Centerpoint Properties Trust (CNT) Inactive
Filed: 28 Jan 04, 12:00am
Exhibit 99.1
| 1808 Swift Drive |
AT THE COMPANY: |
| John S. Gates, Jr. |
| Paige H. Gilchrist |
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| Co-Chairman & CEO |
| Vice President, External Affairs |
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| 630.586.8101 |
For Immediate Release |
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January 22, 2004 |
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CENTERPOINT COMPLETES $48 MILLION TIF SALE
2003 FFO Guidance Increased, 2004 FFO Guidance Unchanged
Oak Brook, Illinois, January 22, 2004 – CenterPoint Properties Trust (NYSE: CNT) today announced the sale of $48 million of Tax Increment Financing Notes (“TIF Notes”). These 10% tax exempt TIF Notes represent a portion of those issued by Elwood, Illinois, to reimburse the Company for infrastructure and other costs it incurred in connection with the redevelopment of the former Joliet Arsenal into CenterPoint Intermodal Center (“CIC”). To date, approximately $88 million of CIC TIF Notes have been issued to CenterPoint. The Company retains approximately $64 million of these TIF Notes, which includes TIF Notes issued for previously accrued interest, after the sale announced today.
• Structure: Today’s sale was non-recourse to an independent trust. The trust in turn sold $48 million in senior participations to institutional investors and issued approximately $4.2 million of junior participations to the Company. The junior participations and the remainder of the CIC TIF Notes retained by the Company are payable after the senior participations are paid. The CIC TIF Notes are repaid solely from real estate and sales taxes created by the development from 2000 to 2023. The initial interest rate on the participations is 8% and will be reset to the then market tax-exempt rate annually after five years. As a result, the Company believes the cost of these 20-year participations will be 6.25-6.75%. Lehman Brothers was sole manager of the transaction.
• Proceeds: After expenses, the Company received net proceeds of about $46 million. This will be used to retire debt and to establish reserves for the participations sold. The junior participations and the CIC TIF Notes retained by the Company are expected to be sold in subsequent transactions as development progresses and real estate taxes mature at the park.
“This transaction sources extremely low cost capital for CenterPoint and positions us to complete similar sales in the future,” stated John Gates, Co-Chairman and CEO of CenterPoint. “Such sales generate cash – in this case $46 million – without shareholder dilution or the sale of income producing assets.”
CenterPoint Acquires Village Share of CIC TIF Notes
Originally, Elwood retained a senior position in the CIC TIF notes (the “Village Share”). However in December 2003, in order to facilitate the sale announced today, the Company acquired the Village Share. As a result, 100% of the expected tax increment is now pledged to the CIC TIF Notes. The Company also negotiated with Elwood to increase the amount of the Company’s reimbursable costs from $125 million to $135 million. The Company expects further CIC TIF Notes to be issued as it submits reimbursable costs to Elwood. The Company retains the right to submit up to $47 million in additional costs, subject to available tax payments from the park. The Company and Elwood continue the previous sharing arrangement if taxes exceed those necessary to pay the CIC TIF Note obligations.
Change in Accounting Principles for CIC TIF Notes Receivable
The completion of the sale and progress at CIC prompted a review and change in accounting for the CIC TIF Notes receivable. The Company’s auditors, PricewaterhouseCoopers (“PwC”), initiated the review and have endorsed this change. The Company and its auditors believe the change more closely aligns the accounting with the substance of the CIC TIF Notes and better reflects the substance of the announced sale. This change in principle is not related to a change in GAAP, but is an expression of a preference among alternative treatments of the CIC TIF Notes under GAAP.
- More -
Gates noted, “The change in accounting principle announced today will better reflect the CIC TIF income and will recognize at least some of the value of the TIF assets held by CenterPoint. It leaves the financial substance of the TIF Note sale unchanged: the generation of cash capital with no repayment obligation on the part of the Company.” The revised accounting attributable to the change in principle is shown in the attached schedule.
