-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jx8aLXa80HjoO+GdWHCUV9hFRCqZZ0egebX5X4KWzr40IIV08ozssG1GWsfClC6B E0VDmmrsxuSRAA3id0YC3Q== 0000950144-03-009968.txt : 20030814 0000950144-03-009968.hdr.sgml : 20030814 20030814110936 ACCESSION NUMBER: 0000950144-03-009968 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20030728 ITEM INFORMATION: FILED AS OF DATE: 20030814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLONIAL PROPERTIES TRUST CENTRAL INDEX KEY: 0000909111 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 597007599 STATE OF INCORPORATION: AL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 033-65954 FILM NUMBER: 03844230 BUSINESS ADDRESS: STREET 1: 2101 SIXTH AVE N STE 750 STREET 2: STE 750 CITY: BIRMINGHAM STATE: AL ZIP: 35203 BUSINESS PHONE: 205-250-8700 MAIL ADDRESS: STREET 1: 2101 6TH AVE N STE 750 CITY: BIRMINGHAM STATE: AL ZIP: 35203 8-K/A 1 g84552e8vkza.htm COLONIAL PROPERTIES TRUST COLONIAL PROPERTIES TRUST
Table of Contents

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

     
Date of Report (Date of earliest event reported):   Commission File Number:
July 28, 2003   1-12358

COLONIAL PROPERTIES TRUST
(Exact name of registrant as specified in its charter)

     
Alabama   59-7007599
(State or other jurisdiction   (IRS Employer
of incorporation)   Identification Number)
     
2101 Sixth Avenue North    
Suite 750    
Birmingham, Alabama   35202
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code:
(205) 250-8700

Not applicable
(Former name or former address, if changed since last report)

 

SIGNATURE
EX-99.3 CORRECTED ATTACHMENT TO TRUST EARNINGS
EX-99.4 CORRECTED PAGES TO SUPPLEMENTAL FINANCIALS
EX-99.5 PRESS RELEASE DATED 8/14/03

Table of Contents

Item 12. Results of Operations and Financial Condition

     On July 28, 2003, Colonial Properties Trust (the “Company”) announced its financial results for the quarter and year-to-date for the period ended June 30, 2003. A copy of the Company’s earnings press release was furnished as Exhibit 99.1 to a report on Form 8-K filed by the Company on July 29, 2003. A copy of the Company’s Supplemental Financial Highlights for the quarter ended June 30, 2003 was furnished as Exhibit 99.2 to the same report on Form 8-K. This report on Form 8-K/A amends the report on Form 8-K filed by the Company on July 29, 2003 to reflect certain adjustments to the financial statements as described below.

     On July 31, 2003, at the Emerging Issues Task Force (“EITF”) meeting, the SEC clarified EITF Abstracts, Topic No. D-42, “The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock”. The SEC clarified that for the purposes of applying Topic D-42 when calculating the excess of (1) fair value of the consideration transferred to the holders of preferred stock over (2) the carrying amount of the preferred stock in the registrant’s balance sheet, the carrying amount of the preferred stock should be reduced by the issuance costs of the preferred stock, regardless of where in the stockholders’ equity section those costs were initially classified on issuance. Further, the SEC stated that the excess of the fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock in the balance sheet represents a return to the preferred stockholder and, therefore, should be treated in a manner similar to the treatment of dividends paid to the holders of the preferred stock in the calculation of earnings per share. The clarification of Topic D-42 is to be reflected retroactively in the first fiscal period ending after September 15, 2003, by restating the financial statements of prior periods in accordance with the provisions of paragraphs 27-30 of Accounting Principals Board No. 20, Accounting Changes. With earlier application encouraged, the Company has decided to apply Topic D-42 to its financial statements in the quarter ended June 30, 2003.

     On May 7, 2003, the Company redeemed its $125.0 million 8.75% Series A preferred stock. Upon issuance of the Series A preferred stock in November 1997, the Company recorded the issuance costs of the preferred stock, $4.5 million, as a reduction of shareholders’ equity for a net carrying value of $120.5 million for the Series A preferred stock. When the preferred stock was redeemed, the Company originally recorded the fair value of the consideration transferred to the Series A preferred stockholders’, or $125.0 million, as a reduction of shareholders’ equity. In accordance with the SEC’s clarification of EITF Abstracts, Topic No. D-42, the Company will reflect the excess of the fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock, $4.5 million or $0.13 per diluted share, as a reduction of earnings to arrive at net income available to common shareholders in the quarter ended June 30, 2003. The Company has also reduced its funds from operations by the same amount.

     The previously reported net income available to common shareholders and funds from operations appeared in an attachment to the earnings press release dated July 28, 2003 furnished as Exhibit 99.1 and on pages 5, 6, 8, 9, 14 and 15 of the Company’s Supplemental Financial Highlights for the quarter ended June 30, 2003 furnished as Exhibit 99.2. As a result, the Company is furnishing a corrected attachment to the earnings press release and corrected pages 5, 6, 8, 9, 14 and 15 of the Supplemental Financial Highlights with this Form 8-K/A. The corrected pages are attached hereto as Exhibits 99.3 and 99.4 of this Form 8-K/A. In addition, the Company’s press release announcing the adjustments described above is attached hereto as Exhibit 99.5.

     The information contained in this report on Form 8-K/A, including Exhibits 99.1, 99.2, 99.3, 99.4 and 99.5, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.

 

Table of Contents

SIGNATURE

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.

         
    COLONIAL PROPERTIES TRUST
         
Date: August 14, 2003   By:   /s/ Howard B, Nelson, Jr.
       
        Name: Howard B. Nelson, Jr.
        Title: Chief Financial Officer and Secretary

EXHIBITS

     
Exhibit   Document
 
99.1*   Colonial Properties Trust 2nd Quarter 2003 Earnings press release dated July 28, 2003.
     
99.2*   Colonial Properties Trust Supplemental Financial Highlights for the quarter ended June 30, 2003.
     
99.3   Corrected attachment to Colonial Properties Trust Earnings press release dated July 28, 2003.
     
99.4   Corrected pages 5, 6, 8, 9, 14 and 15 to Colonial Properties Trust Supplemental Financial Highlights for the quarter ended June 30, 2003.
     
99.5   Colonial Properties Trust press release dated August 14, 2003.

*   Previously filed by Colonial Properties Trust in its report on Form 8-K filed with the SEC on July 29, 2003

  EX-99.3 3 g84552exv99w3.htm EX-99.3 CORRECTED ATTACHMENT TO TRUST EARNINGS exv99w3

 

EXHIBIT 99.3

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

BALANCE SHEET

                       
          As of   As of
($ in 000s)   6/30/2003   12/31/2002
   
 
ASSETS
                
Real Estate Investments
                
   
Operating Properties
   $ 2,288,561     $ 2,298,242  
   
Undeveloped Land & Construction in Progress
     98,896       82,520  
 
    
     
 
     
Total Real Estate, before Depreciation
     2,387,457       2,380,762  
   
Less: Accumulated Depreciation
     (386,518 )     (351,164 )
 
    
     
 
     
Net Real Estate Development
     2,000,939       2,029,598  
 
Cash and Equivalents
     1,794       6,236  
 
Restricted Cash
     1,921       1,481  
 
Accounts Receivable, net
     7,517       10,395  
 
Notes Receivable
     1,458       1,307  
 
Prepaid Expenses
     5,942       7,581  
 
Deferred Debt and Lease Costs
     23,456       23,157  
 
Investment in Unconsolidated Subsidiaries
     34,716       36,265  
 
Other Assets
     12,931       13,836  
 
    
     
 
   
Total Assets
   $ 2,090,674     $ 2,129,856  
 
    
     
