INDUS Announces Fiscal 2020 Fourth Quarter and Fiscal 2020 Results Nasdaq:INDT

NEW YORK, Feb. 18, 2021 (GLOBE NEWSWIRE) — INDUS Realty Belief, Inc. (Nasdaq: INDT) (“INDUS” or the “Firm”) at the moment reported monetary outcomes for the three months ended November 30, 2020 (the “2020 fourth quarter”) and the twelve months ended November 30, 2020 (“fiscal 2020”).

2020 Fourth Quarter & Latest Highlights

  • Web Lack of ($11.1) million and ($12.7) million for the 2020 fourth quarter and financial 2020, respectively, a rise of 328% in internet loss in comparison with the three months ended November 30, 2019 (the “2019 fourth quarter”) and a lower of 447% from internet earnings through the twelve months ended November 30, 2019 (“fiscal 2019”)
  • Web Working Earnings (“NOI”)* of $7.1 million and $26.9 million for the 2020 fourth quarter and financial 2020, respectively (respective will increase of 12.6% and 11.1% over the 2019 fourth quarter and financial 2019)
  • Money NOI of Industrial/Logistics Properties* of $5.5 million and $21.6 million for the 2020 fourth quarter and financial 2020, respectively (respective will increase of 5.1% and 9.3% over the 2019 fourth quarter and financial 2019)
  • Core FFO* of $2.7 million and $11.0 million for the 2020 fourth quarter and financial 2020, respectively (respective will increase of 6.0% and 6.3% over the 2019 fourth quarter and financial 2019)
  • Adjusted EBITDAre* of $5.0 million and $19.3 million for the 2020 fourth quarter and financial 2020, respectively (respective will increase of 10.4% and 10.1% over the 2019 fourth quarter and financial 2019)
  • Stabilized in-service industrial portfolio1 was 95.4% leased; whole industrial portfolio was 94.3% leased as of November 30, 2020
  • Accomplished 5 lease renewals and one new lease of commercial/logistics properties2 through the 2020 fourth quarter with weighted common hire development on a straight-line foundation of 13.3% and weighted common money hire development of 0.5%3
  • Continued development on an roughly 103,000 SF industrial/logistics constructing within the Lehigh Valley
  • Subsequent to fiscal 2020 yr finish, underneath a preliminary settlement, commenced the re-design of the Charlotte Land (as outlined under) to accommodate the build-to-suit of a last-mile industrial/logistics facility for a number one e-commerce firm
  • Accomplished the disposition of an roughly 40,000 sq. foot vacant workplace/flex constructing at 55 Griffin Highway South for $1.4 million in gross proceeds
  • Subsequent to the top of the 2020 fourth quarter, entered into an settlement to promote roughly 91 acres of undeveloped land in Southwick, MA for whole proceeds of $5.25 million
  • Accomplished a company re-branding, reincorporated from Delaware to Maryland, adopted a calendar fiscal yr finish starting January 1, 2021 and intend to elect to be taxed as an actual property funding belief (“REIT”) for the fiscal yr ending December 31, 2021

*See Be aware Concerning Non-GAAP Measures under.

Outcomes of Operations
INDUS reported whole rental income of $9.7 million and $37.4 million for the 2020 fourth quarter and financial 2020, respectively, as in comparison with $8.8 million and $34.2 million for the 2019 fourth quarter and financial 2019, respectively. The roughly $3.2 million enhance in rental income in fiscal 2020, as in comparison with fiscal 2019, was principally because of the acquisition of three industrial/logistics properties in Orlando, FL between October 2019 and March 2020 (the “Orlando Properties”), the graduation of leases of first era area that began in fiscal 2020 and, to a lesser extent, leases of second era beforehand vacant area, a rise in expense reimbursements, early lease termination charges and different lease associated income.

NOI elevated to $7.1 million and $26.9 million within the 2020 fourth quarter and financial 2020, respectively, from $6.3 million and $24.2 million within the 2019 fourth quarter and financial 2019, respectively. The rise in NOI in fiscal 2020, as in comparison with fiscal 2019, primarily mirrored extra space underneath lease in fiscal 2020, due largely to the commercial/logistics buildings added to the corporate’s portfolio in fiscal 2020 and financial 2019, as famous above.

Money NOI* for the 2020 fourth quarter and financial 2020 had been $6.3 million and $24.3 million, respectively, as in comparison with $6.1 million and $22.7 million for the comparable prior yr durations. The will increase in Money NOI through the 2020 fourth quarter and financial 2020 durations over the respective 2019 durations, principally mirrored will increase in rental income because of extra space underneath lease as famous above and, to a lesser extent, will increase in rental charges partially offset by a larger quantity of free hire concessions associated to lease renewals within the Firm’s industrial/logistics properties.

