ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations was $0.13 per share.
-
Same property net operating income increased 5.4% from the first
quarter of 2011.
-
Eighteen residential projects in the CL Realty and Temco joint
ventures were sold for $23.5 million.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended March 31, 2012.
“This was another solid quarter with strong operating results,” said
Larry Gellerstedt, CEO of Cousins. “We continue to successfully exit our
non-core holdings and are working diligently to recycle this capital
into attractive investment opportunities.”
Portfolio Activity
-
Leased or renewed 179,000 square feet of office space and 136,000
square feet of retail space.
Transaction Activity
-
Sold interests in 18 residential projects held by the CL Realty and
Temco joint ventures to affiliates of Forestar Group Inc., the partner
in the ventures, for $23.5 million.
-
Subsequent to quarter end, sold The Avenue Collierville for $55
million.
-
Executed contracts to sell Galleria 75 and Ten Peachtree Place, which
are expected to close during the second quarter of 2012.
Financing Activity
-
Amended the $350.0 million unsecured credit facility by, among other
things, extending the maturity date to February 28, 2016 and
decreasing the interest rate spread over LIBOR.
-
Closed a $100.0 million non-recourse, fixed-rate mortgage on 191
Peachtree Tower with a 3.35% interest rate and an October 1, 2018
maturity date.
Financial Results
FFO was $13.5 million, or $0.13 per share, for the first quarter of 2012
compared with $8.1 million, or $0.08 per share, for the first quarter of
2011.
Net loss available to common stockholders was ($13.1) million, or
($0.13) per share, for the first quarter of 2012 compared with net loss
available of ($7.9) million, or ($0.08) per share, for the first quarter
of 2011.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time)
on Thursday, May 10, 2012, to discuss the results of the quarter ended
March 31, 2012. 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 21587257. The replay can be
accessed on the Company’s website, www.cousinsproperties.com,
through the “Q1 2012 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. 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 Consolidated Statements of Operations, Consolidated Balance Sheets,
a schedule entitled Funds From Operations, which reconciles Net Income
(Loss) Available to FFO, and a schedule entitled Same Property
Information, which reconciles Rental Property Revenues and Expenses to
Same Property Net Operating Income, 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 real estate development and acquisitions; the
availability of buyers and adequate pricing if the Company intends to
liquidate certain assets; 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,
2011. 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 March 31, |
| | | 2012 |
|
| 2011 |
| REVENUES: | | | | | | |
|
Rental property revenues
| | | $ | 37,183 | | | |
$
|
32,679
| |
|
Fee income
| | | | 2,856 | | | | |
3,385
| |
|
Third party management and leasing revenues
| | | | 4,711 | | | | |
4,088
| |
|
Multi-family residential unit sales
| | | | - | | | | |
4,657
| |
|
Residential lot and outparcel sales
| | | | 949 | | | | |
165
| |
|
Other
| | |
| 1,465 |
| | |
|
513
|
|
| | |
| 47,164 |
| | |
|
45,487
|
|
| | | | | |
|
| COSTS AND EXPENSES: | | | | | | |
|
Rental property operating expenses
| | | | 14,419 | | | | |
12,886
| |
|
Third party management and leasing expenses
| | | | 4,300 | | | | |
4,093
| |
|
Multi-family residential unit cost of sales
| | | | - | | | | |
2,500
| |
|
Residential lot and outparcel cost of sales
| | | | 564 | | | | |
69
| |
|
General and administrative expenses
| | | | 6,623 | | | | |
7,400
| |
|
Interest expense
| | | | 6,268 | | | | |
7,544
| |
|
Reimbursed expenses
| | | | 1,376 | | | | |
1,512
| |
|
Depreciation and amortization
| | | | 14,136 | | | | |
12,113
| |
|
Impairment loss
| | | | 12,233 | | | | |
3,508
| |
|
Separation expenses
| | | | 213 | | | | |
101
| |
|
Other
| | |
| 698 |
| | |
|
862
|
|
| | |
| 60,830 |
| | |
|
52,588
|
|
| | | | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | | |
| (94 | ) | | |
|
-
|
|
| | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED
JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | | | | (13,760 | ) | | | |
(7,101
|
)
|
| | | | | |
|
| BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS | | | | (27 | ) | | | |
64
| |
| | | | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | | |
| 2,186 |
| | |
|
2,496
|
|
| | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES | | | | (11,601 | ) | | | |
(4,541
|
)
|
| | | | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | | |
| 57 |
| | |
|
59
|
|
| | | | | |
|
| LOSS FROM CONTINUING OPERATIONS | | | | (11,544 | ) | | | |
(4,482
|
)
|
| | | | | |
|
| INCOME FROM DISCONTINUED OPERATIONS: | | | | | | |
|
Income from discontinued operations
| | | | 104 | | | | |
817
| |
|
Gain (loss) on sale of discontinued investment properties
| | |
| 86 |
| | |
|
(384
|
)
|
| | |
| 190 |
| | |
|
433
|
|
| | | | | |
|
| NET LOSS | | | | (11,354 | ) | | | |
(4,049
|
)
|
| NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | | |
| 1,469 |
| | |
|
(581
|
)
|
| | | | | |
|
| NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST | | | | (9,885 | ) | | | |
(4,630
|
)
|
| | | | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | | |
| (3,227 | ) | | |
|
(3,227
|
)
|
| | | | | |
|
| NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | | | $ | (13,112 | ) | | |
$
|
(7,857
|
)
|
| | | | | |
|
| PER COMMON SHARE INFORMATION - BASIC AND DILUTED: | | | | | | |
|
Loss from continuing operations attributable to controlling interest
| | | $ | (0.13 | ) | | |
$
|
(0.08
|
)
|
|
Income from discontinued operations
| | |
| - |
| | |
|
-
|
|
|
Net loss available to common stockholders
| | | $ | (0.13 | ) | | |
$
|
(0.08
|
)
|
| | | | | |
|
| | | | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | | |
| 104,000 |
| | |
|
103,515
|
|
| | | | | |
|
| DIVIDENDS PER COMMON SHARE | | | $ | 0.045 |
| | |
$
|
0.045
|
|
| | | | | | | | | |
|
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 |
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
| Three Months Ended |
| | | March 31, |
| | | 2012 |
|
| 2011 |
| | | | | |
|
| Net Loss Available to Common Stockholders | | | $ | (13,112 | ) | | | $ | (7,857 | ) |
|
Depreciation and amortization:
| | | | | | |
|
Consolidated properties
| | | |
14,136
| | | | |
12,113
| |
|
Discontinued properties
| | | |
120
| | | | |
1,426
| |
|
Share of unconsolidated joint ventures
| | | |
2,666
| | | | |
2,683
| |
|
Depreciation of furniture, fixtures and equipment:
| | | | | | |
|
Consolidated properties
| | | |
(364
|
)
| | | |
(563
|
)
|
|
Share of unconsolidated joint ventures
| | | |
(5
|
)
| | | |
(5
|
)
|
Impairment loss on depreciable investment property net of amounts
attributable to noncontrolling interests
| | | |
10,190
| | | | |
-
| |
|
(Gain) loss on sale of investment properties:
| | | | | | |
|
Consolidated
| | | |
(57
|
)
| | | |
(59
|
)
|
|
Discontinued properties
| | |
|
(86
|
)
| | |
|
384
|
|
| | | | | |
|
| Funds From Operations Available to Common Stockholders | | | $ | 13,488 |
| | | $ | 8,122 |
|
| | | | | |
|
| | | | | |
|
| Per Common Share - Basic and Diluted: | | | | | | |
| | | | | |
|
| Net Loss Available | | | $ | (.13 | ) | | | $ | (.08 | ) |
| | | | | |
|
| Funds From Operations | | | $ | .13 |
| | | $ | .08 |
|
| | | | | |
|
| Weighted Average Shares-Basic | | |
| 104,000 |
| | |
| 103,515 |
|
| Weighted Average Shares-Diluted | | |
| 104,000 |
| | |
| 103,530 |
|
|
|
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, impairment losses on depreciable investment
property 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, as a performance
measure for 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)
|
|
|
|
|
| March 31, 2012 |
|
| December 31, 2011 |
ASSETS | | |
(unaudited)
| | | |
| PROPERTIES: | | | | | | |
Operating properties, net of accumulated depreciation of $300,260
and $289,473 in 2012 and 2011, respectively
| | | $ | 854,179 | | | |
$
|
884,652
| |
Operating property held for sale, net of accumulated depreciation
of $2,522 in 2012
| | | | 7,743 | | | | |
-
| |
|
Projects under development
| | | | 15,008 | | | | |
11,325
| |
|
Land held
| | | | 54,132 | | | | |
54,132
| |
|
Residential lots
| | | | 12,657 | | | | |
13,195
| |
|
Other
| | |
| 637 |
| | |
|
637
|
|
|
Total properties
| | | | 944,356 | | | | |
963,941
| |
| | | | | |
|
| CASH AND CASH EQUIVALENTS | | | | 4,002 | | | | |
4,858
| |
| RESTRICTED CASH | | | | 4,122 | | | | |
4,929
| |
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful
accounts of $2,738 and $5,100 in 2012 and 2011, respectively | | | | 48,864 | | | | |
