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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2016
 
 
 
DCT INDUSTRIAL TRUST INC.
DCT INDUSTRIAL OPERATING PARTNERSHIP LP
(Exact name of registrant as specified in its charter)
 
 
 

Maryland (DCT Industrial Trust Inc.)
001-33201
82-0538520
Delaware (DCT Industrial Operating Partnership LP
333-195185
82-0538522
(State or other jurisdiction of
Incorporation or organization)
(Commission
File Number)
(IRS Employer
Identification No.)
518 17th Street, Suite 800
Denver, CO 80202
(Address of principal executive offices)
(303) 597-2400
(Registrant’s telephone number, including area code)
 
 
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 


1




Item 2.02 Results of Operations and Financial Condition.
On November 3, 2016, we issued a press release entitled “DCT INDUSTRIAL TRUST REPORTS THIRD QUARTER 2016 RESULTS” which sets forth disclosure regarding our results of operations for the third quarter ended September 30, 2016. A copy of this press release as well as a copy of the supplemental information referred to in the press release are made available on our website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. This Item 2.02 and the attached exhibits 99.1 and 99.2 are provided under Item 2.02 of Form 8-K and are furnished to, and shall not be deemed to be “filed” with, the Securities and Exchange Commission.
DCT Industrial Trust Inc. will hold its third quarter 2016 earnings conference call on Friday, November 4, 2016 at 11:00 a.m. Eastern time.  You may join the conference call through a live Internet webcast via DCT Industrial’s website at http://www.dctindustrial.com by clicking on the webcast link in the Investors section of the website.  Alternatively, you may join the conference call by telephone by dialing (877) 506-6112 or (412) 902-6686.  If you are unable to join the live conference call, you may access the webcast replay on DCT Industrial’s website until November 4, 2017.  A telephone replay will be available through Friday, February 3, 2017 following the call by dialing (877) 344-7529 or (412) 317-0088 and using the passcode 10094066.  Please note that the full text of the press release and supplemental schedules are available through DCT Industrial’s website at http://www.dctindustrial.com.  The information contained on DCT Industrial’s website is not incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.
(d) Exhibits: 
Exhibit Number
  
Description
 99.1
  
Press release dated November 3, 2016 and entitled “DCT INDUSTRIAL TRUST REPORTS THIRD QUARTER 2016 RESULTS”
 99.2
  
 Supplemental information entitled “DCT INDUSTRIAL THIRD QUARTER 2016 SUPPLEMENTAL REPORTING PACKAGE”

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
DCT INDUSTRIAL TRUST INC.
November 3, 2016
 
 
 
 
 
 
By:
 
/s/ John G. Spiegleman
 
 
 
 
Name: John G. Spiegleman
 
 
 
 
Title:   Executive Vice President and General Counsel
 
 
 
 
 
 
 
 
 
 
 
 
DCT INDUSTRIAL OPERATING PARTNERSHIP LP
 
By: DCT Industrial Trust Inc., its general partner
November 3, 2016
 
 
 
 
 
 
By:
 
/s/ John G. Spiegleman
 
 
 
 
Name: John G. Spiegleman
 
 
 
 
Title:   Executive Vice President and General Counsel
 

2
(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
36547451_dctindustrialreportsq_image1.jpg
Press Release
FOR IMMEDIATE RELEASE:



DCT INDUSTRIAL TRUST® REPORTS THIRD QUARTER 2016 RESULTS

Net Earnings of $0.17 per Diluted Share

FFO, as adjusted, of $0.60 per Share

Consolidated Operating Occupancy Increased to 96.2 Percent

Same-Store NOI Growth of 9.6 Percent on a Cash Basis and 8.8 Percent on a Straight-Line Basis

Rent Growth of 16.8 Percent on a Straight-Line Basis and 5.6 Percent on a Cash Basis

Stabilized 800,000 Square Feet of Development at an Average Yield of 7.4 Percent;
Executed 900,000 Square Feet of Development Leases

Increased Dividend $0.02 to $0.31 per Share, Up 6.9 Percent

Raised and Narrowed 2016 Net Earnings Guidance to between $0.87 and $0.91 Per Diluted Share

Raised and Narrowed 2016 FFO Guidance, as adjusted, to between $2.23 and $2.25
Per Diluted Share

DENVER, November 3, 2016 - DCT Industrial Trust® (NYSE: DCT), a leading real estate company, today announced financial results for the quarter ending September 30, 2016.

“DCT had a great third quarter highlighted by strong occupancy, rental rate and same-store NOI growth,” said Phil Hawkins, President and CEO for DCT Industrial. “Leasing in our development pipeline continues to exceed expectations, reflecting the quality of our development projects which are located in high-demand submarkets. We continue to see strong, broad-based customer demand across all markets and industry verticals including e-commerce, consumer, auto and housing.”

Net income attributable to common stockholders (“Net Earnings”) for Q3 2016 was $15.6 million, or $0.17 per diluted share, compared to $8.5 million, or $0.09 per diluted share, reported for Q3 2015, an increase of 88.9 percent per diluted share.

