Oct. 29, 2009 (PR Newswire) --
DENVER, Oct. 29 /PRNewswire-FirstCall/ -- DCT Industrial Trust® (NYSE: DCT), a leading industrial real estate investment trust, today announced financial results for the three and nine months ended September 30, 2009.
Funds from operations (FFO) attributable to common stockholders and unitholders for the third quarter of 2009 totaled $23.3 million, or $0.10 per diluted share, compared with $30.8 million, or $0.15 per diluted share, reported for the third quarter of 2008. FFO for the nine months ended September 30, 2009 was $82.0 million, or $0.37 per diluted share, compared with $93.4 million, or $0.45 per diluted share, reported for the nine months ended September 30, 2008. Excluding $0.01 per share of severance charges and impairment losses, FFO was $0.11 per diluted share for the third quarter of 2009 and $0.39 per diluted share for the nine months ended September 30, 2009.
Net loss attributable to common stockholders for the third quarter of 2009 was $(0.07) per diluted share, compared with net income attributable to common stockholders of $0.04 per diluted share reported for the third quarter of 2008. Net loss attributable to common stockholders for the nine months ended September 30, 2009 was $(0.08) per diluted share, compared with net income attributable to common stockholders of $0.13 per diluted share for the nine months ended September 30, 2008. The net loss attributable to common stockholders for the third quarter of 2009 and for the nine months ended September 30, 2009 includes $0.04 per share of losses on business combinations.
"While the operating environment remains challenging, leasing activity increased significantly during the third quarter. We are hopeful that the early signs of stabilization will translate into a sustained recovery," commented Phil Hawkins, Chief Executive Officer of DCT Industrial Trust. "We are also beginning to see a slight increase in acquisition activity, which is encouraging. We have pursued, and will continue to pursue, attractive investment opportunities that meet our return and quality criteria in select markets and capitalize on our strong financial position."
Balance Sheet
DCT's balance sheet remains strong, with consolidated net debt to book value of total assets (less cash and before depreciation and amortization) of 36.5% as of September 30, 2009, compared with 38.0% as of December 31, 2008. The Company's fixed charge coverage for the third quarter of 2009 was 2.6 times. During the third quarter, DCT prepaid $52.1 million of January 2010 maturities and received commitments from certain lenders to extend $70.0 million of 2012 maturities until 2019.
Operating Portfolio
As of September 30, 2009, DCT(TM) owned 374 consolidated operating properties, comprising 52.8 million square feet. Net operating income was $42.1 million in the third quarter of 2009, compared with $44.9 million reported for the third quarter of 2008.
DCT's consolidated operating portfolio occupancy was 88.3% as of September 30, 2009, compared with 87.3% as of June 30, 2009. Including an additional 14.6 million square feet of operating properties held in joint ventures, occupancy as of September 30, 2009 was 90.0%, compared with 89.0% as of June 30, 2009.
Third quarter 2009 same store net operating income declined 8.4% on a cash basis and 9.4% on a GAAP basis, excluding revenue from lease terminations, when compared to the same period last year. Occupancy of same store properties averaged 87.8% in the third quarter of 2009, compared with 91.6% in the third quarter of 2008.
Leasing activity increased during the third quarter of 2009 to 2.9 million square feet of leases signed. Tenant retention was strong at a rate of 88.2% for the third quarter of 2009, while rents on signed leases for which there was a prior tenant increased 5.7% on a GAAP basis and declined 5.9% on a cash basis.
Capital Deployment Activity
DCT completed its forward commitment program with Nexxus in Monterrey, Mexico in the third quarter of 2009. The Company took ownership of the final three bulk distribution buildings comprising 354,000 square feet and completed a 36,000 square foot expansion.
During the third quarter, DCT also acquired its partners' interests in two bulk distribution properties in Southern California totaling 872,000 square feet, one 570,000 square foot industrial building in Nashville and 28 acres of land in Indianapolis as part of the dissolution of three development joint ventures.
Dividend
DCT Industrial Trust's Board of Directors has declared a $0.07 per share quarterly cash dividend, payable on January 15, 2010, to stockholders of record as of December 30, 2009.
