ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations (FFO) of $0.11 per share.
- Commenced Emory Point mixed-use project.
-
Leased 424,000 square feet of office and retail space.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended June 30, 2011.
“This was another solid quarter with continued leasing momentum,” said
Larry Gellerstedt, CEO of Cousins. “We’re seeing an overall increase in
investment opportunities and are particularly excited about our Emory
Point mixed-use development.”
Portfolio Activity
-
Leased 225,000 square feet of office space and 199,000 square feet of
retail space.
-
Office and Retail portfolios are 91% and 88% leased, respectively.
-
Subsequent to quarter end, renewed AGL Services Company for 238,000
square feet at Ten Peachtree Place and renewed Bombardier for 86,000
square feet at The Points at Waterview, extending these leases to 2026
and 2023, respectively.
Investment/Disposition Activity
-
Commenced construction on the $102 million Phase I of Emory Point in
Atlanta, a mixed-use project comprised of 443 apartment units and
80,000 square feet of retail space scheduled to open in fall 2012.
-
Sold 108 residential lots for net gains of $398,000.
Financial Results
FFO was $10.9 million, or $0.11 per share, for the second quarter of
2011 compared with $7.9 million, or $0.08 per share, for the second
quarter of 2010. FFO was $19.0 million, or $0.18 per share, for the six
months ended June 30, 2011, compared with $21.9 million, or $0.22 per
share, for the same period in 2010.
Net loss available to common stockholders was $4.7 million, or $0.05 per
share, for the second quarter of 2011 compared with net loss available
of $8.6 million, or $0.09 per share, for the second quarter of 2010. Net
loss available was $12.6 million, or $0.12 per share, for the six months
ended June 30, 2011, compared with $10.2 million, or $0.10 per share,
for the same period in 2010.
Investor Conference Call and Webcast
The Company will conduct a conference call at 1:00 p.m. (Eastern Time)
on Thursday, August 4, 2011, to discuss the results of the quarter ended
June 30, 2011. The number to call for this interactive teleconference is
(212) 231-2900.
A replay of the conference call will be available for 14 days by dialing
(402) 977-9140 and entering the passcode 21530938. The replay can be
accessed on the Company’s website, www.cousinsproperties.com,
through the “Q2 2011 Cousins Properties Incorporated Earnings Conference
Call” link on the Investor Relations page.
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 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;
potential acquisitions, new investments and/or dispositions; 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 June 30, |
| Six Months Ended June 30, |
| | | 2011 | | 2010 | | | 2011 | | 2010 |
| REVENUES: | | | | | | | | | |
|
Rental property revenues
| | $ | 36,736 | | |
$
|
35,969
| | | | $ | 72,884 | | |
$
|
70,742
| |
|
Fee income
| | | 3,435 | | | |
3,728
| | | | | 6,820 | | | |
7,272
| |
|
Third party management and leasing revenues
| | | 4,605 | | | |
4,485
| | | | | 8,693 | | | |
9,279
| |
|
Multi-family residential unit sales
| | | 7 | | | |
7,943
| | | | | 4,664 | | | |
18,089
| |
|
Residential lot and outparcel sales
| | | 80 | | | |
316
| | | | | 245 | | | |
14,135
| |
|
Other
| |
| 556 |
| |
|
171
|
| | |
| 1,069 |
| |
|
295
|
|
| | |
| 45,419 |
| |
|
52,612
|
| | |
| 94,375 |
| |
|
119,812
|
|
| | | | | | | | | |
|
| COSTS AND EXPENSES: | | | | | | | | | |
|
Rental property operating expenses
| | | 15,472 | | | |
15,246
| | | | | 29,720 | | | |
29,777
| |
|
Third party management and leasing expenses
| | | 4,080 | | | |
4,214
| | | | | 8,173 | | | |
9,172
| |
|
Multi-family residential unit cost of sales
| | | (13 | ) | | |
6,108
| | | | | 2,487 | | | |
14,078
| |
|
Residential lot and outparcel cost of sales
| | | 76 | | | |
275
| | | | | 145 | | | |
9,371
| |
|
General and administrative expenses