Funds from operations (“FFO”), as adjusted, attributable to common stockholders and unitholders for Q3 2016 totaled $57.1 million, or $0.60 per diluted share, compared with $46.9 million, or $0.50 per diluted share for Q3 2015, a 20.0 percent increase. These results exclude $0.5 million of acquisition costs and a $1.0 million decrease in interest expense related to hedge ineffectiveness for the quarter ending September 30, 2016 and $0.5 million of acquisition costs for the quarter ending September 30, 2015.

Property Results and Leasing Activity
As of September 30, 2016, DCT Industrial owned 398 consolidated operating properties, totaling 64.7 million square feet, with occupancy of 96.2 percent, an increase of 60 basis points from Q2 2016 and an increase of 170 basis points over Q3 2015. On a same-portfolio basis, the impact of dispositions and placing developments into operations increased occupancy by 10 basis points. Approximately 829,000


1


square feet, or 1.3 percent of DCT Industrial’s total consolidated portfolio was leased but not occupied at September 30, 2016, which does not take into consideration 733,000 square feet of leases in developments under construction or in pre-development.

In Q3 2016, the Company signed leases totaling 3.9 million square feet with rental rates increasing 16.8 percent on a straight-line basis and 5.6 percent on a cash basis, compared to the corresponding expiring leases. Over the previous four quarters, rental rates on signed leases increased 20.8 percent on a straight-line basis and 8.4 percent on a cash basis. The Company’s tenant retention rate was 92.9 percent in Q3 2016.

Net operating income (“NOI”) was $76.1 million in Q3 2016, compared with $65.1 million in Q3 2015. In Q3 2016, same-store NOI, excluding revenue from lease terminations, increased 8.8 percent on a straight-line basis and 9.6 percent on a cash basis, when compared to Q3 2015. Same-store occupancy averaged 95.7 percent in Q3 2016, an increase of 120 basis points from Q3 2015. Same-store occupancy as of September 30, 2016 was 96.0 percent.

Investment Activity
Acquisitions
From June 30 to November 3, 2016, DCT Industrial acquired six buildings for $60.8 million. Totaling 749,000 square feet, these buildings were 83.9 percent occupied at the time of closing. The Company expects a year-one weighted-average cash yield of 5.4 percent and anticipates a weighted-average stabilized cash yield of 6.1 percent on the acquired assets.

The table below summarizes acquisitions from June 30 to November 3, 2016:
Market
Submarket
Square Feet
Occupancy
at Closing
Closed
Anticipated
Yield1
Southern California (2 buildings)
Riverside
255,000
100.0%
Aug-16
4.3%
Cincinnati
Northwest
301,000
59.9%
Sept-16
7.9%
Dallas
Northwest
82,000
100.0%
Sept-16
7.0%
Northern California
880 Corridor
66,000
100.0%
Oct-16
7.5%
Chicago
I-55 Corridor
45,000
100.0%
Oct-16
6.1%
Total/Weighted Average
 
749,000
83.9%
 
6.1%

1 Anticipated yield represents year-one cash yield for stabilized acquisitions and projected stabilized cash yield for value-add acquisitions.

Development and Redevelopment
Since June 30, 2016, DCT Industrial stabilized 800,000 square feet of development at an anticipated weighted-average yield of 7.4 percent and a projected investment of $48.3 million. Additionally, the Company executed 900,000 square feet of development leases, bringing the pipeline to 40.3 percent leased. The Company also purchased 24.5 acres to develop 300,000 square feet.

Highlights since DCT Industrial’s Q2 2016 Earnings release:
Executed a 227,000 square foot pre-lease for DCT North Satellite Distribution Center bringing the 549,000 square foot development, located in the I-85/Northwest submarket of Atlanta, to 41.3 percent leased. Construction is scheduled to be complete in Q1 2017.
Executed a 181,000 square foot pre-lease for DCT Waters Ridge bringing the 347,000 square foot development, located in the Northwest submarket of Dallas, to 52.3 percent leased. Construction is scheduled to be complete in Q4 2016.


2


Executed a 156,000 square foot pre-lease for SCLA Building 18, a 370,000 square foot building located in Victorville, CA, which is owned by an unconsolidated joint venture.1 The building is 42.0 percent leased with construction scheduled to commence in Q4 2016.
Executed a 67,000 square foot lease for DCT Fife Distribution Center North bringing the 152,000 square foot development, located in the Fife/Tacoma submarket of Seattle, to 100.0 percent leased.
Executed two leases totaling 98,000 square feet for DCT Northwest Crossroads Logistics Centre II bringing the 320,000 square foot building, located in the Northwest submarket of Houston, to 100.0 percent leased.
Executed a 36,000 square foot lease for DCT Freeport West bringing the 108,000 square foot development, located in the DFW Airport submarket of Dallas, to 100.0 percent leased. Construction was completed in Q3 2016.
Commenced redevelopment of 10810 Painter Avenue, a 115,000 square foot building located in the Mid-Counties submarket of Los Angeles. Construction is scheduled to be complete in Q2 2017.
Acquired 14.6 acres in the Northeast submarket of Denver to develop DCT Summit Distribution Center, a 168,000 square foot distribution building.
1 DCT Industrial does not control this unconsolidated joint venture.

Dispositions
Since June 30, 2016, a joint venture, in which DCT Industrial owned a 10.0 percent interest, sold a 126,000 square foot building, located in the Jefferson Riverport submarket of Louisville. This transaction generated gross proceeds to DCT Industrial of $0.5 million with an expected year-one weighted-average cash yield of 3.4 percent.

