Simplify Exchang (NYSE:CDX)
Historical Stock Chart
From Jul 2019 to Jul 2024
Catellus Announces Third Quarter 2003 Results
SAN FRANCISCO, Nov. 4 /PRNewswire-FirstCall/ -- Catellus Development
Corporation today reported earnings per share ("EPS") for the third quarter of
2003 of $0.23, compared to $0.16 for the same period in 2002. EPS for the nine
months ended September 30, 2003, was $0.70, compared to $0.89 for the same
period in 2002.
Net income for the third quarter of 2003 was $20.9 million, compared to $14.7
million for the same period in 2002. Net income for the nine months ended
September 30, 2003, was $63.6 million, compared to $79.8 million for the same
period in 2002.
The increase in net income for the third quarter of 2003 is attributed to, in
part, the growth of the rental portfolio and the timing of sales activity, which
was accelerated to the first half of 2002 and disproportionately weighted toward
the second half of 2003.
"Sales activity picked up significantly in the third quarter and is expected to
be strong through year-end," said Nelson C. Rising, chairman and CEO of
Catellus. "Our guidance for 2003 has not changed."
"We are very pleased with the performance of our growing rental portfolio. The
occupancy rate is over 95 percent, and net operating income is up 11.1 percent
for the first three quarters of the year," added Mr. Rising. "With the pending
REIT conversion, we have made excellent progress toward our goal of
restructuring our businesses to operate more efficiently and better position
ourselves to operate as a REIT focused on industrial property."
REIT Conversion
-- As previously announced, Catellus stockholders approved the company's
conversion to a real estate investment trust, or REIT, at the
company's annual meeting of stockholders held on September 26, 2003.
-- It was also previously announced, on October 8, 2003, that Catellus'
Board of Directors declared a distribution of accumulated earnings and
profits ("E&P") of $3.83 per share, or approximately $350 million, in
connection with its decision to elect REIT status. The special
dividend is payable December 18, 2003, to stockholders of record at
the close of business November 4, 2003.
-- On November 7, 2003, election materials and forms will be sent to
stockholders of record as of close of business November 4, 2003.
Stockholders will have three options for how they wish to receive the
E&P distribution: all stock, all cash, or 20 percent cash and 80
percent stock.
-- The total cash distribution will be limited to $100 million. If more
than $100 million in cash were to be elected, only those stockholders
electing all cash would have the cash portion of their distribution
reduced on a pro rata basis, with the remainder paid in stock.
-- The paying agent must receive the completed election forms by December
1, 2003. Information about returning the completed election forms to
the appropriate entity will be provided in the packet of election
materials.
-- The trading price of the stock used to determine how many shares will
be issued to those stockholders receiving stock will be based on the
average closing price for the five trading days from December 2, 2003,
through December 8, 2003.
-- Payment of cash and stock will be made December 18, 2003. The stock
received as part of the E&P distribution will not be entitled to the
regular third quarter dividend. (The quarterly dividend is discussed
below.)
-- The stock dividend from the E&P distribution will affect per share
calculations. For example, assuming that the $100 million cash limit
is paid out, and that the average closing price of the stock from
December 2 through December 8 is $22.36 (closing price on November 3,
2003), the company will issue approximately 11.2 million shares of
stock on December 18, 2003, to stockholders of record at the close of
business on November 4, 2003. Although having no effect on our
aggregate earnings, Funds From Operations ("FFO"), or the indicated
dividend amount, the effect of the share issuance will be made
retroactively and result in our earnings per share, FFO per share, and
dividend per share being adjusted downward by the amount of the stock
dividend, or approximately 11 percent.
Rental Portfolio
-- For the third quarter of 2003, net operating income ("NOI") from the
rental portfolio, including equity in earnings of operating joint
ventures, increased 7.8 percent to $52.8 million, from $49.0 million
for the same period in 2002. For the nine months ended September 30,
2003, NOI from the rental portfolio, including equity in earnings of
operating joint ventures, increased 11.1 percent to $166.8 million,
from $150.2 million for the same period in 2002.
-- At September 30, 2003, the rental portfolio totaled 38.2 million
square feet. The net increase of approximately 800,000 square feet
from June 30, 2003, is due to the completion of two development
properties.
-- The two distribution warehouse facilities totaling approximately
800,000 square feet that were completed and added to the rental
portfolio during the third quarter of 2003 include a 578,000 square
foot build-to-suit in San Bernardino County, California, and a 223,000
square foot build-to-suit in Shawnee, Kansas. The two buildings are
100 percent leased and represent a total investment of $28.7 million
with a projected return on cost of 10.4 percent.