Common and administrative bills elevated to roughly $10.0 million in fiscal 2020 from roughly $7.7 million in fiscal 2019 principally reflecting roughly $1.4 million in bills, primarily authorized charges associated to the Firm’s resolution to function as a REIT efficient on January 1, 2021 and different strategic development initiatives in fiscal 2020. Different contributors to the rise in fiscal 2020 over fiscal 2019 had been will increase in incentive compensation and inventory possibility bills, and authorized charges associated to new leases that had been expensed in fiscal 2020 (as an alternative of capitalizing these prices and amortizing over the lease time period, as had been accomplished beforehand), as required underneath the brand new lease accounting normal adopted in fiscal 2020.

Depreciation and amortization expense elevated to roughly $13.6 million in fiscal 2020 from roughly $11.8 million in fiscal 2019, principally associated to the Orlando Properties and 160 Worldwide Drive and 180 Worldwide Drive in Charlotte, NC, each of which had been speculative developments delivered within the 2019 fourth quarter. Curiosity expense elevated to roughly $7.3 million in fiscal 2020 from roughly $6.4 million in fiscal 2019, principally associated to borrowings to finance a portion of the prices to buy two of the Orlando Properties.

INDUS additionally reported adjustments in different earnings and bills throughout fiscal 2020 together with an impairment loss, change in truthful worth of economic devices, and features on gross sales of actual property property. INDUS reported an impairment lack of roughly $2.1 million in fiscal 2020 on its two multi-story workplace buildings aggregating 161,000 sq. ft in Windsor, CT (“5 and seven Waterside Crossing”). In fiscal 2020, the INDUS had an roughly $2.3 million acquire on gross sales of actual property property. Lastly, the change in truthful worth of economic devices of $6.0 million in fiscal 2020 displays adjustments within the worth of the warrant and contingent worth rights that had been issued as a part of the personal placement that was accomplished on August 24, 2020.

In fiscal 2020, the Firm incurred a internet lack of roughly $12.7 million as in comparison with internet earnings of roughly $3.7 million in fiscal 2019. Within the 2020 fourth quarter, the Firm incurred a internet lack of roughly $11.1 million as in comparison with a internet lack of roughly $2.6 million within the 2019 fourth quarter. Along with the gadgets described above, contributing to the web loss in fiscal 2020 and the 2020 fourth quarter, as in comparison with the web earnings in fiscal 2019 and the web loss within the 2019 fourth quarter, was a tax provision in fiscal 2020 arising from the de-recognition of the Firm’s deferred tax property and liabilities associated to the Firm’s anticipated election to be taxed as a REIT efficient in fiscal 2021 (as outlined under), as in comparison with an earnings tax profit in fiscal 2019 and the 2019 fourth quarter.

Supplemental Monetary Measures
For the 2020 fourth quarter and financial 2020, Adjusted EBITDAre* was $5.0 million and $19.3 million, as in comparison with $4.5 million and $17.6 million within the 2019 fourth quarter and financial 2019, respectively. The rise in Adjusted EBITDAre was primarily impacted by increased rental revenues partially offset by increased basic and administrative prices in fiscal 2020.

For the 2020 fourth quarter and financial 2020, Core FFO* was $2.7 million and $11.0 million, respectively, as in comparison with $2.6 million and $10.4 million within the 2019 fourth quarter and financial 2019, respectively. The rise in Core FFO was primarily impacted by the identical adjustments in rental income and basic and administrative prices famous above for Adjusted EBITDAre, along with increased curiosity expense through the 2020 durations.

Industrial/Logistics Leasing Exercise2
In the course of the 2020 fourth quarter, the Firm executed 5 renewal leases and one new lease in its industrial/logistics portfolio aggregating roughly 498,000 sq. ft with a weighted common lease time period of 5.0 years and weighted common tenant enchancment and leasing fee prices per sq. foot per yr of $0.52. The weighted common hire development on a straight-line foundation was 13.3%, and the weighted common hire development on a money foundation was 0.5%.3

Throughout fiscal 2020, the Firm executed 5 new leases and eleven renewal leases in its industrial/logistics portfolio aggregating over 1,053,000 sq. ft with a mean lease time period of 5.5 years and weighted common hire development on a straight-line foundation and money foundation of 15.0% and a pair of.6%, respectively. INDUS’s industrial/logistics portfolio tenant retention fee4 throughout fiscal 2020 was 79%, as measured by the variety of tenants who renewed through the yr.

Tendencies
In fiscal 2020, INDUS accomplished a number of gross sales aggregating roughly 46 acres of undeveloped land, along with one vacant roughly 40,000 sq. foot workplace/flex constructing positioned at 55 Griffin Highway South in Bloomfield, CT (“55 Griffin Highway South”). 55 Griffin Highway South was bought in November 2020 for gross proceeds of $1.4 million. As well as, the 46 acres of undeveloped land (which was zoned for a mixture of residential, business and different makes use of) and a small easement bought for a mixed whole of $1.9 million in gross proceeds.