Capital Markets
DCT Industrial raised $33.5 million in net proceeds from the sale of common stock through its “at the market” equity offering. The Company issued approximately 700,000 shares at a weighted-average price of $49.12 per share. The proceeds were used to fund development and general corporate activities.

Dividend
DCT Industrial’s Board of Directors declared a $0.31 per share quarterly cash dividend, an increase of 6.9 percent, payable on January 5, 2017 to stockholders of record as of December 23, 2016.

Guidance
The Company raised and narrowed 2016 Net Earnings guidance to between $0.87 and $0.91 per diluted share, up from $0.84 to $0.90. Net Earnings guidance excludes any gain or loss related to potential future dispositions.

The Company raised and narrowed 2016 FFO guidance, as adjusted, to between $2.23 and $2.25 per diluted share, up from $2.16 to $2.22 per diluted share. The Company’s FFO guidance excludes actual and any potential future acquisition costs and non-cash interest expense impact of hedge ineffectiveness.

For additional details, assumptions and definitions related to the Company’s 2016 guidance, please refer to page 8 in DCT Industrial’s third quarter 2016 supplemental reporting package.

Conference Call Information
DCT Industrial will host a conference call to discuss Q3 results on Friday, November 4, 2016 at 11:00 a.m. Eastern Time. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing (877) 506-6112 or (412) 902-6686. A telephone replay will be available through Friday, February 3, 2017 and can be accessed by dialing (877) 344-7529 or (412) 317-0088 and entering the


3


passcode 10094066. A live webcast of the conference call will be available in the Investors section of the DCT Industrial website at www.dctindustrial.com. A webcast replay will also be available shortly following the call until November 4, 2017.

Supplemental information is available in the Investors section of the Company’s website at www.dctindustrial.com or by e-mail request to 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 is a leading real estate company specializing in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties in high-demand distribution markets in the U.S. DCT’s actively-managed portfolio is strategically located near population centers and well-positioned to take advantage of market dynamics. As of September 30, 2016, the Company owned interests in approximately 73.5 million square feet of properties leased to approximately 900 customers. DCT maintains a Baa2 rating from Moody’s Investors Service and a BBB- from Standard & Poor’s Rating Services. Additional information is available at www.dctindustrial.com.

Click here to subscribe to Mobile Alerts for DCT Industrial.

CONTACT:
Melissa Sachs
DCT Industrial Trust
303-597-2400
investorrelations@dctindustrial.com
###




4


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share information)

 
 
September 30, 2016
 
December 31, 2015
ASSETS
 
(unaudited)
 
 
Land
 
$
1,026,776

 
$
1,009,905

Buildings and improvements
 
3,099,166

 
2,886,859

Intangible lease assets
 
79,771

 
84,420

Construction in progress
 
114,332

 
159,397

Total investment in properties
 
4,320,045

 
4,140,581

Less accumulated depreciation and amortization
 
(809,408
)
 
(742,980
)
Net investment in properties
 
3,510,637

 
3,397,601

Investments in and advances to unconsolidated joint ventures
 
93,854

 
82,635

Net investment in real estate
 
3,604,491

 
3,480,236

Cash and cash equivalents
 
7,073

 
18,412

Restricted cash
 
2,417

 
31,187

Straight-line rent and other receivables, net of allowance for doubtful
   accounts of $594 and $335, respectively
 
76,803

 
60,357

Other assets, net
 
23,244

 
15,964

Assets held for sale
 
10,138

 
26,199

Total assets
 
$
3,724,166

 
$
3,632,355

 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

Liabilities:
 
 

 
 

Accounts payable and accrued expenses
 
$
106,039

 
$
108,788

Distributions payable
 
27,575

 
26,938

Tenant prepaids and security deposits
 
31,772

 
29,663

Other liabilities
 
40,177

 
18,398

Intangible lease liabilities, net
 
21,126

 
22,070

Line of credit
 

 
70,000

Senior unsecured notes
 
1,351,537

 
1,276,097

Mortgage notes
 
204,102

 
210,375

Liabilities related to assets held for sale
 
365

 
869

Total liabilities
 
1,782,693

 
1,763,198

 
 
 
 
 
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, 500,000,000 shares authorized 90,882,190
   and 88,313,891 shares issued and outstanding as of September 30, 2016
   and December 31, 2015, respectively
 
909

 
883

Additional paid-in capital
 
2,861,623

 
2,766,193

Distributions in excess of earnings
 
(997,015
)
 
(992,010
)
Accumulated other comprehensive loss
 
(27,756
)
 
(23,082
)
Total stockholders’ equity
 
1,837,761

 
1,751,984

Noncontrolling interests
 
103,712

 
117,173

Total equity
 
1,941,473

 
1,869,157

Total liabilities and equity
 
$
3,724,166

 
$
3,632,355





5


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited, in thousands, except per share information)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
REVENUES:
 
 
 
 

 
 
 
 
Rental revenues
 
$
99,933

 
$
88,092

 
$
289,507

 
$
264,269

Institutional capital management and other fees
 
341

 
333

 
1,039

 
1,134

Total revenues
 
100,274

 
88,425

 
290,546

 
265,403

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 

 
 

 
 
 
 
