Attached files
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8-K - 8-K - DCT Industrial Trust Inc. | d566916d8k.htm |
EX-99.1 - EX-99.1 - DCT Industrial Trust Inc. | d566916dex991.htm |
Exhibit 99.2
Table of Contents | ||||
Consolidated Statements of Operations |
3 | |||
Consolidated Balance Sheets |
4 | |||
Funds From Operations |
5 | |||
Selected Financial Data |
6 | |||
Same-Store Portfolio Analysis |
7 | |||
Consolidated Leasing Activity |
8 | |||
Consolidated Lease Expirations |
9 | |||
Components of Net Asset Value |
10 | |||
Property Overview |
11-12 | |||
Development Overview |
13 | |||
Redevelopment Overview |
14 | |||
Value-Add Acquisitions Overview |
15 | |||
Acquisition and Disposition Summary |
16 | |||
Indebtedness |
17 | |||
Capitalization, Dividend Yield and Fixed Charge Coverage Ratio |
18 | |||
Debt Covenants and Credit Ratings |
19 | |||
Investment in Unconsolidated Joint Ventures Summary |
20 | |||
Definitions |
21-25 |
Forward-Looking Statements
We make statements in this report that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as anticipates, believes, estimates, expects, intends, may, plans, projects, seeks, should, will, and variations of such words or similar expressions and includes statements regarding our anticipated yields. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation:
| national, international, regional and local economic conditions; |
| the general level of interest rates and the availability of capital; |
| the competitive environment in which we operate; |
| real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets; |
| decreased rental rates or increasing vacancy rates; |
| defaults on or non-renewal of leases by tenants; |
| acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; |
| the timing of acquisitions, dispositions and development; |
| natural disasters such as fires, floods, tornadoes, hurricanes and earthquakes; |
| energy costs; |
| the terms of governmental regulations that affect us and interpretations of those regulations, including the costs of compliance with those regulations, changes in real estate and zoning laws and increases in real property tax rates; |
| financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal, interest and other commitments; |
| lack of or insufficient amounts of insurance; |
| litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; |
| the consequences of future terrorist attacks or civil unrest; |
| environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us; and |
| other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. |
In addition, our current and continuing qualification as a real estate investment trust, or REIT, involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.
First Quarter 2018
Supplemental Reporting Package |
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Page 2 |
Consolidated Statements of Operations | ||||
(unaudited, amounts in thousands, except per share data) | ||||
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
REVENUES: |
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Rental revenues |
$ | 109,423 | $ | 105,424 | ||||
Institutional capital management and other fees |
384 | 472 | ||||||
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Total revenues |
109,807 | 105,896 | ||||||
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OPERATING EXPENSES: |
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Rental expenses |
10,239 | 9,462 | ||||||
Real estate taxes |
16,724 | 16,766 | ||||||
Real estate related depreciation and amortization |
41,232 | 41,605 | ||||||
General and administrative |
7,464 | 7,192 | ||||||
Casualty loss (gain) |
5 | (270 | ) | |||||
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Total operating expenses |
75,664 | 74,755 | ||||||
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Operating income |
34,143 | 31,141 | ||||||
OTHER INCOME (EXPENSE): |
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Equity in earnings of unconsolidated joint ventures, net |
1,077 | 1,516 | ||||||
Gain on dispositions of real estate interests |
32,190 | 26 | ||||||
Interest expense |
(16,050 | ) | (16,755 | ) | ||||
Interest and other income (expense) |
34 | (5 | ) | |||||
Impairment loss on land |
(371 | ) | | |||||
Income tax expense and other taxes |
(81 | ) | (134 | ) | ||||
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Consolidated net income of DCT Industrial Trust Inc. |
50,942 | 15,789 | ||||||
Net income attributable to noncontrolling interests |
(2,119 | ) | (830 | ) | ||||
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Net income attributable to common stockholders |
48,823 | 14,959 | ||||||
Distributed and undistributed earnings allocated to participating securities |
(271 | ) | (161 | ) | ||||
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Adjusted net income attributable to common stockholders |
$ | 48,552 | $ | 14,798 | ||||
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NET EARNINGS PER COMMON SHARE: |
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Basic |
$ | 0.52 | $ | 0.16 | ||||
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Diluted |
$ | 0.52 | $ | 0.16 | ||||
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
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Basic |
93,812 | 91,751 | ||||||
Diluted |
93,837 | 91,884 |
First Quarter 2018
Supplemental Reporting Package |
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Page 3 |
Consolidated Balance Sheets | ||||
(unaudited, amounts in thousands) | ||||
March 31, 2018 | December 31, 2017 | |||||||
ASSETS: |
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Operating portfolio |
$ | 4,261,599 | $ | 4,249,242 | ||||
Properties under development |
320,062 | 280,492 | ||||||
Properties in pre-development |
60,412 | 51,883 | ||||||
Properties under redevelopment |
9,838 | 9,481 | ||||||
Value-add acquisitions |
77,246 | 68,673 | ||||||
Land held |
3,656 | 4,026 | ||||||
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Total investment in properties |
4,732,813 | 4,663,797 | ||||||
Less accumulated depreciation and amortization |
(947,731 | ) | (919,186 | ) | ||||
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Net investment in properties |
3,785,082 | 3,744,611 | ||||||
Investments in and advances to unconsolidated joint ventures |
73,691 | 72,231 | ||||||
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Net investment in real estate |
3,858,773 | 3,816,842 | ||||||
Cash and cash equivalents |
12,371 | 10,522 | ||||||
Restricted cash |
68,613 | 14,768 | ||||||
Straight-line rent and other receivables, net |
81,980 | 80,119 | ||||||
Other assets, net |
30,958 | 25,740 | ||||||
Assets held for sale |
3,146 | 62,681 | ||||||
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Total assets |
$ | 4,055,841 | $ | 4,010,672 | ||||
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LIABILITIES AND EQUITY: |
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Accounts payable and accrued expenses |
$ | 95,020 | $ | 115,150 | ||||
Distributions payable |
35,182 | 35,070 | ||||||
Tenant prepaids and security deposits |
37,174 | 34,946 | ||||||
Other liabilities |
36,511 | 34,172 | ||||||
Intangible lease liabilities, net |
17,915 | 18,482 | ||||||
Line of credit |
264,000 | 234,000 | ||||||
Senior unsecured notes |
1,328,576 | 1,328,225 | ||||||
Mortgage notes |
158,350 | 160,129 | ||||||
Liabilities related to assets held for sale |
91 | 1,035 | ||||||
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Total liabilities |
1,972,819 | 1,961,209 | ||||||
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Total stockholders equity |
1,987,459 | 1,951,561 | ||||||
Noncontrolling interests |
95,563 | 97,902 | ||||||
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Total liabilities and equity |
$ | 4,055,841 | $ | 4,010,672 | ||||
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First Quarter 2018
Supplemental Reporting Package |
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Page 4 |
Funds From Operations (FFO) | ||||
(unaudited, amounts in thousands, except per share and unit data) | ||||
For the Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Reconciliation of net income attributable to common stockholders to FFO: |
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Net income attributable to common stockholders |
$ | 48,823 | $ | 14,959 | ||||
Adjustments: |
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Real estate related depreciation and amortization |
41,232 | 41,605 | ||||||
Equity in earnings of unconsolidated joint ventures, net |
(1,077) | (1,516) | ||||||
Equity in FFO of unconsolidated joint ventures(1) |
2,751 | 3,238 | ||||||
Gain on dispositions of real estate interests |
(32,190) | (26) | ||||||
Loss on dispositions of non-depreciable real estate |
(3) | | ||||||
Noncontrolling interests in the above adjustments |
(543) | (1,835) | ||||||
FFO attributable to unitholders |
2,091 | 2,254 | ||||||
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FFO attributable to common stockholders and unitholders basic and diluted(2) |
61,084 | 58,679 | ||||||
