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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): February 2, 2017
 
 
 
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.)
555 17th Street, Suite 3700
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 February 2, 2017, we issued a press release entitled “DCT INDUSTRIAL TRUST REPORTS FOURTH QUARTER AND FULL-YEAR 2016 RESULTS” which sets forth disclosure regarding our results of operations for the fourth quarter ended December 31, 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 fourth quarter and full-year 2016 earnings conference call on Friday, February 3, 2017 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 February 3, 2018.  A telephone replay will be available through Wednesday, May 3, 2017 following the call by dialing (877) 344-7529 or (412) 317-0088 and using the passcode 10098822.  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 February 2, 2017 and entitled “DCT INDUSTRIAL TRUST REPORTS FOURTH QUARTER AND FULL-YEAR 2016 RESULTS”
 99.2
  
Supplemental information entitled “DCT INDUSTRIAL FOURTH 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.
February 2, 2017
 
 
 
 
 
 
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
February 2, 2017
 
 
 
 
 
 
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
37866747_dctindustrialreportsq416imag.jpg
Press Release
FOR IMMEDIATE RELEASE:


DCT INDUSTRIAL TRUST® REPORTS FOURTH QUARTER
AND FULL-YEAR 2016 RESULTS

Net Earnings of $0.21 per Diluted Share in Q4 and $1.03 per Diluted Share in 2016

FFO, as adjusted, of $0.59 per Diluted Share in Q4 and $2.27 per Diluted Share in 2016

Consolidated Operating Occupancy Increased to 97.2 Percent

Same-Store NOI Growth of 8.9 Percent on a Cash Basis and 7.4 Percent on a Straight-Line Basis in Q4;
5.9 Percent on a Cash Basis and Straight Line-Basis for 2016

Rent Growth of 19.3 Percent on a Straight-Line Basis and 8.9 Percent on a Cash Basis in Q4;
18.4 Percent on a Straight-Line Basis and 7.5 Percent on a Cash Basis for 2016

DENVER, February 2, 2017 - DCT Industrial Trust® (NYSE: DCT), a leading real estate company, today announced financial results for the three months and year ending December 31, 2016.

“2016 was another outstanding year for DCT with strong operating results and value creation for our shareholders,” said Phil Hawkins, President and CEO for DCT Industrial. “Operationally, we saw excellent rent, occupancy and same-store NOI growth, and our development program continues to significantly exceed expectations. We stabilized 5.8 million square feet of development and redevelopment in 2016 with an investment of approximately $437 million and commenced construction on 3.5 million square feet with a projected investment of $240 million.”

Net income attributable to common stockholders (“Net Earnings”) for Q4 2016 was $19.7 million, or $0.21 per diluted share, compared to $38.5 million, or $0.43 per diluted share, reported for Q4 2015, a decrease of 51.2 percent per diluted share. For the year ending December 31, 2016, Net Earnings was $93.1 million, or $1.03 per diluted share, compared to $94.0 million, or $1.05 per diluted share, reported for the year ending December 31, 2015, a decrease of 1.9 percent per diluted share.

Funds from operations (“FFO”), as adjusted, attributable to common stockholders and unitholders for Q4 2016 totaled $56.0 million, or $0.59 per diluted share, compared with $49.6 million, or $0.53 per diluted share for Q4 2015, an 11.3 percent increase. These results exclude $0.5 million of acquisition costs and a $0.9 million decrease in interest expense related to hedge ineffectiveness for the quarter ending December 31, 2016, and $3.6 million of severance costs for the quarter ending December 31, 2015.

For the year ending December 31, 2016, FFO, as adjusted, totaled $214.7 million, or $2.27 per diluted share, compared with $186.4 million, or $2.00 per diluted share, for the year ending December 31, 2015, an increase of 13.5 percent per diluted share. These results exclude $1.1 million of acquisition costs and a $0.4 million decrease in interest expense related to hedge ineffectiveness for the year ending December 31, 2016, and $1.9 million of acquisition costs and $3.6 million of severance costs for the year ending December 31, 2015.

Property Results and Leasing Activity
As of December 31, 2016, DCT Industrial owned 401 consolidated operating properties, totaling 64.7 million square feet, with occupancy of 97.2 percent, an increase of 100 basis points from Q3 2016 and an


1


increase of 280 basis points over Q4 2015. On a same-portfolio basis, the net impact of acquisitions, dispositions and placing developments into operations increased occupancy by 70 basis points. Approximately 309,000 square feet, or 0.5 percent of DCT Industrial’s total consolidated portfolio was leased but not occupied at December 31, 2016, which does not take into consideration 441,000 square feet of leases in development buildings either under construction or in pre-development.