-- At September 30, 2003, the rental portfolio's occupancy was 95.3
percent, compared to 94.4 percent at June 30, 2003, and 94.5 percent
at year-end 2002.
Development and Investment Activity
-- At September 30, 2003, total construction in progress was 3.4 million
square feet, of which 2.4 million square feet will be added to
Catellus' rental portfolio upon completion; 300,000 square feet is
build-to-suit-for-sale; and approximately 695,000 square feet will be
owned in joint ventures.
-- For the 2.4 million square feet under construction that will be added
to Catellus' rental portfolio upon completion, the projected total
cost of development is $83.1 million. These buildings are 70 percent
preleased, and when fully leased, they are projected to yield a return
on cost of 9.8 percent.
-- During the quarter, the company announced the successful re-
entitlement of a portion of Pacific Commons, a business park located
in Silicon Valley, from office and hotel to retail. Concurrently, two
ground leases for land that can accommodate 260,000 square feet of
retail space were announced. Subsequent to that announcement, the
company executed a third ground lease with Costco for land that will
support retail space and a garden center totaling 157,000 square feet.
-- During the quarter, a 187,000 square foot retail property was
completed in joint venture and leased to Wal-Mart at Traer Creek in
Avon, Colorado. Subsequently, Catellus sold its interest in this
joint venture to its partner.
-- During the quarter, Catellus completed the sale of Vista Range, a
residential-community development in Denver, Colorado, entitled for
2,149 homes.
Dividend
-- The Board of Directors declared Catellus' first regular quarterly cash
dividend at its Board meeting on October 8, 2003, for the quarter
ended September 30, 2003, of $0.30 per common share payable on
November 25, 2003, to stockholders of record as of close of business
on November 4, 2003.
Supplemental Reporting Measure
-- As part of Catellus' REIT conversion, the company provides a
supplemental performance measure of Funds From Operations ("FFO"), as
defined by the National Association of Real Estate Investment Trusts
("NAREIT"), which Catellus believes provides a useful measure, along
with GAAP net income, of its operating performance.
-- Additionally, the company provides FFO in two segments: Core and
Urban/Residential/Other. The first segment, or Core Segment, reflects
the focal part of Catellus' business that it expects will be ongoing
and central to its future operations.
-- The second segment, or Urban/Residential/Other Segment, reflects the
company's urban and residential businesses, including residential lot
development, urban development, and desert land sales, which the
company fully intends to transition out of over time. This segment
also includes REIT conversion costs, including third party costs, net
tax liability reversals due to the REIT conversion, and the effects of
the stock option exchange.
-- Core Segment FFO is consistent with what the company has given
historically for FFO guidance and is consistent with what the company
referred to as "Modified FFO" at quarter ended June 30, 2003.
-- Both segments will be fully disclosed in the footnotes to the
financial statements for year-end 2003. Prior to the effective date
of the REIT conversion, scheduled for January 1, 2004, the company
will present FFO adjusted for hypothetical tax savings as if the
company had operated and been taxed as a REIT.
-- FFO, including both segments as defined above, for the third quarter
of 2003 was $45.2 million compared to $35.2 million for the same
period last year, and for the first nine months of 2003 and 2002 was
$131.5 million and $133.4 million, respectively.
-- Core Segment FFO for the third quarter of 2003 was $32.7 million,
compared to $29.3 million for the same period in 2002. On a per share
basis, Core Segment FFO for the third quarter of 2003 was $0.35,
compared to $0.33 for the same period in 2002. Core Segment FFO for
the nine months ended September 30, 2003, was $109.6 million, compared
to $102.8 million for the same period in 2002. On a per share basis,
Core Segment FFO for the period ended September 30, 2003, was $1.20,
compared to $1.15 for the same period in 2002.
Catellus Development Corporation will host a conference call on Wednesday,
November 5, 2003, at 9:00 a.m. Pacific Time (10:00 a.m. Mountain, 11:00 a.m.
Central, and noon Eastern) to discuss the third quarter results. To participate
in the conference call, dial 800-901-5231 (domestic) or 617-786-2961
(international) and enter access code 77111343 prior to the beginning of the
call. Access the live webcast of the conference call from the Investor
Relations section of Catellus' website at http://www.catellus.com/. You may
also access the live webcast through http://www.streetevents.com/. The
telephonic replay will be available through November 19, 2003, at 888-286-8010
(domestic) or 617-801-6888 (international) with the access code 90207998. The
webcast replay will be available through November 5, 2004, from the Investor
Relations section of Catellus' website at http://www.catellus.com/ or at
http://www.streetevents.com/.
