ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended March 31, 2010. 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 $14.0
million, or $0.14 per share, for the first quarter of 2010 compared with
FFO of $7.6 million, or $0.15 per share, for the first quarter of 2009.
Net Loss Available to Common Stockholders was $(1.6) million, or $(0.02)
per share, for the first quarter of 2010 compared with Net Income
Available to Common Stockholders of $160.6 million, or $3.13 per share,
for the first quarter of 2009. During the first quarter of 2009, the
Company recognized approximately $167 million of deferred gain related
to a joint venture that holds several retail properties.
First quarter 2010 highlights of the Company included the following:
-
Sold nine outparcels at three retail centers, generating FFO of
approximately $4.7 million.
-
Closed 19 units at its 10 Terminus Place condominium project,
generating FFO of approximately $2.2 million.
-
Sold Glenmore Garden Villas in Charlotte, North Carolina, generating
FFO of approximately $369,000.
-
Sold 53 acres of land at Jefferson Mill Business Park, generating FFO
of approximately $328,000.
-
Increased the percent leased of Lakeside Ranch Business Park to 77%
upon execution of a lease with Owens & Minor for 223,000 square feet.
-
Executed or renewed leases covering approximately 232,000 square feet
of office space and 162,000 square feet of retail space.
-
Amended its Credit and Term Facilities to provide more financial
flexibility.
Other highlights subsequent to quarter end included the following:
-
Restructured its interest in Terminus 200 in a transaction that
reduced its ownership from 50% to 20% and simultaneously extended the
construction loan.
-
Executed a lease for the top five floors of Terminus 200.
-
Executed a 459,000 square foot lease with a Fortune 1000 Company at
Jefferson Mill Business Park, bringing this building to 100% leased.
-
Sold 44 acres of land at King Mill Distribution Park.
At March 31, 2010, the Company’s portfolio of operational office
buildings was 88% leased, its portfolio of operational retail centers
was 85% leased and its operational industrial buildings were 64% leased.
After the Jefferson Mill Business Park lease discussed above, the
percentage leased of the Company’s operational industrial buildings
increased to 85%.
“We made good progress during the quarter in selling outparcels and
non-core assets in order to improve our overall financial position,”
said Larry Gellerstedt, CEO of Cousins. “We have also been rewarded in
our leasing efforts in spite of the struggling economy, showing
improvement in the leasing percentages of each of our product types. We
are pleased with these trends and will work diligently throughout the
year to ensure that they continue.”
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 Tuesday, May 11, 2010, to discuss the results of the quarter ended
March 31, 2010. The number to call for this interactive teleconference
is (212) 231-2901. A replay of the conference call will be available for
14 days by dialing (402) 977-9140 and entering the passcode 21463750.
The replay can be accessed on the Company’s website, www.cousinsproperties.com,
through the “Q1 2010 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 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 3,500 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, availability and terms of capital and financing; national
and local economic conditions; the real estate industry in general and
in specific markets; the potential for recognition of additional
impairments due to continued adverse market and economic conditions;
leasing risks; the financial condition of existing tenants; competition
from other developers or investors; the risks associated with
development projects; rising interest and insurance rates; the
availability of sufficient development or investment opportunities;
environmental matters; the financial condition and liquidity of, or
disputes with, joint venture partners; any failure to comply with debt
covenants under credit agreements; any failure to continue to qualify
for taxation as a real estate investment trust 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,
2009. The words “believes,” “expects,” “anticipates,” “estimates,”
“plans,” “may,” “intend,” “will” or 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 such
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, except as required under U.S.
federal securities laws.
