FORM 8-K |
COLONY CAPITAL, 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-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(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. |
Date: | August 8, 2018 | COLONY CAPITAL, INC. | |
By: | /s/ Darren J. Tangen | ||
Darren J. Tangen | |||
Chief Financial Officer and Treasurer |
• | Second quarter 2018 net loss attributable to common stockholders of $(92.8) million, or $(0.19) per share, and Core FFO of $93.5 million, or $0.18 per share |
• | The Company’s Board of Directors declared and paid a second quarter 2018 dividend of $0.11 per share of Class A and B common stock |
• | During the second quarter 2018, the Company raised approximately $1.8 billion of third-party capital (including amounts related to affiliates) from institutional clients |
• | Digital Colony, the Company's digital real estate infrastructure vehicle established in partnership with Digital Bridge, raised $932 million during the second quarter 2018 and had an aggregate $3.0 billion of committed capital as of June 30, 2018, inclusive of a $229 million capital commitment by certain subsidiaries of the Company |
• | The Company raised $469 million of third-party capital for its investment in AccorInvest, the property arm of AccorHotels |
• | The Company raised $175 million of third-party capital in the industrial platform |
• | The Company raised $95 million of third-party co-investment capital for a Strategic Other Equity and Debt investment |
• | The Company completed over $440 million of Other Equity and Debt asset monetizations, with net equity proceeds of approximately $295 million |
• | The Company invested $81 million within vehicles that earn investment management economics and are classified as additions to the Strategic Other Equity and Debt segment |
• | The Company repurchased approximately 12.5 million shares of its Class A common stock at an average price of $5.80 per share, or $73 million, resulting in aggregate year-to-date 2018 repurchases of approximately 54.8 million shares at an average price of $5.82 per share, or $319 million |
• | The Company changed its name from Colony NorthStar, Inc. to Colony Capital, Inc. and its ticker symbol on the New York Stock Exchange from “CLNS” to “CLNY” |
• | Subsequent to the second quarter 2018: |
• | The Company redeemed all of the shares of its 8.5% Series D cumulative redeemable perpetual preferred stock for $200 million, resulting in year-to-date preferred stock redemptions and common stock repurchases of $519 million |
• | The Company monetized or was under contract to sell over $500 million of Other Equity and Debt investments with estimated net equity proceeds of $310 million, which would bring year-to-date asset monetizations to $1.0 billion with net equity proceeds of approximately $650 million |
• | The Company refinanced approximately $500 million of consolidated debt in the Hospitality Real Estate segment extending the fully extended maturity date from 2019 to 2025 |
• | As of August 6, 2018, Digital Colony had an aggregate $3.3 billion of capital commitments, inclusive of a hard cap limit of $250 million capital commitment by certain subsidiaries of the Company |
• | The Company received an additional commitment of €250 million from a third-party institutional investor to increase the investment in AccorInvest |
• | As of August 6, 2018, The Company has approximately $1.1 billion of liquidity through cash-on-hand and availability under its revolving credit facility |
Consolidated | CLNY OP | Same Store | ||||||||||||||||||||
NOI | Share NOI(1) | Consolidated NOI(2) | Occupancy %(3) | TTM Lease Coverage(4) | ||||||||||||||||||
($ In millions) | Q2 2018 | Q2 2018 | Q2 2018 | Q1 2018 | Q2 2018 | Q1 2018 | 3/31/18 | 12/31/17 | ||||||||||||||
Senior Housing - Operating | $ | 16.8 | $ | 11.9 | $ | 17.4 | $ | 17.5 | 86.8 | % | 86.4 | % | N/A | N/A | ||||||||
Medical Office Buildings | 13.7 | 9.7 | 13.7 | 13.3 | 82.6 | % | 83.2 | % | N/A | N/A | ||||||||||||
Triple-Net Lease: | ||||||||||||||||||||||
Senior Housing | 14.5 | 10.3 | 15.5 | 15.5 | 82.3 | % | 83.2 | % | 1.4x | 1.4x | ||||||||||||
Skilled Nursing Facilities | 24.1 | 17.1 | 26.0 | 26.9 | 82.2 | % | 82.7 | % | 1.2x | 1.2x | ||||||||||||
Hospitals | 4.8 | 3.4 | 4.8 | 4.9 | 59.6 | % | 55.3 | % | 3.3x | 3.5x | ||||||||||||
Healthcare Total | $ | 73.9 | $ | 52.4 | $ | 77.4 | $ | 78.1 |
(1) | CLNY OP Share NOI represents second quarter 2018 Consolidated NOI multiplied by CLNY OP’s ownership interest as of June 30, 2018. |
(2) | Same Store Consolidated NOI excludes $3.2 million of termination fee revenue in Q1 2018 and excludes $3.6 million of non-recurring bad debt expense in Q2 2018. |
(3) | Occupancy % for Senior Housing - Operating represents average during the presented quarter, MOB’s is as of last day in the quarter and for other types represents average during the prior quarter. |
(4) | Represents the ratio of the tenant’s/operator’s EBITDAR to cash rent payable to the Company’s Healthcare Real Estate segment on a trailing twelve month basis. |
Consolidated | CLNY OP | Same Store | |||||||||||||||||
NOI | Share NOI (1) | Consolidated NOI | Leased %(2) | ||||||||||||||||
($ In millions) | Q2 2018 | Q2 2018 | Q2 2018 | Q1 2018 | Q2 2018 | Q1 2018 | |||||||||||||
Industrial | $ | 49.1 | $ | 18.3 | $ | 35.5 | $ | 35.1 | 93.9 | % | 95.1 | % |
(1) | CLNY OP Share NOI represents second quarter 2018 Consolidated NOI multiplied by CLNY OP’s ownership interest as of June 30, 2018. |
(2) | Leased % represents the last day of the presented quarter. |
Same Store | |||||||||||||||||||||||||||||||||
Consolidated | CLNY OP Share | Avg. Daily Rate | RevPAR(3) | ||||||||||||||||||||||||||||||
EBITDA (1) | EBITDA(2) | Consolidated EBITDA | Occupancy %(4) | (In dollars)(4) | (In dollars)(4) | ||||||||||||||||||||||||||||
($ In millions) | Q2 2018 | Q2 2018 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | |||||||||||||||||||||||
Marriott | $ | 66.3 | $ | 62.5 | $ | 66.3 | $ | 62.8 | 78.3 | % | 77.0 | % | $ | 131 | $ | 129 | $ | 102 | $ | 99 | |||||||||||||
Hilton | 14.8 | 14.0 | 14.8 | 13.9 | 83.9 | % | 82.0 | % | 135 | 131 | 113 | 107 | |||||||||||||||||||||
Other | 4.9 | 4.6 | 4.9 | 5.0 | 86.3 | % | 84.2 | % | 138 | 139 | 119 | 117 | |||||||||||||||||||||
Total/W.A. | $ | 86.0 | $ | 81.1 | $ | 86.0 | $ | 81.7 | 79.6 | % | 78.2 | % | $ | 132 | $ | 130 | $ | 105 | $ | 102 |
(1) | Q2 2018 Consolidated EBITDA excludes a FF&E reserve contribution amount of $10.0 million. |
(2) | CLNY OP Share EBITDA represents second quarter 2018 Consolidated EBITDA multiplied by CLNY OP’s ownership interest as of June 30, 2018. |
(3) | RevPAR, or revenue per available room, represents a hotel's total guestroom revenue divided by the room count and the number of days in the period being measured. |
(4) | For each metric, data represents average during the presented quarter. |
CLNY OP Share | |||||||||||||||
Undepreciated Carrying Value | |||||||||||||||
June 30, 2018 | March 31, 2018 | ||||||||||||||
($ In millions) | Assets | Equity | Assets | Equity | |||||||||||
Strategic: | |||||||||||||||
GP co-investments | $ | 701 | $ | 422 | $ | 665 | $ | 400 | |||||||
Interest in NRE | 75 | 75 | 74 | 74 | |||||||||||
Strategic Subtotal | 776 | 497 | 739 | 474 | |||||||||||
Non-Strategic: | |||||||||||||||
Other Real Estate Equity & Albertsons | 1,749 | 968 | 2,039 | 1,104 | |||||||||||
Real Estate Debt | 443 | 419 | 660 | 615 | |||||||||||
Net Lease Real Estate Equity | 585 | 250 | 583 | 239 | |||||||||||
Real Estate Private Equity Funds and CRE Securities | 221 | 221 | 304 | 304 | |||||||||||
Non-Strategic Subtotal | 2,998 | 1,858 | 3,586 | 2,262 | |||||||||||
Total Other Equity and Debt | $ | 3,774 | $ | 2,355 | $ | 4,325 | $ | 2,736 |
June 30, 2018 | March 31, 2018 | ||||||||||||
($ In billions) | Amount | % of Grand Total | Amount | % of Grand Total | |||||||||
Balance Sheet (CLNY OP Share): | |||||||||||||
Healthcare | $ | 4.1 | 9.4 | % | $ | 4.1 | 9.5 | % | |||||
Industrial | 1.2 | 2.8 | % | 1.3 | 3.0 | % | |||||||
Hospitality | 3.9 | 9.1 | % | 3.9 | 9.3 | % | |||||||
Other Equity and Debt | 3.8 | 8.8 | % | 4.3 | 10.0 | % | |||||||
CLNC: Investments contributed to CLNC(1) | 1.8 | 4.2 | % | 1.8 | 4.2 | % | |||||||
Balance Sheet Subtotal | 14.8 | 34.3 | % | 15.4 | 36.0 | % | |||||||
Investment Management: | |||||||||||||
Institutional Funds | 10.0 | 23.3 | % | 9.8 | 22.8 | % | |||||||
Retail Companies | 3.6 | 8.4 | % | 3.7 | 8.6 | % | |||||||
Colony Credit Real Estate (NYSE:CLNC)(2) | 3.1 | 7.2 | % | 3.1 | 7.2 | % | |||||||
NorthStar Realty Europe (NYSE:NRE) | 2.1 | 4.9 | % | 2.2 | 5.1 | % | |||||||
Non-Wholly Owned REIM Platforms(3) | 9.4 | 21.9 | % | 8.7 | 20.3 | % | |||||||
Investment Management Subtotal | 28.2 | 65.7 | % | 27.5 | 64.0 | % | |||||||
Grand Total | $ | 43.0 | 100.0 | % | $ | 42.9 | 100.0 | % |
(1) | Represents the Company’s 37% ownership share of CLNC’s total pro-rata share of assets, excluding securitization trust liabilities, of $4.9 billion and $4.9 billion as of June 30, 2018 and March 31, 2018, respectively. |
(2) | Represents 3rd party 63% ownership share of CLNC’s total pro-rata share of assets, excluding securitization trust liabilities, of $4.9 billion and $4.9 billion as of June 30, 2018 and March 31, 2018, respectively. |
(3) | REIM: Real Estate Investment Management |
June 30, 2018 (unaudited) | December 31, 2017 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 480,230 | $ | 921,822 | ||||
Restricted cash | 398,981 | 471,078 | ||||||
Real estate, net | 14,254,108 | 14,464,258 | ||||||
Loans receivable, net ($0 and $45,423 at fair value, respectively) | 1,791,889 | 3,223,762 | ||||||
Investments in unconsolidated ventures ($217,098 and $363,901 at fair value, respectively) | 2,491,342 | 1,655,239 | ||||||
Securities, at fair value | 144,421 | 383,942 | ||||||
Goodwill | 1,534,561 | 1,534,561 | ||||||
Deferred leasing costs and intangible assets, net | 610,853 | 852,872 | ||||||
Assets held for sale ($52,123 and $49,498 at fair value, respectively) | 637,802 | 781,630 | ||||||
Other assets ($25,206 and $10,150 at fair value, respectively) | 431,222 | 444,968 | ||||||
Due from affiliates | 44,308 | 51,518 | ||||||
Total assets | $ | 22,819,717 | $ | 24,785,650 | ||||
Liabilities | ||||||||
Debt, net ($0 and $44,542 at fair value, respectively) | $ | 9,994,115 | $ | 10,827,810 | ||||
