Colony NorthStar Announces First Quarter 2018 Financial Results
First Quarter 2018 Financial Results and Highlights
- First quarter 2018 net loss attributable to common stockholders of
$(72.7) million , or$(0.14) per share, and Core FFO of$115.1 million , or$0.20 per share - The Company’s Board of Directors declared and paid a first quarter 2018 dividend of
$0.11 per share of Class A and B common stock - During the first quarter 2018, the Company raised approximately
$2.0 billion of third-party capital (including amounts representing its share related to affiliates) from institutional clients- The Company, in partnership with
Digital Bridge , established a digital real estate infrastructure vehicle with$1.95 billion of capital raised as ofMarch 31, 2018 , inclusive of a$162 million capital commitment by certain subsidiaries of the Company
- The Company, in partnership with
- During the first quarter 2018, the Company completed
$60 million of Other Equity and Debt asset monetizations - During the first quarter 2018, the Company invested and agreed to invest
$113 million in Other Equity and Debt primarily with an objective of creating investment management structures around these investments - The Company repurchased approximately 48.2 million shares of its Class A common stock at an average price of
$5.79 per share, or$279 million , year-to-date 2018 - Listed
Colony NorthStar Credit Real Estate, Inc. (NYSE: CLNC), one of the largest commercial real estate credit REITs, creating a new permanent capital vehicle externally managed by the Company - Subsequent to the first quarter 2018:
- The Company completed the combination of its broker-dealer business with S2K Financial creating an enhanced retail investor distribution platform, Colony S2K
- The Company has approximately
$1.1 billion of liquidity through cash-on-hand and availability under its revolving credit facility
For more information and a reconciliation of net income/(loss) to common stockholders to Core FFO, NOI and/or EBITDA, please refer to the non-GAAP financial measure definitions and tables at the end of this press release.
"After resetting our baseline at the beginning of this year, we are pleased to report Colony NorthStar’s first quarter results and concurrent strategic progress,” said
First Quarter 2018 Operating Results and Investment Activity by Segment
As of
During the first quarter 2018, this segment’s net loss attributable to common stockholders was
The following table presents NOI and certain operating metrics by property types in the Company’s
Consolidated | CLNS OP | Same Store | |||||||||||||||||||||
NOI | Share NOI(1) | Consolidated NOI | Occupancy %(2) | TTM Lease Coverage(3) | |||||||||||||||||||
($ In millions) | Q1 2018 | Q1 2018 | Q1 2018 | Q4 2017 | Q1 2018 | Q4 2017 | |
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$ | 17.5 | $ | 12.6 | $ | 17.5 | $ | 15.8 | 86.4 | % | 87.4 | % | N/A | N/A | |||||||||
Medical Office Buildings | 16.6 | 11.5 | 16.5 | 13.4 | 83.2 | % | 83.4 | % | N/A | N/A | |||||||||||||
Triple- |
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15.5 | 11.0 | 15.5 | 15.2 | 83.2 | % | 82.9 | % | 1.4x | 1.4x | |||||||||||||
Skilled Nursing Facilities | 26.8 | 19.3 | 26.9 | 26.8 | 82.7 | % | 82.6 | % | 1.2x | 1.2x | |||||||||||||
Hospitals | 4.9 | 3.4 | 4.9 | 5.2 | 55.3 | % | 58.4 | % | 3.5x | 2.5x | |||||||||||||
Healthcare Total/W.A. | $ | 81.3 | $ | 57.8 | $ | 81.3 | $ | 76.4 | 82.8 | % | 83.1 | % | 1.5x | 1.4x |
___________________________________________________ | ||
(1) | CLNS OP Share NOI represents first quarter 2018 Consolidated NOI multiplied by CLNS OP’s ownership interest as of |
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(2) | Occupancy % for |
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(3) | Represents the ratio of the tenant’s/operator’s EBITDAR to cash rent payable to the Company’s |
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Asset Dispositions and Financing
During the first quarter 2018, the consolidated healthcare portfolio disposed of three non-core skilled nursing facilities for an aggregate
As of
During the first quarter 2018, this segment’s net income attributable to common stockholders was
The following table presents NOI and certain operating metrics in the Company’s
Consolidated | CLNS OP | Same Store | |||||||||||||||||
NOI | Share NOI (1) | Consolidated NOI | Leased %(2) | ||||||||||||||||
($ In millions) | Q1 2018 | Q1 2018 | Q1 2018 | Q4 2017 | Q1 2018 | Q4 2017 | |||||||||||||
Industrial | $ | 44.6 | $ | 17.9 | $ | 35.3 | $ | 35.7 | 95.1 | % | 95.7 | % |