The third quarter 2003 Supplemental Financial Package will be available from our
home page and the Investor Relations section of our website at
http://www.catellus.com/. These materials are also available by contacting
Investor Relations at 415-974-4500 or by sending an email to .
Catellus Development Corporation is a publicly traded real estate development
company that owns and operates approximately 38.2 million square feet of
predominantly industrial property in many of the country's major distribution
centers and transportation corridors. The company's principal objective is
sustainable, long-term growth in earnings, which it seeks to achieve by applying
its strategic resources: a lower-risk/higher-return rental portfolio, a focus
on expanding that portfolio through development, and the deployment of its
proven land development skills to select opportunities where it can generate
profits to recycle back into its business. More information on the company is
available at http://www.catellus.com/.
Except for historical matters, the matters discussed in this release are
forward-looking statements that involve risks and uncertainties. Forward-looking
statements include, but are not limited to, statements about plans,
opportunities, and development. We caution you not to place undue reliance on
these forward-looking statements, which reflect our current beliefs and are
based on information currently available to us. We do not undertake any
obligation to publicly revise these forward-looking statements to reflect future
events or changes in circumstances, except as may be required by law.
These forward-looking statements are subject to risks and uncertainties that
could cause our actual results, performance, or achievements to differ
materially from those expressed in or implied by these statements. In
particular, among the factors that could cause actual results to differ
materially are: ability to obtain the consents and satisfy the various other
requirements for consummating the conversion of our business to a real estate
investment trust (REIT) and the timing of the REIT conversion; changes in the
real estate market or in general economic conditions, including a worsening
economic slowdown or recession; product and geographical concentration; industry
competition; availability of financing and changes in interest rates and capital
markets; changes in insurance markets; discretionary government decisions
affecting the use of land, and delays resulting therefrom; changes in the
management team; weather conditions and other natural occurrences that may
affect construction or cause damage to assets; changes in income taxes or tax
laws; liability for environmental remediation and changes in environmental laws
and regulations; failure or inability of third parties to fulfill their
commitments or to perform their obligations under agreements; failure of parties
to reach agreement or definitive terms or to close transactions; increases in
the cost of land and construction materials and availability of properties for
future development; limitations on, or challenges to, title to our properties;
risks related to the financial strength of joint venture projects and co-owners;
changes in policies and practices of organized labor groups; shortages or
increased costs of electrical power; other risks inherent in the real estate
business; and acts of war, other geopolitical events and terrorists activities
that could adversely affect any of the above factors.
For further information, including more detailed risk factors, you should refer
to Catellus Development Corporation's annual report on Form 10-K/A for the
fiscal year ended December 31, 2002, and its reports on Form 10-Q for the
quarters ended March 31, 2003 and June 30, 2003, filed with the Securities and
Exchange Commission ("SEC"), as well as the proxy statement/prospectus dated
August 15, 2003.
Information contained in this press release is not a substitute for the proxy
statement/prospectus. STOCKHOLDERS AND INVESTORS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS, BECAUSE OF ITS IMPORTANT INFORMATION, INCLUDING DETAILED
RISK FACTORS, ABOUT CATELLUS DEVELOPMENT CORPORATION AND THE PROPOSED REIT
CONVERSION. The proxy statement/prospectus is available free of charge at the
SEC's website ( http://www.sec.gov/ ), or at the company's website (
http://www.catellus.com/ ), or by directing a request for such a filing to
Catellus Development Corporation at 201 Mission Street, Second Floor, San
Francisco, California, 94105, Attn.: Director of Investor Relations, or by
telephone at 415-974-4649, or by email to .