Accrued and other liabilities ($110,513 and $212,267 at fair value, respectively) | 679,658 | 898,161 | ||||||
Intangible liabilities, net | 173,702 | 191,109 | ||||||
Liabilities related to assets held for sale | 256,477 | 273,298 | ||||||
Due to affiliates ($0 and $20,650 at fair value, respectively) | 9,383 | 23,534 | ||||||
Dividends and distributions payable | 86,656 | 188,202 | ||||||
Preferred stock redemptions payable | 200,000 | — | ||||||
Total liabilities | 11,399,991 | 12,402,114 | ||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interests | 33,523 | 34,144 | ||||||
Equity | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, $0.01 par value per share; $1,436,605 and $1,636,605 liquidation preference, respectively; 250,000 shares authorized; 57,464 and 65,464 shares issued and outstanding, respectively | 1,407,495 | 1,606,966 | ||||||
Common stock, $0.01 par value per share | ||||||||
Class A, 949,000 shares authorized; 489,764 and 542,599 shares issued and outstanding, respectively | 4,898 | 5,426 | ||||||
Class B, 1,000 shares authorized; 708 and 736 shares issued and outstanding, respectively | 7 | 7 | ||||||
Additional paid-in capital | 7,616,918 | 7,913,622 | ||||||
Distributions in excess of earnings | (1,443,717 | ) | (1,165,412 | ) | ||||
Accumulated other comprehensive income | 23,930 | 47,316 | ||||||
Total stockholders’ equity | 7,609,531 | 8,407,925 | ||||||
Noncontrolling interests in investment entities | 3,393,981 | 3,539,072 | ||||||
Noncontrolling interests in Operating Company | 382,691 | 402,395 | ||||||
Total equity | 11,386,203 | 12,349,392 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 22,819,717 | $ | 24,785,650 |
Three Months Ended June 30, | ||||||||
2018 | 2017 | |||||||
Revenues | ||||||||
Property operating income | $ | 590,638 | $ | 500,531 | ||||
Interest income | 44,183 | 111,263 | ||||||
Fee income | 39,924 | 54,319 | ||||||
Other income | 14,854 | 13,259 | ||||||
Total revenues | 689,599 | 679,372 | ||||||
Expenses | ||||||||
Property operating expense | 320,674 | 253,717 | ||||||
Interest expense | 153,309 | 140,260 | ||||||
Investment, servicing and commission expense | 25,951 | 13,740 | ||||||
Transaction costs | 2,641 | 2,440 | ||||||
Depreciation and amortization | 137,896 | 153,111 | ||||||
Provision for loan loss | 13,933 | 1,067 | ||||||
Impairment loss | 69,834 | 12,761 | ||||||
Compensation expense | 55,159 | 80,759 | ||||||
Administrative expenses | 25,790 | 30,145 | ||||||
Total expenses | 805,187 | 688,000 | ||||||
Other income (loss) | ||||||||
Gain on sale of real estate assets | 42,702 | 15,190 | ||||||
Other gain (loss), net | 28,798 | (23,850 | ) | |||||
Earnings from investments in unconsolidated ventures | 1,875 | 122,394 | ||||||
Income (loss) before income taxes | (42,213 | ) | 105,106 | |||||
Income tax benefit | 584 | 86 | ||||||
Net income (loss) from continuing operations | (41,629 | ) | 105,192 | |||||
Loss from discontinued operations | (219 | ) | — | |||||
Net income (loss) | (41,848 | ) | 105,192 | |||||
Net income (loss) attributable to noncontrolling interests: | ||||||||
Redeemable noncontrolling interests | 1,873 | 720 | ||||||
Investment entities | 27,420 | 23,800 | ||||||
Operating Company | (5,728 | ) | 2,330 | |||||
Net income (loss) attributable to Colony Capital, Inc. | (65,413 | ) | 78,342 | |||||
Preferred stock redemption | (3,995 | ) | 5,448 | |||||
Preferred stock dividends | 31,388 | 34,339 | ||||||
Net income (loss) attributable to common stockholders | $ | (92,806 | ) | $ | 38,555 | |||
Basic earnings (loss) per share | ||||||||
Income (loss) from continuing operations per basic common share | $ | (0.19 | ) | $ | 0.07 | |||
Net income (loss) per basic common share | $ | (0.19 | ) | $ | 0.07 | |||
Diluted earnings (loss) per share | ||||||||
Income (loss) from continuing operations per diluted common share | $ | (0.19 | ) | $ | 0.07 | |||
Net income (loss) per diluted common share | $ | (0.19 | ) | $ | 0.07 | |||
Weighted average number of shares | ||||||||
Basic | 488,676 | 544,023 | ||||||
Diluted | 488,676 | 544,023 |
Three Months Ended June 30, 2018 | ||||
Net loss attributable to common stockholders | $ | (92,806 | ) | |
Adjustments for FFO attributable to common interests in Operating Company and common stockholders: | ||||
Net loss attributable to noncontrolling common interests in Operating Company | (5,728 | ) | ||
Real estate depreciation and amortization | 140,599 | |||
Impairment of real estate | 9,522 | |||
Gain from sales of real estate | (42,750 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (29,471 | ) | ||
FFO attributable to common interests in Operating Company and common stockholders | (20,634 | ) | ||
Additional adjustments for Core FFO attributable to common interests in Operating Company and common stockholders: | ||||
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) | 29,987 | |||
Gains and losses from sales of businesses within the Investment Management segment and impairment write-downs associated with the Investment Management segment | 16,437 | |||
Equity-based compensation expense | 10,033 | |||
Straight-line rent revenue and expense | (4,489 | ) | ||
Change in fair value of contingent consideration | 8,750 | |||
Amortization of acquired above- and below-market lease values, net | 433 | |||
Amortization of deferred financing costs and debt premiums and discounts | 21,634 | |||
Unrealized fair value gains and foreign currency remeasurements | (23,971 | ) | ||
Acquisition and merger-related transaction costs | 3,549 | |||
Merger integration costs (2) | 8,472 | |||
Amortization and impairment of investment management intangibles | 66,550 | |||
Non-real estate depreciation and amortization | 2,100 | |||
Gain on remeasurement of consolidated investment entities and the effect of amortization thereof | 1,875 | |||
Deferred tax benefit, net | (1,475 | ) | ||
Preferred share redemption gain | (3,995 | ) | ||
Less: Adjustments attributable to noncontrolling interests in investment entities | (21,769 | ) | ||
Core FFO attributable to common interests in Operating Company and common stockholders | $ | 93,487 | ||
FFO per common share / common OP unit (3) | $ | (0.04 | ) | |
FFO per common share / common OP unit—diluted (4) | $ | (0.04 | ) | |
Core FFO per common share / common OP unit (3) | $ | 0.18 | ||
Core FFO per common share / common OP unit—diluted (4) | $ | 0.18 | ||
Weighted average number of common OP units outstanding used for FFO and Core FFO per common share and OP unit (3) | 525,587 | |||
Weighted average number of common OP units outstanding used for FFO per common share and OP unit—diluted (3)(4) | 525,587 | |||
Weighted average number of common OP units outstanding used for Core FFO per common share and OP unit—diluted (3)(4) | 553,749 |
(1) | Net of $2.5 million CLNY OP share 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) | 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. |
(3) | Calculated based on weighted average shares outstanding including participating securities and assuming the exchange of all common OP units outstanding for common shares. |
(4) | For the three months ended June 30, 2018, included in the calculation of diluted Core FFO per share is the effect of adding back $4.5 million of interest expense associated with convertible senior notes, 25.4 million weighted average dilutive common share equivalents for the assumed conversion of the convertible senior notes, and 2.1 million performance stock units, which are subject to both a service condition and market condition. Such interest expense, weighted average dilutive common share equivalents, and performance stock units are excluded for the calculation of diluted FFO as the effect would be antidilutive. |
Three Months Ended June 30, 2018 | ||||||||||||
(In thousands) | Healthcare | Industrial | Hospitality | |||||||||
Total revenues | $ | 145,419 | $ | 72,477 | $ | 229,373 | ||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (1,580 | ) | (2,554 | ) | (6 | ) | ||||||
Interest income | — | (62 | ) | — | ||||||||
Other income | — | — | (68 | ) | ||||||||
Property operating expenses (1) | (69,983 | ) | (20,483 | ) | (143,321 | ) | ||||||
Compensation expense (1) | — | (300 | ) | — | ||||||||
NOI or EBITDA | $ | 73,856 | $ | 49,078 | $ | 85,978 |
(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, 2018 | ||||||||||||
(In thousands) | Healthcare | Industrial | Hospitality | |||||||||
Net income (loss) from continuing operations | $ | (20,080 | ) | $ | 4,668 | $ | 6,771 | |||||
Adjustments: | ||||||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (1,580 | ) | (2,554 | ) | (6 | ) | ||||||
Interest income | — | (62 | ) | — | ||||||||
Interest expense | 45,179 | 10,856 | 36,494 | |||||||||
Transaction, investment and servicing costs | 3,110 | 60 | 3,546 | |||||||||
Depreciation and amortization | 38,229 | 32,482 | 35,925 | |||||||||
Impairment loss | 1,982 | 174 | — | |||||||||
Compensation and administrative expense | 2,196 | 3,416 | 1,598 | |||||||||
Other (gain) loss, net | 4,465 | — | 162 | |||||||||
Other income | — | — | (68 | ) | ||||||||
Income tax (benefit) expense | 355 | 38 | 1,556 | |||||||||
NOI or EBITDA | $ | 73,856 | $ | 49,078 | $ | 85,978 |
(In thousands) | Net income (Loss) From Continuing Operations | |||||||
Healthcare | $ | (20,080 | ) | |||||
Industrial | 4,668 | |||||||
Hospitality | 6,771 | |||||||
CLNC | 5,413 | |||||||
Other Equity and Debt | 61,853 | |||||||
Investment Management | (48,700 | ) | ||||||
Amounts Not Allocated to Segments | (51,554 | ) | ||||||
Total Consolidated | $ | (41,629 | ) |
Cautionary Statement Regarding Forward-Looking Statements |
Colony Capital | Supplemental Financial Report |
Important Note Regarding Non-GAAP Financial Measures |
Colony Capital | Supplemental Financial Report |
Important Note Regarding Non-GAAP Financial Measures |
Colony Capital | Supplemental Financial Report |
Note Regarding CLNY Reportable Segments / Consolidated and OP Share of Consolidated Amounts |
Colony Capital | 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. | CLNC | ||
a. | Overview | 26 | |
VIII. | Other Equity and Debt | ||
a. | Strategic Investments | 27 | |
b. | Net Lease and Other Real Estate Equity | 28 | |
c. | Real Estate Debt | 29-31 | |
d. | Real Estate PE Fund Interests | 32 | |
e. | CRE Securities | 33 | |
IX. | Investment Management | ||