As of the top of fiscal 2020, INDUS was underneath three separate agreements to promote a complete of roughly 571 acres of undeveloped land in Connecticut within the cities of East Granby and Windsor, Simsbury and Suffield. Beneath an possibility buy settlement, INDUS granted the client an choice to buy roughly 280 acres of undeveloped land for a minimal buy worth of $6.0 million. Beneath a separate possibility settlement, INDUS granted one other purchaser an choice to buy roughly 277 acres of an unbuilt residential growth known as Meadowood for internet proceeds of roughly $5.4 million. Beneath one other sale settlement, INDUS agreed to promote the 16 residential heaps remaining in a residential subdivision known as Stratton Farms to a purchaser for gross proceeds of $0.9 million.

Subsequent to the top of fiscal 2020, INDUS entered into a purchase order and sale settlement to promote roughly 91 acres of undeveloped land in Southwick, MA to a purchaser for a purchase order worth of $5.25 million.

Additionally subsequent to the top of the 2020 fourth quarter, the Firm started advertising 5 and seven Waterside Crossing, which had been beforehand underneath an settlement on the market throughout fiscal 2020 however the purchaser didn’t shut on the transaction.

Every of the Firm’s present sale or possibility buy agreements are topic to vital contingencies and it’s attainable that the gross sales or purchases contemplated thereunder is not going to be accomplished underneath their respective phrases, or in any respect.

Land & Constructing Acquisitions
Throughout fiscal 2020, the Firm acquired 3320 Maggie Boulevard, a fully-leased roughly 108,000 sq. foot constructing in Orlando, and 170 Sunport Lane, a mostly-vacant roughly 68,000 sq. foot constructing in Orlando.

Additionally throughout fiscal 2020, the Firm entered into separate agreements to buy roughly 23 acres of land within the Lehigh Valley (“First & Second Allentown Buy Agreements”) and roughly 14 acres of land in Orlando (“Orlando Buy Settlement”) for a mixed whole buy worth of $9.45 million (see “Growth Exercise”). These agreements are topic to vital contingencies and it’s attainable that the acquisitions contemplated thereunder is not going to be accomplished underneath their respective phrases, or in any respect.

Growth Exercise
As of November 30, 2020, INDUS owned 14 acres of land for growth within the Lehigh Valley (the “Lehigh Valley Land”) and 44 acres of land in Charlotte (the “Charlotte Land”), each of which INDUS acquired in fiscal 2019. In fiscal 2020, the Firm started development of an roughly 103,000 sq. foot industrial/logistics constructing on the Lehigh Valley Land which it expects to ship within the second half of 2021. In fiscal 2020 the Firm accomplished the entitlements to assemble three industrial/logistics buildings aggregating roughly 520,000 sq. ft on the Charlotte Land.

Subsequent to yr finish, underneath a preliminary settlement, INDUS commenced the re-design of the Charlotte Land to accommodate the build-to-suit of a last-mile industrial/logistics facility for a number one e-commerce firm. The proposed build-to-suit would make the most of all the growth potential of the Charlotte Land and contains an roughly 142,000 sq. foot constructing with surplus parking. The Firm estimates that the overall growth price for the challenge shall be between $35-$45 million (together with the land price) and that the tenant would enter right into a fifteen-year lease for the property at a rental fee calculated as a proportion of the overall challenge price.

The next desk summarizes INDUS’s present and deliberate growth and acquisition actions as described above:

           
Undertaking Market Kind Estimated
Completion
Deliberate
Sq.
Footage

Lehigh Valley Land Lehigh Valley, PA Speculative Growth This fall 2021 103,000  
Charlotte Land Charlotte, NC Construct-to-Swimsuit Growth This fall 2021 142,000  
First & Second Allentown Buy Agreements Lehigh Valley, PA Speculative Growth Q2 2022 206,000  
Orlando Buy Settlement Orlando, FL Speculative Growth Q1 2022 195,000  
Whole       646,000  

The entire estimated funding in INDUS’s present and deliberate growth and acquisition actions (as described above) is roughly $93.7 million (inclusive of leasing prices), with roughly $11.4 million spent as of November 30, 2020. As part of INDUS’s normal growth and acquisition underwriting course of, INDUS analyzes the focused preliminary full yr stabilized Money NOI yield for every growth challenge and acquisition goal and establishes a spread of preliminary full yr stabilized Money NOI yields, which it refers to as “underwritten stabilized Money NOI yields.” INDUS’s weighted common underwritten stabilized Money NOI yield from the present and deliberate growth and acquisition actions proven above is predicted to vary between 6.0% and 6.5%. Underwritten stabilized Money NOI yields are calculated as a growth challenge’s or acquisition’s preliminary full yr stabilized Money NOI as a proportion of its estimated whole funding, together with prices to stabilize the buildings to 95% occupancy (aside from in reference to build-to-suit growth tasks and single tenant properties). INDUS calculates preliminary full yr stabilized Money NOI for a growth challenge or acquisition by subtracting its estimate of the event challenge’s or acquisition’s preliminary full yr stabilized working bills, actual property taxes and non-cash rental income, together with straight-line rents (earlier than curiosity, earnings taxes, if any, and depreciation and amortization), from its estimate of its preliminary full yr stabilized rental income. Precise preliminary full yr stabilized Money NOI yields might fluctuate from INDUS’s underwritten stabilized Money NOI yield ranges based mostly on the precise whole price to finish a challenge or purchase a property and its precise preliminary full yr stabilized Money NOI.