In Q4 2016, the Company signed leases totaling 1.6 million square feet with rental rates increasing 19.3 percent on a straight-line basis and 8.9 percent on a cash basis, compared to the corresponding expiring leases. For the full-year, the Company signed leases totaling 14.3 million square feet with rental rates increasing 18.4 percent on a straight-line basis and 7.5 percent on a cash basis. The Company’s tenant retention rate was 78.4 percent in Q4 2016 and 76.4 percent for the year ending December 31, 2016.

Net operating income (“NOI”) was $77.6 million in Q4 2016, compared with $66.1 million in Q4 2015. For the year ending December 31, 2016, NOI was $294.5 compared to $260.9 million for the year ending December 31, 2015.

In Q4 2016, same-store NOI, excluding revenue from lease terminations, increased 8.9 percent on a cash basis and 7.4 percent on a straight-line basis, when compared to Q4 2015. Same-store occupancy averaged 96.7 percent in Q4 2016, an increase of 170 basis points from Q4 2015. For the year ending December 31, 2016, same-store NOI, excluding revenue from lease terminations, increased 5.9 percent on both a cash and straight-line basis, when compared with the year ending December 31, 2015. Same-store occupancy averaged 96.8 percent for the full-year 2016, an increase of 180 basis points over the full-year 2015.

Investment Activity
Acquisitions
Since September 30, 2016, DCT Industrial acquired four buildings for $41.7 million. Totaling 351,000 square feet, these buildings were 100.0 percent occupied at the time of closing. The Company expects a year-one weighted-average cash yield of 5.5 percent and anticipates a weighted-average stabilized cash yield of 6.2 percent on the acquired assets.

The table below summarizes acquisitions since September 30, 2016:
Market
Submarket
Square Feet
Occupancy
at Closing
Closed
Anticipated
Yield1
Northern California
880 Corridor
66,000
100.0%
Oct-16
7.5%
Chicago
I-55 Corridor
45,000
100.0%
Oct-16
6.1%
Denver
Northeast
146,000
100.0%2
Nov-16
5.9%
Chicago
North DuPage
94,000
100.0%
Dec-16
4.3%
Total/Weighted Average
 
351,000
100.0%
 
6.2%

1 Anticipated yield represents year-one cash yield for stabilized acquisitions and projected stabilized cash yield for value-add acquisitions.
2 Property has known year-one move-out, anticipated yield reflects projected releasing of this space.

Development and Redevelopment
Since September 30, 2016, DCT Industrial stabilized 877,000 square feet of development and redevelopment at an anticipated weighted-average yield of 7.4 percent and an investment of approximately $79.0 million. The Company also commenced construction on 1.3 million square feet and purchased 65.4 acres for the future development of 1.2 million square feet.


2



Highlights since DCT Industrial’s Q3 2016 Earnings Release:
Completed and stabilized 22290 Hathaway Avenue, a 297,000 square foot redevelopment located in the Hayward submarket of Northern California.
Executed a 116,000 square foot lease for DCT Commerce Center Building C, bringing the 136,000 square foot building, located in the Airport West submarket of Miami, to 85.6 percent leased.
Acquired 53.3 acres in the Fife/Tacoma submarket of Seattle to develop DCT Blair Logistics Center, a two-building development totaling 972,000 square feet.
Acquired 8.3 acres in the I-55 Corridor submarket of Chicago and commenced construction of DCT Greenwood, a 140,000 square foot distribution building. Construction is scheduled to be complete in Q4 2017.
Acquired 3.8 acres in the Southwest Broward County submarket of Miami, through a 90 percent-owned joint venture, to develop Seneca Commerce Center Building IV, a 62,000 square foot distribution building. The building is located in DCT Industrial’s Seneca Commerce Center development project, a five-building industrial park that will total 719,000 square feet. The Company also commenced construction on Building I in the development, a 222,000 square foot building scheduled to be complete in Q3 2017.
Commenced construction of SCLA Building 18, a 370,000 square foot building located in Victorville, CA, which is owned by an unconsolidated joint venture.3 The building is 42.0 percent pre-leased with construction scheduled to be complete in Q3 2017.
Commenced construction of DCT Miller Road, a 270,000 square foot building located in the Northwest submarket of Dallas. Construction is scheduled to be complete in Q3 2017.
Commenced construction of DCT Commerce Center Building E, a 162,000 square foot building located in the Airport West submarket of Miami. The building is 82.6 percent pre-leased with construction scheduled to be complete in Q4 2017.
Commenced construction of DCT DFW Trade Center, a 112,000 square foot building located in the DFW Airport submarket of Dallas. Construction is scheduled to be complete in Q3 2017.
3 DCT Industrial does not control this unconsolidated joint venture.