a. | Summary Metrics | 34 | |
b. | Assets Under Management | 35 | |
X. | Appendices | ||
a. | Definitions | 37-38 | |
b. | Reconciliation of Net Income (Loss) to NOI/EBITDA | 39-40 | |
Colony Capital | 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, 2018, unless otherwise noted) (Unaudited) | |||
Financial Data | |||
Net income (loss) attributable to common stockholders | $ | (92,806 | ) |
Net income (loss) attributable to common stockholders per basic share | (0.19 | ) | |
Core FFO | 93,487 | ||
Core FFO per basic share | 0.18 | ||
Q3 2018 dividend per share | 0.11 | ||
Annualized Q3 2018 dividend per share | 0.44 | ||
Balance Sheet, Capitalization and Trading Statistics | |||
Total consolidated assets | $ | 22,819,717 | |
CLNY OP share of consolidated assets | 16,441,662 | ||
Total consolidated debt(1) | 10,414,000 | ||
CLNY OP share of consolidated debt(1) | 7,665,995 | ||
Shares and OP units outstanding as of June 30, 2018 | 520,893 | ||
Shares and OP units outstanding as of August 6, 2018(2) | 520,893 | ||
Share price as of August 6, 2018 | 6.15 | ||
Market value of common equity & OP units as of August 6, 2018 | 3,203,492 | ||
Liquidation preference of perpetual preferred equity(3) | 1,436,605 | ||
Insider ownership of shares and OP units | 6.5 | % | |
Total Assets Under Management ("AUM") | $ 43.0 billion | ||
Fee Earning Equity Under Management ("FEEUM") | $ 17.1 billion |
(1) | Represents principal balance and excludes debt issuance costs, discounts and premiums. See additional footnotes on page 14. |
Colony Capital | Supplemental Financial Report | 6 |
Ib. Overview - Summary of Segments |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount | |||||
Healthcare Real Estate | |||||||
Q2 2018 net operating income(1)(2) | $ | 73,856 | $ | 52,363 | |||
Annualized net operating income(3) | 309,824 | 219,662 | |||||
Investment-level non-recourse financing(4) | 3,257,637 | 2,321,387 | |||||
Industrial Real Estate | |||||||
Q2 2018 net operating income(2) | 49,078 | 18,257 | |||||
Annualized net operating income | 196,312 | 73,028 | |||||
Investment-level non-recourse financing(4) | 1,073,830 | 399,788 | |||||
Hospitality Real Estate | |||||||
Q2 2018 EBITDA(2) | 85,978 | 81,077 | |||||
TTM EBITDA(5) | 284,144 | 267,946 | |||||
Investment-level non-recourse financing(4) | 2,610,222 | 2,439,349 |
(1) | NOI includes $1.4 million consolidated or $1.0 million CLNY OP share of interest earned related to $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. This interest income is in the Interest Income line item on the Company’s Statement of Operations for the three months ended June 30, 2018. |
(2) | For a reconciliation of net income/(loss) attributable to common stockholders to NOI/EBITDA, please refer to the appendix to this presentation. |
(3) | Excludes $3.6 million consolidated or $2.5 million CLNY OP share of second quarter 2018 non-recurring bad debt expense. |
(4) | Represents unpaid principal balance. |
(5) | TTM = trailing twelve month. |
Colony Capital | Supplemental Financial Report | 7 |
Ib. Overview - Summary of Segments (cont’d) |
($ in thousands except as noted; as of or for the three months ended June 30, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount | |||||
CLNC | |||||||
Net carrying value of 37% interest | $ | 1,146,355 | $ | 1,146,355 | |||
Other Equity and Debt(1) | |||||||
1) Strategic Investments | |||||||
a) GP co-investments - net carrying value | 1,144,034 | 421,742 | |||||
b) Net carrying value of 11% interest in NRE | 75,044 | 75,044 | |||||
2) Net lease real estate equity | |||||||
a) Q2 2018 net operating income | 7,929 | 7,797 | |||||
b) Investment-level non-recourse financing(2) | 335,375 | 334,739 | |||||
3) Other real estate equity | |||||||
a) Undepreciated carrying value of real estate assets(3) | 2,453,176 | 1,271,563 | |||||
b) Investment-level non-recourse financing(2) | 1,509,183 | 790,907 | |||||
c) Carrying value - unconsolidated / equity method investments (including Albertsons) | 554,714 | 477,016 | |||||
4) Real estate debt | |||||||
a) Carrying value - consolidated(4) | 614,491 | 407,556 | |||||
b) Investment-level non-recourse financing(2) | 36,747 | 23,779 | |||||
c) Carrying value - equity method investments | 28,405 | 20,895 | |||||
d) Carrying value - real estate assets (REO within debt portfolio) and other(3) | 25,721 | 14,689 | |||||
5) Real estate PE fund investments | |||||||
a) Carrying value | 142,744 | ||||||
6) CRE securities | |||||||
a) Net carrying value | 78,206 | ||||||
Investment Management | |||||||
Third-party AUM ($ in millions) | 28,144 | ||||||
FEEUM ($ in millions) | 17,080 | ||||||
Q2 2018 fee revenue and REIM platform earnings of investments in unconsolidated ventures | 39,116 | ||||||
Net Assets | |||||||
Cash and cash equivalents, restricted cash and other assets(5) | 1,194,887 | 902,574 | |||||
Accrued and other liabilities and dividends payable(6) | 912,833 | 745,867 | |||||
Net assets | 282,054 | 156,707 |
(1) | Includes assets classified as held for sale on the Company’s financial statements. |
(2) | Represents unpaid principal balance. |
(3) | Includes all components related to real estate assets, including tangible real estate and lease-related intangibles, and excludes accumulated depreciation. |
(4) | Excludes $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. |
(5) | Other assets exclude $10 million consolidated or $8 million CLNY OP share of deferred financing costs and restricted cash excludes $150 million consolidated or $83 million CLNY OP share of restricted cash which is included in the undepreciated carrying value of the hotel portfolio in Other Real Estate Equity shown on page 28. |
(6) | Accrued and other liabilities exclude $63 million consolidated and CLNY OP share of deferred tax liabilities and other liabilities which are not due in cash and includes $200 million preferred stock redemption payable. |
Colony Capital | Supplemental Financial Report | 8 |
IIa. Financial Results - Consolidated Balance Sheet |
($ in thousands, except per share data) (Unaudited) | As of June 30, 2018 | |||
Assets | ||||
Cash and cash equivalents | $ | 480,230 | ||
Restricted cash | 398,981 | |||
Real estate, net | 14,254,108 | |||
Loans receivable, net | 1,791,889 | |||
Investments in unconsolidated ventures | 2,491,342 | |||
Securities, at fair value | 144,421 | |||
Goodwill | 1,534,561 | |||
Deferred leasing costs and intangible assets, net | 610,853 | |||
Assets held for sale | 637,802 | |||
Other assets | 431,222 | |||
Due from affiliates | 44,308 | |||
Total assets | $ | 22,819,717 | ||
Liabilities | ||||
Debt, net | $ | 9,994,115 | ||
Accrued and other liabilities | 679,658 | |||
Intangible liabilities, net | 173,702 | |||
Liabilities related to assets held for sale | 256,477 | |||
Due to affiliates | 9,383 | |||
Dividends and distributions payable | 86,656 | |||
Preferred stock redemptions payable | 200,000 | |||
Total liabilities | 11,399,991 | |||
Commitments and contingencies | ||||
Redeemable noncontrolling interests | 33,523 | |||
Equity | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.01 par value per share; $1,436,605 liquidation preference; 250,000 shares authorized; 57,464 shares issued and outstanding | 1,407,495 | |||
Common stock, $0.01 par value per share | ||||
Class A, 949,000 shares authorized; 489,764 shares issued and outstanding | 4,898 | |||
Class B, 1,000 shares authorized; 708 shares issued and outstanding | 7 | |||
Additional paid-in capital | 7,616,918 | |||
Distributions in excess of earnings | (1,443,717 | ) | ||
Accumulated other comprehensive income (loss) | 23,930 | |||
Total stockholders’ equity | 7,609,531 | |||
Noncontrolling interests in investment entities | 3,393,981 | |||
Noncontrolling interests in Operating Company | 382,691 | |||
Total equity | 11,386,203 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ | 22,819,717 |
Colony Capital | Supplemental Financial Report | 9 |
IIb. Financial Results - Noncontrolling Interests’ Share Balance Sheet |
($ in thousands, except per share data) (Unaudited) | As of June 30, 2018 | |||
Assets | ||||
Cash and cash equivalents | $ | 182,307 | ||
Restricted cash | 126,115 | |||
Real estate, net | 4,677,850 | |||
Loans receivable, net | 740,195 | |||
Investments in unconsolidated ventures | 255,612 | |||
Securities, at fair value | 28,251 | |||
Goodwill | — | |||
Deferred leasing costs and intangible assets, net | 169,591 | |||
Assets held for sale | 144,912 | |||
Other assets | 59,530 | |||
Due from affiliates | (6,308 | ) | ||
Total assets | $ | 6,378,055 | ||
Liabilities | ||||
Debt, net | $ | 2,708,407 | ||
Accrued and other liabilities | 166,962 | |||
Intangible liabilities, net | 57,318 | |||
Liabilities related to assets held for sale | 17,860 | |||
Due to affiliates | 4 | |||
Dividends and distributions payable | — | |||
Preferred stock redemptions payable | — | |||
Total liabilities | 2,950,551 | |||
Commitments and contingencies | — | |||
Redeemable noncontrolling interests | 33,523 | |||
Equity | ||||
Stockholders’ equity: | ||||
Preferred stock, $0.01 par value per share; $1,436,605 liquidation preference; 250,000 shares authorized; 57,464 shares issued and outstanding | — | |||
Common stock, $0.01 par value per share | ||||
Class A, 949,000 shares authorized; 489,764 shares issued and outstanding | — | |||
Class B, 1,000 shares authorized; 708 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 | 3,393,981 | |||
Noncontrolling interests in Operating Company | — | |||
Total equity | 3,393,981 | |||
Total liabilities, redeemable noncontrolling interests and equity | $ | 6,378,055 |
Colony Capital | Supplemental Financial Report | 10 |
IIc. Financial Results - Consolidated Segment Operating Results |
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | CLNC | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||
Property operating income | $ | 143,839 | $ | 71,685 | $ | 229,259 | $ | — | $ | 145,855 | $ | — | $ | — | $ | 590,638 | ||||||||||||||||
Interest income | 1,409 | 62 | — | — | 42,586 | — | 126 | 44,183 | ||||||||||||||||||||||||
Fee income | — | — | — | — | — | 39,924 | — | 39,924 | ||||||||||||||||||||||||
Other income | 171 | 730 | 114 | — | 2,509 | 9,619 | 1,711 | 14,854 | ||||||||||||||||||||||||
Total revenues | 145,419 | 72,477 | 229,373 | — | 190,950 | 49,543 | 1,837 | 689,599 | ||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||
