Attached files
file | filename |
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8-K - FORM 8-K - DCT Industrial Trust Inc. | d8k.htm |
EX-99.1 - PRESS RELEASE DATED FEBRUARY 8, 2011 - DCT Industrial Trust Inc. | dex991.htm |
Exhibit 99.2
Table of Contents
Consolidated Statements of Operations |
3 | |
Consolidated Balance Sheets |
4 | |
Funds from Operations |
5 | |
Selected Financial Data |
6 | |
Property Overview |
7-8 | |
Consolidated Leasing Summary |
9 | |
Customer and Industry Diversification |
10 | |
Acquisition and Disposition Summary |
11 | |
Development Overview |
12 | |
Indebtedness |
13 | |
Capitalization and Fixed Charge Coverage |
14 | |
Institutional Capital Management Summary |
15 | |
Definitions |
16-17 |
Forward Looking Statement
We make statements in this report that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as anticipates, believes, estimates, expects, intends, may, plans, projects, seeks, should, will, and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation:
| national, international, regional and local economic conditions, including, in particular, the continuing impact of the economic recession that began in 2007 and the strength of the economic recovery; |
| the general level of interest rates and the availability of capital; |
| the competitive environment in which we operate; |
| real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; |
| decreased rental rates or increasing vacancy rates; |
| defaults on or non-renewal of leases by tenants; |
| acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; |
| the timing of acquisitions and dispositions; |
| natural disasters such as fires, hurricanes and earthquakes; |
| energy costs; |
| the terms of governmental regulations that affect us and interpretations of those regulations, including the cost of compliance with those regulations, changes in real estate and zoning laws and increases in real property tax rates; |
| financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal, interest and other commitments; |
| lack of or insufficient amounts of insurance; |
| litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; |
| the consequences of future terrorist attacks or civil unrest; |
| possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties; |
| presently owned or previously owned by us; and |
| other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. |
In addition, our current and continuing qualification as a real estate investment trust, or REIT, involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.
Fourth Quarter 2010 Supplemental Reporting Package |
Page 2 |
Consolidated Statements of Operations
(unaudited, amounts in thousands, except per share data)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
REVENUES: |
||||||||||||||||
Rental revenues |
$ | 59,119 | $ | 59,541 | $ | 235,284 | $ | 239,964 | ||||||||
Institutional capital management and other fees |
1,082 | 653 | 4,133 | 2,701 | ||||||||||||
Total revenues |
60,201 | 60,194 | 239,417 | 242,665 | ||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Rental expenses |
8,212 | 7,448 | 33,527 | 32,532 | ||||||||||||
Real estate taxes |
7,889 | 8,150 | 35,963 | 34,493 | ||||||||||||
Real estate related depreciation and amortization |
29,368 | 28,516 | 115,123 | 109,420 | ||||||||||||
General and administrative |
6,735 | 8,221 | 25,262 | 29,224 | ||||||||||||
Impairment losses |
4,100 | | 8,656 | | ||||||||||||
Total operating expenses |
56,304 | 52,335 | 218,531 | 205,669 | ||||||||||||
Operating income |
3,897 | 7,859 | 20,886 | 36,996 | ||||||||||||
OTHER INCOME AND EXPENSE: |
||||||||||||||||
Equity in income (loss) of unconsolidated joint ventures, net |
(786 | ) | 533 | (2,986 | ) | 2,698 | ||||||||||
Impairment losses on investments in unconsolidated joint ventures |
(216 | ) | | (216 | ) | (300 | ) | |||||||||
Loss on business combinations |
| (169 | ) | (395 | ) | (10,325 | ) | |||||||||
Interest expense |
(15,423 | ) | (12,576 | ) | (56,903 | ) | (52,670 | ) | ||||||||
Interest and other income |
244 | 364 | 356 | 1,918 | ||||||||||||
Income tax benefit (expense) and other taxes |
138 | 178 | (918 | ) | (1,846 | ) | ||||||||||
Loss from continuing operations |
(12,146 | ) | (3,811 | ) | (40,176 | ) | (23,529 | ) | ||||||||
Discontinued operations: |
||||||||||||||||
Operating income (loss) and other expenses |
(147 | ) | (374 | ) | (1,511 | ) | 1,147 | |||||||||
Gain (loss) on dispositions of real estate interests from discontinued operations |
(600 | ) | (144 | ) | (1,379 | ) | 668 | |||||||||
Income (loss) from discontinued operations |
(747 | ) | (518 | ) | (2,890 | ) | 1,815 | |||||||||
Loss before gain (loss) on dispositions of real estate interests |
(12,893 | ) | (4,329 | ) | (43,066 | ) | (21,714 | ) | ||||||||
Gain (loss) on dispositions of real estate interests |
| (57 | ) | 13 | 5 | |||||||||||
Consolidated net loss of DCT Industrial Trust Inc. |
(12,893 | ) | (4,386 | ) | (43,053 | ) | (21,709 | ) | ||||||||
Net loss attributable to noncontrolling interests |
1,698 | 550 | 5,223 | 3,124 | ||||||||||||
Net loss attributable to common stockholders |
$ | (11,195 | ) | $ | (3,836 | ) | $ | (37,830 | ) | $ | (18,585 | ) | ||||
EARNINGS PER COMMON SHARE - BASIC: |
||||||||||||||||
Loss from continuing operations |
$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.17 | ) | $ | (0.11 | ) | ||||
Income (loss) from discontinued operations |
0.00 | 0.00 | (0.01 | ) | 0.01 | |||||||||||
Gain (loss) on dispositions of real estate interests |
0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net loss attributable to common stockholders |
