CNT Centerpoint Pty Sbi

CenterPoint Properties Trust (NYSE:CNT) today announced the vesting of employee stock grants awarded for 2002 performance under CenterPoint's long-term pay-for-performance compensation plan. The shares were awarded based on a 2002 total shareholder return of 20% and a return on invested capital of 11.6%. The shares vested because shareholders have received an additional total return of 60% since the award date, the return hurdle required by the plan for vesting. CenterPoint reconfirmed its annual 2005 guidance of $2.58 to $2.88 for EPS and $2.47 to $2.67 for FFO per share which anticipated the $4.7 million vesting charge, $4.5 million of which is non-cash. However, the Company updated its second quarter 2005 guidance and currently expects to report EPS in the range of $0.44 to $0.50 and FFO per share in the range of $0.52 to $0.56. CenterPoint defines FFO as: net income available to common shareholders plus real estate depreciation and non-financing amortization, inclusive of fee income and gain or losses on industrial property sales (net of accumulated depreciation) of the Company and its unconsolidated affiliates. (Please see the Release Definition below for further explanation of FFO.) Michael Mullen, Chief Executive Officer commented, "Our "double trigger" long term incentive plan aligns management and shareholder interests, by motivating decisions aimed at enhancing share value. Long term incentives account for about half of senior executive pay. The plan has worked. Since the outset of 2002, in less than four years, shareholders have seen their investment increase by approximately $1.0 billion." "Based on last year's share performance, we budgeted this vesting charge for 2005 and included it in our earnings guidance announcement last December. Therefore, our annual guidance remains unchanged. Our updated second quarter guidance reflects the occurrence of the vesting charge as well as current expectations of the timing of transactions scheduled to close on or about the end of the quarter." "Going forward, unvested shares earned under the 2003 Omnibus Employee Retention and Incentive Plan approved by the shareholders will vest in increments, not less than two years from the award date. The first 20% will vest when the share price has appreciated 30%, the second 20% will vest when the share price has appreciated 40%, the third 20% will vest when the share price has appreciated 50%, and so on. Therefore, employees will only receive 100% of their stock grants for these years after the shareholders have received a total return of at least 70% from the date of issue." About CenterPoint Properties Trust CenterPoint is a publicly traded real estate investment trust (REIT) and the largest industrial property company in the 1.4-billion-square-foot Chicago regional market. As of March 31, 2005, the Company owned and operated approximately 40.1 million square feet and the Company and its affiliates owned or controlled an additional 3,329 acres of land upon which approximately 52 million square feet could be developed. The Company is focused on providing unsurpassed tenant satisfaction and adding value to its shareholders through customer driven management, investment, development and redevelopment of warehouse, distribution, light manufacturing buildings and logistics infrastructure. The first major REIT to focus on the industrial property sector, CenterPoint had a total market capitalization of approximately $3.0 billion as of March 31, 2005. Statements in this release, which are not historical, may be deemed forward-looking statements under federal securities laws. There can be no assurance that future results will be achieved and actual results could differ materially from forecasts and estimates. Factors that could cause actual results to differ materially are general business and economic conditions, completion of pending acquisitions, competitive market conditions, weather, pricing of debt and equity capital markets and other risks inherent in the real estate business. Such factors and others are listed in the Company's Form 10-K and 10-Qs. Release Definitions Funds From Operations (FFO) The National Associations of Real Estate Investment Trust ("NAREIT") defines funds from operations ("FFO") (April, 2002 White Paper) as net income excluding gains (or losses) from sales of property, plus depreciation and amortization. NAREIT adds, "management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community." Accordingly, CenterPoint calculates FFO, inclusive of fee income and industrial property sales (net of accumulated depreciation) of the Company and its unconsolidated affiliates. The Company believes that FFO inclusive of cash gains better reflects recurring funds because the disposition of stabilized properties, and the recycling of capital and profits into new "value added" investments, is fundamental to the Company's business strategy.