FORM 8-K |
COLONY NORTHSTAR, INC. (Exact Name of Registrant as Specified in Its Charter) |
Maryland | 001-37980 | 46-4591526 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
515 S. Flower Street, 44th Floor Los Angeles, California | 90071 | |||||
(Address of principal executive offices) | (Zip Code) |
¨ | 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-(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
Emerging growth company ¨ | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description | |
99.1 | Press Release dated August 8, 2017 | |
99.2 | Supplemental Financial Disclosure Presentation for the quarter ended June 30, 2017 |
Date: | August 8, 2017 | COLONY NORTHSTAR, INC. | |
By: | /s/ Darren J. Tangen | ||
Darren J. Tangen | |||
Chief Financial Officer and Treasurer |
Exhibit No. | Description | |
99.1 | Press Release dated August 8, 2017 | |
99.2 | Supplemental Financial Disclosure Presentation for the quarter ended June 30, 2017 |
• | Net income attributable to common stockholders of $38.6 million, or $0.07 per basic share |
• | Core FFO of $203.6 million, or $0.35 per basic share, and FFO of $130.0 million, or $0.22 per basic share |
• | Merger integration substantially complete and approximately 100% of the originally identified $80 million annualized cash synergies target and 110% of the $115 million annualized total synergies target, which includes stock compensation savings, achieved to date on a run rate basis |
• | Declared and paid a second quarter 2017 dividend of $0.27 per share of Class A and B common stock |
◦ | Subsequent to the second quarter 2017, declared a third quarter dividend of $0.27 per share of Class A and B common stock |
• | The Company and its share of affiliates raised approximately $285 million of third-party capital from institutional clients and retail investors for an aggregate $1.4 billion during the first half of 2017 |
• | The Company completed year-to-date asset monetizations totaling $3.6 billion of gross asset value, which includes $384 million in the second quarter primarily from selling the remainder of the Company’s interest in Colony Starwood Homes (NYSE:SFR) and $437 million subsequent to the second quarter |
• | The Company and funds managed by the Company invested and agreed to invest $857 million; the Company invested $670 million and funds managed by the Company invested $187 million |
• | The Company has in excess of $1.2 billion of liquidity through cash-on-hand and availability under its revolving credit facility |
• | The Company repurchased 8.0 million shares of its common stock for $102 million and year-to-date, repurchased an aggregate 12.9 million shares of its common stock for $168 million |
• | The Company issued 13.8 million shares of 7.15% Series I cumulative redeemable perpetual preferred stock, generating net proceeds of $334 million, and redeemed all of the shares of its 8.75% Series A cumulative redeemable perpetual preferred stock and 8.50% Series F cumulative redeemable perpetual preferred stock |
• | The Company refinanced over $1.6 billion of consolidated mortgage debt in the Hospitality Real Estate segment, extending the maturity dates and reducing the interest rates, and repaid the remaining $77 million of the original $1.1 billion floating rate acquisition debt in the Industrial Real Estate segment through the issuance of $188 million of long-term fixed rate mortgage loans |
Consolidated | CLNS OP | Same Store | ||||||||||||||||||||
NOI | Share NOI(1) | Consolidated NOI | Occupancy %(2) | TTM Coverage(3) | ||||||||||||||||||
($ In millions) | Q2 2017 | Q2 2017 | Q2 2017 | Q1 2017 | Q2 2017 | Q1 2017 | 3/31/2017 | 12/31/2016 | ||||||||||||||
Medical Office Buildings | $ | 14.4 | $ | 10.3 | $ | 14.4 | $ | 13.6 | 84.0 | % | 85.1 | % | N/A | N/A | ||||||||
Senior Housing - Operating | 19.4 | 13.8 | 19.4 | 18.3 | 86.7 | % | 86.8 | % | N/A | N/A | ||||||||||||
Triple-Net Lease: | ||||||||||||||||||||||
Senior Housing | 14.4 | 10.3 | 14.4 | 13.5 | 83.6 | % | 85.7 | % | 1.5x | 1.5x | ||||||||||||
Skilled Nursing Facilities | 24.9 | 17.8 | 24.9 | 28.5 | 83.4 | % | 84.2 | % | 1.3x | 1.4x | ||||||||||||
Hospitals | 5.4 | 3.9 | 5.4 | 5.4 | 63.4 | % | 60.9 | % | 3.3x | 3.7x | ||||||||||||
Healthcare Total/W.A. | $ | 78.5 | $ | 56.1 | $ | 78.5 | $ | 79.3 | 83.0 | % | 83.6 | % | 1.6x | 1.7x |
(1) | CLNS OP Share NOI represents second quarter 2017 Consolidated NOI multiplied by CLNS OP’s ownership interest as of June 30, 2017. |
(2) | Occupancy % for Senior Housing - Operating represents average during the presented quarter, MOB’s is as of last day in the quarter and for other types represents average during the prior quarter. |
(3) | Represents the ratio of EBITDAR to cash rent on a trailing twelve month basis. |
Consolidated | CLNS OP | Same Store | |||||||||||||||||
NOI | Share NOI 1) | Consolidated NOI | Leased %(2) | ||||||||||||||||
($ In millions) | Q2 2017 | Q2 2017 | Q2 2017 | Q1 2017 | Q2 2017 | Q1 2017 | |||||||||||||
Industrial | $ | 38.5 | $ | 15.8 | $ | 37.0 | $ | 36.4 | 95.6 | % | 95.9 | % |
(1) | CLNS OP Share NOI represents second quarter 2017 Consolidated NOI multiplied by CLNS OP’s ownership interest as of June 30, 2017. |
(2) | Leased % represents the last day of the presented quarter. |
Same Store | |||||||||||||||||||||||||||||||||
Consolidated | CLNS OP Share | Avg. Daily Rate | RevPAR | ||||||||||||||||||||||||||||||
EBITDA (1) | EBITDA(2) | Consolidated EBITDA | Occupancy %(3) | (In dollars)(3) | (In dollars)(3) | ||||||||||||||||||||||||||||
($ In millions) | Q2 2017 | Q2 2017 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | |||||||||||||||||||||||
Marriott | $ | 62.8 | $ | 59.2 | $ | 62.8 | $ | 65.5 | 77.0 | % | 78.8 | % | $ | 129 | $ | 128 | $ | 99 | $ | 101 | |||||||||||||
Hilton | 13.9 | 13.1 | 13.9 | 13.0 | 82.0 | % | 81.5 | % | 131 | 127 | 108 | 103 | |||||||||||||||||||||
Other | 5.0 | 4.7 | 5.0 | 4.6 | 84.2 | % | 77.9 | % | 139 | 142 | 117 | 110 | |||||||||||||||||||||
Total/W.A. | $ | 81.7 | $ | 77.0 | $ | 81.7 | $ | 83.1 | 78.2 | % | 79.2 | % | $ | 130 | $ | 129 | $ | 102 | $ | 102 |
(1) | Q2 2017 Consolidated EBITDA excludes FF&E reserve amounts of $9.7 million. |
(2) | CLNS OP Share EBITDA represents second quarter 2017 Consolidated EBITDA multiplied by CLNS OP’s ownership interest as of June 30, 2017. |
(3) | For each metric, data represents average during the presented quarter. |
CLNS OP Share | |||||||
June 30, 2017 | |||||||
Undepreciated Carrying Value | |||||||
($ In millions) | Assets | Equity | |||||
Net Lease Real Estate Equity | $ | 961 | $ | 405 | |||
Other Real Estate Equity | 1,531 | 853 | |||||
Real Estate Debt | 2,996 | 2,148 | |||||
Real Estate Private Equity Funds and CRE Securities | 542 | 542 | |||||
Special Situations (NRE, CAF, Albertsons and Other GP Co-investments) | 222 | 222 | |||||
Other Equity and Debt Total | $ | 6,252 | $ | 4,170 |
($ In billions) | Amount | % of Grand Total | ||||
Balance Sheet (CLNS OP Share): | ||||||
Healthcare | $ | 4.1 | 7.4 | % | ||
Industrial | 1.1 | 2.0 | % | |||
Hospitality | 3.9 | 7.0 | % | |||
Other Equity and Debt | 6.3 | 11.2 | % | |||
Balance Sheet Subtotal | 15.4 | 27.6 | % | |||
Investment Management: | ||||||
Institutional Funds | 10.0 | 18.0 | % | |||
Retail Companies | 6.9 | 12.4 | % | |||
NorthStar Realty Europe (NYSE:NRE) | 2.1 | 3.8 | % | |||
Townsend | 14.2 | 25.5 | % | |||
Pro Rata Corporate Investments | 7.1 | 12.7 | % | |||
Investment Management Subtotal | 40.3 | 72.4 | % | |||
Grand Total | $ | 55.7 | 100.0 | % |
June 30, 2017 (Unaudited) | December 31, 2016 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 599,920 | $ | 376,005 | ||||
Restricted cash | 300,680 | 111,959 | ||||||
Real estate, net | 13,884,204 | 3,243,631 | ||||||
Loans receivable, net | 4,009,089 | 3,430,608 | ||||||
Investments in unconsolidated ventures ($365,050 and $0 at fair value) | 1,526,807 | 1,052,995 | ||||||
Securities available for sale, at fair value | 409,871 | 23,446 | ||||||
Goodwill | 1,808,393 | 680,127 | ||||||
Deferred leasing costs and intangible assets, net | 1,035,767 | 278,741 | ||||||
Assets held for sale ($96,807 and $67,033 at fair value) | 1,190,122 | 292,924 | ||||||
Other assets ($18,809 and $36,101 at fair value) | 459,702 | 260,585 | ||||||
Due from affiliates | 63,777 | 9,971 | ||||||
Total assets | $ | 25,288,332 | $ | 9,760,992 | ||||
Liabilities | ||||||||
Debt, net | $ | 10,418,978 | $ | 3,715,618 | ||||
Accrued and other liabilities ($179,221 and $5,448 at fair value) | 968,868 | 286,952 | ||||||
Intangible liabilities, net | 221,853 | 19,977 | ||||||
Liabilities related to assets held for sale | 203,548 | 14,296 | ||||||
Due to affiliates | 34,945 | 41,250 | ||||||
Dividends and distributions payable | 186,990 | 65,972 | ||||||
Total liabilities | 12,035,182 | 4,144,065 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | 79,504 | — | ||||||
Equity | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value per share; $1,643,723 and $625,750 liquidation preference; 250,000 and 50,000 shares authorized; 65,749 and 25,030 shares issued and outstanding | 1,624,444 | 607,200 | ||||||
Common stock, $0.01 par value per share | ||||||||
Class A, 949,000 and 658,369 shares authorized; 551,190 and 166,440 shares issued and outstanding (1) | 5,512 | 1,664 | ||||||
Class B, 1,000 shares authorized; 742 and 770 shares issued and outstanding (1) | 7 | 8 | ||||||
Additional paid-in capital | 7,958,872 | 2,443,100 | ||||||
Distributions in excess of earnings | (505,554 | ) | (246,064 | ) | ||||
Accumulated other comprehensive income (loss) | 6,884 | (32,109 | ) | |||||
Total stockholders’ equity | 9,090,165 | 2,773,799 | ||||||
Noncontrolling interests in investment entities | 3,643,836 | 2,453,938 | ||||||
Noncontrolling interests in Operating Company | 439,645 | 389,190 | ||||||
Total equity | 13,173,646 | 5,616,927 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 25,288,332 | $ | 9,760,992 |
(1) | As a result of the Merger, each outstanding share of common stock of Colony Capital, Inc. was exchanged for the right to receive 1.4663 of Class A common stock of Colony NorthStar. All historical share counts and per share amounts have been adjusted to reflect the exchange ratio. |
Three Months Ended June 30, | ||||||||
2017 | 2016 | |||||||
Revenues | ||||||||
Property operating income | $ | 500,531 | $ | 95,348 | ||||
Interest income | 111,263 | 103,860 | ||||||
Fee income | 54,319 | 15,505 | ||||||
Other income | 13,259 | 2,815 | ||||||
Total revenues | 679,372 | 217,528 | ||||||
Expenses | ||||||||
Property operating expense | 253,717 | 29,780 | ||||||
Interest expense | 140,260 | 42,568 | ||||||
Investment, servicing and commission expense | 13,740 | 5,402 | ||||||
Transaction costs | 2,440 | 7,958 | ||||||
Depreciation and amortization | 153,111 | 39,541 | ||||||
Provision for loan loss | 1,067 | 6,213 | ||||||
Impairment loss | 12,761 | 2,441 | ||||||