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Adjustments: |
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Impairment loss on land |
371 | | ||||||
Acquisition costs |
| 13 | ||||||
Hedge ineffectiveness (non-cash)(3) |
| 30 | ||||||
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FFO, as adjusted, attributable to common stockholders and unitholders basic and diluted |
$ | 61,455 | $ | 58,722 | ||||
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FFO per common share and unit basic |
$ | 0.63 | $ | 0.61 | ||||
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FFO per common share and unit diluted |
$ | 0.63 | $ | 0.61 | ||||
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FFO, as adjusted, per common share and unit basic |
$ | 0.63 | $ | 0.61 | ||||
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FFO, as adjusted, per common share and unit diluted |
$ | 0.63 | $ | 0.61 | ||||
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FFO weighted average common shares and units outstanding: |
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Common shares for net earnings per share |
93,812 | 91,751 | ||||||
Participating securities |
506 | 466 | ||||||
Units |
3,323 | 3,665 | ||||||
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FFO weighted average common shares, participating securities and units outstanding basic |
97,641 | 95,882 | ||||||
Dilutive common stock equivalents |
25 | 133 | ||||||
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FFO weighted average common shares, participating securities and units outstanding diluted |
97,666 | 96,015 | ||||||
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Reconciliation of net operating income (NOI) to FFO: |
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NOI(4)(5) |
$ | 82,460 | $ | 79,196 | ||||
Adjustments: |
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Equity in FFO of unconsolidated joint ventures(1) |
2,751 | 3,238 | ||||||
Institutional capital management and other fees |
384 | 472 | ||||||
Loss on dispositions of non-depreciable real estate |
(3) | | ||||||
Casualty loss (gain) |
(5) | 270 | ||||||
General and administrative expense |
(7,464) | (7,192) | ||||||
Impairment loss on land |
(371) | | ||||||
Interest expense |
(20,203) | (19,440) | ||||||
Capitalized interest expense |
4,153 | 2,685 | ||||||
Interest and other income (expense) |
34 | (5) | ||||||
Income tax expense and other taxes |
(81) | (134) | ||||||
FFO attributable to noncontrolling interests |
(571) | (411) | ||||||
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FFO attributable to common stockholders and unitholders basic and diluted(2) |
61,084 | 58,679 | ||||||
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Adjustments: |
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Acquisition costs |
| 13 | ||||||
Impairment loss on land |
371 | | ||||||
Hedge ineffectiveness (non-cash) |
| 30 | ||||||
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FFO, as adjusted, attributable to common stockholders and unitholders basic and diluted |
$ | 61,455 | $ | 58,722 | ||||
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(1) | Equity in FFO of unconsolidated joint ventures is determined as our share of FFO from each unconsolidated joint venture. See Definitions for additional information. |
(2) | FFO as defined by the National Association of Real Estate Investment Trusts (Nareit). |
(3) | Effective as of January 1, 2017, the Company no longer separately records hedge ineffectiveness per the adoption of the Derivatives and Hedging accounting standard update (ASU) 2017-12. |
(4) | See the reconciliation of non-GAAP financial measure to net income attributable to common stockholders in Definitions. |
(5) | Includes FFO from assets held for sale. |
First Quarter 2018
Supplemental Reporting Package |
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Page 5 |
Selected Financial Data | ||||
(unaudited, amounts in thousands) | ||||
For the Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
NOI: |
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Rental revenues |
$ | 109,423 | $ | 105,424 | ||||
Rental expenses and real estate taxes |
(26,963) | (26,228) | ||||||
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NOI(1) |
$ | 82,460 | $ | 79,196 | ||||
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TOTAL CONSOLIDATED PROPERTIES:(2) |
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Square feet as of period end |
66,105 | 66,225 | ||||||
Average occupancy |
94.1% | 94.9% | ||||||
Occupancy as of period end |
94.1% | 95.2% | ||||||
CONSOLIDATED OPERATING PORTFOLIO:(2) |
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Square feet as of period end |
63,316 | 64,003 | ||||||
Average occupancy |
97.7% | 97.2% | ||||||
Occupancy as of period end |
97.7% | 97.5% | ||||||
SUPPLEMENTAL CONSOLIDATED CASH FLOW AND OTHER INFORMATION: |
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Straight-line rent receivable (balance sheet)(2) |
$ | 75,473 | $ | 74,469 | ||||
Straight-line rents increase (decrease) to revenue, net of related bad debt expense |
$ | 1,632 | $ | 3,398 | ||||
Free rent |
$ | 2,205 | $ | 3,531 | ||||
Revenue from lease terminations |
$ | 343 | $ | 501 | ||||
Bad debt expense, excluding expense related to straight-line rent receivable |
$ | (2) | $ | 113 | ||||
Net amortization of (above)/below market rents increase to revenue |
$ | 740 | $ | 732 | ||||
Scheduled principal amortization |
$ | 1,694 | $ | 1,614 | ||||
Capitalized interest |
$ | 4,153 | $ | 2,685 | ||||
Non-cash interest expense |
$ | 1,532 | $ | 1,269 | ||||
Stock-based compensation amortization |
$ | 1,569 | $ | 1,426 | ||||
Capitalized indirect leasing costs(3) |
$ | 780 | $ | N/A | ||||
NOI for properties sold during current quarter |
$ | 254 | N/A | |||||
CONSOLIDATED CAPITAL EXPENDITURES: |
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Development |
$ | 57,733 | $ | 29,704 | ||||
Redevelopment |
415 | 2,909 | ||||||
Due diligence |
1,470 | 474 | ||||||
Casualty expenditures |
336 | 24 | ||||||
Building and land improvements |
2,184 | 892 | ||||||
Tenant improvements and leasing costs(3) |
9,668 | 9,727 | ||||||
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Total capital expenditures |
$ | 71,806 | $ | 43,730 | ||||
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(1) | See reconciliation of non-GAAP financial measure to net income attributable to common stockholders in Definitions. |
(2) | Includes assets held for sale. |
(3) | Capitalized indirect leasing costs are included in Tenant improvements and leasing costs. |
First Quarter 2018
Supplemental Reporting Package |
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Page 6 |
Same-Store Portfolio Analysis | ||||
(unaudited, amounts in thousands, except number of properties) | ||||
For the Three Months Ended March 31, | ||||||||||||
Quarterly Same-Store Portfolio Analysis (Straight-Line Basis)(1) | 2018 | 2017 | Percentage Change |
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Number of properties |
378 | 378 | ||||||||||
Square feet as of period end |
60,076 | 60,076 | ||||||||||
Average occupancy |
97.8% | 97.2% | 0.6% | |||||||||
Occupancy as of period end |
97.8% | 97.4% | 0.4% | |||||||||
Rental revenues |
$ | 101,524 | $ | 99,017 | 2.5% | |||||||
Less: revenue from lease terminations |
(263 | ) | (502 | ) | ||||||||
Add: early termination straight-line rent adjustment |
49 | 17 | ||||||||||
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Rental revenues, excluding revenue from lease terminations |
101,310 | 98,532 | 2.8% | |||||||||
Rental expenses and real estate taxes |
(25,066 | ) | (24,438 | ) | 2.6% | |||||||
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NOI, excluding revenue from lease terminations(2) |
$ | 76,244 | $ | 74,094 | 2.9% | |||||||
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Quarterly Same-Store Portfolio Analysis (Cash Basis) |
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Rental revenues |
$ | 100,186 | $ | 95,303 | 5.1% | |||||||
Less: revenue from lease terminations |
(263 | ) | (502 | ) | ||||||||
Add: early termination straight-line rent adjustment |
49 | 17 | ||||||||||
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Rental revenues, excluding revenue from lease terminations |
99,972 | 94,818 | 5.4% | |||||||||
Rental expenses and real estate taxes |
(25,066 | ) | (24,444 | ) | 2.5% | |||||||
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Cash NOI, excluding revenue from lease terminations(2) |
$ | 74,906 | $ | 70,374 | 6.4% | |||||||
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(1) | Includes all consolidated stabilized acquisitions acquired before January 1, 2017 and all consolidated developments, Redevelopments and Value-Add Acquisitions stabilized prior to January 1, 2017. Once a property is included in the Quarterly Same-Store Portfolio, it remains until it is subsequently disposed or placed into redevelopment. We consider NOI from our Quarterly Same-Store Portfolio to be a useful measure in evaluating our financial performance and to improve comparability between periods by including only properties owned for those comparable periods. |