Property operating expense | 69,983 | 20,483 | 143,321 | — | 86,887 | — | — | 320,674 | ||||||||||||||||||||||||
Interest expense | 45,179 | 10,856 | 36,494 | — | 46,476 | — | 14,304 | 153,309 | ||||||||||||||||||||||||
Investment, servicing and commission expense | 3,110 | 60 | 3,546 | — | 11,028 | 5,923 | 2,284 | 25,951 | ||||||||||||||||||||||||
Transaction costs | — | — | — | — | 2,334 | — | 307 | 2,641 | ||||||||||||||||||||||||
Depreciation and amortization | 38,229 | 32,482 | 35,925 | — | 23,521 | 6,204 | 1,535 | 137,896 | ||||||||||||||||||||||||
Provision for loan loss | — | — | — | — | 13,933 | — | — | 13,933 | ||||||||||||||||||||||||
Impairment loss | 1,982 | 174 | — | — | 7,366 | 60,312 | — | 69,834 | ||||||||||||||||||||||||
Compensation expense | 1,751 | 2,632 | 1,514 | — | 2,783 | 15,299 | 31,180 | 55,159 | ||||||||||||||||||||||||
Administrative expenses | 445 | 1,084 | 84 | — | 3,192 | 1,959 | 19,026 | 25,790 | ||||||||||||||||||||||||
Total expenses | 160,679 | 67,771 | 220,884 | — | 197,520 | 89,697 | 68,636 | 805,187 | ||||||||||||||||||||||||
Other income (loss) | ||||||||||||||||||||||||||||||||
Gain on sale of real estate assets | — | — | — | — | 42,702 | — | — | 42,702 | ||||||||||||||||||||||||
Other gain (loss), net | (4,465 | ) | — | (162 | ) | — | 18,216 | (123 | ) | 15,332 | 28,798 | |||||||||||||||||||||
Earnings of investments in unconsolidated ventures | — | — | — | 5,413 | 7,767 | (11,305 | ) | — | 1,875 | |||||||||||||||||||||||
Income (loss) before income taxes | (19,725 | ) | 4,706 | 8,327 | 5,413 | 62,115 | (51,582 | ) | (51,467 | ) | (42,213 | ) | ||||||||||||||||||||
Income tax benefit (expense) | (355 | ) | (38 | ) | (1,556 | ) | — | (262 | ) | 2,882 | (87 | ) | 584 | |||||||||||||||||||
Net income (loss) from continuing operations | (20,080 | ) | 4,668 | 6,771 | 5,413 | 61,853 | (48,700 | ) | (51,554 | ) | (41,629 | ) | ||||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | (219 | ) | — | — | (219 | ) | ||||||||||||||||||||||
Net income (loss) | (20,080 | ) | 4,668 | 6,771 | 5,413 | 61,634 | (48,700 | ) | (51,554 | ) | (41,848 | ) | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests: | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | — | — | 1,873 | — | — | 1,873 | ||||||||||||||||||||||||
Investment entities | (4,841 | ) | 3,807 | 658 | — | 26,504 | 1,292 | — | 27,420 | |||||||||||||||||||||||
Operating Company | (883 | ) | 51 | 346 | 309 | 1,924 | (2,922 | ) | (4,553 | ) | (5,728 | ) | ||||||||||||||||||||
Net income (loss) attributable to Colony Capital, Inc. | (14,356 | ) | 810 | 5,767 | 5,104 | 31,333 | (47,070 | ) | (47,001 | ) | (65,413 | ) | ||||||||||||||||||||
Preferred stock redemption | — | — | — | — | — | — | (3,995 | ) | (3,995 | ) | ||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | 31,388 | 31,388 | ||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (14,356 | ) | $ | 810 | $ | 5,767 | $ | 5,104 | $ | 31,333 | $ | (47,070 | ) | $ | (74,394 | ) | $ | (92,806 | ) |
Colony Capital | Supplemental Financial Report | 11 |
IId. Financial Results - Noncontrolling Interests’ Share Segment Operating Results |
Three Months Ended June 30, 2018 | |||||||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | CLNC | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total | |||||||||||||||||||||||||
Revenues | — | ||||||||||||||||||||||||||||||||
Property operating income | $ | 40,631 | $ | 41,576 | $ | 14,121 | $ | — | $ | 63,420 | $ | — | $ | — | $ | 159,748 | |||||||||||||||||
Interest income | 428 | 36 | — | — | 19,280 | — | — | 19,744 | |||||||||||||||||||||||||
Fee income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Other income | 52 | — | 9 | — | 1,379 | — | — | 1,440 | |||||||||||||||||||||||||
Total revenues | 41,111 | 41,612 | 14,130 | — | 84,079 | — | — | 180,932 | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Property operating expense | 18,910 | 11,968 | 8,698 | — | 38,877 | — | — | 78,453 | |||||||||||||||||||||||||
Interest expense | 12,892 | 6,255 | 2,367 | — | 14,037 | — | — | 35,551 | |||||||||||||||||||||||||
Investment, servicing and commission expense | 871 | 35 | 137 | — | 3,844 | — | — | 4,887 | |||||||||||||||||||||||||
Transaction costs | — | — | — | — | 1,557 | — | — | 1,557 | |||||||||||||||||||||||||
Depreciation and amortization | 11,012 | 18,985 | 2,248 | — | 10,261 | — | — | 42,506 | |||||||||||||||||||||||||
Provision for loan loss | — | — | — | — | 6,647 | — | — | 6,647 | |||||||||||||||||||||||||
Impairment loss | 601 | 101 | — | — | 4,877 | — | — | 5,579 | |||||||||||||||||||||||||
Compensation expense | — | 14 | — | — | 363 | — | — | 377 | |||||||||||||||||||||||||
Administrative expenses | 109 | 423 | — | — | 1,657 | — | — | 2,189 | |||||||||||||||||||||||||
Total expenses | 44,395 | 37,781 | 13,450 | — | 82,120 | — | — | 177,746 | |||||||||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||||||||||||
Gain on sale of real estate assets | — | — | — | — | 19,647 | — | — | 19,647 | |||||||||||||||||||||||||
Other gain (loss), net | (1,355 | ) | — | (22 | ) | — | 3,313 | — | — | 1,936 | |||||||||||||||||||||||
Earnings of investments in unconsolidated ventures | — | — | — | — | 4,245 | 1,292 | — | 5,537 | |||||||||||||||||||||||||
Income (loss) before income taxes | (4,639 | ) | 3,831 | 658 | — | 29,164 | 1,292 | — | 30,306 | ||||||||||||||||||||||||
Income tax benefit (expense) | (109 | ) | (24 | ) | — | — | (688 | ) | — | — | (821 | ) | |||||||||||||||||||||
Net income (loss) from continuing operations | (4,748 | ) | 3,807 | 658 | — | 28,476 | 1,292 | — | 29,485 | ||||||||||||||||||||||||
Income (loss) from discontinued operations | — | — | — | — | (99 | ) | — | — | (99 | ) | |||||||||||||||||||||||
Non-pro rata allocation of income (loss) to NCI | (93 | ) | — | — | — | — | — | — | (93 | ) | |||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | $ | (4,841 | ) | $ | 3,807 | $ | 658 | $ | — | $ | 28,377 | $ | 1,292 | $ | — | $ | 29,293 |
Colony Capital | Supplemental Financial Report | 12 |
IIe. Financial Results - Segment Reconciliation of Net Income to FFO & Core FFO |
Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||||||||||||
OP pro rata share by segment | Amounts attributable to noncontrolling interests | CLNY consolidated as reported | ||||||||||||||||||||||||||||||||||||||
($ in thousands) (Unaudited) | Healthcare | Industrial | Hospitality | CLNC | Other Equity and Debt | Investment Management | Amounts not allocated to segments | Total OP pro rata share | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (14,356 | ) | $ | 810 | $ | 5,767 | $ | 5,104 | $ | 31,333 | $ | (47,070 | ) | $ | (74,394 | ) | $ | (92,806 | ) | $ | — | $ | (92,806 | ) | |||||||||||||||
Net income (loss) attributable to noncontrolling common interests in Operating Company | (883 | ) | 51 | 346 | 309 | 1,924 | (2,922 | ) | (4,553 | ) | (5,728 | ) | — | (5,728 | ) | |||||||||||||||||||||||||
Net income (loss) attributable to common interests in Operating Company and common stockholders | (15,239 | ) | 861 | 6,113 | 5,413 | 33,257 | (49,992 | ) | (78,947 | ) | (98,534 | ) | — | (98,534 | ) | |||||||||||||||||||||||||
Adjustments for FFO: | ||||||||||||||||||||||||||||||||||||||||
Real estate depreciation and amortization | 25,763 | 13,448 | 33,219 | 8,279 | 14,755 | 785 | — | 96,249 | 44,350 | 140,599 | ||||||||||||||||||||||||||||||
Impairment of real estate | 1,381 | 72 | — | — | 2,489 | — | — | 3,942 | 5,580 | 9,522 | ||||||||||||||||||||||||||||||
Gain from sales of real estate | — | — | — | — | (22,243 | ) | (48 | ) | — | (22,291 | ) | (20,459 | ) | (42,750 | ) | |||||||||||||||||||||||||
Less: Adjustments attributable to noncontrolling interests in investment entities | — | — | — | — | — | — | — | — | (29,471 | ) | (29,471 | ) | ||||||||||||||||||||||||||||
FFO | $ | 11,905 | $ | 14,381 | $ | 39,332 | $ | 13,692 | $ | 28,258 | $ | (49,255 | ) | $ | (78,947 | ) | $ | (20,634 | ) | $ | — | $ | (20,634 | ) | ||||||||||||||||
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) | — | — | — | — | 15,619 | — | — | 15,619 | 14,368 | 29,987 | ||||||||||||||||||||||||||||||
(Gains) and losses from sales of businesses within the Investment Management segment and impairment write-downs associated with the Investment Management segment | — | — | — | — | — | 16,437 | — | 16,437 | — | 16,437 | ||||||||||||||||||||||||||||||
Equity-based compensation expense | 289 | 659 | 250 | 658 | 376 | 1,815 | 5,986 | 10,033 | — | 10,033 | ||||||||||||||||||||||||||||||
Straight-line rent revenue and expense | (1,679 | ) | (791 | ) | (4 | ) | — | (683 | ) | (20 | ) | 1,028 | (2,149 | ) | (2,340 | ) | (4,489 | ) | ||||||||||||||||||||||
Change in fair value of contingent consideration | — | — | — | — | — | — | 8,750 | 8,750 | — | 8,750 | ||||||||||||||||||||||||||||||
Amortization of acquired above- and below-market lease values | 576 | (268 | ) | (3 | ) | 79 | 18 | — | — | 402 | 31 | 433 | ||||||||||||||||||||||||||||
Amortization of deferred financing costs and debt premiums and discounts | 4,026 | 201 | 3,163 | — | 5,913 | 55 | 1,662 | 15,020 | 6,614 | 21,634 | ||||||||||||||||||||||||||||||
Unrealized fair value gains or losses and foreign currency remeasurements | 3,435 | — | — | (507 | ) | (2,646 | ) | 23 | (23,996 | ) | (23,691 | ) | (280 | ) | (23,971 | ) | ||||||||||||||||||||||||
Acquisition and merger-related transaction costs | — | — | — | 857 | 827 | — | 308 | 1,992 | 1,557 | 3,549 | ||||||||||||||||||||||||||||||
Merger integration costs(2) | — | — | — | — | — | — | 8,472 | 8,472 | — | 8,472 | ||||||||||||||||||||||||||||||
Amortization and impairment of investment management intangibles | — | — | — | — | — | 66,550 | — | 66,550 | — | 66,550 | ||||||||||||||||||||||||||||||
Non-real estate depreciation and amortization | — | 49 | 458 | — | — | 10 | 1,535 | 2,052 | 48 | 2,100 | ||||||||||||||||||||||||||||||
Gain on remeasurement of consolidated investment entities and the effect of amortization thereof | — | — | — | — | 104 | — | — | 104 | 1,771 | 1,875 | ||||||||||||||||||||||||||||||
Tax (benefit) expense, net | — | — | — | — | — | (1,475 | ) | — | (1,475 | ) | — | (1,475 | ) | |||||||||||||||||||||||||||
Preferred share redemption gain | — | — | — | — | — | — | (3,995 | ) | (3,995 | ) | (3,995 | ) | ||||||||||||||||||||||||||||