Compensation expense | 80,759 | 24,240 | ||||||
Administrative expenses | 30,145 | 13,098 | ||||||
Total expenses | 688,000 | 171,241 | ||||||
Other income | ||||||||
Gain on sale of real estate assets | 15,190 | 5,844 | ||||||
Other loss, net | (23,850 | ) | (348 | ) | ||||
Earnings from investments in unconsolidated ventures | 122,394 | 53,113 | ||||||
Income before income taxes | 105,106 | 104,896 | ||||||
Income tax benefit (expense) | 86 | (1,760 | ) | |||||
Net income from continuing operations | 105,192 | 103,136 | ||||||
Income from discontinued operations | — | — | ||||||
Net income | 105,192 | 103,136 | ||||||
Net income attributable to noncontrolling interests: | ||||||||
Redeemable noncontrolling interests | 720 | — | ||||||
Investment entities | 23,800 | 40,169 | ||||||
Operating Company | 2,330 | 7,918 | ||||||
Net income attributable to Colony NorthStar, Inc. | 78,342 | 55,049 | ||||||
Preferred stock redemption | 5,448 | — | ||||||
Preferred stock dividends | 34,339 | 12,093 | ||||||
Net income attributable to common stockholders | $ | 38,555 | $ | 42,956 | ||||
Basic earnings per share (1) | ||||||||
Net income from continuing operations per basic common share | $ | 0.07 | $ | 0.26 | ||||
Net income per basic common share | $ | 0.07 | $ | 0.26 | ||||
Diluted earnings per share (1) | ||||||||
Net income from continuing operations per diluted common share | $ | 0.07 | $ | 0.24 | ||||
Net income per diluted common share | $ | 0.07 | $ | 0.24 | ||||
Weighted average number of shares (1) | ||||||||
Basic | 544,023 | 164,674 | ||||||
Diluted | 544,023 | 201,257 |
(1) | As a result of the Merger, each outstanding share of common stock of Colony Capital, Inc. was exchanged for the right to receive 1.4663 of Class A common stock of Colony NorthStar. All historical share counts and per share amounts have been adjusted to reflect the exchange ratio. |
Three Months Ended June 30, 2017 | ||||
Net loss attributable to common stockholders | $ | 38,555 | ||
Adjustments for FFO attributable to common interests in Operating Company: | ||||
Net loss attributable to noncontrolling common interests in Operating Company | 2,330 | |||
Real estate depreciation and amortization | 135,421 | |||
Impairment of real estate | 12,816 | |||
Gain on sales of real estate | (15,112 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (44,048 | ) | ||
FFO attributable to common interests in Operating Company and common stockholders | 129,962 | |||
Additional adjustments for Core FFO attributable to common interests in Operating Company and common stockholders: | ||||
Gain on sales of real estate, net of depreciation, amortization and impairment previously adjusted for FFO (1) | (31,183 | ) | ||
Noncash equity compensation expense (2) | 38,945 | |||
Straight-line rent revenue | (7,994 | ) | ||
Gain on change in fair value of contingent consideration | (4,850 | ) | ||
Amortization of acquired above- and below-market lease intangibles, net | (3,520 | ) | ||
Amortization of deferred financing costs and debt premiums and discounts | 20,791 | |||
Unrealized loss on derivatives and foreign currency remeasurements | 26,834 | |||
Acquisition and merger-related transaction costs | 2,498 | |||
Merger integration costs (3) | 7,555 | |||
Preferred shares redemption costs | 5,448 | |||
Amortization and impairment of investment management intangibles | 15,666 | |||
Non-real estate depreciation and amortization | 6,482 | |||
Amortization of gain on remeasurement of consolidated investment entities, net | 3,837 | |||
Tax benefit, net (4) | (809 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (6,074 | ) | ||
Core FFO attributable to common interests in Operating Company and common stockholders | $ | 203,588 | ||
FFO per common share / common OP unit (5) | $ | 0.22 | ||
FFO per common share / common OP unit—diluted (6) | $ | 0.22 | ||
Core FFO per common share / common OP unit (5) | $ | 0.35 | ||
Core FFO per common share / common OP unit—diluted (6) | $ | 0.34 | ||
Weighted average number of common OP units outstanding used for FFO and Core FFO per common share and OP unit (5) | 585,110 | |||
Weighted average number of common OP units outstanding used for FFO and Core FFO per common share and OP unit—diluted (5)(6) | 623,455 |
(1) | Includes $36.7 million of depreciation, amortization and impairment charges previously adjusted to calculate FFO and Core Earnings, a non-GAAP measure used by Colony Capital, Inc. prior to its internalization of the manager. |
(2) | Includes $30.0 million of replacement award amortization. |
(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) | Adjustment represents the impact of taxes on amortization and impairment of investment management intangibles assumed in business combinations and gain on sale of property. |
(5) | Calculated based on weighted average shares outstanding including participating securities (unvested shares) 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 Colony |
(6) | For the three months ended June 30, 2017, included in the calculation of diluted FFO and Core FFO per share is the effect of adding back $7.2 million and $7.2 million of interest expense, respectively, associated with convertible senior notes and 38.3 million and 38.3 million weighted average dilutive common share equivalents, respectively, for the assumed conversion of the convertible senior notes. |
Three Months Ended June 30, 2017 | ||||||||||||
(In thousands) | Healthcare | Industrial | Hospitality | |||||||||
Total revenues | $ | 159,357 | $ | 56,125 | $ | 221,522 | ||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (8,385 | ) | (1,150 | ) | (13 | ) | ||||||
Property operating expenses (1) | (72,460 | ) | (16,195 | ) | (139,818 | ) | ||||||
Compensation expense (1) | — | (310 | ) | — | ||||||||
NOI or EBITDA | $ | 78,512 | $ | 38,470 | $ | 81,691 |
(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. |
Three Months Ended June 30, 2017 | ||||||||||||
(In thousands) | Healthcare | Industrial | Hospitality | |||||||||
Net income (loss) from continuing operations | $ | (11,394 | ) | $ | 9,100 | $ | 5,750 | |||||
Adjustments: | ||||||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (8,385 | ) | (1,150 | ) | (13 | ) | ||||||
Interest expense | 47,844 | 7,934 | 35,884 | |||||||||
Transaction, investment and servicing costs | 1,566 | 26 | 3,049 | |||||||||
Depreciation and amortization | 49,577 | 25,804 | 33,508 | |||||||||
Compensation and administrative expense | 2,003 | 2,733 | 2,385 | |||||||||
Gain on sale of real estate assets | — | (8,695 | ) | — | ||||||||
Other (gain) loss, net | (2,489 | ) | — | 219 | ||||||||
Earnings from investments in unconsolidated ventures | — | (28 | ) | — | ||||||||
Income tax (benefit) expense | (210 | ) | 2,746 | 909 | ||||||||
NOI or EBITDA | $ | 78,512 | $ | 38,470 | $ | 81,691 |
(In thousands) | Net income (Loss) From Continuing Operations | |||||||
Healthcare | $ | (11,394 | ) | |||||
Industrial | 9,100 | |||||||
Hospitality | 5,750 | |||||||
Other Equity and Debt | 185,630 | |||||||
Investment Management | 26,084 | |||||||
Amounts Not Allocated to Segments | (109,978 | ) | ||||||
Total Consolidated | $ | 105,192 |
Cautionary Statement Regarding Forward-Looking Statements | |
Colony NorthStar, Inc. | Supplemental Financial Report |
Important Note Regarding Non-GAAP Financial Measures | |
Colony NorthStar, Inc. | Supplemental Financial Report |
Note Regarding CLNS Reportable Segments / Consolidated and OP Share of Consolidated Amounts | |
Colony NorthStar, Inc. | Supplemental Financial Report |
Table of Contents | |
Page | |||
I. | Overview | ||
a. | Summary Metrics | 6 | |
b. | Summary of Segments | 7-8 | |
II. | Financial Results | ||
a. | Consolidated Balance Sheet | 9 | |
b. | Noncontrolling Interests’ Share Balance Sheet | 10 | |
c. | Consolidated Segment Operating Results | 11 | |
d. | Noncontrolling Interests’ Share Segment Operating Results | 12 | |
e. | Segment Reconciliation of Net Income to FFO & Core FFO | 13 | |
III. | Capitalization | ||
a. | Overview | 14 | |
b. | Investment-Level Debt Overview | 15 | |
c. | Revolving Credit Facility Overview | 16 | |
d. | Corporate Securities Overview | 17 | |
e. | Debt Maturity and Amortization Schedules | 18 | |
IV. | Healthcare Real Estate | ||
a. | Summary Metrics and Operating Results | 19 | |
b. | Portfolio Overview | 20-21 | |
V. | Industrial Real Estate | ||
a. | Summary Metrics and Operating Results | 22 | |
b. | Portfolio Overview | 23 | |
Page | |||
VI. | Hospitality Real Estate | ||
a. | Summary Metrics and Operating Results | 24 | |
b. | Portfolio Overview | 25 | |
VII. | Other Equity and Debt | ||
a. | Net Lease and Other Real Estate Equity | 26 | |
b. | Real Estate Debt | 27-29 | |
c. | Special Situations | 30 | |
d. | Real Estate PE Fund Interests | 31 | |
e. | CRE Securities | 32 | |
VIII. | Investment Management | ||
a. | Summary Metrics | 33 | |
b. | Assets Under Management | 34 | |
c. | Retail Companies | 35 | |
IX. | Appendices | ||
a. | Definitions | 37 | |
b. | Reconciliation of Net Income (Loss) to NOI/EBITDA | 38-39 | |
Colony NorthStar, Inc. | Supplemental Financial Report | 5 |
Ia. Overview - Summary Metrics | |
($ and shares in thousands, except per share data and as noted; as of or for the three months ended June 30, 2017, unless otherwise noted) (Unaudited) | |||
Financial Data | |||
Net income (loss) attributable to common stockholders | $ | 38,555 | |
Net income (loss) attributable to common stockholders per basic share | 0.07 | ||
FFO | 129,962 | ||
FFO per basic share | 0.22 | ||
Core FFO | 203,588 | ||
Core FFO per basic share | 0.35 | ||
Q3 2017 dividend per share | 0.27 | ||
Annualized Q3 2017 dividend per share | 1.08 | ||
Balance Sheet, Capitalization and Trading Statistics | |||
Total consolidated assets | $ | 25,288,332 | |
CLNS OP share of consolidated assets | 19,078,383 | ||
Total consolidated debt(1) | 10,584,052 | ||
CLNS OP share of consolidated debt(1) | 8,312,999 | ||
Shares and OP units outstanding as of August 4, 2017 | 585,404 | ||
Share price as of August 4, 2017 | 14.56 | ||
Market value of common equity & OP units | 8,523,482 | ||
Liquidation preference of perpetual preferred equity | 1,643,723 | ||
Insider ownership of shares and OP units | 7.0 | % | |
AUM | $ 55.7 billion |
(1) | Represents principal balance and excludes debt issuance costs, discounts and premiums. Excludes $315 million principal balance of non-recourse CDO securitization debt. |
Colony NorthStar, Inc. | Supplemental Financial Report | 6 |
Ib. Overview - Summary of Segments | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | Consolidated amount | CLNS OP share of consolidated amount | |||||
Healthcare Real Estate(1) | |||||||
Q2 2017 net operating income(2) | $ | 78,512 | $ | 55,979 | |||
Annualized net operating income | 314,048 | 223,916 | |||||
Investment-level non-recourse financing(3) | 3,362,771 | 2,401,190 | |||||
Industrial Real Estate | |||||||