(2) | See reconciliation of non-GAAP financial measure to net income attributable to common stockholders in Definitions. |
First Quarter 2018
Supplemental Reporting Package |
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Page 7 |
Consolidated Leasing Activity | ||||
(unaudited) | ||||
Leasing Statistics(1)
Number of Leases Signed |
Square Feet Signed |
Cash Basis Rent Growth |
Straight-Line Basis Rent Growth |
Weighted Average Lease Term(2) |
Turnover Costs(3) |
Turnover Costs Per Square Foot(3) |
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FIRST QUARTER 2018 |
(in thousands | ) | (in months) | (in thousands) | ||||||||||||||||||||||||
New |
13 | 658 | 17.4% | 35.9% | 56 | $ | 3,652 | $ | 5.55 | |||||||||||||||||||
Renewal |
25 | 1,475 | 12.8% | 34.6% | 52 | 2,685 | 1.82 | |||||||||||||||||||||
Developments, redevelopments and value-add acquisitions |
8 | 412 | N/A | N/A | 77 | N/A | N/A | |||||||||||||||||||||
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Total/Weighted Average |
46 | 2,545 | 14.2% | 35.0% | 57 | $ | 6,337 | $ | 2.97 | |||||||||||||||||||
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Weighted Average Retention(4) |
81.6% | |||||||||||||||||||||||||||
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FOUR QUARTERS ROLLING |
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New |
74 | 3,087 | 12.1% | 28.9% | 66 | $ | 17,750 | $ | 5.75 | |||||||||||||||||||
Renewal |
103 | 6,558 | 12.3% | 31.8% | 54 | 11,149 | 1.70 | |||||||||||||||||||||
Developments, redevelopments and value-add acquisitions |
25 | 2,262 | N/A | N/A | 74 | N/A | N/A | |||||||||||||||||||||
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Total/Weighted Average |
202 | 11,907 | 12.3% | 30.9% | 61 | $ | 28,899 | $ | 2.99 | |||||||||||||||||||
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Weighted Average Retention(4) |
79.3% | |||||||||||||||||||||||||||
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(1) | Reflects leases executed during the periods presented. Excludes leases with a term shorter than one year. |
(2) | Assumes no exercise of lease renewal options, if any. |
(3) | The estimated turnover costs associated with leases signed on developments, Redevelopments and Value-Add Acquisitions are included in the total projected costs for those investments and are therefore excluded from the leasing statistics. |
(4) | Excludes leases signed on developments, Redevelopments and Value-Add Acquisitions. |
First Quarter 2018
Supplemental Reporting Package |
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Page 8 |
Consolidated Lease Expirations | ||||
(unaudited, amounts in thousands) | ||||
Lease Expirations for Consolidated Portfolio by Market(1)
2018(2) | 2019 | 2020 | ||||||||||||||||||||||
Markets |
Square Feet |
Percentage of Total Square Feet(3) |
Square Feet |
Percentage of Total Square Feet(3) |
Square Feet |
Percentage of Total Square Feet(3) |
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Atlanta |
683 | 8.8% | 1,070 | 13.8% | 1,295 | 16.7% | ||||||||||||||||||
Baltimore/Washington D.C. |
124 | 6.0% | 424 | 20.6% | 109 | 5.3% | ||||||||||||||||||
Chicago |
499 | 6.4% | 938 | 12.1% | 1,027 | 13.2% | ||||||||||||||||||
Cincinnati |
459 | 14.4% | 544 | 17.1% | 476 | 15.0% | ||||||||||||||||||
Dallas |
153 | 2.5% | 906 | 14.6% | 615 | 9.9% | ||||||||||||||||||
Denver |
63 | 6.7% | 409 | 43.6% | 144 | 15.4% | ||||||||||||||||||
Houston |
139 | 3.2% | 359 | 8.2% | 780 | 17.8% | ||||||||||||||||||
Indianapolis |
| 0.0% | 140 | 16.6% | 106 | 12.6% | ||||||||||||||||||
Miami |
144 | 9.5% | 103 | 6.8% | 257 | 16.9% | ||||||||||||||||||
Nashville |
| 0.0% | 550 | 26.7% | | 0.0% | ||||||||||||||||||
New Jersey |
152 | 11.6% | 50 | 3.8% | 95 | 7.2% | ||||||||||||||||||
Northern California |
232 | 5.5% | 1,857 | 43.8% | 823 | 19.4% | ||||||||||||||||||
Orlando |
141 | 7.7% | 353 | 19.3% | 286 | 15.6% | ||||||||||||||||||
Pennsylvania |
150 | 5.2% | 774 | 26.7% | 779 | 26.9% | ||||||||||||||||||
Phoenix |
282 | 14.2% | 211 | 10.6% | 220 | 11.1% | ||||||||||||||||||
Seattle |
37 | 0.9% | 226 | 5.6% | 873 | 21.6% | ||||||||||||||||||
Southern California |
467 | 5.1% | 850 | 9.2% | 758 | 8.2% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total |
3,725 | 6.0% | 9,764 | 15.7% | 8,643 | 13.9% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease Expirations for Consolidated Portfolio Summarized(1)
Year |
Square Feet Related to Expiring Leases |
Annualized Base Rent of Expiring Leases(4) |
Percentage of Total Annualized Base Rent |
|||||||||
2018(2) |
3,725 | $ | 18,693 | 5.3% | ||||||||
2019 |
9,764 | 46,249 | 13.1% | |||||||||
2020 |
8,643 | 46,756 | 13.2% | |||||||||
2021 |
11,241 | 64,340 | 18.2% | |||||||||
2022 |
8,851 | 50,443 | 14.2% | |||||||||
Thereafter |
19,968 | 127,698 | 36.0% | |||||||||
|
|
|
|
|
|
|
|
|||||
Total occupied |
62,192 | $ | 354,179 | 100.0% | ||||||||
|
|
|
|
|
|
|
|
|||||
Available or leased but not occupied |
3,913 | |||||||||||
|
|
|
||||||||||
Total consolidated properties |
66,105 | |||||||||||
|
|
|
(1) | Assumes no exercise of lease renewal options, if any. |
(2) | Includes leases with an initial term of less than one year. |
(3) | Percentage is based on consolidated occupied square feet as of March 31, 2018 in each market and in total. |
(4) | Annualized base rent includes contractual rents in effect at the date of the lease expiration. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 9 |
Components of Net Asset Value | ||||
(unaudited, amounts in thousands) |
||||
Cash Net Operating Income (Cash NOI) | For the Three Months Ended March 31, 2018 |
|||
NOI(1) |
$ | 82,460 | ||
Less: |
||||
Revenue from lease terminations |
(343) | |||
Straight-line rents, net of related bad debt expense |
(1,632) | |||
Net amortization of above/(below) market rents |
(740) | |||
|
|
|||
Cash NOI, excluding revenue from lease terminations(1) |
79,745 | |||
Proportionate share of Cash NOI from unconsolidated joint ventures(2) |
2,952 | |||
Proportionate share of Cash NOI relating to noncontrolling interests |
(646) | |||
|
|
|||
Cash NOI attributable to common stockholders(1) |
82,051 | |||
|
|
|||
NOI adjustments to normalize Cash NOI: |
||||
Free rent(3) |
2,121 | |||
Partial quarter adjustment for stabilized properties acquired(4) |
| |||
Partial quarter adjustment for properties disposed(5) |
(191) | |||
Partial quarter adjustment for development properties stabilized(6) |
51 | |||
Partial quarter adjustment for redevelopment properties stabilized(6) |
| |||
Partial quarter adjustment for value-add acquisitions stabilized(6) |
| |||
Development properties not stabilized(7) |
(311) | |||
Redevelopment properties not stabilized(7) |
| |||
Value-add acquisitions not stabilized(7) |
(6) | |||
|
|
|||
NOI adjustments, net |
1,664 | |||
|
|
|||
Proforma Cash NOI(1) |
$ | 83,715 | ||
|
|
|||
Other income: |
||||
|
|
|||
Institutional capital management and other fees |
$ | 384 | ||
|
|
|||
Balance Sheet Items(8) | As of March 31, 2018 | |||
|
|
|||
Other assets: |
||||
Cash, cash equivalents and restricted cash |
$ | 80,984 | ||
Other receivables, net |
6,528 | |||
Other tangible assets, net(9) |
29,175 | |||
DCTs proportionate share of other tangible assets related to unconsolidated joint ventures(10) |
3,901 | |||
DCTs proportionate share of pre-development costs related to unconsolidated joint ventures(10) |
10,215 | |||
Development properties at book value |
320,062 | |||
Properties in pre-development at book value |
60,412 | |||
Redevelopment properties at book value |
9,838 | |||
Value-add acquisitions at book value |
77,246 | |||
Land held at book value |
3,656 | |||
|
|
|||
Other assets |
$ | 602,017 | ||
|
|
|||
Liabilities: |
||||
Line of credit, senior unsecured notes and mortgage notes(11) |
$ | 1,749,968 | ||
DCTs proportionate share of debt related to unconsolidated joint ventures(10) |
51,711 | |||
Accounts payable, accrued expenses and distributions payable |
130,223 | |||
Tenant prepaids and security deposits |
37,245 | |||
Other tangible liabilities |
6,617 | |||
Estimated remaining cost to complete stabilized development, redevelopment and value-add acquisition buildings |
1,457 | |||
|
|
|||
Liabilities |
$ | 1,977,221 | ||
|
|
|||
Other information:(12) |
||||
Common shares outstanding at period end |
94,075 | |||
Operating partnership units outstanding at period end |
3,241 |
(1) | See reconciliation of non-GAAP financial measure to net income attributable to common stockholders in Definitions. |
(2) | Amount is determined as our share of Cash NOI from unconsolidated joint ventures. Although we contributed 100% of the initial cash equity capital required by the SCLA venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50. Our proportional share of profits and losses related to the SCLA and JP Morgan ventures during the quarter were approximately 75.8% and 20.0%, respectively. |
(3) | Excludes approximately $0.1 million of free rent given during the quarter at properties associated with footnotes 4, 5, 6 and 7 below. |