 
 
LIABILITIES
                
Long-Term Liabilities
                
   
Payable to Banks
   $ 32,860     $ 208,270  
   
Notes and Mortgages Payable
     1,119,206       1,053,923  
 
    
     
 
     
Total Long-Term Liabilities
     1,152,066       1,262,193  
 
Other Liabilities
     59,817       55,566  
 
    
     
 
   
Total Liabilities
     1,211,883       1,317,759  
 
MINORITY INTEREST & EQUITY
                
 
Preferred Shares and Units, at Liquidation Value
                
   
Series A 8 3/4%, Preferred Shares
     —       125,000  
   
Series B 8 7/8%, Preferred Units
     100,000       100,000  
   
Series C 9 1/4%, Preferred Shares
     50,000       50,000  
   
Series D 8 1/8%, Preferred Shares
     125,000       —  
 
    
     
 
     
Total Preferred Shares and Units, at Liquidation Value
     275,000       275,000  
 
Common Equity, including Minority Interest
     603,791       537,097  
 
    
     
 
   
Total Equity, including Minority Interest
     878,791       812,097  
 
    
     
 
 
Total Liabilities and Equity
   $ 2,090,674     $ 2,129,856  
 
    
     
 

SHARES & UNITS OUTSTANDING, END OF PERIOD

                   
      As of   As of
(shares and units in 000s)   6/30/2003   12/31/2002
   
 
Basic
                
 
Shares
     25,882       22,850  
 
Operating Partnership Units (OP Units)
     10,420       10,788  
 
    
     
 
 
Total Shares & OP Units
     36,302       33,638  
Dilutive Common Share Equivalents
     204       254  
Diluted
                
 
Shares
     26,086       23,104  
 
Total Shares & OP Units
     36,506       33,892  

-1-

 

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

CONSOLIDATED STATEMENTS OF INCOME

                                                         
            Three Months Ended           Six Months Ended        
           
         
       
($ in 000s, except per share data)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Revenue
                                                
   
Minimum Rent
   $ 65,663     $ 61,830       6.2 %   $ 130,867     $ 123,312       6.1 %
   
Percentage Rent
     601       672       -10.6 %     1,172       1,139       2.9 %
   
Tenant Recoveries
     10,301       10,308       -0.1 %     20,566       20,246       1.6 %
   
Other Property Related Revenue
     6,650       4,536       46.6 %     11,771       8,767       34.3 %
   
Other Non-Property Related Revenue
     1,608       1,889       -14.9 %     2,707       3,653       -25.9 %
 
    
     
             
     
         
     
Total Revenue
     84,823       79,235       7.1 %     167,083       157,117       6.3 %
Operating Expenses
                                                
   
Property Operating Expenses:
                                                
     
General Operating Expenses
     5,944       5,400       10.1 %     11,719       10,683       9.7 %
     
Salaries and Benefits
     3,872       3,850       0.6 %     7,519       7,638       -1.6 %
     
Repairs and Maintenance
     8,876       7,829       13.4 %     17,115       14,939       14.6 %
     
Taxes, Licenses, and Insurance
     7,902       7,296       8.3 %     15,847       14,843       6.8 %
 
    
     
             
     
         
       
Total Property Operating Expenses
     26,594       24,375       9.1 %     52,200       48,103       8.5 %
   
General and Administrative
     5,262       4,472       17.7 %     10,065       8,277       21.6 %
   
Depreciation
     20,112       17,245       16.6 %     39,607       34,676       14.2 %
   
Amortization
     1,958       2,025       -3.3 %     3,940       4,104       -4.0 %
 
    
     
             
     
         
     
Total Operating Expenses
     53,926       48,117       12.1 %     105,812       95,160       11.2 %
 
    
     
             
     
         
 
Income from Operations
     30,897       31,118       -0.7 %     61,271       61,957       -1.1 %
Other Income (Expense)
                                                
   
Interest Expense
     (17,184 )     (15,223 )     12.9 %     (33,760 )     (30,985 )     9.0 %
   
Income from Investments
     5       57       -91.2 %     90       401       -77.6 %
   
Loss on Hedging Activities
     (79 )     —               (316 )     (7 )     4414.3 %
   
Gain on Sale of Property
     2,277       22,304       -89.8 %     2,307       32,112       -92.8 %
   
Other
     167       32               421.9 %     349       —  
 
    
     
             
     
         
     
Total Other Expense
     (14,814 )     7,170       -306.6 %     (31,330 )     1,521       -2159.8 %
 
    
     
             
     
         
 
Income before Minority Interest & Discontinued Operations
     16,083       38,288       -58.0 %     29,941       63,478       -52.8 %
Minority Interest
                                                
   
Minority Interest in CRLP — Preferred
     (2,218 )     (2,218 )     0.0 %     (4,438 )     (4,438 )     0.0 %
   
Minority Interest in CRLP — Common
     (1,634 )     (10,813 )     -84.9 %     (3,873 )     (17,350 )     -77.7 %
 
    
     
             
     
         
     
Total Minority Interest
     (3,852 )     (13,031 )     -70.4 %     (8,311 )     (21,788 )     -61.9 %
 
    
     
             
     
         
 
Income from Continuing Operations
     12,231       25,257       -51.6 %     21,630       41,690       -48.1 %
Discontinued Operations
                                                
   
Income from Discontinued Operations
     —       613       -100.0 %     246       1,162       -78.8 %
   
Gain on Disposal of Discontinued Operations
     —       —                       9,627       —  
   
Minority Interest in Discontinued Operations
     —       (206 )     -100.0 %     (3,272 )     (394 )     730.5 %
 
    
     
             
     
         
 
Income from Discontinued Operations
     —       407       -100.0 %     6,601       768       759.5 %
 
    
     
             
     
         
 
Net Income
     12,231       25,664       -52.3 %     28,231       42,458       -38.7 %
 
    
     
             
     
         
 
Dividends to Preferred Shareholders
     (3,973 )     (3,890 )     2.1 %     (7,863 )     (7,781 )     1.1 %
 
Preferred Share Issuance Costs
     (4,451 )     —                       (4,451 )     —  
 
    
     
             
     
         
 
Net Income Available to Common Shareholders
   $ 3,807     $ 21,774       -82.5 %   $ 15,917     $ 34,677       -54.1 %
 
    
     
             
     
         
 
Earnings per Share — Basic
                                                
   
Continuing Operations
   $ 0.16     $ 0.97       -83.5 %   $ 0.39     $ 1.56       -75.0 %
   
Discontinued Operations
     —       0.02       -100.0 %     0.28       0.04       600.0 %
 
    
     
             
     
         
     
EPS — Basic
   $ 0.16     $ 0.99       -83.8 %   $ 0.67     $ 1.60       -58.1 %
 
    
     
             
     
         
 
Earnings per Share — Diluted
                                                
   
Continuing Operations
   $ 0.15     $ 0.96       -84.4 %   $ 0.39     $ 1.54       -74.7 %
   
Discontinued Operations
     —       0.02       -100.0 %     0.28       0.03       833.3 %
 
    
     
             
     
         
     
EPS — Diluted
   $ 0.15     $ 0.97       -84.5 %   $ 0.66     $ 1.58       -58.2 %
 
    
     
             
     
         

-2-

 

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION

                                                       
          Three Months Ended           Six Months Ended        
         
         
       
($ in 000s, except per share data)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Net Income Available to Common Shareholders
   $ 3,807     $ 21,774       -82.5 %   $ 15,917     $ 34,677       -54.1 %
Minority Interest in CRLP (Operating Ptr Unitholders)
     1,634       11,019       -85.2 %     7,145       17,744       -59.7 %
 
    
     
             
     