Q2 2017 net operating income(2) | 38,470 | 15,773 | |||||
Annualized net operating income | 153,880 | 63,092 | |||||
Investment-level non-recourse financing(3) | 785,119 | 335,195 | |||||
Hospitality Real Estate | |||||||
Q2 2017 EBITDA(2) | 81,691 | 77,035 | |||||
Annualized EBITDA(4) | 279,764 | 263,818 | |||||
Investment-level non-recourse financing(3) | 2,601,432 | 2,430,759 |
(1) | NOI includes $1.4 million of interest earned related to $70 million carrying value of healthcare real estate development loans related to the Company’s healthcare real estate portfolio. This interest income is in the Interest Income line item on the Company’s Statement of Operations for the three months ended June 30, 2017. |
(2) | For a reconciliation of net income/(loss) attributable to common stockholders to NOI/EBITDA, please refer to the appendix to this presentation. |
(3) | Represents unpaid principal balance. |
(4) | Annualized EBITDA is calculated using the pro rata percentage of historical Q2 2016 EBITDA relative to historical full year 2016 EBITDA to account for seasonality. |
Colony NorthStar, Inc. | Supplemental Financial Report | 7 |
Ib. Overview - Summary of Segments (cont’d) | |
($ in thousands except as noted; as of or for the three months ended June 30, 2017, unless otherwise noted) | Consolidated amount | CLNS OP share of consolidated amount | |||||
Other Equity and Debt(1) | |||||||
1) Net lease real estate equity | |||||||
a) Q2 2017 net operating income(2) | $ | 16,048 | $ | 16,030 | |||
b) Investment-level non-recourse financing(3) | 558,887 | 558,241 | |||||
c) Carrying value - unconsolidated / equity method investments | — | — | |||||
2) Other real estate equity | |||||||
a) Undepreciated carrying value of real estate assets(4) | 2,236,641 | 1,201,760 | |||||
b) Investment-level non-recourse financing(3) | 1,213,577 | 677,501 | |||||
c) Carrying value - unconsolidated / equity method investments | 404,375 | 356,227 | |||||
3) Real estate debt | |||||||
a) Loans receivable(5) | 3,935,568 | 2,738,295 | |||||
b) Investment-level non-recourse financing (CLNS OP share includes $11 million of recourse debt)(3) | 1,051,074 | 898,921 | |||||
c) Carrying value - equity method investments | 331,404 | 140,747 | |||||
d) Carrying value - real estate assets (REO within debt portfolio) and other(4) | 61,361 | 22,357 | |||||
4) Special situations (see pg. 30 for details) | |||||||
a) Carrying value of investments (market value of NRE position) | 218,823 | ||||||
5) Real estate PE fund investments | |||||||
a) Carrying value | 338,679 | ||||||
6) CRE securities | |||||||
a) Net carrying value | 192,286 | ||||||
Investment Management | |||||||
AUM ($ in millions) | 40,320 | ||||||
Q2 2017 fee revenue and earnings of investments in unconsolidated ventures | 53,555 | ||||||
Net Assets(6) | |||||||
Cash and cash equivalents, restricted cash and other assets | 1,411,874 | 1,036,107 | |||||
Accrued and other liabilities and dividends payable | 1,006,614 | 818,779 | |||||
Net assets | 405,260 | 217,328 |
(1) | Includes assets classified as held for sale on the Company’s financial statements. |
(2) | Excludes approximately $0.3 million of NOI related to an asset sold during the second quarter 2017. For a reconciliation of net income/(loss) attributable to common stockholders to NOI/EBITDA, please refer to the appendix to this presentation. |
(3) | Represents unpaid principal balance. |
(4) | Includes all components related to real estate assets, including tangible real estate and lease-related intangibles, and excludes accumulated depreciation. |
(5) | Excludes $3 million carrying value of real estate debt investments held in a CDO securitization and $70 million carrying value of healthcare real estate development loans. |
(6) | Assets exclude $12 million of deferred financing costs and liabilities excludes $184 million of deferred tax liabilities and other liabilities which are not due in cash. |
Colony NorthStar, Inc. | Supplemental Financial Report | 8 |
IIa. Financial Results - Consolidated Balance Sheet | |
($ in thousands, except per share data) (Unaudited) | As of June 30, 2017 | |||
Assets | ||||
Cash and cash equivalents | $ | 599,920 | ||
Restricted cash | 300,680 | |||
Real estate assets, net | 13,884,204 | |||
Loans receivable, net | 4,009,089 | |||
Investments in unconsolidated ventures | 1,526,807 | |||
Securities available for sale, at fair value | 409,871 | |||
Goodwill | 1,808,393 | |||
Deferred leasing costs and intangible assets, net | 1,035,767 | |||
Assets held for sale | 1,190,122 | |||
Other assets | 459,702 | |||
Due from affiliates | 63,777 | |||
Total assets | $ | 25,288,332 | ||
Liabilities | ||||
Debt, net | $ | 10,418,978 | ||
Accrued and other liabilities | 968,868 | |||
Intangible liabilities, net | 221,853 | |||
Liabilities related to assets held for sale | 203,548 | |||
Due to affiliates | 34,945 | |||
Dividends and distributions payable | 186,990 | |||
Total liabilities | 12,035,182 | |||
Commitments and contingencies | ||||
Redeemable noncontrolling interests | 79,504 | |||
Equity | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.01 par value per share; $1,643,723 liquidation preference; 250,000 shares authorized; 65,749 shares issued and outstanding | 1,624,444 | |||
Common stock, $0.01 par value per share | ||||
Class A, 949,000 shares authorized; 551,190 shares issued and outstanding | 5,512 | |||
Class B, 1,000 shares authorized; 742 shares issued and outstanding | 7 | |||
Additional paid-in capital | 7,958,872 | |||
Distributions in excess of earnings | (505,554 | ) | ||
Accumulated other comprehensive income (loss) | 6,884 | |||
Total stockholders’ equity | 9,090,165 | |||
Noncontrolling interests in investment entities | 3,643,836 | |||
Noncontrolling interests in Operating Company | 439,645 | |||
Total equity | 13,173,646 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ | 25,288,332 |
Colony NorthStar, Inc. | Supplemental Financial Report | 9 |
IIb. Financial Results - Noncontrolling Interests’ Share Balance Sheet | |
($ in thousands, except per share data) (Unaudited) | As of June 30, 2017 | |||
Assets | ||||
Cash and cash equivalents | $ | 234,810 | ||
Restricted cash | 59,345 | |||
Real estate assets, net | 3,901,334 | |||
Loans receivable, net | 1,218,386 | |||
Investments in unconsolidated ventures | 284,555 | |||
Securities available for sale, at fair value | 172 | |||
Goodwill | — | |||
Deferred leasing costs and intangible assets, net | 181,159 | |||
Assets held for sale | 246,677 | |||
Other assets | 82,102 | |||
Due from affiliates | 1,409 | |||
Total assets | $ | 6,209,949 | ||
Liabilities | ||||
Debt, net | $ | 2,205,722 | ||
Accrued and other liabilities | 184,546 | |||
Intangible liabilities, net | 69,397 | |||
Liabilities related to assets held for sale | 23,655 | |||
Due to affiliates | 3,288 | |||
Dividends and distributions payable | 1 | |||
Total liabilities | 2,486,609 | |||
Commitments and contingencies | — | |||
Redeemable noncontrolling interests | 79,504 | |||
Equity | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.01 par value per share; $1,643,723 liquidation preference; 250,000 shares authorized; 65,749 shares issued and outstanding | — | |||
Common stock, $0.01 par value per share | ||||
Class A, 949,000 shares authorized; 551,190 shares issued and outstanding | — | |||
Class B, 1,000 shares authorized; 742 shares issued and outstanding | — | |||
Additional paid-in capital | — | |||
Distributions in excess of earnings | — | |||
Accumulated other comprehensive income (loss) | — | |||
Total stockholders’ equity | — | |||
Noncontrolling interests in investment entities | 3,643,836 | |||
Noncontrolling interests in Operating Company | — | |||
Total equity | 3,643,836 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ | 6,209,949 |
Colony NorthStar, Inc. | Supplemental Financial Report | 10 |
IIc. Financial Results - Consolidated Segment Operating Results | |
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||
Property operating income | $ | 157,561 | $ | 55,674 | $ | 221,392 | $ | 65,904 | $ | — | $ | — | $ | 500,531 | ||||||||||||||
Interest income | 1,416 | — | — | 109,582 | — | 265 | 111,263 | |||||||||||||||||||||
Fee income | — | — | — | 41 | 54,278 | — | 54,319 | |||||||||||||||||||||
Other income | 380 | 451 | 130 | 4,446 | 6,253 | 1,599 | 13,259 | |||||||||||||||||||||
Total revenues | 159,357 | 56,125 | 221,522 | 179,973 | 60,531 | 1,864 | 679,372 | |||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Property operating expense | 72,460 | 16,195 | 139,818 | 25,244 | — | — | 253,717 | |||||||||||||||||||||
Interest expense | 47,844 | 7,934 | 35,884 | 35,630 | — | 12,968 | 140,260 | |||||||||||||||||||||
Investment, servicing and commission expense | 1,541 | 26 | 3,049 | 5,755 | 2,540 | 829 | 13,740 | |||||||||||||||||||||
Transaction costs | 25 | — | — | 628 | — | 1,787 | 2,440 | |||||||||||||||||||||
Depreciation and amortization | 49,577 | 25,804 | 33,508 | 26,894 | 15,594 | 1,734 | 153,111 | |||||||||||||||||||||
Provision for loan loss | — | — | — | 1,067 | — | — | 1,067 | |||||||||||||||||||||
Impairment loss | — | — | — | 12,761 | — | — | 12,761 | |||||||||||||||||||||
Compensation expense | 1,625 | 1,835 | 1,967 | 4,088 | 19,987 | 51,257 | 80,759 | |||||||||||||||||||||
Administrative expenses | 379 | 1,208 | 418 | 4,506 | 5,895 | 17,739 | 30,145 | |||||||||||||||||||||
Total expenses | 173,451 | 53,002 | 214,644 | 116,573 | 44,016 | 86,314 | 688,000 | |||||||||||||||||||||
Other income (loss) | ||||||||||||||||||||||||||||
Gain on sale of real estate assets | — | 8,695 | — | 6,495 | — | — | 15,190 | |||||||||||||||||||||
Other gain (loss), net | 2,490 | — | (219 | ) | (3,114 | ) | 478 | (23,485 | ) | (23,850 | ) | |||||||||||||||||
Earnings of investments in unconsolidated ventures | — | 28 | — | 119,554 | 2,812 | — | 122,394 | |||||||||||||||||||||
Income (loss) before income taxes | (11,604 | ) | 11,846 | 6,659 | 186,335 | 19,805 | (107,935 | ) | 105,106 | |||||||||||||||||||
Income tax benefit (expense) | 210 | (2,746 | ) | (909 | ) | (705 | ) | 6,279 | (2,043 | ) | 86 | |||||||||||||||||
Net income (loss) from continuing operations | (11,394 | ) | 9,100 | 5,750 | 185,630 | 26,084 | (109,978 | ) | 105,192 | |||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||
Net income (loss) | (11,394 | ) | 9,100 | 5,750 | 185,630 | 26,084 | (109,978 | ) | 105,192 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests: | ||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 720 | — | 720 | |||||||||||||||||||||
Investment entities | (2,845 | ) | 5,601 | 670 | 20,374 | — | — | 23,800 | ||||||||||||||||||||
Operating Company | (478 | ) | 196 | 284 | 9,245 | 1,402 | (8,319 | ) | 2,330 | |||||||||||||||||||
Net income (loss) attributable to Colony NorthStar, Inc. | (8,071 | ) | 3,303 | 4,796 | 156,011 | 23,962 | (101,659 | ) | 78,342 | |||||||||||||||||||