Liquidity & Capital Assets
As of November 30, 2020, the Firm had money and money equivalents of $28.5 million, in addition to $34.5 million in borrowing capability underneath its revolving credit score services. As of November 30, 2020, there have been no borrowings excellent underneath the credit score services.

Subsequent to November 30, 2020, the Firm and Webster Financial institution N.A. (“Webster Financial institution”), the lender underneath its credit score services, agreed to phrases whereby 160 Worldwide Drive and 180 Worldwide Drive in Charlotte can be added to the collateral of the Amended Webster Credit score Line and the borrowing capability underneath the Amended Webster Credit score Line can be elevated to a most of $35.0 million, up from $19.5 million as of November 30, 2020. The rise within the quantity out there underneath the Amended Webster Credit score Line is topic to completion of a definitive mortgage modification to the Amended Webster Credit score Line, which will not be finalized underneath present phrases, or in any respect. INDUS’s credit score services with Webster Financial institution mature on September 1, 2021 and comprise one possibility to increase for a further 12 months, topic to sure situations.

Additionally subsequent to fiscal 2020, on February 2, 2021, INDUS filed a brand new common shelf registration assertion on Kind S-3 (the “Common Shelf”) with the U.S. Securities and Change Fee (“SEC”), which, as soon as declared efficient, will exchange the common shelf registration assertion on Kind S-3 that was filed with the SEC on April 11, 2018 and amended by its post-effective modification on Kind S-3 that was filed with the SEC on January 4, 2021. As soon as efficient, underneath the Common Shelf, the Firm might provide and promote as much as $500 million of quite a lot of securities together with frequent inventory, most well-liked inventory, warrants, depositary shares, items or any mixture of such securities through the three yr interval that commences upon the efficient date of the Common Shelf. Equally, underneath the Common Shelf, the Firm might periodically provide a number of forms of securities in quantities, at costs and on phrases introduced, if and when the securities are ever provided. If INDUS obtains extra capital by issuing fairness, the pursuits of its present stockholders shall be diluted. If the Firm incurs extra indebtedness, that indebtedness might impose monetary and different covenants that will considerably prohibit INDUS’s operations.

Company Updates
On December 30, 2020, the Firm accomplished an inner merger (the “Merger”) to reincorporate from a Delaware company to a Maryland company. Following the Merger, on December 31, 2020, the Firm modified its identify from Griffin Industrial Realty, Inc. (“Griffin”) to INDUS Realty Belief, Inc.

As beforehand introduced, INDUS intends to elect to be taxed as a REIT underneath Sections 856 by way of 860 of the Inner Income Code of 1986, as amended for the taxable yr ending December 31, 2021. In reference to this election to be taxed as a REIT, INDUS additionally modified its fiscal yr finish from November 30 to December 31, efficient starting with the subsequent fiscal yr, which started on January 1, 2021 and can finish on December 31, 2021 (“fiscal 2021”). Because of the change in fiscal yr, there shall be a one-month transition interval from December 1, 2020 to December 31, 2020, the outcomes of that are anticipated to be reported within the Firm’s Quarterly Report on Kind 10-Q to be filed for the primary quarter of fiscal 2021.

Portfolio
As of November 30, 2020, INDUS owned 30 industrial/logistics properties containing an combination of roughly 4,206,000 rentable sq. ft that was 94.3% leased (95.4% leased for stabilized properties) with a weighted common remaining lease time period of 4.9 years. The 2020 fourth quarter was the primary interval during which INDUS’s speculative developments at 160 Worldwide Drive and 180 Worldwide Drive in Charlotte, NC had been included within the stabilized pool, because the developments have been accomplished for over one yr. These two properties had been 37.1% leased as of November 30, 2020. The unstabilized pool as of the fiscal 2020 yr finish was restricted to solely 170 Sunport Lane in Orlando, FL, which was acquired in March 2020 as a value-add acquisition and not too long ago underwent a renovation to raised place the property for lease-up.

INDUS additionally owns 11 workplace/flex properties containing an combination of 392,000 sq. ft that was 71.3% leased as of November 30, 2020, along with over 3,400 acres of undeveloped land.

