INDUS Realty Trust, Inc. (Nasdaq: INDT) (“INDUS” or the
“Company”), a U.S. based industrial/logistics REIT, today
reported financial results for the quarter ending June 30, 2022
(the “2022 second quarter”).
2022 Second Quarter
Highlights
- Net income of $2.8 million, or $0.27 per diluted share, for the
2022 second quarter compared to a net loss of $1.2 million, or
$0.15 per diluted share, for the quarter ending June 30, 2021 (the
“2021 second quarter”)
- Core Funds from Continuing Operations (“Core FFO from
continuing operations”)1 of $5.0 million, or $0.48 per diluted
share, for the 2022 second quarter compared to $2.9 million, or
$0.37 per diluted share, for the 2021 second quarter
- Net Operating Income from Continuing Operations (“NOI from
continuing operations”)1 of $9.2 million for the 2022 second
quarter compared to $7.0 million for the 2021 second quarter
- As of June 30, 2022, stabilized2 portfolio was 100.0% leased;
total in-service portfolio was 99.4% leased
- Acquired a fully-leased, approximately 205,000 square foot
portfolio of last-mile industrial/logistics buildings located in
the Orlando and Palm Beach, Florida markets
- Completed and placed into service a 66% pre-leased,
approximately 102,000 square foot building in Lehigh Valley,
Pennsylvania. Subsequent to quarter end, executed a lease for the
remaining space and the building is now fully-leased
- Leased the remaining 78,000 square feet in the 234,000 square
foot development in Connecticut expected to deliver late in Q3
2022
- Amended and restated the existing $100 million credit agreement
to increase the size to $250 million with the addition of a new
$150 million delayed draw term loan with a term of five years (the
“DDTL”)
- Repaid four existing mortgages covering ten buildings with $60
million in proceeds from the DDTL resulting in no fixed-rate debt
maturities until 2027
- Added to the MSCI US REIT Index as part of the May 2022
Semi-Annual Index Review for the MSCI Equity Indexes
- Recognized as a 2022 Green Lease Leader for innovation in
environmental stewardship, including collaborative tenant
engagement
2022 Second Quarter Results of
Operations
INDUS reported total rental revenue of $11.7 million for the
2022 second quarter as compared to $9.3 million for the 2021 second
quarter. The 26% increase in rental revenue was primarily due to
acquisition activity in 2021, the Charlotte build to suit placed in
service in October 2021, the acquisition of 782 Paragon Way in
Charlotte, North Carolina in January 2022 and increases in overall
total portfolio occupancy from 95.3% to 99.4%.
For the 2022 second quarter, INDUS recorded net income of
approximately $2.8 million as compared to a net loss of $1.2
million for the comparable prior year period.
Core FFO from continuing operations for the 2022 second quarter
increased to approximately $5.0 million, or $0.48 per diluted
share, compared to approximately $2.9 million, or $0.37 per diluted
share, for the comparable prior year period.
NOI from continuing operations, which is defined as rental
revenue less operating expenses of rental properties and real
estate taxes, increased 31.4% to approximately $9.2 million in the
2022 second quarter from $7.0 million in the 2021 second
quarter.
Cash NOI from continuing operations for the 2022 second quarter
increased 24.2% to $8.2 million as compared to $6.6 million for the
comparable prior year period.
General and administrative expenses were approximately $2.4
million for the 2022 second quarter as compared to $2.7 million for
the comparable prior year period. General and administrative
expense in 2022 was reduced by a $0.7 million decline in the
deferred compensation plan.
Interest expense was approximately $0.2 million for the 2022
second quarter as compared to $1.7 million in the 2021 second
quarter. Interest expense for the 2022 second quarter was net of
approximately $1.2 million received by the Company in relation to
the termination of interest rate hedges on mortgages paid off
during the quarter. Interest expense was further reduced by both an
increase in capitalized interest of $0.2 million due to an increase
in the Company’s development pipeline and a lower overall debt
balance in the 2022 second quarter as compared to the prior
period.
Leasing Activity
INDUS reported the following second generation leasing metrics
for the 2022 second quarter:
Number of
Leases
Square Feet
Weighted
Avg. Lease
Term in
Years
Weighted
Avg. Lease
Costs PSF per
Year3
Weighted Avg. Rent
Growth4
Straight-line
Basis
Cash Basis
Renewals
2
256,000
3.2
$0.46
41.1%
34.7%
In addition to the above leases signed during the period, INDUS
also executed two first generation leases totaling approximately
102,000 square feet for projects currently in its development
pipeline (see below section on “Development Pipeline”). One such
lease is for the expansion of a seven-year agreement with a leading
global shipping and logistics company for the balance of unleased
space at 110 Tradeport Drive. The tenant had previously signed a
lease for 156,000 square feet and in the 2022 second quarter opted
to lease the remaining 78,000 square feet. The other lease is a
five-year agreement for approximately 24,000 square feet at
Landstar Logistics in Orlando. These leases are expected to
commence in the 2022 third quarter.