Preferred stock redemption | — | — | — | — | — | 5,448 | 5,448 | |||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | 34,339 | 34,339 | |||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (8,071 | ) | $ | 3,303 | $ | 4,796 | $ | 156,011 | $ | 23,962 | $ | (141,446 | ) | $ | 38,555 |
Colony NorthStar, Inc. | Supplemental Financial Report | 11 |
IId. Financial Results - Noncontrolling Interests’ Share Segment Operating Results | |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total | ||||||||||||||||||||||
Revenues | — | ||||||||||||||||||||||||||||
Property operating income | $ | 36,262 | $ | 31,968 | $ | 24,371 | — | $ | 23,625 | $ | — | $ | — | $ | 116,226 | ||||||||||||||
Interest income | 376 | — | — | — | 34,612 | — | — | 34,988 | |||||||||||||||||||||
Fee income | — | — | — | — | — | 2,232 | — | 2,232 | |||||||||||||||||||||
Other income | 102 | (320 | ) | 13 | 2,358 | 65 | — | 2,218 | |||||||||||||||||||||
Total revenues | 36,740 | 31,648 | 24,384 | 60,595 | 2,297 | — | 155,664 | ||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Property operating expense | 15,986 | 9,481 | 15,488 | 11,392 | — | — | 52,347 | ||||||||||||||||||||||
Interest expense | 11,425 | 4,519 | 4,020 | 8,831 | — | — | 28,795 | ||||||||||||||||||||||
Investment, servicing and commission expense | 335 | 13 | 243 | 2,442 | 98 | — | 3,131 | ||||||||||||||||||||||
Transaction costs | 3 | — | — | 413 | — | — | 416 | ||||||||||||||||||||||
Depreciation and amortization | 12,217 | 14,677 | 3,763 | 9,444 | 382 | — | 40,483 | ||||||||||||||||||||||
Provision for loan loss | — | — | — | 554 | — | — | 554 | ||||||||||||||||||||||
Impairment loss | — | — | — | 9,784 | — | — | 9,784 | ||||||||||||||||||||||
Compensation expense | — | 338 | — | 607 | 864 | — | 1,809 | ||||||||||||||||||||||
Administrative expenses | 68 | 409 | 49 | 2,038 | 245 | — | 2,809 | ||||||||||||||||||||||
Total expenses | 40,034 | 29,437 | 23,563 | 45,505 | 1,589 | — | 140,128 | ||||||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||||||||
Gain on sale of real estate assets | — | 4,953 | — | 630 | — | — | 5,583 | ||||||||||||||||||||||
Other gain (loss), net | 677 | — | (33 | ) | (730 | ) | (1 | ) | — | (87 | ) | ||||||||||||||||||
Earnings of investments in unconsolidated ventures | — | — | — | 6,171 | 42 | — | 6,213 | ||||||||||||||||||||||
Income (loss) before income taxes | (2,617 | ) | 7,164 | 788 | 21,161 | 749 | — | 27,245 | |||||||||||||||||||||
Income tax benefit (expense) | (228 | ) | (1,563 | ) | (118 | ) | (787 | ) | (29 | ) | — | (2,725 | ) | ||||||||||||||||
Net income (loss) from continuing operations | (2,845 | ) | 5,601 | 670 | 20,374 | 720 | — | 24,520 | |||||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | — | — | — | ||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | $ | (2,845 | ) | $ | 5,601 | $ | 670 | $ | 20,374 | $ | 720 | $ | — | $ | 24,520 |
Colony NorthStar, Inc. | Supplemental Financial Report | 12 |
IIe. Financial Results - Segment Reconciliation of Net Income to FFO & Core FFO | |
Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||||
OP pro rata share by segment | ||||||||||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total OP pro rata share | Amounts attributable to noncontrolling interests | CLNS consolidated as reported | |||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (8,071 | ) | $ | 3,303 | $ | 4,796 | $ | 156,011 | $ | 23,962 | $ | (141,446 | ) | $ | 38,555 | $ | — | $ | 38,555 | ||||||||||||||||
Net income (loss) attributable to noncontrolling common interests in Operating Company | (478 | ) | 196 | 284 | 9,245 | 1,402 | (8,319 | ) | 2,330 | — | 2,330 | |||||||||||||||||||||||||
Net income (loss) attributable to common interests in Operating Company and common stockholders | (8,549 | ) | 3,499 | 5,080 | 165,256 | 25,364 | (149,765 | ) | 40,885 | — | 40,885 | |||||||||||||||||||||||||
Adjustments for FFO: | ||||||||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 33,971 | 11,090 | 29,441 | 19,983 | 1,088 | — | 95,573 | 39,848 | 135,421 | |||||||||||||||||||||||||||
Impairment write-downs associated with depreciable real estate | — | — | — | 3,032 | — | — | 3,032 | 9,784 | 12,816 | |||||||||||||||||||||||||||
(Gain) loss from sales of depreciable real estate | — | (3,742 | ) | — | (6,811 | ) | 1,025 | — | (9,528 | ) | (5,584 | ) | (15,112 | ) | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests-Operating Company | — | — | — | — | — | — | — | (44,048 | ) | (44,048 | ) | |||||||||||||||||||||||||
FFO | $ | 25,422 | $ | 10,847 | $ | 34,521 | $ | 181,460 | $ | 27,477 | $ | (149,765 | ) | $ | 129,962 | $ | — | $ | 129,962 | |||||||||||||||||
Additional adjustments for Core FFO: | ||||||||||||||||||||||||||||||||||||
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) | — | — | — | (31,079 | ) | — | — | (31,079 | ) | (104 | ) | (31,183 | ) | |||||||||||||||||||||||
Equity-based compensation expense(2) | 368 | 410 | 446 | 1,654 | 3,411 | 32,656 | 38,945 | — | 38,945 | |||||||||||||||||||||||||||
Straight-line rent revenue and straight-line rent expense on ground leases | (3,241 | ) | (556 | ) | (5 | ) | (1,491 | ) | (164 | ) | — | (5,457 | ) | (2,537 | ) | (7,994 | ) | |||||||||||||||||||
Gain on change in fair value of contingent consideration | — | — | — | — | — | (4,850 | ) | (4,850 | ) | — | (4,850 | ) | ||||||||||||||||||||||||
Amortization of acquired above- and below-market lease values, net | (2,649 | ) | 52 | (1 | ) | 74 | — | — | (2,524 | ) | (996 | ) | (3,520 | ) | ||||||||||||||||||||||
Amortization of deferred financing costs and debt premiums and discounts | 5,052 | 483 | 5,665 | 3,636 | 133 | 1,936 | 16,905 | 3,886 | 20,791 | |||||||||||||||||||||||||||
Unrealized fair value (gain) loss on derivatives and foreign currency remeasurements | (1,811 | ) | — | 65 | 1,184 | (965 | ) | 28,406 | 26,879 | (45 | ) | 26,834 | ||||||||||||||||||||||||
Acquisition and merger-related transaction costs | 20 | — | — | 273 | — | 1,787 | 2,080 | 418 | 2,498 | |||||||||||||||||||||||||||
Merger integration costs(3) | — | — | — | — | — | 7,555 | 7,555 | — | 7,555 | |||||||||||||||||||||||||||
Preferred share redemption costs | — | — | — | — | — | 5,448 | 5,448 | — | 5,448 | |||||||||||||||||||||||||||
Amortization and impairment of investment management intangibles | — | — | — | — | 15,296 | — | 15,296 | 370 | 15,666 | |||||||||||||||||||||||||||
Non-real estate depreciation and amortization | 1,676 | 37 | 1,994 | 306 | 51 | 1,734 | 5,798 | 684 | 6,482 | |||||||||||||||||||||||||||
Amortization of gain on remeasurement of consolidated investment entities, net | — | — | — | 1,043 | — | — | 1,043 | 2,794 | 3,837 | |||||||||||||||||||||||||||
Tax (benefit) expense, net(4) | — | 1,212 | — | — | (3,625 | ) | — | (2,413 | ) | 1,604 | (809 | ) | ||||||||||||||||||||||||
Less: Adjustments attributable to noncontrolling interests in investment entities | — | (6,074 | ) | (6,074 | ) | |||||||||||||||||||||||||||||||
Core FFO | $ | 24,837 | $ | 12,485 | $ | 42,685 | $ | 157,060 | $ | 41,614 | $ | (75,093 | ) | $ | 203,588 | $ | — | $ | 203,588 |
(1) | Includes $36.7 million of depreciation, amortization and impairment charges previously adjusted to calculate FFO and Core Earnings, a non-GAAP measure used by Colony prior to its internalization of the manager. |
(2) | Includes $30.0 million of replacement award amortization. |
(3) | Merger integration costs represent costs and charges incurred during the integration of Colony, NSAM and NRF. These integration costs are not reflective of the Company’s core operating performance and the Company does not expect to incur these costs subsequent to the completion of the merger integration. The majority of integration costs consist of severance, employee costs of those separated or scheduled for separation, system integration and lease terminations. |
(4) | Adjustment represents the impact of taxes on amortization and impairment of investment management intangibles assumed in business combinations and gain on sale of property. |
Colony NorthStar, Inc. | Supplemental Financial Report | 13 |
IIIa. Capitalization - Overview | |
($ in thousands; except per share data; as of June 30, 2017, unless otherwise noted) | Consolidated amount | CLNS OP share of consolidated amount | |||||||||
Debt (UPB) | |||||||||||
$1,000,000 Revolving credit facility | $ | 71,000 | $ | 71,000 | |||||||
Convertible/exchangeable senior notes | 619,905 | 619,905 | |||||||||
Corporate aircraft promissory note | 40,170 | 40,170 | |||||||||
Trust Preferred Securities ("TruPS") | 280,117 | 280,117 | |||||||||
Investment-level debt: | |||||||||||
Healthcare | 3,362,771 | 2,401,190 | |||||||||
Industrial | 785,119 | 335,195 | |||||||||
Hospitality | 2,601,432 | 2,430,759 | |||||||||
Other Equity and Debt(1) | 2,823,538 | 2,134,663 | |||||||||
Total investment-level debt(2) | 9,572,860 | 7,301,807 | |||||||||
Total debt | $ | 10,584,052 | $ | 8,312,999 | |||||||
Perpetual preferred equity, redemption value | |||||||||||
Total perpetual preferred equity | $ | 1,643,723 | |||||||||
Common equity as of August 4, 2017 | Price per share | Shares / Units | |||||||||
Class A and B common stock and restricted stock units | $ | 14.56 | 552,979 | $ | 8,051,374 | ||||||
OP units | 14.56 | 32,425 | 472,108 | ||||||||
Total market value of common equity | $ | 8,523,482 | |||||||||
Total capitalization | $ | 18,480,204 |
(1) | Excludes $315 million principal balance of non-recourse CDO securitization debt. |
Colony NorthStar, Inc. | Supplemental Financial Report | 14 |
IIIb. Capitalization - Investment-Level Debt Overview | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | ||||||||||||||||
Investment-level debt overview | ||||||||||||||||
Consolidated | CLNS OP share of consolidated amount | |||||||||||||||
Type | Unpaid principal balance | Unpaid principal balance | Wtd. avg. years remaining to maturity | Wtd. avg. interest rate | ||||||||||||
Healthcare | Non-recourse | $ | 3,362,771 | $ | 2,401,190 | 3.5 | 4.9 | % | ||||||||
Industrial | Non-recourse | 785,119 | 335,195 | 11.7 | 3.8 | % | ||||||||||
Hospitality | Non-recourse | 2,601,432 | 2,430,759 | 4.0 | 4.3 | % | ||||||||||
Other Equity and Debt | ||||||||||||||||
Net lease real estate equity | Non-recourse | 558,887 | 558,241 | 7.8 | 4.0 | % | ||||||||||
Other real estate equity | Non-recourse | 1,213,577 | 677,501 | 2.6 | 3.5 | % | ||||||||||
Real estate debt(1) | Non-recourse(2) | 1,051,074 | 898,921 | 8.7 | 3.8 | % | ||||||||||
Total investment-level debt(3) | $ | 9,572,860 | $ | 7,301,807 | 4.9 | 4.3 | % |
(1) | Excludes $315 million principal balance of non-recourse CDO securitization debt. |
(2) | $11 million is recourse debt. |
(3) | Includes $124 million principal balance of debt related to assets held for sale. |
Colony NorthStar, Inc. | Supplemental Financial Report | 15 |
IIIc. Capitalization - Revolving Credit Facility Overview | |
($ in thousands, except as noted; as of June 30, 2017) | ||||