Rental expenses
 
8,795

 
8,900

 
27,830

 
27,456

Real estate taxes
 
15,074

 
14,056

 
44,729

 
42,082

Real estate related depreciation and amortization
 
40,273

 
39,431

 
120,244

 
116,876

General and administrative
 
7,370

 
7,720

 
20,990

 
24,912

Impairment losses
 

 
371

 

 
371

Casualty gain
 
(2,440
)
 

 
(2,278
)
 

Total operating expenses
 
69,072

 
70,478

 
211,515

 
211,697

Operating income
 
31,202

 
17,947

 
79,031

 
53,706

 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 

 
 

 
 
 
 
Development profit, net of taxes
 

 

 

 
2,627

Equity in earnings of unconsolidated joint
ventures, net
 
1,164

 
4,493

 
2,983

 
6,336

Gain on dispositions of real estate interests
 

 

 
43,052

 
41,086

Interest expense
 
(15,773
)
 
(13,078
)
 
(47,830
)
 
(40,591
)
Interest and other income (expense)
 
18

 
(42
)
 
581

 
(71
)
Income tax expense and other taxes
 
(222
)
 
(241
)
 
(510
)
 
(712
)
Consolidated net income
of DCT Industrial Trust Inc.
 
16,389

 
9,079

 
77,307

 
62,381

Net income attributable to noncontrolling
interests
 
(829
)
 
(622
)
 
(3,938
)
 
(6,882
)
Net income attributable to common
stockholders
 
15,560

 
8,457

 
73,369

 
55,499

Distributed and undistributed earnings allocated
to participating securities
 
(163
)
 
(166
)
 
(497
)
 
(510
)
Adjusted net income attributable
to common stockholders
 
$
15,397

 
$
8,291

 
$
72,872

 
$
54,989

 
 
 
 
 
 
 
 
 
NET EARNINGS PER COMMON SHARE:
 
 

 
 

 
 
 
 
Basic
 
$
0.17

 
$
0.09

 
$
0.81

 
$
0.62

Diluted
 
$
0.17

 
$
0.09

 
$
0.81

 
$
0.62

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
Basic
 
90,250

 
88,207

 
89,464

 
88,162

Diluted
 
90,723

 
88,526

 
89,906

 
88,472

 
 
 
 
 
 
 
 
 
Distributions declared per common share
 
$
0.29

 
$
0.28

 
$
0.87

 
$
0.84





6


Reconciliation of Net Income Attributable to Common Stockholders to Funds from Operations
(unaudited, in thousands, except per share and unit data)
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Reconciliation of net income attributable to common stockholders to FFO:
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
15,560

 
$
8,457

 
$
73,369

 
$
55,499

Adjustments:
 
 
 
 
 
 
 
 
Real estate related depreciation and amortization
 
40,273

 
39,431

 
120,244

 
116,876

Equity in earnings of unconsolidated joint ventures, net
 
(1,164
)
 
(4,493
)
 
(2,983
)
 
(6,336
)
Equity in FFO of unconsolidated joint ventures(1)
 
2,503

 
2,441

 
7,321

 
7,424

Impairment losses on depreciable real estate
 

 
371

 

 
371

Gain on dispositions of real estate interests
 

 

 
(43,052
)
 
(41,086
)
Gain on dispositions of non-depreciable real estate
 

 

 

 
18

Noncontrolling interest in the above adjustments
 
(1,908
)
 
(1,897
)
 
(4,005
)
 
(4,086
)
FFO attributable to unitholders
 
2,343

 
2,119

 
6,786

 
6,214

FFO attributable to common stockholders and unitholders – basic and diluted(2)
 
57,607

 
46,429

 
157,680

 
134,894

Adjustments:
 
 
 
 
 
 
 
 
Acquisition costs
 
468

 
455

 
560

 
1,939

Hedge ineffectiveness (non-cash)
 
(967
)
 

 
453

 

FFO, as adjusted, attributable to common stockholders and unitholders – basic
and diluted
 
$
57,108

 
$
46,884

 
$
158,693

 
$
136,833

 
 
 
 
 
 
 
 
 
FFO per common share and unit – basic
 
$
0.61

 
$
0.50

 
$
1.68

 
$
1.45

FFO per common share and unit – diluted
 
$
0.61

 
$
0.50

 
$
1.67

 
$
1.45

 
 
 
 
 
 
 
 
 
FFO, as adjusted, per common share and unit – basic
 
$
0.60

 
$
0.50

 
$
1.69

 
$
1.47

FFO, as adjusted, per common share and unit – diluted
 
$
0.60

 
$
0.50

 
$
1.68

 
$
1.47

 
 
 
 
 
 
 
 
 
FFO weighted average common shares and units outstanding:
 
 
 
 
 
 
 
 
Common shares for net earnings per share
 
90,250

 
88,207

 
89,464

 
88,162

Participating securities
 
582

 
614

 
561

 
604

Units
 
3,797

 
4,217

 
4,023

 
4,257

FFO weighted average common shares, participating securities and units outstanding – basic
 
94,629

 
93,038

 
94,048

 
93,023

Dilutive common stock equivalents
 
473

 
319

 
442

 
310

FFO weighted average common shares, participating securities and units outstanding – diluted
 
95,102

 
93,357

 
94,490

 
93,333


(1) 
Equity in FFO of unconsolidated joint ventures is determined as our share of FFO from each unconsolidated joint venture. See DCT Industrial's third quarter 2016 supplemental reporting package for additional information.
(2) 
FFO as defined by the National Association of Real Estate Investment Trusts (NAREIT).



