Colony Capital, Inc. - FORM 8-K - EX-99.4 - PRO FORMA CONSOLIDATED BALANCE SHEET - December 20, 2010

Attached files

file filename
8-K - FORM 8-K - Colony Capital, Inc.d8k.htm
EX-99.1 - FINANCIAL STATEMENTS OF COLFIN FRB INVESTOR, LLC - Colony Capital, Inc.dex991.htm
EX-23.1 - CONSENT OF ERNST & YOUNG LLP - Colony Capital, Inc.dex231.htm
EX-23.2 - CONSENT OF PRICEWATERHOUSECOOPERS LLP - Colony Capital, Inc.dex232.htm
EX-23.3 - CONSENT OF KPMG LLP - Colony Capital, Inc.dex233.htm
EX-99.3 - FINANCIAL STATEMENTS FOR FIRST REPUBLIC BANK - Colony Capital, Inc.dex993.htm
EX-99.2 - FINANCIAL STATEMENTS FOR FIRST REPUBLIC BANK - Colony Capital, Inc.dex992.htm

Exhibit 99.4

COLONY FINANCIAL, INC.

Pro forma consolidated balance sheet of Colony Financial, Inc. as of September 30, 2010 and pro forma consolidated statements of operations for the nine months ended September 30, 2010 and for the period from June 23, 2009

(Date of Inception) to December 31, 2009 (unaudited)

COLONY FINANCIAL, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

(In thousands, except share and per share data)

(Unaudited)

 

     As Reported      Pro Forma  
     September 30,
2010		      Disposition
Adjustments		     Adjusted
September 30,
2010		  

ASSETS

        

Investments in unconsolidated joint ventures

    $ 244,254       $ (1,728 )(a)    $ 242,526   

Cash and cash equivalents

      33,343         2,754 (a)      36,097   

Loans receivable, net

      14,719           14,719   

Other assets

      3,393           3,393   
                         

Total assets

    $ 295,709       $ 1,026      $ 296,735   
                         

LIABILITIES AND EQUITY

        

Liabilities:

        

Accrued and other liabilities

    $ 1,860       $        $ 1,860   

Due to affiliate

      1,439           1,439   

Dividends payable

      3,658           3,658   

Deferred underwriting discounts and commissions payable to underwriters

      5,750           5,750   

Deferred underwriting discounts and commissions reimbursable to Manager

      5,750           5,750   
                         

Total liabilities

      18,457         —          18,457   
                         
       

Commitments and contingencies

        

Equity:

        

Stockholders’ equity:

        

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding

      —             —     

Common stock, $0.01 par value, 450,000,000 shares authorized, 14,631,000 shares issued and outstanding

      146           146   

Additional paid-in capital

      275,291           275,291   

Retained earnings

      350         1,026 (a)      1,376   

Accumulated other comprehensive income

      1,292           1,292   
                         

Total stockholders’ equity

      277,079         1,026        278,105   

Noncontrolling interest

      173           173   
                         

Total equity

      277,252         1,026        278,278   
                         

Total liabilities and equity

    $ 295,709       $ 1,026      $ 296,735   
                         

See notes to unaudited pro forma consolidated financial statements.

COLONY FINANCIAL, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

     Nine Months Ended September 30, 2010  
           Pro Forma  
     As Reported     Acquisition
Adjustments		     Disposition
Adjustments		     Adjusted  

Income

         

Equity in income of unconsolidated joint ventures

    $ 16,209        1,661 (b)      (181 )(d)(e)    $ 17,689   

Interest income

      1,294            1,294   
                                

Total income

      17,503        1,661        (181 )      18,983   
                                

Expenses

         

Base management fees

      2,437        210 (c)        2,647   

Investment expenses

      344            344   

Interest expense

      50            50   

Administrative expenses

      2,666            2,666   

Administrative expenses reimbursed to affiliate

      839            839   
                                

Total expenses

      6,336        210        —          6,546   
                                

Foreign exchange loss, net of gain on foreign currency hedge of $18

      (52 )          (52 ) 
                                

Income before income taxes

      11,115        1,451        (181 )      12,385   

Income tax provision

      (256 )          (256 ) 
                                

Net income

      10,859        1,451        (181 )      12,129   

Net income attributable to noncontrolling interest

      14          —          14   
                                

Net income attributable to common stockholders

    $ 10,845        1,451        (181 )    $ 12,115   
                                

Net income per share:

         

Basic

    $ 0.74          $ 0.83   
                    

Diluted

    $ 0.73          $ 0.81   
                    

Weighted average number of common shares outstanding:

         

Basic

      14,625,000            14,625,000   
                    

Diluted

      14,912,500            14,912,500   
                    

See notes to unaudited pro forma consolidated financial statements.