___________________________________________________ | ||
(1) | CLNS OP Share NOI represents first quarter 2018 Consolidated NOI multiplied by CLNS OP’s ownership interest as of |
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(2) | Leased % represents the last day of the presented quarter. | |
Asset Acquisitions and Dispositions
During the first quarter 2018, the consolidated industrial portfolio acquired ten industrial buildings totaling approximately 2.4 million square feet and land for development for approximately
Subsequent to the first quarter 2018, the consolidated industrial portfolio acquired four industrial buildings totaling approximately 1.0 million square feet for approximately
As of
During the first quarter 2018, this segment’s net loss attributable to common stockholders was
The following table presents EBITDA and certain operating metrics by brands in the Company’s
Same Store | |||||||||||||||||||||||||||||||
Consolidated | CLNS OP Share | Avg. Daily Rate | RevPAR(3) | ||||||||||||||||||||||||||||
EBITDA(1) |
EBITDA(2) |
Consolidated |
Occupancy %(4) | (In dollars)(4) | (In dollars)(4) | ||||||||||||||||||||||||||
($ In millions) | Q1 2018 | Q1 2018 | Q1 2018 | Q1 2017 | Q1 2018 | Q1 2017 | Q1 2018 | Q1 2017 | Q1 2018 | Q1 2017 | |||||||||||||||||||||
Marriott | $ | 46.8 | $ | 44.2 | $ | 46.8 | $ | 48.1 | 69.3 | % | 68.8 | % | $ | 129 | $ | 129 | $ | 90 | $ | 89 | |||||||||||
Hilton | 8.9 | 8.3 | 8.9 | 9.7 | 73.8 | % | 72.8 | % | 124 | 123 | 91 | 90 | |||||||||||||||||||
Other | 3.5 | 3.3 | 3.5 | 3.4 | 78.2 | % | 72.5 | % | 127 | 129 | 99 | 93 | |||||||||||||||||||
Total/W.A. | $ | 59.2 | $ | 55.8 | $ | 59.2 | $ | 61.2 | 70.5 | % | 69.7 | % | $ | 128 | $ | 128 | $ | 90 | $ | 89 |
___________________________________________________ | ||
(1) | Q1 2018 Consolidated EBITDA excludes a FF&E reserve contribution amount of |
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(2) | CLNS OP Share EBITDA represents first quarter 2018 Consolidated EBITDA multiplied by CLNS OP’s ownership interest as of |
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(3) | RevPAR, or revenue per available room, represents a hotel's total guestroom revenue divided by the room count and the number of days in the period being measured. | |
(4) | For each metric, data represents average during the presented quarter. | |
On
Other Equity and Debt
The Company owns a diversified group of strategic and non-strategic real estate and real estate-related debt and equity investments. Strategic investments include our 10% interest in
Other Equity and Debt Segment Asset Acquisitions and Dispositions
During the first quarter 2018, the Company invested and agreed to invest approximately
As of
CLNS OP Share | |||||||
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Undepreciated Carrying Value(1) | |||||||
($ In millions) | Assets | Equity | |||||
Strategic: |
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GP co-investments | $ | 293 | $ | 254 | |||
Interest in NRE | 74 | 74 | |||||
Strategic Subtotal | 367 | 328 | |||||
Non-Strategic: |
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Other Real Estate Equity & Albertsons | 2,039 | 1,104 | |||||
Real Estate Debt | 1,032 | 761 | |||||
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583 | 239 | |||||
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304 | 304 | |||||
Non-Strategic Subtotal | 3,958 | 2,408 | |||||
Total Other Equity and Debt | $ | 4,325 | $ | 2,736 |
___________________________________________________ | ||
(1) | Includes investment-level cash and net other assets. | |
Investment Management
The Company’s Investment Management segment includes the business and operations of managing capital on behalf of third-party investors through closed and open-end private funds, non-traded and traded real estate investment trusts and registered investment companies. As of
During the first quarter 2018, the Company raised
Digital Real Estate Infrastructure
During the first quarter 2018, the Company, in partnership with
During the first quarter 2018, the Company’s interest in
Combination of
Subsequent to the first quarter 2018, the Company completed the previously announced combination of
Assets Under Management (“AUM”)
As of
($ In billions) | Amount |
% of |
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Balance Sheet (CLNS OP Share): | |||||||
Healthcare | $ | 4.1 | 9.5 | % | |||
Industrial | 1.3 | 3.0 | % | ||||
Hospitality | 3.9 | 9.3 | % | ||||
Other Equity and Debt | 4.3 | 10.0 | % | ||||
CLNC: Investments contributed to CLNC(1) | 1.8 | 4.2 | % | ||||