As of June 30, 2022, INDUS’ 39 buildings aggregated
approximately 5.7 million square feet. INDUS’ portfolio percentage
leased and percentage leased of stabilized properties were as
follows:
June 30,
2022
Mar. 31,
2022
Dec. 31,
2021
Sept. 30,
2021
Percentage Leased
99.4%
100.0%
98.4%
95.4%
Percentage Leased – Stabilized
Properties
100.0%
100.0%
100.0%
99.4%
As of June 30, 2022, INDUS’ only vacancy reflects approximately
34,000 square feet in the Lehigh Valley, Pennsylvania building that
was developed and placed in service in the 2022 second quarter (see
below section on “Development Pipeline”). Subsequent to quarter
end, a lease was executed for this vacancy and the building is now
fully-leased.
The short-term, full-building lease of approximately 216,000
square feet at 782 Paragon Way in the Charlotte, North Carolina
market expired at the end of July 2022. INDUS is currently
marketing the space for lease and believes current market rents are
significantly above the previous in-place rent.
Acquisition Pipeline
During the 2022 second quarter, INDUS completed the acquisition
of a fully-leased, approximately 205,000 square foot portfolio
located in the Orlando and Palm Beach, Florida markets. The Company
used cash on hand to pay the $31.6 million purchase price, before
transaction costs, which equates to an in-place cash capitalization
rate of approximately 4.6%. The Company believes that the
portfolio’s in-place rental rates are below current market
rates.
The following is a summary of INDUS’ acquisition pipeline as of
June 30, 2022:
Acquisition
Market
Building
Size (SF)
Type
Purchase
Price
(in millions)
Expected
Closing
Acquisitions Under
Contract
Nashville Acquisition (two
buildings)
Nashville, TN
184,000
Forward (42.9% pre-leased)
$31.5
Q4 2022
Charleston Forward Acquisition
(one building)
Charleston, SC
263,000
Forward
$28.0
Q1 2023
Greenville-Spartanburg
Acquisition (one building)
Greenville-Spartanburg, SC
280,000
Forward
$28.5
Q2 2023
Charlotte Forward Acquisition
(one building)
Charlotte, NC
231,000
Forward
$21.2
Q3 2023
Total – Acquisition
Pipeline
958,000
$109.2
The acquisitions in INDUS’ pipeline are each subject to certain
remaining contingencies. There can be no guarantee that these
transactions will be completed under their current terms,
anticipated timelines, or at all.
Development Pipeline
The following is a summary of INDUS’ development pipeline as of
June 30, 2022:
Name
Market
Building
Size (SF)
Type
Expected
Delivery
Owned Land
110 Tradeport Drive (one
building)
Hartford, CT
234,000
100% Pre-leased
Q3 2022
Landstar Logistics (two
buildings)
Orlando, FL
195,000
Speculative/12.3% Pre-leased
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
Q1 2024
Lehigh Valley Land 2 parcel (one
building)
Lehigh Valley, PA
91,000
Speculative
Q1 2024
Total Development
Pipeline
816,000
INDUS expects that the total development and stabilization costs
of developments in its pipeline will total approximately $103.8
million, of which $40.5 million was spent as of June 30, 2022. The
Company estimates that the underwritten weighted average stabilized
Cash NOI yield on its development pipeline is between 6.1% - 6.6%.5
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 from
continuing operations.
Closing on the purchase of the Lehigh Valley Land parcels and
the completion and stabilization of the projects in the development
pipeline are each subject to a number of contingencies. 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.
Liquidity & Capital
Resources
As of June 30, 2022, the Company maintained $266.7 million of
liquidity which reflects $76.7 million of cash and cash equivalents
(including $0.5 million in restricted cash), $90.0 million of
available draws under the DDTL and $100.0 million of borrowing
capacity under the revolving credit facility.
On April 21, 2022, the Company amended its existing credit
agreement (as amended, the “Credit Agreement”) to increase the size
to $250 million with the addition of the new $150 million DDTL. In
addition, INDUS amended the maturity of its existing $100 million
revolving credit facility under the Amended Credit Agreement from
August 2024 to a new expiration date of April 2025 which remains
subject to two, one-year extension options. The Amended Credit
Agreement includes an accordion feature enabling the Company to
increase the total borrowing up to an aggregate of $500 million.
