Exhibit 99.7
COLONY FINANCIAL, INC.
Pro forma consolidated statements of operations for the six months ended June 30, 2010 and
for the period from June 23, 2009 (Date of Inception) to December 31, 2009 (unaudited)
COLONY FINANCIAL, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Six Months Ended June 30, 2010 | ||||||||||||
| Pro Forma | ||||||||||||
| As Reported | Adjustments | Adjusted | ||||||||||
Income | ||||||||||||
Equity in income of unconsolidated joint ventures | $ | 9,238 | $ | 1,661 | (a) | $ | 10,899 | |||||
Interest income | 624 | 624 | ||||||||||
Total income | 9,862 | 1,661 | 11,523 | |||||||||
Expenses | ||||||||||||
Base management fees | 1,459 | 210 | (b) | 1,669 | ||||||||
Investment expenses | 280 | 280 | ||||||||||
Administrative expenses | 1,814 | 1,814 | ||||||||||
Administrative expenses reimbursed to affiliate | 570 | 570 | ||||||||||
Total expenses | 4,123 | 210 | 4,333 | |||||||||
Foreign exchange loss, net of gain on foreign currency hedge of $66 | (52 | ) | (52 | ) | ||||||||
Net income | 5,687 | 1,451 | 7,138 | |||||||||
Net income attributable to noncontrolling interest | 7 | 7 | ||||||||||
Net income attributable to common stockholders | $ | 5,680 | $ | 1,451 | $ | 7,131 | ||||||
Net income per share: | ||||||||||||
Basic | $ | 0.39 | $ | 0.49 | ||||||||
Diluted | $ | 0.38 | $ | 0.48 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 14,625,000 | 14,625,000 | ||||||||||
Diluted | 14,912,500 | 14,912,500 | ||||||||||
See notes to unaudited pro forma consolidated financial statements.
COLONY FINANCIAL, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Period from June 23, 2009 (Date of Inception) to December 31, 2009 | ||||||||||||
| Pro Forma | ||||||||||||
| As Reported | Adjustments | Adjusted | ||||||||||
Income | ||||||||||||
Equity in income of unconsolidated joint ventures | $ | 663 | $ | 2,393 | (a) | $ | 3,056 | |||||
Interest income | 428 | 428 | ||||||||||
Total income | 1,091 | 2,393 | 3,484 | |||||||||
Expenses | ||||||||||||
Base management fees | 196 | 198 | (b) | 394 | ||||||||
Investment expenses | 175 | 175 | ||||||||||
Administrative expenses | 816 | 816 | ||||||||||
Administrative expenses reimbursed to affiliate | 302 | 302 | ||||||||||
Total expenses | 1,489 | 198 | 1,687 | |||||||||
Net (loss) income | (398 | ) | 2,195 | 1,797 | ||||||||
Net income attributable to noncontrolling interest | 2 | 2 | ||||||||||
Net (loss) income attributable to common stockholders | $ | (400 | ) | $ | 2,195 | $ | 1,795 | |||||
Net (loss) income per share: | ||||||||||||
Basic | $ | (0.06 | ) | $ | 0.26 | |||||||
Diluted | $ | (0.06 | ) | $ | 0.25 | (c) | ||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 6,963,000 | 6,963,000 | ||||||||||
Diluted | 6,963,000 | 7,099,000 | (c) | |||||||||
See notes to unaudited pro forma consolidated financial statements.
COLONY FINANCIAL, INC.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
| 1. | Pro Forma Adjustments |
After the close of business on June 30, 2010, ColFin FRB Investor, LLC (“FRB Investor”), an unconsolidated joint venture in which Colony Financial, Inc. (the “Company”) held a 5.91% ownership interest, completed its previously announced acquisition of a 21.8% interest in First Republic Bank from Merrill Lynch Bank & Trust Company, a subsidiary of Bank of America Corporation.
The unaudited pro forma consolidated statements of operations give effect to the acquisition of an approximate 1.3% indirect interest in First Republic Bank on June 30, 2010. The pro forma statements of operations for the six months ended June 30, 2010 and period from June 23, 2009 (date of inception) to December 31, 2009 include adjustments to reflect the acquisition as if it had occurred at the beginning of the period. The following adjustments are included:
| (a) | Represents recognition of the Company’s share of First Republic Bank’s net income for the period. |
| (b) | Represents additional base management fee the Company would have incurred for the period. |
| (c) | Reflects the dilutive effect of common stock issuable to the Company’s Manager for reimbursement of underwriting discounts and commissions. Such shares were excluded in the historical diluted weighted average shares as the effect of their inclusion would have been antidilutive due to the reported net loss for the period from June 23, 2009 (date of inception) to December 31, 2009. |