Revolving credit facility | ||||
Maximum principal amount | $ | 929,000 | ||
Amount outstanding | 71,000 | |||
Initial maturity | January 11, 2021 | |||
Fully-extended maturity | January 10, 2022 | |||
Interest rate | LIBOR + 2.25% | |||
Financial covenants as defined in the Credit Agreement: | Covenant level | |||
Consolidated Tangible Net Worth | Minimum $4,550 million | |||
Consolidated Fixed Charge Coverage Ratio | Minimum 1.50 to 1.00 | |||
Consolidated Interest Coverage Ratio | Minimum 3.00 to 1.00 | |||
Consolidated Leverage Ratio | Maximum 0.65 to 1.00 | |||
Company status: As of June 30, 2017, CLNS is meeting all required covenant threshold levels |
Colony NorthStar, Inc. | Supplemental Financial Report | 16 |
IIId. Capitalization - Corporate Securities Overview | |
($ in thousands, except per share data; as of June 30, 2017, unless otherwise noted) | ||||||||||||||||||||
Convertible/exchangeable debt | ||||||||||||||||||||
Description | Outstanding principal | Final due date | Interest rate | Conversion price (per share of common stock) | Conversion ratio | Conversion shares | Redemption date | |||||||||||||
5.0% Convertible senior notes | $ | 200,000 | April 15, 2023 | 5.00% fixed | $ | 15.76 | 63.4700 | 12,694 | On or after April 22, 2020(1) | |||||||||||
3.875% Convertible senior notes | 402,500 | January 15, 2021 | 3.875% fixed | 16.57 | 60.3431 | 24,288 | On or after January 22, 2019(1) | |||||||||||||
7.25% Exchangeable senior notes(2) | 1,000 | June 15, 2027 | 7.25% fixed | 21.95 | 45.5548 | 46 | Redeemable | |||||||||||||
5.375% Exchangeable senior notes | 16,405 | June 15, 2033 | 5.375% fixed | 12.04 | 83.0837 | 1,363 | On or after June 15, 2020(1) | |||||||||||||
Total convertible debt | $ | 619,905 |
TruPS | ||||||||
Description | Outstanding principal | Final due date | Interest rate | |||||
Trust I | $ | 41,240 | March 30, 2035 | 3M L + 3.25% | ||||
Trust II | 25,780 | June 30, 2035 | 3M L + 3.25% | |||||
Trust III | 41,238 | January 30, 2036 | 3M L + 2.83% | |||||
Trust IV | 50,100 | June 30, 2036 | 3M L + 2.80% | |||||
Trust V | 30,100 | September 30, 2036 | 3M L + 2.70% | |||||
Trust VI | 25,100 | December 30, 2036 | 3M L + 2.90% | |||||
Trust VII | 31,459 | April 30, 2037 | 3M L + 2.50% | |||||
Trust VIII | 35,100 | July 30, 2037 | 3M L + 2.70% | |||||
Total TruPS | $ | 280,117 |
Perpetual preferred stock | |||||||||
Description | Liquidation preference | Shares outstanding | Callable period | ||||||
Series B 8.25% cumulative redeemable perpetual preferred stock | $ | 349,973 | 13,999 | Callable | |||||
Series C 8.875% cumulative redeemable perpetual preferred stock | 125,000 | 5,000 | On or after October 11, 2017 | ||||||
Series D 8.5% cumulative redeemable perpetual preferred stock | 200,000 | 8,000 | On or after April 10, 2018 | ||||||
Series E 8.75% cumulative redeemable perpetual preferred stock | 250,000 | 10,000 | On or after May 15, 2019 | ||||||
Series G 7.5% cumulative redeemable perpetual preferred stock | 86,250 | 3,450 | On or after June 19, 2019 | ||||||
Series H 7.125% cumulative redeemable perpetual preferred stock | 287,500 | 11,500 | On or after April 13, 2020 | ||||||
Series I 7.15% cumulative redeemable perpetual preferred stock | 345,000 | 13,800 | On or after June 5, 2022 | ||||||
Total preferred stock | $ | 1,643,723 | 65,749 |
(1) | Callable at principal amount only if CLNS common stock has traded at least 130% of the conversion price for 20 of 30 consecutive trading days. |
(2) | Subsequent to the second quarter 2017, the Company repurchased the remaining $1 million principal amount of the 7.25% exchangeable senior notes. |
Colony NorthStar, Inc. | Supplemental Financial Report | 17 |
IIIe. Capitalization - Debt Maturity and Amortization Schedules | |
($ in thousands; as of June 30, 2017) | |||||||||||||||||||||||
Consolidated debt maturity and amortization schedule | |||||||||||||||||||||||
Payments due by period(1) | |||||||||||||||||||||||
Q3-Q4 2017 | 2018 | 2019 | 2020 | 2021 and after | Total | ||||||||||||||||||
$1,000,000 Revolving credit facility | $ | — | $ | — | $ | — | $ | — | $ | 71,000 | $ | 71,000 | |||||||||||
Convertible/exchangeable senior notes | — | — | — | — | 619,905 | 619,905 | |||||||||||||||||
Corporate aircraft promissory note | 974 | 2,029 | 2,134 | 2,244 | 32,789 | 40,170 | |||||||||||||||||
TruPS | — | — | — | — | 280,117 | 280,117 | |||||||||||||||||
Investment-level debt: | |||||||||||||||||||||||
Healthcare | 290,224 | 10,032 | 2,236,224 | 61,245 | 765,046 | 3,362,771 | |||||||||||||||||
Industrial | 391 | 806 | 839 | 874 | 782,209 | 785,119 | |||||||||||||||||
Hospitality | 327,182 | — | 512,000 | 132,250 | 1,630,000 | 2,601,432 | |||||||||||||||||
Other Equity and Debt(2) | 308,203 | 417,823 | 462,931 | 85,964 | 1,548,617 | 2,823,538 | |||||||||||||||||
Total debt(3) | $ | 926,974 | $ | 430,690 | $ | 3,214,128 | $ | 282,577 | $ | 5,729,683 | $ | 10,584,052 | |||||||||||
Pro rata debt maturity and amortization schedule | |||||||||||||||||||||||
Payments due by period(1) | |||||||||||||||||||||||
Q3-Q4 2017 | 2018 | 2019 | 2020 | 2021 and after | Total | ||||||||||||||||||
$1,000,000 Revolving credit facility | $ | — | $ | — | $ | — | $ | — | $ | 71,000 | $ | 71,000 | |||||||||||
Convertible/exchangeable senior notes | — | — | — | — | 619,905 | 619,905 | |||||||||||||||||
Corporate aircraft promissory note | 974 | 2,029 | 2,134 | 2,244 | 32,789 | 40,170 | |||||||||||||||||
TruPS | — | — | — | — | 280,117 | 280,117 | |||||||||||||||||
Investment-level debt: | |||||||||||||||||||||||
Healthcare | 202,496 | 7,498 | 1,574,085 | 45,787 | 571,324 | 2,401,190 | |||||||||||||||||
Industrial | 167 | 344 | 358 | 373 | 333,953 | 335,195 | |||||||||||||||||
Hospitality | 321,889 | — | 512,000 | 132,250 | 1,464,620 | 2,430,759 | |||||||||||||||||
Other Equity and Debt(2) | 176,241 | 170,751 | 357,224 | 43,404 | 1,387,043 | 2,134,663 | |||||||||||||||||
Total debt(3) | $ | 701,767 | $ | 180,622 | $ | 2,445,801 | $ | 224,058 | $ | 4,760,751 | $ | 8,312,999 |
(1) | Based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower’s discretion. |
(2) | Excludes $315 million principal balance of non-recourse CDO securitization debt. |
(3) | Includes $124 million principal balance of debt related to assets held for sale. |
Colony NorthStar, Inc. | Supplemental Financial Report | 18 |
IVa. Healthcare Real Estate - Summary Metrics and Operating Results | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | CLNS OP share of consolidated amount(2) | |||||||
Net operating income | Consolidated amount(1) | |||||||
Net operating income: | ||||||||
MOB's | $ | 14,408 | $ | 10,287 | ||||
Senior Housing - Operating | 19,418 | 13,845 | ||||||
Triple-Net Lease: | ||||||||
Senior Housing | 14,407 | 10,287 | ||||||
Skilled Nursing Facilities | 24,904 | 17,781 | ||||||
Hospitals | 5,375 | 3,851 | ||||||
Total net operating income | $ | 78,512 | $ | 56,051 | ||||
Annualized net operating income | $ | 314,048 | $ | 224,204 |
Portfolio overview | Total number of buildings | Capacity | % Occupied | TTM Lease Coverage | WA Remaining Lease Term | ||||||||
MOB's | 113 | 4.0 million sq. ft. | 84.0 | % | N/A | 5.0 | |||||||
Senior Housing - Operating | 109 | 6,436 units | 86.7 | % | N/A | N/A | |||||||
Triple-Net Lease: | |||||||||||||
Senior Housing | 82 | 4,065 units | 83.6 | % | 1.5x | 11.3 | |||||||
Skilled Nursing Facilities | 107 | 12,794 beds | 83.4 | % | 1.3x | 7.7 | |||||||
Hospitals | 14 | 872 beds | 63.4 | % | 3.3x | 11.9 | |||||||
Total / W.A. | 425 | 83.0 | % | 1.6x | 9.4 |
Same store financial/operating results related to the segment | |||||||||||||||||||||
% Occupied(3) | TTM Lease Coverage(4) | NOI | |||||||||||||||||||
Q2 2017 | Q1 2017 | 3/31/2017 | 12/31/2016 | Q2 2017 | Q1 2017 | % Change | |||||||||||||||
MOB's | 84.0 | % | 85.1 | % | n/a | n/a | $ | 14,408 | $ | 13,593 | 6.0 | % | |||||||||
Senior Housing - Operating | 86.7 | % | 86.8 | % | n/a | n/a | 19,418 | 18,333 | 5.9 | % | |||||||||||
Triple-Net Lease: | |||||||||||||||||||||
Senior Housing | 83.6 | % | 85.7 | % | 1.5x | 1.5x | 14,407 | 13,503 | 6.7 | % | |||||||||||
Skilled Nursing Facilities | 83.4 | % | 84.2 | % | 1.3x | 1.4x | 24,904 | 28,451 | (12.5 | )% | |||||||||||
Hospitals | 63.4 | % | 60.9 | % | 3.3x | 3.7x | 5,375 | 5,418 | (0.8 | )% | |||||||||||
Total / W.A. | 83.0 | % | 83.6 | % | 1.6x | 1.7x | $ | 78,512 | $ | 79,298 | (1.0 | )% |
(1) | Consolidated NOI includes $1.4 million of interest earned related to $70 million of healthcare real estate development loans related to the Company’s healthcare real estate portfolio. This interest income is in the Interest Income line item on the Company’s Statement of Operations for the three months ended June 30, 2017. For a reconciliation of net income/(loss) attributable to common stockholders to NOI, please refer to the appendix to this presentation. |
(2) | CLNS OP Share represents Consolidated NOI multiplied by CLNS OP's interest as of June 30, 2017. |
(3) | Occupancy % for Senior Housing - Operating represents average of the presented quarter, MOB’s is as of last day in the quarter and for Triple-Net Lease represents average of the prior quarter. Occupancy represents real estate property operator’s patient occupancy for all types except MOB. |
(4) | Represents the ratio of EBITDAR to cash rent on a trailing twelve month basis. |
Colony NorthStar, Inc. | Supplemental Financial Report | 19 |
IVb. Healthcare Real Estate - Portfolio Overview | |
(As of or for the three months ended June 30, 2017, unless otherwise noted) | |||||||||||||||
Triple-Net Lease Coverage(1) | % of Total Portfolio March 31, 2017 TTM NOI | ||||||||||||||
March 31, 2017 TTM Lease Coverage | # of Leases | Senior Housing | Skilled Nursing Facilities & Hospitals | % Total NOI | WA Remaining Lease Term | ||||||||||
Less than 0.99x | 4 | 2 | % | 9 | % | 11 | % | 5 yrs | |||||||
1.00x - 1.09x | 1 | 1 | % | — | 1 | % | 13 yrs | ||||||||
1.10x - 1.19x | 3 | — | 10 | % | 10 | % | 10 yrs | ||||||||
1.20x - 1.29x | 3 | 2 | % | 9 | % | 11 | % | 10 yrs | |||||||
1.30x - 1.39x | — | — | — | — | — | ||||||||||
1.40x - 1.49x | 1 | — | 1 | % | 1 | % | 9 yrs | ||||||||
1.50x and greater | 6 | 10 | % | 11 | % | 21 | % | 10 yrs | |||||||
Total / W.A. | 18 | 15 | % | 40 | % | 55 | % | 9 yrs |
Revenue Mix(2) | March 31, 2017 TTM | ||||||||
Private Pay | Medicare | Medicaid | |||||||
MOB's | 100 | % | — | — | |||||
Senior Housing - Operating | 86 | % | 4 | % | 10 | % | |||
Triple-Net Lease: | |||||||||
Senior Housing | 64 | % | — | 36 | % | ||||
Skilled Nursing Facilities | 22 | % | 20 | % | 58 | % | |||
Hospitals | 12 | % | 38 | % | 50 | % | |||
W.A. | 56 | % | 11 | % | 33 | % |
(1) | Represents the ratio of EBITDAR to cash rent on a trailing twelve month basis. Represents leases with EBITDAR coverage in each listed range. Excludes interest income associated with triple-net lease senior housing and hospital types. Caring Homes (U.K.) lease (EBITDAR) coverage includes additional collateral provided by the operator. |