2003 Guidance
GAAP requires a change in accounting principle to be adopted retroactively to the beginning of the company’s fiscal year in the year of the change. GAAP also requires that the impact of the change on prior years be presented in the year of the change as a “cumulative effect of a change in accounting principle”. As a result, when the Company reports its full year results for 2003, it will make the following adjustments:
• 2003 results will reflect $3.5 million in additional net income; and
• First quarter 2003 will be adjusted to include $6.6 million in additional net income relating to 2002.
The Company is adjusting its full year 2003 funds from operations (“FFO”) per share guidance to reflect the increases net income attributable only to 2003. The $6.6 million increase in net income attributable to 2002 will not be added to FFO. Therefore, the Company is revising its 2003 FFO per share guidance from $4.00 to $4.02 and now expects to report $4.13 to $4.15. Fourth quarter 2003 FFO per share guidance remains $0.94 to $0.96. The Company expects to report 2003 earnings per share (“EPS”) in the range of $3.13 to $3.16 and fourth quarter 2003 EPS of $0.70 to $0.72.
2004 Guidance
The Company remains comfortable with previously announced FFO per share guidance for full year 2004 of $4.55 to $4.75 and for first quarter 2004 of $1.08 to $1.12 per share. The Company expects to report 2004 EPS in the range of $3.25 to $3.65 and first quarter 2004 EPS of $0.75 to $0.83.
CenterPoint defines FFO as: net income available to common shareholders plus real estate depreciation and non-financing amortization, inclusive of fee income and gain or losses on industrial property sales (net of accumulated depreciation) of the Company and its unconsolidated affiliates. See attached Reconciliation of Net Income to Funds from Operations schedule.
About CenterPoint Properties
CenterPoint is a publicly traded real estate investment trust (REIT) and the largest industrial property company in the 1.3 billion-square-foot Chicago regional market. It currently owns and operates approximately 32 million square feet and owns or controls an additional 3,240 acres of land upon which 50 million square feet could be developed. The Company is focused on providing unsurpassed tenant satisfaction and adding value to its shareholders through customer driven management, investment, development and redevelopment of warehouse, distribution, light manufacturing buildings and logistics infrastructure. The first major REIT to focus on the industrial property sector, CenterPoint had a total market capitalization of approximately $2.4 billion as of September 30, 2003.
Statements in this release which are not historical may be deemed forward-looking statements under federal securities laws. There can be no assurance that future results will be achieved and actual results could differ materially from forecasts and estimates. Factors that could cause actual results to differ materially are general business and economic conditions, completion of pending acquisitions, competitive market conditions, weather, pricing of debt and equity capital markets and other risks inherent in the real estate business. Such factors and others are listed in the Company’s Form 10-K or 10-Q.
An Investor conference call will be held at 2:00p.m. CT, 3:00p.m. ET on January 22, 2004. It will also be broadcast live on www.centerpoint-prop.com. To listen to the webcast, your computer must have Media Player installed. If you do not have Media Player, the CenterPoint website will have instructions for installing a Media Player at the Pre-event System Test link. An online replay will also be available approximately one hour after the call. A replay of the call will be available after 4:30 p.m. CT on January 22, 2004. The replay number is (888) 266-2081, passcode 375490.
###
Accounting Schedule
• Original Accounting Principle Summarized: Under the accounting principle originally followed by the Company, all TIF Notes were accounted for as cost reimbursement arrangements. They were recognized as assets only after collectibility of the receivable had been demonstrated. Upon recognition of the TIF Notes, the underlying asset cost was decreased and interest income was recorded. As a result, the Company has recognized earnings indirectly through the increase in gains realized upon the sale of properties subject to recognized TIF Notes.
