INDUS Realty Trust, Inc. (Nasdaq: INDT) (“INDUS” or the
“Company”), a U.S. based industrial/logistics REIT, today
reported financial results for the three months ended December 31,
2021 (the “2021 fourth quarter”) and the twelve months ended
December 31, 2021 (“full year 2021”).
Fourth Quarter & Recent
Highlights
- Net Income of $19.6 million, or $1.94 per diluted share, for
the 2021 fourth quarter compared to a net loss of $8.8 million, or
a net loss of $1.56 per diluted share, for the three months ended
December 31, 2020 (the “2020 fourth quarter”)
- Core Funds from Operations (“Core FFO”)1 of $3.8 million, or
$0.38 per diluted share, for the 2021 fourth quarter compared to
$3.0 million, $0.52 per diluted share, for the 2020 fourth
quarter
- Net Operating Income (“NOI”)1 from industrial/logistics
properties of $8.3 million for the 2021 fourth quarter compared to
$6.3 million for the 2020 fourth quarter
- Cash Net Operating Income (“NOI”)1 from industrial/logistics
properties of $7.5 million for the 2021 fourth quarter compared to
$5.6 million for the 2020 fourth quarter
- Acquired approximately 325,000 square feet across two
industrial/logistics buildings in the Charlotte, North Carolina and
the Charleston, South Carolina markets for a combined purchase
price of $43.2 million, before transaction costs
- Purchased 23 acres of land for a purchase price of $3.9
million, before transaction costs, to support the planned
development of an approximately 206,000 square foot
industrial/logistics property
- Placed in service a 141,000 square foot industrial/logistics
building for Amazon in Charlotte (the “Charlotte
Build-to-Suit”)
- Completed four separate disposition transactions for total
gross proceeds of $34.5 million
- Completed an underwritten public offering of 2,443,228 shares
of the Company’s Common Stock at a public offering price of $66.00
per share for net proceeds of $152.8 million
- Declared a 2021 fourth quarter cash dividend of $0.16 per
share, a 6.7% increase over prior quarter
- Industrial/logistics portfolio was 98.4% leased; stabilized2
industrial/logistics portfolio was 100.0% leased
- Subsequent to quarter end, announced the intention to sell all
of the Company’s remaining office/flex buildings along with a small
storage facility that is located within the same business park
- Subsequent to quarter end, completed the acquisition of an
approximately 217,000 square foot industrial/logistics building in
the Charlotte, North Carolina market for a purchase price of $23.6
million, before transaction costs
- Subsequent to quarter end, entered into an agreement to acquire
a to-be-constructed approximately 280,000 square foot
industrial/logistics building in the Greenville/Spartanburg, South
Carolina market
Results of Operations
INDUS reported total rental revenue of $11.7 million and $42.3
million for the 2021 fourth quarter and full year 2021,
respectively, as compared to $9.8 million and $37.7 for the 2020
fourth quarter and the twelve months ended December 31, 2020 (“full
year 2020”), respectively. The increase in rental revenue during
2021 fourth quarter and full year 2021 over the comparable prior
year periods was primarily due to rental revenue from properties
acquired in 2021, the Charlotte Build-to-Suit placed in service in
October 2021, and leases of first-generation space which commenced
during 2021.
NOI from industrial/logistics properties, which is defined as
rental revenue less operating expenses of rental properties and
real estate taxes, increased to approximately $8.3 million and
$28.2 million in the 2021 fourth quarter and full year 2021,
respectively, from $6.3 million and $24.0 million in the 2020
fourth quarter and full year 2020, respectively.
NOI from industrial/logistics properties on a cash basis (“Cash
NOI”) for the 2021 fourth quarter and full year 2021 increased to
$7.5 million and $25.8 million, respectively, as compared to $5.6
million and $21.8 million for the comparable prior year periods.
The increases in NOI and Cash NOI from industrial/logistics
properties during the 2021 fourth quarter and full year 2021
periods over the respective 2020 periods, principally reflected
increases in rental revenue as a result of more space
owned/acquired and under lease as noted above.