$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.10 | ) | ||||
EARNINGS PER COMMON SHARE - DILUTED: |
||||||||||||||||
Loss from continuing operations |
$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.17 | ) | $ | (0.11 | ) | ||||
Income (loss) from discontinued operations |
0.00 | 0.00 | (0.01 | ) | 0.01 | |||||||||||
Gain (loss) on dispositions of real estate interests |
0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Net loss attributable to common stockholders |
$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.10 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||||
Basic and diluted |
218,723 | 207,291 | 212,412 | 192,900 | ||||||||||||
Fourth Quarter 2010 Supplemental Reporting Package |
Page 3 |
Consolidated Balance Sheets
(unaudited, amounts in thousands)
December 31, 2010 | December 31, 2009 | |||||||
ASSETS: |
||||||||
Operating properties |
$ | 2,954,754 | $ | 2,712,291 | ||||
Properties under development |
55,698 | 138,698 | ||||||
Properties under redevelopment |
3,316 | 42,048 | ||||||
Pre-development and land held for development |
23,668 | 23,377 | ||||||
Total investment in properties |
3,037,436 | 2,916,414 | ||||||
Less accumulated depreciation and amortization |
(528,705 | ) | (451,242 | ) | ||||
Net investment in properties |
2,508,731 | 2,465,172 | ||||||
Investments in and advances to unconsolidated joint ventures |
138,455 | 111,238 | ||||||
Net investment in real estate |
2,647,186 | 2,576,410 | ||||||
Cash and cash equivalents |
17,330 | 19,120 | ||||||
Notes receivable |
1,222 | 19,084 | ||||||
Deferred loan costs, net |
5,883 | 4,919 | ||||||
Straight-line rent and other receivables, net |
33,278 | 31,607 | ||||||
Other assets, net |
14,990 | 13,152 | ||||||
Total assets |
$ | 2,719,889 | $ | 2,664,292 | ||||
LIABILITIES AND EQUITY: |
||||||||
Accounts payable and accrued expenses |
$ | 38,354 | $ | 36,261 | ||||
Distributions payable |
17,458 | 16,527 | ||||||
Tenant prepaids and security deposits |
20,759 | 19,451 | ||||||
Other liabilities |
12,373 | 5,759 | ||||||
Intangible lease liability, net |
18,748 | 5,946 | ||||||
Line of credit |
51,000 | | ||||||
Senior unsecured notes |
735,000 | 625,000 | ||||||
Mortgage notes |
425,359 | 511,715 | ||||||
Total liabilities |
1,319,051 | 1,220,659 | ||||||
Total stockholders equity |
1,196,102 | 1,217,635 | ||||||
Noncontrolling interests |
204,736 | 225,998 | ||||||
Total liabilities and equity |
$ | 2,719,889 | $ | 2,664,292 | ||||
Fourth Quarter 2010 Supplemental Reporting Package |
Page 4 |
Funds From Operations
(unaudited, amounts in thousands, except per share and unit data)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Reconciliation of net loss attributable to common stockholders to FFO: |
||||||||||||||||
Net loss attributable to common stockholders |
$ | (11,195 | ) | $ | (3,836 | ) | $ | (37,830 | ) | $ | (18,585 | ) | ||||
Adjustments: |
||||||||||||||||
Real estate related depreciation and amortization |
29,386 | 28,772 | 115,904 | 111,250 | ||||||||||||
Equity in (income) loss of unconsolidated joint ventures, net |
786 | (533 | ) | 2,986 | (2,698 | ) | ||||||||||
Equity in FFO of unconsolidated joint ventures |
921 | 2,348 | 4,001 | 11,807 | ||||||||||||
Add back: loss on business combinations |
| 169 | 395 | 10,325 | ||||||||||||
Less: (gain) loss on dispositions of real estate interest |
| 149 | (2,091 | ) | (1,354 | ) | ||||||||||
Less: (gain) loss on dispositions of non-depreciated real estate |
| (43 | ) | 13 | 783 | |||||||||||
Noncontrolling interest in the operating partnerships share of the above adjustments |
(3,283 | ) | (3,625 | ) | (13,426 | ) | (17,907 | ) | ||||||||
FFO attributable to unitholders |
1,941 | 3,124 | 8,678 | 14,881 | ||||||||||||
FFO attributable to common stockholders and unitholders, basic and diluted |
18,556 | 26,525 | 78,630 | 108,502 | ||||||||||||
Adjustments: |
||||||||||||||||
Impairment losses(1) |
4,591 | 51 | 12,004 | 981 | ||||||||||||
Debt modification costs |
| | 1,136 | | ||||||||||||
Acquisition costs |
706 | | 1,228 | | ||||||||||||
Severance costs |
| 297 | | 2,966 | ||||||||||||
FFO, as adjusted, attributable to common stockholders and unitholders, basic and diluted |
$ | 23,853 | $ | 26,873 | $ | 92,998 | $ | 112,449 | ||||||||
FFO per common share and unit, basic and diluted |
$ | 0.08 | $ | 0.11 | $ | 0.33 | $ | 0.48 | ||||||||
FFO, as adjusted, per common share and unit, basic and diluted |
$ | 0.10 | $ | 0.11 | $ | 0.39 | $ | 0.50 | ||||||||
FFO weighted average common shares and units outstanding: |
||||||||||||||||
Common shares for earnings per share basic |
218,723 | 207,291 | 212,412 | 192,900 | ||||||||||||
Participating securities |
1,722 | 1,376 | 1,689 | 1,535 | ||||||||||||
Units |
25,721 | 28,215 | 26,351 | 30,660 | ||||||||||||
FFO weighted average common shares, participating securities and units outstanding - basic |
246,166 | 236,882 | 240,452 | 225,095 | ||||||||||||
Dilutive common stock equivalents |
401 | 366 | 357 | 189 | ||||||||||||
FFO weighted average common shares, participating securities and units outstanding - diluted |
246,567 | 237,248 | 240,809 | 225,284 | ||||||||||||
Dividends declared per common share |
$ | 0.07 | $ | 0.07 | $ | 0.28 | $ | 0.30 |
(1) | Excluding amounts attributable to noncontrolling interests. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 5 |
Selected Financial Data
(unaudited, amounts in thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
NET OPERATING INCOME:(1) |
||||||||||||||||
Rental revenues |
$ | 59,119 | $ | 59,541 | $ | 235,284 | $ | 239,964 | ||||||||
Rental expenses and real estate taxes |