7


Guidance
The Company is providing the following guidance:
  
 
Range for the Full-Year
 
 
2016
 
 
Low
 
High
Guidance:
 
 
 
 

Net earnings per common share - diluted
 
$
0.87

 
$
0.91

Adjustments:
 
 
 
 
Gains on disposition of real estate interest
 
(0.46
)
 
(0.46
)
Real estate related depreciation and amortization(1)
 
1.77

 
1.75

Hedge ineffectiveness (non-cash) and acquisition costs
 
0.02

 
0.02

Noncontrolling interest in adjustments
 
0.03

 
0.03

FFO, as adjusted, per common share and unit - diluted(2)
 
$
2.23

 
$
2.25


(1) 
Includes proportionate share of real estate depreciation and amortization from unconsolidated joint ventures.
(2) 
The Company’s FFO guidance excludes actual and any potential future acquisition costs and non-cash interest expense impact of hedge ineffectiveness.

The following table shows the calculation of our Fixed Charge Coverage Ratio for the three and nine months ended September 30, 2016 and 2015 (unaudited, in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Net income attributable to common stockholders
$
15,560

 
$
8,457

 
$
73,369

 
$
55,499

Interest expense
 
15,773

 
 
13,078

 
 
47,830

 
 
40,591

Proportionate share of interest expense from unconsolidated joint ventures(1)
 
276

 
 
317

 
 
827

 
 
970

Real estate related depreciation and amortization
 
40,273

 
 
39,431

 
 
120,244

 
 
116,876

Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures(1)
 
1,097

 
 
1,203

 
 
3,295

 
 
3,637

Income tax expense and other taxes
 
222

 
 
241

 
 
510

 
 
712

Stock-based compensation
 
1,413

 
 
1,342

 
 
4,153

 
 
3,882

Noncontrolling interests
 
829

 
 
622

 
 
3,938

 
 
6,882

Non-FFO gain on dispositions of real estate interests
 

 
 

 
 
(43,052
)
 
 
(41,068
)
Impairment losses
 

 
 
371

 
 

 
 
371

Adjusted EBITDA
$
75,443

 
$
65,062

 
$
211,114

 
$
188,352

 
 
 
 
 
 
 
 
 
 
 
 
CALCULATION OF FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
15,773

 
$
13,078

 
$
47,830

 
$
40,591

Capitalized interest
 
2,040

 
 
4,219

 
 
7,648

 
 
12,053

Amortization of loan costs and debt premium/discount
 
(237
)
 
 
184

 
 
(687
)
 
 
276

Other non-cash interest expense(2)
 
(56
)
 
 
(1,024
)
 
 
(3,524
)
 
 
(3,072
)
Proportionate share of interest expense from unconsolidated joint ventures(1)
 
276

 
 
317

 
 
827

 
 
970

Total fixed charges
$
17,796

 
$
16,774

 
$
52,094

 
$
50,818

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charge coverage ratio
 
4.2x

 
 
3.9x

 
 
4.1x

 
 
3.7x

    
(1) 
Amounts are determined based on our ownership share of such amounts from the unconsolidated joint ventures. See DCT Industrial's third quarter 2016 supplemental reporting package for additional information.
(2) 
Includes $(1.0) million and $0.5 million of hedge ineffectiveness for the three and nine months ended September 30, 2016, respectively.



8


The following table is a reconciliation of our reported net income attributable to common stockholders to our net operating income for the three and nine months ended September 30, 2016 and 2015 (unaudited, in thousands):
 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Reconciliation of net income attributable to common stockholders to NOI:
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
15,560

 
$
8,457

 
$
73,369

 
$
55,499

Net income attributable to noncontrolling interests
 
 
829

 
 
622

 
 
3,938

 
 
6,882

Income tax expense and other taxes
 
 
222

 
 
241

 
 
510

 
 
712

Interest and other (income) expense
 
 
(18
)
 
 
42

 
 
(581
)
 
 
71

Interest expense
 
 
15,773

 
 
13,078

 
 
47,830

 
 
40,591

Equity in earnings of unconsolidated joint ventures, net
 
 
(1,164
)
 
 
(4,493
)
 
 
(2,983
)
 
 
(6,336
)
General and administrative expense
 
 
7,370

 
 
7,720

 
 
20,990

 
 
24,912

Real estate related depreciation and amortization
 
 
40,273

 
 
39,431

 
 
120,244

 
 
116,876

Impairment losses
 
 

 
 
371

 
 

 
 
371

Development profit, net of taxes
 
 

 
 

 
 

 
 
(2,627
)
Gain on dispositions of real estate interests
 
 

 
 

 
 
(43,052
)
 
 
(41,086
)
Casualty gain
 
 
(2,440
)
 
 

 
 
(2,278
)
 
 

Institutional capital management and other fees
 
 
(341
)
 
 
(333
)
 
 
(1,039
)
 
 
(1,134
)
Total NOI
 
 
76,064

 
 
65,136

 
 
216,948

 
 
194,731

Less NOI – non-same store properties
 
 
(10,996
)
 
