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SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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PURSUANT TO SECTION 13 or 15(d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): July 28, 1999
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CABOT INDUSTRIAL TRUST
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(Exact Name of Registrant as Specified in Charter)
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Maryland 1-13829 04-3397866
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(State or Other Jurisdiction (Commission (I.R.S. Employer
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of Incorporation) File Number) Identification No.)
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Two Center Plaza, Suite 200
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Boston, Massachusetts 02108
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(Address of Principal Executive Offices) (Zip Code)
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Registrant's telephone number, including area code (617) 723-0900
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CABOT INDUSTRIAL TRUST
Date: July 28, 1999 By: /s/ Neil E. Waisnor
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Neil E. Waisnor
Senior Vice President--Finance
Treasurer and Secretary
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Item 5. Other Events.
Attached as Exhibit 99.1 is a press release related to Cabot Industrial
Trust's earnings and financial position for the second quarter of 1999.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Financial Statements of Businesses Acquired or To Be Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.1 Cabot Industrial Trust Press Release
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EXHIBIT 99.1
CABOT INDUSTRIAL TRUST
TWO CENTER PLAZA
SUITE 200
BOSTON, MA 02108
(NYSE:CTR)
AT THE COMPANY
- --------------
Franz Colloredo-Mansfeld
Chief Financial Officer
(617) 723-0900
FOR IMMEDIATE RELEASE
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July 28, 1999
CABOT INDUSTRIAL TRUST REPORTS SECOND QUARTER RESULTS
$0.50 IN FFO PER SHARE; Year-over-year growth of 14%
Highlights include:
* Year-over-year growth of 14% in FFO per share and 42% in rental revenues;
* Same store cash basis NOI growth of 5%; second quarter occupancy at 97.6%;
* Acquired approximately $100 million in properties during the quarter yielding
an average of 10.5%;
* Completed debut $200 million five year bond offering with a coupon rate of
7.125%; and,
* Completed a $65 million perpetual preferred equity offering with a coupon rate
of 8.625%.
Boston, MA July 28, 1999 -- Cabot Industrial Trust (NYSE:CTR) today reported
funds from operations (FFO) per share of $0.50 for the quarter ended June 30,
1999; funds available for distribution were $0.44 per share. These results show
Cabot growing FFO per share at 14%. Rental revenues grew to $37.2 million, a 42%
increase over second quarter 1998 results.
Ferdinand Colloredo-Mansfeld CEO and Chairman of Cabot Industrial Trust
reported, "Demand for high quality industrial properties remained strong within
all of our targeted 18 industrial markets. Our property operations division
including our nine regional property management offices remains focused on
intensive property management and
<PAGE>
tenant relations. During the quarter, same store cash basis NOI increased 5%
with occupancy averaging 97%. Further, our acquisition team is finding excellent
opportunities in the marketplace, particularly for less sought after smaller
transactions. Year to date, we have raised $360 million in long-term capital
including a well-received debut bond financing. We remain well positioned for
continued strong growth." Cabot's activities in the second quarter include:
Internal growth year-over-year of 5%
During the quarter Cabot completed 1.3 million square feet of leasing. Occupancy
averaged 97% and tenant retention was 69%. Increased rents on signed leases
averaged 11% for the quarter and 12% year-to-date. The year-to-date rent
increases by property type were 8% for bulk, 21% for multitenant and 13% for
workspace. Same store cash basis NOI grew by 5% from second quarter 1998 to
second quarter 1999.
"Value" focused, single property acquisitions
Cabot continued its highly selective individual property acquisition strategy
during the second quarter. During the quarter, nine separate transactions were
completed which resulted in $100 million in total acquisitions at average annual
yields of 10.5%. Cabot's acquisitions increased its representation across seven
target markets. During the six months ended June 30, 1999, Cabot has acquired
$168 million of properties in 14 separate transactions. As defined by property
type, the 1999 acquisitions consisted of 8% bulk, 48% multitenant and 44%
workspace.
Strong capital base; 27% debt to total market capitalization
During the quarter, Cabot completed a $200 million unsecured five-year debt
offering. The bonds were priced to yield 7.192% to maturity. At June 30, 1999,
Cabot had $321 million available under its unsecured credit facility, and its
debt-to-market capitalization stood at 27%. Cabot also completed a $65 million
privately placed perpetual preferred equity offering. The coupon rate was 8.625%
and the securities are callable in five years.
Cabot Industrial Trust is a fully integrated real estate company, with offices
in Atlanta, Baltimore, Boston, Chicago, Cincinnati, Dallas, Los Angeles, Orlando
and Phoenix, which specializes in the ownership, acquisition, and development of
industrial properties. It owns 267 properties containing 32 million square feet
in 22 states. The Company also manages an additional 10 million square feet of
property for investment advisory accounts. Cabot Industrial Trust focuses on a
broad spectrum of industrial property types nationwide including large bulk
distribution facilities, multitenant distribution facilities and workspace
properties.
In addition to historical information, this press release contains forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's current
expectations about the industry and the markets in which the Company operates.
Such forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties or other factors which may cause
actual
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results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Actual operating results may be affected by
various factors including, without limitation, changes in national and local
economic conditions, competitive market conditions, uncertainties and costs
related to and the imposition of conditions on receipt of governmental approvals
and costs of material and labor, all of which may cause such actual results to
differ materially from what is expressed or forecast in this press release.
To receive Cabot Industrial Trust's latest news release and other corporate
documents please send requests via e-mail at [email protected] or visit our web-
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site at www.cabottrust.com.