Balance Sheet Subtotal | 15.4 | 36.0 | % | ||||
Investment Management: | |||||||
Institutional Funds | 9.8 | 22.8 | % | ||||
Retail Companies | 3.7 | 8.6 | % | ||||
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3.1 | 7.2 | % | ||||
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2.2 | 5.1 | % | ||||
Non-Wholly Owned REIM Platforms(3) | 8.7 | 20.3 | % | ||||
Investment Management Subtotal | 27.5 | 64.0 | % | ||||
Grand Total | $ | 42.9 | 100.0 | % |
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(1) | Represents the Company’s 37% ownership share of CLNC’s |
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(2) | Represents 3rd party 63% ownership share of CLNC’s |
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(3) | REIM: |
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Liquidity and Financing
As of
Common Stock and Operating Company Units
As of
On
During the first quarter 2018, the Company repurchased approximately 42.3 million shares of its Class A common stock at an average price of
Common and Preferred Dividends
On
On
Non-GAAP Financial Measures and Definitions
Assets Under Management (“AUM”)
Assets for which the Company and its affiliates provide investment management services, including assets for which the Company may or may not charge management fees and/or performance allocations. AUM is based on reported gross undepreciated carrying value of managed investments as reported by each underlying vehicle at
CLNS OP
The operating partnership through which the Company conducts all of its activities and holds substantially all of its assets and liabilities. CLNS OP share excludes noncontrolling interests in investment entities.
Fee-Earning Equity Under Management (“FEEUM”)
Equity for which the Company and its affiliates provides investment management services and derives management fees and/or performance allocations. FEEUM generally represents a) the basis used to derive fees, which may be based on invested equity, stockholders’ equity, or fair value pursuant to the terms of each underlying investment management agreement and b) the Company’s pro-rata share of fee bearing equity of each affiliate as presented and calculated by the affiliate. Affiliates include the co-sponsored digital real estate infrastructure vehicle,
Funds From Operations (“FFO”) and Core Funds From Operations (“Core FFO”)
The Company calculates funds from operations ("FFO") in accordance with standards established by the
The Company computes core funds from operations ("Core FFO") by adjusting FFO for the following items, including the Company’s share of these items recognized by its unconsolidated partnerships and joint ventures: (i) gains and losses from sales of depreciable real estate within the Other Equity and Debt segment, net of depreciation, amortization and impairment previously adjusted for FFO; (ii) gains and losses from sales of businesses within the Investment Management segment and impairment write-downs associated with the Investment Management segment; (iii) equity-based compensation expense; (iv) effects of straight-line rent revenue and straight-line rent expense on ground leases; (v) amortization of acquired above- and below-market lease values; (vi) amortization of deferred financing costs and debt premiums and discounts; (vii) unrealized fair value gains or losses and foreign currency remeasurements; (viii) acquisition-related expenses, merger and integration costs; (ix) amortization and impairment of finite-lived intangibles related to investment management contracts and customer relationships; (x) gain on remeasurement of consolidated investment entities and the effect of amortization thereof; (xi) non-real estate depreciation and amortization; (xii) change in fair value of contingent consideration; and (xiii) tax effect on certain of the foregoing adjustments. Beginning with the first quarter of 2018, the Company’s Core FFO from its interest in
FFO and Core FFO should not be considered alternatives to GAAP net income as indications of operating performance, or to cash flows from operating activities as measures of liquidity, nor as indications of the availability of funds for our cash needs, including funds available to make distributions. FFO and Core FFO should not be used as supplements to or substitutes for cash flow from operating activities computed in accordance with GAAP. The Company’s calculations of FFO and Core FFO may differ from methodologies utilized by other REITs for similar performance measurements, and, accordingly, may not be comparable to those of other REITs.