• New Accounting Principle Summarized: The Company has adopted a new accounting principle for instances where the source of real estate taxes is solely owned by the Company. These CIC TIF Notes will be accounted for as a real estate tax abatement because there is no outside entity helping to fund underlying improvements. The Company’s investment at CIC at one time encompassed the entirety of the Elwood TIF district. Accordingly, when the Company accrues real estate taxes for owned parcels at CIC, the Company will record an offsetting abatement in real estate taxes, reflecting the fact that the city of Elwood must refund the Company for such taxes paid. This reduces the Company’s real estate tax expense and increases net income. No TIF Notes assets are recognized on properties owned while the Company is the owner of the properties that are the sole source of real estate taxes. The change will not affect the accounting for the Company’s other two series of TIF Note receivables unrelated to CIC. In those cases, the Company only owns a portion of a larger TIF district and a change in accounting principle is not required.
• Accounting for Certain Property Sales: The change in principle will affect the way the Company accounts for sales of property that it owns in any TIF district where the Company’s owned properties are the sole source of real estate taxes. When such a sale occurs, a TIF note receivable will be recognized in respect to the property for the present value of anticipated real estate taxes during the TIF period. This is due to the fact that the Company will no longer pay that portion of the underlying taxes. Simultaneous with the sale of the property, the underlying asset cost of the sold property is reduced by the amount of the note, increasing the realized gain on the sold property.
• Accounting for Sales of CIC TIF Notes: Proceeds from the sale announced today, to the extent that they exceed the Company’s recognized value for the CIC TIF Notes (established when parcels of CIC have been sold to third parties, as discussed above), will be matched by the recognition of a liability on the Company’s books. This liability represents the Company’s responsibility to pay real estate taxes on owned portions of the CIC, which will in turn be used to service the buyers of the TIF Notes. This liability will be retired from real estate collections on sold property and will be reduced by the amount of any additional notes booked when CIC property is sold by the Company.
• Accounting for TIF Liabilities: Notwithstanding this GAAP treatment, the TIF liability is not intended to reflect a legal obligation of CenterPoint in any respect and will be excluded in determining compliance with the Company’s debt covenants. The Company expects the sale announced today to result in an initial GAAP TIF liability of approximately $31 million. While interest expense will be recorded for this liability, it will be offset by the reduction in real estate expense, both mandated by the new accounting principles.
- Financial Statements to Follow -
CENTERPOINT PROPERTIES TRUST AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
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| March 31, 2003 |
| June 30, 2003 |
| September 30, 2003 |
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| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
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Assets: |
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Investment in real estate: |
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Land |
| $ | 178,417 |
| $ | — |
| $ | 178,417 |
| $ | 179,331 |
| $ | — |
| $ | 179,331 |
| $ | 185,143 |
| $ | — |
| $ | 185,143 |
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Buildings |
| 777,963 |
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| 777,963 |
| 778,999 |
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| 778,999 |
| 787,277 |
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| 787,277 |
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Building improvements |
| 134,234 |
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| 134,234 |
| 137,949 |
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| 137,949 |
| 142,049 |
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| 142,049 |
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Furniture, fixtures, and equipment |
| 23,134 |
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| 23,134 |
| 23,653 |
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| 23,653 |
| 23,943 |
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| 23,943 |
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Construction in progress |
| 114,279 |