Dispositions
Since September 30, 2016, DCT Industrial sold four buildings totaling 925,000 square feet for total gross proceeds of $20.1 million with an expected year-one weighted-average cash yield of 6.9 percent.

The table below summarizes dispositions since September 30, 2016:
Market
 
Submarket
 
Square Feet
 
 
Occupancy
 
 
Closed
Indianapolis (3 buildings)
 
East County
 
 
823,000
 
 
 
47.7
%
 
Nov-16
Dallas
 
Northeast
 
 
102,000
 
  
 
100.0
%
 
Dec-16
Total/Weighted Average
 
 
 
 
925,000
 
 
 
53.5
%
 
 

Capital Markets
Since September 30, 2016, DCT Industrial raised $37.1 million in net proceeds from the sale of common stock through its “at the market” equity offering. The Company issued approximately 796,000 shares at a weighted-average price of $47.17 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, payable on April 12, 2017 to stockholders of record as of March 31, 2017.



3


Guidance
The Company’s guidance for 2017 Net Earnings (EPS) is between $0.46 and $0.56 per diluted share.

The Company’s 2017 FFO guidance, as adjusted, is between $2.32 and $2.42 per diluted share.

The Company’s guidance excludes any potential non-cash interest expense related to hedge ineffectiveness and gains related to future dispositions.

For additional details, assumptions and definitions related to the Company’s 2017 guidance, please refer to page 8 in DCT Industrial’s Q4 2016 supplemental reporting package.

Conference Call Information
DCT Industrial will host a conference call to discuss Q4 and full-year 2016 results on Friday, February 3, 2017 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 Wednesday, May 3, 2017 and can be accessed by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 10098822. 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 February 3, 2018.

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 December 31, 2016, the Company owned interests in approximately 74.0 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)

 
 
December 31, 2016
 
December 31, 2015
ASSETS
 
(unaudited)
 
 
Land
 
$
1,075,995

 
$
1,009,905

Buildings and improvements
 
3,202,293

 
2,886,859

Intangible lease assets
 
78,356

 
84,420

Construction in progress
 
72,829

 
159,397

Total investment in properties
 
4,429,473

 
4,140,581

Less accumulated depreciation and amortization
 
(839,773
)
 
(742,980
)
Net investment in properties
 
3,589,700

 
3,397,601

Investments in and advances to unconsolidated joint ventures
 
95,606

 
82,635

Net investment in real estate
 
3,685,306

 
3,480,236

Cash and cash equivalents
 
10,286

 
18,412

Restricted cash
 
7,346

 
31,187

Straight-line rent and other receivables, net of allowance for doubtful
   accounts of $379 and $335, respectively
 
79,889

 
60,357

Other assets, net
 
25,315

 
15,964

Assets held for sale
 

 
26,199

Total assets
 
$
3,808,142

 
$
3,632,355

 
 
 
 
 
LIABILITIES AND EQUITY
 
 

 
 

Liabilities:
 
 

 
 

Accounts payable and accrued expenses
 
$
93,097

 
$
108,788

Distributions payable
 
29,622

 
26,938

Tenant prepaids and security deposits
 
32,884

 
29,663

Other liabilities
 
37,403

 
18,398

Intangible lease liabilities, net
 
21,421

 
22,070

Line of credit
 
75,000

 
70,000

Senior unsecured notes
 
1,351,969

 
1,276,097

Mortgage notes
 
201,959

 
210,375

Liabilities related to assets held for sale
 

 
869

Total liabilities
 
1,843,355

 
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 91,516,113
   and 88,313,891 shares issued and outstanding as of December 31, 2016
   and December 31, 2015, respectively
 
915

 
883

Additional paid-in capital
 
2,884,806

 
2,766,193

Distributions in excess of earnings
 
(1,005,728
)
 
(992,010
)
Accumulated other comprehensive loss
 
(17,944
)
 
(23,082
)
Total stockholders’ equity
 
1,862,049

 
1,751,984

Noncontrolling interests
 
102,738

 
117,173

Total equity
 
1,964,787

 
1,869,157

Total liabilities and equity
 
$
3,808,142

 
$
3,632,355





5


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share information)
 