Lease Assortment / COVID-19 Influence
COVID-19 didn’t have a fabric influence on the Firm’s hire collections in fiscal 2020, as 99% of all money hire due in every month of fiscal 2020, inclusive of hire reduction, was collected. In fiscal 2020, the Firm entered into agreements with two tenants that granted hire reduction aggregating roughly 0.4% of the Firm’s whole rental income for fiscal 2020. The a lot bigger of those two tenants is a subsidiary of a Fortune 500 firm and the hire reduction was granted as a part of an early 5-year renewal of that tenant’s lease. Subsequent to November 30, 2020, a tenant that leases an roughly 7,000 sq. foot restaurant constructing in Connecticut requested hire reduction. The tenant’s annual base hire represents 0.2% of INDUS’s fiscal 2020 rental income, and the tenant has paid all hire by way of October 31, 2020. As of the date of this press launch, the Firm has not but decided if it’s going to grant hire reduction in reference to this request.

Fourth Quarter Webcast, Earnings Complement and Investor Presentation
INDUS is internet hosting a pre-recorded webcast that shall be out there beginning tomorrow, February 19, 2021 at 8:00 A.M. Japanese Time, to debate its 2020 fourth quarter and financial 2020 monetary outcomes. Supplemental supplies containing extra monetary and working data shall be out there on INDUS’s web site at the beginning of the webcast. All buyers and different events are invited to dial in to the listen-only webcast which, along with the supplemental data, may be accessed by way of the Traders part of INDUS’s web site at www.indusrt.com/buyers or the webcast may be accessed immediately by logging on at https://companies.choruscall.com/hyperlinks/indt210216.html. An archived recording of the webcast shall be out there by way of Could 18, 2021.

About INDUS
INDUS (previously often known as Griffin Industrial Realty, Inc.) is an actual property enterprise principally engaged in creating, buying, managing and leasing industrial/logistics properties. INDUS owns 41 buildings totaling roughly 4.6 million sq. ft (together with 30 industrial/logistics buildings aggregating roughly 4.2 million sq. ft) in Connecticut, Pennsylvania, North Carolina and Florida along with over 3,400 acres of undeveloped land.

*See Be aware Concerning Non-GAAP Measures under.

Ahead-Trying Statements:
This Press Launch contains “forward-looking statements” inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended. These forward-looking statements embrace INDUS’s beliefs and expectations concerning future occasions or situations together with, with out limitation, statements concerning INDUS’s intention to elect to be taxed as a REIT, completion of contemplated acquisition and disposition agreements, development and growth plans and timelines, together with, with out limitation, that our underwritten capitalization charges for growth tasks will not be achieved, the re-design of the Charlotte Land, together with associated estimated prices and leasing exercise, INDUS’s underwritten stabilized capitalization charges for growth tasks, anticipated capital availability and liquidity, the entry into of a definitive mortgage modification to the Amended Webster Credit score Line, in addition to anticipated leasing exercise within the portfolio. Though INDUS believes that its plans, intentions and expectations mirrored in such forward-looking statements are cheap, it can provide no assurance that such plans, intentions or expectations shall be achieved. The projected data disclosed herein is predicated on assumptions and estimates that, whereas thought of cheap by INDUS as of the date hereof, are inherently topic to vital enterprise, financial, aggressive and regulatory uncertainties and contingencies, lots of that are past the management of INDUS and which might trigger precise outcomes and occasions to vary materially from these expressed or implied within the forward-looking statements. Different vital elements that would have an effect on the result of the occasions set forth in these statements are described in INDUS’s Securities and Change Fee filings, together with the “Enterprise,” “Danger Components” and “Ahead-Trying Statements” sections in INDUS’s Annual Report on Kind 10-Ok for the fiscal yr ended November 30, 2020 filed with the SEC on February 18, 2021 and the “Danger Components” part in INDUS’s Registration Assertion on Kind S-3, filed with the SEC on February 2, 2021. INDUS disclaims any obligation to replace any forward-looking statements because of developments occurring after the date of this press launch besides as required by regulation.

__________________________
1 “Stabilized” properties displays in-service properties / buildings which have both (a) reached 90.0% leased or (b) exceeded 12 months since their growth completion or acquisition date, whichever is earlier. Stabilized properties exclude 170 Sunport Lane, which was acquired within the 2020 second quarter and was 25.9% leased as of November 30, 2020.

2 Leasing exercise is proven for industrial/logistics portfolio solely. Excludes new and renewal leases which have an preliminary time period of twelve months or much less, in addition to leases for first era area on properties acquired or developed by INDUS.

3 Weighted common hire development displays the proportion change of annualized rental charges between the earlier leases and the present leases. The rental fee change on a straight-line foundation represents common annual base rental funds on a straight-line foundation for the time period of every lease together with free hire durations. Money foundation hire development represents the change in beginning rental charges per the lease settlement on new and renewed leases signed through the interval, as in comparison with the earlier ending rental charges for that very same area. The money hire development calculation excludes free hire durations.

