ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the three months and year ended December 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") for the
fourth quarter of 2009 was $11.5 million, or $0.11 per share, before
separation and non-cash impairment and valuation charges discussed
below, compared with FFO of $10.2 million, or $0.20 per share, for the
fourth quarter of 2008. FFO was $50.1 million, or $0.77 per share,
before such charges for the year ended December 31, 2009, compared with
$61.0 million, or $1.18 per share, for the same period in 2008.
Net Income (Loss) Available to Common Stockholders ("Net Income (Loss)
Available") was $(3.6) million, or $(0.04) per share, before such
separation and non-cash impairment and valuation charges for the fourth
quarter of 2009 compared with $(4.1) million, or $(0.08) per share, for
the fourth quarter of 2008. Net Income Available was $156.4 million, or
$2.39 per share, before such charges for the year ended December 31,
2009, compared with $7.6 million, or $0.15 per share, for the same
period in 2008. The Company recorded $137.9 million of separation and
non-cash impairment and valuation charges during the second and third
quarters of 2009 and $4.2 million of such charges during the fourth
quarter of 2009.
Including the separation and non-cash impairment and valuation charges,
FFO was $7.3 million, or $0.07 per share, for the fourth quarter of 2009
and a loss of $(92.0) million, or $(1.40) per share, for the year ended
December 31, 2009. Net Loss Available, after such separation and
non-cash charges, was $(7.8) million, or $(0.08) per share, for the
fourth quarter of 2009 and Net Income Available was $14.4 million, or
$0.22 per share, for the year ended December 31, 2009.
A reconciliation of FFO and Net Income (Loss) Available before
separation and non-cash impairment and valuation charges is as follows:
Quarter Ended Year Ended
December 31, 2009 December 31, 2009
$(000) Per Share $(000) Per Share
FFO Before Certain Charges $11,496 $0.11 $50,095 $0.77
Separation and Non-Cash Impairment
and Valuation Charges:
Impairment on Terminus 200 - - (38,947 ) (0.60 )
Impairment on 10 Terminus - - (34,900 ) (0.53 )
Impairment on Investments at Temco
and
CL Realty - - (30,250 ) (0.46 )
Valuation Allowance on Deferred - - (15,907 ) (0.24 )
Tax Asset
Write-off of Predevelopment (4,017 ) (0.04 ) (7,117 ) (0.11 )
Projects
Impairment on Glenmore Garden - - (6,065 ) (0.09 )
Villas
Impairment on Airplane - - (4,012 ) (0.06 )
Separation Charges (163 ) - (3,257 ) (0.05 )
Impairment on Note Receivable - - (1,600 ) (0.03 )
Total (4,180 ) (0.04 ) (142,055 ) (2.17 )
FFO $7,316 $0.07 ($91,960 ) ($1.40 )
Net Income (Loss) Available Before ($3,602 ) ($0.04 ) $156,443 $2.39
Certain Charges
Separation and Non-Cash Impairment (4,180 ) (0.04 ) (142,055 ) (2.17 )
and Valuation Charges
Net Income (Loss) Available ($7,782 ) ($0.08 ) $14,388 $0.22
Fourth quarter highlights of the Company included the following:
-- Closed the sale of 35 units at 10 Terminus and 23 residential units at
60 North Market and recognized approximately $3.4 million of income and
FFO from these closings.
-- Executed or renewed leases covering approximately 190,000 square feet of
office space and 191,000 square feet of retail space.
-- Increased the Briggs & Stratton Corporation industrial lease at King
Mill Distribution Park by 156,000 square feet and extended the term on
its existing 521,000-square-foot lease to March 2015.
At December 31, 2009, the Company's portfolio of operational office
buildings was 87% leased, its portfolio of operational retail centers
was 84% leased and its operational industrial buildings were 51% leased.
"2009 was a challenging year for most companies, and Cousins was not
immune from the effects of the difficult economic conditions," said
Larry Gellerstedt, CEO of Cousins. "In the midst of this environment,
Cousins ended the year in a better position. Compared with a year ago,
we have a stronger balance sheet and a leaner organization combined with
a team that is focused on executing the fundamentals of our business -
leasing, sales and generating fees. This focus explains the positive
momentum we generated in sales of condominium units in the fourth
quarter and our success in maintaining or increasing occupancy at our
office, retail and industrial centers. In 2010, we expect to continue to
strengthen our existing assets and explore the additional opportunities
presented by this economy."