         
Total
     5,441       32,793       -83.4 %     23,062       52,421       -47.5 %
Adjustments — Consolidated Properties
                                                
   
Depreciation — Real Estate
     19,806       17,286       14.6 %     39,187       34,832       12.5 %
   
Amortization — Real Estate
     1,018       1,085       -6.2 %     2,143       2,249       -4.7 %
   
Remove: Gain/(Loss) on Sale of Property
     (2,277 )     (22,304 )     -89.8 %     (11,934 )     (32,112 )     -62.8 %
   
Include: Gain/(Loss) on Sale of Undepreciated Property
     2,004       228       778.9 %     2,155       228       845.2 %
   
Straight-Line Rents (Prior to 2003)
     —       (439 )     -100.0 %     —       (781 )     -100.0 %
   
Marketing Fees (Prior to 2003)
     —       1,167       -100.0 %     —       1,658       -100.0 %
 
    
     
             
     
         
     
Total Adjustments — Consolidated
     20,551       (2,977 )     -790.3 %     31,551       6,074       419.4 %
Adjustments — Unconsolidated Properties
                                                
   
Depreciation — Real Estate
     942       603       56.2 %     1,882       1,196       57.4 %
   
Amortization — Real Estate
     23       6       283.3 %     55       11       400.0 %
   
Remove: Gain/(Loss) on Sale of Property
     (3 )     —                       (3 )     —  
   
Include: Gain/(Loss) on Sale of Undepreciated Property
     —       —                       —       —  
   
Straight-Line Rents (Prior to 2003)
     —       (12 )     -100.0 %     —       (22 )     -100.0 %
 
    
     
             
     
         
     
Total Adjustments — Unconsolidated
     962       597       61.1 %     1,934       1,185       63.2 %
 
    
     
             
     
         
 
Funds from Operations
   $ 26,954     $ 30,413       -11.4 %   $ 56,547     $ 59,680       -5.2 %
 
    
     
             
     
         
 
FFO per Share
                                                
   
Basic
   $ 0.78     $ 0.92       -15.4 %   $ 1.65     $ 1.82       -9.2 %
   
Diluted
   $ 0.77     $ 0.91       -15.2 %   $ 1.64     $ 1.80       -9.0 %

Pursuant to the definition of Funds from Operations (“FFO”) adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), FFO is calculated by adjusting net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.

The Company believes that FFO is useful to investors because it provides an additional indicator of the Company’s financial and operating performance. FFO is a widely recognized measure in the Company’s industry. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net cash flows from operating activities (determined in accordance with GAAP), as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED

                                                   
      Three Months Ended           Six Months Ended        
     
         
       
(shares and units in 000s)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Basic
                                                
 
Shares
     24,312       22,040       10.3 %     23,777       21,713       9.5 %
 
Operating Partnership Units (OP Units)
     10,420       11,129       -6.4 %     10,497       11,136       -5.7 %
 
    
     
     
     
     
     
 
 
Total Shares & OP Units
     34,732       33,169       4.7 %     34,274       32,849       4.3 %
Dilutive Common Share Equivalents
     250       319       -21.6 %     204       265       -23.0 %
Diluted
                                                
 
Shares
     24,562       22,359       9.9 %     23,981       21,978       9.1 %
 
Total Shares & OP Units
     34,982       33,488       4.5 %     34,478       33,114       4.1 %

-3-

 

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

SECOND QUARTER SEGMENT DATA & RECONCILIATION

                                                       
          Three Months Ended           Six Months Ended        
         
         
       
          6/30/2003   6/30/2002           6/30/2003   6/30/2002        
         
 
         
 
       
Net Operating Income (NOI)
                                                
 
Divisional Same-Property NOI
                                                
     
Multifamily
     13,684       14,361       -4.7 %     27,246       29,129       -6.5 %
     
Office
     9,076       9,667       -6.1 %     18,278       19,452       -6.0 %
     
Retail
     24,562       25,696       -4.4 %     50,500       51,063       -1.1 %
 
    
     
     
     
     
     
 
     
Total Same-Property
     47,323       49,724       -4.8 %     96,024       99,643       -3.6 %
   
Less: Unconsolidated Assets
     (1,114 )     (1,072 )             (2,219 )     (2,263 )        
 
    
     
             
     
         
   
Same-Property NOI, Consolidated
     46,209       48,652               93,805       97,380          
 
    
     
             
     
         
Divisional Non Same-Property NOI
                                                
   
Multifamily
     1,477       2,894               3,241       6,801          
   
Office
     9,078       2,262               15,760       2,984          
   
Retail
     1,010       713               2,286       1,414          
 
    
     
             
     
         
   
Total Non-Same Property
     11,565       5,869               21,286       11,199          
   
Less: Unconsolidated Assets
     (1,097 )     (525 )             (2,261 )     (1,161 )        
 
    
     
             
     
         
   
Non Same-Property NOI, Consolidated
     10,468       5,344               19,025       10,038          
 
    
     
             
     
         
Divisional Total NOI
                                                
   
Multifamily
     15,162       17,255       -12.1 %     30,487       35,930       -15.1 %
   
Office
     18,154       11,929       52.2 %     34,037       22,436       51.7 %
   
Retail
     25,572       26,409       -3.2 %     52,786       52,477       0.6 %
 
    
     
     
     
     
     
 
   
Total Divisional NOI
     58,888       55,592       5.9 %     117,310       110,842       5.8 %
Less: NOI, Unconsolidated
     (2,211 )     (1,597 )             (4,480 )     (3,424 )        
2002 Discontinued Operations
     —       (385 )             —       (670 )        
2003 Discontinued Operations
     —       (588 )             (440 )     (1,207 )        
Unallocated Corporate Rev
     1,588       1,867               2,571       3,521          
Other Expense
     (36 )     (29 )             (78 )     (47 )        
General & Administrative Expenses
     (5,262 )     (4,472 )             (10,065 )     (8,277 )        
Depreciation
     (20,112 )     (17,245 )             (39,606 )     (34,677 )        
Amortization
     (1,958 )     (2,025 )             (3,940 )     (4,103 )        
 
    
     
             
     
         
Income from Operations, restated for additional discontinued operations
     30,897       31,118               61,272       61,958          
Total Other Income (Expense)
     (14,814 )     7,170               (31,332 )     1,520          
 
    
     
             
     
         
Income from Continuing Operations before Extraordinary Items, Minority Interest and Discontinued Operations, as restated for additional discontinued operation
     16,083       38,288               29,940       63,478          
 
    
     
             
     
         
Add: 2003 Discontinued Operations NOI
     —       588               —       1,207          
2003 Discontinued Operations Deprec/Amortization
     —       (220 )             —       (440 )        
 
    
     
             
     
         
Income from Continuing Operations before Extraordinary Items, Minority Interest and Discontinued Operations, per corresponding
10-K or 10-Q
     16,083       38,657               29,940       64,245          
 
    
     
             
     
         

Divisional NOI is defined as total property revenues, including unconsolidated partnerships and joint ventures, less real estate expenses (such items as repairs and maintenance, payroll, utilities, property taxes, insurance, advertising, management fees). The Company believes Total Divisional NOI (and other NOI measures aggregating segment data) is useful to investors as a meaningful indicator of property level operating performance and current market conditions affecting the Company . Additionally, the Company also believes Total Divisional NOI (and such other NOI measures) is useful to investors because NOI is commonly used industry-wide to evaluate and compare property level operating results of real estate companies, allowing investors to view the Company in comparison to these other real estate companies. The Company cautions investors that other real estate companies may calculate Total Divisional NOI on a basis different than the Company. In addition, Total Divisional NOI (and such other NOI measures) should not be viewed as a substitute measure of performance for GAAP income from continuing operations or other applicable GAAP performance measures.

