ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations (FFO) before a non-cash impairment charge was
$0.11 per share.
-
Finalized exit from residential condominium business.
-
Sold Jefferson Mill Business Park Building A.
-
Selected as the master developer for the multi-modal transit hub in
Downtown Atlanta.
-
Continued progress on predevelopment of Emory Point mixed use project.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended March 31, 2011.
“The first quarter results demonstrate the continued success of our
strategic efforts to lease vacant space and sell non-core assets as we
simplify the platform,” said Larry Gellerstedt, CEO of Cousins. “Our
leasing pipeline remains solid, and we’re excited to be returning to an
offensive mode as we move closer to starting our Emory Point project and
continue to seek additional value creation opportunities.”
Portfolio Activity
-
Leased or renewed 113,000 square feet of office space and 165,000
square feet of retail space during the quarter.
-
Office portfolio increased to 92% leased, compared with 88% in the
prior-year period.
-
Retail portfolio increased to 87% leased, compared with 85% in the
prior-year period.
-
Industrial portfolio remained 96% leased, compared with 64% in the
prior-year period.
Disposition Activity
-
Sold Jefferson Mill Business Park Building A for $22.0 million.
-
Sold final residential condominium units at 10 Terminus Place for net
gains of $2.2 million in the first quarter of 2011.
-
Sold 61 lots and 20 acres of residential land for net gains of
$246,000 in the first quarter of 2011.
Financial Results
FFO was $8.1 million, or $0.08 per share, for the first quarter of 2011
compared with $14.0 million, or $0.14 per share, for the first quarter
of 2010.
Net loss available to common stockholders (net loss available) was ($7.9
million), or ($0.08) per share, for the first quarter of 2011 compared
with net loss available of ($1.6 million), or ($0.02) per share, for the
first quarter of 2010.
FFO and net loss available for the first quarter of 2011 were affected
by a $3.5 million non-cash impairment charge on the Company’s passive
investment in a non-traded real estate investment trust. The Company’s
initial investment in this industrial/multifamily REIT was made in 2003
and the basis as of December 31, 2010, was $9.4 million. FFO and net
loss available before this charge was $0.11 and ($0.04) per share,
respectively.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time)
on Thursday, May 5, 2011, to discuss the results of the quarter ended
March 31, 2011. 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 21521383. The replay can be
accessed on the Company’s website, www.cousinsproperties.com,
through the “Q1 2011 Cousins Properties Incorporated Earnings Conference
Call” link on the Investor Relations page, as well as at http://www.videonewswire.com/event.asp?id=78870.
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 and retail 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.
The Condensed Consolidated Statements of Operations, 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 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
“Supplemental Information” and “SEC Filings” links on the “Investor
Information & Filings” link of 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.
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, 2010. 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 OPERATIONS |
|
(Unaudited, in thousands, except share and per share amounts)
|
|
|
|
|
| Three Months Ended March 31, |
| | | 2011 |
|
| 2010 |
| REVENUES: | | | | | | |
|
Rental property revenues
| | | $ | 36,148 | | | |
$
|
34,773
| |
|
Fee income
| | | | 3,385 | | | | |
3,544
| |
|
Third party management and leasing revenues
| | | | 4,088 | | | | |
4,794
| |
|
Multi-family residential unit sales
| | | | 4,657 | | | | |
10,146
| |
|
Residential lot and outparcel sales
| | | | 165 | | | | |
13,819
| |
|
Other
| | |
| 513 |
| | |
|
124
|
|
| | |
| 48,956 |
| | |
|
67,200
|
|
| | | | | |
|
| COSTS AND EXPENSES: | | | | | | |
|
Rental property operating expenses
| | | | 14,248 | | | | |
14,531
| |
|
Third party management and leasing expenses
| | | | 4,093 | | | | |
4,958
| |
|
Multi-family residential unit cost of sales