NOI and Cash NOI for INDUS’ industrial/logistics properties was
as follows:
($ in 000s)
Three Months Ended December
31,
Full Year December 31,
2021
2020
Increase
2021
2020
Increase
NOI
$
8,297
$
6,275
32.2%
$
28,220
$
24,033
17.4%
Cash NOI
$
7,470
$
5,571
34.1%
$
25,845
$
21,761
18.8%
General and administrative expenses increased to approximately
$3.8 million and $11.8 million for the 2021 fourth quarter and full
year 2021, respectively, as compared to $3.6 million and $10.5
million for the comparable prior year periods. The increases in
general and administrative expenses in the 2021 fourth quarter and
full year 2021, respectively, as compared to the 2020 fourth
quarter and full year 2020 were primarily attributable to
compensation costs associated with higher employee headcount and
incentive compensation expense, which was partially offset by a
reduction of costs in 2021 as compared to 2020 related to the
Company’s conversion to a REIT.
Interest expense decreased to approximately $1.7 million and
$6.9 million for the 2021 fourth quarter and full year 2021 from
approximately $1.8 million and $7.3 million for the comparable
prior year periods. The change principally reflected an increase in
capitalized interest related to construction and development
activities during 2021. This was partially offset by additional
interest expense related to the addition of a construction loan in
2021, which was not in place during the prior year.
For the 2021 fourth quarter and full year 2021, INDUS recorded
net income of approximately $19.6 million and $14.1 million,
respectively, as compared to a net loss of $8.8 million and $10.5
million for the comparable prior year periods. The increases in net
income principally reflect increases in gains on sales of real
estate, and to a lesser extent, the changes in NOI and interest
expense as noted above. Gains on sales of real estate were $24.8
million and $2.3 million for the years ended December 31, 2021 and
2020, respectively.
Core FFO for the 2021 fourth quarter and full year 2021
increased to approximately $3.8 million and $13.7 million,
respectively, compared to approximately $3.0 million and $11.6
million for the comparable prior year periods. Core FFO was driven
higher principally by increased NOI from industrial/logistics
properties and lower interest expense offset by higher recurring
general and administrative expenses, which exclude the impact of
charges related to the Company’s conversion to a REIT and charges
related to the Company’s non-qualified deferred compensation
plan.
Industrial/Logistics Leasing
Activity
During the 2021 fourth quarter, INDUS entered into two first
generation leases totaling approximately 224,000 square feet. These
leases include approximately 27,000 square feet in Orlando, Florida
at a property that was repositioned by INDUS during late 2020 and
early 2021 and approximately 197,000 square feet at a value-add
property in the Charlotte market that was purchased 50% vacant at
the end of the 2021 second quarter. The lease in Orlando commenced
in the 2021 fourth quarter and the lease in Charlotte is expected
to commence in the 2022 second quarter.
Also, during the 2021 fourth quarter, two full-building tenants
totaling approximately 256,000 square feet exercised their fixed
renewal options for leases expiring in 2022. The two buildings are
located in the Charlotte, North Carolina and Lehigh Valley,
Pennsylvania markets and were acquired in 2021 with in-place leases
that had near-term expirations. The fixed renewal options were for
five-year terms with no leasing costs and generated weighted
average rent growth on a cash basis3 of 2.9%, which is
significantly lower than what the Company would expect to realize
if the spaces were leased to new tenants.
As of December 31, 2021, INDUS’ 35 industrial/logistics
buildings aggregated approximately 5.2 million square feet. INDUS’
industrial/logistics portfolio’s percentage leased and percentage
leased stabilized properties were as follows:
Dec. 31,
2021
Sept. 30,
2021
June 30,
2021
Mar. 31,
2021
Percentage Leased
98.4%
95.4%
95.3%
99.2%
Percentage Leased – Stabilized
Properties
100.0%
99.4%
99.4%
99.2%
As of December 31, 2021, INDUS’ only industrial/logistics
vacancy is for approximately 84,000 square feet in a Charleston,
South Carolina property acquired during November 2021.