-4- EX-99.4 4 g84552exv99w4.htm EX-99.4 CORRECTED PAGES TO SUPPLEMENTAL FINANCIALS exv99w4

 

Exhibit 99.4

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

CONSOLIDATED STATEMENTS OF INCOME

                                                         
            Three Months Ended           Six Months Ended        
           
         
       
($ in 000s, except per share data)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Revenue
                                                
   
Minimum Rent
   $ 65,663     $ 61,830       6.2 %   $ 130,867     $ 123,312       6.1 %
   
Percentage Rent
     601       672       -10.6 %     1,172       1,139       2.9 %
   
Tenant Recoveries
     10,301       10,308       -0.1 %     20,566       20,246       1.6 %
   
Other Property Related Revenue
     6,650       4,536       46.6 %     11,771       8,767       34.3 %
   
Other Non-Property Related Revenue
     1,608       1,889       -14.9 %     2,707       3,653       -25.9 %
 
    
     
             
     
         
     
Total Revenue
     84,823       79,235       7.1 %     167,083       157,117       6.3 %
Operating Expenses
                                                
   
Property Operating Expenses:
                                                
     
General Operating Expenses
     5,944       5,400       10.1 %     11,719       10,683       9.7 %
     
Salaries and Benefits
     3,872       3,850       0.6 %     7,519       7,638       -1.6 %
     
Repairs and Maintenance
     8,876       7,829       13.4 %     17,115       14,939       14.6 %
     
Taxes, Licenses, and Insurance
     7,902       7,296       8.3 %     15,847       14,843       6.8 %
 
    
     
             
     
         
       
Total Property Operating Expenses
     26,594       24,375       9.1 %     52,200       48,103       8.5 %
   
General and Administrative
     5,262       4,472       17.7 %     10,065       8,277       21.6 %
   
Depreciation
     20,112       17,245       16.6 %     39,607       34,676       14.2 %
   
Amortization
     1,958       2,025       -3.3 %     3,940       4,104       -4.0 %
 
    
     
             
     
         
     
Total Operating Expenses
     53,926       48,117       12.1 %     105,812       95,160       11.2 %
 
    
     
             
     
         
 
Income from Operations
     30,897       31,118       -0.7 %     61,271       61,957       -1.1 %
Other Income (Expense)
                                                
   
Interest Expense
     (17,184 )     (15,223 )     12.9 %     (33,760 )     (30,985 )     9.0 %
   
Income from Investments
     5       57       -91.2 %     90       401       -77.6 %
   
Loss on Hedging Activities
     (79 )     —               (316 )     (7 )     4414.3 %
   
Gain on Sale of Property
     2,277       22,304       -89.8 %     2,307       32,112       -92.8 %
   
Other
     167       32       421.9 %     349       —          
 
    
     
             
     
         
     
Total Other Expense
     (14,814 )     7,170       -306.6 %     (31,330 )     1,521       -2159.8 %
 
    
     
             
     
         
 
Income before Minority Interest & Discontinued Operations
     16,083       38,288       -58.0 %     29,941       63,478       -52.8 %
Minority Interest
                                                
   
Minority Interest in CRLP — Preferred
     (2,218 )     (2,218 )     0.0 %     (4,438 )     (4,438 )     0.0 %
   
Minority Interest in CRLP — Common
     (1,634 )     (10,813 )     -84.9 %     (3,873 )     (17,350 )     -77.7 %
 
    
     
             
     
         
     
Total Minority Interest
     (3,852 )     (13,031 )     -70.4 %     (8,311 )     (21,788 )     -61.9 %
 
    
     
             
     
         
 
Income from Continuing Operations
     12,231       25,257       -51.6 %     21,630       41,690       -48.1 %
Discontinued Operations
                                                
   
Income from Discontinued Operations
     —       613       -100.0 %     246       1,162       -78.8 %
   
Gain on Disposal of Discontinued Operations
     —       —               9,627       —          
   
Minority Interest in Discontinued Operations
     —       (206 )     -100.0 %     (3,272 )     (394 )     730.5 %
 
    
     
             
     
         
 
Income from Discontinued Operations
     —       407       -100.0 %     6,601       768       759.5 %
 
    
     
             
     
         
 
Net Income
     12,231       25,664       -52.3 %     28,231       42,458       -33.5 %
 
    
     
             
     
         
 
Dividends to Preferred Shareholders
     (3,973 )     (3,890 )     2.1 %     (7,863 )     (7,781 )     1.1 %
 
Preferred Share Issuance Costs
     (4,451 )     —               (4,451 )     —          
 
    
     
             
     
         
 
Net Income Available to Common Shareholders
   $ 3,807     $ 21,774       -82.5 %   $ 15,917     $ 34,677       -54.1 %
 
    
     
             
     
         
 
Earnings per Share — Basic
                                                
   
Continuing Operations
   $ 0.16     $ 0.97       -83.5 %   $ 0.39     $ 1.56       -75.0 %
   
Discontinued Operations
     —       0.02       -100.0 %     0.28       0.04       600.0 %
 
    
     
             
     
         
     
EPS — Basic
   $ 0.16     $ 0.99       -83.8 %   $ 0.67     $ 1.60       -58.1 %
 
    
     
             
     
         
 
Earnings per Share — Diluted
                                                
   
Continuing Operations
   $ 0.15     $ 0.96       -84.4 %   $ 0.39     $ 1.54       -74.7 %
   
Discontinued Operations
     —       0.02       -100.0 %     0.28       0.03       833.3 %
 
    
     
             
     
         
     
EPS — Diluted
   $ 0.15     $ 0.97       -84.5 %   $ 0.66     $ 1.58       -58.2 %
 
    
     
             
     
         

-5-

 

COLONIAL PROPERTIES TRUST
Financial Statements
Second Quarter 2003

SECOND QUARTER FUNDS FROM OPERATIONS (FFO) RECONCILIATION

                                                       
          Three Months Ended           Six Months Ended        
         
         
       
($ in 000s, except per share data)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Net Income Available to Common Shareholders
   $ 3,807     $ 21,774       -82.5 %   $ 15,917     $ 34,677       -54.1 %
Minority Interest in CRLP (Operating Ptr Unitholders)
     1,634       11,019       -85.2 %     7,145       17,744       -59.7 %
 
    
     
             
     
         
Total
     5,441       32,793       -83.4 %     23,062       52,421       -56.0 %
Adjustments — Consolidated Properties
                                                
   
Depreciation — Real Estate
     19,806       17,286       14.6 %     39,187       34,832       12.5 %
   
Amortization — Real Estate
     1,018       1,085       -6.2 %     2,143       2,249       -4.7 %
   
Remove: Gain/(Loss) on Sale of Property
     (2,277 )     (22,304 )     -89.8 %     (11,934 )     (32,112 )     -62.8 %
   
Include: Gain/(Loss) on Sale of Undepreciated Property
     2,004       228       778.9 %     2,155       228       845.2 %
   
Straight-Line Rents (Prior to 2003)
     —       (439 )     -100.0 %     —       (781 )     -100.0 %
   
Marketing Fees (Prior to 2003)
     —       1,167       -100.0 %     —       1,658       -100.0 %
 
    
     
             
     
         
     
Total Adjustments — Consolidated
     20,551       (2,977 )     -790.3 %     31,551       6,074       419.4 %
Adjustments — Unconsolidated Properties
                                                
   
Depreciation — Real Estate
     942       603       56.2 %     1,882       1,196       57.4 %
   
Amortization — Real Estate
     23       6       283.3 %     55       11       400.0 %
   
Remove: Gain/(Loss) on Sale of Property
     (3 )     —               (3 )     —          
   
Include: Gain/(Loss) on Sale of Undepreciated Property
     —       —               —       —          
   
Straight-Line Rents (Prior to 2003)
     —       (12 )     -100.0 %     —       (22 )     -100.0 %
 
    
     
             
     
         
     
Total Adjustments — Unconsolidated
     962       597       61.1 %     1,934       1,185       63.2 %
 
    
     
             
     
         
Funds from Operations
   $ 26,954     $ 30,413       -11.4 %   $ 56,547     $ 59,680       -5.2 %
 
    
     
             
     
         
FFO per Share
                                                
   
Basic
   $ 0.78     $ 0.92       -15.4 %   $ 1.65     $ 1.82       -9.2 %
   
Diluted
   $ 0.77     $ 0.91       -15.2 %   $ 1.64     $ 1.80       -9.0 %

Pursuant to the definition of Funds from Operations (“FFO”) adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), FFO is calculated by adjusting net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.