(2) | Revenue mix represents percentage of revenues derived from private, Medicare and Medicaid payor sources. The payor source percentages for the hospital category excludes two operating partners, whom do not track or report payor source data and totals approximately one-third of NOI in the hospital category. Overall percentages are weighted by NOI exposure in each category. |
Colony NorthStar, Inc. | Supplemental Financial Report | 20 |
IVb. Healthcare Real Estate - Portfolio Overview (cont’d) | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | |||||||
Top 10 Geographic Locations by NOI | |||||||
Number of buildings | NOI | ||||||
UK | 43 | $ | 8,887 | ||||
Indiana | 55 | 7,349 | |||||
Florida | 27 | 7,060 | |||||
Illinois | 39 | 6,200 | |||||
Oregon | 31 | 5,134 | |||||
Texas | 32 | 5,036 | |||||
California | 18 | 4,863 | |||||
Georgia | 22 | 4,661 | |||||
Pennsylvania | 11 | 4,650 | |||||
Ohio | 35 | 4,517 | |||||
Total | 313 | $ | 58,357 |
Top 10 Operators/Tenants by NOI | ||||||||||||||||
Property Type/Primary Segment | Number of buildings | NOI | % Occupied | TTM Lease Coverage | WA Remaining Lease Term | |||||||||||
Senior Lifestyle | Sr. Housing / RIDEA | 82 | $ | 15,289 | 87.3 | % | n/a | n/a | ||||||||
Caring Homes (U.K.)(1) | Sr. Housing / NNN | 43 | 7,706 | 88.1 | % | 1.8x | 14 yrs | |||||||||
Sentosa(2) | SNF / NNN | 11 | 4,650 | 89.5 | % | 1.2x | 12 yrs | |||||||||
Wellington Healthcare | SNF / NNN | 11 | 4,389 | 89.3 | % | 1.1x | 10 yrs | |||||||||
Frontier | Sr. Housing / RIDEA / NNN | 20 | 3,989 | 82.7 | % | n/a | n/a | |||||||||
Miller | SNF / NNN | 28 | 3,781 | 71.4 | % | 2.0x | - | |||||||||
Consulate | SNF / NNN | 10 | 2,833 | 85.5 | % | 1.2x | 11 yrs | |||||||||
Opis | SNF / NNN | 11 | 2,732 | 91.8 | % | 1.2x | 7 yrs | |||||||||
Grace | SNF / NNN | 9 | 2,534 | 83.7 | % | 1.0x | 4 yrs | |||||||||
Carillon | SNF / NNN | 6 | 1,832 | 65.9 | % | 1.2x | 11 yrs | |||||||||
Total | 231 | $ | 49,735 |
(1) | Caring Homes (U.K.) lease (EBITDAR) coverage includes additional collateral provided by the operator. |
(2) | During the second quarter 2017, SentosaCare, LLC (“Sentosa”) acquired Mid-Atlantic Healthcare’s operating platform and Colony NorthStar assigned existing healthcare property operating leases formerly with Mid-Atlantic Healthcare to Sentosa. Terms of the lease agreements remain the same. |
Colony NorthStar, Inc. | Supplemental Financial Report | 21 |
Va. Industrial Real Estate - Summary Metrics and Operating Results | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | CLNS OP share of consolidated amount(1) | |||||||
Net operating income | Consolidated amount(1) | |||||||
Net operating income | $ | 38,470 | $ | 15,773 | ||||
Annualized net operating income | $ | 153,880 | $ | 63,092 |
Portfolio overview | |||
Total number of buildings | 354 | ||
Rentable square feet (thousands) | 39,345 | ||
% leased at end of period | 94.6 | % | |
Average remaining lease term | 3.7 years |
Same store financial/operating results related to the segment | |||||||||||
Q2 2017 | Q1 2017 | % Change | |||||||||
Same store number of buildings | 337 | 337 | — | ||||||||
% leased at end of period | 95.6 | % | 95.9 | % | (0.3 | )% | |||||
Revenues | $ | 52,104 | $ | 52,318 | (0.4 | )% | |||||
NOI | $ | 36,996 | $ | 36,417 | 1.6 | % |
Recent acquisitions | |||||||||||||||
Property / portfolio name | Acquisition date | Number of buildings | Rentable square feet(thousands) | % leased | Purchase price | ||||||||||
Q2 2017 acquisitions: | |||||||||||||||
Phoenix industrial portfolio | 4/20/2017 | 3 | 178 | 27.3 | % | $ | 16,100 | ||||||||
Phoenix industrial portfolio | 5/31/2017 | 2 | 325 | 46.2 | % | 18,700 | |||||||||
Las Vegas industrial property | 6/2/2017 | 1 | 312 | 41.0 | % | 25,100 | |||||||||
Phoenix industrial portfolio | 6/20/2017 | 2 | 246 | 91.3 | % | 18,400 | |||||||||
Phoenix industrial portfolio | 6/22/2017 | 2 | 558 | 100.0 | % | 39,000 | |||||||||
Total / W.A. | 10 | 1,619 | 68.5 | % | $ | 117,300 | |||||||||
Q3 2017 acquisitions: | |||||||||||||||
Baltimore / Philadelphia industrial portfolio | 7/17/2017 | 20 | 2,810 | 93.6 | % | $ | 201,000 | ||||||||
Total | 20 | 2,810 | 93.6 | % | $ | 201,000 |
(1) | CLNS OP Share represents Consolidated NOI multiplied by CLNS OP's interest as of June 30, 2017. For a reconciliation of net income/(loss) attributable to common stockholders to NOI, please refer to the appendix to this presentation. |
Colony NorthStar, Inc. | Supplemental Financial Report | 22 |
Vb. Industrial Real Estate - Portfolio Overview | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | |||||||||||||
Top 10 Geographic Locations by NOI | Number of buildings | Rentable square feet (thousands) | NOI | % leased at end of period | |||||||||
Atlanta | 82 | 8,105 | $ | 7,738 | 97.0 | % | |||||||
Dallas | 69 | 7,075 | 7,247 | 99.1 | % | ||||||||
Chicago | 26 | 2,786 | 2,891 | 96.9 | % | ||||||||
New Jersey, South / Philadelphia | 30 | 3,328 | 3,613 | 96.1 | % | ||||||||
Orlando | 18 | 3,032 | 3,429 | 98.4 | % | ||||||||
Minneapolis | 18 | 2,814 | 2,998 | 94.5 | % | ||||||||
Phoenix | 27 | 3,012 | 1,575 | 83.3 | % | ||||||||
Houston | 21 | 1,713 | 1,950 | 90.0 | % | ||||||||
Kansas City | 9 | 1,664 | 1,410 | 100.0 | % | ||||||||
Salt Lake City | 16 | 1,269 | 1,265 | 97.9 | % | ||||||||
Total / W.A. | 316 | 34,798 | $ | 34,116 | 95.9 | % |
Top 10 Tenant Base by Industry | ||||||
Industry | Total leased square feet (thousands) | % of total | ||||
Warehousing & Transportation | 14,576 | 39.1 | % | |||
Manufacturing | 6,264 | 16.8 | % | |||
Professional, Scientific, and Technical Services | 3,980 | 10.7 | % | |||
Wholesale Trade | 3,941 | 10.6 | % | |||
Health & Science | 3,003 | 8.1 | % | |||
Construction & Contractors | 2,486 | 6.7 | % | |||
Retail Trade | 1,260 | 3.4 | % | |||
Entertainment & Recreation | 1,058 | 2.8 | % | |||
Media & Information | 544 | 1.5 | % | |||
Public Administration & Government | 113 | 0.3 | % | |||
Total | 37,225 | 100.0 | % |
Colony NorthStar, Inc. | Supplemental Financial Report | 23 |
VIa. Hospitality Real Estate - Summary Metrics and Operating Results | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | CLNS OP share of consolidated amount(2) | |||||||
EBITDA | Consolidated amount(1) | |||||||
EBITDA: | ||||||||
Select Service | $ | 45,244 | $ | 42,665 | ||||
Extended Stay | 32,231 | 30,394 | ||||||
Full Service | 4,216 | 3,976 | ||||||
Total EBITDA | $ | 81,691 | $ | 77,035 | ||||
Annualized EBITDA(3) | $ | 279,764 | $ | 263,818 |
Portfolio overview by type | ||||||||||||||||||||||||
Number of hotels | Number of rooms | Avg. qtr. % occupancy | Avg. daily rate (ADR) | RevPAR | Q2 2017 EBITDA | EBITDA margin | ||||||||||||||||||
Select service | 97 | 13,193 | 75.8 | % | $ | 125 | $ | 95 | $ | 45,244 | 35.8 | % | ||||||||||||
Extended stay | 66 | 7,936 | 81.7 | % | 134 | 110 | 32,231 | 40.0 | % | |||||||||||||||
Full service | 4 | 962 | 80.6 | % | 157 | 126 | 4,216 | 30.0 | % | |||||||||||||||
Total / W.A. | 167 | 22,091 | 78.2 | % | $ | 130 | $ | 102 | $ | 81,691 | 36.5 | % |
Same store financial/operating results related to the segment by brand | |||||||||||||||||||||||||||||||||
Avg. qtr. % occupancy | Avg. daily rate (ADR) | RevPAR | EBITDA | ||||||||||||||||||||||||||||||
Brand | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | % Change | ||||||||||||||||||||||||
Marriott | 77.0 | % | 78.8 | % | $ | 129 | $ | 128 | $ | 99 | $ | 101 | $ | 62,834 | $ | 65,547 | (4.1 | )% | |||||||||||||||
Hilton | 82.0 | % | 81.5 | % | 131 | 127 | 108 | 103 | 13,862 | 12,999 | 6.6 | % | |||||||||||||||||||||
Other | 84.2 | % | 77.9 | % | 139 | 142 | 117 | 110 | 4,995 | 4,567 | 9.4 | % | |||||||||||||||||||||
Total / W.A. | 78.2 | % | 79.2 | % | $ | 130 | $ | 129 | $ | 102 | $ | 102 | $ | 81,691 | $ | 83,113 | (1.7 | )% |
(1) | Q2 2017 Consolidated EBITDA excludes FF&E reserve amounts of $9.7 million. For a reconciliation of net income/(loss) attributable to common stockholders to EBITDA please refer to the appendix to this presentation. |
(2) | CLNS OP Share represents Consolidated EBITDA multiplied by CLNS OP's interest as of June 30, 2017. |
(3) | Annualized EBITDA is calculated using the pro rata percentage of historical Q2 2016 EBITDA relative to historical full year 2016 EBITDA to account for seasonality. |
Colony NorthStar, Inc. | Supplemental Financial Report | 24 |
VIb. Hospitality Real Estate - Portfolio Overview | |
($ in thousands; as of June 30, 2017, unless otherwise noted) | |||||||||||||||||||
Top 10 Geographic Locations by EBITDA | Number of hotels | Number of rooms | Number of rooms-select service | Number of rooms-extended stay | Number of rooms-full service | EBITDA | |||||||||||||
California | 18 | 2,254 | 1,243 | 1,011 | — | $ | 12,434 | ||||||||||||
Texas | 28 | 3,230 | 1,952 | 1,278 | — | 7,553 | |||||||||||||
Florida | 12 | 2,060 | 1,186 | 291 | 583 | 6,940 | |||||||||||||
New Jersey | 12 | 1,884 | 718 | 942 | 224 | 6,613 | |||||||||||||
Virginia | 11 | 1,473 | 1,210 | 263 | — | 5,210 | |||||||||||||
Washington | 5 | 664 | 160 | 504 | — | 4,203 | |||||||||||||
North Carolina | 7 | 981 | 831 | 150 | — | 3,953 | |||||||||||||
New York | 8 | 1,010 | 710 | 300 | — | 3,682 | |||||||||||||
Georgia | 7 | 974 | 694 | 280 | — | 3,361 | |||||||||||||
Maryland | 7 | 953 | 666 | 132 | 155 | 3,141 | |||||||||||||
Total / W.A. | 115 | 15,483 | 9,370 | 5,151 | 962 | $ | 57,090 |
Colony NorthStar, Inc. | Supplemental Financial Report | 25 |
VIIa. Other Equity and Debt - Net Lease and Other Real Estate Equity | |
($ in thousands; as of June 30, 2017, unless otherwise noted) | ||||||||||||||||||||
Net Lease Real Estate Equity | Consolidated amount | CLNS OP share of consolidated amount | ||||||||||||||||||
Number of buildings | Rentable square feet (thousands) | NOI(1) | NOI(1) | % leased at end of period | Weighted average remaining lease term | |||||||||||||||
U.S.: | ||||||||||||||||||||
Office | 8 | 1,716 | $ | 5,558 | $ | 5,540 | 94.7 | % | 4.0 | |||||||||||
Retail | 10 | 468 | 1,839 | 1,839 | 100.0 | % | 6.6 | |||||||||||||
Industrial | 3 | 1,140 | 598 | 598 | 100.0 | % | 12.0 | |||||||||||||
Europe: | ||||||||||||||||||||
Office | 29 | 1,478 | 5,054 | 5,054 | 100.0 | % | 12.6 | |||||||||||||
Education | 20 | 304 | 2,999 | 2,999 | 100.0 | % | 17.5 | |||||||||||||
Total / W.A. | 70 | 5,106 | $ | 16,048 | $ | 16,030 | 98.2 | % | 9.3 |
Other Real Estate Equity | Consolidated amount | CLNS OP share of consolidated amount | ||||||||||||||||||
Number of buildings | Rentable square feet (thousands) | Undepreciated carrying value | Undepreciated carrying value | % leased at end of period | Weighted average remaining lease term | |||||||||||||||
U.S.: | ||||||||||||||||||||
Office | 15 | 2,511 | $ | 713,586 | $ | 667,866 | 80.9 | % | 8.1 | |||||||||||
Multifamily | 1 | N/A | 56,964 | 51,292 | 94.9 | % | N/A | |||||||||||||
