Colony Capital, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - March 5, 2012

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8-K - FORM 8-K - Colony Capital, Inc.d311012d8k.htm

Exhibit 99.1

COLONY FINANCIAL, INC.

PRO FORMA CONSOLIDATED BALANCE SHEET

(In thousands, except share and per share data)

(Unaudited)

 

     September 30, 2011  
            Pro Forma  
     As Reported      Adjustments     Adjusted  

ASSETS

        

Cash

    $ 5,728       $ 10,540  (a)    $ 16,268   

Investments in unconsolidated joint ventures

      413,813         (7,080)  (a)      406,733   

Loans receivable, net

      228,900           228,900   

Beneficial interests in securities, available-for-sale, at fair value

      31,784           31,784   

Other assets

      15,118           15,118   
  

 

 

     

 

 

    

 

 

  

Total assets

    $ 695,343       $ 3,460      $ 698,803   
  

 

 

     

 

 

    

 

 

  

LIABILITIES AND EQUITY

        

Liabilities:

        

Line of credit

    $ 32,000       $        $ 32,000   

Secured financing

      13,889           13,889   

Accrued and other liabilities

      13,626           13,626   

Due to affiliates

      3,496           3,496   

Dividends payable

      10,716           10,716   

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

      85,227         —          85,227   
  

 

 

     

 

 

    

 

 

  

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, 32,471,700 shares issued and outstanding

      325           325   

Additional paid-in capital

      595,543           595,543   

Retained earnings

      5,536         3,460  (a)      8,996   

Accumulated other comprehensive loss

      (1,804)           (1,804)   
  

 

 

     

 

 

    

 

 

  

Total stockholders’ equity

      599,600         3,460        603,060   

Noncontrolling interest

      10,516           10,516   
  

 

 

     

 

 

    

 

 

  

Total equity

      610,116         3,460        613,576   
  

 

 

     

 

 

    

 

 

  

Total liabilities and equity

    $ 695,343       $ 3,460      $ 698,803   
  

 

 

     

 

 

    

 

 

  

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, 2011  
           Pro Forma  
     As Reported     Adjustments     Adjusted  

Income

       

Equity in income of unconsolidated joint ventures

    $ 33,868      $ (743 ) (b)(c)    $ 33,125   

Interest income

      10,877          10,877   

Other operating income from affiliates

      1,543          1,543   
  

 

 

    

 

 

    

 

 

  

Total income

      46,288        (743 )      45,545   
  

 

 

    

 

 

    

 

 

  

Expenses

       

Base management fees

      5,841          5,841   

Incentive fees

      88          88   

Investment expenses

      844          844   

Investment expenses reimbursed to affiliate

      1,020          1,020   

Interest expense

      1,652          1,652   

Administrative expenses

      3,125          3,125   

Administrative expenses reimbursed to affiliate

      1,321          1,321   
  

 

 

    

 

 

    

 

 

  

Total expenses

      13,891        —          13,891   
  

 

 

    

 

 

    

 

 

  

Net unrealized loss on derivatives

      (8 )        (8 ) 

Foreign exchange loss, net of foreign currency hedges

      (143 )        (143 ) 
  

 

 

    

 

 

    

 

 

  

Income before income tax benefit

      32,246        (743 )      31,503   

Income tax provision

      253          253   
  

 

 

    

 

 

    

 

 

  

Net income

      31,993        (743 )      31,250   

Net income attributable to noncontrolling interest

      799          799   
  

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

    $ 31,194      $ (743 )    $ 30,451   
  

 

 

    

 

 

    

 

 

  

Net income per common share:

       

Basic

    $ 1.14        $ 1.11   
  

 

 

      

 

 

  

Diluted

    $ 1.12        $ 1.10   
  

 

 

      

 

 

  

Weighted average number of common shares outstanding:

       

Basic

      27,400,400          27,400,400   
  

 

 

      

 

 

  

Diluted

      27,750,000          27,750,000   
  

 

 

      

 

 

  

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)

 