| | | | 2,500 | | | | |
7,970
| |
|
Residential lot and outparcel cost of sales
| | | | 69 | | | | |
9,096
| |
|
General and administrative expenses
| | | | 7,400 | | | | |
8,017
| |
|
Interest expense
| | | | 7,544 | | | | |
9,781
| |
|
Reimbursed expenses
| | | | 1,512 | | | | |
1,859
| |
|
Depreciation and amortization
| | | | 13,475 | | | | |
13,176
| |
|
Impairment loss
| | | | 3,508 | | | | |
-
| |
|
Separation expenses
| | | | 101 | | | | |
68
| |
|
Other
| | |
| 862 |
| | |
|
862
|
|
| | |
| 55,312 |
| | |
|
70,318
|
|
| | | | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | | |
| - |
| | |
|
(592
|
)
|
| | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED
JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | | | | (6,356 | ) | | | |
(3,710
|
)
|
| | | | | |
|
| BENEFIT FOR INCOME TAXES FROM OPERATIONS | | | | 64 | | | | |
1,146
| |
| | | | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | | |
| 2,496 |
| | |
|
2,920
|
|
| | | | | |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES | | | | (3,796 | ) | | | |
356
| |
| | | | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | | |
| 59 |
| | |
|
756
|
|
| | | | | |
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS | | | | (3,737 | ) | | | |
1,112
| |
| | | | | |
|
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS: | | | | | | |
|
Income from discontinued operations
| | | | 72 | | | | |
1,068
| |
|
Loss on sale of investment properties
| | |
| (384 | ) | | |
|
-
|
|
| | |
| (312 | ) | | |
|
1,068
|
|
| | | | | |
|
| NET INCOME (LOSS) | | | | (4,049 | ) | | | |
2,180
| |
| NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | | |
| (581 | ) | | |
|
(526
|
)
|
| | | | | |
|
| NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | | | | (4,630 | ) | | | |
1,654
| |
| | | | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | | |
| (3,227 | ) | | |
|
(3,227
|
)
|
| | | | | |
|
| NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | | | $ | (7,857 | ) | | |
$
|
(1,573
|
)
|
| | | | | |
|
| PER COMMON SHARE INFORMATION - BASIC AND DILUTED: | | | | | | |
|
Loss from continuing operations attributable to controlling interest
| | | $ | (0.07 | ) | | |
$
|
(0.03
|
)
|
|
Income from discontinued operations
| | |
| - |
| | |
|
0.01
|
|
|
Net loss available to common stockholders - basic and diluted
| | | $ | (0.08 | ) | | |
$
|
(0.02
|
)
|
| | | | | |
|
| | | | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | | |
| 103,515 |
| | |
|
100,069
|
|
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
| FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 |
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
| Three Months Ended |
| | | March 31, |
| | | 2011 |
|
| 2010 |
| | | | | |
|
| Net Loss Available to Common Stockholders | | | $ | (7,857 | ) | | | $ | (1,573 | ) |
|
Depreciation and amortization:
| | | | | | |
|
Consolidated properties
| | | |
13,475
| | | | |
13,176
| |
|
Discontinued properties
| | | |
64
| | | | |
719
| |
|
Share of unconsolidated joint ventures
| | | |
2,683
| | | | |
2,294
| |
|
Depreciation of furniture, fixtures and equipment:
| | | | | | |
|
Consolidated properties
| | | |
(563
|
)
| | | |
(567
|
)
|
|
Discontinued properties
| | | |
-
| | | | |
(4
|
)
|
|
Share of unconsolidated joint ventures
| | | |
(5
|
)
| | | |
(6
|
)
|
|
(Gain) loss on sale of investment properties:
| | | | | | |
|
Consolidated
| | | |
(59
|
)
| | | |
(756
|
)
|
|
Discontinued properties
| | | |
384
| | | | |
-
| |
|
Gain on sale of undepreciated investment properties
| | |
|
-
|
| | |
|
697
|
|
| | | | | |
|
| Funds From Operations Available to Common Stockholders | | | $ | 8,122 |
| | | $ | 13,980 |
|
| | | | | |
|
| | | | | |
|
| Per Common Share - Basic and Diluted: | | | | | | |
| | | | | |
|
| Net Loss Available | | | $ | (.08 | ) | | | $ | (.02 | ) |
| | | | | |
|
| Funds From Operations | | | $ | .08 |
| | | $ | .14 |
|
| | | | | |
|
| Weighted Average Shares-Basic | | |
| 103,515 |
| | |
| 100,069 |
|
| Weighted Average Shares-Diluted | | |
| 103,530 |
| | |
| 100,069 |
|
| | | | | | | | | |
|
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 along with other measures, to assess
performance in connection with evaluating and granting incentive
compensation to its officers and other key employees.