The Company believes that FFO is useful to investors because it provides an additional indicator of the Company’s financial and operating performance. FFO is a widely recognized measure in the Company’s industry. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net cash flows from operating activities (determined in accordance with GAAP), as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

SECOND QUARTER SHARES AND UNITS OUTSTANDING, WEIGHTED

                                                   
      Three Months Ended           Six Months Ended        
     
         
       
(shares and units in 000s)   6/30/2003   6/30/2002           6/30/2003   6/30/2002        
   
 
         
 
       
Basic
                                                
 
Shares
     24,312       22,040       10.3 %     23,777       21,713       9.5 %
 
Operating Partnership Units (OP Units)
     10,420       11,129       -6.4 %     10,497       11,136       -5.7 %
 
    
     
     
     
     
     
 
 
Total Shares & OP Units
     34,732       33,169       4.7 %     34,274       32,849       4.3 %
Dilutive Common Share Equivalents
     250       319       -21.6 %     204       265       -23.0 %
Diluted
                                                
 
Shares
     24,562       22,359       9.9 %     23,981       21,978       9.1 %
 
Total Shares & OP Units
     34,982       33,488       4.5 %     34,478       33,114       4.1 %

-6-

 

COLONIAL PROPERTIES TRUST
Corporate — Trends
($ in 000s, except per share data)

NET INCOME TO COMMON SHAREHOLDERS

                                                                                       
          1Q02   2Q02   3Q02   4Q02   FYE '02   1Q03   2Q03   3Q03   4Q03   YTD '03
         
 
 
 
 
 
 
 
 
 
Net Income to Common S/H
   $ 12,905     $ 21,774     $ 12,104     $ 11,029     $ 57,812     $ 12,109     $ 3,807                     $ 15,916  
 
Earnings per Share
                                                                                
   
- Basic
   $ 0.60     $ 0.99     $ 0.54     $ 0.49     $ 2.61     $ 0.52     $ 0.16                     $ 0.67  
     
growth
     122.2 %     182.9 %     -5.3 %     -41.7 %     28.6 %     -13.1 %     -84.2 %                     -57.9 %
   
- Diluted
   $ 0.60     $ 0.97     $ 0.53     $ 0.48     $ 2.58     $ 0.52     $ 0.15                     $ 0.66  
     
growth
     122.2 %     177.1 %     -7.0 %     -42.2 %     27.7 %     -13.8 %     -84.0 %                     -58.0 %

FUNDS FROM OPERATIONS RECONCILIATION

                                                                                         
Net Income to Common S/H
   $ 12,905     $ 21,774     $ 12,104     $ 11,029     $ 57,812     $ 12,109     $ 3,807                     $ 15,916  
Minority Int. in CRLP (Cont & Disc)
     6,725       11,019       5,769       5,143       28,656       5,512       1,634                       7,146  
 
    
     
     
     
     
     
     
                     
 
Total
     19,630       32,793       17,873       16,172       86,468       17,621       5,441                       23,062  
Adjustments — Consolidated
                                                                                
   
Depreciation — Real Estate
     17,546       17,286       18,214       19,403       72,449       19,381       19,806                       39,187  
   
Amortization — Real Estate
     1,164       1,085       1,192       1,516       4,957       1,125       1,018                       2,143  
   
Extraordinary (Income)/Loss
     —       —       —       —       —       —       —                       —  
   
’-’:(Gain)/Loss-Sale of Prop
     (9,808 )     (22,304 )     (6,683 )     (2,758 )     (41,552 )     (9,656 )     (2,277 )                     (11,934 )
   
’+’:Gain/(Loss)-Undeprec Prop
     —       228       741       2,627       3,596       151       2,004                       2,155  
   
Strt Line Rents (Prior to 2003)
     (342 )     (439 )     (588 )     (710 )     (2,079 )     —       —                       —  
   
Marketing Fees (Prior to 2003)
     491       1,167       —       —       1,658       —       —                       —  
 
    
     
     
     
     
     
     
                     
 
       
Total Adjustments — Cons
     9,051       (2,977 )     12,877       20,079       39,029       11,001       20,551                       31,551  
Adjustments — Unconsolidated
                                                                                
   
Depreciation — Real Estate
     593       603       622       885       2,703       940       942                       1,882  
   
Amortization — Real Estate
     5       6       6       50       67       32       23                       55  
   
Extraordinary (Income)/Loss
     —       —       —               —       —       —                       —  
   
’-’:(Gain)/Loss-Sale of Prop
     —       —       —       (580 )     (580 )     —       (3 )                     (3 )
   
’+’:Gain/(Loss)-Undeprec Prop
     —       —       —       —       —       —       —                       —  
   
Strt Line Rents (Prior to 2003)
     (10 )     (12 )     (1 )     (12 )     (35 )     —       —                       —  
 
    
     
     
     
     
     
     
                     
 
       
Total Adjustments — Uncons
     588       597       627       343       2,155       972       962                       1,934  
 
                    
     
     
     
     
                     
 
 
Funds from Operations
   $ 29,269     $ 30,413     $ 31,377     $ 36,594     $ 127,652     $ 29,593     $ 26,954                     $ 56,547  
 
    
     
     
     
     
     
     
                     
 
 
FFO Per Share
                                                                                
   
- Basic
   $ 0.90     $ 0.92     $ 0.94     $ 1.09     $ 3.85     $ 0.88     $ 0.78                     $ 1.65  
     
growth
     12.5 %     3.4 %     -1.1 %     -6.0 %     1.3 %     -2.7 %     -15.4 %                     -9.2 %
   
- Diluted
   $ 0.89     $ 0.91     $ 0.93     $ 1.08     $ 3.82     $ 0.87     $ 0.77                     $ 1.64  
     
growth
     12.4 %     2.6 %     -1.4 %     -6.5 %     1.0 %     -2.6 %     -15.2 %                     -9.0 %

Pursuant to the definition of Funds from Operations (“FFO”) adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), FFO is calculated by adjusting net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis.

The Company believes that FFO is useful to investors because it provides an additional indicator of the Company’s financial and operating performance. FFO is a widely recognized measure in the Company’s industry. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net cash flows from operating activities (determined in accordance with GAAP), as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

-7-

 

COLONIAL PROPERTIES TRUST
Corporate — Trends
($ in 000s, except per share data)

DIVIDEND SUMMARY

                                                                                   
      1Q02   2Q02   3Q02   4Q02   FYE '02   1Q03   2Q03   3Q03   4Q03   YTD '03
     
 
 
 
 
 
 
 
 
 
Price per Share (End of Period)
   $ 34.45     $ 38.95     $ 36.18     $ 33.94             $ 33.08     $ 35.19                          
Dividend Per Share
   $ 0.66     $ 0.66     $ 0.66     $ 0.66     $ 2.64     $ 0.665     $ 0.665                     $ 1.330  
Dividend Yield (End of Period)
     7.7 %     6.8 %     7.3 %     7.8 %             8.0 %     7.6 %                        
Payout
                                                                                
 
Dividend/EPS — Diluted
     110.0 %     68.0 %     124.5 %     137.5 %     102.3 %     128.5 %     429.0 %                     201.5 %
 
Dividend/FFO — Diluted
     73.8 %     72.7 %     70.9 %     60.9 %     69.1 %     76.4 %     86.3 %                     81.1 %

See Funds from Operations Reconciliation on page 8 for a reconcilation of FFO to earnings. Dividend/FFO — Diluted is useful to investors as an additional measure to determine the Company’s ability to pay its dividend.