(16,101 | ) | (15,598 | ) | (69,490 | ) | (67,025 | ) | ||||||||
Net operating income(2) |
$ | 43,018 | $ | 43,943 | $ | 165,794 | $ | 172,939 | ||||||||
TOTAL CONSOLIDATED PROPERTIES:(3) |
||||||||||||||||
Square feet as of period end |
57,777 | 56,848 | 57,777 | 56,848 | ||||||||||||
Average occupancy |
86.1 | % | 82.9 | % | 82.9 | % | 84.0 | % | ||||||||
Occupancy as of period end |
87.4 | % | 82.7 | % | 87.4 | % | 82.7 | % | ||||||||
CONSOLIDATED OPERATING PROPERTIES:(3) |
||||||||||||||||
Square feet as of the period end |
56,652 | 52,910 | 56,652 | 52,910 | ||||||||||||
Average occupancy |
88.0 | % | 87.9 | % | 87.0 | % | 89.1 | % | ||||||||
Occupancy as of period end |
88.9 | % | 87.6 | % | 88.9 | % | 87.6 | % | ||||||||
SAME STORE OPERATING PROPERTIES:(1) |
||||||||||||||||
Rental revenues |
$ | 55,546 | $ | 58,496 | $ | 218,841 | $ | 233,136 | ||||||||
Rental expenses and real estate taxes |
(14,635 | ) | (15,043 | ) | (63,424 | ) | (64,326 | ) | ||||||||
Same store net operating income |
40,911 | 43,453 | 155,417 | 168,810 | ||||||||||||
Less: revenue from lease terminations |
(104 | ) | (167 | ) | (424 | ) | (2,018 | ) | ||||||||
Net operating income (excluding revenue from lease terminations) |
40,807 | 43,286 | 154,993 | 166,792 | ||||||||||||
Less: straight-line rents, net of related bad debt expense |
(824 | ) | (579 | ) | (3,237 | ) | (797 | ) | ||||||||
Add back: amortization of above/(below) market rents |
(38 | ) | 87 | 561 | 1,064 | |||||||||||
Cash net operating income (excluding revenue from lease terminations) |
$ | 39,945 | $ | 42,794 | $ | 152,317 | $ | 167,059 | ||||||||
Net operating income growth (excluding revenue from lease terminations) |
(5.7 | %) | | (7.1 | %) | | ||||||||||
Cash net operating income growth (excluding revenue from lease terminations) |
(6.7 | %) | | (8.8 | %) | | ||||||||||
Square feet in same store population |
52,286 | 52,286 | 50,477 | 50,477 | ||||||||||||
Average occupancy |
87.4 | % | 88.8 | % | 86.3 | % | 89.0 | % | ||||||||
Occupancy as of period end |
88.1 | % | 88.8 | % | 87.6 | % | 88.4 | % | ||||||||
SUPPLEMENTAL CONSOLIDATED CASH FLOW AND OTHER INFORMATION: |
||||||||||||||||
Straight-line rents-increase to revenue, net of related bad debt expense(3) |
$ | 1,849 | $ | 560 | $ | 5,687 | $ | 1,687 | ||||||||
Straight-line rent receivable (balance sheet)(3) |
$ | 27,138 | $ | 21,552 | $ | 27,138 | $ | 21,552 | ||||||||
Net amortization of above/(below) market rents-increase (decrease) to |
$ | 28 | $ | (123 | ) | $ | 211 | $ | (1,120 | ) | ||||||
Capitalized interest |
$ | 359 | $ | 1,461 | $ | 2,162 | $ | 6,064 | ||||||||
Stock-based compensation amortization |
$ | 1,246 | $ | 3,234 | $ | 4,828 | $ | 8,603 | ||||||||
Revenue from lease terminations(3) |
$ | 104 | $ | 226 | $ | 674 | $ | 2,080 | ||||||||
Bad debt expense, excluding bad debt expense related to straight-line |
$ | 163 | $ | 314 | $ | 1,117 | $ | 2,489 | ||||||||
CONSOLIDATED CAPITAL EXPENDITURES:(3) |
||||||||||||||||
Development and acquisition capital |
$ | 3,614 | $ | 2,383 | $ | 16,710 | $ | 13,593 | ||||||||
Repositioning capital |
3,901 | | 6,065 | | ||||||||||||
Building and land improvements |
6,101 | 6,703 | 14,925 | 10,654 | ||||||||||||
Tenant improvements and leasing costs (including make-ready) |
11,107 | 7,512 | 23,513 | 22,667 | ||||||||||||
Total capital expenditures |
$ | 24,723 | $ | 16,598 | $ | 61,213 | $ | 46,914 | ||||||||
(1) | Excludes discontinued operations. |
(2) | See definitions for reconciliation of net operating income to loss from continuing operations. |
(3) | Includes discontinued operations. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 6 |
Property Overview
As of December 31, 2010
Markets |
Number of Buildings |
Percent Owned (1) |
Square Feet | Percentage of Total Square Feet |
Occupancy Percentage |
Annualized Base Rent(2) |
Percentage of Total Annualized Base Rent |
|||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||
CONSOLIDATED OPERATING |
||||||||||||||||||||||||||||
Atlanta |
51 | 100.0 | % | 6,514 | 11.5 | % | 87.5 | % | $ | 18,315 | 9.8 | % | ||||||||||||||||
Baltimore/Washington D.C. |
15 | 99.6 | % | 1,916 | 3.4 | % | 87.6 | % | 8,452 | 4.5 | % | |||||||||||||||||
Central Pennsylvania |
8 | 100.0 | % | 1,453 | 2.6 | % | 86.0 | % | 5,007 | 2.7 | % | |||||||||||||||||
Charlotte |
10 | 100.0 | % | 1,006 | 1.8 | % | 53.8 | % | 2,141 | 1.1 | % | |||||||||||||||||
Chicago |
17 | 100.0 | % | 3,393 | 6.0 | % | 89.3 | % | 8,515 | 4.5 | % | |||||||||||||||||
Cincinnati |
31 | 100.0 | % | 3,945 | 6.9 | % | 90.9 | % | 11,909 | 6.4 | % | |||||||||||||||||
Columbus |
14 | 100.0 | % | 4,301 | 7.6 | % | 76.4 | % | 9,262 | 4.9 | % | |||||||||||||||||
Dallas |
46 | 100.0 | % | 4,288 | 7.6 | % | 89.7 | % | 13,939 | 7.4 | % | |||||||||||||||||
Denver |
1 | 100.0 | % | 160 | 0.3 | % | 100.0 | % | 809 | 0.4 | % | |||||||||||||||||
Houston |
41 | 100.0 | % | 2,963 | 5.2 | % | 92.1 | % | 14,367 | 7.7 | % | |||||||||||||||||
Indianapolis |
7 | 100.0 | % | 2,299 | 4.0 | % | 82.2 | % | 5,241 | 2.8 | % | |||||||||||||||||
Kansas City |
1 | 100.0 | % | 225 | 0.4 | % | 100.0 | % | 1,009 | 0.5 | % | |||||||||||||||||
Louisville |
4 | 100.0 | % | 1,330 | 2.3 | % | 98.4 | % | 4,000 | 2.1 | % | |||||||||||||||||
Memphis |
11 | 100.0 | % | 5,218 | 9.2 | % | 93.5 | % | 12,922 | 6.9 | % | |||||||||||||||||
Mexico |
14 | 100.0 | % | 1,543 | 2.7 | % | 95.5 | % | 6,001 | 3.2 | % | |||||||||||||||||
Miami |
5 | 100.0 | % | 662 | 1.2 | % | 97.2 | % | 3,621 | 1.9 | % | |||||||||||||||||
Minneapolis |
3 | 100.0 | % | 356 | 0.6 | % | 100.0 | % | 1,802 | 1.0 | % | |||||||||||||||||
Nashville |