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
(Unaudited, in thousands, except per share amounts)
|
|
| |
| |
| | Three Months Ended March 31, |
| | 2010 | | 2009 |
| REVENUES: | | | | |
|
Rental property revenues
| | $ | 37,213 | | |
$
|
37,509
| |
|
Fee income
| | | 8,338 | | | |
8,044
| |
|
Multi-family residential unit sales
| | | 10,146 | | | |
-
| |
|
Residential lot and outparcel sales
| | | 13,819 | | | |
2,548
| |
|
Interest and other
| |
| 124 |
| |
|
986
|
|
| |
| 69,640 |
| |
|
49,087
|
|
| | | |
|
| COSTS AND EXPENSES: | | | | |
|
Rental property operating expenses
| | | 15,184 | | | |
17,313
| |
|
Multi-family residential unit cost of sales
| | | 7,970 | | | |
-
| |
|
Residential lot and outparcel cost of sales
| | | 9,096 | | | |
1,730
| |
|
General and administrative expenses
| | | 9,950 | | | |
9,418
| |
|
Separation expenses
| | | 68 | | | |
344
| |
|
Reimbursed general and administrative expenses
| | | 4,418 | | | |
4,228
| |
|
Depreciation and amortization
| | | 13,895 | | | |
13,056
| |
|
Interest expense
| | | 9,781 | | | |
10,430
| |
|
Other
| |
| 1,328 |
| |
|
1,546
|
|
| |
| 71,690 |
| |
|
58,065
|
|
| | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | |
| (592 | ) | |
|
-
|
|
| | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED
JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | | | (2,642 | ) | | |
(8,978
|
)
|
| | | |
|
| BENEFIT FOR INCOME TAXES FROM OPERATIONS | | | 1,146 | | | |
3,941
| |
| | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | |
| 2,920 |
| |
|
1,820
|
|
| | | |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES | | | 1,424 | | | |
(3,217
|
)
|
| | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | |
| 756 |
| |
|
167,434
|
|
| | | |
|
| INCOME FROM CONTINUING OPERATIONS | | | 2,180 | | | |
164,217
| |
| | | |
|
| LOSS FROM DISCONTINUED OPERATIONS | |
| - |
| |
|
(7
|
)
|
| | | |
|
| NET INCOME | | | 2,180 | | | |
164,210
| |
| NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
| (526 | ) | |
|
(412
|
)
|
| | | |
|
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | | | 1,654 | | | |
163,798
| |
| | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | |
| (3,227 | ) | |
|
(3,227
|
)
|
| | | |
|
| NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | | $ | (1,573 | ) | |
$
|
160,571
|
|
| | | |
|
| | | |
|
| NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED | | $ | (0.02 | ) | |
$
|
3.13
|
|
| | | |
|
| DIVIDENDS DECLARED PER COMMON SHARE | | $ | 0.09 |
| |
$
|
0.25
|
|
| | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | |
| 100,069 |
| |
|
51,350
|
|
| | | |
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
| FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 |
|
(Unaudited, in thousands, except per share amounts)
|
|
|
| |
| |
| | | | |
|
| | | Three Months Ended |
| | | March 31, |
| | | 2010 | | 2009 |
| | | | |
|
| Net Income (Loss) Available to Common Stockholders | | | $ | (1,573 | ) | | $ | 160,571 | |
|
Depreciation and amortization:
| | | | | |
|
Consolidated properties
| | | |
13,895
| | | |
13,056
| |
|
Share of unconsolidated joint ventures
| | | |
2,294
| | | |
2,158
| |
|
Depreciation of furniture, fixtures and equipment:
| | | | | |
|
Consolidated properties
| | | |
(571
|
)
| | |
(968
|
)
|
|
Share of unconsolidated joint ventures
| | | |
(6
|
)
| | |
(10
|
)
|
|
Gain on sale of investment properties:
| | | | | |
|
Consolidated
| | | |
(756
|
)
| | |
(167,434
|
)
|
|
Share of unconsolidated joint ventures
| | | |
-