Management believes that FFO before certain charges provides analysts
and investors with appropriate information related to its core
operations and for comparability of the results of its operations with
other real estate companies.
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share amounts)
|
|
|
|
|
| March 31, 2011 |
|
|
December 31, 2010
|
ASSETS | | |
(Unaudited)
| | | |
| PROPERTIES: | | | | | | |
Operating properties, net of accumulated depreciation of $286,547
and $274,925 in 2011 and 2010, respectively
| | | $ | 870,723 | | | |
$
|
898,119
| |
|
Land held for investment or future development
| | | | 123,885 | | | | |
123,879
| |
|
Residential lots
| | | | 63,698 | | | | |
63,403
| |
|
Other
| | |
| 738 |
| | |
|
2,994
|
|
|
Total properties
| | | | 1,059,044 | | | | |
1,088,395
| |
| | | | | |
|
| CASH AND CASH EQUIVALENTS | | | | 5,097 | | | | |
7,599
| |
| RESTRICTED CASH | | | | 15,854 | | | | |
15,521
| |
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful
accounts of $5,728 and $6,287 in 2011 and 2010, respectively | | | | 48,414 | | | | |
48,395
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | | | 165,119 | | | | |
167,108
| |
| OTHER ASSETS | | |
| 41,925 |
| | |
|
44,264
|
|
| | | | | |
|
| TOTAL ASSETS | | | $ | 1,335,453 |
| | |
$
|
1,371,282
|
|
| | | | | |
|
LIABILITIES AND EQUITY | | | | | | |
| NOTES PAYABLE | | | $ | 496,823 | | | |
$
|
509,509
| |
| ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | | | | 26,455 | | | | |
32,388
| |
| DEFERRED GAIN | | | | 4,157 | | | | |
4,216
| |
| DEPOSITS AND DEFERRED INCOME | | |
| 17,978 |
| | |
|
18,029
|
|
| TOTAL LIABILITIES | | | | 545,413 | | | | |
564,142
| |
| | | | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | | | | |
| | | | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | | | 8,953 | | | | |
14,289
| |
| | | | | |
|
| 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
2011 and 2010
| | | | 74,827 | | | | |
74,827
| |
7.50% Series B cumulative redeemable preferred stock, $25
liquidation preference; 3,791,000 shares issued and outstanding in
2011 and 2010
| | | | 94,775 | | | | |
94,775
| |
Common stock, $1 par value, 250,000,000 shares authorized,
107,201,480 and 106,961,959 shares issued in 2011 and 2010,
respectively
| | | | 107,201 | | | | |
106,962
| |
|
Additional paid-in capital
| | | | 685,028 | | | | |
684,551
| |
|
Treasury stock at cost, 3,570,082 shares in 2011 and 2010
| | | | (86,840 | ) | | | |
(86,840
|
)
|
|
Distributions in excess of cumulative net income
| | |
| (126,706 | ) | | |
|
(114,196
|
)
|
| | | | | |
|
| TOTAL STOCKHOLDERS’ INVESTMENT | | | | 748,285 | | | | |
760,079
| |
| | | | | |
|
|
Nonredeemable noncontrolling interests
| | |
| 32,802 |
| | |
|
32,772
|
|
| TOTAL EQUITY | | |
| 781,087 |
| | |
|
792,851
|
|
| | | | | |
|
| TOTAL LIABILITIES AND EQUITY | | | $ | 1,335,453 |
| | |
$
|
1,371,282
|
|
Source: Cousins Properties Incorporated
Contact:
Cousins Properties Incorporated
Gregg D. Adzema, 404-407-1116
Executive
Vice President and Chief Financial Officer
greggadzema@cousinsproperties.com
or
Cameron
Golden, 404-407-1984
Director of Investor Relations and Corporate
Communications
camerongolden@cousinsproperties.com