CABOT INDUSTRIAL TRUST

CABOT INDUSTRIAL TRUST

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Company Overview
Cabot Industrial Trust operates as a private real estate investment trust. The trust was established in 1998 and has its registered head office in Boston, Massachusetts, USA.
Cabot Industrial’s business activities include investment in a portfolio of real estate properties, as well as lease financing and equity investments in industrial real estate, through Cabot L.P., its subsidiaries and other affiliates and joint ventures with institutional partners and conducts other related activities through additional joint ventures in which Cabot L.P. or a subsidiary may be a partner. Its investment policy is to purchase or build income-producing industrial properties primarily for long-term capital appreciation and rental growth, and to expand and improve its properties or to sell them, in whole or in part. The trust can make or invest in loans secured by mortgages or deeds of the trust that are consistent with Cabot Trust’s continued qualification as a REIT (Real Estate Investment Trust) for federal income tax purposes.
Business Summary
Cabot Industrial Trust (Cabot Trust) is an internally managed, fully integrated real estate company that, through Cabot L.P., acquires or develops, leases, manages and holds for investment industrial real estate properties in principal markets throughout the United States. Cabot Trust offers a broad spectrum of industrial property types to meet the diverse needs of its tenants. Its properties are of three general types, including bulk distribution properties, multitenant distribution properties and workspace properties (light industrial and research and development). As of December 31, 2000, Cabot L.P. owned a geographically diversified portfolio of 360 industrial properties, having an aggregate of approximately 42 million rentable square feet, approximately 96% of which space was leased to 718 tenants. In December 2001, Cabot Trust was acquired by CalWest Industrial Properties, LLC, a joint venture of RREEF and the California Public Employees’ Retirement System.
Description and history
Cabot Industrial Trust (Cabot Trust) was organized as a real estate investment trust to continue and expand the national industrial real estate business of Cabot Partners Limited Partnership. Cabot Trust is organized to as an umbrella partnership (UPREIT) structure, meaning that its properties are held and its business is conducted primarily through a limited partnership, Cabot Industrial Properties, L.P. (Cabot L.P.), of which Cabot Trust is the sole general partner. As of December 31, 2000, Cabot Trust held a 93% partnership interest in Cabot L.P. The balance of the partnership interests in Cabot L.P., at that date, was primarily held by investors that had contributed properties or assets to Cabot L.P., in connection with the commencement of the business of Cabot Trust and Cabot L.P., in their current form or in subsequent transactions. In December 2001, Cabot Trust was acquired by CalWest Industrial Properties, LLC, a joint venture of RREEF and the California Public Employees’ Retirement System.

Cabot Trust is an internally managed, fully integrated real estate company that, through Cabot L.P., acquires or develops, leases, manages and holds for investment industrial real estate properties in principal markets throughout the United States. As of December 31, 2000, Cabot L.P. owned a geographically diversified portfolio of 360 industrial properties, having an aggregate of approximately 42 million rentable square feet, approximately 96% of which space was leased to 718 tenants. The properties were located in 21 states in each of the five principal regions (West, Midwest, Northeast, Southeast and Southwest) of the United States. As of December 31, 2000, no single tenant accounted for more than 1.7% of Cabot L.P.’s total annualized net rent.

Cabot Trust offers a broad spectrum of industrial property types to meet the diverse needs of its tenants. Its properties are of three general types, including bulk distribution properties, multitenant distribution properties and workspace properties (light industrial, research and development and similar facilities). As of December 31, 2000, Cabot Trust had properties in a total of 21 markets (19 of which the Company identified as principal targeted markets), including 13 markets in which Cabot owned properties with more than one million rentable square feet. Its tenant base ranges from large national distributors, using bulk distribution warehouse and other types of industrial space in multiple locations, to smaller companies located in single workspace properties

The Company is also engaged in the development and construction of new properties. The construction and leasing functions of its development activities are conducted through relationships with local builders selected by Cabot Trust. As of December 31, 2000, in addition to nine projects that were stabilized (fully leased) in 2000, Cabot Trust had 11 development projects that reached shell completion or were under construction with total projected development costs of approximately $93.4 million. The projects were located in seven of Cabot Trust’s existing submarkets, and involved construction of each of the Company’s principal property types. Sixty-eight percent of the square footage of these development projects had been leased, as of December 31, 2000.

Cabot Trust seeks to acquire additional modern, high-quality properties in submarkets within the industrial markets that it serves. During 2000, Cabot Trust acquired 34 properties, consisting of 3.3 million rentable square feet in eight targeted markets, totaling $152.2 million in 13 separate transactions. In the period from December 31, 2000 through March 8, 2001, Cabot Trust entered into one contract to acquire one property, consisting of approximately 306,000 rentable square feet, at an estimated cost of $20.5 million, in the Dallas market.

During 2000, the Company entered into separate joint venture arrangements with Chase Capital Partners, GE Capital Real Estate and Teachers Insurance and Annuity Association – College Retirement Fund, (collectively, the Joint Ventures). Cabot Trust is the managing member of the Joint Ventures and expects to earn acquisition, development, asset and property management fees for the services it provides to the Joint Ventures. As of December 31, 2000, the Joint Ventures owned $97.5 million of property, consisting of 1.7 million square feet. Cabot Trust’s investment in the Joint Ventures, as of that date, totaled $9.1 million. The remaining equity commitment of Cabot Trust and its co- venturers is approximately $140 million, of which the Company’s share is $28 million. Cabot Trust expects the Joint Ventures to acquire approximately $320 million of additional properties.

As the operating partner of each Joint Venture, Cabot Trust handles the administration of the Joint Venture; manages the day-to-day operations of the property held by the Joint Venture; oversees construction and development in the case of a Joint Venture with a property under development, and either had the power to recommend the sale or refinancing of the property or, in certain Joint Ventures in which such decisions are vested in the other partner, Cabot Trust has the ability to cause the sale or marketing of the property in accordance with pre-established procedures in accordance with the Joint Venture operating agreement. Most major decisions, such as material financings, would require the approval of both partners to the Joint Venture, and any disputes over such major decisions would generally be resolved through the exercise of a buy-sell provision in the Joint Venture operating agreement.

Business Line
Operates as a private real estate investment trust
Subsidiary

Advisor
ARTHUR ANDERSEN LLP
IPO date
1/1998
US SIC Code
6798
Company Address
Suite 200
2, Center Plaza
City province or state postal code
02108, BOSTON, MA
Phone: +1 617 723 0900
Fax: +1 617 722 8237
Country address: UNITED STATES OF AMERICA
Website url: www.cabottrust.com