (769)
---------- ----------
Same-Property NOI, Consolidated 51,374 49,607
---------- ----------
Divisional Non Same-Property NOI
Multifamily 34,407 4,932
Office 3,187 541
Retail 7,293 5,888
---------- ----------
Total Non-Same Property 44,887 11,361
Less: Unconsolidated Assets (2,091) (1,385)
---------- ----------
Non Same-Property NOI, Consolidated 42,796 9,976
---------- ----------
Divisional Total NOI
Multifamily 48,122 17,722 171.5%
Office 20,531 17,269 18.9%
Retail 28,505 26,746 6.6%
---------- -----------------
Total Divisional NOI 97,158 61,737 57.4%
Less: NOI, Unconsolidated (2,988) (2,154)
Less: Discontinued Operations (12,983) (11,217)
Unallocated Corporate Rev 4,506 1,380
Other Revenue (Expense) (17) (4)
General & Administrative Expenses (10,963) (5,678)
Depreciation (34,134) (17,773)
Amortization (26,011) (2,534)
---------- ----------
Income from Operations, restated for
additional discontinued operations 14,568 23,757
Total Other Income (Expense) (31,337) (14,703)
---------- ----------
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
as restated for additional
discontinued operations (16,769) 9,054
---------- ----------
Add: Discontinued Operations Income,
post 2Q 2004 - 4,525
---------- ----------
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
per corresponding 10-K or 10-Q $ (16,769)$ 13,579
========== ==========
Divisional NOI is defined as total property revenues, including
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 Total Divisional 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
Total Divisional 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 Total Divisional NOI on a basis
different than the Company. In addition, Total Divisional 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.
-----------------------------------------
SECOND QUARTER SEGMENT DATA & RECONCILIATION
----------------------------------------------------------------------
Six Months Ended
----------------------
6/30/2005 6/30/2004
---------- ----------
Net Operating Income (NOI)
Divisional Same-Property NOI
Multifamily $ 26,931 $ 25,197 6.9%
Office 32,804 33,435 -1.9%
Retail 43,221 42,608 1.4%
---------- -----------------
Total Same-Property 102,956 101,240 1.7%
Less: Unconsolidated Assets (1,796) (1,612)
---------- ----------
Same-Property NOI, Consolidated 101,160 99,628
---------- ----------
Divisional Non Same-Property NOI
Multifamily 44,252 8,700
Office 4,987 835
Retail 16,573 11,336
---------- ----------
Total Non-Same Property 65,812 20,871
Less: Unconsolidated Assets (4,140) (2,920)
---------- ----------
Non Same-Property NOI, Consolidated 61,672 17,951
---------- ----------
Divisional Total NOI
Multifamily 71,183 33,897 110.0%
Office 37,791 34,270 10.3%
Retail 59,794 53,944 10.8%
---------- -----------------
Total Divisional NOI 168,768 122,111 38.2%
Less: NOI, Unconsolidated (5,937) (4,532)
Less: Discontinued Operations (23,800) (22,927)
Unallocated Corporate Rev 7,812 2,676
Other Revenue (Expense) (30) 61
General & Administrative Expenses (19,364) (11,217)
Depreciation (57,697) (34,697)
Amortization (30,537) (4,752)
---------- ----------
Income from Operations, restated for
additional discontinued operations 39,215 46,723
Total Other Income (Expense) (52,579) (28,075)
---------- ----------
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
as restated for additional
discontinued operations (13,364) 18,648
---------- ----------
Add: Discontinued Operations Income,
post 2Q 2004 - 9,469
---------- ----------
Income from Continuing Operations
before Extraordinary Items, Minority
Interest and Discontinued Operations,
per corresponding 10-K or 10-Q $ (13,364)$ 28,117
========== ==========
Divisional NOI is defined as total property revenues, including
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 Total Divisional 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
Total Divisional 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 Total Divisional NOI on a basis
different than the Company. In addition, Total Divisional 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
Financial Statements
Second Quarter 2005
----------------------
BALANCE SHEET
---------------------------------------------------------------------
($ in 000s) As of As of
6/30/2005 12/31/2004
---------- -----------
ASSETS
Real Estate Assets
----------------------
Operating Properties $3,916,922 $ 2,696,304
Undeveloped Land & Construction in Progress 187,696 158,954
---------- -----------
Total Real Estate, before
Depreciation 4,104,618 2,855,258
Less: Accumulated Depreciation (454,255) (437,635)
Real Estate Assets Held for Sale, net 536,742 167,712
---------- -----------
Net Real Estate Assets 4,187,105 2,585,335
Cash and Equivalents 43,981 10,725
Restricted Cash 7,269 2,333
Accounts Receivable, net 23,511 20,642
Notes Receivable 26,738 906
Prepaid Expenses 16,234 11,238
Deferred Debt and Lease Costs 45,703 36,750
Investment in Unconsolidated Subsidiaries 77,858 65,472
Other Assets 127,990 67,942
---------- -----------
Total Assets $4,556,389 $ 2,801,343
========== ===========
LIABILITIES
Long-Term Liabilities
----------------------
Unsecured Credit Facility $ 622,759 $ 239,970
Notes and Mortgages Payable 2,225,554 1,615,817
---------- -----------
Total Long-Term Liabilities 2,848,313 1,855,787
Other Liabilities 154,477 74,548
---------- -----------
Total Liabilities 3,002,790 1,930,335
MINORITY INTEREST & EQUITY
Limited Partners' Interest in Consolidated
Partnership 2,787 1,389
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 50,000
Series D 8 1/8%, Preferred
Shares 125,000 125,000
Series E 7 5/8%, Preferred
Shares 133,159 -
---------- -----------
Total Preferred Shares and Units, at
Liquidation Value 408,159 275,000
Common Equity, including Minority Interest in
Operating Partnership 1,142,653 594,619
---------- -----------
Total Equity, including Minority Interest 1,553,599 871,008
---------- -----------
Total Liabilities and Equity $4,556,389 $ 2,801,343
========== ===========
----------------------------------------------
SHARES & UNITS OUTSTANDING, END OF PERIOD
---------------------------------------------------------------------
(shares and units in 000s) As of As of
6/30/2005 12/31/2004
---------- -----------
Basic
Shares 39,657 27,599
Operating Partnership Units (OP Units) 10,873 10,373
---------- -----------
Total Shares & OP Units 50,530 37,972
Dilutive Common Share Equivalents - 341
Diluted
Shares 39,657 27,940
Total Shares & OP Units 50,530 38,313
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