Acquisition Pipeline
During the 2021 fourth quarter, INDUS completed separate
acquisitions of two industrial/logistics buildings, totaling
approximately 325,000 square feet, within the Charlotte, North
Carolina and Charleston, South Carolina markets. The Charlotte
acquisition was fully-leased and the Company used cash on hand to
pay the $14.6 million purchase price, before transaction costs,
which equates to an in-place cash capitalization rate of
approximately 4.6%. The Charleston acquisition was 57% leased and
the Company used cash on hand to pay the $28.6 million purchase
price, before transaction costs. INDUS expects that the Charleston
acquisition will stabilize at an approximately 4.6% cash
capitalization rate.
Subsequent to quarter end, INDUS completed the acquisition of a
recently constructed, 217,000 square foot industrial/logistics
building in the Charlotte, North Carolina market (“782 Paragon
Way”). 782 Paragon Way is fully leased on a short-term basis
through June 2022 with in-place rents that are below current market
rates. The Company expects that 782 Paragon Way will be re-leased
to stabilize at an approximate 4.7% cash capitalization rate. The
Company used cash on hand to pay the $23.6 million purchase price,
before transaction costs.
Also subsequent to quarter end, the Company announced that it
recently entered into a purchase agreement to acquire a
to-be-constructed, approximately 280,000 square foot
industrial/logistics building in the Greenville/Spartanburg, South
Carolina market (the “Greenville/Spartanburg Acquisition”), which
is being developed on speculation by the seller. The
Greenville/Spartanburg Acquisition is expected to be delivered upon
completion in the 2023 first quarter and would be the Company’s
first entry into this market.
The following is a summary of INDUS’ acquisition pipeline for
its industrial/logistics portfolio as of December 31, 2021:
Acquisition
Market
Building Size (SF)
Type
Purchase Price (in
000’s)
Closing Date
Building Acquisitions Completed in 2022
YTD
782 Paragon Way
Charlotte, NC
217,000
Value-Add (100% leased)
$23,611
January 2022
Total Acquisition Completed in 2022
YTD
217,000
$23,611
Acquisition
Market
Building Size (SF)
Type
Purchase Price (in
000’s)
Expected Closing
Acquisitions Under Contract
Nashville Acquisition (Two buildings)
Nashville, TN
184,000
Forward (42.9% pre-leased)
$31,500
Q1 2022
Charleston Forward Acquisition (One
building)
Charleston, SC
263,000
Forward
$28,000
Q4 2022
Greenville/Spartanburg Acquisition (One
building)
Greenville/Spartanburg, SC
280,000
Forward
$28,500
Q1 2023
Charlotte Forward Acquisition (One
building)
Charlotte, NC
231,000
Forward
$21,200
Q1 2023
Total Acquisition Pipeline Under
Contract
958,000
$109,200
The acquisitions in INDUS’ pipeline are each subject to the
satisfactory completion of due diligence and other contingencies.
There can be no guarantee that these transactions will be completed
under their current terms, anticipated timelines, or at all.
Development Pipeline
During the 2021 fourth quarter, INDUS completed and placed in
service the Charlotte Build-to-Suit for Amazon and also completed
the acquisition of two previously announced abutting parcels of
land in Allentown, PA totaling approximately 23 acres (see American
Parkway in table below).
The following is a summary of INDUS’ development pipeline for
its industrial/logistics portfolio as of December 31, 2021:
Name
Market
Building Size (SF)
Type
Expected Delivery
Owned Land
Chapmans Road (one building)
Lehigh Valley, PA
103,000
66% Pre-leased
Q2 2022
110 Tradeport Drive (one building)
Hartford, CT
234,000
67% Pre-leased
Q3 2022
Landstar Logistics (two buildings)
Orlando, FL
195,000
Speculative
Q3 2022
American Parkway (one building)
Lehigh Valley, PA
206,000
Speculative
Q2 2023
Land Under Purchase & Sale
Agreement
Lehigh Valley Land parcel (one
building)
Lehigh Valley, PA
90,000
Speculative
Q3 2023
Total Development Pipeline
828,000
INDUS expects that the total development and stabilization costs
of developments in its pipeline will total approximately $92.8
million, of which $31.0 million was spent as of December 31, 2021.
