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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
WASHINGTON, D.C. 20549
----------------------
FORM 8-K
--------
CURRENT REPORT
--------------
PURSUANT TO SECTION 13 or 15(d) OF THE
--------------------------------------
SECURITIES EXCHANGE ACT OF 1934
-------------------------------
Date of Report (Date of earliest event reported): April 28, 1999
----------------------------------------------------------------
CABOT INDUSTRIAL TRUST
----------------------
(Exact Name of Registrant as Specified in Charter)
--------------------------------------------------
Maryland 1-13829 04-3397866
- ---------------------------- ------------- -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation File Number) Identification No.)
Two Center Plaza, Suite 200
---------------------------
Boston, Massachusetts 02108
---------------------------
(Address of Principal Executive Offices) (Zip Code)
-----------------------------------------------------
Registrant's telephone number, including area code (617) 723-0900
------------------------------------------------------------------
Not Applicable
--------------
(Former Name or Former Address, if Changed Since Last Report)
-------------------------------------------------------------
<PAGE>
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 first quarter of 1999. The
summary financial results of Cabot Industrial Properties, L.P. for the same
period are attached as Exhibit 99.2.
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
99.2 Cabot Industrial Properties, L.P. Summary Financial Results
<PAGE>
SIGNATURES
----------
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: April 28, 1999 By: /s/ Neil E. Waisnor
-----------------------
Neil E. Waisnor
Senior Vice President--Finance
Treasurer and Secretary
<PAGE>
Exhibit 99.1
CABOT INDUSTRIAL TRUST
TWO CENTER PLAZA
SUITE 200
BOSTON, MA 02108
(NYSE: CTR)
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
- -------------- --------------------------------
Franz Colloredo-Mansfeld General Info: Michael Lawson
Chief Financial Officer Analyst Info: Pamela King
(617) 723-0900 (212) 661-8030
FOR IMMEDIATE RELEASE
- ---------------------
April 28,1999
CABOT INDUSTRIAL TRUST REPORTS FIRST QUARTER RESULTS
----------------------------------------------------
$0.49 IN FFO PER SHARE: 17% growth in FFO per share
Highlights include:
. Year over year growth of 17%; quarterly FFO per share of $0.49
. First quarter occupancy at 97%; annual cash basis NOI growth of 4%
. Completed 5 separate acquisitions for $68 million during quarter at 10% yields
. $13 million in developments have come on line to date at 11.8% stabilized
yields
BOSTON, MA April 28, 1999 -- Cabot Industrial Trust (NYSE: CTR) today reported
funds from operations (FFO) per share of $0.49 for the quarter ended March 31,
1999 compared to $0.42 on a pro forma basis for last year representing a 17%
increase in FFO per share. Funds available for distribution were $0.44 for the
quarter and $0.38 on a proforma basis for last year. Cabot Industrial Trust
completed its initial public offering on February 4, 1998 and comparative
results are shown herein on a proforma basis after adjusting for a partial first
quarter in 1998.
Ferdinand Colloredo-Mansfeld CEO and Chairman of Cabot Industrial Trust
reported, "All aspects of our business remain strong. We continue to experience
solid demand across the national industrial markets; leasing remains strong not
only across our existing portfolio but also for our development properties.
Further, our acquisition effort continues to benefit from reduced levels of
competition, particularly for smaller transactions. We achieved strong growth
in FFO per share, and remain well positioned for continued steady growth."
Cabot's activities in the first quarter include:
Internal year-over-year growth of 4%
During the first quarter Cabot completed 1.4 million square feet of leasing.
Occupancy remains at 97%
<PAGE>
Cabot Industrial Trust
Reports First Quarter Results
Page 2
with tenant retention at 72%. Rent increases on signed leases averaged 13%, with
29% for multitenant, 25% for workspace and 3% for bulk . As a result of this
strong activity and continued attention to tenant relations throughout Cabot's
seven regional property management offices, same store cash basis NOI grew by 4%
from first quarter 1998 to first quarter 1999.