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
REVENUES:
 
(unaudited)
 
 

 
(unaudited)
 
 
Rental revenues
 
$
101,853

 
$
88,822

 
$
391,360

 
$
353,091

Institutional capital management and other fees
 
377

 
472

 
1,416

 
1,606

Total revenues
 
102,230

 
89,294

 
392,776

 
354,697

 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 

 
 

 
 
 
 
Rental expenses
 
8,967

 
8,539

 
36,797

 
35,995

Real estate taxes
 
15,291

 
14,137

 
60,020

 
56,219

Real estate related depreciation and amortization
 
41,090

 
39,134

 
161,334

 
156,010

General and administrative
 
8,290

 
9,665

 
29,280

 
34,577

Impairment losses
 

 
1,914

 

 
2,285

Casualty gain
 
(475
)
 
(414
)
 
(2,753
)
 
(414
)
Total operating expenses
 
73,163

 
72,975

 
284,678

 
284,672

Operating income
 
29,067

 
16,319

 
108,098

 
70,025

 
 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 

 
 

 
 
 
 
Development profit, net of taxes
 

 

 

 
2,627

Equity in earnings of unconsolidated joint
ventures, net
 
1,135

 
937

 
4,118

 
7,273

Gain on dispositions of real estate interests
 
6,843

 
36,785

 
49,895

 
77,871

Interest expense
 
(16,205
)
 
(13,464
)
 
(64,035
)
 
(54,055
)
Interest and other income (expense)
 
(30
)
 
31

 
551

 
(40
)
Income tax expense and other taxes
 
(81
)
 
(24
)
 
(591
)
 
(736
)
Consolidated net income
of DCT Industrial Trust Inc.
 
20,729

 
40,584

 
98,036

 
102,965

Net income attributable to noncontrolling
interests
 
(1,038
)
 
(2,035
)
 
(4,976
)
 
(8,917
)
Net income attributable to common
stockholders
 
19,691

 
38,549

 
93,060

 
94,048

Distributed and undistributed earnings allocated
to participating securities
 
(172
)
 
(168
)
 
(669
)
 
(678
)
Adjusted net income attributable
to common stockholders
 
$
19,519

 
$
38,381

 
$
92,391

 
$
93,370

 
 
 
 
 
 
 
 
 
NET EARNINGS PER COMMON SHARE:
 
 

 
 

 
 
 
 
Basic
 
$
0.21

 
$
0.44

 
$
1.03

 
$
1.06

Diluted
 
$
0.21

 
$
0.43

 
$
1.03

 
$
1.05

 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
Basic
 
91,069

 
88,241

 
89,867

 
88,182

Diluted
 
91,185

 
88,614

 
89,982

 
88,514

 
 
 
 
 
 
 
 
 
Distributions declared per common share
 
$
0.31

 
$
0.28

 
$
1.18

 
$
1.12





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 December 31,
 
For the Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Reconciliation of net income attributable to common stockholders to FFO:
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
19,691

 
$
38,549

 
$
93,060

 
$
94,048

Adjustments:
 
 
 
 
 
 
 
 
Real estate related depreciation and amortization
 
41,090

 
39,134

 
161,334

 
156,010

Equity in earnings of unconsolidated joint ventures, net
 
(1,135
)
 
(937
)
 
(4,118
)
 
(7,273
)
Equity in FFO of unconsolidated joint ventures(1)
 
2,946

 
2,478

 
10,267

 
9,902

Impairment losses on depreciable real estate
 

 
1,914

 

 
2,285

Gain on dispositions of real estate interests
 
(6,843
)
 
(36,785
)
 
(49,895
)
 
(77,871
)
Gain (loss) on dispositions of non-depreciable real estate
 
43

 
(18
)
 
43

 

Noncontrolling interest in the above adjustments
 
(1,571
)
 
(401
)
 
(5,576
)
 
(4,487
)
FFO attributable to unitholders
 
2,144

 
2,060

 
8,930

 
8,274

FFO attributable to common stockholders and unitholders – basic and diluted(2)
 
56,365

 
45,994

 
214,045

 
180,888

Adjustments:
 
 
 
 
 
 
 
 
Acquisition costs
 
524

 
4

 
1,084

 
1,943

Severance costs
 

 
3,558

 

 
3,558

Hedge ineffectiveness (non-cash)
 
(867
)
 

 
(414
)
 

FFO, as adjusted, attributable to common stockholders and unitholders – basic
and diluted
 
$
56,022

 
$
49,556

 
$
214,715

 
$
186,389

 
 
