ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations (FFO) of $0.14 per share.
-
Leased or renewed 787,000 square feet of office and retail.
- Commenced Mahan Village retail development.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended September 30, 2011.
“We were very pleased with our third quarter operating performance,”
said Larry Gellerstedt, CEO of Cousins. “Our team continues to deliver
strong results, particularly on the leasing front, as we continue to
simplify the platform and seek attractive value creation opportunities.”
Portfolio Activity
-
Leased or renewed 420,000 square feet of office space and 367,000
square feet of retail space.
-
Office portfolio remained 91% leased and Retail portfolio increased to
89% leased.
Transaction Activity
-
Commenced construction of Mahan Village, a 147,000-square-foot,
Publix-anchored shopping center in Tallahassee, Florida.
-
Sold One Georgia Center, a 376,000-square-foot office building in
Atlanta, Georgia, for $48.6 million, generating a gain, net of
noncontrolling interest, of $1.2 million.
-
Sold 126 residential lots for net gains of $519,000.
-
Subsequent to quarter end, placed King Mill Distribution Park Building
3, a 796,000-square-foot industrial building in Atlanta, Georgia,
under contract for sale. This transaction is expected to close in the
fourth quarter.
Financial Results
FFO was $14.3 million, or $0.14 per share, for the third quarter of 2011
compared with $886,000, or $0.01 per share, for the third quarter of
2010. FFO was $33.3 million, or $0.32 per share, for the nine months
ended September 30, 2011, compared with $22.8 million, or $0.23 per
share, for the same period in 2010.
Net income available to common stockholders was $188,000, or $0.00 per
share, for the third quarter of 2011 compared with net loss available of
($8.4) million, or ($0.08) per share, for the third quarter of 2010. Net
loss available was ($12.4) million, or ($0.12) per share, for the nine
months ended September 30, 2011, compared with ($18.6) million, or
($0.18) per share, for the same period in 2010.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time)
on Thursday, November 3, 2011, to discuss the results of the quarter
ended September 30, 2011. 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 21539337. The replay can be
accessed on the Company’s website, www.cousinsproperties.com,
through the “Q3 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 or changes in Company
business and financial strategy; leasing risks; potential acquisitions,
new investments and/or dispositions; the failure of purchase, sale or
other contracts to ultimately close; 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 per share amounts)
|
|
| |
| |
| | |
| |
| |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, |
| | | 2011 | | 2010 | | | 2011 | | 2010 |
| REVENUES: | | | | | | | | | |
|
Rental property revenues
| | $ | 35,268 | | |
$
|
33,840
| | | | $ | 104,094 | | |
$
|
100,630
| |
|
Fee income
| | | 3,909 | | | |
3,966
| | | | | 10,729 | | | |
11,238
| |
|
Third party management and leasing revenues
| | | 5,398 | | | |
4,724
| | | | | 14,091 | | | |
14,003
| |
|
Multi-family residential unit sales
| | | - | | | |
6,637
| | | | | 4,664 | | | |
24,726
| |
|
Residential lot and outparcel sales
| | | 165 | | | |
630
| | | | | 410 | | | |
14,765
| |
|
Other
| |
| 448 |
| |
|
245
|
| | |
| 1,517 |
| |
|
540
|
|
| | |
| 45,188 |
| |
|
50,042
|
| | |
| 135,505 |
| |
|
165,902
|
|
| | | | | | | | | |
|
| COSTS AND EXPENSES: | | | | | | | | | |
|
Rental property operating expenses
| | | 14,968 | | | |
14,150
| | | | | 42,705 | | | |
42,029
| |
|
Third party management and leasing expenses
| | | 4,241 | | | |
4,122
| | | | | 12,414 | | | |
13,294
| |
|
Multi-family residential unit cost of sales
| | | - | | | |
5,190
| | | | | 2,487 | | | |
19,268
| |
|
Residential lot and outparcel cost of sales
| | | 158 | | | |
549
| | | | | 303 | | | |