Less: Adjustments attributable to noncontrolling interests in investment entities | — | — | — | — | — | — | — | — | (21,769 | ) | (21,769 | ) | ||||||||||||||||||||||||||||
Core FFO | $ | 18,552 | $ | 14,231 | $ | 43,196 | $ | 14,779 | $ | 47,786 | $ | 34,140 | $ | (79,197 | ) | $ | 93,487 | $ | — | $ | 93,487 |
(1) | Net of $2.5 million CLNY OP share of depreciation, amortization and impairment charges previously adjusted to calculate FFO and Core Earnings, a non-GAAP measure used by Colony prior to its internalization of the manager. |
(2) | Merger integration costs represent costs and charges incurred during the integration of Colony, NSAM and NRF. These integration costs are not reflective of the Company’s core operating performance and the Company does not expect to incur these costs subsequent to the completion of the merger integration. The majority of integration costs consist of severance, employee costs of those separated or scheduled for separation, system integration and lease terminations. |
Colony Capital | Supplemental Financial Report | 13 |
IIIa. Capitalization - Overview |
($ in thousands; except per share data; as of June 30, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount | |||||||||
Debt (UPB) | |||||||||||
$1,000,000 Revolving credit facility | $ | — | $ | — | |||||||
Convertible/exchangeable senior notes | 616,105 | 616,105 | |||||||||
Corporate aircraft promissory note | 38,213 | 38,213 | |||||||||
Trust Preferred Securities ("TruPS") | 280,117 | 280,117 | |||||||||
Investment-level debt: | |||||||||||
Healthcare | 3,257,637 | 2,321,387 | |||||||||
Industrial | 1,073,830 | 399,788 | |||||||||
Hospitality(1) | 2,610,222 | 2,439,349 | |||||||||
Other Equity and Debt | 2,537,876 | 1,571,036 | |||||||||
Total investment-level debt(2) | 9,479,565 | 6,731,560 | |||||||||
Total debt | $ | 10,414,000 | $ | 7,665,995 | |||||||
Perpetual preferred equity, redemption value | |||||||||||
Total perpetual preferred equity(3) | $ | 1,436,605 | |||||||||
Common equity as of August 6, 2018 | Price per share | Shares / Units | |||||||||
Class A and B common stock | $ | 6.15 | 490,466 | $ | 3,016,366 | ||||||
OP units | 6.15 | 30,427 | 187,126 | ||||||||
Total market value of common equity | $ | 3,203,492 | |||||||||
Total market capitalization | $ | 12,306,092 |
Colony Capital | Supplemental Financial Report | 14 |
IIIb. Capitalization - Investment-Level Debt Overview |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | ||||||||||||||||
Non-recourse investment-level debt overview | ||||||||||||||||
Consolidated | CLNY OP share of consolidated amount | |||||||||||||||
Fixed / Floating | Unpaid principal balance | Unpaid principal balance | Wtd. avg. years remaining to maturity | Wtd. avg. interest rate(1) | ||||||||||||
Healthcare | Fixed | $ | 2,168,914 | $ | 1,512,745 | 2.5 | 4.7 | % | ||||||||
Healthcare | Floating | 1,088,723 | 808,642 | 2.8 | 6.3 | % | ||||||||||
Industrial | Fixed | 1,073,830 | 399,788 | 11.1 | 3.8 | % | ||||||||||
Hospitality | Fixed | 10,790 | 10,520 | 2.6 | 12.9 | % | ||||||||||
Hospitality | Floating | 2,599,432 | 2,428,829 | 3.1 | 5.2 | % | ||||||||||
Other Equity and Debt(2) | ||||||||||||||||
Net lease real estate equity | Fixed | 335,375 | 334,739 | 5.8 | 4.2 | % | ||||||||||
Other real estate equity | Fixed | 87,286 | 25,656 | 4.3 | 3.1 | % | ||||||||||
Other real estate equity | Floating | 1,421,897 | 765,251 | 4.1 | 4.6 | % | ||||||||||
Real estate debt | Floating | 36,747 | 23,779 | 1.3 | 5.2 | % | ||||||||||
GP Co-investments | Floating | 656,571 | 421,611 | 3.1 | 4.3 | % | ||||||||||
Total investment-level debt(2) | $ | 9,479,565 | $ | 6,731,560 | 3.6 | 5.0 | % | |||||||||
Fixed / Floating Summary | ||||||||||||||||
Fixed | $ | 3,676,195 | $ | 2,283,448 | ||||||||||||
Floating | 5,803,370 | 4,448,112 | ||||||||||||||
Total investment-level debt(2) | $ | 9,479,565 | $ | 6,731,560 |
(1) | Based on 1-month LIBOR of 2.09% and 3-month LIBOR of 2.34%. |
Colony Capital | Supplemental Financial Report | 15 |
IIIc. Capitalization - Revolving Credit Facility Overview |
($ in thousands, except as noted; as of June 30, 2018) | ||||
Revolving credit facility | ||||
Maximum principal amount | $ | 1,000,000 | ||
Amount outstanding | — | |||
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 $4,550 million | |||
Consolidated Fixed Charge Coverage Ratio | Minimum 1.50 to 1.00 | |||
Interest Coverage Ratio(1) | Minimum 3.00 to 1.00 | |||
Consolidated Leverage Ratio | Maximum 0.65 to 1.00 | |||
Company status: As of June 30, 2018, CLNY is meeting all required covenant threshold levels |
(1) | Interest Coverage Ratio represents the ratio of the sum of (1) earnings from borrowing base assets and (2) certain investment management earnings divided by the greater of (a) actual interest expense on the revolving credit facility and (b) the average balance of the facility multiplied by 7.0% for the applicable quarter. |
Colony Capital | Supplemental Financial Report | 16 |
IIId. Capitalization - Corporate Securities Overview |
($ in thousands, except per share data; as of June 30, 2018, 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) | |||||||||||||
5.375% Exchangeable senior notes | 13,605 | June 15, 2033 | 5.375% fixed | 12.04 | 83.0837 | 1,130 | On or after June 15, 2020(1) | |||||||||||||
Total convertible debt | $ | 616,105 |
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 | $ | 152,855 | 6,114 | Callable | |||||
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 | ||||||
Series J 7.125% cumulative redeemable perpetual preferred stock | 315,000 | 12,600 | On or after September 22, 2022 | ||||||
Total preferred stock(2) | $ | 1,436,605 | 57,464 |
(1) | Callable at principal amount only if CLNY common stock has traded at least 130% of the conversion price for 20 of 30 consecutive trading days. |
Colony Capital | Supplemental Financial Report | 17 |
IIIe. Capitalization - Debt Maturity and Amortization Schedules |
($ in thousands; as of June 30, 2018) | ||||||||||||||||||||||||
Consolidated debt maturity and amortization schedule | Payments due by period(1) | |||||||||||||||||||||||
Fixed / Floating | 2018 | 2019 | 2020 | 2021 | 2022 and after | Total | ||||||||||||||||||
$1,000,000 Revolving credit facility | Floating | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Convertible/exchangeable senior notes | Fixed | — | — | — | 402,500 | 213,605 | 616,105 | |||||||||||||||||
Corporate aircraft promissory note | Fixed | 1,529 | 2,124 | 2,233 | 2,350 | 29,977 | 38,213 | |||||||||||||||||
TruPS | Floating | — | — | — | — | 280,117 | 280,117 | |||||||||||||||||
Investment-level debt: | ||||||||||||||||||||||||
Healthcare | Fixed | 111 | 1,750,231 | 7,052 | 8,338 | 403,182 | 2,168,914 | |||||||||||||||||
Healthcare | Floating | 14,788 | 624,221 | 52,251 | 397,463 | — | 1,088,723 | |||||||||||||||||
Industrial | Fixed | 407 | 839 | 875 | 2,350 | 1,069,359 | 1,073,830 | |||||||||||||||||
Hospitality | Fixed | — | — | — | 10,790 | — | 10,790 | |||||||||||||||||
Hospitality | Floating | — | 512,000 | (2) | 247,750 | 209,682 | 1,630,000 | 2,599,432 | ||||||||||||||||
Other Equity and Debt | Fixed | 48,660 | 14,930 | 15,058 | 26,957 | 317,056 | 422,661 | |||||||||||||||||
Other Equity and Debt | Floating | 174,310 | 253,074 | 54,196 | 437,694 | 1,195,941 | 2,115,215 | |||||||||||||||||
Total debt(3) | $ | 239,805 | $ | 3,157,419 | $ | 379,415 | $ | 1,498,124 | $ | 5,139,237 | $ | 10,414,000 | ||||||||||||
Pro rata debt maturity and amortization schedule | Payments due by period(1) | |||||||||||||||||||||||
Fixed / Floating | 2018 | 2019 | 2020 | 2021 | 2022 and after | Total | ||||||||||||||||||
$1,000,000 Revolving credit facility | Floating | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Convertible/exchangeable senior notes | Fixed | — | — | — | 402,500 | 213,605 | 616,105 | |||||||||||||||||
Corporate aircraft promissory note | Fixed | 1,529 | 2,124 | 2,233 | 2,350 | 29,977 | 38,213 | |||||||||||||||||
TruPS | Floating | — | — | — | — | 280,117 | 280,117 | |||||||||||||||||
Investment-level debt: | ||||||||||||||||||||||||
Healthcare | Fixed | 77 | 1,218,861 | 4,950 | 5,852 | 283,005 | 1,512,745 | |||||||||||||||||
Healthcare | Floating | 10,670 | 440,145 | 42,314 | 315,513 | — | 808,642 | |||||||||||||||||
Industrial | Fixed | 152 | 313 | 326 | 875 | 398,122 | 399,788 | |||||||||||||||||
Hospitality | Fixed | — | — | — | 10,520 | — | 10,520 | |||||||||||||||||
Hospitality | Floating | — | 512,000 | (2) | 247,750 | 204,440 | 1,464,639 | 2,428,829 | ||||||||||||||||
Other Equity and Debt | Fixed | 39,937 | 5,325 | 5,408 | 9,433 | 300,292 | 360,395 | |||||||||||||||||
Other Equity and Debt | Floating | 41,813 | 119,482 | 27,744 | 399,421 | 622,181 | 1,210,641 | |||||||||||||||||
Total debt(3) | $ | 94,178 | $ | 2,298,250 | $ | 330,725 | $ | 1,350,904 | $ | 3,591,938 | $ | 7,665,995 |
(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. |
Colony Capital | 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, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount(1) | ||||||
Net operating income | ||||||||
Net operating income: | ||||||||
Senior Housing - Operating | $ | 16,770 | $ | 11,890 | ||||
Medical Office Buildings | 13,718 | 9,726 | ||||||
Triple-Net Lease: | ||||||||
Senior Housing | 14,483 | 10,268 | ||||||
Skilled Nursing Facilities | 24,079 | 17,072 | ||||||
Hospitals | 4,806 | 3,407 | ||||||
Total net operating income(2) | $ | 73,856 | $ | 52,363 |
Portfolio overview | Total number of buildings | Capacity | % Occupied(3) | TTM Lease Coverage(4) | WA Remaining Lease Term | ||||||||
Senior Housing - Operating | 109 | 6,436 units | 86.8 | % | N/A | N/A | |||||||
Medical Office Buildings | 108 | 3.8 million sq. ft. | 82.6 | % | N/A | N/A | |||||||
Triple-Net Lease: | |||||||||||||
Senior Housing | 83 | 4,153 units | 82.3 | % | 1.4x | 11.5 | |||||||
Skilled Nursing Facilities | 99 | 11,829 beds | 82.2 | % | 1.2x | 6.4 | |||||||
Hospitals | 14 | 872 beds | 59.6 | % | 3.3x | 10.8 | |||||||
Total | 413 |
Same store financial/operating results related to the segment | |||||||||||||||||||||
% Occupied(3) | TTM Lease Coverage(4) | NOI(5) | |||||||||||||||||||
Q2 2018 | Q1 2018 | 3/31/2018 | 12/31/2017 | Q2 2018 | Q1 2018 | % Change | |||||||||||||||
Senior Housing - Operating | 86.8 | % | 86.4 | % | N/A | N/A | $ | 17,420 | $ | 17,472 | (0.3 | )% | |||||||||