(4) | Reflects three months of expected Cash NOI for stabilized properties acquired during the quarter, less actual Cash NOI recognized during the quarter related to these properties. |
(5) | Reflects actual Cash NOI recognized during the quarter for properties disposed of during the quarter. |
(6) | Reflects three months of proforma Cash NOI for development, Redevelopment and Value-Add Acquisitions properties stabilized during the quarter, less actual Cash NOI recognized during the quarter related to these properties. |
(7) | Reflects actual Cash NOI recognized during the quarter for development, Redevelopment and Value-Add Acquisitions not stabilized as of the end of the quarter. |
(8) | Includes assets held for sale. |
(9) | Excludes goodwill of approximately $0.9 million and deferred loan costs, net of amortization of approximately $0.9 million. |
(10) | Excludes $1.2 million of premiums, $6.5 million of noncontrolling interests share of consolidated debt and $6.7 million of deferred loan costs, net of amortization. |
(11) | Amount is determined as our share of debt related to unconsolidated joint ventures. See Definitions for additional information. |
(12) | Excludes 0.5 million of participating securities. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 10 |
Property Overview | ||||
(unaudited) |
||||
As of March 31, 2018
Markets |
Number of Buildings |
Square Feet | Percentage of Total Square Feet |
Occupancy Percentage(1) |
Annualized Base Rent (2) (3) |
Annualized Base Rent per Occupied Square Foot |
Percentage of Total Annualized Base Rent |
|||||||||||||||||||||
CONSOLIDATED OPERATING PORTFOLIO:(4) |
(in thousands | ) | (in thousands | ) | ||||||||||||||||||||||||
Atlanta |
35 | 7,883 | 11.9% | 98.2% | $ | 29,162 | $ | 3.77 | 9.2% | |||||||||||||||||||
Baltimore/Washington D.C. |
18 | 2,164 | 3.3% | 95.2% | 14,487 | 7.03 | 4.6% | |||||||||||||||||||||
Chicago |
38 | 8,335 | 12.6% | 93.2% | 36,581 | 4.71 | 11.5% | |||||||||||||||||||||
Cincinnati |
29 | 3,177 | 4.8% | 100.0% | 12,035 | 3.79 | 3.8% | |||||||||||||||||||||
Dallas |
40 | 5,965 | 9.0% | 100.0% | 21,216 | 3.56 | 6.7% | |||||||||||||||||||||
Denver |
7 | 969 | 1.5% | 92.1% | 4,695 | 5.26 | 1.5% | |||||||||||||||||||||
Houston |
37 | 4,538 | 6.8% | 96.4% | 26,921 | 6.15 | 8.5% | |||||||||||||||||||||
Indianapolis |
2 | 844 | 1.3% | 100.0% | 3,505 | 4.15 | 1.1% | |||||||||||||||||||||
Miami(5) |
12 | 1,578 | 2.4% | 96.5% | 12,426 | 8.16 | 3.9% | |||||||||||||||||||||
Nashville |
4 | 2,064 | 3.1% | 100.0% | 7,182 | 3.48 | 2.3% | |||||||||||||||||||||
New Jersey |
8 | 1,313 | 2.0% | 100.0% | 8,190 | 6.24 | 2.6% | |||||||||||||||||||||
Northern California |
27 | 4,301 | 6.5% | 97.7% | 27,747 | 6.60 | 8.7% | |||||||||||||||||||||
Orlando |
21 | 1,864 | 2.8% | 98.3% | 8,704 | 4.75 | 2.7% | |||||||||||||||||||||
Pennsylvania |
13 | 3,038 | 4.6% | 95.4% | 14,522 | 5.01 | 4.6% | |||||||||||||||||||||
Phoenix |
21 | 1,997 | 2.9% | 99.3% | 9,127 | 4.60 | 2.9% | |||||||||||||||||||||
Seattle |
31 | 4,089 | 6.1% | 98.7% | 24,985 | 6.19 | 7.8% | |||||||||||||||||||||
Southern California(5) |
50 | 9,197 | 14.0% | 99.9% | 55,161 | 6.00 | 17.4% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/weighted average operating portfolio |
393 | 63,316 | 95.6% | 97.7% | 316,646 | 5.12 | 99.8% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
DEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Chicago |
2 | 307 | 0.5% | 0.0% | | | 0.0% | |||||||||||||||||||||
Dallas |
2 | 382 | 0.6% | 65.7% | 428 | 1.71 | 0.1% | |||||||||||||||||||||
Denver |
1 | 168 | 0.3% | 0.0% | | | 0.0% | |||||||||||||||||||||
Northern California |
1 | 796 | 1.2% | 0.0% | | | 0.0% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/weighted average development properties |
6 | 1,653 | 2.6% | 15.2% | 428 | 1.71 | 0.1% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
REDEVELOPMENT PROPERTIES: |
||||||||||||||||||||||||||||
Orlando |
1 | 121 | 0.2% | 0.0% | | | 0.0% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/weighted average redevelopment properties |
1 | 121 | 0.2% | 0.0% | | | 0.0% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
VALUE-ADD ACQUISITIONS: |
||||||||||||||||||||||||||||
Chicago |
1 | 788 | 1.2% | 0.0% | | | 0.0% | |||||||||||||||||||||
Denver |
2 | 190 | 0.3% | 23.3% | 311 | 7.03 | 0.1% | |||||||||||||||||||||
Northern California(6) |
1 | 37 | 0.1% | 100.0% | | | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/weighted average value-add acquisitions |
4 | 1,015 | 1.6% | 8.1% | 311 | 3.78 | 0.1% | |||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
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|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total/weighted average consolidated properties |
404 | 66,105 | 100.0% | 94.1% | $ | 317,385 | $ | 5.10 | 100.0% | |||||||||||||||||||
|
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|
|
|
|
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|
|
|
|
|
|
|
|
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 11 |
Property Overview | ||||
(continued) |
||||
See footnotes on next page.
As of March 31, 2018
Markets |
Number of Buildings |
Percentage Owned(7) |
Square Feet |
Percentage of Total Square Feet |
Occupancy Percentage(1) |
Annualized Base Rent(2) |
Annualized Base Rent per Occupied Square Foot |
Percentage of Total Annualized Base Rent |
||||||||||||||||||||||||
UNCONSOLIDATED JOINT VENTURES:(8) |
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||
OPERATING PORTFOLIO IN UNCONSOLIDATED JOINT VENTURE: |
||||||||||||||||||||||||||||||||
Southern California Logistics Airport(9) |
8 | 50.0% | 2,975 | 39.2% | 99.9% | $ | 11,703 | $ | 3.94 | 37.7% | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total/weighted average unconsolidated operating portfolio |
8 | 50.0% | 2,975 | 39.2% | 99.9% | 11,703 | 3.94 | 37.7% | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|||||||||||||||||
OPERATING PORTFOLIO IN CO-INVESTMENT VENTURE: |
||||||||||||||||||||||||||||||||
Chicago |
2 | 20.0% | 1,033 | 13.6% | 100.0% | 4,380 | 4.24 | 14.1% | ||||||||||||||||||||||||
Cincinnati |
1 | 20.0% | 543 | 7.2% | 100.0% | 2,191 | 4.03 | 7.1% | ||||||||||||||||||||||||
Dallas |
1 | 20.0% | 540 | 7.1% | 100.0% | 1,839 | 3.40 | 5.9% | ||||||||||||||||||||||||
Denver |
5 | 20.0% | 773 | 10.2% | 100.0% | 4,415 | 5.71 | 14.2% | ||||||||||||||||||||||||
Nashville |
2 | 20.0% | 1,020 | 13.5% | 100.0% | 3,131 | 3.07 | 10.1% | ||||||||||||||||||||||||
Orlando |
2 | 20.0% | 696 | 9.2% | 91.4% | 3,364 | 5.29 | 10.9% | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total/weighted average co-investment operating properties |
13 | 20.0% | 4,605 | 60.8% | 98.7% | 19,320 | 4.25 | 62.3% | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total/weighted average unconsolidated portfolio |
21 | 31.8% | 7,580 | 100.0% | 99.2% | $ | 31,023 | $ | 4.13 | 100.0% | ||||||||||||||||||||||
|
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|
|
(1) | Based on leases commenced as of March 31, 2018. |
(2) | Annualized base rent is calculated as monthly contractual base rent (cash basis) per the terms of the lease, as of March 31, 2018, multiplied by 12. |
(3) | Excludes total annualized base rent associated with tenants currently in free rent periods of $7.0 million, which excludes free rent related to developments, Redevelopments and Value-Add Acquisitions not stabilized during the three months ended March 31, 2018, based on the first month of cash base rent. |
(4) | Includes assets held for sale. |
(5) | As of March 31, 2018, our ownership interest in the Miami and Southern California properties was 99.7% and 95.4%, respectively, based on equity ownership weighted by square feet. |
(6) | Building was acquired via a sale-leaseback transaction with a short lease that expires on August 31, 2018. |
(7) | Percentage owned is based on equity ownership weighted by square feet. |
(8) | See Definitions for additional information. |
(9) | Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 12 |
Development Overview | ||||
(unaudited, amounts in thousands, except acres and number of buildings) | ||||
As of March 31, 2018
Cost Incurred | ||||||||||||||||||||||||||||||||||||||
Project |
Market |
Acres | Number of Buildings |
Square Feet |
Percentage Owned(1) |
Q1-2018 | Cumulative Costs at 3/31/2018 |
Projected Investment |
Completion Date(2) |
Percentage Leased(3) |
||||||||||||||||||||||||||||
Development Activities: |
||||||||||||||||||||||||||||||||||||||
Stabilized in Q1 2018 |
||||||||||||||||||||||||||||||||||||||
DCT Commerce Center Building C |
Miami | 8 | 1 | 136 | 100% | $ | 253 | $ | 16,209 | $ | 16,496 | Q2-2017 | 100% | |||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||
Projected Stabilized Yield(4) |
6.4% | |||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||
Development Projects in Lease-Up |
||||||||||||||||||||||||||||||||||||||
DCT Stockyards Industrial Center |
Chicago | 10 | 1 | 167 | 100% | $ | 342 | $ | 14,266 | $ | 17,071 | Q4-2017 | 38% | |||||||||||||||||||||||||
DCT Greenwood |
Chicago | 8 | 1 | 140 | 100% | 304 | 10,073 | 11,671 | Q4-2017 | 0% | ||||||||||||||||||||||||||||