 
(4,675
)
 
 
(38,482
)
 
 
(23,519
)
Same store NOI
 
 
65,068

 
 
60,461

 
 
178,466

 
 
171,212

Less revenue from lease terminations
 
 
(249
)
 
 
(1,184
)
 
 
(901
)
 
 
(1,946
)
Add early termination straight-line rent adjustment
 
 
30

 
 
348

 
 
162

 
 
255

Same store NOI, excluding revenue from lease terminations
 
 
64,849

 
 
59,625

 
 
177,727

 
 
169,521

Less straight-line rents, net of related bad debt expense
 
 
(764
)
 
 
(954
)
 
 
(3,403
)
 
 
(2,950
)
Less amortization of above/(below) market rents
 
 
(568
)
 
 
(702
)
 
 
(1,679
)
 
 
(1,865
)
Same store Cash NOI, excluding revenue from lease terminations
 
$
63,517

 
$
57,969

 
$
172,645

 
$
164,706


 


















9


Financial Measures
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 and involuntary conversion gain (loss), 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 Industrial’s 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 Industrial’s financial performance since it excludes expenses which could materially impact our results of operations. Further, DCT Industrial’s 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 Industrial’s overall financial performance.

We calculate Cash NOI as NOI excluding non-cash amounts recorded for straight-line rents including related bad debt expense and the amortization of above and below market rents. DCT Industrial considers Cash NOI to be an appropriate supplemental performance measure because Cash NOI reflects the operating performance of DCT Industrial’s properties and excludes certain non-cash items that are not considered to be controllable in connection with the management of the property such as accounting adjustments for straight-line rent and the amortization of above or below market rent. Additionally, DCT Industrial presents Cash NOI, excluding revenue from lease terminations, as such revenue is not considered indicative of recurring operating performance.

Same Store Properties are determined independently for each period presented, quarter-to-date and year-to-date, by including all consolidated operating properties that have been owned for the entire current and prior period presented. We consider NOI and Cash NOI from Same Store Properties to be a useful measure in evaluating our financial performance and to improve comparability between periods by including only properties owned for comparable periods.

DCT Industrial believes that net income (loss) attributable to common stockholders, as defined by GAAP, is the most appropriate earnings measure.  However, DCT Industrial considers funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), to be a useful supplemental, non-GAAP measure of DCT Industrial’s operating performance.  NAREIT developed FFO as a relative measure of performance of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP.  FFO is generally defined as net income attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains from dispositions of operating real estate held for investment purposes, plus impairment losses on depreciable real estate and impairments of in substance real estate investments in investees that are driven by measurable decreases in the fair value of the depreciable real estate held by the unconsolidated joint ventures and adjustments to derive DCT Industrial’s proportionate share of FFO of unconsolidated joint ventures.  We exclude gains and losses on business combinations and include the gains or losses from dispositions of properties which were acquired or developed with the intention to sell or contribute to an investment fund in our definition of FFO.  Although the NAREIT definition of FFO predates the guidance for accounting for gains and losses on business combinations, we believe that excluding such gains and losses is consistent with the key objective of FFO as a performance measure.  We also present FFO, as adjusted, which excludes hedge ineffectiveness, certain severance costs, acquisition costs, debt modification costs and impairment losses on properties which are not depreciable.  We believe that FFO excluding hedge ineffectiveness, certain severance costs, acquisition costs, debt modification costs and impairment losses on non-depreciable real estate is useful supplemental information regarding our operating performance as it provides a more meaningful and consistent comparison of our operating performance and allows investors to more easily compare our operating results.  Readers should note that FFO captures neither the changes in the value of DCT Industrial’s properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of DCT Industrial’s properties, all of which have real economic effect and could materially impact DCT Industrial’s results from operations. NAREIT’s definition of FFO is subject to interpretation, and modifications to the NAREIT definition of FFO are


10


common. Accordingly, DCT Industrial’s FFO may not be comparable to other REITs’ FFO and FFO should be considered only as a supplement to net income (loss) as a measure of DCT Industrial’s performance.

We calculate Fixed Charge Coverage Ratio as Adjusted EBITDA divided by total Fixed Charges. Fixed Charges include interest expense, interest capitalized, our proportionate share of our unconsolidated joint venture interest expense and adjustments for amortization of discounts, premiums, loan costs and other non-cash interest expense. DCT Industrial considers Fixed Charge Coverage Ratio to be an appropriate supplemental measure of our ability to satisfy fixed financing obligations.












































11


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 cost 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 in the section of our Form 10-K filed with the SEC and updated on Form 10-Q entitled “Risk Factors.” 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. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.



12
(Back To Top)

Section 3: EX-99.2 (EXHIBIT 99.2)

Exhibit
        
Exhibit 99.2


36547451_dcti0155supplementalcovers27.jpg

 
 
 

 
Table of Contents


 



Same Store Analysis
Guidance   
10-11
Debt Covenants and Credit Ratings
21-24
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.