The DDTL bears an interest rate subject to a pricing grid based
upon the Company’s ratio of total indebtedness to total asset
value. Based on the Company’s current indebtedness, the DDTL would
bear an interest rate of SOFR plus a spread of 1.15%. Concurrent
with the closing on the DDTL, the Company entered into an interest
rate swap to fix the interest rate on the DDTL at an effective rate
of 4.15%.
In May, the Company made an initial draw of $60 million from the
DDTL to repay approximately $62 million of existing mortgage debt
(the “Repaid Debt”) which had encumbered ten buildings. Subsequent
to the end of the second quarter, the properties previously secured
by the Repaid Debt were added to the Company’s borrowing capacity
under the Amended Credit Agreement. The Company currently has no
borrowings outstanding under its revolving credit facility and no
fixed rate debt maturities until 2027.
INDUS was added to the MSCI US REIT Index, as part of the MSCI’s
2022 Semi-Annual Index Review for the MSCI Equity Indexes in May.
MSCI is a leading provider of critical decision support tools and
services for the global investment community.
ESG Initiatives
During the 2022 second quarter, the Institute for Market
Transformation (“IMT”) and the U.S. Department of Energy’s (“DOE”)
Better Buildings Alliance announced INDUS as a 2022 Green Lease
Leader. Launched in 2014, Green Lease Leaders sets national
standards for what constitutes a green lease, while recognizing
landlords and tenants who modernize their leases to spur
collaborative action on energy efficiency, cost-savings, air
quality, and sustainability in buildings. INDUS received the Silver
designation in recognition of its innovation in environmental
stewardship, including collaborative tenant sustainability
engagement, energy management practices such as utility data
tracking and sharing, cost recovery for capital improvements,
building resilience and sustainability training.
Common Stock Dividend
During the 2022 second quarter, INDUS’ board of directors
declared a quarterly cash distribution on its common stock of $0.16
per share, or $0.64 per share on an annualized basis. The 2022
second quarter dividend was paid on July 15, 2022 to shareholders
of record on June 30, 2022.
2022 Earning Guidance
INDUS expects the 2022 third quarter NOI from continuing
operations of between $9.1 million to $9.6 million and full year
NOI from continuing operations of between $36.5 million to $38.0
million. The Company’s 2022 guidance reflects expectations that
INDUS will continue to produce rent growth metrics similar to
recent results. INDUS’ guidance also includes the impact of recent
acquisition and development completions, as well as the pipeline of
acquisitions and developments as provided in the corresponding
tables of this press release. Guidance for NOI from continuing
operations for this year has consistently included a known lease
termination payment of approximately $0.4 million. This lease
termination payment is expected in the 2022 third quarter and
reflects the termination of an existing tenant that wished to
vacate its space early after the Company secured a replacement
tenant.
A full reconciliation of the forecasted NOI from continuing
operations to net income, the most-directly comparable GAAP metric,
cannot be provided without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
certain non-cash, nonrecurring or other items that are included in
net income and required for the reconciliations.
2022 Second Quarter Earnings Conference
Call, Earnings Supplement and Investor Presentation
INDUS is hosting a live earnings conference call on Tuesday,
August 9, 2022, at 11:00 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 in advance 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): 1-833-630-0580 PARTICIPANT
INTERNATIONAL DIAL IN: 1-412-317-1813
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 39 industrial/logistics buildings totaling
approximately 5.7 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, statements regarding the completion of
acquisitions under agreements, pre-leasing agreements, construction
and development plans and timelines, expected total development and
stabilization costs of developments in INDUS’ pipeline, and the
estimated underwritten stabilized Cash NOI yield of the Company’s
development pipeline. 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 year ended December 31, 2021, filed
with the SEC on March 11, 2022, as updated by other filings with
the SEC. 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 from continuing operations, Core
FFO from continuing operations per share, Adjusted FFO from
continuing operations, NOI from continuing operations, and Cash NOI
from continuing operations, 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 Core FFO from continuing operations and Core
FFO per share from continuing operations 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; (e) discontinued
operations and (f) non-recurring items. Per share metrics are
calculated as Core FFO from continuing operations for the period
divided by the weighted average diluted share count for the
period.
The Company defines Adjusted FFO from continuing operations as
Core FFO from continuing operations less (a) noncash rental revenue
including straight-line rents, (b) amortization of debt issuance
costs, (c) noncash compensation expenses, (d) non-real estate
depreciation and amortization expense, (e) tenant improvements and
leasing commissions of second generation space and (f) maintenance
capital expenditures needed to maintain the Company’s existing
buildings.