5 | 100.0 | % | 2,826 | 5.0 | % | 100.0 | % | 8,213 | 4.4 | % | |||||||||||||||||
New Jersey |
11 | 100.0 | % | 1,340 | 2.4 | % | 84.6 | % | 5,198 | 2.8 | % | |||||||||||||||||
Northern California |
24 | 100.0 | % | 2,528 | 4.5 | % | 77.6 | % | 12,056 | 6.4 | % | |||||||||||||||||
Orlando |
13 | 100.0 | % | 1,134 | 2.0 | % | 84.1 | % | 4,164 | 2.2 | % | |||||||||||||||||
Phoenix |
13 | 100.0 | % | 1,472 | 2.6 | % | 87.5 | % | 4,922 | 2.6 | % | |||||||||||||||||
San Antonio |
15 | 100.0 | % | 1,349 | 2.4 | % | 90.6 | % | 3,848 | 2.1 | % | |||||||||||||||||
Seattle |
8 | 100.0 | % | 1,300 | 2.3 | % | 97.0 | % | 6,473 | 3.5 | % | |||||||||||||||||
Southern California |
22 | 92.0 | % | 3,131 | 5.5 | % | 99.8 | % | 15,470 | 8.2 | % | |||||||||||||||||
Total/weighted average - operating properties |
390 | 99.5 | % | 56,652 | 100.0 | % | 88.9 | % | $ | 187,656 | 100.0 | % | ||||||||||||||||
CONSOLIDATED REDEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Chicago |
1 | 100.0 | % | 69 | 100.0 | % | 62.4 | % | 145 | 100.0 | % | |||||||||||||||||
CONSOLIDATED DEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Baltimore/Washington D.C. |
2 | 95.0 | % | 141 | 13.4 | % | 42.5 | % | N/A | N/A | ||||||||||||||||||
Cincinnati |
1 | 100.0 | % | 546 | 51.7 | % | | N/A | N/A | |||||||||||||||||||
Mexico |
1 | 100.0 | % | 110 | 10.4 | % | | N/A | N/A | |||||||||||||||||||
Orlando |
3 | 100.0 | % | 259 | 24.5 | % | 25.4 | % | N/A | N/A | ||||||||||||||||||
Total/weighted average - development properties |
7 | 99.3 | % | 1,056 | 100.0 | % | 11.9 | % | 767 | N/A | ||||||||||||||||||
Total/weighted average - consolidated properties |
398 | 99.5 | % | 57,777 | N/A | 87.4 | % | $ | 188,568 | (3) | N/A | |||||||||||||||||
Continued on Next Page
Fourth Quarter 2010 Supplemental Reporting Package |
Page 7 |
Property Overview
(continued)
As of December 31, 2010
Markets |
Number of Buildings |
Percent Owned (1) |
Square Feet |
Percentage of Total Square Feet |
Occupancy Percentage |
Annualized Base Rent(2) |
Percentage of Total Annualized Base Rent |
|||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||
UNCONSOLIDATED OPERATING PROPERTIES |
||||||||||||||||||||||||||||
Southern California Logistics Airport(4) |
3 | 50.0 | % | 759 | 100.0 | % | 100.0 | % | $ | 2,776 | 100.0 | % | ||||||||||||||||
OPERATING PROPERTIES IN FUNDS |
||||||||||||||||||||||||||||
Atlanta |
2 | 17.2 | % | 703 | 5.1 | % | 80.4 | % | $ | 1,034 | 2.3 | % | ||||||||||||||||
Central Pennsylvania |
4 | 8.6 | % | 1,210 | 8.6 | % | 96.7 | % | 5,048 | 11.2 | % | |||||||||||||||||
Charlotte |
1 | 4.4 | % | 472 | 3.3 | % | 100.0 | % | 1,509 | 3.3 | % | |||||||||||||||||
Chicago |
4 | 18.1 | % | 1,525 | 10.8 | % | 100.0 | % | 5,930 | 13.1 | % | |||||||||||||||||
Cincinnati |
5 | 11.9 | % | 1,847 | 13.1 | % | 96.4 | % | 4,235 | 9.4 | % | |||||||||||||||||
Columbus |
2 | 6.3 | % | 451 | 3.2 | % | 71.6 | % | 1,180 | 2.6 | % | |||||||||||||||||
Dallas |
4 | 16.8 | % | 1,726 | 12.2 | % | 82.6 | % | 4,307 | 9.5 | % | |||||||||||||||||
Denver |
5 | 20.0 | % | 773 | 5.5 | % | 95.5 | % | 3,301 | 7.3 | % | |||||||||||||||||
Indianapolis |
1 | 11.4 | % | 475 | 3.4 | % | 100.0 | % | 1,785 | 3.9 | % | |||||||||||||||||
Kansas City |
1 | 11.4 | % | 180 | 1.3 | % | 100.0 | % | 364 | 0.8 | % | |||||||||||||||||
Louisville |
5 | 10.0 | % | 900 | 6.4 | % | 96.3 | % | 2,862 | 6.3 | % | |||||||||||||||||
Memphis |
1 | 20.0 | % | 1,039 | 7.4 | % | 74.1 | % | 2,241 | 5.0 | % | |||||||||||||||||
Minneapolis |
3 | 4.4 | % | 472 | 3.3 | % | 100.0 | % | 2,290 | 5.1 | % | |||||||||||||||||
Nashville |
2 | 20.0 | % | 1,020 | 7.2 | % | 100.0 | % | 3,789 | 8.4 | % | |||||||||||||||||
New Jersey |
2 | 10.7 | % | 216 | 1.5 | % | 83.0 | % | 955 | 2.1 | % | |||||||||||||||||
Northern California |
1 | 4.4 | % | 396 | 2.8 | % | 100.0 | % | 1,758 | 3.9 | % | |||||||||||||||||
Orlando |
2 | 20.0 | % | 696 | 4.9 | % | 82.7 | % | 2,641 | 5.8 | % | |||||||||||||||||
Total/weighted average - fund operating properties |
45 | 14.1 | % | 14,101 | 100.0 | % | 91.7 | % | $ | 45,229 | 100.0 | % | ||||||||||||||||
UNCONSOLIDATED DEVELOPMENT PROPERTIES |
||||||||||||||||||||||||||||
Total/weighted average |
7 | 48.4 | % | 3,156 | N/A | 3.5 | % | $ | 666 | N/A | ||||||||||||||||||
Total/weighted average - unconsolidated properties |
55 | 21.6 | % | 18,016 | N/A | 76.6 | % | $ | 48,671 | N/A | ||||||||||||||||||
OPERATING PROPERTIES ASSET-MANAGED ONLY |
||||||||||||||||||||||||||||
Atlanta |
1 | 0.0 | % | 491 | 100.0 | % | 100.0 | % | $ | N/A | N/A | |||||||||||||||||
SUMMARY |
||||||||||||||||||||||||||||
Total/weighted average - consolidated/unconsolidated operating properties |
438 | N/A | 71,512 | 93.8 | % | 89.6 | % | $ | 235,661 | N/A | ||||||||||||||||||
Total/weighted average - consolidated redevelopment properties |
1 | N/A | 69 | 0.1 | % | 62.4 | % | 145 | N/A | |||||||||||||||||||
Total/weighted average - consolidated/unconsolidated development properties |
14 | N/A | 4,211 | 5.5 | % | 5.6 | % | 1,433 | N/A | |||||||||||||||||||
Total/weighted average - asset managed only properties |
1 | N/A | 491 | 0.6 | % | 100.0 | % | N/A | N/A | |||||||||||||||||||
Total/weighted average - all properties |
454 | N/A | 76,283 | 100.0 | % | 85.0 | % | $ | 237,239 | N/A | ||||||||||||||||||
(1) | Percent owned is based on equity ownership weighted by square feet. |
(2) | Excludes future contractual rent increases and decreases. |
(3) | Excludes total annualized base rent associated with tenants in free rent periods of $6.6 million based on the first months cash based rent. |