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| 114,279 |
| 110,454 |
| (2,786 | ) | 107,668 |
| 98,965 |
| (5,431 | ) | 93,534 |
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| 1,228,027 |
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| 1,228,027 |
| 1,230,386 |
| (2,786 | ) | 1,227,600 |
| 1,237,377 |
| (5,431 | ) | 1,231,946 |
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Less accumulated depreciation |
| (151,420 | ) |
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| (151,420 | ) | (157,845 | ) |
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| (157,845 | ) | (165,617 | ) |
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Real estate held for sale, net of depreciation |
| 33,100 |
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| 33,100 |
| 29,848 |
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| 29,848 |
| 14,414 |
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| 14,414 |
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Net investment in real estate |
| 1,109,707 |
| — |
| 1,109,707 |
| 1,102,389 |
| (2,786 | ) | 1,099,603 |
| 1,086,174 |
| (5,431 | ) | 1,080,743 |
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Cash and cash equivalents |
| 3,894 |
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| 3,894 |
| 2,597 |
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| 2,597 |
| 5,693 |
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| 5,693 |
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Restricted cash |
| 44,245 |
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| 44,245 |
| 40,194 |
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| 40,194 |
| 43,824 |
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| 43,824 |
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Tenant accounts receivable, net |
| 32,629 |
| 437 |
| 33,066 |
| 34,808 |
| 394 |
| 35,202 |
| 35,823 |
| 247 |
| 36,070 |
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Mortgage and notes receivable |
| 54,338 |
| 9,727 |
| 64,065 |
| 89,328 |
| 11,717 |
| 101,045 |
| 96,229 |
| 13,707 |
| 109,936 |
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Investment in and advances to affiliate |
| 33,552 |
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| 33,552 |
| 40,149 |
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| 40,149 |
| 45,409 |
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| 45,409 |
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Prepaid expenses and other assets |
| 10,652 |
| 560 |
| 11,212 |
| 12,476 |
| 1,114 |
| 13,590 |
| 15,920 |
| 1,664 |
| 17,584 |
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Deferred expenses, net |
| 15,155 |
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| 15,155 |
| 16,933 |
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| 16,933 |
| 24,062 |
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| 24,062 |
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| $ | 1,304,172 |
| $ | 10,724 |
| $ | 1,314,896 |
| $ | 1,338,874 |
| $ | 10,439 |
| $ | 1,349,313 |
| $ | 1,353,134 |
| $ | 10,187 |
| $ | 1,363,321 |
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Liabilities and shareholders’ equity |
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Mortgage notes payable and other debt |
| $ | 60,612 |
| $ | — |
| $ | 60,612 |
| $ | 82,973 |
| $ | — |
| $ | 82,973 |
| $ | 70,373 |
| $ | — |
| $ | 70,373 |
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Senior unsecured debt |
| 350,000 |
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| 350,000 |
| 350,000 |
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| 350,000 |
| 500,000 |
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| 500,000 |
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Tax-exempt debt |
| 94,420 |
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| 94,420 |
| 94,420 |
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| 94,420 |
| 94,420 |
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| 94,420 |
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Line of credit |
| 201,000 |
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| 201,000 |
| 199,700 |
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| 199,700 |
| 139,700 |
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| 139,700 |
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Preferred dividends payable |
| 1,060 |
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| 1,060 |
| — |
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| — |
| — |
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| — |
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Accounts payable |
| 1,298 |