9,920
| |
|
General and administrative expenses
| | | 4,295 | | | |
6,172
| | | | | 17,828 | | | |
20,952
| |
|
Interest expense
| | | 6,601 | | | |
8,702
| | | | | 21,503 | | | |
28,769
| |
|
Reimbursed expenses
| | | 1,866 | | | |
1,392
| | | | | 4,749 | | | |
4,649
| |
|
Depreciation and amortization
| | | 12,891 | | | |
13,115
| | | | | 38,310 | | | |
39,094
| |
|
Impairment losses
| | | - | | | |
-
| | | | | 3,508 | | | |
586
| |
|
Separation expenses
| | | 15 | | | |
202
| | | | | 193 | | | |
303
| |
|
Other
| |
| 790 |
| |
|
909
|
| | |
| 2,324 |
| |
|
4,773
|
|
| | |
| 45,825 |
| |
|
54,503
|
| | |
| 146,324 |
| |
|
183,637
|
|
| | | | | | | | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | |
| (74 | ) | |
|
(9,235
|
)
| | |
| (74 | ) | |
|
(9,827
|
)
|
| | | | | | | | | |
|
| LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, | | | | | | | | | |
| UNCONSOLIDATED JOINT VENTURES AND SALE OF | | | | | | | | | |
| INVESTMENT PROPERTIES | | | (711 | ) | | |
(13,696
|
)
| | | | (10,893 | ) | | |
(27,562
|
)
|
| | | | | | | | | |
|
| (PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS | | | 180 | | | |
(25
|
)
| | | | 217 | | | |
1,107
| |
| | | | | | | | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | |
| 2,660 |
| |
|
2,179
|
| | |
| 7,468 |
| |
|
7,493
|
|
| | | | | | | | | |
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN | | | | | | | | | |
| ON SALE OF INVESTMENT PROPERTIES | | | 2,129 | | | |
(11,542
|
)
| | | | (3,208 | ) | | |
(18,962
|
)
|
| | | | | | | | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | |
| 59 |
| |
|
58
|
| | |
| 177 |
| |
|
1,875
|
|
| | | | | | | | | |
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS | | | 2,188 | | | |
(11,484
|
)
| | | | (3,031 | ) | | |
(17,087
|
)
|
| | | | | | | | | |
|
| INCOME FROM DISCONTINUED OPERATIONS: | | | | | | | | | |
|
Income from discontinued operations
| | | 597 | | | |
452
| | | | | 1,353 | | | |
3,451
| |
|
Gain on sale of investment properties
| |
| 2,821 |
| |
|
6,572
|
| | |
| 2,437 |
| |
|
6,572
|
|
| | |
| 3,418 |
| |
|
7,024
|
| | |
| 3,790 |
| |
|
10,023
|
|
| | | | | | | | | |
|
| NET INCOME (LOSS) | | | 5,606 | | | |
(4,460
|
)
| | | | 759 | | | |
(7,064
|
)
|
| NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
| (2,192 | ) | |
|
(696
|
)
| | |
| (3,454 | ) | |
|
(1,806
|
)
|
| | | | | | | | | |
|
| NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | | | 3,414 | | | |
(5,156
|
)
| | | | (2,695 | ) | | |
(8,870
|
)
|
| | | | | | | | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | |
| (3,226 | ) | |
|
(3,226
|
)
| | |
| (9,680 | ) | |
|
(9,680
|
)
|
| | | | | | | | | |
|
| NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | | $ | 188 |
| |
$
|
(8,382
|
)
| | | $ | (12,375 | ) | |
$
|
(18,550
|
)
|
| | | | | | | | | |
|
| PER COMMON SHARE INFORMATION - BASIC AND DILUTED: | | | | | | | | | |
|
Loss from continuing operations attributable to controlling interest
| | $ | (0.03 | ) | |
$
|
(0.15
|
)
| | | $ | (0.16 | ) | |
$
|
(0.28
|
)
|
|
Income from discontinued operations
| |
| 0.03 |
| |
|
0.07
|
| | |
| 0.04 |
| |
|
0.10
|
|
|
Net income (loss) available to common stockholders
| | $ | 0.00 |
| |
$
|
(0.08
|
)
| | | $ | (0.12 | ) | |
$
|
(0.18
|
)
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | |
| 103,715 |
| |
|
101,893
|
| | |
| 103,631 |
| |
|
100,995
|
|
| | | | | | | | | |
|
| DIVIDENDS DECLARED PER COMMON SHARE | | $ | 0.045 |
| |
$
|
0.09
|
| | | $ | 0.135 |
| |
$
|
0.27
|
|
|
| |
| |
| |
| |
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
|
(Unaudited, in thousands, except per share amounts)
|
| | | | | | | |
|
| | | | | | | |
|
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| | | | | | | |
|
Net Income (Loss) Available to Common Stockholders | | $ | 188 | | | $ | (8,382 | ) | | $ | (12,375 | ) | | $ | (18,550 | ) |
|
Depreciation and amortization:
| | | | | | | | |
|
Consolidated properties
| | |
12,891