DCT DFW Trade Center |
Dallas | 10 | 1 | 112 | 100% | 1,040 | 9,328 | 9,790 | Q3-2017 | 48% | ||||||||||||||||||||||||||||
DCT Miller Road |
Dallas | 17 | 1 | 270 | 100% | 773 | 16,339 | 16,368 | Q3-2017 | 100% | ||||||||||||||||||||||||||||
DCT Summit Distribution Center |
Denver | 12 | 1 | 168 | 100% | 270 | 12,053 | 13,856 | Q4-2017 | 0% | ||||||||||||||||||||||||||||
DCT Arbor Avenue |
Northern California | 40 | 1 | 796 | 100% | 1,314 | 44,720 | 54,085 | Q1-2018 | 0% | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total | 97 | 6 | 1,653 | 100% | $ | 4,043 | $ | 106,779 | $ | 122,841 | 23% | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Development Projects Under Construction |
||||||||||||||||||||||||||||||||||||||
DCT River West Distribution Center Phase II |
Atlanta | 60 | 1 | 926 | 100% | $ | 2,916 | $ | 7,784 | $ | 46,688 | Q4-2018 | 0% | |||||||||||||||||||||||||
DCT Terrapin Commerce Center Building I |
Baltimore/Wash. D.C. | 13 | 1 | 126 | 100% | 1,644 | 10,533 | 14,762 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
DCT Terrapin Commerce Center Building II |
Baltimore/Wash. D.C. | 10 | 1 | 94 | 100% | 1,538 | 7,596 | 10,900 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
2560 White Oak Expansion |
Chicago | 4 | | 54 | 100% | 1,055 | 2,999 | 5,014 | Q3-2018 | 100% | ||||||||||||||||||||||||||||
DCT Freeport West Building II |
Dallas | 7 | 1 | 111 | 100% | 2,024 | 4,122 | 10,496 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
DCT Freeport West Building III |
Dallas | 6 | 1 | 83 | 100% | 1,523 | 3,029 | 7,962 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
DCT Rail Center 225, B |
Houston | 13 | 1 | 222 | 100% | 3,638 | 10,132 | 15,650 | Q2-2018 | 100% | ||||||||||||||||||||||||||||
DCT Petroport Industrial Park Building I |
Houston | 12 | 1 | 89 | 100% | 2,304 | 5,512 | 6,014 | Q2-2018 | 100% | ||||||||||||||||||||||||||||
DCT Petroport Industrial Park Building II |
Houston | 22 | 1 | 163 | 100% | 2,897 | 9,324 | 10,129 | Q2-2018 | 100% | ||||||||||||||||||||||||||||
DCT Commerce Center Building D |
Miami | 8 | 1 | 137 | 100% | 1,316 | 13,843 | 15,998 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
DCT Commerce Center Building E |
Miami | 10 | 1 | 162 | 100% | 1,866 | 20,452 | 20,705 | Q2-2018 | 83% | ||||||||||||||||||||||||||||
Seneca Commerce Center Building I |
Miami | 13 | 1 | 222 | 90% | 3,769 | 15,436 | 22,080 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
Seneca Commerce Center Building IV |
Miami | 4 | 1 | 62 | 90% | 1,141 | 4,918 | 8,271 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
DCT Midline Commerce Center |
New Jersey | 34 | 1 | 440 | 100% | 6,228 | 24,398 | 35,952 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
DCT Williams Corporate Center |
Northern California | 4 | 1 | 75 | 100% | 2,834 | 11,662 | 14,778 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
DCT Airport Distribution Center Building E |
Orlando | 6 | 1 | 102 | 100% | 1,156 | 2,763 | 7,484 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
DCT Rockline Commerce Center Building I |
Pennsylvania | 8 | 1 | 112 | 100% | 1,558 | 7,922 | 9,310 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
DCT Rockline Commerce Center Building II |
Pennsylvania | 17 | 1 | 224 | 100% | 2,879 | 11,058 | 18,213 | Q2-2018 | 0% | ||||||||||||||||||||||||||||
Blair Logistics Center Building A |
Seattle | 27 | 1 | 545 | 100% | 5,716 | 29,699 | 49,890 | Q3-2018 | 0% | ||||||||||||||||||||||||||||
Hudson Distribution Center |
Seattle | 15 | 1 | 288 | 100% | 1,302 | 10,101 | 30,394 | Q4-2018 | 0% | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total | 293 | 19 | 4,237 | 99% | $ | 49,304 | $ | 213,283 | $ | 360,690 | 16% | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total Development Projects in Lease-Up and Under Construction |
390 | 25 | 5,890 | 98% | $ | 53,347 | $ | 320,062 | $ | 483,531 | 18% | |||||||||||||||||||||||||||
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|||||||||||||||||||||||
Leased Pre-Development |
||||||||||||||||||||||||||||||||||||||
DCT Conewago Commerce Center(5) |
Pennsylvania | 8 | 1 | 100 | 0% | $ | | $ | | $ | 7,650 | TBD | 100% | |||||||||||||||||||||||||
Total Projects Under Development |
398 | 26 | 5,990 | 98% | $ | 53,347 | $ | 320,062 | $ | 491,181 | 19% | |||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
Projected Stabilized Yield Projects Under Development(4) |
6.8% | |||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||
Pre-Development |
||||||||||||||||||||||||||||||||||||||
DCT River West Distribution Center Phase III |
Atlanta | 88 | 100% | $ | 136 | $ | 5,147 | |||||||||||||||||||||||||||||||
Seneca Commerce Center Building II |
Miami | 11 | 90% | 107 | 2,906 | |||||||||||||||||||||||||||||||||
Seneca Commerce Center Building III |
Miami | 11 | 90% | 189 | 2,864 | |||||||||||||||||||||||||||||||||
DCT Airport Distribution Center Building F |
Orlando | 6 | 100% | 24 | 1,525 | |||||||||||||||||||||||||||||||||
DCT Airport Distribution Center Building G |
Orlando | 11 | 100% | 42 | 2,442 | |||||||||||||||||||||||||||||||||
Blair Logistics Center Building B |
Seattle | 20 | 100% | 713 | 14,397 | |||||||||||||||||||||||||||||||||
Blair Logistics Storage Yard |
Seattle | 6 | 100% | 58 | 3,441 | |||||||||||||||||||||||||||||||||
167 Landing Building A |
Seattle | 13 | 100% | 277 | 5,024 | |||||||||||||||||||||||||||||||||
167 Landing Building B |
Seattle | 5 | 100% | 100 | 1,937 | |||||||||||||||||||||||||||||||||
601 Monster Road |
Seattle | 10 | 100% | 346 | 9,551 | |||||||||||||||||||||||||||||||||
DCT Jurupa Logistics Center II |
Southern California | 5 | 100% | 217 | 3,250 | |||||||||||||||||||||||||||||||||
DCT Fontana West Logistics Center |
Southern California | 9 | 100% | 7,928 | 7,928 | |||||||||||||||||||||||||||||||||
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|
|
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|||||||||||||||||||||||||||||||||
Total | 195 | $ | 10,137 | $ | 60,412 | |||||||||||||||||||||||||||||||||
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|
(1) | Percentage owned is based on equity ownership weighted by square feet. |
(2) | The completion date represents the date of building shell-construction completion or estimated date of shell-construction completion. |
(3) | Percentage leased is computed as of the press release date. |
(4) | Yield computed on a GAAP basis including rents on a straight-line basis. |
(5) | 100% pre-lease executed by DCT for build-to-suit property with the development land acquisition expected to close in 2018. The land is under contract but is not included in our Consolidated Balance Sheets as of March 31, 2018. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 13 |
Redevelopment Overview | ||||
(unaudited, amounts in thousands, except acres and number of buildings) | ||||
As of March 31, 2018
Cost Incurred | ||||||||||||||||||||||||||||||||||||
Project |
Market |
Acres | Number of Buildings |
Square Feet |
Percentage Owned(1) |
Q1-2018 | Cumulative Costs at 3/31/2018 |
Projected Investment |
Completion |
Percentage Leased(3) |
||||||||||||||||||||||||||
Redevelopment Projects Under Construction |
|
|||||||||||||||||||||||||||||||||||
6550 Hazeltine National Drive |
Orlando | 7 | 1 | 121 | 100% | $ | 357 | $ | 9,838 | $ | 10,771 | Q2-2018 | 0% | |||||||||||||||||||||||
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|||||||||||||||||||||
Projected Stabilized Yield Projects Under Redevelopment(4) |
6.2% | |||||||||||||||||||||||||||||||||||
|
|
(1) | Percentage owned is based on equity ownership weighted by square feet. |
(2) | The completion date represents the date of building shell-construction completion or estimated date of shell-construction completion. |
(3) | Percentage leased is computed as of the press release date. |
(4) | Yield computed on a GAAP basis including rents on a straight-line basis. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 14 |
Value-Add Acquisitions Overview | ||||
(unaudited, amounts in thousands, except acres and number of buildings) | ||||
As of March 31, 2018
Cost Incurred | ||||||||||||||||||||||||||||||||||||
Project |
Market |
Acres | Number of Buildings |
Square Feet |
Percentage Owned(1) |
Q1-2018 | Cumulative Costs at 3/31/2018 |
Projected Investment |
Acquisition |
Percentage Leased(2) |
||||||||||||||||||||||||||
Value-Add Acquisitions in Lease-Up |
||||||||||||||||||||||||||||||||||||
1101 Airport Blvd |
Chicago | 47 | 1 | 788 | 100% | $ | 834 | $ | 48,400 | $ | 55,213 | 0% | ||||||||||||||||||||||||
10000 E 45th Ave |
Denver | 7 | 1 | 146 | 100% | 92 | 15,881 | 16,821 | 62% | |||||||||||||||||||||||||||
17801 E 40th Ave(3) |
Denver | 4 | 1 | 44 | 100% | 0 | 5,318 | 5,549 | 100% | |||||||||||||||||||||||||||
2501 Davis Street |
Northern California | 2 | 1 | 37 | 100% | 7,647 | 7,647 | 8,452 | 100% | |||||||||||||||||||||||||||
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|||||||||||||||||||||
Total Value-Add Acquisitions in Lease-Up |
60 | 4 | 1,015 | 100% | $ | 8,573 | $ | 77,246 | $ | 86,035 | 17% | |||||||||||||||||||||||||