The Condensed Consolidated Statements of Income, Condensed Consolidated
Balance Sheets and a schedule entitled Funds From Operations, which
reconciles Net Income (Loss) Available to FFO, are attached to this
press release. More detailed information on Net Income (Loss) Available
and FFO results is included in the "Net Income (Loss) 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 10:00 a.m. (Eastern Time)
on Tuesday, February 9, 2010, to discuss the results of the quarter
ended December 31, 2009. The number to call for this interactive
teleconference is (212) 231-2921. A replay of the conference call will
be available for 14 days by dialing (402) 977-9140 and entering the
passcode 21455300. The replay can be accessed on the Company's website, www.cousinsproperties.com,
through the "Q4 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, 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, 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 and
condominium 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 and the Company's Current Report on Form 8-K filed on
September 14, 2009. 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 Years Ended
December 31, December 31,
2009 2008 2009 2008
REVENUES:
Rental property revenues $ 36,553 $ 38,050 $ 149,789 $ 147,394
Fee income 8,080 10,566 33,806 47,662
Multi-family residential 20,428 2,985 30,841 8,444
unit sales
Residential lot and 395 247 7,421 6,993
outparcel sales
Interest and other 79 867 3,025 4,158
65,535 52,715 224,882 214,651
COSTS AND EXPENSES:
Rental property operating 16,691 13,944 66,565 56,607
expenses
General and administrative 5,402 8,616 33,948 40,988
expenses
Separation expenses 163 825 3,257 1,186
Reimbursed general and 3,269 4,534 15,506 16,279
administrative expenses
Depreciation and 13,528 15,777 55,833 52,925
amortization
Multi-family residential 17,072 2,615 25,629 7,330
unit cost of sales
Residential lot and 291 81 5,023 3,776
outparcel cost of sales
Interest expense 9,610 10,804 41,393 33,151
Impairment loss - 2,100 40,512 2,100
Other 5,442 1,770 13,143 6,049
71,468 61,066 300,809 220,391
GAIN (LOSS) ON EXTINGUISHMENT
OF DEBT AND INTEREST RATE (2,766 ) - 9,732 -
SWAP
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE TAXES,
UNCONSOLIDATED JOINT VENTURES (8,699 ) (8,351 ) (66,195 ) (5,740 )
AND SALE OF INVESTMENT
PROPERTIES
BENEFIT (PROVISION) FOR 3,065 4,293 (4,341 ) 8,770
INCOME TAXES FROM OPERATIONS
INCOME (LOSS) FROM
UNCONSOLIDATED JOINT
VENTURES:
Equity in net income (loss)
from unconsolidated joint 1,698 1,168 (17,639 ) 9,721
ventures
Impairment loss on
investment in unconsolidated - - (51,058 ) -
joint ventures
1,698 1,168 (68,697 ) 9,721
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE GAIN ON (3,936 ) (2,890 ) (139,233 ) 12,751
SALE OF INVESTMENT PROPERTIES
GAIN (LOSS) ON SALE OF (4 ) 408 168,637 10,799
INVESTMENT PROPERTIES
INCOME (LOSS) FROM CONTINUING (3,940 ) (2,482 ) 29,404 23,550
OPERATIONS
DISCONTINUED OPERATIONS
Income (loss) from - 82 (4 ) (1,097 )
discontinued operations
Gain (loss) on sale of (6 ) 2,472 147 2,472
investment properties
(6 ) 2,554 143 1,375
NET INCOME (LOSS) (3,946 ) 72 29,547 24,925
NET INCOME ATTRIBUTABLE TO (611 ) (690 ) (2,252 ) (2,378 )
NONCONTROLLING INTERESTS
NET INCOME (LOSS)
ATTRIBUTABLE TO CONTROLLING (4,557 ) (618 ) 27,295 22,547
INTEREST
DIVIDENDS TO PREFERRED (3,225 ) (3,520 ) (12,907 ) (14,957 )
STOCKHOLDERS
NET INCOME (LOSS) AVAILABLE $ (7,782 ) $ (4,138 ) $ 14,388 $ 7,590
TO COMMON STOCKHOLDERS
PER COMMON SHARE INFORMATION
- BASIC:
Income (loss) from $ (0.08 ) $ (0.13 ) $ 0.22 $ 0.12
continuing operations
Income (loss) from - 0.05 - 0.03
discontinued operations
Basic net income (loss)
available to common $ (0.08 ) $ (0.08 ) $ 0.22 $ 0.15
stockholders
PER COMMON SHARE INFORMATION
- DILUTED:
Income (loss) from $ (0.08 ) $ (0.13 ) $ 0.22 $ 0.12
continuing operations
Income (loss) from - 0.05 - 0.03
discontinued operations
Diluted net income (loss)
available to common $ (0.08 ) $ (0.08 ) $ 0.22 $ 0.15