SHARES & UNITS

                                                                                   
Shares
                                                                                
 
Basic — Weighted Avg
     21,382       22,040       22,517       22,659       22,154       23,236       24,312                       23,777  
 
Diluted — Weighted Avg
     21,600       22,359       22,800       22,886       22,408       23,405       24,562                       23,981  
 
Outstanding (End of Period)
     21,891       22,418       22,573       22,850               23,529       25,882                          
Units
                                                                                
 
Weighted Avg
     11,144       11,129       10,909       10,885               10,576       10,420                          
 
Outstanding (End of Period)
     11,143       10,913       10,902       10,789               10,420       10,420                          
Shares & Units
                                                                                
 
Basic — Weighted Avg
     32,526       33,169       33,426       33,544       33,170       33,812       34,732                       34,274  
 
Diluted — Weighted Avg
     32,744       33,488       33,709       33,771       33,424       33,981       34,982                       34,478  
 
Outstanding (End of Period)
     33,034       33,331       33,475       33,639               33,949       36,302                          

SEGMENT DATA SUMMARY*(1)

                                                                                     
Same-Property Portfolio*(2)
                                                                                
 
Divisional Revenues
     71,607       72,306       71,545       75,067       290,524       70,813       70,253                       141,066  
 
Divisional Expenses
     21,687       22,582       21,956       22,094       88,319       22,112       22,930                       45,042  
 
    
     
     
     
     
     
     
                     
 
 
Divisional NOI
     49,920       49,724       49,588       52,973       202,205       48,701       47,323                       96,024  
 
    
     
     
     
     
     
     
                     
 
   
Divisional NOI Margin
     69.7 %     68.8 %     69.3 %     70.6 %     69.6 %     68.8 %     67.4 %                     68.1 %
   
growth*(3,4)
     1.4 %     -3.9 %     -3.1 %     -4.4 %     -2.6 %     -2.4 %     -4.8 %                     -3.6 %
 
Same-Property without LBOs
                                                                                
   
Lease Buyouts (LBOs)
     (396 )     (605 )     (1,753 )     (822 )     (3,575 )     (636 )     (187 )                     (823 )
 
    
     
     
     
     
     
     
                     
 
   
Divisional NOI w/o LBOs
     49,524       49,119       47,835       52,152       198,630       48,065       47,136                       95,200  
 
    
     
     
     
     
     
     
                     
 
   
growth w/o buyouts
                                             -2.9 %     -4.0 %                     -3.5 %

Same-Property growth without the effects of lease buyouts is useful to investors as an additional indicator as to the Company’s operating performance because buyouts of commercial leases can fluctuate from quarter to quarter and year to year.

                                                                                     
Total Portfolio
                                                                                
 
Divisional Revenues*(3)
     80,733       81,859       83,960       90,999       337,552       85,911       87,162                       173,073  
 
Divisional Expenses
     25,483       26,267       25,995       27,410       105,155       27,489       28,274                       55,763  
 
    
     
     
     
     
     
     
                     
 
 
Divisional NOI
     55,250       55,592       57,964       63,590       232,396       58,422       58,888                       117,310  
 
    
     
     
     
     
     
     
                     
 
   
Divisional NOI Margin
     68.4 %     67.9 %     69.0 %     69.9 %     68.8 %     68.0 %     67.6 %                     67.8 %
   
growth*(4)
     0.8 %     -2.1 %     3.0 %     6.0 %     2.0 %     5.7 %     5.9 %                     5.8 %

TOTAL PORTFOLIO RESULTS

Notes:
 
(1)   See Segment Data and Reconciliation beginning on page 10.
 
(2)   The 2002 same-property data reflects results of the 2003 same-property portfolio, as adjusted for dispositions during year and including straight-line rents.
 
(3)   The 2002 same-property growth reflects performance of the 2002 same-property portfolio.
 
(4)   2002 Actuals have been restated to include the effects of straight-line rents for comparative purposes.

-8-

 

COLONIAL PROPERTIES TRUST
Corporate — Trends
($ in 000s, except per share data)

EBITDA RECONCILIATION

                                                                                     
        1Q02   2Q02   3Q02   4Q02   FYE '02   1Q03   2Q03   3Q03   4Q03   YTD '03
       
 
 
 
 
 
 
 
 
 
Net Income to Common S/H
   $ 12,905     $ 21,774     $ 12,104     $ 11,029     $ 57,812     $ 12,109     $ 3,807                     $ 15,916  
Consolidated
                                                                                
 
Minority Interest
     6,725       11,019       5,769       5,143       28,656       5,512       1,634                       7,146  
 
(Inc)/Loss — Uncons. Assets
     (344 )     (57 )     (585 )     (982 )     (1,968 )     (88 )     (181 )                     (269 )
 
ITDA from Disc Ops *(1)
     371       45       282       225       923       194       —                       194  
 
Preferred Dividends
     6,110       6,110       6,110       6,110       24,438       6,110       6,192                       12,301  
 
Preferred Share Issuance Costs
                                     —       —       4,451                       4,451  
 
Interest Expense
     15,763       15,222       16,820       17,460       65,265       16,576       17,184                       33,760  
 
Income Tax Expense
     33       (33 )     —       618       618       (181 )     (167 )                     (348 )
 
Depreciation & Amortization
     19,510       19,270       20,421       22,415       81,616       21,476       21,805                       43,281  
 
(Gain)/Loss on Sale (Cont & Disc)
     (9,808 )     (22,304 )     (6,683 )     (2,758 )     (41,552 )     (9,656 )     (2,277 )                     (11,934 )
 
Gain/(Loss)-Undeprec Prop *(2,3)
     —       228       741       2,403       3,372       151       2,004                       2,155  
 
    
     
     
     
     
     
     
                     
 
 
EBITDA from Consolidated Props
     51,264       51,274       54,979       61,663       219,180       52,202       54,451                       106,653  
 
    
     
     
     
     
     
     
                     
 
Unconsolidated
                                                                                
 
Reverse: Inc/(Loss) — Uncons
     344       57       585       982       1,968       88       181                       269  
 
Interest Expense
     884       925       918       1,150       3,877       1,199       1,200                       2,399  
 
Income Tax Expense
     —       —       —       —       —       —       —                       —  
 
Depreciation & Amortization
     617       634       653       942       2,846       1,129       843                       1,972  
 
(Gain)/Loss on Sale of Prop
     —       —       —       (580 )     (580 )     —       (3 )                     (3 )
 
    
     
     
     
     
     
     
                     
 
EBITDA
   $ 53,109     $ 52,890     $ 57,135     $ 64,157     $ 227,290     $ 54,618     $ 56,672                     $ 111,291  
 
    
     
     
     
     
     
     
                     
 

EBITDA is defined as earnings before interest, taxes, depreciation and amortization (“EBITDA”), including the effects of the Company’s percentage ownership of its unconsolidated partnerships and joint ventures; the calculation also excludes the effects of gains (losses) from depreciated property. The Company believes EBITDA is useful to investors as an indicative measure of operating performance due to the significant long-lived real estate exposure and because it can be used to measure the Company’s ability to service debt, fund capital expenditures and expand its business. However, EBITDA should not be considered an alternative to net income, operating profit, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP. In addition, EBITDA as calculated by the Company, may not be comparable to similarly titled measures used by other companies. Investors are cautioned that the items adjusted to Net Income to Common Shareholders are significant components in understanding and assessing the Company’s financial performance.