Hotel | 5 | N/A | 25,965 | 8,665 | 69.0 | % | N/A | |||||||||||||
Europe: | ||||||||||||||||||||
Industrial | 38 | 2,795 | 159,377 | 72,069 | 100.0 | % | 6.8 | |||||||||||||
Office | 37 | 973 | 142,534 | 65,556 | 70.5 | % | 11.5 | |||||||||||||
Mixed / Retail | 269 | 8,598 | 1,138,215 | 336,312 | 70.5 | % | 7.1 | |||||||||||||
Total / W.A. | 365 | 14,877 | $ | 2,236,641 | $ | 1,201,760 | 77.8 | % | 7.5 | |||||||||||
Unconsolidated joint ventures (Net Lease & Other RE Equity) | 404,375 | 356,227 |
(1) | Excludes approximately $0.3 million of NOI related to an asset sold during the second quarter 2017. |
Colony NorthStar, Inc. | Supplemental Financial Report | 26 |
VIIb. Other Equity and Debt - Real Estate Debt | |
($ in thousands, except as noted; as of June 30, 2017, unless otherwise noted) | ||||||||
Portfolio Overview(1) | ||||||||
Consolidated amount | CLNS OP share of consolidated amount | |||||||
Non-PCI loans | ||||||||
Loans receivables held for investment, net | $ | 3,093,333 | $ | 2,158,580 | ||||
Loans receivables held for sale, net | — | — | ||||||
Non-recourse investment-level financing (UPB) | 924,038 | 859,198 | ||||||
Carrying value - equity method investments | 328,783 | 138,126 | ||||||
PCI loans | ||||||||
Loans receivables held for investment, net | 842,235 | 579,715 | ||||||
Non-recourse investment-level financing (UPB) | 48,134 | 15,059 | ||||||
Carrying value - equity method investments | 2,621 | 2,621 | ||||||
Other | ||||||||
Carrying value - real estate assets (REO) | 61,361 | 22,357 | ||||||
Warehouse facility (UPB) | 11,175 | 11,175 | ||||||
Subscription line (UPB) | 67,727 | 13,489 | ||||||
Total Portfolio | ||||||||
Loans receivables held for investment, net | 3,935,568 | 2,738,295 | ||||||
Loans receivables held for sale, net | — | — | ||||||
Carrying value - equity method investments | 331,404 | 140,747 | ||||||
Carrying value - real estate assets (REO) | 61,361 | 22,357 | ||||||
Non-recourse investment-level financing (UPB) | 972,172 | 874,257 | ||||||
Warehouse facility (UPB) | 11,175 | 11,175 | ||||||
Subscription Line (UPB) | 67,727 | 13,489 | ||||||
Total debt (UPB) | 1,051,074 | 898,921 |
(1) | Excludes $3 million carrying value of real estate debt investments held in a CDO securitization and $70 million carrying value of healthcare real estate development loans related to the Company’s healthcare real estate portfolio. |
Colony NorthStar, Inc. | Supplemental Financial Report | 27 |
VIIb. Other Equity and Debt - Real Estate Debt (cont’d) | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | ||||||||||||||
Loans receivable held for investment by loan type(1) | ||||||||||||||
Consolidated amount | CLNS OP share of consolidated amount | |||||||||||||
Net carrying amount | Net carrying amount | Weighted average yield | Weighted average maturity in years | |||||||||||
Non-PCI loans | ||||||||||||||
Fixed rate | ||||||||||||||
First mortgage loans | $ | 717,411 | $ | 330,789 | 9.1 | % | 1.9 | |||||||
Securitized mortgage loans | 55,272 | 55,272 | 5.6 | % | 13.5 | |||||||||
Second mortgage loans / B-notes | 225,570 | 131,531 | 9.1 | % | 2.3 | |||||||||
Mezzanine loans | 397,865 | 231,952 | 8.7 | % | 2.9 | |||||||||
Corporate | 52,655 | 52,655 | 11.3 | % | 9.3 | |||||||||
Total fixed rate non-PCI loans | 1,448,773 | 802,199 | 8.9 | % | 3.5 | |||||||||
Variable rate | ||||||||||||||
First mortgage loans | 598,077 | 495,266 | 8.5 | % | 1.3 | |||||||||
Securitized mortgage loans | 611,979 | 602,917 | 6.3 | % | 3.3 | |||||||||
Second mortgage loans / B-notes | 90,588 | 68,759 | 13.3 | % | 4.1 | |||||||||
Mezzanine loans | 347,844 | 192,762 | 11.8 | % | 0.2 | |||||||||
Total variable rate non-PCI loans | 1,648,488 | 1,359,704 | 8.2 | % | 2.1 | |||||||||
Total non-PCI loans | 3,097,261 | 2,161,901 | ||||||||||||
Allowance for loan losses | (3,928 | ) | (3,321 | ) | ||||||||||
Total non-PCI loans, net of allowance for loan losses | 3,093,333 | 2,158,580 | ||||||||||||
PCI loans | ||||||||||||||
First mortgage loans | 901,762 | 591,326 | ||||||||||||
Securitized mortgage loans | 3,358 | 3,358 | ||||||||||||
Mezzanine loans | 3,671 | 3,671 | ||||||||||||
Total PCI loans | 908,791 | 598,355 | ||||||||||||
Allowance for loan losses | (66,556 | ) | (18,640 | ) | ||||||||||
Total PCI loans, net of allowance for loan losses | 842,235 | 579,715 | ||||||||||||
Total loans receivable, net of allowance for loan losses | $ | 3,935,568 | $ | 2,738,295 |
(1) | Excludes $3 million carrying value of real estate debt investments held in a CDO securitization and $70 million carrying value of healthcare real estate development loans related to the Company’s healthcare real estate portfolio. |
Colony NorthStar, Inc. | Supplemental Financial Report | 28 |
VIIb. Other Equity and Debt - Real Estate Debt (cont’d) | |
($ in thousands; as of or for the three months ended June 30, 2017, unless otherwise noted) | ||||||||||||||
Loans receivable held for investment by collateral type(1) | ||||||||||||||
Consolidated amount | CLNS OP share of consolidated amount | |||||||||||||
Net carrying amount | Net carrying amount | Weighted average yield | Weighted average maturity in years | |||||||||||
Non-PCI Loans | ||||||||||||||
Hospitality | $ | 1,016,560 | $ | 620,112 | 10.1 | % | 2.4 | |||||||
Retail | 554,028 | 413,957 | 6.0 | % | 1.3 | |||||||||
Office | 494,354 | 345,494 | 9.0 | % | 1.5 | |||||||||
Multifamily | 478,731 | 440,902 | 6.6 | % | 7.1 | |||||||||
Other | 249,880 | 153,408 | 9.3 | % | 0.6 | |||||||||
Land | 167,412 | 83,706 | 11.5 | % | 1.3 | |||||||||
Residential | 62,734 | 31,367 | 13.4 | % | 0.6 | |||||||||
Corporate | 52,655 | 52,655 | 11.3 | % | 9.3 | |||||||||
Industrial | 16,979 | 16,979 | 7.2 | % | 1.2 | |||||||||
Total non-PCI loans, net of allowance for loan losses | 3,093,333 | 2,158,580 | 8.5 | % | 3.0 | |||||||||
PCI Loans | ||||||||||||||
Office | 305,647 | 283,886 | ||||||||||||
Retail | 144,828 | 90,870 | ||||||||||||
Multifamily | 121,026 | 42,299 | ||||||||||||
Hospitality | 100,033 | 66,056 | ||||||||||||
Industrial | 62,765 | 39,680 | ||||||||||||
Other | 47,478 | 17,492 | ||||||||||||
Land | 41,497 | 31,994 | ||||||||||||
Residential | 18,961 | 7,438 | ||||||||||||
Total PCI loans, net of allowance for loan losses | 842,235 | 579,715 | ||||||||||||
Total loans receivable, net of allowance for loan losses | $ | 3,935,568 | $ | 2,738,295 |
(1) | Excludes $3 million carrying value of real estate debt investments held in a CDO securitization and $70 million carrying value of healthcare real estate development loans related to the Company’s healthcare real estate portfolio. |
Colony NorthStar, Inc. | Supplemental Financial Report | 29 |
VIIc. Other Equity and Debt - Special Situations | |
($ in thousands, except as noted and per share data; as of June 30, 2017, unless otherwise noted) | Consolidated amount | CLNS OP share of consolidated amount | ||||||
NorthStar Realty Europe Corp. (NYSE: NRE) | ||||||||
CLNS OP interest in NRE as of August 4, 2017 | 8.9 | % | 8.9 | % | ||||
NRE shares beneficially owned by OP and common stockholders | 4.9 million | 4.9 million | ||||||
NRE share price as of August 4, 2017 | $ | 12.93 | $ | 12.93 | ||||
Total market value of shares | 63,851 | 63,851 | ||||||
Colony American Finance ("CAF")(1) | ||||||||
Carrying value | 55,996 | 55,996 | ||||||
CLNS OP interest in CAF | 17.4 | % | 17.4 | % | ||||
Albertsons | ||||||||
Carrying value | 89,261 | 44,621 | ||||||
Number of post-IPO shares in Albertsons pursuant to preliminary prospectus dated October 2, 2015 | 8.45 million | |||||||
CLNS OP % ownership interest in post-IPO AB Acquisition LLC based on preliminary prospectus dated October 2, 2015 | 2.17 | % | ||||||
Other GP Co-investments(2) | ||||||||
Carrying value | 54,786 | 54,355 | ||||||
(1) | Subsequent to the second quarter 2017, the Company sold its entire interest in CAF. |
(2) | Other GP co-investments represents: i) seed investments in certain registered investment companies sponsored by the Company and ii) investments in the general partnership of third party real estate operators primarily to seed investment commitments with their limited partners for which the Company will receive its share of earnings and incentive fees. These investments are accounted for as Investments in Unconsolidated Ventures. |
Colony NorthStar, Inc. | Supplemental Financial Report | 30 |
VIId. Other Equity and Debt - Real Estate PE Fund Interests | |
($ in thousands, except as noted; as of or for the three months ended June 30, 2017, unless otherwise noted) | ||||
Operating Results | ||||
Q2 2017 income (excluding an $11.0 million adjustment to basis in earnings of unconsolidated ventures) | $ | 11,501 | ||
Return of capital | 40,980 | |||
Total distributions | 52,481 | |||
Contributions | 788 | |||
Net | $ | 51,693 | ||
Carrying value | $ | 338,679 | ||
Weighted average remaining term as of June 30, 2017 | 1.0 yrs | |||
Portfolio Overview(1) | ||||
Number of funds | 98 | |||
Number of general partners(2) | 64 | |||
Underlying assets, at cost | $ | 20,656,200 | ||
Implied leverage(3) | 44 | % | ||
Expected remaining future capital contributions(4) | $ | 3,703 |
Investment by Types(1)(5) | Investment by Geography(1)(5) | ||||||||
Type | % | Location | % | ||||||
Office | 18 | % | Northeast | 21 | % | ||||
Land | 17 | % | West | 18 | % | ||||
Multifamily | 14 | % | Primarily Various U.S. | 17 | % | ||||
Cash | 11 | % | Cash | 11 | % | ||||
Lodging | 10 | % | Southeast | 10 | % | ||||
Other | 9 | % | Midwest | 9 | % | ||||
Retail | 6 | % | Mid-Atlantic | 7 | % | ||||
Debt | 5 | % | Asia | 5 | % | ||||
Residential/Condo | 5 | % | Europe | 2 | % | ||||
Financial Services | 3 | % | |||||||
Industrial | 1 | % | |||||||
Healthcare | 1 | % | |||||||
Total | 100 | % | Total | 100 | % |
(1) | Amounts presented exclude an immaterial economic interest retained in a real estate private equity fund portfolio which NRF sold in the fourth quarter 2015. |
(2) | Includes 10 funds and 16 general partners held across multiple PE Investments. |
(3) | Represents implied leverage for funds with investment-level financing, calculated as debt divided by assets at fair value. |
(4) | Represents the estimated amount of expected future capital contributions to funds as of June 30, 2017. |
(5) | Represents the underlying fund interests in PE Investments by investment type and geographic location based on NAV as of March 31, 2017. |
Colony NorthStar, Inc. | Supplemental Financial Report | 31 |
VIIe. Other Equity and Debt - CRE Securities | |
($ in thousands; as of June 30, 2017) | ||||||||
Portfolio Overview | ||||||||
Owned Bonds and Equity of Deconsolidated CDO's | Principal amount | Carrying Value | ||||||
Total owned deconsolidated CDO bonds | $ | 358,436 | $ | 88,079 | ||||
Total owned deconsolidated CDO equity | 17,304 | |||||||
Consolidated CDO's | Principal amount | Carrying Value | ||||||
Total consolidated CDO investments | $ | 692,885 | $ | 271,745 | ||||