NOI from continuing operations 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. The Company uses NOI from continuing operations as a
supplemental performance measure 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, gains (or losses) on debt extinguishment, investment
income and other non-operating items, it provides 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 from continuing operations will be useful to
investors as a basis to compare its operating performance with that
of other REITs. However, because NOI from continuing operations
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 from continuing operations as
a measure of the Company’s performance is limited. Other equity
REITs may not calculate NOI from continuing operations in a similar
manner and, accordingly, the Company’s NOI from continuing
operations may not be comparable to such other REITs’ NOI from
continuing operations. Accordingly, NOI from continuing operations
should be considered only as a supplement to net income (loss) as a
measure of the Company’s performance. NOI from continuing
operations should not be used as a measure of the Company’s
liquidity, nor is it indicative of funds available to fund the
Company’s cash needs. NOI from continuing operations should not be
used as a substitute for cash flow from operating activities in
accordance with U.S. GAAP.
Cash NOI from continuing operations is a non-GAAP measure that
the Company calculates by adding or subtracting non-cash rental
revenue, including straight-line rental revenue, from NOI from
continuing operations. The Company uses Cash NOI from continuing
operations together with NOI from continuing operations, as
supplemental performance measures. Cash NOI from continuing
operations should not be used as a measure of the Company’s
liquidity, nor is it indicative of funds available to fund the
Company’s cash needs. Cash NOI from continuing operations 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)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Rental revenue
$
11,728
$
9,303
$
23,247
$
18,833
Expenses:
Operating expenses of rental
properties
1,040
959
2,339
2,369
Real estate taxes
1,507
1,373
2,984
2,740
Depreciation and amortization expense
4,322
3,203
8,478
6,309
General and administrative expenses
2,398
2,724
5,332
5,694
Total expenses
9,267
8,259
19,133
17,112
Other income (expense):
Interest expense
(152
)
(1,711
)
(1,671
)
(3,460
)
Change in fair value of financial
instruments
—
(979
)
—
(719
)
Losses on early extinguishment of debt
(464
)
—
(464
)
—
Gain on sales of real estate assets
—
322
—
342
Investment and other income
84
115
105
122
Other expense
(3
)
—
(6
)
—
(535
)
(2,253
)
(2,036
)
(3,715
)
Income (loss) from continuing operations
before income taxes
1,926
(1,209
)
2,078
(1,994
)
Income tax benefit
585
—
585
—
Income (loss) from continuing
operations
2,511
(1,209
)
2,663
(1,994
)
Discontinued operations:
Income from discontinued operations
311
58
225
75
Gain on sale of equipment
—
—
203
—
311
58
428
75
Net income (loss)
$
2,822
$
(1,151
)
$
3,091
$
(1,919
)
Income (loss) per Common
Share-Basic:
Income (loss) from continuing
operations
$
0.25
$
(0.16
)
$
0.26
$
(0.28
)
Income from discontinued operations
0.03
0.01
0.04
0.01
Net income (loss) per common
share
$
0.28
$
(0.15
)
$
0.30
$
(0.27
)
Income (loss) per Common
Share-Diluted:
Income (loss) from continuing
operations
$
0.24
$
(0.16
)
$
0.26
$
(0.28
)
Income from discontinued operations
0.03
0.01
0.04
0.01
Net income (loss) per common
share
$
0.27
$
(0.15
)
$
0.30
$
(0.27
)
Weighted average shares outstanding -
basic
10,186
7,718
10,184
6,981
Weighted average shares outstanding -
diluted
10,342
7,718
10,384
6,981
INDUS REALTY TRUST, INC.