SUPPLEMENTAL DATA

                                                                                   
Consolidated
                                                                                
 
3-Party Mgt & Leasing Fee Rev
   $ 1,100     $ 1,394     $ 950     $ 1,171     $ 4,615     $ 1,022     $ 1,504                     $ 2,526  
 
Percentage Rents
     485       674       584       1,799       3,542       571       601                       1,172  
 
Lease Buyouts
     396       606       1,753       971       3,726       636       2,412                       3,048  
 
Straight Line Rents*(4)
     342       439       588       710       2,079       1,051       626                       1,677  
 
Interest Expense
     15,763       15,222       16,820       17,460       65,265       16,576       17,184                       33,760  
 
Capitalized Interest
     2,574       2,229       1,796       1,464       8,064       1,327       1,389                       2,716  
 
Debt — Principal Amortization
     801       988       1,117       1,382       4,288       1,454       1,354                       2,808  
 
Preferred Dividend Payments
     6,110       6,110       6,110       6,110       24,438       6,110       6,192                       12,301  
 
Preferred Share Issuance Costs
                                     —               4,451                       4,451  
 
Amort of Deferred Finan’g Costs
     765       793       843       1,236       3,637       711       794                       1,505  
 
Amort of Stock Compensation
     197       319       289       302       1,107       340       326                       666  
Unconsolidated*(5)
                                                                                
 
Straight Line Rents*(4)
     10       12       1       12       35       42       40                       82  
 
Interest Expense
     884       925       918       1,150       3,877       1,199       1,200                       2,399  
 
Capitalized Interest
     23       —       —       —       23       —       —                       —  
 
Debt — Principal Reductions
     93       247       104       307       750       176       151                       327  
 
Amort of Deferred Finan’g Costs
     19       19       19       19       75       19       19                       38  

Notes:
 
(1)   The effects of interest, taxes, depreciation and amortization from discontinued operations which are not reflected in the above scheduled line items.
 
(2)   The Company includes the effects of undepreciated real estate (e.g. land and outparcels) in EBITDA, as this is a recurring source of cash.
 
(3)   To agree with the 4Q gain reflected in the Reconciliation to FFO of $2,627, $224K of Income Tax Expense must be included. The $224K is the tax expense associated with a property disposition. Per the NAREIT’s Accounting Quarterly Update, July 2000, the gain and tax associated with the disposition of property should be excluded from the calculation of FFO.
 
(4)   Post 2002, the effects of straight line rents are included in the calculation of FFO, according The NAREIT’s White Paper.
 
(5)   The unconsolidated revenue and expense data are comprised of the Company’s percentage of the applicable line item, which is calculated in accordance with GAAP, for its unconsolidated partnerships and joint ventures. The Company believes this unconsolidated data is useful to investors in measuring the Company’s rights to cash flows and debt obligations related to the Company’s unconsolidated partnerships and joint ventures. The Company manages or leases each of its unconsolidated assets. Incorporating unconsolidated data also provides investors with management’s view of evaluating current operating performance and trends.

-9-

 

COLONIAL PROPERTIES TRUST
Corporate — Trends
($ in 000s, except per share data)

COVERAGE RATIOS

                                                                                     
        1Q02   2Q02   3Q02   4Q02   FYE '02   1Q03   2Q03   3Q03   4Q03   YTD '03
       
 
 
 
 
 
 
 
 
 
 
SEC Coverage Ratios (SEC Reg. S-K, Item 503)
                                                                                
 
Earnings to Fixed Charges
     1.6       1.7       1.6       1.8       1.7       1.5       1.5                       1.5  
 
Earnings to Fixed Charges & Preferred Share Distributions
     1.3       1.4       1.4       1.6       1.4       1.3       1.3                       1.3  
Reconciliation of SEC Coverage Ratios
                                                                                
Earnings
                                                                                
 
Net Income (before pfd share)
     16,796       25,665       15,995       14,920       73,377       16,000       12,231                       28,232  
 
Discontinued Operations:
                                                                                
   
Minority Interest in CRLP
     —       —       1,977       184       2,161       3,088       —                       3,088  
   
Gain on Disposal
     —       —       (6,069 )     —       (6,069 )     (9,627 )     —                       (9,627 )
 
CRLP Min Int. — Common U/H
     6,725       11,019       3,792       4,959       26,495       2,424       1,634                       4,058  
 
Gains from Sales of Property
     (9,808 )     (22,304 )     (613 )     (2,757 )     (35,483 )     (29 )     (2,277 )                     (2,307 )
 
Income Tax Expense
     33       (33 )             -618       618       (181 )     (167 )                     (348 )
 
Income from Ptly-Owned Entities
     (344 )     (57 )     (585 )     (982 )     (1,968 )     (85 )     5                       (80 )
 
    
     
     
     
     
     
     
                     
 
 
     13,402       14,290       14,497       16,942       59,132       11,590       11,426                       23,016  
 
Amort of Interest Capitalized
     375       375       375       375       1,500       400       400                       800  
 
Capitalized Interest
     (2,574 )     (2,229 )     (1,796 )     (1,464 )     (8,064 )     (1,327 )     (1,389 )                     (2,716 )
 
Distrib from Ptly-Owned Entities
     527       1,016       956       2,921       5,420       615       1,420                       2,035  
 
Fixed Charges, from below
     21,320       20,462       21,677       22,378       85,838       20,833       21,585                       42,418  
 
    
     
     
     
     
     
     
                     
 
 
Earnings
     33,050       33,915       35,709       41,152       143,826       32,110       33,442                       65,552  
 
    
     
     
     
     
     
     
                     
 
Fixed Charges
                                                                                
 
Interest Expense
     15,763       15,222       16,820       17,460       65,265       16,576       17,184                       33,760  
 
Capitalized Interest
     2,574       2,229       1,796       1,464       8,064       1,327       1,389                       2,716  
 
Amort of Deferred Finan’g Costs
     765       793       843       1,236       3,637       711       794                       1,505  
 
Distrib to Series B Pfd Unitholders
     2,218       2,218       2,218       2,218       8,873       2,218       2,218                       4,437  
 
    
     
     
     
     
     
     
                     
 
 
Total
     21,320       20,462       21,677       22,378       85,838       20,833       21,585                       42,418  
 
    
     
     
     
     
     
     
                     
 
Fixed Charges & Preferred Share Distributions Add: Distrib-Pfd Share Series A, C & D
     3,891       3,891       3,891       3,891       15,565       3,891       3,973                       7,865  
 
    
     
     
     
     
     
     
                     
 
 
Total
     25,211       24,354       25,569       26,270       101,403       24,724       25,559                       50,282  
 
    
     
     
     
     
     
     
                     
 
 
Supplemental Coverage Ratios
                                                                                
 
Interest Coverage*(1)
     3.2       3.3       3.2       3.4       3.3       3.1       3.1                       3.1  
 
Fixed Charge Coverage*(2)
     2.2       2.3       2.3       2.4       2.3       2.1       2.2                       2.2  
 
Fixed Charge w/ Cap Int*(3)
     2.0       2.1       2.1       2.3       2.1       2.0       2.1                       2.0  

Coverage ratios as calculated by the Company may not be comparable to similarly titled measures used by other companies. Investors are cautioned that these measures should not be taken alone to determine a Company’s financial status.