Total consolidated non-recourse CDO financing | 315,151 | 220,856 | ||||||
Net book value - consolidated CDOs | $ | 377,734 | $ | 50,889 | ||||
CMBS | Principal amount | Carrying Value | ||||||
$ | 98,268 | $ | 36,014 | |||||
Income | ||||||||
Q2 2017 aggregate income | $ | 10,261 |
Colony NorthStar, Inc. | Supplemental Financial Report | 32 |
VIIIa. Investment Management - Summary Metrics | |
($ in thousands, except as noted; as of June 30, 2017) | ||||
Overview | ||||
Segment | Q2 2017 Fee Revenue - CLNS OP Share | |||
Institutional funds | $ | 15,448 | ||
Retail companies | 20,240 | |||
NorthStar Realty Europe (NYSE:NRE) | 3,555 | |||
Townsend | 11,542 | |||
Pro rata corporate investments (earnings of investments in unconsolidated ventures) | 2,770 | |||
Total Q2 2017 reported fee revenue and earnings of investments in unconsolidated ventures | $ | 53,555 | ||
Operating Results | ||||
Revenues | ||||
Total fee revenue and earnings of investments in unconsolidated ventures | $ | 53,555 | ||
Other income and commission income | 7,449 | |||
Expenses | ||||
Investment, servicing and commission expenses | 2,442 | |||
Depreciation and amortization | 15,212 | |||
Compensation expense | 19,123 | |||
Administrative expenses | 5,650 | |||
Total expenses | 42,427 | |||
Other gain, net | 479 | |||
Income tax benefit | 6,308 | |||
Net income attributable to common interests in OP and common stockholders | 25,364 | |||
Real estate depreciation and amortization | 1,088 | |||
(Gain) loss from sales of depreciable real estate | 1,025 | |||
Equity-based compensation expense | 3,411 | |||
Straight-line rent revenue and straight-line rent expense on ground leases | (164 | ) | ||
Unrealized fair value gains or losses and foreign currency remeasurements | (965 | ) | ||
Amortization and impairment of investment management intangibles | 15,296 | |||
Non-real estate depreciation and amortization | 51 | |||
Amortization of deferred financing costs and debt premiums and discounts | 133 | |||
Tax benefit, net | (3,625 | ) | ||
Core FFO | $ | 41,614 |
Colony NorthStar, Inc. | Supplemental Financial Report | 33 |
VIIIb. Investment Management – Assets Under Management | |
($ in millions, except as noted; as of June 30, 2017, unless otherwise noted) | ||||||||
Segment | Products | Description | AUM CLNS OP Share | |||||
Institutional Funds | • Credit ($3.7 billion) • Core plus / value-added ($1.6 billion) • Opportunistic ($1.9 billion) • Colony Industrial ($1.5 billion) • Other co-investment vehicles ($1.3 billion) | • 26 years of institutional investment management experience • Sponsorship of private equity funds and vehicles earning asset management fees and performance fees • More than 300 investor relationships • $10 billion of private equity capital raised since the beginning of 2008; $25 billion of private equity capital raised since inception(2) | $ | 10,014 | ||||
Retail Companies | • NorthStar Income I ($1.6 billion) • NorthStar Healthcare ($3.4 billion) • NorthStar Income II ($1.8 billion) • NorthStar/RXR NY Metro Real Estate • NorthStar Real Estate Capital Income Fund • NorthStar/Townsend Institutional Real Estate Fund(1) | • Wholly-owned broker-deal subsidiary engaged as dealer- manager for all retail product offerings • Over $4 billion of capital raised to date with over $5 billion of current effective products • Manage public non-traded vehicles earning asset management, performance, acquisition and disposition fees | 6,836 | |||||
Public Company | • NorthStar Realty Europe Corp. | • Manage NYSE-listed European equity REIT • Earns base management fee with potential for incentive fees | 2,109 | |||||
Townsend | • Segregated Mandates • Commingled Funds • Advisory Services | • 84% investment in The Townsend Group • Manage custom portfolios and fund-of-funds primary invested in direct real estate funds • Source co-investments and joint ventures alongside GPs • Fees comprised of recurring investment management fees, recurring advisory fees, and performance fees | 14,229 | |||||
Pro Rata Corporate Investments | • RXR Realty • American Healthcare Investors • Steelwave • Hamburg Trust | • CLNS recognizes at-share earnings from underlying pro rata corporate investments • 27% investment in RXR Realty, a real estate owner, developer and investment management company with over $15 billion of AUM • 43% investment in American Healthcare Investors, a healthcare investment management firm and sponsor of non-traded vehicles with $2.9 billion of AUM | 7,132 | |||||
Total | $ | 40,320 |
(1) | NorthStar/Townsend Institutional Real Estate Fund Inc. filed an amended registration statement on Form N-2 to the SEC in May 2017, which as of August 4, 2017, is not yet effective. |
(2) | Capital raised includes amounts raised by Colony Capital, LLC since its inception in 1991. |
Colony NorthStar, Inc. | Supplemental Financial Report | 34 |
VIIIc. Investment Management - Retail Companies | |
($ in thousands, except as noted; as of June 30, 2017, unless otherwise noted) | ||||||||||||||||||||||||
NorthStar Income | NorthStar Healthcare | NorthStar Income II | NorthStar/RXR NY Metro Real Estate(1) | NorthStar Real Estate Capital Income Fund | Total | |||||||||||||||||||
Capital Raising Status | Completed July 2013 | Completed January 2016 | Completed November 2016 | Active | Active | |||||||||||||||||||
Primary Strategy | CRE Debt | Healthcare Equity and Debt | CRE Debt | NY Metro Area CRE Equity and Debt | CRE Debt | |||||||||||||||||||
Offering Size | $1.2 billion(2) | $2.1 billion(2) | $1.65 billion(2) | $2.0 billion(2) | $3.2 billion(2) | $10.15 billion | ||||||||||||||||||
Capital Raised(3) | ||||||||||||||||||||||||
During Q2 2017 | $ | 8,779 | $ | 16,975 | $ | 8,841 | $ | 12,375 | $ | 12,144 | $ | 59,114 | ||||||||||||
Year-to-date through 8-4-17 | 23,912 | 44,909 | 23,406 | 18,879 | 12,346 | 123,452 | ||||||||||||||||||
Inception to 8-4-17 | 1,310,624 | 1,914,051 | 1,162,867 | 29,389 | 12,346 | 4,429,277 | ||||||||||||||||||
Investments(4) | ||||||||||||||||||||||||
During Q2 2017 | 60,721 | — | 34,000 | 9,500 | 15,761 | 119,982 | ||||||||||||||||||
As of 6-30-17 | 1,553,806 | 3,415,706 | 1,830,741 | 20,531 | 15,761 | 6,836,545 | ||||||||||||||||||
Cash as of 6-30-17 | 174,567 | 135,639 | 125,792 | 12,150 | 109 | 448,257 | ||||||||||||||||||
Fees earned during Q2 2017 | ||||||||||||||||||||||||
Asset management fees | 4,542 | 8,386 | 5,454 | 42 | 9 | 18,433 | ||||||||||||||||||
Acquisition fees | — | 51 | 340 | — | — | 391 | ||||||||||||||||||
Disposition fees | 1,278 | — | 138 | — | — | 1,416 | ||||||||||||||||||
Total fees | $ | 5,820 | $ | 8,437 | $ | 5,932 | $ | 42 | $ | 9 | $ | 20,240 |
(1) | Fees earned are split 50/50 with partner. |
(2) | Represents dollar amounts of shares registered to offer pursuant to each company's public offering, distribution reinvestment plan, and follow-on public offering. |
(3) | Includes amounts contributed by CLNS. |
(4) | Based on cost for real estate equity investments, which includes net purchase price allocation related to intangibles, deferred costs and other assets, if any, committed principal amount for real estate debt and securities and carrying value plus deferred acquisition prices for limited partnership interests in private equity funds. |
Colony NorthStar, Inc. | Supplemental Financial Report | 35 |
Colony NorthStar, Inc. | Supplemental Financial Report | 36 |
IXa. Appendices - Definitions | |
Colony NorthStar, Inc. | Supplemental Financial Report | 37 |
IXb. Appendices - Reconciliation of Net Income (Loss) to NOI/EBITDA | |
($ in thousands; for the three months ended June 30, 2017) | ||||||||||||||||
NOI and EBITDA Determined as Follows | Healthcare | Industrial | Hospitality | Other Equity and Debt—Net Lease Properties | ||||||||||||
Total revenues | $ | 159,357 | $ | 56,125 | $ | 221,522 | $ | 20,154 | ||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (8,385 | ) | (1,150 | ) | (13 | ) | (548 | ) | ||||||||
Property operating expenses(1) | (72,460 | ) | (16,195 | ) | (139,818 | ) | (3,308 | ) | ||||||||
Compensation expense(1) | — | (310 | ) | — | — | |||||||||||
NOI or EBITDA(2) | $ | 78,512 | $ | 38,470 | $ | 81,691 | $ | 16,298 | ||||||||
Reconciliation of Net Income (Loss) from Continuing Operations to NOI/EBITDA | ||||||||||||||||
Healthcare | Industrial | Hospitality | ||||||||||||||
Net income (loss) from continuing operations | $ | (11,394 | ) | $ | 9,100 | $ | 5,750 | |||||||||
Adjustments: | ||||||||||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (8,385 | ) | (1,150 | ) | (13 | ) | ||||||||||
Interest expense | 47,844 | 7,934 | 35,884 | |||||||||||||
Transaction, investment and servicing costs | 1,566 | 26 | 3,049 | |||||||||||||
Depreciation and amortization | 49,577 | 25,804 | 33,508 | |||||||||||||
Compensation and administrative expense | 2,003 | 2,733 | 2,385 | |||||||||||||
Gain on sale of real estate assets | — | (8,695 | ) | — | ||||||||||||
Other (gain) loss, net | (2,489 | ) | — | 219 | ||||||||||||
Earnings from investments in unconsolidated ventures | — | (28 | ) | — | ||||||||||||
Income tax (benefit) expense | (210 | ) | 2,746 | 909 | ||||||||||||
NOI or EBITDA | $ | 78,512 | $ | 38,470 | $ | 81,691 |
(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. |
(2) | For other equity and debt - net lease properties, NOI includes approximately $0.3 million related to an asset sold during the second quarter 2017. |
Colony NorthStar, Inc. | Supplemental Financial Report | 38 |
IXb. Appendices - Reconciliation of Net Income (Loss) to NOI/EBITDA (cont’d) | |
($ in thousands; for the three months ended June 30, 2017) | ||||
Reconciliation of Net Income from Continuing Operations of Other Equity and Debt Segment to NOI of Net Lease Real Estate Equity | ||||
Other Equity and Debt | ||||
Net income from continuing operations | $ | 185,630 | ||
Adjustments: | ||||
Property operating income of other real estate equity | (45,815 | ) | ||
Straight-line rent revenue and amortization of above- and below-market lease intangibles for net lease real estate equity | (548 | ) | ||
Interest income | (109,582 | ) | ||
Fee and other income | (4,422 | ) | ||
Property operating expense of other real estate equity | 21,936 | |||
Interest expense | 35,630 | |||
Transaction, investment and servicing costs | 6,383 | |||
Depreciation and amortization | 26,894 | |||
Provision for loan loss | 1,067 | |||
Impairment loss | 12,761 | |||
Compensation and administrative expense | 8,594 | |||
Gain on sale of real estate assets | (6,495 | ) | ||
Other loss, net | 3,114 | |||
Earnings of investments in unconsolidated ventures | (119,554 | ) | ||
Income tax expense | 705 | |||
NOI of net lease real estate equity | $ | 16,298 | ||
Less: asset sold during the second quarter 2017 | (250 | ) | ||
NOI of net lease real estate equity, excluding assets sold during the second quarter 2017 | $ | 16,048 |
Colony NorthStar, Inc. | Supplemental Financial Report | 39 |