The Company estimates that the underwritten weighted average
stabilized Cash NOI yield on its development pipeline is between
6.0% - 6.5%.4 Actual initial full year stabilized Cash NOI yields
may vary from INDUS’ estimated underwritten stabilized Cash NOI
yield range based on the actual total cost to complete a project or
acquire a property and its actual initial full year stabilized Cash
NOI.
Closing on the purchase of the Lehigh Valley Land parcel, in
addition to the completion and stabilization of the development
pipeline, are each subject to a number of contingencies including
the satisfactory completion of due diligence by INDUS. There can be
no guarantee that these transactions and developments will be
completed under their current terms, anticipated timelines, at the
Company’s estimated underwritten yields, or at all.
Disposition Pipeline
During the 2021 fourth quarter, INDUS completed four separate,
previously-announced disposition transactions that generated
approximately $34.5 million in aggregate gross proceeds before
transactions costs. INDUS utilized $14.1 million of these proceeds,
inclusive of debt extinguishment costs, to extinguish three
mortgages with a weighted average interest rate of approximately
5.0%. The dispositions completed during the quarter included one
industrial/logistics property and three office/flex properties,
which (on a combined basis) contributed approximately $2.0 million
and $1.8 million in NOI and Cash NOI, respectively, during the full
year 2021. Furthermore, during the 2021 fourth quarter, INDUS
completed the sale of approximately 670 acres of land in East
Granby and Granby, Connecticut, which is leased to a nursery
operator and contributed $0.7 million in both NOI and Cash NOI
during the full year 2021. Also during the 2021 fourth quarter, the
buyer under the previously announced East Granby/Windsor Option
Agreement elected not to proceed with the purchase.
Subsequent to quarter end, INDUS announced its intention to sell
all of its remaining office/flex buildings (the “Office/Flex
Portfolio”) along with a small storage facility totaling
approximately 18,000 square feet that is located within the same
business park. The Office/Flex Portfolio is comprised of seven
buildings located in Windsor and Bloomfield Connecticut totaling
approximately 175,200 square feet. Following the sale of the
Office/Flex Portfolio, INDUS is expected to be a pure-play
industrial/logistics REIT with a modern portfolio located in select
high-growth markets.
Liquidity & Capital
Resources
As of December 31, 2021, the Company maintained $250.3 million
of liquidity which reflects $150.3 million of cash and cash
equivalents and $100 million of borrowing capacity under the
revolving credit facility. In addition, the Company had $10.6
million of restricted cash that was principally comprised of cash
held by an intermediary and was subsequently used in connection
with the purchase of 782 Paragon Way in January 2022.
On October 8, 2021, INDUS completed an underwritten public
equity offering at a public offering price of $66.00 per share.
INDUS received proceeds of $152.8 million, after expenses, from the
aggregate of 2,443,228 shares issued on October 8, 2021, the date
of the initial offering, and on October 22, 2021, the date upon
which the underwriters exercised their option to purchase
additional Common Stock from INDUS.
Fourth Quarter & Full Year Earnings
Conference Call, Earnings Supplement and Investor
Presentation
INDUS is hosting a live earnings conference call on Monday,
March 7, 2022, at 10:00 am Eastern Time, to discuss its results and
to provide a business update, followed by a live question and
answer session. Supplemental materials containing additional
financial and operating information will be available on INDUS’
website at the start of the call. All investors and other
interested parties are invited to either dial in to the call (to
participate in a live Q&A) or log in to a listen-only webcast
which, together with the supplemental information, can be accessed
via the Investors section of INDUS’ website at ir.indusrt.com, by
clicking this link, or by calling the following numbers:
PARTICIPANT DIAL IN (TOLL FREE): 1-866-777-2509 PARTICIPANT
INTERNATIONAL DIAL IN: 1-412-317-5413
An archived recording of the webcast will be available for three
months under the Investors section of INDUS’ website at
ir.indusrt.com.