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|||||||||||||||||||||
Projected Stabilized Yield Value-Add Acquisitions in Lease-Up(4) |
5.8% | |||||||||||||||||||||||||||||||||||
|
|
(1) | Percentage owned is based on equity ownership weighted by square feet. |
(2) | Percentage leased is computed as of the press release date. |
(3) | Percentage leased includes a 44,000 square foot lease known move-out expected to occur within 24 months of the acquisition date. |
(4) | Yield computed on a GAAP basis including rents on a straight-line basis. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 15 |
Acquisition and Disposition Summary | ||||
(unaudited) | ||||
For the Three Months Ended March 31, 2018
Month |
Property Name |
Acquisition Type |
Market |
Size | Occupancy at Acquisition/ Disposition |
Occupancy at March 31, 2018 |
||||||||||||
BUILDING ACQUISITIONS: |
(buildings in sq. ft. | ) | ||||||||||||||||
February |
2501 Davis Street | Value-Add Acquisition(1) | Northern California |
37,000 | 100.0% | 100.0% | ||||||||||||
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|
|||||||||||||
Total YTD Purchase Price $7.1 million |
37,000 | 100.0% | 100.0% | |||||||||||||||
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|
|||||||||||||
LAND ACQUISITIONS: |
||||||||||||||||||
February |
DCT West Fontana Logistics Center | Pre-Development | Southern California |
9.2 | ||||||||||||||
|
|
|||||||||||||||||
Total YTD Land Purchase Price $7.3 million |
9.2 acres | |||||||||||||||||
|
|
|||||||||||||||||
BUILDING DISPOSITIONS: |
||||||||||||||||||
Consolidated Properties |
||||||||||||||||||
January |
7245 S. Harl Avenue | Phoenix | 27,000 | 100.0% | ||||||||||||||
January |
860 Marine Drive | Charlotte(2) | 472,000 | 100.0% | ||||||||||||||
January |
Deltapoint Business Park I | Memphis(2) | 885,000 | 100.0% | ||||||||||||||
January |
Shelby 5 | Memphis(2) | 500,000 | 100.0% | ||||||||||||||
January |
4021 Pike Lane | Northern California | 38,000 | 100.0% | ||||||||||||||
February |
2827 Peterson Place |
Atlanta | 12,000 | % | ||||||||||||||
|
|
|
|
|||||||||||||||
Total YTD Sales Price $100.9 million |
1,934,000 | 99.4% | ||||||||||||||||
|
|
|
|
(1) | See Definitions and Value-Add Acquisitions Overview for additional information. |
(2) | The company exited the Charlotte and Memphis markets upon the disposition of these properties. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 16 |
Indebtedness | ||||
(unaudited, dollar amounts in thousands) | ||||
As of March 31, 2018
Description |
Stated Interest Rate | Effective Interest Rate(1) | Maturity Date |
Balance as of March 31, 2018 |
||||||
SENIOR UNSECURED NOTES: |
||||||||||
2018 Notes, fixed rate |
5.62% | 5.62% | June & August 2018 | $ | 81,500 | |||||
2019 Notes, fixed rate |
4.97% | 4.97% | August 2019 | 46,000 | ||||||
2020 Notes, fixed rate |
5.43% | 5.43% | April 2020 | 50,000 | ||||||
2021 Notes, fixed rate |
6.70% | 6.70% | June & August 2021 | 92,500 | ||||||
2022 Notes, fixed rate |
4.61% | 7.13% | August & September 2022 | 130,000 | ||||||
2023 Notes, fixed rate |
4.60% | 4.75% | August & October 2023 | 360,000 | ||||||
2024 Notes, fixed rate |
3.75% | 3.75% | August 2024 | 80,000 | ||||||
2026 Notes, fixed rate |
3.92% | 3.92% | August 2026 | 90,000 | ||||||
2028 Notes, fixed rate |
4.02% | 4.02% | August 2028 | 80,000 | ||||||
Premiums, net of amortization |
47 | |||||||||
Deferred loan costs, net of amortization |
(4,218) | |||||||||
|
|
|||||||||
1,005,829 | ||||||||||
|
|
|||||||||
MORTGAGE NOTES: |
||||||||||
Fixed rate secured debt |
5.92% | 5.84% | October 2018 August 2025 | 157,437 | ||||||
Premiums, net of amortization |
1,138 | |||||||||
Deferred loan costs, net of amortization |
(225) | |||||||||
|
|
|||||||||
158,350 | ||||||||||
|
|
|||||||||
BANK UNSECURED CREDIT FACILITIES: |
||||||||||
Senior unsecured revolving credit facility(2) |
2.80% | 2.80% | April 2019 | 264,000 | ||||||
2020 Notes, variable rate(3) |
2.90% | 2.90% | April 2020 | 125,000 | ||||||
2022 Notes, fixed rate(4) |
2.81% | 2.81% | December 2022 | 200,000 | ||||||
Deferred loan costs, net of amortization |
(2,253) | |||||||||
|
|
|||||||||
586,747 | ||||||||||
|
|
|||||||||
Total carrying value of consolidated debt |
$ | 1,750,926 | ||||||||
|
|
|||||||||
Fixed rate debt |
4.61% | 4.88% | 78% | |||||||
Variable rate debt |
2.84% | 2.84% | 22% | |||||||
|
|
|
|
|||||||
Weighted average interest rate |
4.22% | 4.43% | 100% | |||||||
|
|
|
|
|||||||
DCT PROPORTIONATE SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT(5) |
| |||||||||
|
|
|||||||||
Stirling Capital Investments (SCLA) |
4.24% | 4.24% | $ | 51,711 | ||||||
|
|
Scheduled Principal Payments of Debt as of March 31, 2018 (excluding premiums and deferred loan costs)
Year |
Senior Unsecured Notes | Mortgage Notes | Bank Unsecured Credit Facilities | Total | ||||||||||||
2018 |
$ | 81,500 | $ | 5,053 | $ | | $ | 86,553 | ||||||||
2019 |
46,000 | 51,344 | 264,000 | 361,344 | ||||||||||||
2020 |
50,000 | 71,933 | 125,000 | 246,933 | ||||||||||||
2021 |
92,500 | 18,436 | | 110,936 | ||||||||||||
2022 |
130,000 | 3,116 | 200,000 | 333,116 | ||||||||||||
2023 |
360,000 | 6,366 | | 366,366 | ||||||||||||
2024 |
80,000 | 739 | | 80,739 | ||||||||||||
2025 |
| 450 | | 450 | ||||||||||||
2026 |
90,000 | | | 90,000 | ||||||||||||
2027 |
| | | | ||||||||||||
Thereafter |
80,000 | | | 80,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 1,010,000 | $ | 157,437 | $ | 589,000 | $ | 1,756,437 | ||||||||
|
|
|
|
|
|
|
|
(1) | Effective interest rate includes direct hedging costs and mark-to-market adjustments. |
(2) | The $400.0 million senior unsecured revolving credit facility matures April 8, 2019 and bears interest at a variable rate equal to LIBOR, plus a margin of between 0.875% to 1.55% per annum or, at our election, an alternate base rate plus a margin of between 0.00% to 0.55% per annum, depending on our public debt credit rating. There was $134.1 million available under the senior unsecured revolving credit facility, net of two letters of credit totaling $1.9 million as of March 31, 2018. |
(3) | The senior unsecured $125.0 million term loan matures April 8, 2020 and bears interest at a variable rate equal to LIBOR, plus a margin, depending on our public debt credit rating, of between 0.90% to 1.75% per annum or, at our election, an alternate base rate plus a margin of between 0.00% to 0.75% per annum. |
(4) | The senior unsecured $200.0 million term loan matures December 10, 2022 and bears interest at a variable rate equal to LIBOR, plus a margin, based on our public debt credit rating. Based on the amendment to our senior unsecured term loan in December 2017, our margin ranges between 0.90% and 1.75% per annum. Based on our current public debt credit rating, this results in a fixed rate of 2.81%. |
(5) | Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50. See Definitions for additional information. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 17 |
Capitalization, Dividend Yield and Fixed Charge Coverage Ratio | ||||
(unaudited, amounts in thousands, except per share data) | ||||
Capitalization at March 31, 2018
Description |
Shares or Units(1) | Share Price | Market Value | |||||||||
Common shares outstanding |
94,075 | $ | 56.34 | $ | 5,300,186 | |||||||
Operating partnership units outstanding(2) |
3,241 | $ | 56.34 | 182,598 | ||||||||
|
|
|||||||||||
Total equity market capitalization |
5,482,784 | |||||||||||
|
|
|||||||||||
Consolidated debt, excluding deferred loan costs of $6.7 million |
1,757,622 | |||||||||||
Less: Noncontrolling interests share of consolidated debt(3) |
6,469 | |||||||||||
Proportionate share of debt related to unconsolidated joint ventures(4) |
51,711 | |||||||||||
|
|
|||||||||||
DCT share of total debt |
1,815,802 | |||||||||||
|
|
|||||||||||
Total market capitalization |
$ | 7,298,586 | ||||||||||
|
|
|||||||||||
DCT share of total debt to total market capitalization |
24.9% | |||||||||||
|
|
Common Stock Dividend Yield
For the Three Months Ended | ||||||||||||||||||||
3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||||
Dividend declared per common share |
$ | 0.36 | $ | 0.36 | $ | 0.31 | $ | 0.31 | $ | 0.31 | ||||||||||
Price per share |
$ | 56.34 | $ | 58.78 | $ | 57.92 | $ | 53.44 | $ | 48.12 | ||||||||||
Dividend yield annualized |
2.6 | % | 2.4 | % | 2.1 | % | 2.3 | % | 2.6 | % |
Fixed Charge Coverage Ratio
For the Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Consolidated net income of DCT Industrial Trust Inc. |
$ | 50,942 | $ | 15,789 | ||||
Interest expense |
16,050 | 16,755 | ||||||
Proportionate share of interest expense from unconsolidated joint ventures(4) |
532 | 271 | ||||||
Real estate related depreciation and amortization |
41,232 | 41,605 | ||||||
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures(4) |
1,216 | 1,223 | ||||||
Income tax expense and other taxes |
81 | 134 | ||||||
Impairment loss on land |
371 | | ||||||
Non-FFO gain on dispositions of real estate interests |
(32,190) | (26) | ||||||
|
|
|
|
|||||
EBITDAre(5) |
78,234 | 75,751 | ||||||
Stock-based compensation |