(4) | Although we contributed 100% of the initial cash equity capital required by the venture, our partners retain certain participation rights in the ventures available cash flows. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 8 |
Consolidated Leasing Summary
Leasing Statistics(1)
Number of Leases Signed |
Square Feet Signed |
Cash Basis Rent Growth |
GAAP Basis Rent Growth |
Weighted Average Lease Term(2) |
Turnover Costs |
Turnover Costs Per Square Foot |
||||||||||||||||||||||
(in thousands) | (in months) | (in thousands) | ||||||||||||||||||||||||||
4TH QUARTER |
||||||||||||||||||||||||||||
OPERATING PROPERTIES: |
||||||||||||||||||||||||||||
Bulk Distribution |
58 | 3,720 | -13.5 | % | -8.3 | % | 43 | $ | 5,282 | $ | 1.42 | |||||||||||||||||
Light Industrial |
26 | 469 | -12.4 | % | -5.5 | % | 48 | 1,403 | 2.99 | |||||||||||||||||||
Service Center |
12 | 111 | -33.4 | % | -31.4 | % | 53 | 424 | 3.82 | |||||||||||||||||||
Total/Weighted Average |
96 | 4,300 | -14.0 | % | -8.9 | % | 43 | $ | 7,109 | $ | 1.65 | |||||||||||||||||
Weighted Average Retention |
88.6 | % | ||||||||||||||||||||||||||
DEVELOPMENT AND REDEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Bulk Distribution |
4 | 339 | ||||||||||||||||||||||||||
YEAR TO DATE 2010 |
||||||||||||||||||||||||||||
OPERATING PROPERTIES: |
||||||||||||||||||||||||||||
Bulk Distribution |
138 | 9,339 | -9.5 | % | -9.1 | % | 47 | $ | 15,754 | $ | 1.69 | |||||||||||||||||
Light Industrial |
79 | 1,355 | -11.1 | % | -4.6 | % | 42 | 3,223 | 2.38 | |||||||||||||||||||
Service Center |
52 | 335 | -19.0 | % | -15.0 | % | 48 | 1,692 | 5.05 | |||||||||||||||||||
Total/Weighted Average |
269 | 11,029 | -10.0 | % | -8.7 | % | 47 | $ | 20,669 | $ | 1.87 | |||||||||||||||||
Weighted Average Retention |
73.8 | % | ||||||||||||||||||||||||||
DEVELOPMENT AND REDEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Light Distribution |
2 | 110 | ||||||||||||||||||||||||||
Bulk Distribution |
15 | 2,187 | ||||||||||||||||||||||||||
Total |
17 | 2,297 | ||||||||||||||||||||||||||
Lease Expirations for Consolidated Operating Properties as of December 31, 2010(2)
Year |
Square Feet Related to Expiring Leases |
Annualized Base Rent of Expiring Leases(3) |
Percentage of Total Annualized Base Rent |
|||||||||
(in thousands) | (in thousands) | |||||||||||
2011(4) |
9,260 | $ | 37,115 | 17.5 | % | |||||||
2012 |
9,540 | 38,959 | 18.4 | % | ||||||||
2013 |
8,352 | 37,593 | 17.8 | % | ||||||||
2014 |
6,983 | 27,722 | 13.1 | % | ||||||||
2015 |
6,249 | 25,371 | 12.0 | % | ||||||||
Thereafter |
9,964 | 44,967 | 21.2 | % | ||||||||
Total occupied |
50,348 | $ | 211,727 | 100.0 | % | |||||||
Available / leased not occupied |
6,304 | |||||||||||
Total consolidated operating properties |
56,652 | |||||||||||
(1) | Does not include month-to-month leases. |
(2) | Assumes no exercise of lease renewal options. |
(3) | Includes contractual rent increases. |
(4) | Includes month-to-month leases. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 9 |
Customer and Industry Diversification
As of December 31, 2010
Ten Largest Customers
CUSTOMER |
Percent of Annualized base rent |
|||
CEVA Logistics |
1.9 | % | ||
Deutsche Post World Net (DHL & Excel) |
1.8 | % | ||
Bridgestone/Firestone |
1.4 | % | ||
Technicolor |
1.4 | % | ||
United Parcel Service (UPS) |
1.3 | % | ||
YRC, Inc. |
1.3 | % | ||
United Stationers Supply |
1.2 | % | ||
The Glidden Company |
1.2 | % | ||
Crayola LLC |
1.2 | % | ||
The Dial Corporation |
1.1 | % | ||
13.8 | % | |||
Consolidated Portfolio
INDUSTRY |
Percent of Annualized base rent |
|||
Manufacturing |
31.5 | % | ||
Wholesale trade |
25.1 | % | ||
Transportation and warehousing |
14.6 | % | ||
Retail trade |
11.0 | % | ||
Administrative support and waste management services |
4.2 | % | ||
Professional, scientific and technical services |
4.1 | % | ||
Media and information |
3.1 | % | ||
Construction |
1.6 | % | ||
Other services (except public administration) |
1.2 | % | ||
Other |
3.6 | % | ||
Total |
100 | % | ||
Fourth Quarter 2010 Supplemental Reporting Package |
Page 10 |
Acquisition and Disposition Summary
For the Year Ended December 31, 2010
Property Name |
Description |
Market | ||||
ACQUISITIONS: |
||||||
April |
400 Kennedy Drive | 150,000 sq. ft | New Jersey | |||
May |
Land Parcels - 8th and Vineyard | 19.3 acres | Southern California | |||
July |
13560 Colombard Court | 67,000 sq. ft. | Southern California | |||
September |
6200 Beckley Ave | 323,000 sq. ft. | Baltimore/Washington, D.C. | |||
November |
16303 Air Center | 52,000 sq. ft. | Houston | |||
November |
2392 S Wolf Road | 85,000 sq. ft. | Chicago | |||
December |
13610 52nd Street | 185,000 sq. ft. | Seattle | |||
December |
4215 E Airport Drive | 51,000 sq. ft. | Southern California | |||
December |
700 N Eckhoff (Truck terminal) | 32,000 sq. ft. | Southern California | |||
December |
211300 Peoria (Truck terminal) | 32,000 sq. ft. | Southern California | |||
December |
311937 Regentview (Truck terminal) | 30,000 sq. ft. | Southern California | |||
December |
Haven A(1) | 437,000 sq. ft. | Southern California | |||
December |
Haven G(1) | 17,000 sq. ft. | Southern California | |||
Total YTD Purchase Price - $111.5 million(2) |
||||||
DISPOSITIONS: |
||||||
May |
1350 Jamike Drive | 15,000 sq. ft. | Cincinnati | |||
August |
6575 Jimmy Carter Blvd. | 196,000 sq ft. | Atlanta | |||
September |
4739 W Jefferson | 160,000 sq. ft | Phoenix | |||
September |
Eden Rock 5 | 36,000 sq. ft | Northern California | |||
November |
7945 Foundation Drive | 33,000 sq. ft. | Cincinnati | |||
December |
7725 Foundation Drive | 18,000 sq. ft. | Cincinnati | |||
December |
7745 Foundation Drive | 12,000 sq. ft. | Cincinnati | |||