4 Retention is calculated as (whole industrial leases renewed or prolonged) ÷ (whole industrial leases renewed or prolonged + whole industrial leases that expired and weren’t renewed) through the interval.

INDUS REALTY TRUST, INC.
Consolidated Statements of Operations
({dollars} in 1000’s, besides per share information)
(unaudited)

    For the Three Months Ended   For the Fiscal 12 months Ended
       Nov. 30, 2020      Nov. 30, 2019      Nov. 30, 2020      Nov. 30, 2019
Rental income   $ 9,685     $ 8,759     $ 37,388     $ 34,217  
                         
Bills:                        
Working bills of rental properties     1,053       1,118       4,864       4,987  
Actual property taxes     1,502       1,310       5,612       5,008  
Depreciation and amortization expense     3,435       2,995       13,623       11,801  
Common and administrative bills     3,175       2,110       9,960       7,677  
Whole working bills     9,165       7,533       34,059       29,473  
                         
Different earnings (expense):                        
Curiosity expense     (1,814 )     (1,632 )     (7,281 )     (6,408 )
Change in truthful worth of economic devices     (5,560 )           (5,974 )      
Achieve on sale of actual property property     1,504             2,329       7,829  
Impairment loss     (2,085 )     (3,100 )     (2,085 )     (3,100 )
Funding earnings     10       22       41       264  
Achieve on insurance coverage restoration                       126  
      (7,945 )     (4,710 )     (12,970 )     (1,289 )
                         
(Loss) earnings earlier than earnings tax profit (provision)     (7,425 )     (3,484 )     (9,641 )     3,455  
Earnings tax (provision) profit     (3,638 )     902       (3,076 )     213  
Web (loss) earnings   $ (11,063 )   $ (2,582 )   $ (12,717 )   $ 3,668  
                         
Primary internet (loss) earnings per frequent share   $ (1.96 )   $ (0.51 )   $ (2.42 )   $ 0.72  
                         
Diluted internet (loss) earnings per frequent share   $ (1.96 )   $ (0.51 )   $ (2.42 )   $ 0.72  
                         
Weighted common frequent shares excellent for computation of primary per share outcomes     5,658       5,073       5,259       5,070  
                         
Weighted common frequent shares excellent for computation of diluted per share outcomes     5,658       5,073       5,259       5,106  

Be aware Concerning Non-GAAP Monetary Measures

The Firm makes use of NOI, Money NOI, NOI of Industrial/Logistics Properties, Money NOI of Industrial/Logistics Properties, Funds from Operations (“FFO”), Core Funds from Operations (“Core FFO”), Earnings earlier than Curiosity, Taxes, Depreciation and Amortization for Actual Property (“EBITDAre”) and Adjusted EBITDAre as supplemental non-GAAP efficiency measures. Administration believes that using these measures mixed with internet (loss) earnings (which stays the Firm’s main measure of efficiency), improves the understanding of the Firm’s working outcomes among the many investing public and makes comparisons of working outcomes to different REITs extra significant. Probably the most comparable U.S. GAAP measure to FFO, Core FFO, EBITDAre and Adjusted EBITDAre is internet earnings (loss).

These measures exclude bills that materially influence the Firm’s total outcomes of operations and, due to this fact, shouldn’t be thought of as an alternative measures derived in accordance with U.S. GAAP. Moreover, these metrics will not be akin to different equally titled measures of different corporations.

Sure of those measures could also be calculated based mostly on or considerably in accordance with definitions set forth by The Nationwide Affiliation of Actual Property Funding Trusts (“Nareit”). Nareit is well known as a consultant group for REITs and actual property corporations with an curiosity in U.S. actual property. Nareit’s members are REITs and different actual property corporations all through the world that personal, function, and finance income-producing actual property, in addition to these corporations and people who advise, examine, and repair these companies. For durations previous to the Firm’s conversion to a REIT, the Firm additional adjusts Nareit definitions to take away the influence of earnings tax advantages or provisions with the intention to improve the comparability of the Firm’s efficiency previous to its conversion to a REIT with its efficiency following its conversion to a REIT. The Firm doesn’t intend to incorporate this tax adjustment for durations starting on or after January 1, 2021.