Third Quarter 2016
Supplemental Reporting Package

36547451_dctsupplemental_image2.jpg
Page 2


 
Consolidated Statements of Operations
(unaudited, amounts in thousands, except per share data)

 

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Rental revenues
$
99,933

 
$
88,092

 
$
289,507

 
$
264,269

Institutional capital management and other fees
 
341

 
 
333

 
 
1,039

 
 
1,134

Total revenues
 
100,274

 
 
88,425

 
 
290,546

 
 
265,403

 
 
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Rental expenses
 
8,795

 
 
8,900

 
 
27,830

 
 
27,456

Real estate taxes
 
15,074

 
 
14,056

 
 
44,729

 
 
42,082

Real estate related depreciation and amortization
 
40,273

 
 
39,431

 
 
120,244

 
 
116,876

General and administrative
 
7,370

 
 
7,720

 
 
20,990

 
 
24,912

Impairment losses
 

 
 
371

 
 

 
 
371

Casualty gain
 
(2,440
)
 
 

 
 
(2,278
)
 
 

Total operating expenses
 
69,072

 
 
70,478

 
 
211,515

 
 
211,697

Operating income
 
31,202

 
 
17,947

 
 
79,031

 
 
53,706

 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
 
Development profit, net of taxes
 

 
 

 
 

 
 
2,627

Equity in earnings of unconsolidated joint ventures, net
 
1,164

 
 
4,493

 
 
2,983

 
 
6,336

Gain on dispositions of real estate interests
 

 
 

 
 
43,052

 
 
41,086

Interest expense
 
(15,773
)
 
 
(13,078
)
 
 
(47,830
)
 
 
(40,591
)
Interest and other income (expense)
 
18

 
 
(42
)
 
 
581

 
 
(71
)
Income tax expense and other taxes
 
(222
)
 
 
(241
)
 
 
(510
)
 
 
(712
)
Consolidated net income of DCT Industrial Trust Inc.
 
16,389

 
 
9,079

 
 
77,307

 
 
62,381

Net income attributable to noncontrolling interests
 
(829
)
 
 
(622
)
 
 
(3,938
)
 
 
(6,882
)
Net income attributable to common stockholders
 
15,560

 
 
8,457

 
 
73,369

 
 
55,499

Distributed and undistributed earnings allocated to participating securities
 
(163
)
 
 
(166
)
 
 
(497
)
 
 
(510
)
Adjusted net income attributable to common stockholders
$
15,397

 
$
8,291

 
$
72,872

 
$
54,989

 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.17

 
$
0.09

 
$
0.81

 
$
0.62

Diluted
$
0.17

 
$
0.09

 
$
0.81

 
$
0.62

 
 
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
90,250

 
 
88,207

 
 
89,464

 
 
88,162

Diluted
 
90,723

 
 
88,526

 
 
89,906

 
 
88,472



Third Quarter 2016
Supplemental Reporting Package

36547451_dctsupplemental_image2.jpg
Page 3


 
Consolidated Balance Sheets
(amounts in thousands)

 


 
September 30, 2016
 
December 31, 2015
ASSETS:
(unaudited)
 
 
 
Operating properties
$
4,077,582

 
$
3,791,721

Properties under development
 
141,331

 
 
242,906

Properties in pre-development
 
34,817

 
 
41,313

Properties under redevelopment
 
58,617

 
 
56,943

Land held
 
7,698

 
 
7,698

Total investment in properties
 
4,320,045

 
 
4,140,581

Less accumulated depreciation and amortization
 
(809,408
)
 
 
(742,980
)
Net investment in properties
 
3,510,637

 
 
3,397,601

Investments in and advances to unconsolidated joint ventures
 
93,854

 
 
82,635

Net investment in real estate
 
3,604,491

 
 
3,480,236

Cash and cash equivalents
 
7,073

 
 
18,412

Restricted cash
 
2,417

 
 
31,187

Straight-line rent and other receivables, net
 
76,803

 
 
60,357

Other assets, net
 
23,244

 
 
15,964

Assets held for sale
 
10,138

 
 
26,199

Total assets
$
3,724,166

 
$
3,632,355

 
 
 
 
 
 
LIABILITIES AND EQUITY:
 
 
 
 
 
Accounts payable and accrued expenses
$
106,039

 
$
108,788

Distributions payable
 
27,575

 
 
26,938

Tenant prepaids and security deposits
 
31,772

 
 
29,663

Other liabilities
 
40,177

 
 
18,398

Intangible lease liabilities, net
 
21,126

 
 
22,070

Line of credit
 

 
 
70,000

Senior unsecured notes
 
1,351,537

 
 
1,276,097

Mortgage notes
 
204,102

 
 
210,375

Liabilities related to assets held for sale
 
365

 
 
869

Total liabilities
 
1,782,693

 
 
1,763,198

Total stockholders’ equity
 
1,837,761

 
 
1,751,984

Noncontrolling interests
 
103,712

 
 
117,173

Total liabilities and equity
$
3,724,166

 
$
3,632,355




Third Quarter 2016
Supplemental Reporting Package

36547451_dctsupplemental_image2.jpg
Page 4


 
Funds From Operations ("FFO")
(unaudited, amounts in thousands, except per share and unit data)
   
 


 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
Reconciliation of net income attributable to common stockholders to FFO:
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
15,560

 
$
8,457

 
$
73,369

 
$
55,499

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate related depreciation and amortization
 
 
40,273

 
 
39,431

 
 
120,244

 
 
116,876

 
Equity in earnings of unconsolidated joint ventures, net
 
 
(1,164
)
 
 
(4,493
)
 
 
(2,983
)
 