Medical Office Buildings | 82.6 | % | 83.2 | % | N/A | N/A | 13,718 | 13,320 | 3.0 | % | |||||||||||
Triple-Net Lease: | |||||||||||||||||||||
Senior Housing | 82.3 | % | 83.2 | % | 1.4x | 1.4x | 15,544 | 15,530 | 0.1 | % | |||||||||||
Skilled Nursing Facilities | 82.2 | % | 82.7 | % | 1.2x | 1.2x | 25,942 | 26,854 | (3.4 | )% | |||||||||||
Hospitals | 59.6 | % | 55.3 | % | 3.3x | 3.5x | 4,806 | 4,923 | (2.4 | )% | |||||||||||
Total | $ | 77,430 | $ | 78,099 | (0.9 | )% |
(1) | CLNY OP Share represents Consolidated NOI multiplied by CLNY OP's interest of 71% as of June 30, 2018. |
(2) | NOI includes $1.4 million consolidated or $1.0 million CLNY OP share of interest earned related to $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. This interest income is in the Interest Income line item on the Company’s Statement of Operations for the three months ended June 30, 2018. For a reconciliation of net income/(loss) attributable to common stockholders to NOI, please refer to the appendix to this presentation. |
(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 the tenant's/operator's EBITDAR to cash rent payable to the Company's Healthcare Real Estate segment on a trailing twelve month basis. Refer to Important Notes Regarding Non-GAAP Financial Measures and Definitions pages in this presentation for additional information regarding the use of tenant/operator EBITDAR. |
(5) | Same Store Consolidated NOI excludes $3.2 million of termination fee revenue in Q1 2018 and excludes $3.6 million of non-recurring bad debt expense in Q2 2018. |
Colony Capital | Supplemental Financial Report | 19 |
IVb. Healthcare Real Estate - Portfolio Overview |
(As of or for the three months ended June 30, 2018, unless otherwise noted) | |||||||||||||||
Triple-Net Lease Coverage(1) | % of Triple-Net Lease TTM NOI as of March 31, 2018 | ||||||||||||||
March 31, 2018 TTM Lease Coverage | # of Leases | Senior Housing | Skilled Nursing Facilities & Hospitals | % Total NOI | WA Remaining Lease Term | ||||||||||
Less than 0.99x | 6 | 7 | % | 17 | % | 24 | % | 7 yrs | |||||||
1.00x - 1.09x | 2 | — | % | 14 | % | 14 | % | 6 yrs | |||||||
1.10x - 1.19x | — | — | % | — | % | — | % | — | |||||||
1.20x - 1.29x | 1 | 4 | % | — | % | 4 | % | 10 yrs | |||||||
1.30x - 1.39x | 2 | — | % | 17 | % | 17 | % | 8 yrs | |||||||
1.40x - 1.49x | 1 | — | % | 2 | % | 2 | % | 8 yrs | |||||||
1.50x and greater | 5 | 19 | % | 20 | % | 39 | % | 9 yrs | |||||||
Total / W.A. | 17 | 30 | % | 70 | % | 100 | % | 8 yrs |
Revenue Mix(2) | March 31, 2018 TTM | ||||||||
Private Pay | Medicare | Medicaid | |||||||
Senior Housing - Operating | 87 | % | 3 | % | 10 | % | |||
Medical Office Buildings | 100 | % | — | % | — | % | |||
Triple-Net Lease: | |||||||||
Senior Housing | 65 | % | — | % | 35 | % | |||
Skilled Nursing Facilities | 26 | % | 20 | % | 54 | % | |||
Hospitals | 11 | % | 40 | % | 49 | % | |||
W.A. | 60 | % | 10 | % | 30 | % |
(1) | Represents the ratio of the tenant's/operator's EBITDAR to cash rent payable to the Company's Healthcare Real Estate segment on a trailing twelve month basis. Refer to Important Notes Regarding Non-GAAP Financial Measures and Definitions pages in this presentation for additional information regarding the use of tenant/operator EBITDAR. 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 Capital | Supplemental Financial Report | 20 |
IVb. Healthcare Real Estate - Portfolio Overview (cont’d) |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | |||||||
Top 10 Geographic Locations by NOI | |||||||
Number of buildings | NOI | ||||||
United Kingdom | 44 | $ | 10,102 | ||||
Indiana | 55 | 7,323 | |||||
Illinois | 35 | 6,338 | |||||
Florida | 27 | 5,846 | |||||
Oregon | 31 | 4,932 | |||||
Pennsylvania | 11 | 4,807 | |||||
California | 15 | 4,552 | |||||
Georgia | 22 | 4,515 | |||||
Texas | 31 | 4,494 | |||||
Ohio | 35 | 4,340 | |||||
Total | 306 | $ | 57,249 |
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 | $ | 13,823 | 87.0 | % | N/A | N/A | ||||||||
Caring Homes (U.K.)(1) | Sr. Housing / NNN | 44 | 10,102 | 86.7 | % | 1.5x | 15 yrs | |||||||||
Sentosa | SNF / NNN | 11 | 4,807 | 87.6 | % | 1.3x | 10 yrs | |||||||||
Wellington Healthcare | SNF / NNN | 11 | 4,429 | 89.1 | % | 1.1x | 9 yrs | |||||||||
Miller | SNF / NNN | 28 | 3,848 | 72.0 | % | 2.0x | N/A | |||||||||
Frontier | Sr. Housing / RIDEA / NNN | 20 | 3,822 | 82.9 | % | N/A | N/A | |||||||||
Opis | SNF / NNN | 11 | 2,806 | 89.2 | % | 1.3x | 6 yrs | |||||||||
Grace | SNF / NNN | 9 | 2,604 | 80.5 | % | 0.9x | 3 yrs | |||||||||
Avanti Hospital Systems | Hospital | 5 | 2,293 | 54.3 | % | 4.9x | 9 yrs | |||||||||
Consulate | SNF / NNN | 10 | 2,018 | 80.1 | % | 0.4x | 10 yrs | |||||||||
Total | 231 | $ | 50,552 |
(1) | Caring Homes (U.K.) lease (EBITDAR) coverage includes additional collateral provided by the operator. |
Colony Capital | 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, 2018, unless otherwise noted) | Consolidated amount(1) | CLNY OP share of consolidated amount(1) | ||||||
Net operating income | ||||||||
Net operating income | $ | 49,078 | $ | 18,257 |
Portfolio overview | |||
Total number of buildings | 392 | ||
Rentable square feet (thousands) | 47,497 | ||
% leased at end of period | 92.9 | % | |
Average remaining lease term | 3.8 |
Same store financial/operating results related to the segment | Q2 2018 | Q1 2018 | % Change | ||||||||
Same store number of buildings | 304 | 304 | — | ||||||||
% leased at end of period | 93.9 | % | 95.1 | % | (1.3 | )% | |||||
NOI | $ | 35,490 | $ | 35,127 | 1.0 | % |
Recent acquisitions & dispositions | Acquisition / Disposition date | Number of buildings | Rentable square feet (thousands) | % leased | Purchase price / Sales price | ||||||||||
Q2 2018 acquisitions: | |||||||||||||||
San Francisco industrial portfolio | 4/13/2018 | 2 | 587 | 100.0 | % | $ | 100,500 | ||||||||
Las Vegas industrial portfolio | 4/24/2018 | 2 | 363 | 45.0 | % | 37,400 | |||||||||
Northern NJ industrial portfolio | 6/21/2018 | 10 | 640 | 91.3 | % | 95,997 | |||||||||
San Antonio industrial portfolio | 6/28/2018 | 1 | 359 | — | % | 23,400 | |||||||||
Land for development | Various | N/A | N/A | N/A | 589 | ||||||||||
Total / W.A. | 15 | 1,949 | 68.5 | % | $ | 257,886 | |||||||||
Q2 2018 dispositions: | |||||||||||||||
Southern NJ industrial property | 5/29/2018 | 1 | 45 | — | % | $ | 2,500 | ||||||||
Total / W.A. | 1 | 45 | — | % | $ | 2,500 | |||||||||
Q3 2018 acquisitions: | |||||||||||||||
Baltimore industrial portfolio | 7/2/2018 | 1 | 90 | — | % | $ | 7,900 | ||||||||
Baltimore industrial portfolio | 7/12/2018 | 2 | 220 | 100.0 | % | $ | 19,550 | ||||||||
Las Vegas industrial portfolio | 7/30/2018 | 2 | 205 | 100.0 | % | $ | 15,995 | ||||||||
Total / W.A. | 5 | 515 | 81.8 | % | $ | 43,445 |
(1) | CLNY OP Share represents Consolidated NOI multiplied by CLNY OP's interest of 37% as of June 30, 2018. For a reconciliation of net income/(loss) attributable to common stockholders to NOI, please refer to the appendix to this presentation. |
Colony Capital | Supplemental Financial Report | 22 |
Vb. Industrial Real Estate - Portfolio Overview |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | |||||||||||||
Top 10 Geographic Locations by NOI | Number of buildings | Rentable square feet (thousands) | NOI | % leased at end of period | |||||||||
Dallas | 68 | 7,426 | $ | 7,401 | 93.9 | % | |||||||
Atlanta | 62 | 6,862 | 6,783 | 97.3 | % | ||||||||
New Jersey, South / Philadelphia | 33 | 3,718 | 3,803 | 93.4 | % | ||||||||
Minneapolis | 18 | 2,814 | 3,745 | 96.1 | % | ||||||||
Orlando | 17 | 2,851 | 3,526 | 97.9 | % | ||||||||
Phoenix | 28 | 3,230 | 3,293 | 98.4 | % | ||||||||
Maryland-BWI | 21 | 2,806 | 3,178 | 93.5 | % | ||||||||
Chicago | 26 | 2,786 | 2,601 | 83.7 | % | ||||||||
Houston | 23 | 2,092 | 2,386 | 87.9 | % | ||||||||
Jacksonville | 11 | 2,011 | 2,013 | 99.9 | % | ||||||||
Total / W.A. | 307 | 36,596 | $ | 38,729 | 94.5 | % |
Top 10 Tenant Base by Industry | ||||||
Industry | Total leased square feet (thousands) | % of total | ||||
Warehousing & Transportation | 17,444 | 39.6 | % | |||
Manufacturing | 7,699 | 17.5 | % | |||
Wholesale Trade | 4,345 | 9.9 | % | |||
Professional, Scientific, and Technical Services | 4,242 | 9.6 | % | |||
Media & Information | 2,911 | 6.6 | % | |||
Health & Science | 2,923 | 6.6 | % | |||
Construction & Contractors | 2,247 | 5.1 | % | |||
Retail Trade | 1,213 | 2.8 | % | |||
Entertainment & Recreation | 935 | 2.1 | % | |||
Public Administration & Government | 113 | 0.2 | % | |||
Total | 44,072 | 100.0 | % |
Colony Capital | 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, 2018, unless otherwise noted) | CLNY OP share of consolidated amount(1) | |||||||
EBITDA | Consolidated amount | |||||||
EBITDA: | ||||||||
Select Service | $ | 48,103 | $ | 45,361 | ||||
Extended Stay | 33,549 | 31,637 | ||||||
Full Service | 4,326 | 4,079 | ||||||
Total EBITDA(2) | $ | 85,978 | $ | 81,077 |
Portfolio overview by type | ||||||||||||||||||||||||
Number of hotels | Number of rooms | Avg. qtr. % occupancy | Avg. daily rate (ADR) | RevPAR | Q2 2018 EBITDA | EBITDA margin | ||||||||||||||||||
Select service | 97 | 13,193 | 77.7 | % | $ | 127 | $ | 99 | $ | 48,103 | 37.0 | % | ||||||||||||
Extended stay | 66 | 7,936 | 82.9 | % | 136 | 113 | 33,549 | 40.2 | % | |||||||||||||||
Full service | 4 | 962 | 77.3 | % | 166 | 128 | 4,326 | 27.7 | % | |||||||||||||||
Total / W.A. | 167 | 22,091 | 79.6 | % | $ | 132 | $ | 105 | $ | 85,978 | 37.5 | % |
Same store financial/operating results related to the segment by brand | |||||||||||||||||||||||||||||||||
Avg. qtr. % occupancy | Avg. daily rate (ADR) | RevPAR | EBITDA | ||||||||||||||||||||||||||||||
Brand | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | % Change | ||||||||||||||||||||||||
Marriott | 78.3 | % | 77.0 | % | $ | 131 | $ | 129 | $ | 102 | $ | 99 | $ | 66,313 | $ | 62,834 | 5.5 | % | |||||||||||||||
Hilton | 83.9 | % | 82.0 | % | 135 | 131 | 113 | 107 | 14,763 | 13,862 | 6.5 | % | |||||||||||||||||||||
Other | 86.3 | % | 84.2 | % | 138 | 139 | 119 | 117 | 4,902 | 4,995 | (1.9 | )% | |||||||||||||||||||||
Total / W.A. | 79.6 | % | 78.2 | % | $ | 132 | $ | 130 | $ | 105 | $ | 102 | $ | 85,978 | $ | 81,691 | 5.2 | % |
(1) | CLNY OP Share represents Consolidated EBITDA multiplied by CLNY OP's interest of 94% as of June 30, 2018. |