 
 
 
 
 
 
 
FFO per common share and unit – basic
 
$
0.59

 
$
0.49

 
$
2.27

 
$
1.95

FFO per common share and unit – diluted
 
$
0.59

 
$
0.49

 
$
2.27

 
$
1.94

 
 
 
 
 
 
 
 
 
FFO, as adjusted, per common share and unit – basic
 
$
0.59

 
$
0.53

 
$
2.28

 
$
2.00

FFO, as adjusted, per common share and unit – diluted
 
$
0.59

 
$
0.53

 
$
2.27

 
$
2.00

 
 
 
 
 
 
 
 
 
FFO weighted average common shares and units outstanding:
 
 
 
 
 
 
 
 
Common shares for net earnings per share
 
91,069

 
88,241

 
89,867

 
88,182

Participating securities
 
569

 
555

 
563

 
560

Units
 
3,581

 
4,136

 
3,912

 
4,227

FFO weighted average common shares, participating securities and units outstanding – basic
 
95,219

 
92,932

 
94,342

 
92,969

Dilutive common stock equivalents
 
116

 
373

 
115

 
332

FFO weighted average common shares, participating securities and units outstanding – diluted
 
95,335

 
93,305

 
94,457

 
93,301


(1) 
Equity in FFO of unconsolidated joint ventures is determined as our share of FFO from each unconsolidated joint venture. See DCT Industrial's fourth 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
 
 
2017
 
 
Low
 
High
Guidance:
 
 
 
 
Net earnings per common share-diluted (EPS)
 
 
$
0.46

 
 
 
$
0.56

 
Adjustments:
 
 
 
 
Real estate related depreciation and amortization(1)
 
1.85
 
 
 
1.85
 
 
Noncontrolling interest in adjustments
 
0.01
 
 
 
0.01
 
 
FFO, as adjusted, per common share and unit-diluted(2)
 
 
$
2.32

 
 
 
$
2.42

 
(1) 
Includes proportionate share of real estate depreciation and amortization from unconsolidated joint ventures.
(2) 
The Company’s guidance excludes potential non-cash interest expense related to hedge ineffectiveness and gains related to future dispositions.

The following table shows the calculation of our Fixed Charge Coverage Ratio for the three and twelve months ended December 31, 2016 and 2015 (unaudited, in thousands):
 
For the Three Months Ended December 31,
 
For the Twelve Months Ended December 31,
 
2016
 
2015
 
2016
 
2015
Net income attributable to common stockholders
$
19,691

 
$
38,549

 
$
93,060

 
$
94,048

Interest expense
 
16,205

 
 
13,464

 
 
64,035

 
 
54,055

Proportionate share of interest expense from unconsolidated joint ventures(1)
 
273

 
 
274

 
 
1,100

 
 
1,244

Real estate related depreciation and amortization
 
41,090

 
 
39,134

 
 
161,334

 
 
156,010

Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures(1)
 
1,205

 
 
1,102

 
 
4,500

 
 
4,739

Income tax expense and other taxes
 
81

 
 
24

 
 
591

 
 
736

Stock-based compensation(2)
 
1,542

 
 
5,063

 
 
5,695

 
 
8,945

Noncontrolling interests
 
1,038

 
 
2,035

 
 
4,976

 
 
8,917

Non-FFO gain on dispositions of real estate interests
 
(6,800
)
 
 
(36,803
)
 
 
(49,852
)
 
 
(77,871
)
Impairment losses
 

 
 
1,914

 
 

 
 
2,285

Adjusted EBITDA
$
74,325

 
$
64,756

 
$
285,439

 
$
253,108

 
 
 
 
 
 
 
 
 
 
 
 
CALCULATION OF FIXED CHARGES:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
16,205

 
$
13,464

 
$
64,035

 
$
54,055

Capitalized interest
 
2,254

 
 
3,796

 
 
9,902

 
 
15,849

Amortization of loan costs and debt premium/discount
 
(255
)
 
 
232

 
 
(942
)
 
 
508

Other non-cash interest expense
 
(156
)
 
 
(1,025
)
 
 
(3,680
)
 
 
(4,097
)
Proportionate share of interest expense from unconsolidated joint ventures(1)
 
273

 
 
274

 
 
1,100

 
 
1,244

Total fixed charges
$
18,321

 
$
16,741

 
$
70,415

 
$
67,559

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charge coverage ratio
 
4.1x

 
 
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 fourth quarter 2016 supplemental reporting package for additional information.
(2) 
Includes approximately $3.6 million of severance costs for the three and twelve months ended December 31, 2015.




