<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex99-1.txt
<DESCRIPTION>EX. 99.1: PRESS RELEASE
<TEXT>
Exhibit 99.1
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Contact: Rubenstein Associates
Robert Solomon: (212) 843-8050
Scott Tagliarino: (212) 843-8057
Capital Trust Reports First Quarter 2003 Results
------------------------------------------------
NEW YORK, NY - May 16, 2003 - Capital Trust, Inc. (NYSE: CT) today
reported first quarter 2003 net income of 46 cents per share (diluted),
representing an increase of 22 cents per share (diluted) over the same period in
the prior year.
In February, the Company announced that its Board of Directors had
approved a plan for the Company to elect to be taxed as a real estate investment
trust ("REIT") commencing January 1, 2003. The reduction in taxes from the
election of REIT status was the main driver of the increase in earnings per
share over the same period in the prior year. On April 2, 2003, the Company's
charter was amended and restated to eliminate from the authorized stock of the
Company the entire 100,000,000 shares of the Company's authorized but unissued
class B common stock and to effect a one (1) for three (3) reverse stock split
of the Company's class A common stock.
All per share information concerning the computation of earnings per
share, dividends per share, and authorized stock reported in the accompanying
Consolidated Balance Sheets and Consolidated Statements of Income and herein
have been adjusted as if the amendments to the Company's charter were in effect
for all fiscal periods and as of all balance sheet dates presented.
"We are pleased to report operating results in line with our
expectations," said John Klopp, Capital Trust's CEO. "With the structuring
necessary to elect REIT status now complete, we are fully focused on growing our
balance sheet and investment management businesses."
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Capital Trust
Page 2
Operating Results
-----------------
For the quarter ended March 31, 2003, the Company reported total
revenues of $11.1 million and net income of 46 cents per share (based on 5.5
million weighted average diluted shares outstanding) compared to total revenues
of $13.9 million and net income of 24 cents per share (based on 6.5 million
weighted average diluted shares outstanding) in the same period of 2002.
Outlined below are selected financial highlights for the quarter:
Balance Sheet
-------------
Total assets were $384.5 million at March 31, 2003, reflecting a slight
decline from $385.0 million at December 31, 2002. On January 31, 2003, the
Company purchased from affiliates of Citigroup their 75% interest in CT
Mezzanine Partners I for a price of $38.4 million (including the assumption of
liabilities), adding to assets $48.3 million of loans receivable, net, which
more than offset the $46.9 million of total asset repayments during the quarter.
At quarter-end, total debt was $205.0 million, up slightly from $200.1 million
at December 31, 2002, and the Company's debt-to-equity ratio was 1.2-to-1 at the
end of each period (treating the remaining convertible trust preferred
securities as equity). During the quarter ended March 31, 2003, the Company
purchased from affiliates of Citigroup warrants exercisable for 2,842,822 shares
of common stock for a total price of $2.1 million and bought 66,427 shares of
class A common stock under the open market share repurchase program for $947,000
accounting for most of the $3.7 million decrease in stockholder's equity from
the amount reported at December 31, 2002.
Income Statement
----------------
Interest income for the quarter ended March 31, 2003 declined from the
same period in the prior year as a result of significant asset sales and
repayments. This decrease was partially offset by a reduction of interest
expense as cash received from the asset sales and repayments was utilized to
reduce liabilities. The combined impact reduced net interest income from loans
and other investments by $1.7 million when comparing the quarter ended March 31,
2003 to the quarter ended March 31, 2002.
As a result of the redemption of $60 million of the convertible trust
preferred securities on September 30, 2002, distributions and amortization on
these securities were reduced by $1.6 million when comparing the quarter ended
March 31, 2003 to the same period in the prior year. Coupled with the reduction
in taxes as a result of the Company electing REIT status, this more than offset
the decreases in net interest income from loans and other investments resulting
in the Company reporting net income of $2.5 million for the quarter ended March
31, 2003 compared to net income of $1.6 million for the quarter ended March 31,
2002.
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Capital Trust
Page 3
Dividends
---------
At its March 11, 2003 meeting, the Company's Board of Directors declared
a first quarter 2003 cash dividend of $0.45 per share of Class A Common Stock.
The cash dividend was paid on April 15, 2003 to stockholders of record on March
31, 2003.
Forward-Looking Statements
--------------------------
The forward-looking statements contained in this news release are
subject to certain risks and uncertainties including, but not limited to, the
continued performance, new origination volume and the rate of repayment of the
Company's and its Funds' loan and investment portfolio; the continued maturity
and satisfaction of the Company's portfolio assets; as well as other risks
indicated from time to time in the Company's filings with the Securities and
Exchange Commission. The Company assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.