stockholders
DIVIDENDS DECLARED PER COMMON $ 0.09 $ 0.25 $ 0.74 $ 1.36
SHARE
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2009 AND 2008
(Unaudited, in thousands, except per share amounts)
Three Months Ended Years Ended
December 31, December 31,
2009 2008 2009 2008
Net Income (Loss) Available $ (7,782 ) $ (4,138 ) $ 14,388 $ 7,590
to Common Stockholders
Depreciation and
amortization:
Consolidated properties 13,528 15,777 55,833 52,925
Discontinued properties - - - 486
Share of unconsolidated joint 2,276 2,010 8,800 6,495
ventures
Depreciation of furniture,
fixtures and equipment and
amortization of specifically
identifiable intangible
assets:
Consolidated properties (643 ) (1,004 ) (3,382 ) (3,724 )
Discontinued properties - - - (19 )
Share of unconsolidated joint (12 ) (1 ) (46 ) (79 )
ventures
(Gain) loss on sale of
investment properties, net of
applicable income tax
provision:
Consolidated 4 (408 ) (168,637 ) (10,799 )
Discontinued properties 6 (2,472 ) (147 ) (2,472 )
Share of unconsolidated joint - - (12 ) -
ventures
Gain (loss) on sale of
undepreciated investment (61 ) 388 1,243 10,611
properties
Funds From Operations
Available to Common $ 7,316 $ 10,152 $ (91,960 ) $ 61,014
Stockholders
Per Common Share - Basic:
Net Income (Loss) Available $ (.08 ) $ (.08 ) $ .22 $ .15
Funds From Operations $ .07 $ .20 $ (1.40 ) $ 1.19
Weighted Average Shares-Basic 99,155 51,377 65,495 51,331
Per Common Share - Diluted:
Net Income (Loss) Available $ (.08 ) $ (.08 ) $ .22 $ .15
Funds From Operations $ .07 $ .20 $ (1.40 ) $ 1.18
Weighted Average 99,155 51,377 65,495 51,728
Shares-Diluted
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 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)
December 31,
2009 2008
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation
of $233,091 and $182,050 in 2009 and 2008, $ 1,006,760 $ 853,450
respectively
Projects under development - 172,582
Land held for investment or future development 137,233 115,862
Residential lots 62,825 59,197
Multi-family units held for sale 28,504 70,658
Total properties 1,235,322 1,271,749
CASH AND CASH EQUIVALENTS 9,464 82,963
RESTRICTED CASH 3,585 3,636
NOTES AND OTHER RECEIVABLES,net of allowance for
doubtful accounts of $5,734 and $2,764 in 2009 and 49,678 51,267
2008, respectively
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 146,150 200,850
OTHER ASSETS 47,353 83,330
TOTAL ASSETS $ 1,491,552 $ 1,693,795
LIABILITIES AND STOCKHOLDERS' INVESTMENT
NOTES PAYABLE $ 590,208 $ 942,239
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 56,577 65,026
DEFERRED GAIN 4,452 171,838
DEPOSITS AND DEFERRED INCOME 7,465 6,485
TOTAL LIABILITIES 658,702 1,185,588
COMMITMENTS AND CONTINGENT LIABILITIES
REDEEMABLE NONCONTROLLING INTERESTS 12,591 3,945
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 74,827 74,827
issued and outstanding in 2009 and 2008
7.50% Series B cumulative redeemable preferred
stock, $25 liquidation preference; 3,791,000 shares 94,775 94,775
issued and outstanding in 2009 and 2008
Common stock, $1 par value, 150,000,000 shares
authorized, 103,352,382 and 54,922,173 shares issued 103,352 54,922
in 2009 and 2008, respectively
Additional paid-in capital 662,216 368,829
Treasury stock at cost, 3,570,082 shares in 2009 and (86,840) (86,840)
2008
Accumulated other comprehensive loss on derivative (9,517) (16,601)
instrument
Distributions in excess of net income (51,402) (23,189)
TOTAL STOCKHOLDERS' INVESTMENT 787,411 466,723
Nonredeemable noncontrolling interests 32,848 37,539
TOTAL EQUITY 820,259 504,262
TOTAL LIABILITIES AND EQUITY $ 1,491,552 $ 1,693,795
Source: Cousins Properties Incorporated
Contact: Cousins Properties Incorporated
James A. Fleming
Executive Vice President and Chief Financial Officer
404-407-1150
jimfleming@cousinsproperties.com
or
Cameron Golden
Director of Investor Relations and Corporate Communications
404-407-1984
camerongolden@cousinsproperties.com
Web site address:www.cousinsproperties.com