ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended March 31, 2009. All per share amounts
are reported on a diluted basis; basic per share data is included in the
Condensed Consolidated Statements of Income accompanying this release.
Funds from Operations Available to Common Stockholders ("FFO") was $7.6
million, or $0.15 per share, for the first quarter of 2009 compared with
FFO of $13.8 million, or $0.27 per share, for the first quarter of 2008.
Net Income Available to Common Stockholders ("Net Income Available") was
$160.6 million, or $3.13 per share, compared with Net Income Available
of $1.8 million, or $0.04 per share, for the first quarter of 2008.
First quarter highlights of the Company included the following:
-- As a result of a distribution from the venture to the partners,
recognized approximately $167 million of deferred gain related to the
June 2006 Avenue Fund transaction with Prudential.
-- Sold a ground-leased outparcel at The Avenue Webb Gin for approximately
$1.8 million, generating pre-tax FFO of approximately $582,000.
-- Executed or renewed leases covering approximately 80,000 square feet of
office space and 72,000 square feet of retail space.
Other highlights subsequent to quarter end included the following:
-- In April 2009, repaid in full the $83.3 million mortgage note payable
secured by the San Jose MarketCenter for approximately $70 million. The
Company anticipates recognizing a gain on extinguishment of this debt of
approximately $12.7 million in the second quarter of 2009.
-- Executed a 50,000 square foot lease with Firethorn Holdings, LLC in
Terminus 200, a 25-story office building under construction at the
Company's Terminus development in Atlanta, Georgia.
At March 31, 2009, the Company's portfolio of operational office
buildings was 90% leased, its portfolio of operational retail centers
was 83% leased and its operational industrial buildings were 40% leased.
"In an extremely challenging leasing environment, our leasing team made
good progress during the first quarter, leasing new space and renewing
existing space," said Tom Bell, Chairman and CEO of Cousins. "Our
recently executed lease of two floors at Terminus 200 provides an
encouraging start to the leasing of this asset. Equally encouraging was
the purchase of our San Jose MarketCenter note at 84 cents on the
dollar, which is a testament to our ability to put our strong balance
sheet to work in this environment. We will continue to seek other
opportunities that emerge while focusing on maintaining and
strengthening our existing assets."
The Condensed Consolidated Statements of Income, Condensed Consolidated
Balance Sheets and a schedule entitled Funds From Operations, which
reconciles Net Income Available to FFO, are attached to this press
release. More detailed information on Net Income Available and FFO
results is included in the "Net Income and Funds From
Operations-Supplemental Detail" schedule which is included along with
other supplemental information in the Company's Current Report on Form
8-K, which the Company is furnishing to the Securities and Exchange
Commission ("SEC"), and which can be viewed through the "Quarterly
Disclosures" and "SEC Filings" links on the Investor Relations page of
the Company's website at www.cousinsproperties.com.
This information may also be obtained by calling the Company's Investor
Relations Department at (404) 407-1984.
The Company will conduct a conference call at 2:00 p.m. (Eastern Time)
on Wednesday, May 6, 2009, to discuss the results of the quarter ended
March 31, 2009. The number to call for this interactive teleconference
is (303) 275-2170. A replay of the conference call will be available for
14 days by dialing (303) 590-3000 and entering the passcode 11129149#.
The replay can be accessed on the Company's website, www.cousinsproperties.com,
through the "Q1 2009 Cousins Properties Incorporated Earnings Conference
Call" link on the Investor Relations page, as well as at www.streetevents.com
and www.earnings.com.
The rebroadcast will be available on the Investor Relations page of the
Company's website for 14 days.
Cousins Properties Incorporated is a leading diversified real estate
company with extensive experience in development, acquisition,
financing, management and leasing. Based in Atlanta, the Company
actively invests in office, multi-family, retail, industrial and land
development projects. Since its founding in 1958, Cousins has developed
20 million square feet of office space, 20 million square feet of retail
space, more than 4,000 multi-family units and more than 60 single-family
neighborhoods. The Company is a fully integrated equity real estate
investment trust (REIT) and trades on the New York Stock Exchange under
the symbol CUZ. For more, please visit www.cousinsproperties.com.