December |
4031 NE 12 Terrace | 66,000 sq. ft. | Miami | |||
Total YTD Sales Price - $21.6 million(2) |
(1) | DCT consolidates these properties with a 49.9% weighted average ownership. |
(2) | Amounts are based on gross purchase/selling price. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 11 |
Development Overview
As of December 31, 2010
Project |
Market |
Number of Buildings |
Square Feet | Book Cost(1) | Total Projected Investment |
Percentage Leased (2) |
||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||
STABILIZED: |
||||||||||||||||||||||
Dulles Industrial Phase I - Building D1 |
Baltimore/Washington D.C. | 1 | 64 | 100 | % | |||||||||||||||||
Dulles Industrial Phase I - Building D2 |
Baltimore/Washington D.C. | 1 | 83 | 83 | % | |||||||||||||||||
DCT Port Union 2 |
Cincinnati | 1 | 294 | 100 | % | |||||||||||||||||
Deltapoint |
Memphis | 1 | 885 | 100 | % | |||||||||||||||||
Monterrey 7 |
Mexico | 1 | 117 | 100 | % | |||||||||||||||||
Monterrey 8 |
Mexico | 1 | 127 | 100 | % | |||||||||||||||||
ADC XI - 8420 Boggy Creek |
Orlando | 1 | 70 | 100 | % | |||||||||||||||||
SCLA Building 13A (unconsolidated) |
Southern California | 1 | 296 | 100 | % | |||||||||||||||||
Sycamore Canyon A |
Southern California | 1 | 459 | 100 | % | |||||||||||||||||
Total/Weighted Average |
9 | 2,395 | $ | 110,962 | 99 | % | ||||||||||||||||
CONSOLIDATED: |
||||||||||||||||||||||
Development projects in lease up |
||||||||||||||||||||||
Dulles Industrial Phase I - Buildings A and B |
Baltimore/Washington D.C. | 2 | 141 | 43 | % | |||||||||||||||||
DCT Port Union 4 |
Cincinnati | 1 | 546 | | ||||||||||||||||||
Monterrey 6 |
Mexico | 1 | 110 | | ||||||||||||||||||
ADC North I |
Orlando | 2 | 203 | 56 | % | |||||||||||||||||
Airport Distribution Center |
Orlando | 1 | 56 | 45 | % | |||||||||||||||||
Total/weighted average |
7 | 1,056 | $ | 55,698 | 62,153 | 19 | % | |||||||||||||||
UNCONSOLIDATED: |
||||||||||||||||||||||
Development projects in lease up |
||||||||||||||||||||||
SCLA (3) |
Southern California | 3 | 1,224 | $ | 47,077 | $ | 51,947 | 9 | % | |||||||||||||
IDI/DCT, LLC (4) |
Chicago, Nashville, Northern California, Savannah | 4 | 1,932 | 74,476 | 87,586 | | ||||||||||||||||
Total/weighted average |
7 | 3,156 | 121,553 | $ | 139,520 | 3 | % | |||||||||||||||
Total/weighted average development projects in lease up |
14 | 4,212 | $ | 177,251 | $ | 201,673 | 7 | % | ||||||||||||||
DCT proportionate share excluding stabilized (5) |
2,627 | $ | 115,733 | $ | 131,124 | 10 | % | |||||||||||||||
DCT proportionate share including stabilized (5) |
n/a | 4,868 | $ | 217,682 | $ | 234,104 | 51 | % | ||||||||||||||
Projected yield - DCT proportionate share excluding stabilized |
6.5 | % | ||||||||||||||||||||
Projected yield - DCT proportionate share including stabilized |
6.5 | % | ||||||||||||||||||||
(1) | Excludes approximately $23.7 million of land held (127 acres) and capitalized pre-development costs in Baltimore/Washington, Cincinnati, Indianapolis, Orlando, Reno and Southern California. Also excludes 47 acres of land in Atlanta held in an unconsolidated joint venture and 207 acres owned in the unconsolidated joint venture at SCLA which could support the development of approximately 3.5 million square feet based on 40% coverage. |
(2) | Includes all signed leases whether or not occupancy has commenced as of February 7, 2011. |
(3) | DCT contributed the initial capital outlay required for the development of these assets. After the return of this investment and certain other priority distributions, the cash flows from this venture will be shared 50/50. |
(4) | DCTs ownership percentage is 50% |
(5) | Based on DCTs share of equity invested, for the purposes of SCLA, this is assumed to be 50% (see note 3 above). |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 12 |
Indebtedness
(dollar amounts in thousands)
As of December 31, 2010
Description |
Stated Interest Rate |
Effective Interest Rate |
Maturity Date | Balance as of 12/31/2010 |
||||||||||||
SENIOR UNSECURED NOTES: |
||||||||||||||||
2011 Notes, variable rate(1) |
1.91 | % | 1.91 | % | June 2011 | $ | 200,000 | |||||||||
2011 Notes, fixed rate |
5.53 | % | 5.24 | % | April 2011 | 50,000 | ||||||||||
2013 Notes, fixed rate |
6.11 | % | 6.36 | % | June 2013 | 175,000 | ||||||||||
2014 Notes, fixed rate |
5.68 | % | 6.03 | % | January 2014 | 50,000 | ||||||||||
2015 Notes, fixed rate |
5.63 | % | 5.63 | % | June 2015 | 40,000 | ||||||||||
2016 Notes, fixed rate |
5.77 | % | 5.74 | % | April 2016 | 50,000 | ||||||||||
2017 Notes, fixed rate |
6.31 | % | 6.31 | % | June 2017 | 51,000 | ||||||||||
2018 Notes, fixed rate |
6.52 | % | 6.52 | % | June 2018 | 41,500 | ||||||||||
2021 Notes, fixed rate |
6.95 | % | 6.95 | % | June 2021 | 77,500 | ||||||||||
735,000 | ||||||||||||||||
MORTGAGE NOTES: |
||||||||||||||||
Fixed rate secured debt |
5.84 | % | 5.60 | % | |
Mar. 2011 Aug. 2025 |
|
396,572 | ||||||||
Variable rate secured debt |
1.46 | % | 1.46 | % | October 2011 | 25,237 | ||||||||||
Premiums (discounts), net of amortization |
3,550 | |||||||||||||||
425,359 | ||||||||||||||||
Total senior unsecured notes and mortgage notes |
1,160,359 | |||||||||||||||
UNSECURED CREDIT FACILITY: |
||||||||||||||||
Senior unsecured revolving credit facility (2) |
5.35 | % | 5.35 | % | August 2013 | 51,000 | ||||||||||
Total carrying value of debt |
$ | 1,211,359 | ||||||||||||||
Fixed rate debt |
6.00 | % | 5.95 | % | 77 | % | ||||||||||
Variable rate debt |
2.50 | % | 2.50 | % | 23 | % | ||||||||||
Weighted average interest rate |
5.20 | % | 5.16 | % | 100 | % | ||||||||||
