Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Colony Capital, Inc. | d8k.htm |
Exhibit 99.1
COLONY FINANCIAL, INC.
Pro forma consolidated balance sheet as of March 31, 2011 (unaudited) and statements of operations for the three months ended March 31, 2011 and year ended December 31, 2010 (unaudited)
COLONY FINANCIAL, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)
(Unaudited)
| March 31, 2011 | ||||||||||||
| Pro Forma | ||||||||||||
| As Reported | Adjustments | Adjusted | ||||||||||
| ASSETS |
||||||||||||
| Investments in unconsolidated joint ventures |
$ | 259,111 | $ | (5,181 | )(a) | $ | 253,930 | |||||
| Cash and cash equivalents |
8,467 | 8,968 | (a) | 17,435 | ||||||||
| Loans receivable, net |
108,863 | 108,863 | ||||||||||
| Subscriptions receivable, net |
235,014 | 235,014 | ||||||||||
| Other assets |
7,938 | 7,938 | ||||||||||
| Total assets |
$ | 619,393 | $ | 3,787 | $ | 623,180 | ||||||
| LIABILITIES AND EQUITY |
||||||||||||
| Liabilities: |
||||||||||||
| Secured financing |
$ | 13,967 | $ | $ | 13,967 | |||||||
| Accrued and other liabilities |
5,555 | 5,555 | ||||||||||
| Due to affiliates |
1,898 | 1,898 | ||||||||||
| Dividends payable |
5,563 | 5,563 | ||||||||||
| Deferred underwriting discounts and commissions payable to underwriters |
5,750 | 5,750 | ||||||||||
| Deferred underwriting discounts and commissions reimbursable to Manager |
5,750 | 5,750 | ||||||||||
| Total liabilities |
38,483 | — | 38,483 | |||||||||
| Commitments and contingencies |
||||||||||||
| Equity: |
||||||||||||
| Stockholders’ equity: |
||||||||||||
| Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding |
— | — | ||||||||||
| Common stock, $0.01 par value, 450,000,000 shares authorized, 17,384,000 shares issued and outstanding |
174 | 174 | ||||||||||
| Additional paid-in capital |
330,807 | 330,807 | ||||||||||
| Common stock subscribed |
235,014 | 235,014 | ||||||||||
| Retained earnings |
2,952 | 3,787 | (a) | 6,739 | ||||||||
| Accumulated other comprehensive income |
1,715 | 1,715 | ||||||||||
| Total stockholders’ equity |
570,662 | 3,787 | 574,449 | |||||||||
| Noncontrolling interest |
10,248 | 10,248 | ||||||||||
| Total equity |
580,910 | 3,787 | 584,697 | |||||||||
| Total liabilities and equity |
$ | 619,393 | $ | 3,787 | $ | 623,180 | ||||||
See notes to unaudited pro forma consolidated financial statements.
COLONY FINANCIAL, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended March 31, 2011 | ||||||||||||
| Pro Forma | ||||||||||||
| As Reported | Adjustments | Adjusted | ||||||||||
| Income |
||||||||||||
| Equity in income of unconsolidated joint ventures |
$ |
8,484 |
|
$ | (198 | ) (b)(c) | $ | 8,286 | ||||
| Interest income |
2,165 | 2,165 | ||||||||||
| Other operating income |
561 | 561 | ||||||||||
| Total income |
11,210 | (198 | ) | 11,012 | ||||||||
| Expenses |
||||||||||||
| Base management fees |
1,296 | 1,296 | ||||||||||
| Investment expenses |
369 | 369 | ||||||||||
| Investment expenses reimbursed to affiliate |
318 | 318 | ||||||||||
| Interest expense |
510 | 510 | ||||||||||
| Administrative expenses |
1,125 | 1,125 | ||||||||||
| Administrative expenses reimbursed to affiliate |
390 | 390 | ||||||||||
| Total expenses |
4,008 | — | 4,008 | |||||||||
| Foreign exchange loss, net of gain on foreign currency hedge of $9 |
(54 | ) | (54 | ) | ||||||||
| Income before income tax benefit |
7,148 | (198 | ) | 6,950 | ||||||||
| Income tax benefit |
228 | 228 | ||||||||||
| Net income |
7,376 | (198 | ) | 7,178 | ||||||||
| Net income attributable to noncontrolling interest |
13 | 13 | ||||||||||
| Net income attributable to common stockholders |
$ | 7,363 | $ | (198 | ) | $ | 7,165 | |||||
| Net income per share: |
||||||||||||
| Basic |
$ | 0.42 | $ | 0.41 | ||||||||
| Diluted |
$ | 0.41 | $ | 0.40 | ||||||||
| Weighted average number of common shares outstanding: |
||||||||||||
| Basic |
17,378,000 | 17,378,000 | ||||||||||
| Diluted |
17,840,500 | 17,840,500 | ||||||||||
See notes to unaudited pro forma consolidated financial statements.