| | | 6,133 | | | |
6,763
| | | | | 13,533 | | | |
14,780
| |
|
Interest expense
| | | 7,358 | | | |
10,286
| | | | | 14,902 | | | |
20,067
| |
|
Reimbursed expenses
| | | 1,371 | | | |
1,398
| | | | | 2,883 | | | |
3,257
| |
|
Depreciation and amortization
| | | 13,375 | | | |
14,231
| | | | | 26,850 | | | |
27,407
| |
|
Impairment loss
| | | - | | | |
586
| | | | | 3,508 | | | |
586
| |
|
Separation expenses
| | | 77 | | | |
33
| | | | | 178 | | | |
101
| |
|
Other
| |
| 672 |
| |
|
3,002
|
| | |
| 1,534 |
| |
|
3,864
|
|
| | |
| 48,601 |
| |
|
62,142
|
| | |
| 103,913 |
| |
|
132,460
|
|
| | | | | | | | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | |
| - |
| |
|
-
|
| | |
| - |
| |
|
(592
|
)
|
| | | | | | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED
JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | | | (3,182 | ) | | |
(9,530
|
)
| | | | (9,538 | ) | | |
(13,240
|
)
|
| | | | | | | | | |
|
| (PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS | | | (27 | ) | | |
(14
|
)
| | | | 37 | | | |
1,132
| |
| | | | | | | | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | |
| 2,312 |
| |
|
2,394
|
| | |
| 4,808 |
| |
|
5,314
|
|
| | | | | | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES | | | (897 | ) | | |
(7,150
|
)
| | | | (4,693 | ) | | |
(6,794
|
)
|
| | | | | | | | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | |
| 59 |
| |
|
1,061
|
| | |
| 118 |
| |
|
1,817
|
|
| | | | | | | | | |
|
| LOSS FROM CONTINUING OPERATIONS | | | (838 | ) | | |
(6,089
|
)
| | | | (4,575 | ) | | |
(4,977
|
)
|
| | | | | | | | | |
|
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS: | | | | | | | | | |
|
Income from discontinued operations
| | | 40 | | | |
1,305
| | | | | 112 | | | |
2,373
| |
|
Loss on sale of investment properties
| |
| - |
| |
|
-
|
| | |
| (384 | ) | |
|
-
|
|
| | |
| 40 |
| |
|
1,305
|
| | |
| (272 | ) | |
|
2,373
|
|
| | | | | | | | | |
|
| NET LOSS | | | (798 | ) | | |
(4,784
|
)
| | | | (4,847 | ) | | |
(2,604
|
)
|
| NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
| (681 | ) | |
|
(584
|
)
| | |
| (1,262 | ) | |
|
(1,110
|
)
|
| | | | | | | | | |
|
| NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST | | | (1,479 | ) | | |
(5,368
|
)
| | | | (6,109 | ) | | |
(3,714
|
)
|
| | | | | | | | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | |
| (3,227 | ) | |
|
(3,227
|
)
| | |
| (6,454 | ) | |
|
(6,454
|
)
|
| | | | | | | | | |
|
| NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | | $ | (4,706 | ) | |
$
|
(8,595
|
)
| | | $ | (12,563 | ) | |
$
|
(10,168
|
)
|
| | | | | | | | | |
|
| PER COMMON SHARE INFORMATION - BASIC AND DILUTED: | | | | | | | |
|
Loss from continuing operations attributable to controlling interest
| | $ | (0.05 | ) | |
$
|
(0.10
|
)
| | | $ | (0.12 | ) | |
$
|
(0.12
|
)
|
|
Income from discontinued operations
| |
| - |
| |
|
0.01
|
| | |
| - |
| |
|
0.02
|
|
|
Net loss available to common stockholders - basic and diluted
| | $ | (0.05 | ) | |
$
|
(0.09
|
)
| | | $ | (0.12 | ) | |
$
|
(0.10
|
)
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | |
| 103,659 |
| |
|
101,001
|
| | |
| 103,588 |
| |
|
100,538
|
|
|
|
|
|
|
|
|
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|
|
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|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010 |
|
(Unaudited, in thousands, except per share amounts)
|
|
| |
| |
| |
| |
| | | | | | | |
|
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| | | | | | | |
|
| Net Loss Available to Common Stockholders | | $ | (4,706 | ) | | $ | (8,595 | ) | | $ | (12,563 | ) | | $ | (10,168 | ) |
|
Depreciation and amortization:
| | | | | | | | |
|
Consolidated properties
| | |
13,375
| | | |
14,231
| | | |
26,850
| | | |
27,407
| |
|
Discontinued properties
| | |
-
| | | |
333
| | | |
64
| | | |
1,052
| |
|
Share of unconsolidated joint ventures
| | |
2,663
| | | |
2,453
| | | |
5,346
| | | |
4,747
| |
|
