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Debt & Equity

Columbia Property Trust positioned for growth

Columbia Property Trust, Inc. reported financial results for the second quarter ended June 30, 2015.

For the second quarter of 2015, Normalized Funds from Operations (FFO) per diluted share was $0.53, Adjusted Funds from Operations (AFFO) per diluted share was $0.37, and Net Income Attributable to Common Stockholders per diluted share was $0.07

The company expanded our presence in Midtown Manhattan with the agreement in July 2015 to acquire 229 West 43rd Street for $516 million.

CPT disposed of 11 non-core assets in July for $433 million to complete the majority of 2015 dispositions previously identified.

In June and July, it repaid $333 million of secured debt and recast $950 million of unsecured bank debt with longer maturities and lower borrowing costs

CPT completed 165,000 sf of leasing during the second quarter, including 105,000 s/f of renewals, with a 22.5% increase in rental rates on a cash basis and a 35.8% increase in rental rates on a GAAP basis

“We’ve continued to enhance our portfolio by acquiring key assets in our target markets, selling buildings in non-core markets, and leasing proactively across the portfolio,” noted Nelson Mills, President and CEO of Columbia Property Trust.

“We’ve established a high quality portfolio that is well leased overall, yet positioned for strong growth over the next several years.

“We’re very pleased with the timing and pricing we achieved on the recent disposition of 11 non-core assets, another big step forward in the execution of our strategy.

“The agreement earlier this month to acquire 229 West 43rd Street further advances our high-barrier market presence and positions us to compete in New York with a mix of value-add and stable properties.

“Our largest markets are now San Francisco, New York and Washington, D.C. We have strong income growth opportunities in each of thesecities as well as in other key markets. Our team is working diligently and creatively to capture thesevalue-creation opportunities across the portfolio.”

The acquisition of the office portion, 481,110-square-feet, of 229 West 43rd Street, a 16-story, 731,596 s/f  Class-A office building in Midtown Manhattan, is expected to have first-year net operating income (NOI) of approximately $22.3 million and significantly increase the percentage of annualized lease revenues concentrated in CBD and high-barrier markets and multi-tenant properties.

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