The Company uses FFO and Core FFO as supplemental performance measures because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that captures trends in occupancy rates, rental rates, and operating costs. The Company also believes that, as widely recognized measures of the performance of REITs, FFO and Core FFO will be used by investors as a basis to compare its operating performance with that of other REITs. However, because FFO and Core FFO exclude depreciation and amortization and capture neither the changes in the value of the Company’s properties that resulted from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of its properties, all of which have real economic effect and could materially impact the Company’s results from operations, the utility of FFO and Core FFO as measures of the Company’s performance is limited. FFO and Core FFO should be considered only as supplements to GAAP net income as a measure of the Company’s performance.
Net Operating Income (“NOI”) / Earnings Before Interest, Tax, Depreciation and Amortization (“EBITDA”)
NOI for healthcare and industrial segments represents total property and related income less property operating expenses, adjusted for the effects of (i) straight-line rental income adjustments; (ii) amortization of acquired above- and below-market lease adjustments to rental income; and (iii) other items such as adjustments for the Company’s share of NOI of unconsolidated ventures.
EBITDA for the hospitality real estate segment represents net income from continuing operations of that segment excluding the impact of interest expense, income tax expense or benefit, and depreciation and amortization. The Company believes that NOI and EBITDA are useful measures of operating performance of its respective real estate portfolios as they are more closely linked to the direct results of operations at the property level. NOI also reflects actual rents received during the period after adjusting for the effects of straight-line rents and amortization of above- and below- market leases; therefore, a comparison of NOI across periods better reflects the trend in occupancy rates and rental rates of the Company’s properties.
NOI and EBITDA exclude historical cost depreciation and amortization, which are based on different useful life estimates depending on the age of the properties, as well as adjust for the effects of real estate impairment and gains or losses on sales of depreciated properties, which eliminate differences arising from investment and disposition decisions. This allows for comparability of operating performance of the Company’s properties period over period and also against the results of other equity REITs in the same sectors. Additionally, by excluding corporate level expenses or benefits such as interest expense, any gain or loss on early extinguishment of debt and income taxes, which are incurred by the parent entity and are not directly linked to the operating performance of the Company’s properties, NOI and EBITDA provide a measure of operating performance independent of the Company’s capital structure and indebtedness.
However, the exclusion of these items as well as others, such as capital expenditures and leasing costs, which are necessary to maintain the operating performance of the Company’s properties, and transaction costs and administrative costs, may limit the usefulness of NOI and EBITDA. NOI may fail to capture significant trends in these components of
NOI should not be considered as an alternative to net income (loss), determined in accordance with
Earnings Before Interest, Tax, Depreciation, Amortization and Rent (“EBITDAR”)
Represents earnings before interest, taxes, depreciation, amortization and rent for facilities accruing to the tenant/operator of the property (not the Company) for the period presented. The Company uses EBITDAR in determining TTM Lease Coverage for triple-net lease properties in its
TTM Lease Coverage
Represents the ratio of EBITDAR to recognized cash rent for owned facilities on a trailing twelve month basis. TTM Lease Coverage is a supplemental measure of a tenant’s/operator’s ability to meet their cash rent obligations to the Company. However, its usefulness is limited by, among other things, the same factors that limit the usefulness of EBITDAR.
The information related to the Company’s tenants/operators that is provided in this press release has been provided by, or derived from information provided by, such tenants/operators. The Company has not independently verified this information and has no reason to believe that such information is inaccurate in any material respect. The Company is providing this data for informational purposes only.
