Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release.The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2011, as may be updated or supplemented in the company’s Form 10-Q filings, which discuss these and other factors that could adversely affect the company’s results.
Colonial Properties Trust (NYSE: CLP), today announced that the company has sold its remaining 15 percent ownership interest in the 18-asset DRA/CLP Office joint venture with DRA Advisors LLC (the “Joint Venture”). Pursuant to the transaction, which was effective June 30, 2012, the Joint Venture repurchased the company’s 15 percent membership interest for $2.0 million, and the company no longer has responsibility for $111.3 million of Joint Venture mortgage debt, which represents the company’s pro rata share of debt of the Joint Venture’s mortgage debt. The $2.0 million consideration is payable to the company following the occurrence of one or more capital events and after certain returns have been achieved with respect to additional capital expected to be invested in the Joint Venture by other members of the Joint Venture. Additionally, the company was released from a $4.2 million contingent liability related to a debt guaranty provided by the Joint Venture, which amount represents the company’s pro rata share of such guaranty obligation. The company also expects to transition management and certain leasing responsibilities to a third party over the next 90 days. “This transaction is a significant step in the ongoing simplification of our business,” stated Thomas H. Lowder, Chairman and Chief Executive Officer of Colonial Properties Trust. “This was our largest remaining commercial joint venture and this transaction moves us closer to our stated goal of having at least 90 percent of our net operating income generated from our multifamily business.” Colonial Properties Trust is a real estate investment trust (REIT) that creates value for its shareholders through a multifamily focused portfolio and the management and development of select commercial assets in the Sunbelt region of the United States. As of March 31, 2012, the company owned or managed 35,517 apartment units and 9.7 million square feet of commercial space. Headquartered in Birmingham, Alabama, Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, please visit the company's website at www.colonialprop.com. Safe Harbor Statement “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release, including statements regarding the company’s receipt of all or any part of the $2.0 million repurchase payment, the transition of management services and certain leasing responsibilities to a third party and the company’s goal of having at least 90 percent of its net operating income generated from its multifamily business, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, changes in national, regional and local economic conditions, which may be negatively impacted by concerns about inflation, deflation, government deficits (including the European sovereign debt crisis), high unemployment rates, decreased consumer confidence and liquidity concerns, particularly in markets in which we have a high concentration of properties; exposure, as a multifamily focused REIT, to risks inherent in investments in a single industry; ability to obtain financing on favorable rates, if at all; performance of affiliates or companies in which we have made investments; changes in operating costs; higher than expected construction costs; uncertainties associated with the timing and amount of real estate disposition and the resulting gains/losses associated with such dispositions; legislative or regulatory decisions; the company’s ability to continue to maintain our status as a REIT for federal income tax purposes; price volatility, dislocations and liquidity disruptions in the financial markets and the resulting impact on availability of financing; the effect of any rating agency action on the cost and availability of new debt financings; level and volatility of interest rates or capital market conditions; effect of any terrorist activity or other heightened geopolitical crisis; or other factors affecting the real estate industry generally.