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| 1,298 |
| 5,116 |
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| 5,116 |
| 4,227 |
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| 4,227 |
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Accrued expenses |
| 53,593 |
| 437 |
| 54,030 |
| 67,437 |
| 394 |
| 67,831 |
| 66,927 |
| 247 |
| 67,174 |
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Rents received in advance and security deposits |
| 11,852 |
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| 11,852 |
| 10,415 |
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| 10,415 |
| 11,305 |
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| 11,305 |
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| 773,835 |
| 437 |
| 774,272 |
| 810,061 |
| 394 |
| 810,455 |
| 886,952 |
| 247 |
| 887,199 |
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Shareholders’ equity: |
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Preferred equity |
| 119,611 |
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| 119,611 |
| 119,614 |
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| 119,614 |
| 47,668 |
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| 47,668 |
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Common equity |
| 484,580 |
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| 484,580 |
| 485,955 |
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| 485,955 |
| 488,232 |
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| 488,232 |
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Retained earnings (deficit) |
| (52,885 | ) | 10,287 |
| (42,598 | ) | (52,873 | ) | 10,045 |
| (42,828 | ) | (49,336 | ) | 9,940 |
| (39,396 | ) | |||||||||
Other comprehensive loss |
| (5,676 | ) |
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| (5,676 | ) | (9,122 | ) |
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| (9,122 | ) | (6,181 | ) |
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| (6,181 | ) | |||||||||
Unearned compensation - restricted shares |
| (15,293 | ) |
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| (15,293 | ) | (14,761 | ) |
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| (14,761 | ) | (14,201 | ) |
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| (14,201 | ) | |||||||||
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| 530,337 |
| 10,287 |
| 540,624 |
| 528,813 |
| 10,045 |
| 538,858 |
| 466,182 |
| 9,940 |
| 476,122 |
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| $ | 1,304,172 |
| $ | 10,724 |
| $ | 1,314,896 |
| $ | 1,338,874 |
| $ | 10,439 |
| $ | 1,349,313 |
| $ | 1,353,134 |
| $ | 10,187 |
| $ | 1,363,321 |
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CENTERPOINT PROPERTIES TRUST AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
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| Three Months Ended March 31, 2003 |
| Three Months Ended June 30, 2003 |
| Three Months Ended September 30, 2003 |
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| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
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Revenue: |
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Minimum rents |
| $ | 27,751 |
| $ | — |
| $ | 27,751 |
| $ | 27,712 |
| $ | — |
| $ | 27,712 |
| $ | 28,655 |
| $ | — |
| $ | 28,655 |
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Straight-line rents |
| 348 |
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| 348 |
| 805 |
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| 805 |
| 1,666 |
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| 1,666 |
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Expense reimbursements |
| 8,658 |
| 234 |
| 8,892 |
| 8,343 |
| 154 |
| 8,497 |
| 8,418 |
| 102 |
| 8,520 |
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Mortgage interest income |
| 321 |
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| 321 |
| 369 |
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| 369 |
| 343 |
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| 343 |
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Real estate fee income |
| 4,101 |
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| 4,101 |
| 2,770 |
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| 2,770 |
| 3,607 |
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| 3,607 |
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Total revenue |
| 41,179 |
| 234 |
| 41,413 |
| 39,999 |
| 154 |
| 40,153 |
| 42,689 |
| 102 |
| 42,791 |
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Expenses: |
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Real estate taxes |
| 8,791 |
| (179 | ) | 8,612 |
| 8,559 |
| (174 | ) | 8,385 |