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)
June 30,
2022
December 31,
2021
ASSETS
Real estate assets at cost, net
$
463,525
$
387,647
Cash and cash equivalents
76,172
150,263
Restricted cash
541
10,644
Assets of discontinued operations
8,880
7,990
Other assets
37,704
34,102
Total assets
$
586,822
$
590,646
LIABILITIES AND STOCKHOLDERS'
EQUITY
Mortgage loans and construction loan, net
of debt issuance costs
$
106,790
$
169,818
Delayed draw term loan, net of debt
issuance costs
58,564
—
Deferred revenue
5,305
7,365
Accounts payable and accrued
liabilities
11,289
9,671
Dividends payable
1,631
1,629
Liabilities of discontinued operations
786
832
Other liabilities
12,386
15,254
Total liabilities
$
196,751
$
204,569
Stockholders' Equity
Common stock
102
102
Additional paid-in capital
400,556
399,754
Accumulated deficit
(11,039
)
(10,869
)
Accumulated other comprehensive income
(loss)
452
(2,910
)
Total stockholders' equity
390,071
386,077
Total liabilities and stockholders'
equity
$
586,822
$
590,646
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)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Net income (loss):
$
2,822
$
(1,151
)
$
3,091
$
(1,919
)
Exclude:
Depreciation and amortization expense
4,322
3,203
8,478
6,309
FFO adjustments related to discontinued
operations
(4
)
221
236
458
Non-real estate depreciation &
amortization expense
(20
)
(22
)
(46
)
(38
)
Gain on sales of real estate assets
—
(322
)
—
(342
)
FFO
7,120
1,929
$
11,759
4,468
Exclude:
CORE FFO adjustments related to
discontinued operations
(307
)
(279
)
(664
)
(533
)
General and administrative expenses
related to non-qualified deferred compensation plan performance
(487
)
244
(775
)
420
Change in fair value of financial
instruments
979
719
Gain on termination of interest rate
hedges
(1,812
)
—
(1,812
)
—
Loss on debt extinguishment
464
—
464
—
General and administrative expenses
related to REIT conversion
—
56
—
263
Core FFO from continuing
operations
4,978
2,929
8,972
5,337
Exclude:
Noncash rental revenue including
straight-line rents
(954
)
(379
)
(1,797
)
(755
)
Amortization of debt issuance costs
264
241
492
407
Noncash compensation expenses
408
291
681
505
Non-real estate depreciation and
amortization expense
20
22
46
38
Tenant improvements and leasing
commissions (2nd generation space)
(177
)
(156
)
(402
)
(702
)
Maintenance capital expenditures
(472
)
(294
)
(495
)
(296
)
Adjusted FFO from continuing
operations
$
4,067
$
2,654
$
7,497
$
4,534
Weighted average number of shares
outstanding - Basic
10,186
7,718
10,184
6,981
Dilutive securities
156
137
200
136
Weighted average number of shares
outstanding – Diluted
10,342
7,855
10,384
7,117
Core FFO from continuing
operations/Share – Diluted
$
0.48
$
0.37
$
0.86
$
0.75
INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – NOI
and Cash NOI
(dollars in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Income (loss) from continuing
operations
$
2,511
$
(1,209
)
$
2,663
$
(1,994
)
Income tax benefit
(585
)
—
(585
)
—
Pretax income (loss) from continuing
operations
1,926
(1,209
)
2,078
(1,994
)
Exclude:
Depreciation and amortization expense
4,322
3,203
8,478
6,309
General and administrative expenses
2,398
2,724
5,332
5,694
Interest expense
152
1,711
1,671
3,460
Change in fair value of financial
instruments
—
979
—
719
Gain on sales of real estate assets
—
(322
)
—
(342
)
Loss on debt extinguishment
464
—
464
—
Investment and other income
(81
)
(115
)
(99
)
(122
)
NOI from continuing operations
9,181
6,971
17,924
13,724
Noncash rental revenue including
straight-line rents
(954
)
(379
)
(1,797
)
(755
)
Cash NOI from continuing
operations
$
8,227
$
6,592
$
16,127
$
12,969
INDUS REALTY TRUST, INC.
Reconciliation of Company
Guidance to NOI from continuing operations
(dollars in millions)
(unaudited)
Third Quarter 2022
Full Year
Lower End of
Guidance
Higher End of
Guidance
Lower End of
Guidance
Higher End of
Guidance
Net income from continuing
operations
($0.5)
($1.0)
$0.8
$0.9
Exclude:
Depreciation and amortization expense
5.0
5.4
19.0
19.4
General and administrative expenses
3.0
3.4
11.4
12.2
Interest expense
1.6
1.8
5.5
5.7
Other6
—
—
(0.2)
(0.2)
NOI from continuing operations
$9.1
$9.6
$36.5
$38.0
1 Core FFO, Core FFO from continuing operations per share, NOI
from continuing operations and Cash NOI from continuing operations
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. 3 Lease cost per square foot per year reflects total lease
costs (tenants improvements, leasing commissions and legal costs)
per square foot per year of the lease term. 4 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. 5 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 from continuing operations 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 developments or projects that are 100% pre-leased).
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. 6
Other includes income taxes, gains or losses on debt
extinguishment, as well as investment and other income or
expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220808005764/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
INDUS Realty (NASDAQ:INDT)
Historical Stock Chart
From May 2024 to Jun 2024
INDUS Realty (NASDAQ:INDT)
Historical Stock Chart
From Jun 2023 to Jun 2024