     Year Ended December 31, 2010  
           Pro Forma (Unaudited)  
     As Reported     Adjustments     Adjusted  

Income

       

Equity in income of unconsolidated joint ventures

    $ 24,227      $ (419 ) (c)(d)    $ 23,808   

Interest income

      3,158          3,158   

Other operating income

      40          40   
  

 

 

    

 

 

    

 

 

  

Total income

      27,425        (419 )      27,006   
  

 

 

    

 

 

    

 

 

  

Expenses

       

Base management fees

      3,542          3,542   

Investment expenses

      442          442   

Interest expense

      555          555   

Administrative expenses

      3,687          3,687   

Administrative expenses reimbursed to affiliate

      1,656          1,656   
  

 

 

    

 

 

    

 

 

  

Total expenses

      9,882        —          9,882   
  

 

 

    

 

 

    

 

 

  

Other income and expenses

       

Realized gain on sale of loan receivable

      603          603   

Foreign exchange loss, net of gain on foreign currency hedge of $43

      (149 )        (149 ) 
  

 

 

    

 

 

    

 

 

  

Income before income taxes

      17,997        (419 )      17,578   

Income tax provision

      243          243   
  

 

 

    

 

 

    

 

 

  

Net income

      17,754        (419 )      17,335   

Net income attributable to noncontrolling interest

      23          23   
  

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

    $ 17,731      $ (419 )    $ 17,312   
  

 

 

    

 

 

    

 

 

  

Net income per common share:

       

Basic

    $ 1.20        $ 1.18   
  

 

 

      

 

 

  

Diluted

    $ 1.18        $ 1.15   
  

 

 

      

 

 

  

Weighted average number of common shares outstanding:

       

Basic

      14,716,200          14,716,200   
  

 

 

      

 

 

  

Diluted

      15,003,700          15,003,700   
  

 

 

      

 

 

  

See notes to unaudited pro forma consolidated financial statements.

COLONY FINANCIAL, INC.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

1. Pro Forma Adjustments

On March 5, 2012, ColFin FRB Investor, LLC (“FRB Investor”), an unconsolidated joint venture in which Colony Financial, Inc. (the “Company”) holds a 5.91% ownership interest, completed the sale of 6,198,500 shares of common stock in First Republic Bank. The shares were sold in connection with First Republic Bank’s secondary public offering. FRB Investor, which owned an approximate 15.2% interest in First Republic Bank prior to the disposition, currently owns an approximate 10.4% interest in First Republic Bank. The Company’s indirect ownership interest in First Republic Bank is approximately 0.6% through its ownership in FRB Investor.

The Company’s unaudited pro forma consolidated financial statements give effect to the disposition of 31.6% of its investment in First Republic Bank. The Company’s pro forma balance sheet as of September 30, 2011 includes adjustments to reflect the disposition as if it had occurred at that date. The statements of operations for the nine months ended September 30, 2011 and the year ended December 31, 2010 include adjustments to reflect the disposition as if it had occurred at the beginning of each period presented. The following pro forma adjustments are included:

 

  (a) Represents the Company’s share of proceeds, reduction in investment in unconsolidated joint venture and gain on sale of approximately $10.5 million, $7.1 million and $3.5 million, respectively, resulting from the sale of 6,198,500 shares of First Republic Bank’s common stock by FRB Investor in connection with the closing of First Republic Bank’s secondary offering on March 5, 2012.

 

  (b) Represents the reduction of the Company’s pro rata share of First Republic Bank’s net income for the nine months ended September 30, 2011 as a result of FRB Investor’s sale of shares in First Republic Bank’s secondary public offering on March 5, 2012.

 

  (c) Does not include the non-recurring gain on sale of approximately $3.5 million resulting from the Company’s disposition of a portion of its indirect interest in First Republic Bank.

 

  (d) Represents the reduction of the Company’s pro rata share of First Republic Bank’s net income for the year ended December 31, 2010 as a result of FRB Investor’s sale of shares in First Republic Bank’s secondary public offering.

Colony Capital, Inc. Reports