Depreciation of furniture, fixtures and equipment:
| | | | | | | | |
|
Consolidated properties
| | |
(372
|
)
| | |
(462
|
)
| | |
(935
|
)
| | |
(1,029
|
)
|
|
Discontinued properties
| | |
-
| | | |
(1
|
)
| | |
-
| | | |
(5
|
)
|
|
Share of unconsolidated joint ventures
| | |
(5
|
)
| | |
(5
|
)
| | |
(10
|
)
| | |
(11
|
)
|
|
(Gain) loss on sale of investment properties:
| | | | | | | | |
|
Consolidated properties
| | |
(59
|
)
| | |
(1,061
|
)
| | |
(118
|
)
| | |
(1,817
|
)
|
|
Discontinued properties
| | |
-
| | | |
-
| | | |
384
| | | |
-
| |
|
Gain on sale of undepreciated investment properties
| |
|
-
|
| |
|
1,002
|
| |
|
-
|
| |
|
1,699
|
|
| | | | | | | |
|
| Funds From Operations Available to Common Stockholders | | $ | 10,896 |
| | $ | 7,895 |
| | $ | 19,018 |
| | $ | 21,875 |
|
| | | | | | | |
|
| | | | | | | |
|
| Per Common Share - Basic and Diluted: | | | | | | | | |
| | | | | | | |
|
| Net Loss Available | | $ | (.05 | ) | | $ | (.09 | ) | | $ | (.12 | ) | | $ | (.10 | ) |
| | | | | | | |
|
| Funds From Operations | | $ | .11 |
| | $ | .08 |
| | $ | .18 |
| | $ | .22 |
|
| | | | | | | |
|
| Weighted Average Shares - Basic | |
| 103,659 |
| |
| 101,001 |
| |
| 103,588 |
| |
| 100,538 |
|
| Weighted Average Shares - Diluted | |
| 103,684 |
| |
| 101,001 |
| |
| 103,606 |
| |
| 100,538 |
|
|
|
|
|
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.
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| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share amounts)
|
|
|
| |
| |
| |
| | | | | |
|
| | | | June 30, 2011 | |
December 31, 2010
|
ASSETS | |
(Unaudited)
| | |
| PROPERTIES: | | | | |
|
Operating properties, net of accumulated depreciation of $298,085
and $274,925 in 2011 and 2010, respectively
| | $ | 868,155 | | |
$
|
898,119
| |
|
Land held for investment or future development
| | | 120,557 | | | |
123,879
| |
|
Residential lots
| | | 63,725 | | | |
63,403
| |
|
Other
| |
| 738 |
| |
|
2,994
|
|
| |
Total properties
| | | 1,053,175 | | | |
1,088,395
| |
| | | | | |
|
| CASH AND CASH EQUIVALENTS | | | 4,349 | | | |
7,599
| |
| RESTRICTED CASH | | | 14,544 | | | |
15,521
| |
NOTES AND OTHER RECEIVABLES, net of allowance fordoubtful
accounts of $5,646 and $6,287 in 2011 and 2010, respectively | | | 50,405 | | | |
48,395
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | | 179,149 | | | |
167,108
| |
| OTHER ASSETS | |
| 35,510 |
| |
|
44,264
|
|
| | | | | |
|
| | TOTAL ASSETS | | $ | 1,337,132 |
| |
$
|
1,371,282
|
|
| | | | | |
|
LIABILITIES AND EQUITY | | | | |
| NOTES PAYABLE | | $ | 498,034 | | |
$
|
509,509
| |
| ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | | | 35,710 | | | |
32,388
| |
| DEFERRED GAIN | | | 4,098 | | | |
4,216
| |
| DEPOSITS AND DEFERRED INCOME | |
| 17,419 |
| |
|
18,029
|
|
| TOTAL LIABILITIES | | | 555,261 | | | |
564,142
| |
| | | | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | | |
| | | | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | | 9,444 | | | |
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,
107,283,901 and 106,961,959 shares issued in 2011 and 2010,
respectively
| | | 107,284 | | | |
106,962
| |
|
Additional paid-in capital
| | | 685,577 | | | |
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
| |
| (136,075 | ) | |
|
(114,196
|
)
|
| | | | | |
|
| | TOTAL STOCKHOLDERS’ INVESTMENT | | | 739,548 | | | |
760,079
| |
| | | | | |
|
|
Nonredeemable noncontrolling interests
| |
| 32,879 |
| |
|
32,772
|
|
| | TOTAL EQUITY | |
| 772,427 |
| |
|
792,851
|
|
| | | | | |
|
| | TOTAL LIABILITIES AND EQUITY | | $ | 1,337,132 |
| |
$
|
1,371,282
|
|
| | | | | |
|
| | | | | |
|
| | | | | |
|
Source: Cousins Properties Incorporated
Contact:
Cousins Properties Incorporated
Gregg D. Adzema
Executive Vice
President and Chief Financial Officer
404-407-1116
greggadzema@cousinsproperties.com
or
Cameron
Golden
Director of Investor Relations and Corporate Communications
404-407-1984
camerongolden@cousinsproperties.com