COLONY FINANCIAL, INC.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

     Period from June 23, 2009 (Date of Inception) to December  31, 2009  
           Pro Forma  
     As Reported     Acquisition
Adjustments		     Disposition
Adjustments		     Adjusted  

Income

         

Equity in income of unconsolidated joint ventures

    $ 663        2,393 (f)      (172 )(h)    $ 2,884   

Interest income

      428            428   
                                

Total income

      1,091        2,393        (172 )      3,312   
                                

Expenses

         

Base management fees

      196        198 (g)        394   

Investment expenses

      175            175   

Administrative expenses

      816            816   

Administrative expenses reimbursed to affiliate

      302            302   
                                

Total expenses

      1,489        198        —          1,687   
                                

Net (loss) income

      (398 )      2,195        (172 )      1,625   

Net income attributable to noncontrolling interest

      2            2   
                                

Net (loss) income attributable to common stockholders

    $ (400 )      2,195        (172 )    $ 1,623   
                                

Net (loss) income per share:

         

Basic

    $ (0.06 )        $ 0.23   
                    

Diluted

    $ (0.06 )        $ 0.23 (i) 
                    

Weighted average number of common shares outstanding:

         

Basic

      6,963,000            6,963,000   
                    

Diluted

      6,963,000            7,099,000 (i) 
                    

See notes to unaudited pro forma consolidated financial statements.

COLONY FINANCIAL, INC.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

1. Pro Forma Adjustments

On June 30, 2010, ColFin FRB Investor, LLC (“FRB Investor”), an unconsolidated joint venture in which Colony Financial, Inc. (the “Company”) holds a 5.91% ownership interest, completed its previously announced acquisition of a 21.8% interest in First Republic Bank from Merrill Lynch Bank & Trust Company, a subsidiary of Bank of America Corporation. On December 14, 2010, First Republic Bank closed the initial public offering of 12,650,000 shares of its common stock (including 1,650,000 shares sold in connection with the exercise of the underwriters’ overallotment option). As part of First Republic Bank’s initial public offering, FRB Investor sold 1,948,477 shares of common stock in First Republic Bank.

The unaudited pro forma consolidated financial statements give effect to the acquisition of an approximate 1.3% indirect interest in First Republic Bank by the Company through its investment in FRB Investor on June 30, 2010 and the subsequent disposition of 7.2% of its investment on December 14, 2010. The Company’s pro forma balance sheet as of September 30, 2010 include adjustments to reflect the disposition as if it had occurred at that date. The statements of operations for the nine months ended September 30, 2010 and the period from June 23, 2009 (date of inception) to December 31, 2009 include adjustments to reflect the acquisition and disposition as if each had occurred at the beginning of each period presented. The following pro forma adjustments are included:

 

  (a) Represents the Company’s share of proceeds, reduction in investment in unconsolidated joint venture and gain on sale of approximately $2.7 million, $1.7 million and $1.0 million, respectively, resulting from the sale of approximately 1.9 million shares of First Republic Bank’s common stock by FRB Investor in connection with the closing of First Republic Bank’s initial public offering on December 14, 2010.

 

  (b) Represents recognition of the Company’s share of First Republic Bank’s net income for the six months ended June 30, 2010.

 

  (c) Represents additional base management fee the Company would have incurred for the six months ended June 30, 2010.

 

  (d) Represents the reduction of the Company’s share of First Republic Bank’s net income for the nine months ended September 30, 2010 resulting from the sale.

 

  (e) Does not include the non-recurring gain on sale of $1.0 million from disposition of interest in First Republic Bank.

 

  (f) Represents the Company’s share of First Republic Bank’s net income for the period from June 23, 2009 (date of inception) to December 31, 2009.

 

  (g) Represents additional base management fee the Company would have incurred for the period from June 23, 2009 (date of inception) to December 31, 2009.

 

  (h) Represents the reduction of the Company’s share of First Republic Bank’s net income for the period from June 23, 2009 (date of inception) to December 31, 2009 resulting from the sale.

 

  (i) Reflects the dilutive effect of common share equivalents outstanding related to common stock issuable to the Company’s Manager for reimbursement of underwriting discounts and commissions. Such shares were excluded in the historical diluted weighted average shares as the effect of their inclusion would have been antidilutive due to the reported net loss for the period from June 23, 2009 (date of inception) to December 31, 2009.

Colony Capital, Inc. Reports