COLONY FINANCIAL, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Year Ended December 31, 2010 | ||||||||||||
| Pro Forma | ||||||||||||
| As Reported | Adjustments | Adjusted | ||||||||||
| Income |
||||||||||||
| Equity in income of unconsolidated joint ventures |
$ | 24,227 | $ | (335 | )(c)(d) | $ | 23,892 | |||||
| Interest income |
3,158 | 3,158 | ||||||||||
| Other operating income |
40 | 40 | ||||||||||
| Total income |
27,425 | (335 | ) | 27,090 | ||||||||
| Expenses |
||||||||||||
| Base management fees |
3,542 | 3,542 | ||||||||||
| Investment expenses |
442 | 442 | ||||||||||
| Interest expense |
555 | 555 | ||||||||||
| Administrative expenses |
3,687 | 3,687 | ||||||||||
| Administrative expenses reimbursed to affiliate |
1,656 | 1,656 | ||||||||||
| Total expenses |
9,882 | — | 9,882 | |||||||||
| Other income and expenses |
||||||||||||
| Realized gain on sale of loan receivable |
603 | 603 | ||||||||||
| Foreign exchange loss, net of gain on foreign currency hedge of $43 |
(149 | ) | (149 | ) | ||||||||
| Income before income taxes |
17,997 | (335 | ) | 17,662 | ||||||||
| Income tax provision |
(243 | ) | (243 | ) | ||||||||
| Net income |
17,754 | (335 | ) | 17,419 | ||||||||
| Net income attributable to noncontrolling interest |
23 | 23 | ||||||||||
| Net income attributable to common stockholders |
$ | 17,731 | $ | (335 | ) | $ | 17,396 | |||||
| Net income per share: |
||||||||||||
| Basic |
$ | 1.20 | $ | 1.18 | ||||||||
| Diluted |
$ | 1.18 | $ | 1.16 | ||||||||
| Weighted average number of common shares outstanding: |
||||||||||||
| Basic |
14,716,200 | 14,716,200 | ||||||||||
| Diluted |
15,003,700 | 15,003,700 | ||||||||||
See notes to unaudited pro forma consolidated financial statements.
COLONY FINANCIAL, INC.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
| 1. | Pro Forma Adjustments |
On July 7, 2011, ColFin FRB Investor, LLC (“FRB Investor”), an unconsolidated joint venture in which Colony Financial, Inc. (the “Company”) holds a 5.91% ownership interest, completed the sale of 5,000,000 shares of common stock in First Republic Bank. The shares were sold in connection with First Republic Bank’s secondary public offering. FRB Investor, which owned an approximate 19.5% interest in First Republic Bank prior to the disposition, currently owns an approximate 15.6% interest in First Republic Bank. The Company’s indirect ownership interest in First Republic Bank is approximately 0.9% through its ownership in FRB Investor.
The Company’s unaudited pro forma consolidated financial statements give effect to the disposition of 19.9% of its investment in First Republic Bank. The Company’s pro forma balance sheet as of March 31, 2011 includes adjustments to reflect the disposition as if it had occurred at that date. The statements of operations for the three months ended March 31, 2011 and the year ended December 31, 2010 include adjustments to reflect the disposition as if it had occurred at the beginning of each period presented. The following pro forma adjustments are included:
| (a) | Represents the Company’s share of proceeds, reduction in investment in unconsolidated joint venture and gain on sale of approximately $9.0 million, $5.2 million and $3.8 million, respectively, resulting from the sale of 5,000,000 shares of First Republic Bank’s common stock by FRB Investor in connection with the closing of First Republic Bank’s secondary offering on July 7, 2011. |
| (b) | Represents the reduction of the Company’s pro rata share of First Republic Bank’s net income for the three months ended March 31, 2011 as a result of FRB Investor’s sale of shares in First Republic Bank’s secondary public offering. |
| (c) | Does not include the non-recurring gain on sale of approximately $3.8 million resulting from the Company’s disposition of a portion of its indirect interest in First Republic Bank. |
| (d) | Represents the reduction of the Company’s pro rata share of First Republic Bank’s net income for the year ended December 31, 2010 as a result of FRB Investor’s sale of shares in First Republic Bank’s secondary public offering. |