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 twelve months ended December 31, 2016 and 2015 (unaudited, in thousands):
 
 
For the Three Months Ended December 31,
 
For the Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Reconciliation of net income attributable to common stockholders to NOI:
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
19,691

 
$
38,549

 
$
93,060

 
$
94,048

Net income attributable to noncontrolling interests
 
 
1,038

 
 
2,035

 
 
4,976

 
 
8,917

Income tax expense and other taxes
 
 
81

 
 
24

 
 
591

 
 
736

Interest and other (income) expense
 
 
30

 
 
(31
)
 
 
(551
)
 
 
40

Interest expense
 
 
16,205

 
 
13,464

 
 
64,035

 
 
54,055

Equity in earnings of unconsolidated joint ventures, net
 
 
(1,135
)
 
 
(937
)
 
 
(4,118
)
 
 
(7,273
)
General and administrative expense
 
 
8,290

 
 
9,665

 
 
29,280

 
 
34,577

Real estate related depreciation and amortization
 
 
41,090

 
 
39,134

 
 
161,334

 
 
156,010

Impairment losses
 
 

 
 
1,914

 
 

 
 
2,285

Development profit, net of taxes
 
 

 
 

 
 

 
 
(2,627
)
Gain on dispositions of real estate interests
 
 
(6,843
)
 
 
(36,785
)
 
 
(49,895
)
 
 
(77,871
)
Casualty gain
 
 
(475
)
 
 
(414
)
 
 
(2,753
)
 
 
(414
)
Institutional capital management and other fees
 
 
(377
)
 
 
(472
)
 
 
(1,416
)
 
 
(1,606
)
Total NOI
 
 
77,595

 
 
66,146

 
 
294,543

 
 
260,877

Less NOI – non-same store properties
 
 
(12,783
)
 
 
(5,694
)
 
 
(56,551
)
 
 
(34,550
)
Same store NOI
 
 
64,812

 
 
60,452

 
 
237,992

 
 
226,327

Less revenue from lease terminations
 
 
(8
)
 
 
(106
)
 
 
(359
)
 
 
(2,052
)
Add early termination straight-line rent adjustment
 
 
5

 
 
(1
)
 
 
167

 
 
255

Same store NOI, excluding revenue from lease terminations
 
 
64,809

 
 
60,345

 
 
237,800

 
 
224,530

Less straight-line rents, net of related bad debt expense
 
 
(1,088
)
 
 
(1,764
)
 
 
(4,398
)
 
 
(3,802
)
Less amortization of above/(below) market rents
 
 
(594
)
 
 
(636
)
 
 
(2,204
)
 
 
(2,426
)
Same store Cash NOI, excluding revenue from lease terminations
 
$
63,127

 
$
57,945

 
$
231,198

 
$
218,302


 


















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


37866747_dcti0155supplementalcovers29.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.

Fourth Quarter 2016
Supplemental Reporting Package

37866747_dctsupplemental_imageq416.jpg
Page 2


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

 

 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2016
 
2015
 
2016
 
2015
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Rental revenues
$
101,853

 
$
88,822

 
$
391,360

 
$
353,091

Institutional capital management and other fees
 
377

 
 
472

 
 
1,416

 
 
1,606

Total revenues
 
102,230

 
 
89,294

 
 
392,776

 
 
354,697

 
 
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Rental expenses
 
8,967

 
 
8,539

 
 
36,797

 
 
35,995

Real estate taxes
 
15,291

 
 
14,137

 
 
60,020

 
 
56,219

Real estate related depreciation and amortization
 
41,090

 
 
39,134

 
 
161,334

 
 
156,010

General and administrative
 
8,290

 
 
9,665

 
 
29,280

 
 
34,577

Impairment losses
 

 
 
1,914

 
 

 
 
2,285

Casualty gain
 
(475
)
 
 
(414
)
 
 
(2,753
)
 
 
(414
)
Total operating expenses
 
73,163

 
 
72,975

 
 
284,678

 
 
284,672

Operating income
 
29,067

 
 
16,319

 
 
108,098

 
 
70,025

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

 
 

 
 

 
 
2,627

Equity in earnings of unconsolidated joint ventures, net
 
1,135

 
 
937

 
 
4,118

 
 
7,273

Gain on dispositions of real estate interests
 
6,843

 
 
36,785

 
 
49,895

 
 
77,871

Interest expense
 
(16,205
)
 
 
(13,464
)
 
 
(64,035
)
 
 
(54,055
)
Interest and other income (expense)
 
(30
)
 
 
31

 
 
551

 
 
(40
)
Income tax expense and other taxes
 
(81
)
 
 
(24
)
 
 
(591
)
 
 
(736
)
Consolidated net income of DCT Industrial Trust Inc.
 