| | | |
13,115
| | | |
38,310
| | | |
39,094
| |
|
Discontinued properties
| | |
478
| | | |
881
| | | |
1,973
| | | |
3,361
| |
|
Share of unconsolidated joint ventures
| | |
2,444
| | | |
2,349
| | | |
7,790
| | | |
7,097
| |
Depreciation of furniture, fixtures and equipment:
| | | | | | | | |
|
Consolidated properties
| | |
(388
|
)
| | |
(441
|
)
| | |
(1,323
|
)
| | |
(1,470
|
)
|
|
Discontinued properties
| | |
-
| | | |
-
| | | |
-
| | | |
(5
|
)
|
|
Share of unconsolidated joint ventures
| | |
(5
|
)
| | |
(5
|
)
| | |
(15
|
)
| | |
(17
|
)
|
|
Gain on sale of investment properties:
| | | | | | | | |
|
Consolidated
| | |
(59
|
)
| | |
(58
|
)
| | |
(177
|
)
| | |
(1,875
|
)
|
Discontinued properties, net of noncontrolling interest
| | |
(1,240
|
)
| | |
(6,572
|
)
| | |
(856
|
)
| | |
(6,572
|
)
|
|
Gain (loss) on sale of undepreciated investment properties
| |
|
-
|
| |
|
(1
|
)
| |
|
-
|
| |
|
1,698
|
|
| | | | | | | |
|
| Funds From Operations Available to Common Stockholders | | $ | 14,309 |
| | $ | 886 |
| | $ | 33,327 |
| | $ | 22,761 |
|
| | | | | | | |
|
| | | | | | | |
|
| Per Common Share - Basic and Diluted: | | | | | | | | |
| | | | | | | |
|
| Net Income (Loss) Available | | $ | .00 |
| | $ | (.08 | ) | | $ | (.12 | ) | | $ | (.18 | ) |
| | | | | | | |
|
| Funds From Operations | | $ | .14 |
| | $ | .01 |
| | $ | .32 |
| | $ | .23 |
|
| | | | | | | |
|
| Weighted Average Shares - Basic | |
| 103,715 |
| |
| 101,893 |
| |
| 103,631 |
| |
| 100,995 |
|
| Weighted Average Shares - Diluted | |
| 103,718 |
| |
| 101,893 |
| |
| 103,642 |
| |
| 100,995 |
|
| | | | | | | |
|
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.
|
| |
| |
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share amounts)
|
|
|
| | | | |
| | | | |
|
| | | September 30, 2011 | | December 31, 2010 |
ASSETS |
(Unaudited)
| | |
| PROPERTIES: | | | |
|
Operating properties, net of accumulated depreciation
| | | |
|
of $286,399 and $274,925 in 2011 and 2010, respectively
| $ | 826,015 | | |
$
|
898,119
| |
|
Projects under development
| | 8,646 | | | |
-
| |
|
Land held for investment or future development
| | 115,521 | | | |
123,879
| |
|
Residential lots
| | 63,835 | | | |
63,403
| |
|
Other
|
| 738 |
| |
|
2,994
|
|
| |
Total properties
| | 1,014,755 | | | |
1,088,395
| |
| | | | |
|
| CASH AND CASH EQUIVALENTS | | 5,634 | | | |
7,599
| |
| RESTRICTED CASH | | 5,514 | | | |
15,521
| |
| NOTES AND OTHER RECEIVABLES, net of allowance for | | | |
| doubtful accounts of $5,423 and $6,287 in 2011 and 2010,
respectively | | 50,610 | | | |
48,395
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | 181,947 | | | |
167,108
| |
| OTHER ASSETS |
| 35,916 |
| |
|
44,264
|
|
| | | | |
|
| | TOTAL ASSETS | $ | 1,294,376 |
| |
$
|
1,371,282
|
|
| | | | |
|
LIABILITIES AND EQUITY | | | |
| NOTES PAYABLE | $ | 462,134 | | |
$
|
509,509
| |
| ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | | 30,732 | | | |
32,388
| |
| DEFERRED GAIN | | 4,039 | | | |
4,216
| |
| DEPOSITS AND DEFERRED INCOME |
| 16,766 |
| |
|
18,029
|
|
| TOTAL LIABILITIES | | 513,671 | | | |
564,142
| |
| | | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | |
| | | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | 9,386 | | | |
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,
107,283,665 and
| | |
|
106,961,959 shares issued in 2011 and 2010, respectively
| | 107,284 | | | |
106,962
| |
|
Additional paid-in capital
| | 686,108 | | | |
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
|
| (140,553 | ) | |
|
(114,196
|
)
|
| | | | |
|
| | TOTAL STOCKHOLDERS’ INVESTMENT | | 735,601 | | | |
760,079
| |
| | | | |
|
|
Nonredeemable noncontrolling interests
|
| 35,718 |
| |
|
32,772
|
|
| | TOTAL EQUITY |
| 771,319 |
| |
|
792,851
|
|
| | | | |
|
| | TOTAL LIABILITIES AND EQUITY | $ | 1,294,376 |
| |
$
|
1,371,282
|
|
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
Source: Cousins Properties Incorporated