Contacts:
Margan Mitchell Minnie Wright
Corporate Communications Investor Relations
415-974-4616 415-974-4649
CATELLUS DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
September 30, December 31,
2003 2002
------------ ------------
Assets
Properties $2,549,606 $2,448,081
Less accumulated depreciation (443,649) (399,923)
------------ ------------
2,105,957 2,048,158
Other assets and deferred charges,
net 250,334 273,853
Notes receivable, less allowance 56,696 44,947
Accounts receivable, less allowance 16,739 14,211
Assets held for sale 6,332 2,760
Restricted cash and investments 43,901 36,593
Cash and cash equivalents 193,974 274,927
------------ ------------
Total $2,673,933 $2,695,449
____________ ____________
------------ ------------
Liabilities and stockholders' equity
Mortgage and other debt $1,430,590 $1,500,955
Accounts payable and accrued expenses 96,061 117,493
Deferred credits and other liabilities 157,009 151,466
Liabilities associated with assets held
for sale 5,303 3,233
Deferred income taxes 301,646 318,970
Minority interests -- 57,363
------------ ------------
Total liabilities 1,990,609 2,149,480
------------ ------------
Stockholders' equity
Common stock - 115,338 and 110,817 shares
issued at September 30, 2003 and December
31, 2002, respectively 1,153 1,108
Paid-in capital 605,058 531,362
Treasury stock, at cost (23,647 shares
at September 30, 2003 and December 31, 2002) (401,082) (401,082)
Accumulated earnings 478,195 414,581
------------ ------------
Total stockholders' equity 683,324 545,969
------------ ------------
Total $2,673,933 $2,695,449
____________ ____________
------------ ------------
CATELLUS DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
-------- -------- -------- --------
Revenue
Rental revenue $75,180 $65,424 $223,323 $192,699
Sales revenue 45,515 10,299 78,425 108,991
Management, development and
other fees 2,954 2,755 9,901 5,651
-------- -------- -------- --------
123,649 78,478 311,649 307,341
-------- -------- -------- --------
Costs and expenses
Property operating costs (23,076) (18,004) (62,607) (50,841)
Cost of sales (27,171) (2,471) (50,424) (69,723)
Selling, general and
administrative expenses (9,877) (5,824) (21,031) (19,804)
Corporate administrative costs (5,488) (4,284) (14,392) (12,748)
Depreciation and amortization (18,066) (17,317) (52,358) (45,666)
-------- -------- -------- --------
(83,678) (47,900) (200,812) (198,782)
-------- -------- -------- --------
Operating income 39,971 30,578 110,837 108,559
-------- -------- -------- --------
Other income
Equity in earnings of operating
joint ventures, net 540 993 5,199 6,838
Equity in earnings of development
joint ventures, net 7,553 4,201 16,834 19,825
Gain on non-strategic asset sales 928 421 8,285 7,242
Interest income 1,745 2,695 5,458 7,840
Other 581 903 2,530 9,069
-------- -------- -------- --------
11,347 9,213 38,306 50,814
-------- -------- -------- --------
Other expenses
Interest expense (15,893) (16,305) (49,740) (42,634)
REIT transition costs (1,416) -- (4,779) --
Other (411) 268 (607) (1,177)
-------- -------- -------- --------
(17,720) (16,037) (55,126) (43,811)
-------- -------- -------- --------
Income before minority interests,
income taxes, and discontinued
operations 33,598 23,754 94,017 115,562
Minority interests -- (1,527) -- (4,580)
-------- -------- -------- --------
Income before income taxes and
discontinued operations 33,598 22,227 94,017 110,982
Income tax expense (12,508) (8,967) (34,989) (44,661)
-------- -------- -------- --------
Income from continuing operations 21,090 13,260 59,028 66,321
-------- -------- -------- --------
Discontinued operations, net of
income tax:
Gain (loss) from disposal of
discontinued operations (201) 1,277 4,218 13,332
Income from discontinued
operations 60 118 368 125
-------- -------- -------- --------
Net gain (loss) from
discontinued operations (141) 1,395 4,586 13,457
-------- -------- -------- --------
Net income $20,949 $14,655 $63,614 $79,778
________ ________ ________ ________
-------- -------- -------- --------
Income per share from continuing
operations
Basic $0.23 $0.15 $0.67 $0.76
________ ________ ________ ________
-------- -------- -------- --------
Assuming dilution $0.23 $0.15 $0.65 $0.74
________ ________ ________ ________
-------- -------- -------- --------
Income per share from discontinued
operations
Basic $-- $0.02 $0.05 $0.16
________ ________ ________ ________
-------- -------- -------- --------
Assuming dilution $-- $0.01 $0.05 $0.15
________ ________ ________ ________
-------- -------- -------- --------
Net income per share
Basic $0.23 $0.17 $0.72 $0.92
________ ________ ________ ________
-------- -------- -------- --------
Assuming dilution $0.23 $0.16 $0.70 $0.89
________ ________ ________ ________
-------- -------- -------- --------
Average number of common shares
outstanding - basic 90,224 87,150 88,409 86,928
________ ________ ________ ________
-------- -------- -------- --------
Average number of common shares
outstanding - diluted 92,339 89,603 91,082 89,539
________ ________ ________ ________
-------- -------- -------- --------
CATELLUS DEVELOPMENT CORPORATION
Reconciliation of Net Income to Funds from Operations
(In thousands, except per share data)
(Unaudited)
Three Months ended
September 30, 2003
---------------------------------
Urban/Res.