| 8,106 |
| (173 | ) | 7,933 |
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Property operating and leasing |
| 6,230 |
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| 6,230 |
| 6,162 |
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| 6,162 |
| 5,648 |
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| 5,648 |
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General and administrative |
| 1,721 |
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| 1,721 |
| 1,781 |
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| 1,781 |
| 1,785 |
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| 1,785 |
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Depreciation and amortization |
| 8,724 |
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| 8,724 |
| 8,629 |
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| 8,629 |
| 9,177 |
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| 9,177 |
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Interest expense: |
| — |
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| — |
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| — |
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Interest incurred, net |
| 5,335 |
| (147 | ) | 5,188 |
| 5,240 |
| (226 | ) | 5,014 |
| 7,174 |
| (275 | ) | 6,899 |
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Amortization of deferred financing costs |
| 943 |
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| 943 |
| 811 |
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| 811 |
| 741 |
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| 741 |
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Total expenses |
| 31,744 |
| (326 | ) | 31,418 |
| 31,182 |
| (400 | ) | 30,782 |
| 32,631 |
| (448 | ) | 32,183 |
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Income from continuing operations before income taxes, equity in net income of affiliate and cumulative effect of change in accounting principle |
| 9,435 |
| 560 |
| 9,995 |
| 8,817 |
| 554 |
| 9,371 |
| 10,058 |
| 550 |
| 10,608 |
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Provision for income taxes (expense) benefit |
| 331 |
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| 331 |
| (117 | ) |
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| (117 | ) | (1,558 | ) |
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| (1,558 | ) | |||||||||
Equity in net income of affiliate |
| 3 |
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| 3 |
| 705 |
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| 705 |
| 780 |
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| 780 |
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Income from continuing operations |
| 9,769 |
| 560 |
| 10,329 |
| 9,405 |
| 554 |
| 9,959 |
| 9,280 |
| 550 |
| 9,830 |
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Discontinued operations: |
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Gain on sale, net of tax |
| 8,323 |
| 3,130 |
| 11,453 |
| 6,181 |
| (796 | ) | 5,385 |
| 7,021 |
| (655 | ) | 6,366 |
| |||||||||
Income from discontinued operations, net of tax |
| 108 |
|
|
| 108 |
| 625 |
|
|
| 625 |
| 484 |
|
|
| 484 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Income before gain on sale of real estate and cumulative effect of change in accounting principle |
| 18,200 |
| 3,690 |
| 21,890 |
| 16,211 |
| (242 | ) | 15,969 |
| 16,785 |
| (105 | ) | 16,680 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Gain on sale of real estate, net of tax |
| — |
| — |
| — |
| 2,915 |
| — |
| 2,915 |
| 2,027 |
| — |
| 2,027 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Income before cumulative effect of change in accounting principle |
| 18,200 |
| 3,690 |
| 21,890 |
| 19,126 |
| (242 | ) | 18,884 |
| 18,812 |
| (105 | ) | 18,707 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Cumulative effect of change in accounting principle |
| — |
| 6,597 |
| 6,597 |
| — |
|
|
| — |
| — |
|
|
| — |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net Income |
| 18,200 |
| 10,287 |
| 28,487 |
| 19,126 |
| (242 | ) | 18,884 |
| 18,812 |
| (105 | ) | 18,707 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Preferred dividends |
| (2,523 | ) |
|
| (2,523 | ) | (4,996 | ) |
|
| (4,996 | ) | (1,158 | ) |
|
| (1,158 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net income available to common shareholders |
| $ | 15,677 |
| $ | 10,287 |
| $ | 25,964 |
| $ | 14,130 |
| $ | (242 | ) | $ | 13,888 |
| $ | 17,654 |
| $ | (105 | ) | $ | 17,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Per share income available to common shareholders from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Basic |
| $ | 0.31 |
| $ | 0.03 |