-- FINANCIAL TABLES FOLLOW --
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CABOT INDUSTRIAL TRUST
SUMMARY UNAUDITED QUARTERLY RESULTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
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<S> <C> <C>
Rental Revenues $ 37,182 $ 71,320
Weighted average common shares outstanding:
Basic 37,324 33,489
Diluted 37,324 33,489
Net income per common share:
Basic $ 0.41 $ 0.68
Diluted $ 0.41 $ 0.68
Funds from operations/(1)/ $ 21,656 $ 42,956
Average shares outstanding/(2)/
Basic 43,634 43,579
Diluted 43,716 43,594
Funds from operations per common share/(2)/
Basic $ 0.50 $ 0.99
Diluted $ 0.50 $ 0.99
Occupancy Rates June 30, 1999
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Bulk Distribution Properties 97.8%
Multitenant Distribution Properties 97.6%
Workspace Properties 97.2%
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Weighted Average Total 97.6%
</TABLE>
(1) Calculated before minority interest, after preferred unit
distributions.
(2) Calculated based on weighted average common shares outstanding
assuming conversion of all partnership units outstanding
<PAGE>
<TABLE>
<CAPTION>
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
June 30, 1999 December 31, 1998
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(unaudited)
<S> <C> <C>
ASSETS
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Rental Properties $ 1,242,712 $ 1,072,675
Less: Accumulated Depreciation (28,812) (17,290)
Properties Under Development 46,334 23,108
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Net Real Estate Investments $ 1,260,234 $ 1,078,493
Cash and Cash Equivalents $ 827 $ 2,301
Rents and Other Receivables, net of reserve for
uncollectible accounts of
$388 and $312 at June 30, 1999 and December 31, 1998,
respectively 3,844 2,872
Deferred Rent Receivable 3,985 2,638
Deferred Lease Acquisition Costs, net 18,999 17,362
Deferred Financing Costs, net 3,981 1,255
Other Assets 5,710 5,649
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TOTAL ASSETS $ 1,297,580 $ 1,110,570
=============== =================
LIABILITIES AND SHAREHOLDERS' EQUITY
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LIABILITIES
Mortgage Debt $ 159,103 $ 48,206
Unsecured Debt 200,000 -
Line of Credit Borrowings 4,000 200,000
Accounts Payable and Accrued Real Estate Taxes 9,044 7,820
Tenant Security Deposits and Prepaid Rent 6,087 4,956
Distributions Payable 14,835 14,134
Other Liabilities 21,357 18,156
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Total Liabilities $ 414,426 $ 293,272
MINORITY INTEREST
8.625% Series B Cumulative Redeemable Perpetual
Preferred Units $ 63,175 $ -
Limited Partnership Units 56,642 468,311
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Total Minority Interest $ 119,817 $ 468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value, 150,000,000 shares
authorized, 40,619,420 and 18,586,764 shares issued
and outstanding at June 30, 1999 and December 31,
1998, respectively $ 406 $ 186
Additional paid-in capital 767,776 348,912
Retained deficit (4,845) (111)
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Total Shareholders' Equity $ 763,337 $ 348,987
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,297,580 $ 1,110,570
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</TABLE>
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CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
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<S> <C> <C>
REVENUES
Rental Income $ 32,004 $ 61,225
Tenant Reimbursements 5,178 10,095
Interest and Other Income 304 506
Gain on Sale of Real Estate 3,404 3,404
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Total Revenues $ 40,890 $ 75,230
EXPENSES
Property Operating $ 2,749 $ 5,429
Property Taxes 4,125 7,970
General and Administrative 2,136 4,321
Interest 5,822 10,137
Depreciation and Amortization 7,353 14,163
Settlement of Treasury Lock - 2,492
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Total Expenses $ 22,185 $ 44,512
Income Before Minority Interest $ 18,705 $ 30,718
Minority Interest $ (3,544) $ (7,866)
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Net Income $ 15,161 $ 22,852
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Weighted Average Shares Outstanding:
Basic 37,324 33,489
Diluted 37,324 33,489
Net Income per Common Share:
Basic $ 0.41 $ 0.68
Diluted $ 0.41 $ 0.68
============ ================
</TABLE>
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CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
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<S> <C> <C>
Net Income $ 15,161 $ 22,852
Add:
Minority Interest 3,544 7,866
Real Estate Related Depreciation and
Amortization 7,336 14,131
Settlement of Treasury Lock - 2,492
Preferred Unit Distributions (981) (981)
Gain on Sale of Real Estate (3,404) (3,404)
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Funds from Operations $ 21,656 $ 42,956
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Weighted Average Shares Outstanding/(1)/
Basic 43,634 43,579
Diluted 43,716 43,594
Funds from Operations per Share/(1)/
Basic $ 0.50 $ 0.99
Diluted $ 0.50 $ 0.99
========= ===========
</TABLE>
CABOT INDUSTRIAL TRUST
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, 1999 June 30, 1999
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<S> <C> <C>
Funds from Operations $ 21,656 $ 42,956
Adjustments:
Straightline Rental Income (733) (1,376)
Amortization of Deferred Financing Costs 244 408
Leasing Commissions and Tenant
Improvements (1,622) (2,793)
Building Improvements (280) (715)
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Funds Available for Distribution $ 19,265 $ 38,480
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Funds Available for Distribution per Share/(1)/
Basic $ 0.44 $ 0.88
Diluted $ 0.44 $ 0.88
========= =========
</TABLE>
(1) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