20,729

 
 
40,584

 
 
98,036

 
 
102,965

Net income attributable to noncontrolling interests
 
(1,038
)
 
 
(2,035
)
 
 
(4,976
)
 
 
(8,917
)
Net income attributable to common stockholders
 
19,691

 
 
38,549

 
 
93,060

 
 
94,048

Distributed and undistributed earnings allocated to participating securities
 
(172
)
 
 
(168
)
 
 
(669
)
 
 
(678
)
Adjusted net income attributable to common stockholders
$
19,519

 
$
38,381

 
$
92,391

 
$
93,370

 
 
 
 
 
 
 
 
 
 
 
 
NET EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.21

 
$
0.44

 
$
1.03

 
$
1.06

Diluted
$
0.21

 
$
0.43

 
$
1.03

 
$
1.05

 
 
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
91,069

 
 
88,241

 
 
89,867

 
 
88,182

Diluted
 
91,185

 
 
88,614

 
 
89,982

 
 
88,514



Fourth Quarter 2016
Supplemental Reporting Package

37866747_dctsupplemental_imageq416.jpg
Page 3


 
Consolidated Balance Sheets
(amounts in thousands)

 


 
December 31, 2016
 
December 31, 2015
ASSETS:
(unaudited)
 
 
 
Operating properties
$
4,177,642

 
$
3,791,721

Properties under development
 
161,381

 
 
242,906

Properties in pre-development
 
52,998

 
 
41,313

Properties under redevelopment
 
29,754

 
 
56,943

Land held
 
7,698

 
 
7,698

Total investment in properties
 
4,429,473

 
 
4,140,581

Less accumulated depreciation and amortization
 
(839,773
)
 
 
(742,980
)
Net investment in properties
 
3,589,700

 
 
3,397,601

Investments in and advances to unconsolidated joint ventures
 
95,606

 
 
82,635

Net investment in real estate
 
3,685,306

 
 
3,480,236

Cash and cash equivalents
 
10,286

 
 
18,412

Restricted cash
 
7,346

 
 
31,187

Straight-line rent and other receivables, net
 
79,889

 
 
60,357

Other assets, net
 
25,315

 
 
15,964

Assets held for sale
 

 
 
26,199

Total assets
$
3,808,142

 
$
3,632,355

 
 
 
 
 
 
LIABILITIES AND EQUITY:
 
 
 
 
 
Accounts payable and accrued expenses
$
93,097

 
$
108,788

Distributions payable
 
29,622

 
 
26,938

Tenant prepaids and security deposits
 
32,884

 
 
29,663

Other liabilities
 
37,403

 
 
18,398

Intangible lease liabilities, net
 
21,421

 
 
22,070

Line of credit
 
75,000

 
 
70,000

Senior unsecured notes
 
1,351,969

 
 
1,276,097

Mortgage notes
 
201,959

 
 
210,375

Liabilities related to assets held for sale
 

 
 
869

Total liabilities
 
1,843,355

 
 
1,763,198

Total stockholders’ equity
 
1,862,049

 
 
1,751,984

Noncontrolling interests
 
102,738

 
 
117,173

Total liabilities and equity
$
3,808,142

 
$
3,632,355




Fourth Quarter 2016
Supplemental Reporting Package

37866747_dctsupplemental_imageq416.jpg
Page 4


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


 
 
For the Three Months Ended December 31,
 
For the Twelve Months Ended December 31,
 
 
 
2016
 
2015
 
2016
 
2015
 
Reconciliation of net income attributable to common stockholders to FFO:
 
 
 
 
 
 
 
 
 
 
Net income attributable to common stockholders
 
$
19,691

 
$
38,549

 
$
93,060

 
$
94,048

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate related depreciation and amortization
 
 
41,090

 
 
39,134

 
 
161,334

 
 
156,010

 
Equity in earnings of unconsolidated joint ventures, net
 
 
(1,135
)
 
 
(937
)
 
 
(4,118
)
 
 
(7,273
)
 
Equity in FFO of unconsolidated joint ventures(1)
 
 
2,946

 
 
2,478

 
 
10,267

 
 
9,902

 
Impairment losses on depreciable real estate
 
 

 
 
1,914

 
 