About INDUS
INDUS is a real estate business principally engaged in
developing, acquiring, managing and leasing industrial/logistics
properties. INDUS owns 36 industrial/logistics buildings totaling
approximately 5.4 million square feet in Connecticut, Pennsylvania,
North Carolina, South Carolina and Florida.
Forward-Looking Statements:
This Press Release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include INDUS’ beliefs
and expectations regarding future events or conditions including,
without limitation, the completion of acquisitions and dispositions
under agreements, construction and development plans and timelines,
the estimated underwritten stabilized Cash NOI of its developments
and Cash NOI yield estimates, expected total development and
stabilization costs of developments in INDUS’ pipeline, and
expected capital availability and liquidity. Although INDUS
believes that its plans, intentions and expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such plans, intentions or expectations will be
achieved. The projected information disclosed herein is based on
assumptions and estimates that, while considered reasonable by
INDUS as of the date hereof, are inherently subject to significant
business, economic, competitive and regulatory uncertainties and
contingencies, many of which are beyond the control of INDUS and
which could cause actual results and events to differ materially
from those expressed or implied in the forward-looking statements.
Other important factors that could affect the outcome of the events
set forth in these statements are described in INDUS’ Securities
and Exchange Commission (“SEC”) filings, including the “Business,”
“Risk Factors” and “Forward-Looking Statements” sections in INDUS’
Annual Report on Form 10-K for the Full year ended November 30,
2020, filed with the SEC on February 18, 2021, as updated by the
Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 2021 and other filings with the Securities and
Exchange Commission. INDUS disclaims any obligation to update any
forward-looking statements as a result of developments occurring
after the date of this press release except as required by law.
Note Regarding Non-GAAP Financial Measures:
The Company uses FFO, Core FFO, Core FFO per share, NOI, Cash
NOI, NOI of Industrial/Logistics Properties and Cash NOI of
Industrial/Logistics Properties, as supplemental non-GAAP
performance measures. Management believes that the use of these
measures combined with net income (loss) (which remains the
Company’s primary measure of performance), improves the
understanding of the Company’s operating results among the
investing public and makes comparisons of operating results to
other REITs more meaningful.
The Company presents a funds from operations metric
substantially similar to funds from operations as calculated in
accordance with standards established by Nareit (“Nareit FFO”).
Nareit FFO is calculated as net income (calculated in accordance
with U.S. GAAP), excluding: (a) depreciation and amortization
related to real estate, (b) gains and losses from the sale of
certain real estate assets, (c) gains and losses from change in
control and (d) impairment write-downs of certain real estate
assets and investments in entities when the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity.
The Company defines FFO as Nareit FFO, plus an adjustment to
remove the impact of an income tax benefit or provision in the
periods prior to January 1, 2021. The Company includes the
adjustment for income taxes because, beginning with the taxable
year ending December 31, 2021, the Company intends to elect to be
taxed as a REIT and believes including this adjustment enhances the
comparability of the Company’s results for periods prior to this
tax election. The Company believes it is useful to investors to
have enhanced transparency into the way in which its management
evaluates operating performance to prior comparable periods and
with that of other REITs. This tax adjustment was not required for
Full year 2021.
The Company defines Core FFO and Core FFO per share as FFO and
FFO per share, respectively, excluding: (a) costs related to
conversion to a REIT; (b) expense related to the performance of the
non-qualified deferred compensation plan; (c) change in fair value
of financial instruments; (d) gains or losses on insurance
recoveries and/or extinguishment of debt or derivative instruments;
and (e) the write-off of non-recurring items. Per share metrics are
calculated as Core FFO for the period divided by the weighted
average diluted share count for the period.