Core & Other
Segment Segment Consolidated
-------- --------- -----------
Net income $8,843 $12,106 $20,949
Add depreciation 18,091 429 18,520
Add loss on property sales 301 -- 301
-------- --------- -----------
FFO 27,235 12,535 39,770
Hypothetical tax savings 5,452 -- 5,452
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings $32,687 $12,535 $45,222
________ _________ ___________
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings per share:
Basic $0.36 $0.14 $0.50
________ _________ ___________
-------- --------- -----------
Assuming dilution $0.35 $0.14 $0.49
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - basic 90,224 90,224 90,224
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - diluted 92,339 92,339 92,339
________ _________ ___________
-------- --------- -----------
Three Months ended
September 30, 2002
---------------------------------
Urban/Res.
Core & Other
Segment Segment Consolidated
-------- --------- -----------
Net income $9,073 $5,582 $14,655
Add depreciation 16,917 317 17,234
Less gain on property sales (2,789) -- (2,789)
-------- --------- -----------
FFO 23,201 5,899 29,100
Hypothetical tax savings 6,060 -- 6,060
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings $29,261 $5,899 $35,160
________ _________ ___________
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings per share:
Basic $0.34 $0.06 $0.40
________ _________ ___________
-------- --------- -----------
Assuming dilution $0.33 $0.06 $0.39
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding-basic 87,150 87,150 87,150
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding-diluted 89,603 89,603 89,603
________ _________ ___________
-------- --------- -----------
CATELLUS DEVELOPMENT CORPORATION
Reconciliation of Net Income to Funds from Operations
(In thousands, except per share data)
(Unaudited)
Nine Months ended
September 30, 2003
---------------------------------
Urban/Res.
Core & Other
Segment Segment Consolidated
-------- --------- -----------
Net income $42,239 $21,375 $63,614
Add depreciation 52,004 429 52,433
Less gain on property sales (7,152) -- (7,152)
-------- --------- -----------
FFO 87,091 21,804 108,895
Hypothetical tax savings 22,558 -- 22,558
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings $109,649 $21,804 $131,453
________ _________ ___________
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings per share:
Basic $1.24 $0.25 $1.49
________ _________ ___________
-------- --------- -----------
Assuming dilution $1.20 $0.24 $1.44
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - basic 88,409 88,409 88,409
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - diluted 91,082 91,082 91,082
________ _________ ___________
-------- --------- -----------
Nine Months ended
September 30, 2002
---------------------------------
Urban/Res.
Core & Other
Segment Segment Consolidated
-------- --------- -----------
Net income $49,941 $29,837 $79,778
Add depreciation 45,609 727 46,336
Less gain on property sales (25,101) - (25,101)
-------- --------- -----------
FFO 70,449 30,564 101,013
Hypothetical tax savings 32,394 - 32,394
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings $102,843 $30,564 $133,407
________ _________ ___________
-------- --------- -----------
FFO as adjusted for hypothetical tax
savings per share:
Basic $1.18 $0.35 $1.53
________ _________ ___________
-------- --------- -----------
Assuming dilution $1.15 $0.34 $1.49
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - basic 86,928 86,928 86,928
________ _________ ___________
-------- --------- -----------
Average number of common shares
outstanding - diluted 89,539 89,539 89,539
________ _________ ___________
-------- --------- -----------
CATELLUS DEVELOPMENT CORPORATION
Net Operating Income
(In thousands and unaudited)
Net Operating Income ("NOI"):
NOI represents rental revenue less property operating costs (including the
portion from discontinued operations) and equity in earnings of operating joint
ventures, net (as reflected in the accompanying statements of operations). NOI
is commonly used by shareholders, company management and industry analysts as a
measurement of operating performance of the company's rental portfolio and is
calculated as follows:
Three Months ended Nine Months ended
September 30, September 30,
------------------ ------------------
2003 2002 2003 2002
------- ------- -------- --------
Rental revenue $75,180 $65,424 $223,323 $192,699
Property operating costs (23,076) (18,004) (62,607) (50,841)
Equity in earnings of
operating joint ventures, net 540 993 5,199 6,838
Rental revenue from
discontinued operations 157 767 1,197 2,051
Property operating costs from
discontinued operations (26) (152) (275) (514)
------- ------- -------- --------
Net operating income $52,775 $49,028 $166,837 $150,233
_______ _______ ________ ________
------- ------- -------- --------
DATASOURCE: Catellus Development Corporation
CONTACT: Margan Mitchell, Corporate Communications, +1-415-974-4616, or
Minnie Wright, Investor Relations, +1-415-974-4649, both of Catellus
Development Corporation
Web site: http://www.catellus.com/