(2) | Q2 2018 EBITDA excludes a FF&E reserve contribution amount of $10.0 million consolidated or $9.4 million CLNY OP share. For a reconciliation of net income/(loss) attributable to common stockholders to EBITDA please refer to the appendix to this presentation. |
Colony Capital | Supplemental Financial Report | 24 |
VIb. Hospitality Real Estate - Portfolio Overview |
($ in thousands; as of June 30, 2018, 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 | — | $ | 12,736 | ||||||||||||
Texas | 28 | 3,230 | 1,952 | 1,278 | — | 9,260 | |||||||||||||
Florida | 12 | 2,060 | 1,186 | 291 | 583 | 7,213 | |||||||||||||
New Jersey | 12 | 1,884 | 718 | 942 | 224 | 6,917 | |||||||||||||
Virginia | 11 | 1,473 | 1,210 | 263 | — | 5,530 | |||||||||||||
New York | 8 | 1,010 | 710 | 300 | — | 4,188 | |||||||||||||
Washington | 5 | 664 | 160 | 504 | — | 3,993 | |||||||||||||
North Carolina | 7 | 981 | 831 | 150 | — | 3,820 | |||||||||||||
Georgia | 7 | 974 | 694 | 280 | — | 3,444 | |||||||||||||
Michigan | 6 | 809 | 601 | 208 | — | 3,362 | |||||||||||||
Total / W.A. | 114 | 15,339 | 9,305 | 5,227 | 807 | $ | 60,463 |
Colony Capital | Supplemental Financial Report | 25 |
VIIa. CLNC |
($ in thousands, except as noted and per share data; as of June 30, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount | ||||||
Colony Credit Real Estate, Inc. (NYSE: CLNC) | ||||||||
CLNY OP interest in CLNC as of August 6, 2018 | 36.6 | % | 36.6 | % | ||||
CLNC shares beneficially owned by OP and common stockholders | 48.0 million | 48.0 million | ||||||
CLNC share price as of August 6, 2018 | $ | 21.08 | $ | 21.08 | ||||
Total market value of CLNC shares | $ | 1,011,376 | $ | 1,011,376 | ||||
Net carrying value - CLNC | $ | 1,146,355 | $ | 1,146,355 | ||||
Colony Capital | Supplemental Financial Report | 26 |
VIIIa. Other Equity and Debt - Strategic Investments |
($ in thousands, except as noted and per share data; as of June 30, 2018, unless otherwise noted) | Consolidated amount | CLNY OP share of consolidated amount | ||||||
NorthStar Realty Europe Corp. (NYSE: NRE) | ||||||||
CLNY OP interest in NRE as of August 6, 2018 | 11.2 | % | 11.2 | % | ||||
NRE shares beneficially owned by OP and common stockholders | 5.6 million | 5.6 million | ||||||
NRE share price as of August 6, 2018 | $ | 13.52 | $ | 13.52 | ||||
Total market value of NRE shares | $ | 76,206 | $ | 76,206 | ||||
Carrying value - NRE | 75,044 | 75,044 | ||||||
CLNY's GP Co-investments in CDCF IV Investments - CLNY's Most Recent Flagship Institutional Credit Fund | ||||||||
Assets - carrying value(1) | $ | 1,112,419 | $ | 199,057 | ||||
Debt - UPB | 293,397 | 58,437 | ||||||
Net carrying value | $ | 819,022 | $ | 140,620 | ||||
NBV by Geography: | ||||||||
U.S. | 27.6 | % | 16.0 | % | ||||
Europe | 72.4 | % | 84.0 | % | ||||
Total | 100.0 | % | 100.0 | % | ||||
Other GP Co-investments (2) | ||||||||
Assets - carrying value(1) | $ | 688,186 | $ | 644,296 | ||||
Debt - UPB | 363,174 | 363,174 | ||||||
Net carrying value | $ | 325,012 | $ | 281,122 |
(1) | $1.1 billion consolidated and $573 million CLNY OP share are classified as Loans Receivable on the Company's balance sheet. |
(2) | Other GP co-investments represents: i) seed investments in certain registered investment companies sponsored by the Company, ii) investments in the general partnership of third party real estate operators primarily to seed investment commitments with their limited partners for which the Company will receive its share of earnings and incentive fees, or iii) general partnership capital in a fund or investment. |
Colony Capital | Supplemental Financial Report | 27 |
VIIIb. Other Equity and Debt - Net Lease and Other Real Estate Equity |
($ in thousands; as of June 30, 2018, unless otherwise noted) | ||||||||||||||||||||
Net Lease Real Estate Equity | Number of buildings | Rentable square feet (thousands) | Consolidated amount | CLNY OP share of consolidated amount | % leased at end of period | Weighted average remaining lease term | ||||||||||||||
NOI | NOI | |||||||||||||||||||
U.S. office | 5 | 878 | $ | 2,415 | $ | 2,283 | 80.6 | % | 5.1 | |||||||||||
Europe office | 29 | 1,478 | 5,514 | 5,514 | 100.0 | % | 11.6 | |||||||||||||
Total / W.A. | 34 | 2,356 | $ | 7,929 | $ | 7,797 | 92.8 | % | 9.2 |
Other Real Estate Equity | Number of buildings | Rentable square feet (thousands) | Consolidated amount | CLNY OP share of consolidated amount | % leased at end of period | Weighted average remaining lease term | ||||||||||||||
Undepreciated carrying value | Undepreciated carrying value | |||||||||||||||||||
U.S.: | ||||||||||||||||||||
Office | 14 | 1,482 | $ | 272,779 | $ | 236,558 | 66.6 | % | 5.8 | |||||||||||
Hotel(1) | 100 | N/A | 1,234,872 | 680,736 | 75.0 | % | N/A | |||||||||||||
Europe: | ||||||||||||||||||||
Industrial | 37 | 2,753 | 163,942 | 73,774 | 100.0 | % | 6.0 | |||||||||||||
Office | 27 | 920 | 83,551 | 41,776 | 80.2 | % | 11.7 | |||||||||||||
Mixed / Retail | 151 | 4,390 | 698,032 | 238,719 | 63.3 | % | 4.2 | |||||||||||||
Total / W.A. | 329 | 9,545 | $ | 2,453,176 | $ | 1,271,563 | 76.0 | % | 5.7 | |||||||||||
Unconsolidated joint ventures (Other RE Equity) | ||||||||||||||||||||
Preferred equity: | ||||||||||||||||||||
Multifamily | $ | 341,676 | $ | 341,676 | ||||||||||||||||
Equity & Other: | ||||||||||||||||||||
Albertsons | 89,129 | 44,564 | ||||||||||||||||||
Residential Land | 66,830 | 34,734 | ||||||||||||||||||
Other | 28,742 | 28,742 | ||||||||||||||||||
Corporate CLO Equity | 17,965 | 17,965 | ||||||||||||||||||
Multifamily | 10,372 | 9,335 | ||||||||||||||||||
Total | $ | 554,714 | $ | 477,016 | ||||||||||||||||
(1) | Includes $150 million consolidated or $83 million CLNY OP share of restricted cash. |
Colony Capital | Supplemental Financial Report | 28 |
VIIIc. Other Equity and Debt - Real Estate Debt |
($ in thousands, except as noted; as of June 30, 2018, unless otherwise noted) | ||||||||
Portfolio Overview(1) | ||||||||
Consolidated amount | CLNY OP share of consolidated amount | |||||||
Non-PCI loans(2) | ||||||||
Carrying value - consolidated | $ | 492,573 | $ | 352,537 | ||||
Non-recourse investment-level financing (UPB) | 22,523 | 16,456 | ||||||
Carrying value - equity method investments | 27,037 | 19,527 | ||||||
. | ||||||||
PCI loans(2) | ||||||||
Carrying value - consolidated | 121,918 | 55,019 | ||||||
Non-recourse investment-level financing (UPB) | 14,224 | 7,323 | ||||||
Carrying value - equity method investments | 1,368 | 1,368 | ||||||
Other | ||||||||
Carrying value - real estate assets (REO) | 25,721 | 14,689 | ||||||
Total Portfolio | ||||||||
Carrying value - consolidated | 614,491 | 407,556 | ||||||
Carrying value - equity method investments | 28,405 | 20,895 | ||||||
Carrying value - real estate assets (REO) | 25,721 | 14,689 | ||||||
Non-recourse investment-level financing (UPB) | 36,747 | 23,779 |
(1) | Excludes $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. |
(2) | Strategic Non-PCI and PCI loans that are classified as Loans Receivable on the Company's balance sheet are categorized within GP co-investments in this supplemental financial presentation. |
Colony Capital | Supplemental Financial Report | 29 |
VIIIc. Other Equity and Debt - Real Estate Debt (cont’d) |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | ||||||||||||||
Non-strategic real estate debt by loan type(1) | ||||||||||||||
Consolidated amount | CLNY OP share of consolidated amount | |||||||||||||
Net carrying amount | Net carrying amount | Weighted average yield | Weighted average maturity in years | |||||||||||
Non-PCI loans(2) | ||||||||||||||
Fixed rate | ||||||||||||||
First mortgage loans | $ | 63,979 | $ | 46,757 | 8.6 | % | 9.2 | |||||||
Second mortgage loans / B-notes | 211,182 | 116,392 | 7.8 | % | 2.3 | |||||||||
Mezzanine loans | 122,937 | 93,634 | 2.9 | % | 1.6 | |||||||||
Corporate | 28,290 | 28,290 | 8.1 | % | 8.5 | |||||||||
Total fixed rate non-PCI loans | 426,388 | 285,073 | 6.3 | % | 3.8 | |||||||||
Variable rate | ||||||||||||||
First mortgage loans | 69,901 | 69,901 | 8.9 | % | 2.0 | |||||||||
Total variable rate non-PCI loans | 69,901 | 69,901 | 8.9 | % | 2.0 | |||||||||
Total non-PCI loans | 496,289 | 354,974 | ||||||||||||
Allowance for loan losses | (3,716 | ) | (2,437 | ) | ||||||||||
Total non-PCI loans, net of allowance for loan losses | 492,573 | 352,537 | ||||||||||||
PCI loans(2) | ||||||||||||||
First mortgage loans | 167,890 | 62,964 | ||||||||||||
Mezzanine loans | 3,671 | 3,671 | ||||||||||||
Total PCI loans | 171,561 | 66,635 | ||||||||||||
Allowance for loan losses | (49,643 | ) | (11,616 | ) | ||||||||||
Total PCI loans, net of allowance for loan losses | 121,918 | 55,019 | ||||||||||||
Total loans receivable, net of allowance for loan losses | $ | 614,491 | $ | 407,556 |
(1) | Excludes $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. |
(2) | Strategic Non-PCI and PCI loans that are classified as Loans Receivable on the Company's balance sheet are categorized within GP co-investments in this supplemental financial presentation. |
Colony Capital | Supplemental Financial Report | 30 |
VIIIc. Other Equity and Debt - Real Estate Debt (cont’d) |
($ in thousands; as of or for the three months ended June 30, 2018, unless otherwise noted) | ||||||||||||||
Non-strategic real estate debt by collateral type(1) | ||||||||||||||
Consolidated amount | CLNY OP share of consolidated amount | |||||||||||||
Net carrying amount | Net carrying amount | Weighted average yield | Weighted average maturity in years | |||||||||||
Non-PCI Loans(2) | ||||||||||||||
Retail | $ | 171,674 | $ | 160,932 | 3.6 | % | 1.0 | |||||||
Office | 134,128 | 67,064 | 13.5 | % | 3.6 | |||||||||
Multifamily | 68,465 | 51,243 | 8.6 | % | 9.9 | |||||||||
Corporate | 28,290 | 28,290 | 8.1 | % | 8.5 | |||||||||
Hospitality | 52,578 | 26,289 | 10.3 | % | 2.1 | |||||||||
Land | 37,439 | 18,719 | — | % | 0.9 | |||||||||
Total non-PCI loans, net of allowance for loan losses | 492,574 | 352,537 | 6.9 | % | 3.5 | |||||||||
PCI Loans(2) | ||||||||||||||
Retail | 45,459 | 23,290 | ||||||||||||
Multifamily | 26,785 | 11,401 | ||||||||||||
Industrial | 16,931 | 8,280 | ||||||||||||
Office | 5,061 | 4,114 | ||||||||||||
Hospitality | 14,088 | 2,818 | ||||||||||||
Land | 2,334 | 467 | ||||||||||||
Residential | 670 | 134 | ||||||||||||
Other | 10,590 | 4,515 | ||||||||||||
Total PCI loans, net of allowance for loan losses | 121,918 | 55,019 | ||||||||||||