First Quarter 2018 Conference Call
The Company will conduct a conference call to discuss the financial results on
For those unable to participate during the live call, a replay will be available starting
Supplemental Financial Report
A First Quarter 2018 Supplemental Financial Report is available on the Company’s website at www.clns.com. This information has also been furnished to the
About
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, and may cause the Company’s actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, our failure to achieve anticipated synergies in and benefits of the completed merger among
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CONSOLIDATED BALANCE SHEETS | |||||||||
(In thousands, except per share data) | |||||||||
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Assets | |||||||||
Cash and cash equivalents | $ | 484,827 | $ | 921,822 | |||||
Restricted cash | 453,366 | 471,078 | |||||||
Real estate, net | 14,100,874 | 14,464,258 | |||||||
Loans receivable, net ( |
1,972,179 | 3,223,762 | |||||||
Investments in unconsolidated ventures ( |
2,549,630 | 1,655,239 | |||||||
Securities, at fair value | 288,900 | 383,942 | |||||||
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1,534,561 | 1,534,561 | |||||||
Deferred leasing costs and intangible assets, net | 691,896 | 852,872 | |||||||
Assets held for sale ( |
1,002,838 | 781,630 | |||||||
Other assets ( |
441,839 | 444,968 | |||||||
Due from affiliates | 43,582 | 51,518 | |||||||
Total assets | $ | 23,564,492 | $ | 24,785,650 | |||||
Liabilities | |||||||||
Debt, net ( |
$ | 10,495,429 | $ | 10,827,810 | |||||
Accrued and other liabilities ( |
791,439 | 898,161 | |||||||
Intangible liabilities, net | 187,864 | 191,109 | |||||||
Liabilities related to assets held for sale | 273,778 | 273,298 | |||||||
Due to affiliates ( |
13,105 | 23,534 | |||||||
Dividends and distributions payable | 90,791 | 188,202 | |||||||
Total liabilities | 11,852,406 | 12,402,114 | |||||||
Commitments and contingencies | |||||||||
Redeemable noncontrolling interests | 31,648 | 34,144 | |||||||
Equity | |||||||||
Stockholders’ equity: | |||||||||
Preferred stock, |
1,606,966 | 1,606,966 | |||||||
Common stock, |
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Class A, 949,000 shares authorized; 500,643 and 542,599 shares issued and outstanding | 5,007 | 5,426 | |||||||
Class B, 1,000 shares authorized; 736 shares issued and outstanding | 7 | 7 | |||||||
Additional paid-in capital | 7,634,952 | 7,913,622 | |||||||
Distributions in excess of earnings | (1,294,996 | ) | (1,165,412 | ) | |||||
Accumulated other comprehensive income | 49,037 | 47,316 | |||||||
Total stockholders’ equity | 8,000,973 | 8,407,925 | |||||||
Noncontrolling interests in investment entities | 3,267,834 | 3,539,072 | |||||||
Noncontrolling interests in |
411,631 | 402,395 | |||||||
Total equity | 11,680,438 | 12,349,392 | |||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 23,564,492 | $ | 24,785,650 | |||||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(In thousands, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended |
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2018 | 2017 | ||||||||
Revenues | |||||||||
Property operating income | $ | 554,730 | $ | 426,854 | |||||
Interest income | 63,854 | 115,544 | |||||||
Fee income | 36,842 | 53,250 | |||||||
Other income | 11,238 | 11,517 | |||||||
Total revenues | 666,664 | 607,165 | |||||||
Expenses | |||||||||
Property operating expense | 305,770 | 216,349 | |||||||
Interest expense | 148,889 | 126,278 | |||||||
Investment, servicing and commission expense | 18,653 | 11,807 | |||||||
Transaction costs | 716 | 87,340 | |||||||
Depreciation and amortization | 144,705 | 137,420 | |||||||
Provision for loan loss | 5,375 | 6,724 | |||||||
Impairment loss | 153,398 | 8,519 | |||||||
Compensation expense | 49,484 | 91,818 | |||||||
Administrative expenses | 24,863 | 25,914 | |||||||
Total expenses | 851,853 | 712,169 | |||||||
Other income | |||||||||
Gain on sale of real estate assets | 18,444 | 8,970 | |||||||
Other gain, net | 75,256 | 25,381 | |||||||
Earnings from investments in unconsolidated ventures | 32,265 | 113,992 | |||||||