48,500
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | | | 141,180 | | | | |
160,587
| |
| OTHER ASSETS | | |
| 57,110 |
| | |
|
52,720
|
|
| | | | | |
|
| TOTAL ASSETS | | | $ | 1,199,634 |
| | |
$
|
1,235,535
|
|
| | | | | |
|
LIABILITIES AND EQUITY | | | | | | |
| NOTES PAYABLE | | | $ | 529,168 | | | |
$
|
539,442
| |
| ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | | | | 30,936 | | | | |
36,075
| |
| DEFERRED GAIN | | | | 3,921 | | | | |
3,980
| |
| DEPOSITS AND DEFERRED INCOME | | |
| 15,263 |
| | |
|
15,880
|
|
| TOTAL LIABILITIES | | | | 579,288 | | | | |
595,377
| |
| | | | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | | | | |
| | | | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | | | 295 | | | | |
2,763
| |
| | | | | |
|
| 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
2012 and 2011
| | | | 74,827 | | | | |
74,827
| |
7.50% Series B cumulative redeemable preferred stock, $25
liquidation preference; 3,791,000 shares issued and outstanding in
2012 and 2011
| | | | 94,775 | | | | |
94,775
| |
Common stock, $1 par value, 250,000,000 shares authorized,
107,709,513 and 107,272,078 shares issued in 2012 and 2011,
respectively
| | | | 107,710 | | | | |
107,272
| |
|
Additional paid-in capital
| | | | 687,809 | | | | |
687,835
| |
|
Treasury stock at cost, 3,570,082 shares in 2012 and 2011
| | | | (86,840 | ) | | | |
(86,840
|
)
|
|
Distributions in excess of cumulative net income
| | |
| (291,976 | ) | | |
|
(274,177
|
)
|
| | | | | |
|
| TOTAL STOCKHOLDERS’ INVESTMENT | | | | 586,305 | | | | |
603,692
| |
| | | | | |
|
|
Nonredeemable noncontrolling interests
| | |
| 33,746 |
| | |
|
33,703
|
|
| TOTAL EQUITY | | |
| 620,051 |
| | |
|
637,395
|
|
| | | | | |
|
| TOTAL LIABILITIES AND EQUITY | | | $ | 1,199,634 |
| | |
$
|
1,235,535
|
|
| | | | | | | | | |
|
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| SAME PROPERTY INFORMATION |
| FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011 |
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
| Three Months Ended |
| | | March 31, |
| | | 2012 |
|
| 2011 |
| | | | | |
|
| Net Operating Income - Consolidated Properties | | | | | | |
|
Rental property revenues
| | |
$
|
37,183
| | |
$
|
32,679
|
|
Rental property expenses
| | |
|
14,419
| | |
|
12,886
|
| Net Operating Income - Consolidated Properties | | | | 22,764 | | | | 19,793 |
| | | | | |
|
| Net Operating Income - Discontinued Operations | | | | | | |
|
Rental property revenues
| | | |
309
| | | |
3,614
|
|
Rental property expenses
| | |
|
85
| | |
|
1,371
|
| Net Operating Income - Discontinued Operations | | | | 224 | | | | 2,243 |
| | | | | |
|
| Net Operating Income - Unconsolidated Joint Ventures | | | | 6,322 | | | | 6,052 |
| | |
| | |
|
| Total Net Operating Income | | | $ | 29,310 | | | $ | 28,088 |
| | | | | |
|
| Net Operating Income | | | | | | |
|
Same property
| | | |
26,858
| | | |
25,488
|
|
Non-same property
| | |
|
2,452
| | |
|
2,600
|
| Net Operating Income | | | $ | 29,310 | | | $ | 28,088 |
|
|
Net Operating Income is used by industry analysts, investors and
Company management to measure operating performance of the
Company’s properties. Net Operating Income which is rental
property revenues less rental property operating expenses, like
FFO, excludes certain components from net income in order to
provide results that are more closely related to a property’s
results of operations. Certain items, such as interest expense,
while included in FFO and net income, do not affect the operating
performance of a real estate asset and are often incurred at the
corporate level as opposed to the property level. As a result,
management uses only those income and expense items that are
incurred at the property level to evaluate a property’s
performance. Depreciation and amortization are also excluded from
Net Operating Income for the reasons described under FFO
above. Additionally, appraisals of real estate are based on the
value of an income stream before interest and
depreciation. Same-Property Net Operating Income include those
office and retail properties that have been fully operational in
each of the comparable reporting periods. Same-Property Net
Operating Income allows analysts, investors and management to
analyze continuing operations and evaluate the growth trend of the
Company’s portfolio.
|
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