Guidance
DCT narrowed guidance, excluding severance charges and impairments, for 2009 FFO to $0.49 to $0.51 per diluted share and updated 2009 net loss guidance to $(0.08) to $(0.06) per diluted share. The Company's initial guidance, excluding real estate gains, losses and impairments, for 2010 FFO is $0.36 to $0.44 per diluted share and net loss of $(0.15) to $(0.07) per diluted share. Among other things, 2010 guidance factors in higher interest costs from anticipated refinancing of debt prior to their scheduled maturities, as well as the continuing impact of the weakened economy on operating results.
Conference Call Information
DCT(TM) will host a conference call to discuss third quarter 2009 results and its recent business activities on Friday, October 30, 2009 at 11:00 a.m. Eastern time. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing (800) 860-2442 or (412) 858-4600. A telephone replay will be available for one week following the call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 434190. A live webcast and replay of the conference call will be available in the investor relations section of the DCT(TM) website at www.dctindustrial.com.
Supplemental information will be available in the Investor Relations section of the Company's website at www.dctindustrial.com or by e-mail request at investorrelations@dctindustrial.com. Interested parties may also obtain supplemental information from the SEC's website at www.sec.gov.
About DCT Industrial Trust
DCT Industrial Trust is a leading industrial real estate company that owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico. As of September 30, 2009, the Company owned, managed or had under development 76.2 million square feet of assets leased to approximately 850 customers, including 14.6 million square feet managed on behalf of three institutional joint venture partners. Additional information is available at www.dctindustrial.com.
DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except per share information)
September 30, December 31,
2009 2008
---- ----
ASSETS (unaudited)
Land $516,810 $511,730
Buildings and improvements 2,197,205 2,107,756
Intangible lease assets 120,073 187,605
Construction in progress 66,843 90,770
------ ------
Total Investment in Properties 2,900,931 2,897,861
Less accumulated depreciation
and amortization (426,437) (417,404)
-------- --------
Net Investment in Properties 2,474,494 2,480,457
Investments in and advances to
unconsolidated joint ventures 109,494 125,452
------- -------
Net Investment in Real Estate 2,583,988 2,605,909
Cash and cash equivalents 8,802 19,681
Notes receivable 18,050 30,387
Deferred loan costs, net 4,483 5,098
Straight-line rent and other
receivables, net of allowance
for doubtful accounts
of $2,285 and $843, respectively 29,516 31,747
Other assets, net 13,292 11,021
Assets held for sale 24,157 -
------ ---
Total Assets $2,682,288 $2,703,843
========== ==========
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses $37,370 $35,193
Distributions payable 16,527 16,630
Tenant prepaids and security deposits 15,020 17,601
Other liabilities 10,323 26,472
Intangible lease liability, net 6,489 6,813
Senior unsecured notes 625,000 625,000
Mortgage notes 513,722 574,634
Liabilities related to assets
held for sale 947 -
--- ---
Total Liabilities 1,225,398 1,302,343
Equity:
Preferred stock, $0.01 par
value, 50,000,000 shares
authorized, none outstanding - -
Shares-in-trust, $0.01 par
value, 100,000,000 shares
authorized, none outstanding - -
Common stock, $0.01 par value,
350,000,000 shares
authorized, 205,942,157
and 175,141,387 shares issued
and outstanding as of
September 30, 2009 and
December 31, 2008, respectively 2,059 1,751
Additional paid-in capital 1,798,632 1,657,923
Distributions in excess of earnings (572,678) (513,040)
Accumulated other comprehensive loss (15,018) (22,463)
------- -------
Total Stockholders' Equity 1,212,995 1,124,171
Noncontrolling interests 243,895 277,329
------- -------
Total Equity 1,456,890 1,401,500
--------- ---------
Total Liabilities and Equity $2,682,288 $2,703,843
========== ==========
Total debt net of cash:
Senior unsecured notes and
mortgage notes $1,138,722 $1,199,634
Less cash and cash equivalents (8,802) (19,681)
------ --------
Net debt $1,129,920 $1,179,953
========== ==========
Book value of total assets less cash
and before depreciation:
Total assets $2,682,288 $2,703,843
Less cash and cash equivalents (8,802) (19,681)
Add back accumulated depreciation and
amortization 426,437 417,404
------- -------
Book value of total assets less cash
and before depreciation
and amortization $3,099,923 $3,101,566
========== ==========
Percentage of debt to total assets 42.5% 44.4%
==== ====
Percentage of net debt to book value
of total assets less cash and before
depreciation and amortization 36.5% 38.0%
==== ====
DCT INDUSTRIAL TRUST INC.