| | | |
(28
|
)
|
|
Gain on sale of undepreciated investment properties
| | |
|
697
|
| |
|
209
|
|
| | | | |
|
| Funds From Operations Available to Common Stockholders | | | $ | 13,980 |
| | $ | 7,554 |
|
| | | | |
|
| | | | |
|
| Per Common Share - Basic and Diluted: | | | | | |
| | | | |
|
| Net Income (Loss) Available | | | $ | (.02 | ) | | $ | 3.13 |
|
| | | | |
|
| Funds From Operations | | | $ | .14 |
| | $ | .15 |
|
| | | | |
|
| Weighted Average Shares | | |
| 100,069 |
| |
| 51,350 |
|
| | | | |
|
The table above shows Funds From Operations Available to Common
Stockholders (“FFO”) and the related reconciliation to Net Income (Loss)
Available to Common Stockholders 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 (loss) 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 |
|
(In thousands, except share and per share amounts)
|
|
| |
| |
| | March 31, 2010 | |
December 31, 2009
|
| |
(Unaudited)
| | |
ASSETS | | | | |
| PROPERTIES: | | | | |
Operating properties, net of accumulated depreciation of $246,129
and $233,091 in 2010 and 2009, respectively
| | $ | 991,762 | | |
$
|
1,006,760
| |
|
Land held for investment or future development
| | | 135,313 | | | |
137,233
| |
|
Residential lots
| | | 62,894 | | | |
62,825
| |
|
Multi-family units held for sale
| |
| 21,295 |
| |
|
28,504
|
|
|
Total properties
| | | 1,211,264 | | | |
1,235,322
| |
| | | |
|
| CASH AND CASH EQUIVALENTS | | | 30,349 | | | |
9,464
| |
| RESTRICTED CASH | | | 3,128 | | | |
3,585
| |
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful
accounts of $6,400 and $5,734 in 2010 and 2009, respectively
| | | 45,775 | | | |
49,678
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | | 145,352 | | | |
146,150
| |
| OTHER ASSETS | |
| 49,609 |
| |
|
47,353
|
|
| | | |
|
| TOTAL ASSETS | | $ | 1,485,477 |
| |
$
|
1,491,552
|
|
| | | |
|
LIABILITIES AND EQUITY | | | | |
| NOTES PAYABLE | | $ | 580,979 | | |
$
|
590,208
| |
| ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | | | 61,688 | | | |
56,577
| |
| DEFERRED GAIN | | | 4,393 | | | |
4,452
| |
| DEPOSITS AND DEFERRED INCOME | |
| 9,615 |
| |
|
7,465
|
|
| | | |
|
| TOTAL LIABILITIES | | | 656,675 | | | |
658,702
| |
| | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | | |
| | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | | 12,689 | | | |
12,591
| |
| | | |
|
| 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 shares issued and outstanding in
2010 and 2009
| | | 74,827 | | | |
74,827
| |
7.50% Series B cumulative redeemable preferred stock, $25
liquidation preference; 3,791,000 shares issued and outstanding in
2010 and 2009
| | | 94,775 | | | |
94,775
| |
Common stock, $1 par value, 150,000,000 shares authorized,
104,436,442 and 103,352,382 shares issued in 2010 and 2009,
respectively
| | | 104,436 | | | |
103,352
| |
|
Additional paid-in capital
| | | 667,597 | | | |
662,216
| |
|
Treasury stock at cost, 3,570,082 shares in 2010 and 2009
| | | (86,840 | ) | | |
(86,840
|
)
|
|
Accumulated other comprehensive loss on derivative instruments
| | | (9,549 | ) | | |
(9,517
|
)
|
|
Distributions in excess of net income
| |
| (61,956 | ) | |
|
(51,402
|
)
|
| | | |
|
| TOTAL STOCKHOLDERS’ INVESTMENT | | | 783,290 | | | |
787,411
| |
| | | |
|
|
Nonredeemable noncontrolling interests
| |
| 32,823 |
| |
|
32,848
|
|
| TOTAL EQUITY | |
| 816,113 |
| |
|
820,259
|
|
| | | |
|
| TOTAL LIABILITIES AND EQUITY | | $ | 1,485,477 |
| |
$
|
1,491,552
|
|
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