 
 
2,285

 
Gain on dispositions of real estate interests
 
 
(6,843
)
 
 
(36,785
)
 
 
(49,895
)
 
 
(77,871
)
 
Gain (loss) on dispositions of non-depreciable real estate
 
 
43

 
 
(18
)
 
 
43

 
 

 
Noncontrolling interest in the above adjustments
 
 
(1,571
)
 
 
(401
)
 
 
(5,576
)
 
 
(4,487
)
 
FFO attributable to unitholders
 
 
2,144

 
 
2,060

 
 
8,930

 
 
8,274

 
FFO attributable to common stockholders and unitholders –
  basic and diluted(2)
 
 
56,365

 
 
45,994

 
 
214,045

 
 
180,888

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
 
 
524

 
 
4

 
 
1,084

 
 
1,943

 
Severance costs
 
 

 
 
3,558

 
 

 
 
3,558

 
Hedge ineffectiveness (non-cash)
 
 
(867
)
 
 

 
 
(414
)
 
 

 
FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted
 
$
56,022

 
$
49,556

 
$
214,715

 
$
186,389

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO per common share and unit – basic
 
$
0.59

 
$
0.49

 
$
2.27

 
$
1.95

 
FFO per common share and unit – diluted
 
$
0.59

 
$
0.49

 
$
2.27

 
$
1.94

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO, as adjusted, per common share and unit – basic
 
$
0.59

 
$
0.53

 
$
2.28

 
$
2.00

 
FFO, as adjusted, per common share and unit – diluted
 
$
0.59

 
$
0.53

 
$
2.27

 
$
2.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FFO weighted average common shares and units outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares for net earnings per share
 
 
91,069

 
 
88,241

 
 
89,867

 
 
88,182

 
Participating securities
 
 
569

 
 
555

 
 
563

 
 
560

 
Units
 
 
3,581

 
 
4,136

 
 
3,912

 
 
4,227

 
FFO weighted average common shares, participating securities and units
outstanding – basic
 
 
95,219

 
 
92,932

 
 
94,342

 
 
92,969

 
Dilutive common stock equivalents
 
 
116

 
 
373

 
 
115

 
 
332

 
FFO weighted average common shares, participating securities and units
outstanding – diluted
 
 
95,335

 
 
93,305

 
 
94,457

 
 
93,301

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of net operating income ("NOI") to FFO:
 
 
 
 
 
 
 
 
 
 
 
 
 
NOI(3)(4)
 
$
77,595

 
$
66,146

 
$
294,543

 
$
260,877

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity in FFO of unconsolidated joint ventures(1)
 
 
2,946

 
 
2,478

 
 
10,267

 
 
9,902

 
Institutional capital management and other fees
 
 
377

 
 
472

 
 
1,416

 
 
1,606

 
Gain (loss) on dispositions of non-depreciable real estate
 
 
43

 
 
(18
)
 
 
43

 
 

 
Casualty gain
 
 
475

 
 
414

 
 
2,753

 
 
414

 
Development profit, net of taxes
 
 

 
 

 
 

 
 
2,627

 
General and administrative expense
 
 
(8,290
)
 
 
(9,665
)
 
 
(29,280
)
 
 
(34,577
)
 
Interest expense
 
 
(18,459
)
 
 
(17,260
)
 
 
(73,937
)
 
 
(69,904
)
 
Capitalized interest expense
 
 
2,254

 
 
3,796

 
 
9,902

 
 
15,849

 
Interest and other income (expense)
 
 
(30
)
 
 
31

 
 
551

 
 
(40
)
 
Income tax expense and other taxes
 
 
(81
)
 
 
(24
)
 
 
(591
)
 
 
(736
)
 
FFO attributable to noncontrolling interests
 
 
(465
)
 
 
(376
)
 
 
(1,622
)
 
 
(5,130
)
 
FFO attributable to common stockholders and unitholders –
  basic and diluted(2)
 
 
56,365

 
 
45,994

 
 
214,045

 
 
180,888

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition costs
 
 
524

 
 
4

 
 
1,084

 
 
1,943

 
Severance costs
 
 

 
 
3,558

 
 

 
 
3,558

 
Hedge ineffectiveness (non-cash)
 
 
(867
)
 
 

 
 
(414
)
 
 

 
FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted
 
$
56,022

 
$
49,556

 
$
214,715

 
$
186,389

 

(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.

Fourth Quarter 2016
Supplemental Reporting Package

37866747_dctsupplemental_imageq416.jpg
Page 5


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