1,569 | 1,426 | ||||||
|
|
|
|
|||||
Adjusted EBITDA |
$ | 79,803 | $ | 77,177 | ||||
|
|
|
|
|||||
CALCULATION OF FIXED CHARGES: |
||||||||
Interest expense |
$ | 16,050 | $ | 16,755 | ||||
Capitalized interest |
4,153 | 2,685 | ||||||
Amortization of loan costs and debt premium/discount |
(509) | (216) | ||||||
Other non-cash interest expense |
(1,023) | (1,053) | ||||||
Proportionate share of interest expense from unconsolidated joint ventures(4) |
532 | 271 | ||||||
|
|
|
|
|||||
Total fixed charges |
$ | 19,203 | $ | 18,442 | ||||
|
|
|
|
|||||
Fixed charge coverage ratio |
4.2x | 4.2x | ||||||
|
|
|
|
(1) | Excludes 0.4 million of unvested Long-Term Incentive Plan Units, 0.1 million shares of unvested Restricted Stock and 0.1 million Phantom Shares outstanding as of March 31, 2018. |
(2) | Operating partnership unit per share price is based on the per share closing price of DCTs common stock. |
(3) | Amount includes the portion of consolidated debt related to properties in which there are noncontrolling ownership interests. |
(4) | Amounts are determined based on our ownership share of such amounts from the unconsolidated joint ventures. See Definitions for additional information. |
(5) | EBITDAre as defined by the National Association of Real Estate Investment Trusts (Nareit). |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 18 |
Debt Covenants and Credit Ratings | ||||
(unaudited) | ||||
Debt Covenant Summary as of March 31, 2018
Senior Unsecured Notes(1) |
Covenant | Actual Ratio | ||
Leverage ratio |
< 55% | 36.7% | ||
Fixed charge coverage ratio |
> 1.5 x | 3.82 x | ||
Secured debt leverage ratio |
< 45% | 5.2% | ||
Unencumbered assets to unsecured debt |
> 1.67 x | 2.57 x | ||
Bank Unsecured Credit Facilities(1) |
Covenant | Actual Ratio | ||
Leverage ratio |
< 60% | 31.8% | ||
Fixed charge coverage ratio |
> 1.5 x | 3.83 x | ||
Secured debt leverage ratio |
< 35% | 3.6% | ||
Bond Indentures(1) |
Covenant | Actual Ratio | ||
Leverage ratio |
< 60% | 35.6% | ||
Fixed charge coverage ratio |
> 1.5 x | 4.07 x | ||
Secured debt leverage ratio |
< 40% | 3.2% | ||
Unencumbered assets to unsecured debt |
> 1.50 x | 2.73 x |
Credit Ratings
Agency |
Rating | |
Moodys | Baa2 (Stable) | |
Standard & Poors | BBB (Stable) |
(1) | Calculations are compiled in accordance with the note purchase agreement, credit agreement and bond indenture agreement, respectively, based upon definitions contained therein. The Company is not presenting these ratios and the related calculations for any purpose other than informational, and it is not intending for these measures to provide information to investors about the Companys financial condition or results of operations. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 19 |
Investment in Unconsolidated Joint Ventures Summary | ||||
(unaudited, dollar amounts in thousands) | ||||
Statement of Operations and Other Data
For the Three Months Ended March 31, 2018 | ||||||||
JP Morgan | Stirling Capital Investments | |||||||
Total rental revenues |
$ | 6,439 | $ | 4,638 | ||||
Rental expenses and real estate taxes |
(1,587) | (676) | ||||||
Depreciation and amortization |
(2,077) | (1,601) | ||||||
General and administrative expense |
(190) | (585) | ||||||
|
|
|
|
|||||
Operating income |
2,585 | 1,776 | ||||||
Interest expense |
| (1,258) | ||||||
Interest and other expense |
(7) | | ||||||
|
|
|
|
|||||
Net income |
$ | 2,578 | $ | 518 | ||||
|
|
|
|
|||||
Other Data: |
||||||||
Number of properties |
13 | 8 | ||||||
Square feet (in thousands) |
4,605 | 2,975 | ||||||
Occupancy |
98.7% | 99.9% | ||||||
DCT ownership(1) |
20.0% | 50.0%(2) |
Balance Sheet
As of March 31, 2018 | ||||||||
JP Morgan | Stirling Capital Investments | |||||||
Total investment in properties |
$ | 271,508 | $ | 147,929 | ||||
Accumulated depreciation and amortization |
(80,412) | (39,354) | ||||||
|
|
|
|
|||||
Net investment in properties |
191,096 | 108,575 | ||||||
Cash, cash equivalents and restricted cash |
3,053 | 1,751 | ||||||
Other assets |
4,446 | 3,051 | ||||||
|
|
|
|
|||||
Total assets |
198,595 | 113,377 | ||||||
|
|
|
|
|||||
Other liabilities |
5,018 | 1,257 | ||||||
Secure debt maturities 2019 |
| 60,166 (3) | ||||||
Secure debt maturities 2021 |
| 6,604 (4) | ||||||
Secure debt maturities thereafter |
| 42,449 (5) | ||||||
|
|
|
|
|||||
Total secured debt |
| 109,219 | ||||||
|
|
|
|
|||||
Total liabilities |
5,018 | 110,476 | ||||||
Partners or members capital |
193,577 | 2,901 | ||||||
|
|
|
|
|||||
Total liabilities and partners or members capital |
$ | 198,595 | $ | 113,377 | ||||
|
|
|
|
(1) | See Definitions for additional information. |
(2) | Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50. |
(3) | $60.3 million of debt, excluding $0.1 million of deferred loan costs, requires interest only payments through October 2017 and has a variable interest rate of LIBOR plus 2.2%. |
(4) | $6.6 million of debt is payable to DCT, requires principal and interest payments through November 2021 and has a fixed interest rate of 8.5%. |
(5) | $29.7 million of debt, excluding $0.5 million of deferred loan costs, requires principal and interest payments through May 2024 and has a fixed interest rate of 4.6%. $13.4 million of debt, excluding $0.2 million of deferred loan costs, requires principal and interest payments through July 2024 and has a variable interest rate of LIBOR plus 2.5%. |
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 20 |
Definitions | ||||
First Quarter 2018
Supplemental Reporting Package |
![]() |
Page 21 |
Definitions | ||||
(continued) | ||||
Net Operating Income (NOI):
NOI is defined as rental revenues, which includes expense reimbursements, less rental expenses and real estate taxes, and excludes institutional capital management fees, depreciation, amortization, casualty gains, gain on dispositions of real estate interests, impairment, general and administrative expenses, equity in earnings (loss) of unconsolidated joint ventures, interest expense, interest and other income and income tax expense and other taxes. DCT Industrial considers NOI to be an appropriate supplemental performance measure because NOI reflects the operating performance of DCT Industrials properties and excludes certain items that are not considered to be controllable in connection with the management of the properties such as amortization, depreciation, impairment, interest expense, interest and other income, income tax expense and other taxes and general and administrative expenses. We also present NOI excluding lease termination revenue as it is not considered to be indicative of recurring operating performance. However, NOI should not be viewed as an alternative measure of DCT Industrials overall financial performance since it excludes expenses which could materially impact our results of operations. Further, DCT Industrials NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, DCT Industrial believes net income, as defined by GAAP, to be the most appropriate measure to evaluate DCT Industrials overall financial performance.
For the Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
Reconciliation of net income attributable to common stockholders to NOI: (amounts in thousands) |
| |||||||
Net income attributable to common stockholders |
$ | 48,823 | $ | 14,959 | ||||
Net income attributable to noncontrolling interests |
2,119 | 830 | ||||||
Income tax expense and other taxes |
81 | 134 | ||||||
Impairment loss on land |
371 | | ||||||
Interest and other (income) expense |
(34 | ) | 5 | |||||
Interest expense |
16,050 | 16,755 | ||||||
Equity in earnings of unconsolidated joint ventures, net |
(1,077 | ) | (1,516 | ) | ||||
General and administrative expense |
7,464 | 7,192 | ||||||
Real estate related depreciation and amortization |
41,232 | 41,605 | ||||||
Gain on dispositions of real estate interests |
(32,190 | ) | (26 | ) | ||||
Casualty loss (gain) |
5 | (270 | ) | |||||
Institutional capital management and other fees |
(384 | ) | (472 | ) | ||||
|
|
|
|
|
| |||
Total NOI |
$ | 82,460 | $ | 79,196 | ||||
Quarterly Same-Store Portfolio NOI: |
||||||||
Total NOI |
$ | 82,460 | $ | 79,196 | ||||
Less NOI non-same-store properties |
(6,002 | ) | (4,617 | ) | ||||
Less revenue from lease terminations |
(263 | ) | (502 | ) | ||||
Add early termination straight-line rent adjustment |
49 | 17 | ||||||
|
|
|
|
|
| |||
NOI, excluding revenue from lease terminations |
76,244 | 74,094 | ||||||
Less straight-line rents, net of related bad debt expense |
(783 | ) | (2,975 | ) | ||||
Less amortization of above/(below) market rents |
(555 | ) | (745 | ) | ||||
|
|
|
|
|
| |||
Cash NOI, excluding revenue from lease terminations |
$ | 74,906 | $ | 70,374 | ||||
|
|
|
|
|
|
Operating Portfolio:
Includes all consolidated stabilized properties. Developments, Redevelopments and Value-Add Acquisitions are placed into the Operating Portfolio upon stabilization. Stabilized acquisitions are included in the Operating Portfolio upon acquisition. Once a property is included in the Operating Portfolio, it remains until it is subsequently disposed or placed into redevelopment.