Total loans receivable, net of allowance for loan losses | $ | 614,492 | $ | 407,556 |
(1) | Excludes $77 million consolidated or $54 million CLNY OP share carrying value of healthcare real estate development loans. |
(2) | Strategic Non-PCI and PCI loans that are classified as Loans Receivable on the Company's balance sheet are categorized within GP co-investments in this supplemental financial presentation. |
Colony Capital | Supplemental Financial Report | 31 |
VIIId. Other Equity and Debt - Real Estate PE Fund Interests |
($ in thousands, except as noted; as of or for the three months ended June 30, 2018, unless otherwise noted) | ||||
Operating Results | ||||
Q2 2018 income(1) | $ | — | ||
Return of capital | 23,066 | |||
Total distributions | 23,066 | |||
Contributions | 952 | |||
Net | $ | 22,114 | ||
Carrying value | $ | 142,744 |
Investment by Types(2) | Investment by Geography(2) | ||||||||
Type | % | Location | % | ||||||
Land | 24 | % | Northeast | 25 | % | ||||
Multifamily | 14 | % | West | 20 | % | ||||
Office | 14 | % | Cash | 14 | % | ||||
Cash | 14 | % | Midwest | 11 | % | ||||
Other | 11 | % | Primarily Various U.S. | 9 | % | ||||
Retail | 10 | % | Southeast | 6 | % | ||||
Lodging | 5 | % | Asia | 6 | % | ||||
Residential/Condo | 4 | % | Mid-Atlantic | 5 | % | ||||
Debt | 3 | % | Europe | 4 | % | ||||
Industrial | 1 | % | |||||||
Total | 100 | % | Total | 100 | % |
(1) | As of June 30, 2018, the Company had contracts to sell the majority of its real estate private equity investments and concurrent with the sale the Company discontinued recognizing income for such investments. |
(2) | Represents the underlying fund interests in PE Investments by investment type and geographic location based on NAV as of March 31, 2018. |
Colony Capital | Supplemental Financial Report | 32 |
VIIIe. Other Equity and Debt - CRE Securities |
($ in thousands; as of June 30, 2018) | |||||
Portfolio Overview | Carrying Value | ||||
Deconsolidated CDO bonds | $ | 63,237 | |||
Deconsolidated CDO equity | 14,770 | ||||
CMBS | 199 | ||||
Core FFO | |||||
Q2 2018 aggregate Core FFO(1) | $ | 2,851 |
Colony Capital | Supplemental Financial Report | 33 |
IXa. Investment Management - Summary Metrics |
($ in thousands, except as noted; as of June 30, 2018) | Q2 2018 Fee Revenue - CLNY OP Share | |||
Overview | ||||
Institutional funds(1) | $ | 17,171 | ||
Colony Credit Real Estate (NYSE:CLNC) | 11,998 | |||
NorthStar Realty Europe (NYSE:NRE) | 4,222 | |||
Retail companies | 6,534 | |||
Non-wholly owned REIM platforms (earnings of investments in unconsolidated ventures)(2) | (809 | ) | ||
Total Q2 2018 reported fee revenue and REIM platform earnings of investments in unconsolidated ventures | $ | 39,116 | ||
Operating Results | ||||
Revenues | ||||
Total fee revenue and REIM earnings of investments in unconsolidated ventures | $ | 39,116 | ||
Other income and commission income | 9,618 | |||
Expenses | ||||
Investment, servicing and commission expenses | 5,923 | |||
Depreciation and amortization | 6,204 | |||
Impairment loss(3) | 60,312 | |||
Compensation expense | 15,299 | |||
Administrative expenses | 1,959 | |||
Total expenses | 89,697 | |||
Other gain (loss), net | (123 | ) | ||
Earnings of investments in unconsolidated ventures(4) | (11,788 | ) | ||
Income tax benefit | 2,882 | |||
Net income attributable to common interests in OP and common stockholders | (49,992 | ) | ||
Real estate depreciation and amortization | 785 | |||
(Gain) loss from sales of depreciable real estate | (48 | ) | ||
(Gains) and losses from sales of businesses within the Investment Management segment and impairment write-downs associated with the Investment Management segment | 16,437 | |||
Equity-based compensation expense | 1,815 | |||
Straight-line rent revenue and expense | (20 | ) | ||
Amortization of deferred financing costs and debt premiums and discounts | 55 | |||
Unrealized fair value gains or losses and foreign currency remeasurements | 23 | |||
Amortization and impairment of investment management intangibles | 66,550 | |||
Non-real estate depreciation and amortization | 10 | |||
Tax (benefit) expense, net | (1,475 | ) | ||
Core FFO | $ | 34,140 |
(1) | Includes a $3 million fee related to fund raising in the second quarter 2018 for the investment in AccorInvest, the property arm of AccorHotels. |
(2) | Earnings of investments in unconsolidated ventures includes a $4.2 million negative prior period adjustment related to the Company's investment in RXR Realty. |
(3) | Includes a $60 million writeoff of an intangible asset related to the NorthStar trade name as a result of the name change of the Company from Colony NorthStar, Inc. to Colony Capital, Inc. |
(4) | Includes $13 million of impairments to interests in non-wholly owned REIM platforms and $2 million of unrealized carried interest from the industrial platform. |
Colony Capital | Supplemental Financial Report | 34 |
IXb. Investment Management – Assets Under Management |
($ in millions, except as noted; as of June 30, 2018, unless otherwise noted) | |||||||||||||||
Segment | Products (FEEUM) | Description | AUM CLNY OP Share | FEEUM CLNY OP Share | Fee Rate | ||||||||||
Institutional Funds | • Credit ($2.7 billion) • Core plus / value-added ($0.3 billion) • Opportunistic ($0.5 billion) • Colony Industrial ($1.5 billion) • Other co-investment vehicles ($1.2 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 • Colony Industrial Open-End Fund | $ | 9,955 | $ | 6,172 | .8 | % | |||||||
Public Companies | • Colony Credit Real Estate, Inc. ($3.1 billion) • NorthStar Realty Europe Corp. ($1.1 billion) | • CLNC: NYSE-listed credit focused REIT • NRE: NYSE-listed European equity REIT • Contracts with base management fees with potential for incentive fees | 5,181 | 4,218 | 1.5 | % | |||||||||
Retail Companies | • NorthStar Healthcare ($1.6 billion) • NorthStar/RXR NY Metro Real Estate • NorthStar Real Estate Capital Income Funds(1) | • Manage public non-traded vehicles earning asset management and performance fees | 3,616 | 1,657 | 1.5 | % | |||||||||
Non-Wholly Owned REIM Platforms | • Digital Real Estate Infrastructure Co-sponsored Vehicle • RXR Realty • American Healthcare Investors • Steelwave • Hamburg Trust | • CLNY recognizes at-share earnings from underlying non-wholly owned REIM platforms • 50% investment in Digital Colony, the Company's digital real estate infrastructure vehicle established in partnership with Digital Bridge with an aggregate $3.0 billion of committed capital as of June 30, 2018 • 27% investment in RXR Realty, a real estate owner, developer and investment management company with $18 billion of AUM • 43% investment in American Healthcare Investors, a healthcare investment management firm and sponsor of non-traded vehicles with $3 billion of AUM | 9,392 | 5,033 | N/A | ||||||||||
Total | $ | 28,144 | $ | 17,080 |
(1) | NorthStar Real Estate Capital Income Funds represents a master/feeder structure and pools investor capital raised through three feeder funds. |
Colony Capital | Supplemental Financial Report | 35 |
Colony Capital | Supplemental Financial Report | 36 |
Xa. Appendices - Definitions |
Colony Capital | Supplemental Financial Report | 37 |
Xa. Appendices - Definitions |
Colony Capital | Supplemental Financial Report | 38 |
Xb. Appendices - Reconciliation of Net Income (Loss) to NOI/EBITDA |
($ in thousands; for the three months ended June 30, 2018) | ||||||||||||||||
NOI and EBITDA Determined as Follows | Healthcare | Industrial | Hospitality | Other Equity and Debt—Net Lease Properties | ||||||||||||
Total revenues | $ | 145,419 | $ | 72,477 | $ | 229,373 | $ | 10,355 | ||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (1,580 | ) | (2,554 | ) | (6 | ) | (393 | ) | ||||||||
Interest income | — | (62 | ) | — | — | |||||||||||
Other income | — | — | (68 | ) | — | |||||||||||
Property operating expenses(1) | (69,983 | ) | (20,483 | ) | (143,321 | ) | (2,033 | ) | ||||||||
Compensation expense(1) | — | (300 | ) | — | — | |||||||||||
NOI or EBITDA | $ | 73,856 | $ | 49,078 | $ | 85,978 | $ | 7,929 | ||||||||
Reconciliation of Net Income (Loss) from Continuing Operations to NOI/EBITDA | ||||||||||||||||
Healthcare | Industrial | Hospitality | ||||||||||||||
Net income (loss) from continuing operations | $ | (20,080 | ) | $ | 4,668 | $ | 6,771 | |||||||||
Adjustments: | ||||||||||||||||
Straight-line rent revenue and amortization of above- and below-market lease intangibles | (1,580 | ) | (2,554 | ) | (6 | ) | ||||||||||
Interest income | — | (62 | ) | — | ||||||||||||
Interest expense | 45,179 | 10,856 | 36,494 | |||||||||||||
Transaction, investment and servicing costs | 3,110 | 60 | 3,546 | |||||||||||||
Depreciation and amortization | 38,229 | 32,482 | 35,925 | |||||||||||||
Impairment loss | 1,982 | 174 | — | |||||||||||||
Compensation and administrative expense | 2,196 | 3,416 | 1,598 | |||||||||||||
Other (gain) loss, net | 4,465 | — | 162 | |||||||||||||
Other income | — | — | (68 | ) | ||||||||||||
Income tax (benefit) expense | 355 | 38 | 1,556 | |||||||||||||
NOI or EBITDA | $ | 73,856 | $ | 49,078 | $ | 85,978 |
(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. |
Colony Capital | Supplemental Financial Report | 39 |
Xb. Appendices - Reconciliation of Net Income (Loss) to NOI/EBITDA (cont’d) |
($ in thousands; for the three months ended June 30, 2018) | ||||
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 | $ | 61,853 | ||
Adjustments: | ||||
Property operating income of other real estate equity | (135,500 | ) | ||
Straight-line rent revenue and amortization of above- and below-market lease intangibles for net lease real estate equity | (375 | ) | ||
Interest income | (42,586 | ) | ||
Fee and other income | (2,509 | ) | ||
Property operating expense of other real estate equity | 84,836 | |||
Interest expense | 46,476 | |||
Transaction, investment and servicing costs | 13,362 | |||
Depreciation and amortization | 23,521 | |||
Provision for loan loss | 13,933 | |||
Impairment loss | 7,366 | |||
Compensation and administrative expense | 5,975 | |||
Gain on sale of real estate assets | (42,702 | ) | ||
Other loss, net | (18,216 | ) | ||
Earnings of investments in unconsolidated ventures | (7,767 | ) | ||
Income tax expense | 262 | |||
NOI of net lease real estate equity | $ | 7,929 |
Colony Capital | Supplemental Financial Report | 40 |