Income (loss) before income taxes | (59,224 | ) | 43,339 | ||||||
Income tax benefit (expense) | 32,808 | (3,709 | ) | ||||||
Net income (loss) from continuing operations | (26,416 | ) | 39,630 | ||||||
Income from discontinued operations | 117 | 12,560 | |||||||
Net income (loss) | (26,299 | ) | 52,190 | ||||||
Net income (loss) attributable to noncontrolling interests: | |||||||||
Redeemable noncontrolling interests | (696 | ) | 617 | ||||||
Investment entities | 20,102 | 27,059 | |||||||
Operating Company | (4,378 | ) | (1,083 | ) | |||||
Net income (loss) attributable to |
(41,327 | ) | 25,597 | ||||||
Preferred stock dividends | 31,387 | 30,813 | |||||||
Net loss attributable to common stockholders | $ | (72,714 | ) | $ | (5,216 | ) | |||
Basic loss per share (1) | |||||||||
Loss from continuing operations per basic common share | $ | (0.14 | ) | $ | (0.03 | ) | |||
Net loss per basic common share | $ | (0.14 | ) | $ | (0.01 | ) | |||
Diluted earnings per share (1) | |||||||||
Loss from continuing operations per diluted common share | $ | (0.14 | ) | $ | (0.03 | ) | |||
Net loss per diluted common share | $ | (0.14 | ) | $ | (0.01 | ) | |||
Weighted average number of shares (1) | |||||||||
Basic | 530,680 | 506,405 | |||||||
Diluted | 530,680 | 506,405 |
__________ | ||
(1) | As a result of the Merger, each outstanding share of common stock of |
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FUNDS FROM OPERATIONS AND CORE FUNDS FROM OPERATIONS | ||||
(In thousands, except per share data) | ||||
(Unaudited) | ||||
Three Months Ended |
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Net loss attributable to common stockholders | $ | (72,714 | ) | |
Adjustments for FFO attributable to common interests in |
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Net loss attributable to noncontrolling common interests in |
(4,378 | ) | ||
Real estate depreciation and amortization | 143,906 | |||
Impairment write-downs associated with depreciable real estate | 14,940 | |||
Gain from sales of depreciable real estate | (22,925 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (40,763 | ) | ||
FFO attributable to common interests in |
18,066 | |||
Additional adjustments for Core FFO attributable to common interests in |
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Gains and losses from sales of depreciable real estate within the Other Equity and Debt segment, net of depreciation, amortization and impairment previously adjusted for FFO (1) | 13,142 | |||
Gains and losses from sales of businesses within the Investment Management segment and impairment write-downs associated with the Investment Management segment | 5,431 | |||
Equity-based compensation expense (2) | 12,470 | |||
Straight-line rent revenue and straight-line rent expense on ground leases | (5,268 | ) | ||
Change in fair value of contingent consideration | (10,480 | ) | ||
Amortization of acquired above- and below-market lease values | (1,976 | ) | ||
Amortization of deferred financing costs and debt premiums and discounts | 20,623 | |||
Unrealized fair value gains and foreign currency remeasurements | (55,603 | ) | ||
Acquisition and merger-related transaction costs | 11,812 | |||
Merger integration costs (3) | 6,129 | |||
Amortization and impairment of investment management intangibles | 147,912 | |||
Non-real estate depreciation and amortization | 2,277 | |||
Gain on remeasurement of consolidated investment entities and the effect of amortization thereof | 2,848 | |||
Deferred tax benefit, net | (39,901 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (12,403 | ) | ||
Core FFO attributable to common interests in |
$ | 115,079 | ||
FFO per common share / common OP unit (4) | $ | 0.03 | ||
FFO per common share / common OP unit—diluted (5) | $ | 0.03 | ||
Core FFO per common share / common OP unit (4) | $ | 0.20 | ||
Core FFO per common share / common OP unit—diluted (5) | $ | 0.20 | ||
Weighted average number of common OP units outstanding used for FFO and Core FFO per common share and OP unit (4) | 567,432 | |||
Weighted average number of common OP units outstanding used for FFO per common share and OP unit—diluted (4)(5) | 568,095 | |||