Capital Trust, Inc. is an investment management and finance company
focused on the commercial real estate industry and headquartered in New York. To
date Capital Trust, for its own account or for funds under management, has
originated $2.9 billion of commercial real estate mezzanine investments in 93
separate transactions.
Tables to follow
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Capital Trust, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, 2003 and December 31, 2002
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
---------------- ----------------
2003 2002
---------------- ----------------
(Unaudited) (Audited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 11,176 $ 10,186
Available-for-sale securities, at fair value 46,414 65,233
Commercial mortgage-backed securities available-for-sale,
at fair value 156,373 155,780
Loans receivable, net of $6,672 and $4,982 reserve for possible
credit losses at March 31, 2003 and December 31, 2002,
respectively 135,762 116,347
Equity investment in CT Mezzanine Partners I LLC ("Fund I"), CT
Mezzanine Partners II LP ("Fund II") and CT MP II LLC ("Fund
II GP") (together "Funds") 28,415 28,974
Deposits and other receivables 24 431
Accrued interest receivable 2,725 4,422
Deferred income taxes 1,755 1,585
Prepaid and other assets 1,825 2,018
---------------- ----------------
Total assets $ 384,469 $ 384,976
================ ================
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses $ 6,873 $ 9,067
Credit facility 44,468 40,000
Term redeemable securities contract 20,000 --
Repurchase obligations 140,495 160,056
Deferred origination fees and other revenue 895 987
Interest rate hedge liabilities 2,258 1,822
---------------- ----------------
Total liabilities 214,989 211,932
---------------- ----------------
Company-obligated, mandatory redeemable, convertible trust preferred
securities of CT Convertible Trust I, holding $89,742 of convertible
10.0% junior subordinated debentures at March 31, 2003 and
December 31, 2002 ("Convertible Trust Preferred Securities") 89,107 88,988
---------------- ----------------
Stockholders' equity:
Class A common stock, $0.01 par value, 100,000 shares authorized, 5,410
and 5,405 shares issued and outstanding at March 31, 2003 and
December 31, 2002, respectively ("Class A Common Stock") 54 54
Restricted Class A Common Stock, $0.01 par value, 17 and 100 shares
issued and outstanding at March 31, 2003 and December 31, 2002,
respectively ("Restricted Class A Common Stock" and together with
Class A Common Stock, "Common Stock") -- 1
Additional paid-in capital 123,654 126,919
Unearned compensation (62) (320)
Accumulated other comprehensive loss (29,766) (28,988)
Accumulated deficit (13,507) (13,610)
---------------- ----------------
Total stockholders' equity 80,373 84,056
---------------- ----------------
Total liabilities and stockholders' equity $ 384,469 $ 384,976
================ ================
</TABLE>
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Capital Trust, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended March 31, 2003 and 2002
(in thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
2003 2002
--------------- ---------------
<S> <C> <C>
Income from loans and other investments:
Interest and related income $ 8,959 $ 13,986
Less: Interest and related expenses 2,295 5,649
--------------- ---------------
Income from loans and other investments, net 6,664 8,337
--------------- ---------------
Other revenues:
Management and advisory fees from Funds 1,376 2,491
Income/(loss) from equity investments in Funds 785 (2,694)
Advisory and investment banking fees -- 75
Other interest income 19 28
--------------- ---------------
Total other revenues 2,180 (100)
--------------- ---------------
Other expenses:
General and administrative 3,704 3,929
Other interest expense -- 12
Depreciation and amortization 232 248
Unrealized (gain)/loss on derivative securities -- (253)
Provision for/(recapture of) allowance for possible
credit losses -- (2,963)
--------------- ---------------
Total other expenses 3,936 973
--------------- ---------------
Income before income taxes and distributions and
amortization on Convertible Trust Preferred
Securities 4,908 7,264
Provision for income taxes -- 3,538
--------------- ---------------
Income before distributions and amortization on
Convertible Trust Preferred Securities 4,908 3,726
Distributions and amortization on Convertible
Trust Preferred Securities, net of income tax
benefit of $1,855 for the three months ended
March 31, 2002 2,363 2,153
--------------- ---------------
Net income allocable to Common Stock $ 2,545 $ 1,573
=============== ===============
Per share information:
Net earnings per share of Common Stock
Basic $ 0.46 $ 0.25
=============== ===============
Diluted $ 0.46 $ 0.24
=============== ===============
Weighted average shares of Common Stock outstanding
Basic 5,515,484 6,269,995
=============== ===============
Diluted 5,539,446 6,527,480
=============== ===============
Dividends declared per share of Common Stock $ 0.45 $ --
=============== ===============
</TABLE>
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