NOI is a non-GAAP measure that includes the rental revenue and
operating expenses and real estate taxes directly attributable to
the Company’s real estate properties. NOI of Industrial/Logistics
Properties is NOI excluding NOI for the Company’s
non-industrial/logistics properties. The Company uses NOI and NOI
of Industrial/Logistics Properties as supplemental performance
measures because, in excluding real estate depreciation and
amortization expense, general and administrative expenses, interest
expense, gains (or losses) on the sale of real estate assets,
investment income and other non-operating items, they provide a
performance measure that, when compared year over year, captures
trends in occupancy rates, rental rates and operating costs. The
Company also believes that NOI and NOI of Industrial/Logistics
Properties will be useful to investors as a basis to compare its
operating performance with that of other REITs. However, because
NOI and NOI of Industrial/Logistics Properties excludes
depreciation and amortization expense and captures neither the
changes in the value of the Company’s properties that result from
use or market conditions, nor the level of capital expenditures and
leasing commissions necessary to maintain the operating performance
of its properties (all of which have a real economic effect and
could materially impact the Company’s results from operations), the
utility of NOI and NOI of Industrial/Logistics Properties as
measures of the Company’s performance is limited. Other equity
REITs may not calculate NOI or NOI of Industrial/Logistics
Properties in a similar manner and, accordingly, the Company’s NOI
and NOI of Industrial/Logistics Properties may not be comparable to
such other REITs’ NOI. Accordingly, NOI and NOI of
Industrial/Logistics Properties should be considered only as a
supplement to net income (loss) as a measure of the Company’s
performance. NOI and NOI of Industrial/Logistics Properties should
not be used as measures of the Company’s liquidity, nor is it
indicative of funds available to fund the Company’s cash needs. NOI
and NOI of Industrial/Logistics Properties should not be used as a
substitute for cash flow from operating activities in accordance
with U.S. GAAP.
Cash NOI is a non-GAAP measure that the Company calculates by
adding or subtracting non-cash rental revenue, including
straight-line rental revenue, from NOI. Cash NOI of
Industrial/Logistics Properties is Cash NOI excluding NOI for the
Company’s non-industrial/logistics properties. The Company uses
Cash NOI and Cash NOI of Industrial/Logistics Properties, together
with NOI and NOI of Industrial/Logistics Properties, as
supplemental performance measures. Cash NOI and Cash NOI of
Industrial/Logistics Properties should not be used as measures of
the Company’s liquidity, nor are they indicative of funds available
to fund the Company’s cash needs. Cash NOI and Cash NOI of
Industrial/Logistics Properties should not be used as a substitute
for cash flow from operating activities computed in accordance with
U.S. GAAP.
INDUS REALTY TRUST, INC.
Consolidated Statements of
Operations
(dollars and share count in
thousands, except per share data)
(unaudited)
2021 Fourth Quarter
2020 Fourth Quarter
2021 Twelve Month
Period
2020 Twelve Month
Period
Rental revenue
$
11,662
$
9,804
$
42,339
$
37,650
Expenses:
Operating expenses of rental
properties
1,020
1,181
5,003
4,680
Real estate taxes
1,709
1,501
6,293
5,636
Depreciation and amortization expense
4,650
3,461
15,352
13,686
General and administrative expenses
3,839
3,568
11,816
10,503
Total expenses
11,218
9,711
38,464
34,505
Other income (expense):
Interest expense
(1,717
)
(1,818
)
(6,877
)
(7,294
)
Impairment of real estate assets
—
(2,085
)
(3,000
)
(2,085
)
Change in fair value of financial
instruments
—
(2,619
)
(2,746
)
(3,189
)
Gain on sales of real estate assets
22,966