| $ | 0.34 |
| $ | 0.32 |
| $ | 0.02 |
| $ | 0.34 |
| $ | 0.44 |
| $ | 0.02 |
| $ | 0.46 |
|
Diluted |
| $ | 0.31 |
| $ | 0.02 |
| $ | 0.33 |
| $ | 0.31 |
| $ | 0.02 |
| $ | 0.33 |
| $ | 0.43 |
| $ | 0.02 |
| $ | 0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Per share income from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Basic |
| $ | 0.37 |
| $ | 0.12 |
| $ | 0.49 |
| $ | 0.30 |
| $ | (0.03 | ) | $ | 0.27 |
| $ | 0.33 |
| $ | (0.03 | ) | $ | 0.30 |
|
Diluted |
| $ | 0.35 |
| $ | 0.14 |
| $ | 0.49 |
| $ | 0.29 |
| $ | (0.03 | ) | $ | 0.26 |
| $ | 0.31 |
| $ | (0.02 | ) | $ | 0.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Per share income from cumulative effect of change in accounting principle |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Basic |
| $ | — |
| $ | 0.29 |
| $ | 0.29 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
Diluted |
| $ | — |
| $ | 0.28 |
| $ | 0.28 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Per share net income available to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Basic |
| $ | 0.68 |
| $ | 0.44 |
| $ | 1.12 |
| $ | 0.62 |
| $ | (0.01 | ) | $ | 0.61 |
| $ | 0.77 |
| $ | (0.01 | ) | $ | 0.76 |
|
Diluted |
| $ | 0.66 |
| $ | 0.44 |
| $ | 1.10 |
| $ | 0.60 |
| $ | (0.01 | ) | $ | 0.59 |
| $ | 0.74 |
| $ | — |
| $ | 0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Distributions per share |
| $ | 0.6075 |
|
|
| $ | 0.6075 |
| $ | 0.6075 |
|
|
| $ | 0.6075 |
| $ | 0.6075 |
|
|
| $ | 0.6075 |
| |||
CENTERPOINT PROPERTIES TRUST AND SUBSIDIARIES
FUNDS ANALYSIS (UNAUDITED)
(in thousands, except share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
|
| Three Months Ended March 31, 2003 |
| Three Months Ended June 30, 2003 |
| Three Months Ended September 30, 2003 |
| |||||||||||||||||||||
|
| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
| Reported |
| Adjustment |
| As Adjusted |
| |||||||||
Funds from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net income available to common shareholders |
| $ | 15,677 |
| $ | 10,287 |
| $ | 25,964 |
| $ | 14,130 |
| $ | (242 | ) | $ | 13,888 |
| $ | 17,654 |
| $ | (105 | ) | $ | 17,549 |
|
Add back/(deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Depreciation and amortization, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Continuing operations |
| 8,442 |
|
|
| 8,442 |
| 8,400 |
|
|
| 8,400 |
| 8,931 |
|
|
| 8,931 |
| |||||||||
Discontinued operations |
| 112 |
|
|
| 112 |
| 211 |
|
|
| 211 |
| 125 |
|
|
| 125 |
| |||||||||
Unconsolidated subsidiaries |
| 82 |
|
|
| 82 |
| 124 |
|
|
| 124 |
| 277 |
|
|
| 277 |
| |||||||||
Accumulated depreciation on sold industrial assets, net of tax |
| (492 | ) |
|
| (492 | ) | (844 | ) |
|
| (844 | ) | (679 | ) |
|
| (679 | ) | |||||||||
Cumulative effect of change in accounting principle |
|
|
| (6,597 | ) | (6,597 | ) |
|
| — |
| — |
|
|
| — |
| — |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Funds from operations |
| $ | 23,821 |
| $ | 3,690 |
| $ | 27,511 |
| $ | 22,021 |
| $ | (242 | ) | $ | 21,779 |
| $ | 26,308 |
| $ | (105 | ) | $ | 26,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Funds from operations per share |
| $ | 1.01 |
| $ | 0.15 |
| $ | 1.16 |
| $ | 0.93 |
| $ | (0.01 | ) | $ | 0.92 |
| $ | 1.11 |
| $ | (0.01 | ) | $ | 1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Reconciliation of average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Basic Shares - GAAP |
| 23,109,149 |
| 23,109,149 |
| 23,109,149 |
| 22,936,554 |
| 22,936,554 |
| 22,936,554 |
| 23,010,966 |
| 23,010,966 |
| 23,010,966 |
| |||||||||
Add: Stock options/grants - common share equivalents |
| 577,615 |
| 577,615 |
| 577,615 |
| 682,019 |
| 682,019 |
| 682,019 |
| 746,030 |
| 746,030 |
| 746,030 |
| |||||||||
Diluted shares - GAAP/FFO |
| 23,686,764 |
| 23,686,764 |
| 23,686,764 |
| 23,618,573 |
| 23,618,573 |
| 23,618,573 |
| 23,756,996 |
| 23,756,996 |
| 23,756,996 |
| |||||||||
Note:
Funds From Operations (FFO) – The National Associations of Real Estate Investment Trust (“NAREIT”) defines funds from operations (“FFO”) (April, 2002 White Paper) as net income excluding gains (or losses) from sales of property, plus depreciation and amortization. NAREIT adds, “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” Accordingly, CenterPoint calculates FFO, inclusive of fee income and industrial property sales (net of accumulated depreciation) of the Company and its unconsolidated affiliates. The Company believes that FFO inclusive of cash gains better reflects recurring funds because the disposition of stabilized properties, and the recycling of capital and profits into new “value added” investments, is fundamental to the company’s business strategy.