First Quarter 2018
Supplemental Reporting Package |
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Page 22 |
Definitions | ||||
(continued) | ||||
Proforma Cash NOI:
DCT Industrial considers Proforma Cash NOI to be a useful measure to assist investors and analysts in estimating the fair value of certain assets of our Company. The assessment of Proforma Cash NOI is subjective in that it involves estimates and assumptions and can be calculated using various methods. DCT Industrials Proforma Cash NOI may not be comparable to that of other real estate companies.
For the Three Months Ended March 31, 2018 | ||||
Reconciliation of net income attributable to common stockholders to Proforma Cash NOI: (amounts in thousands) |
||||
Net income attributable to common stockholders |
$ | 48,823 | ||
Net income attributable to noncontrolling interests |
2,119 | |||
Income tax expense and other taxes |
81 | |||
Impairment loss on land |
371 | |||
Interest and other income |
(34 | ) | ||
Interest expense |
16,050 | |||
Equity in earnings of unconsolidated joint ventures, net |
(1,077 | ) | ||
General and administrative expense |
7,464 | |||
Real estate related depreciation and amortization |
41,232 | |||
Gain on dispositions of real estate interests |
(32,190 | ) | ||
Institutional capital management and other fees |
(384 | ) | ||
|
|
| ||
Total NOI |
82,460 | |||
Less: |
||||
Revenue from lease terminations |
(343 | ) | ||
Straight-line rents, net of related bad debt expense |
(1,632 | ) | ||
Net amortization of below market rents |
(740 | ) | ||
|
|
| ||
Cash NOI, excluding revenue from lease terminations |
79,745 | |||
Proportionate share of Cash NOI from unconsolidated joint ventures(1) |
2,952 | |||
Proportionate share of Cash NOI relating to noncontrolling interests |
(646 | ) | ||
|
|
| ||
Cash NOI attributable to common stockholders |
82,051 | |||
|
|
| ||
NOI adjustments to normalize Cash NOI: |
||||
Free rent |
2,121 | |||
Partial quarter adjustment for properties disposed |
(191 | ) | ||
Partial quarter adjustment for development properties stabilized |
51 | |||
Value-add acquisitions not yet placed into operating portfolio |
(6 | ) | ||
Development properties not yet placed into operating portfolio |
(311 | ) | ||
|
|
| ||
NOI adjustments, net |
1,664 | |||
|
|
| ||
Proforma Cash NOI |
$ | 83,715 | ||
|
|
|
(1) | Amount is determined as our share of Cash NOI from unconsolidated joint ventures. See Unconsolidated Joint Ventures definition for additional information. |
Projected Investment:
An estimate of total expected costs to stabilize properties in accordance with GAAP.
Projected Stabilized Yield:
Calculated as projected stabilized NOI on a straight-line basis divided by total projected investment for Developments, Redevelopments and Value-Add Acquisitions.
Purchase Price:
Contractual price agreed upon by the owner and buyer for the transfer of property.
Redevelopment:
Represents properties out of service while significant physical renovation of the property is underway or while the property is in lease-up subsequent to such renovation. May include previously stabilized properties taken out of service to change the properties use and/or enhance its functionality.
Retention:
Calculated as (retained square feet + relocated square feet) / ((retained square feet + relocated square feet + expired square feet) - (vacancies anticipated at acquisition square feet + bankruptcy and early termination square feet)).
First Quarter 2018
Supplemental Reporting Package |
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Page 23 |
Definitions | ||||
(continued) | ||||
Sales Price:
Contractual price of real estate sold.
Same-Store:
Annual Same-Store Portfolio:
Includes all consolidated stabilized acquisitions acquired before January 1, 2017 and all consolidated developments, Redevelopments and Value-Add Acquisitions stabilized prior to January 1, 2017. Once a property is included in the Annual Same-Store Portfolio, it remains until it is subsequently disposed or placed into redevelopment.
Quarterly Same-Store Portfolio:
Includes all consolidated stabilized acquisitions acquired before January 1, 2017 and all consolidated developments, Redevelopments and Value-Add Acquisitions stabilized prior to January 1, 2017. Once a property is included in the Quarterly Same-Store Portfolio, it remains until it is subsequently disposed or placed into redevelopment.
Same-Store NOI Growth:
Same-Store NOI Growth is calculated by dividing the change in NOI applicable to same-store properties only, period over period, by the preceding periods same-store properties NOI. We consider NOI from our Annual and Quarterly Same-Store Portfolios to be useful measures in evaluating our financial performance and to improve comparability between periods by including only properties owned for those comparable periods.
Scheduled Principal Amortization:
The aggregate amount of scheduled principal payments required to be made during the period, excluding optional prepayments, balloon payments and scheduled principal payments which are not amortized through periodic installments of principal and interest over the term of the debt.
Square Footage Period Changes (in thousands):
Total operating portfolio square feet as of December 31, 2017 |
65,114 | |||
Dispositions |
(1,934 | ) | ||
Value-add acquisitions, developments and redevelopments stabilized and placed into operating portfolio |
136 | |||
|
|
| ||
Total operating portfolio square feet including assets held for sale as of March 31, 2018 |
63,316 | |||
|
|
| ||
Total projects under development square feet as of December 31, 2017 |
5,923 | |||
Construction starts |
103 | |||
Developments stabilized and placed into operating portfolio |
(136 | ) | ||
|
|
| ||
Total projects under development square feet as of March 31, 2018 |
5,890 | |||
|
|
| ||
Total projects under redevelopment square feet as of December 31, 2017 and March 31, 2018 |
121 | |||
Total value-add acquisitions square feet as of December 31, 2017 |
977 | |||
Acquisitions |
37 | |||
Miscellaneous |
1 | |||
|
|
| ||
Total value-add acquisitions square feet as of March 31, 2018 |
1,015 | |||
|
|
|
Stabilized:
Developments and Redevelopments are deemed to be stabilized upon the earlier of achieving 90% occupancy or 12 months after shell-construction completion. Value-Add Acquisitions (defined below) are deemed to be stabilized:
| If the property acquired is less than 75% occupied upon acquisition, the property will stabilize upon the earlier of achieving 90% occupancy or 12 months from the acquisition date; or |
| If the property is acquired with known move-outs, the property will stabilize upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred. |
All other acquisitions are deemed stabilized upon acquisition.
First Quarter 2018
Supplemental Reporting Package |
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Page 24 |
Definitions | ||||
(continued) | ||||
Stock-based Compensation Amortization Expense:
Represents the non-cash amortization of the cost of employee services received in exchange for an award of an equity instrument based on the awards fair value on the grant date and amortized over the vesting period, presented net of amounts capitalized.
Straight-Line Basis Rent Growth:
Straight-Line Basis Rent Growth reflects the percentage change in Net Effective Rent of the lease executed during the period compared to the Net Effective Rent of the prior lease on the same space (holdover payments are excluded). All net effective rents are compared on a net basis. Net Effective Rent under gross or similar type leases are converted to Net Effective Rent based on an estimate of the applicable recoverable expenses.
Turnover Costs:
Turnover Costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid and costs capitalized for leasing transactions. Turnover Costs and Turnover Costs Per Square Foot presented as a part of leasing statistics represent the total Turnover Costs estimated upon execution to be incurred associated with the leases signed during the period and may not ultimately reflect the actual expenditures.
Unconsolidated Joint Ventures:
We present certain measures in this report on a proportionate share basis which represents DCT Industrials share of the measure from our unconsolidated joint ventures. We believe that these measures provide useful information to investors regarding our financial condition and/or results of operations because they include DCT Industrials share of the applicable amount from unconsolidated joint ventures. DCT Industrial has non-controlling interests in a number of unconsolidated joint ventures and we believe that presenting various measures in this manner help investors better understand DCT Industrials financial condition and/or results of operations after taking into account our economic interest in these joint ventures. Our economic interest (as distinct from our legal ownership interest) may fluctuate from time to time and may not wholly align with our legal ownership interests because of provisions in certain joint venture agreements regarding distributions of cash flow, allocations of profits and losses, payments of preferred returns and control over major decisions. Additionally, DCT Industrial does not control our unconsolidated joint ventures and the presentation of certain items, such as assets, liabilities, revenues and expenses, from these unconsolidated joint ventures does not represent our legal claim or obligation for such items.
Value-Add Acquisitions:
Consolidated properties that were acquired and upon acquisition met either of the following criteria:
| Occupancy of less than 75% upon acquisition; or |
| Occupancy of less than 75% expected to occur due to known move-outs within 24 months of the acquisition date. |
Consolidated properties that were acquired vacant or with known move-outs within 24 months of the acquisition date with the intention to have the property out of service for significant physical renovations are classified as Redevelopment properties.
First Quarter 2018
Supplemental Reporting Package |
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Page 25 |