Reconciliation of Supplemental Coverage Ratios

See EBITDA Reconciliation on page 14.

                                                                                   
Interest Coverage Denominator
                                                                                
 
Interest Expense
     15,763       15,222       16,820       17,460       65,265       16,576       17,184                       33,760  
 
Interest Exp. — Discontinued Op
     —       —       —       —       —       —       —                       —  
 
Interest Exp. — Unconsolidated
     884       925       918       1,150       3,877       1,199       1,200                       2,399  
 
    
     
     
     
     
     
     
                     
 
 
Total Interest Expense
     16,647       16,147       17,738       18,610       69,141       17,775       18,384                       36,159  
 
    
     
     
     
     
     
     
                     
 
Fixed Charge Denominator
                                                                                
 
Add: Preferred Dividend Pmts
     6,110       6,110       6,110       6,110       24,438       6,110       6,192                       12,301  
 
Debt Principal Amortization
     801       988       1,117       1,382       4,288       1,454       1,354                       2,808  
 
Debt Prin Amort — Disc’d Op
     —       —       —       —       —       —       —                       —  
 
Debt Prin Amort — Uncons’d
     93       247       104       307       750       176       151                       327  
 
    
     
     
     
     
     
     
                     
 
 
Total Fixed Charges
     23,650       23,492       25,068       26,408       98,617       25,515       26,081                       51,595  
 
    
     
     
     
     
     
     
                     
 
Fixed Charge w/ Capitalized Interest Denominator
                                                                                
 
Add: Capitalized Interest
     2,574       2,229       1,796       1,464       8,064       1,327       1,389                       2,716  
 
Cap Interest — Discontinued Op
     —       —       —       —       —       —       —                       —  
 
Cap Interest — Unconsolidated
     23       —       —       —       23       —       —                       —  
 
    
     
     
     
     
     
     
                     
 
 
Total Fixed Charges w/ Cap Int
     26,247       25,721       26,864       27,872       106,704       26,842       27,470                       54,311  
 
    
     
     
     
     
     
     
                     
 

Notes:
 
(1)   EBITDA/Interest Expense, including unconsolidated partnerships and joint ventures. The Company believes this ratio is useful as an additional measure of the Company’s ability to service debt. Additionally, management uses this ratio to make balance sheet management decisions.
 
(2)   EBITDA/Interest Exp + Pfd Dividends+Debt Prin Repayments, including unconsolidated partnerships and joint ventures. The Company believes this ratio is useful as an additional measure of the Company’ s ability to service debt. Additionally, Management uses this ratio to make balance sheet management decisions.
 
(3)   EBITDA/Interest Exp+Capitalized Interest+Pfd Div+Debt Prin Repayments, including unconsolidated partnerships and joint ventures. The Company believes this ratio is useful as an additional measure of the Company’ s ability to service debt. Additionally, management uses this ratio to make balance sheet management decisions.

-10- EX-99.5 5 g84552exv99w5.htm EX-99.5 PRESS RELEASE DATED 8/14/03 exv99w5

 

COLONIAL PROPERTIES TRUST LOGO

Exhibit 99.5

     
Listed on the New York Stock Exchange (CLP)   NEWS RELEASE
   

FOR IMMEDIATE RELEASE

COLONIAL PROPERTIES TRUST
CLARIFIES PREFERRED SHARE REDEMPTION
PURSUANT TO EITF TOPIC NO. D-42

BIRMINGHAM, Ala., August 14, 2003—Colonial Properties Trust (NYSE: CLP) (the “Company”) announced the accounting for the redemption of its 8.75% Series A Preferred Shares (“Preferred”) will be amended in consideration of the Securities and Exchange Commission (“SEC”) Staff Policy Statement issued on July 31, 2003, which clarifies the application of Emerging Issues Task Force (“EITF”) Topic No. D-42 “The Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock”.

In November 1997, the Company issued $125.0 million of Series A Preferred shares and paid $4.5 million of costs in connection with this issuance, which resulted in a net carrying value of the Preferred shares of $120.5 million. When the Preferred was redeemed in the second quarter of 2003, the Company recorded the fair value of the consideration transferred to the Preferred shareholders of $125.0 million as a reduction of shareholders’ equity.

Following the Company’s July 28, 2003 second quarter earnings announcement, the SEC issued its clarification on the application of EITF Abstracts, Topic No. D-42. In accordance with the SEC’s clarification, the Company will reflect the excess of the fair value of the consideration transferred to the holders of the Preferred shares over the carrying amount of these preferred shares, which is $4.5 million or $0.13 per diluted share, as a reduction of earnings to arrive at net income available to common shareholders in the quarter ending June 30, 2003. The Company will also reduce its funds from operations by the same amount. These changes do not affect the Company’s liquidity.

Second Quarter

Reflecting the clarification of the Preferred redemption, second quarter 2003 fully diluted earnings per share (“EPS”) and funds from operations per share (“FFO”) are as follows:

                         
    2Q '03   Less:   2Q '03
    As   Preferred Share   As
    Reported   Issuance Costs   Clarified
   
 
 
Fully Diluted Earnings per Share
   $ 0.28     $ 0.13     $ 0.15  
Plus: Real Estate Depreciation & Amortization
     0.63       0.00       0.63  
Less: Gain on Sale of Assets
     (0.01 )     0.00       (0.01 )
 
    
     
     
 
Fully Diluted Funds from Operations per Share
   $ 0.90     $ 0.13     $ 0.77  

The Company has reflected this adjustment in a revised version its supplemental information package that provides detailed information regarding operating performance, investing activities and the Company’s overall financial position. For a copy of the Company’s detailed Supplemental Financial Highlights, please visit the Company’s website at www.colonialprop.com under the “Investor Relations: Financial Reporting” tab or contact Investor Relations at 800-645-3917.

Guidance

The Company has adjusted its full year guidance to reflect the clarification of the Preferred redemption for both EPS and FFO, as follows:

                 
    Range
   
Fully Diluted Earnings per Share
   $ 1.32     $ 1.46  
Plus: Real Estate Depreciation & Amortization
     2.54       2.54  
Less: Gain on Sale of Assets
     (0.42 )     (0.42 )
 
    
     
 
Fully Diluted Funds from Operations per Share
   $ 3.44     $ 3.58  

 

 

COLONIAL PROPERTIES TRUST LOGO

     
Listed on the New York Stock Exchange (CLP)   NEWS RELEASE
   

Company Summary

Colonial Properties Trust is a diversified REIT that, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. Colonial Properties Trust is a diversified REIT, which has a total market capitalization of $2.8 billion. The cornerstone of Colonial Properties’ success is its live, work and shop diversified investment strategy. The Company manages or leases 19,500 apartment units, 6.5 million square feet of office space and 15.6 million square feet of retail shopping space. In 2003, the National Association of Industrial and Office Properties (NAIOP) named Colonial Properties Trust “National Developer of the Year”. Additional information on Colonial Properties Trust is available on the Internet at www.colonialprop.com. The Company, headquartered in Birmingham, Ala., is listed on the New York Stock Exchange under the symbol “CLP” and is included in the S&P SmallCap 600 Index.

Forward Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding Company and property performance, and is based on the Company’s current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, competitive factors specific to markets in which Colonial Properties operates, legislative or other regulatory decisions, future interest rate levels or capital markets conditions. The Company assumes no liability to update this information. For more details, please refer to the Company’s SEC filings, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.

- # # # -

     
Contact:   Sandra Lee Robertson, Senior Vice President — Finance, 205.250.8788
    Linda S. Geiss, Vice President — Media Relations, 205.250.8768

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