1,504
24,758
2,329
Investment and other income
19
14
260
46
Loss on debt extinguishment
(2,114
)
—
(2,114
)
—
Other income (expense)
14
(281
)
14
(281
)
19,168
(5,285
)
10,295
(10,474
)
Income (loss) before income
taxes
19,612
(5,192
)
14,170
(7,329
)
Income tax expense
(2
)
(3,652
)
(26
)
(3,152
)
Net income (loss)
$
19,610
($
8,844
)
$
14,144
($
10,481
)
Basic net income (loss) per common
share
$
1.98
($
1.56
)
$
1.79
($
1.97
)
Diluted net income (loss) per common
share
$
1.94
($
1.56
)
$
1.75
($
1.97
)
Weighted average shares outstanding -
basic
9,920
5,660
7,908
5,309
Weighted average shares outstanding –
diluted
10,131
5,660
8,081
5,309
INDUS REALTY TRUST, INC.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
December 31, 2021
December 31, 2020
ASSETS
Real estate assets at cost, net
$
394,166
$
242,321
Cash and cash equivalents
150,263
28,124
Restricted cash
10,644
2,551
Real estate assets held for sale, net
—
6,802
Other assets
35,573
19,586
Total assets
$
590,646
$
299,384
LIABILITIES AND STOCKHOLDERS'
EQUITY
Mortgage loans and construction loan, net
of debt issuance costs
$
169,818
$
160,655
Deferred revenue
7,985
9,586
Accounts payable and accrued
liabilities
9,738
3,669
Dividends payable
1,629
—
Warrant liability
—
8,790
Other liabilities
15,399
17,567
Total liabilities
$
204,569
$
200,267
Stockholders' Equity
Common stock, par value $0.01 per share,
50,000,000 authorized, 10,183,730 shares issued and outstanding,
and 10,000,000 shares authorized, 5,663,040 shares issued and
outstanding, respectively
102
57
Additional paid-in capital
399,754
116,732
Accumulated deficit
(10,869
)
(9,817
)
Accumulated other comprehensive loss
(2,910
)
(7,855
)
Total stockholders' equity
386,077
99,117
Total liabilities and stockholders'
equity
$
590,646
$
299,384
INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – Funds
from Operations (“FFO”) and Core FFO
(dollars and share count in
thousands, except per share measures)
(unaudited)
2021 Fourth Quarter
2020 Fourth Quarter
2021 Twelve Month
Period
2020 Twelve Month
Period
Net income (loss)
$
19,610
($
8,844
)
$
14,144
($
10,481
)
Exclude:
Depreciation and amortization expense
4,650
3,461
15,352
13,686
Non-real estate depreciation &
amortization expense
(25
)
(1
)
(88
)
(68
)
Gain on sales of real estate assets
(22,966
)
(1,504
)
(24,758
)
(2,329
)
Impairment loss
-
2,085
3,000
2,085
Income tax benefit
-
3,652
-
3,152
FFO
$
1,269
$
(1,151
)
$
7,650
$
6,045
Exclude:
General and administrative expenses
related to REIT conversion5
63
1,045
470
1,796
General and administrative expenses
related to non-qualified deferred compensation plan performance
335
474
686
556
Change in fair value of financial
instruments
-
2,619
2,746
3,189
Amortization of terminated swap
agreement
66
-
66
-
Loss on debt extinguishment
2,114
-
2,114
-
Core FFO
$
3,847
$
2,987
$
13,732
$
11,586
Weighted average number of shares
outstanding -basic
9,920
5,660
7,908
5,309
Dilutive securities
211
86
173
68
Weighted average number of shares
outstanding - diluted
10,131
5,746
8,081
5,377
Core FFO/Share – Diluted
$
0.38
$
0.52
$
1.70
$
2.15
INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – NOI
and Cash NOI
(dollars in thousands)
(unaudited)
2021 Fourth Quarter
2020 Fourth Quarter
2021 Twelve Month
Period
2020 Twelve Month
Period
Net income (loss)
$
19,610
($
8,844
)
$
14,144
($
10,481
)
Income tax expense
2
3,652
26
3,152
Pre-tax income (loss)
$
19,612
($
5,192
)
$
14,170
($
7,329
)
Exclude:
Depreciation and amortization expense
4,650
3,461
15,352
13,686
General and administrative expenses
3,839
3,568
11,816
10,503
Interest expense
1,717
1,818
6,877
7,294
Change in fair value of financial
instruments
-
2,619
2,746
3,189
Gain on sales of real estate assets
(22,966
)
(1,504
)
(24,758
)
(2,329
)
Impairment loss
-
2,085
3,000
2,085
Investment and other income
(19
)
(14
)
(260
)
(46
)