DCT PROPORTIONATE SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT(3) |
|
|||||||||||||||
Operating joint ventures |
$ | 32,275 | ||||||||||||||
Development joint ventures |
30,037 | |||||||||||||||
$ | 62,312 | |||||||||||||||
Scheduled Principal Payments of Debt as of December 31, 2010 (excluding premiums)
Year |
Senior Unsecured Notes |
Mortgage Notes |
Unsecured Credit Facility |
Total | ||||||||||||
2011 |
$ | 250,000 | $ | 133,008 | $ | | $ | 383,008 | ||||||||
2012 |
| 57,546 | | 57,546 | ||||||||||||
2013 |
175,000 | 43,494 | 51,000 | 269,494 | ||||||||||||
2014 |
50,000 | 5,946 | | 55,946 | ||||||||||||
2015 |
40,000 | 47,549 | | 87,549 | ||||||||||||
2016 |
50,000 | 4,892 | | 54,892 | ||||||||||||
2017 |
51,000 | 5,221 | | 56,221 | ||||||||||||
2018 |
41,500 | 5,263 | | 46,763 | ||||||||||||
2019 |
| 49,817 | | 49,817 | ||||||||||||
2020 |
| 61,631 | | 61,631 | ||||||||||||
Thereafter |
77,500 | 7,442 | | 84,942 | ||||||||||||
Total |
$ | 735,000 | $ | 421,809 | $ | 51,000 | $ | 1,207,809 | ||||||||
(1) | The $200 million bears interest at LIBOR plus 1.25% to 1.80% or at prime at the Companys option. |
(2) | The $300 million senior unsecured revolving credit facility expires on August 19, 2013 and bears interest from 2.1% to 3.1% over LIBOR, or at our election 1.1% to 2.1% over prime, depending on our consolidated leverage, and is subject to an annual facility fee. |
(3) | Based on DCTs ownership as of December 31, 2010. |
Hedges: As of December 31, 2010, we had one forward-starting interest rate swap in place to hedge the variability of cash flows associated with forecasted issuances of debt in 2012. This swap has a notional value of $90 million, a LIBOR based strike rate of 5.43%, an effective date of June 2012 and a maturity date of September 2012.
Fourth Quarter 2010 Supplemental Reporting Package |
Page 13 |
Capitalization and Fixed Charge Coverage
(dollar amounts in thousands, except share price)
Capitalization at December 31, 2010
Description |
Shares
or Units (1) |
Share Price |
Market Value |
|||||||||
(in thousands) | ||||||||||||
Common shares outstanding |
222,947 | $ | 5.31 | $ | 1,183,849 | |||||||
Operating partnership units outstanding |
25,337 | $ | 5.31 | 134,540 | ||||||||
Total equity market capitalization |
1,318,489 | |||||||||||
Consolidated debt |
1,211,359 | |||||||||||
Proportionate share of debt related to unconsolidated joint ventures |
62,312 | |||||||||||
Total debt |
1,273,671 | |||||||||||
Total market capitalization |
$ | 2,592,160 | ||||||||||
Ratio of total debt to total market capitalization, including proportionate share of debt related to unconsolidated joint ventures |
|
49.1 | % | |||||||||
Fixed Charge Coverage
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net loss attributable to common stockholders |
$ | (11,195 | ) | $ | (3,836 | ) | $ | (37,830 | ) | $ | (18,585 | ) | ||||
Interest expense(2) |
15,446 | 12,607 | 56,998 | 52,851 | ||||||||||||
Proportionate share of interest expense from unconsolidated joint ventures |
973 | 230 | 3,230 | 3,478 | ||||||||||||
Real estate related depreciation and amortization(2) |
29,386 | 28,772 | 115,904 | 111,250 | ||||||||||||
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures |
1,470 | 1,531 | 5,901 | 8,539 | ||||||||||||
Income tax benefit (expense) and other taxes(2) |
(131 | ) | (173 | ) | 937 | 1,855 | ||||||||||
Stock-based compensation amortization |
1,246 | 3,234 | 4,828 | 8,603 | ||||||||||||
Noncontrolling interests |
(1,698 | ) | (550 | ) | (5,223 | ) | (3,124 | ) | ||||||||
Loss on business combinations |
| 169 | 395 | 10,325 | ||||||||||||
Non-FFO gains on dispositions of real estate interests |
| 105 | (2,079 | ) | (570 | ) | ||||||||||
Impairment losses(2)(3) |
4,916 | 52 | 12,329 | 981 | ||||||||||||
Adjusted EBITDA |
$ | 40,413 | $ | 42,141 | $ | 155,390 | $ | 175,603 | ||||||||
CALCULATION OF FIXED CHARGES |
||||||||||||||||
Interest expense(2) |
$ | 15,446 | $ | 12,607 | $ | 56,998 | $ | 52,851 | ||||||||
Capitalized interest |
359 | 1,461 | 2,162 | 6,064 | ||||||||||||
Amortization of loan costs and debt premium/discount |
(252 | ) | (305 | ) | (1,240 | ) | (1,341 | ) | ||||||||
Proportionate share of interest expense from unconsolidated joint ventures |
973 | 230 | 3,230 | 3,478 | ||||||||||||
Total fixed charges |
$ | 16,526 | $ | 13,993 | $ | 61,150 | $ | 61,052 | ||||||||
Fixed charge coverage |
2.4 | 3.0 | 2.5 | 2.9 | ||||||||||||
(1) | Excludes unvested Long-Term Incentive Plan Units of 1.3 million units, unvested Restricted Stock of 0.4 million shares and unvested Phantom Shares of 0.1 million shares. |
(2) | Includes amounts related to discontinued operations. |
(3) | Includes impairment losses on investments in unconsolidated joint ventures. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 14 |
Institutional Capital Management Summary
(dollar amounts in thousands)
Statements of Operations
STATEMENTS OF OPERATIONS For the Twelve Months Ended December 31, 2010 |
||||||||||||||||||||
Boubyan Fund I | TRT-DCT JV I | TRT-DCT JV II | TRT-DCT JV III | J P Morgan | ||||||||||||||||
REVENUES: |
||||||||||||||||||||
Rental revenues |
$ | 10,161 | $ | 17,391 | $ | 8,103 | $ | 3,148 | $ | 21,116 | ||||||||||
Other income |
| | | | | |||||||||||||||
Total revenues |
10,161 | 17,391 | 8,103 | 3,148 | 21,116 | |||||||||||||||
EXPENSES: |
||||||||||||||||||||
Rental expenses |
880 | 1,437 | 704 | 401 | 1,908 | |||||||||||||||
Real estate taxes |
1,513 | 2,628 | 1,272 | 305 | 2,765 | |||||||||||||||
Depreciation and amortization |
4,639 | 8,467 | 3,656 | 1,425 | 11,211 | |||||||||||||||
General and administrative |
619 | 88 | 26 | 12 | 805 | |||||||||||||||