Certain matters discussed in this news release are forward-looking
statements within the meaning of the federal securities laws and are
subject to uncertainties and risk. These include, but are not
limited to, general and local economic conditions (including the current
general recession and state of the credit markets), local real estate
conditions (including the overall condition of the residential markets),
the activity of others developing competitive projects, the risks
associated with development projects (such as delay, cost overruns and
leasing/sales risk of new properties), the cyclical nature of the real
estate industry, the financial condition of existing tenants, interest
rates, the Company's ability to obtain favorable financing or zoning,
environmental matters, the effects of terrorism, the ability of the
Company to close properties under contract and other risks detailed from
time to time in the Company's filings with the Securities and Exchange
Commission, including those described in Part I, Item 1A of the
Company's Annual Report on Form 10-K for the year ended December 31,
2008. The words "believes," "expects," "anticipates," "estimates" and
similar expressions are intended to identify forward-looking statements.
Although the Company believes that its plans, intentions and
expectations reflected in any forward-looking statement are reasonable,
the Company can give no assurance that these plans, intentions or
expectations will be achieved. Such forward-looking statements are based
on current expectations and speak as of the date of such statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events, new
information or otherwise.
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share amounts)
Three Months Ended
March 31,
2009 2008
REVENUES:
Rental property revenues $ 37,509 $ 34,307
Fee income 8,044 7,558
Residential lot and outparcel sales 2,548 1,744
Interest and other 986 1,360
49,087 44,969
COSTS AND EXPENSES:
Rental property operating expenses 17,313 13,439
General and administrative expenses 9,762 10,599
Reimbursed general and administrative expenses 4,228 3,786
Depreciation and amortization 13,056 11,265
Residential lot and outparcel cost of sales 1,730 946
Interest expense 10,430 6,275
Other 1,546 1,755
58,065 48,065
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, INCOME
FROM UNCONSOLIDATED JOINT VENTURES AND NONCONTROLLING (8,978 ) (3,096 )
INTERESTS
BENEFIT FOR INCOME TAXES FROM OPERATIONS 3,941 3,217
INCOME FROM UNCONSOLIDATED JOINT VENTURES 1,820 2,817
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON (3,217 ) 2,938
SALE OF INVESTMENT PROPERTIES
GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF 167,434 3,792
APPLICABLE INCOME TAX PROVISION
INCOME FROM CONTINUING OPERATIONS 164,217 6,730
LOSS FROM DISCONTINUED OPERATIONS (7 ) (407 )
NET INCOME 164,210 6,323
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (412 ) (671 )
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST 163,798 5,652
DIVIDENDS TO PREFERRED STOCKHOLDERS (3,227 ) (3,813 )
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 160,571 $ 1,839
PER COMMON SHARE-BASIC:
Income from continuing operations $ 3.13 $ 0.05
Loss from discontinued operations - (0.01 )
Net income available to common stockholders $ 3.13 $ 0.04
PER COMMON SHARE-DILUTED:
Income from continuing operations $ 3.13 $ 0.05
Loss from discontinued operations - (0.01 )
Net income available to common stockholders $ 3.13 $ 0.04
CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.25 $ 0.37
WEIGHTED AVERAGE SHARES 51,350 51,281
DILUTED WEIGHTED AVERAGE SHARES 51,350 51,803
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Unaudited, in thousands, except per share amounts)
Three Months Ended
March 31,
2009 2008
Net Income Available to Common Stockholders $ 160,571 $ 1,839
Depreciation and amortization:
Consolidated properties 13,056 11,265
Discontinued properties - 174
Share of unconsolidated joint ventures 2,158 1,391
Depreciation of furniture, fixtures and equipment and
amortization of specifically identifiable intangible
assets:
Consolidated properties (968 ) (770 )
Discontinued properties - (7 )
Share of unconsolidated joint ventures (10 ) (25 )
Gain on sale of investment properties, net of
applicable income tax provision:
Consolidated (167,434 ) (3,792 )
Share of unconsolidated joint ventures (28 ) -
Gain on sale of undepreciated investment properties 209 3,736
Funds From Operations Available to Common Stockholders $ 7,554 $ 13,811
Per Common Share - Basic:
Net Income Available $ 3.13 $ .04
Funds From Operations $ .15 $ .27
Weighted Average Shares-Basic 51,350 51,281
Per Common Share - Diluted:
Net Income Available $ 3.13 $ .04
Funds From Operations $ .15 $ .27
Weighted Average Shares-Diluted 51,350 51,803
The table above shows Funds From Operations Available to Common
Stockholders ("FFO") and the related reconciliation to Net Income
Available to Common Stockholders ("Net Income Available") for Cousins
Properties Incorporated and Subsidiaries. The Company calculated FFO in
accordance with the National Association of Real Estate Investment
Trusts' ("NAREIT") definition, which is net income available to common
stockholders (computed in accordance with accounting principles
generally accepted in the United States ("GAAP")), excluding
extraordinary items, cumulative effect of change in accounting principle
and gains or losses from sales of depreciable property, plus
depreciation and amortization of real estate assets, and after
adjustments for unconsolidated partnerships and joint ventures to
reflect FFO on the same basis.