Loss on debt extinguishment
2,114
-
2,114
-
Other (income) expense
(14
)
281
(14
)
281
NOI
$
8,933
$
7,122
$
31,043
$
27,334
Noncash rental revenue including
straight-line rents
(1,007
)
(754
)
(2,617
)
(2,696
)
Cash NOI
$
7,926
$
6,368
$
28,426
$
24,638
NOI
$
8,933
$
7,122
$
31,043
$
27,334
Exclude:
Rental revenue from
non-industrial/logistics properties
(1,074
)
(1,498
)
(5,435
)
(6,143
)
Operating expenses of
non-industrial/logistics properties
438
651
2,612
2,842
NOI of Industrial/Logistics
Properties
$
8,297
$
6,275
$
28,220
$
24,033
Noncash rental revenue including
straight-line rents of industrial/logistics properties
(827
)
(704
)
(2,375
)
(2,272
)
Cash NOI of Industrial/Logistics
Properties
$
7,470
$
5,571
$
25,845
$
21,761
1 Core FFO, Core FFO per share, NOI and Cash NOI are not
financial measures in conformity with generally accepted accounting
principles in the United States of America (“U.S. GAAP”). For
additional information, see “Note Regarding Non-GAAP Financial
Measures.”
2 Stabilized Properties reflect buildings that have reached 90%
leased or have been in service for at least one year since
development completion or acquisition date, whichever is earlier.
7770 Palmetto Commerce Parkway, which was 57.1% leased as of
December 31, 2021, was acquired on November 16, 2021, and is not
included in the Stabilized Properties pool for the 2021 fourth
quarter.
3 Weighted average rent growth reflects the percentage change of
annualized rental rates between the previous leases and the current
leases. The rental rate change on a straight-line basis represents
average annual base rental payments on a straight-line basis for
the term of each lease including free rent periods. Cash basis rent
growth represents the change in starting rental rates per the lease
agreement on new and renewed leases signed during the period, as
compared to the previous ending rental rates for that same space.
The cash rent growth calculation excludes free rent periods.
4 As a part of INDUS’ standard development and acquisition
underwriting process, INDUS analyzes the targeted initial full year
stabilized Cash NOI yield for each development project and
acquisition target and establishes a range of initial full year
stabilized Cash NOI yields, which it refers to as “underwritten
stabilized Cash NOI yields.” Underwritten stabilized Cash NOI
yields are calculated as a development project’s or acquisition’s
initial full year stabilized Cash NOI as a percentage of its
estimated total investment, including costs to stabilize the
buildings to 95% occupancy (other than in connection with
build-to-suit development projects and single tenant properties).
INDUS calculates initial full year stabilized Cash NOI for a
development project or acquisition by subtracting its estimate of
the development project’s or acquisition’s initial full year
stabilized operating expenses, real estate taxes and non-cash
rental revenue, including straight-line rents (before interest,
income taxes, if any, and depreciation and amortization), from its
estimate of its initial full year stabilized rental revenue.
5 The 2021 fourth quarter includes $23 of accounting and tax
consulting costs related to the Company’s REIT conversion and $40
of costs related to recruitment of personnel. The 2020 fourth
quarter includes $103 in compensation cost and $942 in legal costs.
For the years ended December 31, 2021 and 2020, includes legal fees
of $203 and $1,477, respectively, and consulting costs related to
accounting, compensation and recruitment of personnel of $267 and
$319, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220307005292/en/
Ashley Pizzo Vice President, Capital Markets &
Investor Relations (212) 218-7914
apizzo@indusrt.com
Jon Clark Executive Vice President, Chief Financial
Officer (860) 286-2419 jclark@indusrt.com
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