Total expenses |
7,651 | 12,620 | 5,658 | 2,143 | 16,689 | |||||||||||||||
Interest expense |
(5,457 | ) | (7,938 | ) | (3,479 | ) | (934 | ) | | |||||||||||
Taxes |
(136 | ) | (37 | ) | (24 | ) | 17 | (34 | ) | |||||||||||
Net income (loss) |
$ | (3,083) | $ | (3,204) | $ | (1,058) | $ | 88 | $ | 4,393 | ||||||||||
Rental revenues |
$ | 10,161 | $ | 17,391 | $ | 8,103 | $ | 3,148 | $ | 21,116 | ||||||||||
Rental expenses and real estate taxes |
2,393 | 4,065 | 1,976 | 706 | 4,673 | |||||||||||||||
Net operating income |
$ | $7,768 | $ | 13,326 | $ | 6,127 | $ | 2,442 | $ | 16,443 | ||||||||||
Data by Fund as of December 31, 2010: |
Number of Buildings |
Square Feet (In thousands) |
Occupancy Percentage |
DCT Ownership |
||||||||||||
Boubyan Fund I |
6 | 2,647 | 84.6 | % | 20.0 | % | ||||||||||
TRT-DCT JV I |
14 | 3,673 | 92.6 | % | 4.4 | % | ||||||||||
TRT-DCT JV II |
6 | 1,925 | 92.7 | % | 11.4 | % | ||||||||||
TRT-DCT JV III |
5 | 900 | 96.3 | % | 10.0 | % | ||||||||||
JP Morgan |
14 | 4,956 | 93.7 | % | 20.0 | % | ||||||||||
Total (weighted average) |
45 | 14,101 | 91.7 | % | 14.1 | % | ||||||||||
Balance Sheets
As of December 31, 2010 | ||||||||||||||||||||
Boubyan Fund I |
TRT-DCT JV I |
TRT-DCT JV II |
TRT-DCT JV III |
JP Morgan Venture |
||||||||||||||||
Total investment in properties |
$ | 125,354 | $ | 214,402 | $ | 96,459 | $ | 31,188 | $ | 290,707 | ||||||||||
Accumulated depreciation and amortization |
(23,197 | ) | (35,673 | ) | (15,329 | ) | (3,461 | ) | (38,350 | ) | ||||||||||
Net investment in properties |
102,157 | 178,729 | 81,130 | 27,727 | 252,357 | |||||||||||||||
Cash and cash equivalents |
1,430 | 2,167 | 655 | 217 | 1,959 | |||||||||||||||
Other assets |
2,681 | 4,247 | 1,822 | 714 | 2,511 | |||||||||||||||
Total assets |
$ | 106,268 | $ | 185,143 | $ | 83,607 | $ | 28,658 | $ | 256,827 | ||||||||||
Other liabilities |
$ | 2,280 | $ | 4,815 | $ | 1,322 | $ | 620 | $ | 4,100 | ||||||||||
Secured debt maturities 2015 |
| 45,345 | (2) | 50,129 | (3) | | | |||||||||||||
Secured debt maturities thereafter |
95,500 | (1) | 85,000 | (2) | 4,946 | (3) | 12,094 | (4) | | |||||||||||
Total secured debt |
$ | 95,500 | $ | 130,345 | $ | 55,075 | $ | 12,094 | $ | | ||||||||||
Total liabilities |
97,780 | 135,160 | 56,397 | 12,714 | 4,100 | |||||||||||||||
Members capital |
8,488 | 49,983 | 27,210 | 15,944 | 252,727 | |||||||||||||||
Total liabilities and members capital |
$ | 106,268 | $ | 185,143 | $ | 83,607 | $ | 28,658 | $ | 256,827 | ||||||||||
(1) | Debt currently has a stated interest rate of 5.6% and requires interest only payments until 2012 at which time it has a new stated interest rate of 7.6% and becomes fully amortizing through maturity in 2036. |
(2) | $85 million of debt requires interest only payments until 2017 and has a stated interest rate of 5.7%. $12.9 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 5.76%. $32.5 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%. |
(3) | $39.7 million of debt requires interest only payments until 2014 and has a stated interest rate of 6.2%. $4.9 million of debt requires principal and interest payments through 2016 and has a stated interest rate of 5.3%. $10.4 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%. |
(4) | $12.1 million of debt requires principal and interest payments until 2016 and has a stated interest rate of 7.4%. million of debt requires principal and interest payments until 2016 and has a stated interest rate of 7.4%. |
Fourth Quarter 2010 Supplemental Reporting Package |
Page 15 |
Definitions
Fourth Quarter 2010 Supplemental Reporting Package |
Page 16 |
Definitions
(Continued)
Consolidated Operating Data |
Consolidated Operating Data |
|||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Reconciliation of NOI to loss from continuing operations: |
||||||||||||||||
Loss from continuing operations |
$ | (12,146 | ) | $ | (3,811 | ) | $ | (40,176 | ) | $ | (23,529 | ) | ||||
Income tax benefit (expense) and other taxes |
(138 | ) | (178 | ) | 918 | 1,846 | ||||||||||
Interest and other income |
(244 | ) | (364 | ) | (356 | ) | (1,918 | ) | ||||||||
Interest expense |
15,423 | 12,576 | 56,903 | 52,670 | ||||||||||||
Equity in (income) loss of unconsolidated joint ventures, net |
786 | (533 | ) | 2,986 | (2,698 | ) | ||||||||||
General and administrative |
6,735 | 8,221 | 25,262 | 29,224 | ||||||||||||
Real estate related depreciation and amortization |
29,368 | 28,516 | 115,123 | 109,420 | ||||||||||||
Loss on business combinations |
| 169 | 395 | 10,325 | ||||||||||||
Impairment losses |
4,316 | | 8,872 | 300 | ||||||||||||
Institutional capital management and other fees |
(1,082 | ) | (653 | ) | (4,133 | ) | (2,701 | ) | ||||||||
Total net operating income |
43,018 | 43,943 | 165,794 | 172,939 | ||||||||||||
Less net operating income - non-same store properties |
(2,107 | ) | (490 | ) | (10,377 | ) | (4,129 | ) | ||||||||
Same store net operating income |
40,911 | 43,453 | 155,417 | 168,810 | ||||||||||||
Less revenue from lease terminations |
(104 | ) | (167 | ) | (424 | ) | (2,018 | ) | ||||||||
Same store net operating income, excluding revenue from lease terminations |
40,807 | 43,286 | 154,993 | 166,792 | ||||||||||||
Less straight-line rents, net of related bad debt expense |
(824 | ) | (579 | ) | (3,237 | ) | (797 | ) | ||||||||
Add back amortization of above/(below) market rents |
(38 | ) | 87 | 561 | 1,064 | |||||||||||
Same store cash net operating income, excluding revenue from lease terminations |
$ | 39,945 | $ | 42,794 | $ | 152,317 | $ | 167,059 | ||||||||
Fourth Quarter 2010 Supplemental Reporting Package |
Page 17 |