Continued opportunity for "value" acquisitions: acquisition yields of 10%
Cabot continued its aggressive, highly selective individual property acquisition
strategy. During the first quarter it completed the acquisitions of 34
properties for $68 million in five separate transactions. The 34 properties,
located in the Cincinnati, Minneapolis, Baltimore/Washington D.C. and Dallas
markets, contain 1.7 million rentable square feet, of which 42% is multitenant
and 58% is workspace property. The properties were 98% leased and were acquired
at 10% yields.
Strong demand for development projects: 11.8% on stabilized projects
Cabot's development program is targeted toward projects with strong user demand
and reduced competition, primarily workspace and multitenant buildings. Cabot's
total development pipeline is well diversified, encompassing eleven projects in
eleven different submarkets in nine of its target markets.
Projects under development through March 31, 1999 total $89.3 million in
projected development costs and will add 1.8 million square feet of product. Of
these new properties, currently 29% have been leased or pre-leased. The 384,750
square feet in Orlando and Phoenix for which construction has been finished are
already fully leased at a blended annual stabilized yield of 11.8%. The
remaining projects are located in Ontario, California, the Baltimore-Washington
Corridor, Northern Virginia, Dallas, Atlanta, Cincinnati, and Broward County,
Florida.
Cabot Industrial Trust is a fully integrated real estate company, with offices
in Boston, Baltimore, Chicago, Los Angeles, Dallas, Orlando and Cincinnati that
specializes in the ownership, acquisition, and development of industrial
properties with 242 properties containing 30 million square feet in 21 states at
March 31, 1999. The Company also manages 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 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 via FAX at no cost, dial 1-800-PRO-INFO.
Use the company's ticker, CTR.
-FINANCIAL TABLES FOLLOW-
<PAGE>
CABOT INDUSTRIAL TRUST
SUMMARY UNAUDITED QUARTERLY RESULTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
------------------------ -------------------------
<S> <C> <C>
Rental Revenues $ 34,138 $ 14,733
Weighted average common shares outstanding:
Basic 27,873 18,587
Diluted 27,873 18,587
Net income per common share:
Basic $ 0.28 $ 0.19
Diluted $ 0.28 $ 0.19
Funds from operations (1) $ 21,300 $ 11,300
Average shares outstanding (2)
Basic 43,522 43,420
Diluted 43,523 43,618
Funds from operations per share (2)
Basic $ 0.49 $ 0.26
Diluted $ 0.49 $ 0.26
<CAPTION>
Occupancy Rates March 31, 1999
------------------------
<S> <C>
Bulk Distribution Properties 97.5 %
Multitenant Distribution Properties 96.7 %
Workspace Properties 97.5 %
------------------------
Weighted average total 97.3 %
</TABLE>
(1) Calculated before minority interest
(2) Calculated based on weighted average shares outstanding assuming
conversion of all partnership units outstanding
<PAGE>
CABOT INDUSTRIAL TRUST
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
--------------------- ------------------------
(unaudited)
<S> <C> <C>
ASSETS
Rental Properties $ 1,150,535 $ 1,072,675
Less: Accumulated Depreciation (22,912) (17,290)
Properties Under Development 32,830 23,108
----------------- ----------------
Net Real Estate Investments $ 1,160,453 $ 1,078,493
Cash and Cash Equivalents $ 34,558 $ 2,301
Rents and Other Receivables, net of reserve for uncollectible accounts
of $436 and $312 at March 31, 1999 and December 31, 1998, respectively 2,995 2,872
Deferred Rent Receivable 3,281 2,638
Deferred Lease Acquisition Costs, net 17,921 17,362
Deferred Financing Costs, net 1,910 1,255
Other Assets 3,971 5,649
------------------- ------------------
TOTAL ASSETS $ 1,225,089 $ 1,110,570
=================== ==================
LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES
Mortgage Debt $ 149,784 $ 48,206
Line of Credit Borrowings 211,000 200,000
Accounts Payable and Accrued Real Estate Taxes 8,808 7,820
Tenant Security Deposits and Prepaid Rent 5,429 4,956
Distributions Payable 14,835 14,134
Other Liabilities 18,014 18,156
----------------- ----------------
Total Liabilities $ 407,870 $ 293,272
MINORITY INTEREST $ 58,349 $ 468,311
SHAREHOLDERS' EQUITY
Common Stock, $.01 par value, 150,000,000 shares
authorized, 40,518,271 and 18,586,764 shares issued
and outstanding at March 31, 1999 and December 31,
1998, respectively $ 405 $ 186
Additional paid-in capital 761,168 348,912
Retained earnings (2,703) (111)
------------------- ------------------
Total Shareholders' Equity $ 758,870 $ 348,987
------------------- ------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,225,089 $ 1,110,570
=================== ==================
</TABLE>
<PAGE>
CABOT INDUSTRIAL TRUST
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
-------------------- -----------------------
<S> <C> <C>
REVENUES
Rental Income $ 29,221 $ 12,842
Tenant Reimbursements 4,917 1,891
Interest and Other Income 202 474
------------- -------------
Total Revenues $ 34,340 $ 15,207
EXPENSES
Property Operating $ 2,680 $ 1,042
Property Taxes 3,845 1,642
General and Administrative 2,185 1,068
Interest 4,315 155
Depreciation and Amortization 6,810 3,174
Settlement of Treasury Lock 2,492 -
--------------- -------------
Total Expenses $ 22,327 $ 7,081
Income Before Minority Interest $ 12,013 $ 8,126
Minority Interest $ (4,322) $ (4,648)
--------------- --------------
Net Income $ 7,691 $ 3,478
=============== ==============
Weighted Average Shares Outstanding:
Basic 27,873 18,587
Diluted 27,873 18,587
Net Income per Common Share:
Basic $ 0.28 $ 0.19
Diluted $ 0.28 $ 0.19
=============== ==============
</TABLE>
<PAGE>
CABOT INDUSTRIAL TRUST
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
-------------------- ----------------------
<S> <C> <C>
Net Income $ 7,691 $ 3,478
Add:
Minority Interest 4,322 4,648
Real Estate Related Depreciation and Amortization 6,795 3,174
Settlement of Treasury Lock 2,492 -
-------------- --------------
Funds from Operations $ 21,300 $ 11,300
============== ==============
Weighted Average Shares Outstanding (1)
Basic 43,522 43,420
Diluted 43,523 43,618
Funds from Operations per Share (1)
Basic $ 0.49 $ 0.26
Diluted $ 0.49 $ 0.26
============== ==============
</TABLE>
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
-------------------- ----------------------
<S> <C> <C>
Funds from Operations $ 21,300 $ 11,300
Adjustments:
Straightline Rental Income (643) (396)
Amortization of Deferred Financing Costs 164 6
Leasing Commissions and Tenant Improvements (1,171) (551)
Building Improvements (435) (147)
-------------- --------------
Funds Available for Distribution $ 19,215 $ 10,212
============== ==============
Funds Available for Distribution per Share (1)
Basic $ 0.44 $ 0.24
Diluted $ 0.44 $ 0.23
============== ==============
</TABLE>
(1) Calculated based on weighted average shares outstanding assuming conversion
of all partnership units outstanding
<PAGE>
Exhibit 99.2
CABOT INDUSTRIAL PROPERTIES, L.P.
SUMMARY UNAUDITED QUARTERLY RESULTS
(IN THOUSANDS, EXCEPT PER UNIT DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
--------------- -------------------
<S> <C> <C>
Rental Revenues $ 34,138 $ 14,733
Weighted average units outstanding:
Basic 43,522 43,420
Diluted 43,523 43,618
Net income per unit:
Basic $ 0.28 $ 0.19
Diluted $ 0.28 $ 0.19
Funds from operations $ 21,300 $ 11,300
Funds from operations per unit
Basic $ 0.49 $ 0.26
Diluted $ 0.49 $ 0.26
<CAPTION>
Occupancy Rates March 31, 1999
---------------
<S> <C>
Bulk Distribution Properties 97.5 %
Multitenant Distribution Properties 96.7 %
Workspace Properties 97.5 %
--------
Weighted average total 97.3 %
</TABLE>
<PAGE>
CABOT INDUSTRIAL PROPERTIES, L.P.
CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
---------------- ------------------
(unaudited)
<S> <C> <C>
ASSETS
Rental Properties $ 1,150,535 $ 1,072,675
Less: Accumulated Depreciation (22,912) (17,290)
Properties Under Development 32,830 23,108
----------- -----------
Net Real Estate Investments $ 1,160,453 $ 1,078,493
Cash and Cash Equivalents $ 34,558 $ 2,301
Rents and Other Receivables, net of reserve for uncollectible accounts
of $436 and $312 at March 31, 1999 and December 31, 1998, respectively 2,995 2,872
Deferred Rent Receivable 3,281 2,638
Deferred Lease Acquisition Costs, net 17,921 17,362
Deferred Financing Costs, net 1,910 1,255
Other Assets 3,971 5,649
------------- -------------
TOTAL ASSETS $ 1,225,089 $ 1,110,570
============= =============
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Mortgage Debt $ 149,784 $ 48,206
Line of Credit Borrowings 211,000 200,000
Accounts Payable and Accrued Real Estate Taxes 8,808 7,820
Tenant Security Deposits and Prepaid Rent 5,429 4,956
Distributions Payable 14,835 14,134
Other Liabilities 18,014 18,156
----------- -----------
Total Liabilities $ 407,870 $ 293,272
PARTNERS' EQUITY
General Partner $ 758,870 $ 348,987
Limited Partners 58,349 468,311
------------- -------------
Total Partners' Equity $ 817,219 $ 817,298
------------- -------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 1,225,089 $ 1,110,570
============= =============
</TABLE>
<PAGE>
CABOT INDUSTRIAL PROPERTIES, L.P.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER UNIT DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
---------------- -------------------
<S> <C> <C>
REVENUES
Rental Income $ 29,221 $ 12,842
Tenant Reimbursements 4,917 1,891
Interest and Other Income 202 474
---------------- -------------------
Total Revenues $ 34,340 $ 1,207
EXPENSES
Property Operating $ 2,680 $ 1,042
Property Taxes 3,845 1,642
General and Administrative 2,185 1,068
Interest 4,315 155
Depreciation and Amortization 6,810 3,174
Settlement of Treasury Lock 2,492 -
---------------- -------------------
Total Expenses $ 22,327 $ 7,081
Net Income $ 12,013 $ 8,126
================ ===================
Weighted Average Units Outstanding:
Basic 43,522 43,420
Diluted 43,523 43,618
Net Income per Unit:
Basic $ 0.28 $ 0.19
Diluted $ 0.28 $ 0.19
================ ===================
</TABLE>
<PAGE>
CABOT INDUSTRIAL PROPERTIES, L.P.
FUNDS FROM OPERATIONS
(UNAUDITED, IN THOUSANDS, EXCEPT PER UNIT DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
--------------- ------------------
<S> <C> <C>
Net Income $ 12,013 $ 8,126
Add:
Real Estate Related Depreciation and Amortization 6,795 3,174
Settlement of Treasury Lock 2,494 -
---------- ----------
Funds from Operations $ 21,300 $ 11,300
========== ==========
Weighted Average Units Outstanding
Basic 43,522 43,420
Diluted 43,523 43,618
Funds from Operations per Unit
Basic $ 0.49 $ 0.26
Diluted $ 0.49 $ 0.26
========== ==========
</TABLE>
CABOT INDUSTRIAL PROPERTIES, L.P.
FUNDS AVAILABLE FOR DISTRIBUTION
(UNAUDITED, IN THOUSANDS, EXCEPT PER UNIT DATA)
<TABLE>
<CAPTION>
Period from
February 4, 1998
Quarter Ended (Inception) through
March 31, 1999 March 31, 1998
--------------- ------------------
<S> <C> <C>
Funds from Operations $ 21,300 $ 11,300
Adjustments:
Straightline Rental Income (643) (396)
Amortization of Deferred Financing Costs 164 6
Leasing Commissions and Tenant Improvements (1,171) (551)
Building Improvements (435) (147)
========== ==========
Funds Available for Distribution $ 19,215 $ 10,212
========== ==========
Funds Available for Distribution per Unit
Basic $ 0.44 $ 0.24
Diluted $ 0.44 $ 0.23
========== ==========
</TABLE>
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