Weighted average number of common OP units outstanding used for Core FFO per common share and OP unit—diluted (4)(5) | 593,513 |
__________ | ||
(1) | Net of |
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(2) | Includes |
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(3) | Merger integration costs represent costs and charges incurred during the integration of Colony, NSAM and NRF. These integration costs are not reflective of the Company’s core operating performance and the Company does not expect to incur these costs subsequent to the completion of the merger integration. The majority of integration costs consist of severance, employee costs of those separated or scheduled for separation, system integration and lease terminations. | |
(4) | Calculated based on weighted average shares outstanding including participating securities and assuming the exchange of all common OP units outstanding for common shares. As a result of the Merger, each outstanding share of common stock of |
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(5) | For the three months ended |
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RECONCILIATION OF NET INCOME (LOSS) TO NOI/EBITDA
The following tables present: (1) a reconciliation of property and other related revenues less property operating expenses for properties in our Healthcare, Industrial, and Hospitality segments to NOI or EBITDA and (2) a reconciliation of such segments' net income (loss) for the three months ended
NOI and EBITDA were determined as follows:
Three Months Ended |
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(In thousands) |
Healthcare | Industrial | Hospitality | ||||
Total revenues | |
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Straight-line rent revenue and amortization of above- and below-market lease intangibles | (4,319) | (2,297) | (7) | ||||
Interest income | — | (532) | — | ||||
Other income | — | — | (488) | ||||
Property operating expenses (1) | (66,966) | (20,811) | (136,095) | ||||
Compensation expense (1) | — | (480) | — | ||||
NOI or EBITDA | |
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_________ | ||
(1) | For healthcare and hospitality, property operating expenses includes property management fees paid to third parties. For industrial, there are direct costs of managing the portfolio which are included in compensation expense. | |
The following table presents a reconciliation of net income (loss) from continuing operations of the healthcare, industrial and hospitality segments to NOI or EBITDA of the respective segments.
Three Months Ended |
|||||||||||||
(In thousands) |
Healthcare | Industrial | Hospitality | ||||||||||
Net income (loss) from continuing operations | $ | (12,534 | ) | $ | 6,321 | $ | (11,886 | ) | |||||
Adjustments: | |||||||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (4,319 | ) | (2,297 | ) | (7 | ) | |||||||
Interest income | — | (532 | ) | — | |||||||||
Interest expense | 50,941 | 10,190 | 34,361 | ||||||||||
Transaction, investment and servicing costs | 2,310 | 74 | 1,542 | ||||||||||
Depreciation and amortization | 41,127 | 29,945 | 35,457 | ||||||||||
Impairment loss | 3,780 | — | — | ||||||||||
Compensation and administrative expense | 1,933 | 3,222 | 2,017 | ||||||||||
Gain on sale of real estate | — | (2,293 | ) | — | |||||||||
Other (gain) loss, net | (2,926 | ) | — | (323 | ) | ||||||||
Other income | — | — | (488 | ) | |||||||||
Income tax benefit | 998 | 3 | (1,481 | ) | |||||||||
NOI or EBITDA | $ | 81,310 | $ | 44,633 | $ | 59,192 | |||||||
The following table summarizes Q1 2018 net income (loss) from continuing operations by segment:
(In thousands) |
Net income (Loss) |
||||
Healthcare | $ | (12,534 | ) | ||
Industrial | 6,321 | ||||
Hospitality | (11,886 | ) | |||
CLNC | (3,654 | ) | |||
Other Equity and Debt | 68,431 | ||||
Investment Management | (84,624 | ) | |||
Amounts Not Allocated to Segments | 11,530 | ||||
Total Consolidated | $ | (26,416 | ) | ||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180510005455/en/
Investor Contacts:
Darren J. Tangen
Executive Vice President and Chief Financial Officer
310-552-7230
or
Addo Investor Relations
Source:
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