FFO is used by industry analysts and investors as a supplemental measure
of an equity REIT's operating performance. Historical cost accounting
for real estate assets implicitly assumes that the value of real estate
assets diminishes predictably over time. Since real estate values
instead have historically risen or fallen with market conditions, many
industry investors and analysts have considered presentation of
operating results for real estate companies that use historical cost
accounting to be insufficient by themselves. Thus, NAREIT created FFO as
a supplemental measure of REIT operating performance that excludes
historical cost depreciation, among other items, from GAAP net income.
Management believes that the use of FFO, combined with the required
primary GAAP presentations, has been fundamentally beneficial, improving
the understanding of operating results of REITs among the investing
public and making comparisons of REIT operating results more meaningful.
Company management evaluates operating performance in part based on FFO.
Additionally, the Company uses FFO and FFO per share, along with other
measures, to assess performance in connection with evaluating and
granting incentive compensation to its officers and key employees.
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share amounts)
March 31, December 31,
2009 2008
ASSETS
PROPERTIES:
Operating properties, net of accumulated
depreciation of $192,988 and $182,050 in 2009 and $ 849,386 $ 853,450
2008, respectively
Projects under development 169,427 172,582
Land held for investment or future development 122,360 115,862
Residential lots under development 60,122 59,197
Multi-family units held for sale 70,888 70,658
Total properties 1,272,183 1,271,749
CASH AND CASH EQUIVALENTS 59,662 82,963
RESTRICTED CASH 4,549 3,636
NOTES AND OTHER RECEIVABLES,net of allowance for
doubtful accounts of $2,942 and $2,764 in 2009 and 51,390 51,267
2008, respectively
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 200,726 200,850
OTHER ASSETS 84,200 83,330
TOTAL ASSETS $ 1,672,710 $ 1,693,795
LIABILITIES AND STOCKHOLDERS' INVESTMENT
NOTES PAYABLE $ 945,269 $ 942,239
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 55,076 65,026
DEFERRED GAIN 4,620 171,838
DEPOSITS AND DEFERRED INCOME 6,662 6,485
TOTAL LIABILITIES 1,011,627 1,185,588
COMMITMENTS AND CONTINGENT LIABILITIES
REDEEMABLE NONCONTROLLING INTERESTS IN 12,658 3,945
CONSOLIDATED SUBSIDIARIES
STOCKHOLDERS' INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1
par value:
7.75% Series A cumulative redeemable preferred
stock, $25 liquidation preference; 2,993,090 74,827 74,827
shares issued and outstanding in 2009 and 2008
7.50% Series B cumulative redeemable preferred
stock, $25 liquidation preference; 3,791,000 94,775 94,775
shares issued and outstanding in 2009 and 2008
Common stock, $1 par value, 150,000,000 shares
authorized, 54,912,152 and 54,922,173 shares 54,912 54,922
issued in 2009 and 2008, respectively
Additional paid-in capital 369,665 368,829
Treasury stock at cost, 3,570,082 shares in 2009 (86,840 ) (86,840 )
and 2008
Accumulated other comprehensive loss (16,121 ) (16,601 )
Cumulative undistributed net income 124,364 (23,189 )
(distributions in excess of net income)
TOTAL STOCKHOLDERS' INVESTMENT ATTRIBUTABLE TO 615,582 466,723
CONTROLLING INTEREST
NONREDEEMABLE NONCONTROLLING INTERESTS IN 32,843 37,539
CONSOLIDATED SUBSIDIARIES
TOTAL STOCKHOLDERS' INVESTMENT 648,425 504,262
TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,672,710 $ 1,693,795
Source: Cousins Properties Incorporated
Contact: Cousins Properties Incorporated
James A. Fleming, 404-407-1150
Executive Vice President and
Chief Financial Officer
jimfleming@cousinsproperties.com
or
Cameron Golden, 404-407-1984
Director of Investor Relations and
Corporate Communications
camerongolden@cousinsproperties.com
www.cousinsproperties.com