NOI, Money NOI, NOI of Industrial/Logistics Properties and Money NOI of Industrial/Logistics Properties

NOI is a non-GAAP measure that features the rental income and working expense immediately attributable to the Firm’s actual property properties. The Firm makes use of NOI as a supplemental efficiency measure as a result of, in excluding actual property depreciation and amortization expense, basic and administrative bills, curiosity expense, features (or losses) on the sale of actual property and different non-operating gadgets, it offers a efficiency measure that, when put next yr over yr, captures traits in occupancy charges, rental charges and working prices. The Firm additionally believes that NOI shall be helpful to buyers as a foundation to check its working efficiency with that of different REITs. Nevertheless, as a result of NOI excludes depreciation and amortization expense and captures neither the adjustments within the worth of the Firm’s properties that consequence from use or market situations, nor the extent of capital expenditures and leasing commissions needed to keep up the working efficiency of its properties (all of which have actual financial impact and will materially influence the Firm’s outcomes from operations), the utility of NOI as a measure of the Firm’s efficiency is restricted. Different fairness REITs might not calculate NOI in the same method and, accordingly, the Firm’s NOI will not be akin to such different REITs’ NOI. Accordingly, NOI must be thought of solely as a complement to internet earnings as a measure of the Firm’s efficiency. NOI shouldn’t be used as a measure of the Firm’s liquidity, neither is it indicative of funds out there to fund the Firm’s money wants. NOI shouldn’t be used as an alternative to money movement from working actions in accordance with U.S. GAAP.

Money NOI is a non-GAAP measure that the Firm calculates by including or subtracting non-cash rental income, together with straight-line rental income, from NOI. The Firm makes use of Money NOI, along with NOI, as supplemental efficiency measures. Money NOI shouldn’t be used as a measure of the Firm’s liquidity, neither is it indicative of funds out there to fund the Firm’s money wants. Money NOI shouldn’t be used as an alternative to money movement from working actions computed in accordance with U.S. GAAP.

The Firm presents NOI and Money NOI for its industrial/logistics properties by subtracting the NOI and Money NOI attributable to its non-industrial/logistics properties from the NOI and Money NOI, as relevant, for its whole actual property portfolio.

NOI and Money NOI for INDUS’s industrial/logistics properties and whole portfolio had been as follows:

                               
($ in 000s)   For the Three Months Ended     For the Fiscal 12 months Ended
    Nov. 30, 2020     Nov. 30, 2019   Enhance     Nov. 30, 2020     Nov. 30, 2019   Enhance
Industrial/Warehouse:                              
NOI $ 6,301   $ 5,500   14.6 %   $ 23,713   $ 21,193   11.9 %
Money NOI $ 5,544   $ 5,276   5.1 %   $ 21,559   $ 19,727   9.3 %
                               
Whole:                              
NOI $ 7,130   $ 6,331   12.6 %   $ 26,912   $ 24,222   11.1 %
Money NOI $ 6,325   $ 6,093   3.8 %   $ 24,309   $ 22,655   7.3 %

Funds from Operations

In an effort to enhance the understanding of the Firm’s working outcomes as in comparison with its working ends in a previous interval and that of different REITs, the Firm presents a funds from operations metric considerably just like funds from operations, as calculated in accordance with requirements established by Nareit (“Nareit FFO”).

Nareit FFO is calculated as internet earnings (calculated in accordance with U.S. GAAP), excluding: (a) depreciation and amortization associated to actual property, (b) features and losses from the sale of sure actual property property, (c) features and losses from change in management and (d) impairment write-downs of sure actual property property and investments in entities when the impairment is immediately attributable to decreases within the worth of depreciable actual property held by the entity.

The Firm defines FFO as Nareit FFO, plus an adjustment to take away the influence of an earnings tax profit or provision. The Firm contains the adjustment for earnings taxes as a result of, starting with the taxable yr ending December 31, 2021, the Firm intends to elect to be taxed as a REIT and believes together with this adjustment enhances the comparability of the Firm’s outcomes for durations previous to this tax election. The Firm believes it’s helpful to buyers to have enhanced transparency into the way in which during which its administration evaluates working efficiency to prior comparable durations and with that of different REITs.

Core Funds from Operations

The Firm defines Core FFO as FFO excluding (a) prices associated to the REIT Conversion, (b) change in truthful worth of economic devices, and (c) features or losses on insurance coverage recoveries and/or extinguishment of debt or by-product devices.

Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization for Actual Property

The Firm defines EBITDAre in accordance with requirements established by Nareit. EBITDAre represents internet earnings (loss) (computed in accordance with U.S. GAAP) excluding (a) curiosity expense, (b) earnings tax expense, (c) depreciation and amortization expense, (d) features and losses on the disposition of actual property property (together with features or losses on change of management), (e) impairment write-downs of depreciated property and of investments in unconsolidated associates brought on by a lower in worth of depreciated property within the affiliate, and (f) changes to mirror the entity’s share of EBITDAre of unconsolidated associates. INDUS doesn’t at the moment have any unconsolidated properties or joint ventures.

Adjusted Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization for Actual Property

The Firm defines Adjusted EBITDAre as EBITDAre plus (a) basic and administrative bills associated to the REIT Conversion, (b) non-cash stock-based compensation expense and bills or credit associated to the Firm’s non-qualified deferred compensation plan which might be included on the whole and administrative bills, (c) change in truthful worth of economic devices, and (d) features or losses on the extinguishment of debt or by-product devices.

INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – FFO and Core FFO
({dollars} in 1000’s)

               
  For the Three Months Ended   For the Fiscal 12 months Ended
  Nov. 30, 2020   Nov. 30, 2019   Nov. 30, 2020   Nov. 30, 2019
Web (loss) earnings ($ 11,063 )   ($ 2,582 )   ($ 12,717 )   $ 3,668  
Exclude:              
Depreciation and amortization expense   3,435       2,995       13,623       11,801  
Non-real property depreciation & amortization expense   (20 )     (21 )     (79 )     (81 )
Achieve on gross sales of actual property property   (1,504 )           (2,329 )     (7,829 )
Impairment loss   2,085       3,100       2,085       3,100  
Earnings tax provision (profit)   3,638       (902 )     3,076       (213 )
FFO   (3,429 )     2,590       3,659       10,446  
Exclude:              
Common and administrative bills associated to REIT conversion (1)   615             1,366        
Achieve on insurance coverage restoration                     (126 )
Amortization of terminated swap settlement                     31  
Change in truthful worth of economic devices   5,560             5,974        
Core FFO $ 2,746     $ 2,590     $ 10,999     $ 10,351  

(1) For the three months and financial yr ended November 30, 2020, contains authorized charges of $503 and $1,129, respectively, and consulting prices associated to accounting, compensation and recruitment of personnel of $112 and $237, respectively.

INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – EBITDAre and Adjusted EBITDAre
({dollars} in 1000’s)

               
  For the Three Months Ended   For the Fiscal 12 months Ended
  Nov. 30, 2020   Nov. 30, 2019   Nov. 30, 2020   Nov. 30, 2019
Web (loss) earnings ($ 11,063 )   ($ 2,582 )   ($ 12,717 )   $ 3,668  
               
Curiosity expense   1,814       1,632       7,281       6,408  
Depreciation and amortization expense   3,435       2,995       13,623       11,801  
Achieve on gross sales of actual property property   (1,504 )           (2,329 )     (7,829 )
Impairment loss   2,085       3,100       2,085       3,100  
Earnings tax provision (profit)   3,638       (902 )     3,076       (213 )
EBITDAre   (1,595 )     4,243       11,019       16,935  
               
Common and administrative bills associated to REIT Conversion (1)   615             1,366        
Noncash compensation bills   382       252       979       637  
Change in truthful worth of economic devices   5,560             5,974        
Adjusted EBITDAre $ 4,962     $ 4,495     $ 19,338     $ 17,572  

(1) For the three months and financial yr ended November 30, 2020, contains authorized charges of $503 and $1,129, respectively, and consulting prices associated to accounting, compensation and recruitment of personnel of $112 and $237, respectively.

INDUS REALTY TRUST, INC.
Non-GAAP Reconciliations – NOI and Money NOI
({dollars} in 1000’s)

               
  For the Three Months Ended   For the Fiscal 12 months Ended
  Nov. 30, 2020   Nov. 30, 2019   Nov. 30, 2020   Nov. 30, 2019
Web (loss) earnings ($ 11,063 )   ($ 2,582 )   ($ 12,717 )   $ 3,668  
Earnings tax provision (profit)   3,638       (902 )     3,076       (213 )
Pretax (loss) earnings   (7,425 )     (3,484 )     (9,641 )     3,455  
Exclude:              
Depreciation and amortization expense   3,435       2,995       13,623       11,801  
Common and administrative bills   3,175       2,110       9,960       7,677  
Curiosity expense   1,814       1,632       7,281       6,408  
Change in truthful worth of economic devices   5,560             5,974        
Achieve on gross sales of actual property property   (1,504 )           (2,329 )     (7,829 )
Impairment loss   2,085       3,100       2,085       3,100  
Funding earnings   (10 )     (22 )     (41 )     (264 )
Achieve on insurance coverage restoration                     (126 )
NOI   7,130       6,331       26,912       24,222  
Noncash rental income together with straight-line rents   (805 )     (238 )     (2,603 )     (1,567 )
Money NOI $ 6,325     $ 6,093     $ 24,309     $ 22,655  
               
NOI $ 7,130     $ 6,331     $ 26,912     $ 24,222  
Exclude:              
Rental income from non-industrial/logistics properties   (1,492 )     (1,574 )     (6,159 )     (6,223 )
Working bills of non-industrial/logistics properties   452       524       2,098       2,278  
Actual property taxes of non-industrial/logistics properties   211       219       862       916  
NOI of commercial/logistics properties   6,301       5,500       23,713       21,193  
Noncash rental income together with straight-line rents of commercial/logistics properties   (757 )     (224 )     (2,154 )     (1,466 )
Money NOI of Industrial/Logistics Properties $ 5,544     $ 5,276     $ 21,559     $ 19,727  

CONTACT:
Anthony Galici
Chief Monetary Officer
(860) 286-1307
agalici@indusrt.com

Ashley Pizzo
Director, IR & Capital Markets
(212) 218-7914
apizzo@indusrt.com

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