 
(6,336
)
 
Equity in FFO of unconsolidated joint ventures(1)
 
 
2,503

 
 
2,441

 
 
7,321

 
 
7,424

 
Impairment losses on depreciable real estate
 
 

 
 
371

 
 

 
 
371

 
Gain on dispositions of real estate interests
 
 

 
 

 
 
(43,052
)
 
 
(41,086
)
 
Gain on dispositions of non-depreciable real estate
 
 

 
 

 
 

 
 
18

 
Noncontrolling interest in the above adjustments
 
 
(1,908
)
 
 
(1,897
)
 
 
(4,005
)
 
 
(4,086
)
 
FFO attributable to unitholders
 
 
2,343

 
 
2,119

 
 
6,786

 
 
6,214

 
FFO attributable to common stockholders and unitholders –
  basic and diluted(2)
 
 
57,607

 
 
46,429

 
 
157,680

 
 
134,894

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
 
 
468

 
 
455

 
 
560

 
 
1,939

 
Hedge ineffectiveness (non-cash)
 
 
(967
)
 
 

 
 
453

 
 

 
FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted
 
$
57,108

 
$
46,884

 
$
158,693

 
$
136,833

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO per common share and unit – basic
 
$
0.61

 
$
0.50

 
$
1.68

 
$
1.45

 
FFO per common share and unit – diluted
 
$
0.61

 
$
0.50

 
$
1.67

 
$
1.45

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO, as adjusted, per common share and unit – basic
 
$
0.60

 
$
0.50

 
$
1.69

 
$
1.47

 
FFO, as adjusted, per common share and unit – diluted
 
$
0.60

 
$
0.50

 
$
1.68

 
$
1.47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO weighted average common shares and units outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares for net earnings per share
 
 
90,250

 
 
88,207

 
 
89,464

 
 
88,162

 
Participating securities
 
 
582

 
 
614

 
 
561

 
 
604

 
Units
 
 
3,797

 
 
4,217

 
 
4,023

 
 
4,257

 
FFO weighted average common shares, participating securities and units
outstanding – basic
 
 
94,629

 
 
93,038

 
 
94,048

 
 
93,023

 
Dilutive common stock equivalents
 
 
473

 
 
319

 
 
442

 
 
310

 
FFO weighted average common shares, participating securities and units
outstanding – diluted
 
 
95,102

 
 
93,357

 
 
94,490

 
 
93,333

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net operating income ("NOI") to FFO:
 
 
 
 
 
 
 
 
 
 
 
 
 
NOI(3)(4)
 
$
76,064

 
$
65,136

 
$
216,948

 
$
194,731

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in FFO of unconsolidated joint ventures(1)
 
 
2,503

 
 
2,441

 
 
7,321

 
 
7,424

 
Institutional capital management and other fees
 
 
341

 
 
333

 
 
1,039

 
 
1,134

 
Gain on dispositions of non-depreciable real estate
 
 

 
 

 
 

 
 
18

 
Casualty gain
 
 
2,440

 
 

 
 
2,278

 
 

 
Development profit, net of taxes
 
 

 
 

 
 

 
 
2,627

 
General and administrative expense
 
 
(7,370
)
 
 
(7,720
)
 
 
(20,990
)
 
 
(24,912
)
 
Interest expense
 
 
(17,813
)
 
 
(17,297
)
 
 
(55,478
)
 
 
(52,644
)
 
Capitalized interest expense
 
 
2,040

 
 
4,219

 
 
7,648

 
 
12,053

 
Interest and other income (expense)
 
 
18

 
 
(42
)
 
 
581

 
 
(71
)
 
Income tax expense and other taxes
 
 
(222
)
 
 
(241
)
 
 
(510
)
 
 
(712
)
 
FFO attributable to noncontrolling interests
 
 
(394
)
 
 
(400
)
 
 
(1,157
)
 
 
(4,754
)
 
FFO attributable to common stockholders and unitholders –
  basic and diluted(2)
 
 
57,607

 
 
46,429

 
 
157,680

 
 
134,894

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
 
 
468

 
 
455

 
 
560

 
 
1,939

 
Hedge ineffectiveness (non-cash)
 
 
(967
)
 
 

 
 
453

 
 

 
FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted
 
$
57,108

 
$
46,884

 
$
158,693

 
$
136,833

 

(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) 
See the reconciliation of non-GAAP financial measure to net income attributable to common stockholders in Definitions.
(4) 
Includes assets held for sale.

Third Quarter 2016
Supplemental Reporting Package

36547451_dctsupplemental_image2.jpg
Page 5


 
Same Store Analysis
(unaudited, amounts in thousands, except number of buildings)

 


 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
Same Store Analysis
 
2016
 
2015
 
Percentage Change
 
2016
 
2015
 
Percentage Change
Same Store Properties:(1)
 
 
 
 
 
 
 
 
 
 
 
 
Number of properties
 
366

 
366

 
 
 
348

 
348

 
 
Square feet as of period end
 
56,118

 
56,118

 
 
 
53,411

 
53,411

 
 
Average occupancy
 
95.7
%
 
94.5
%
 
 
 
95.7
%
 
94.8
%
 
 
Occupancy as of period end
 
96.0
%
 
94.4
%
 
 
 
96.6
%
 
94.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rental revenues