ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations was $0.13 per share.
-
Same property net operating income increased 4.6% from the first six
months of 2011.
-
Sold three properties generating $68.8 million in net proceeds to the
Company.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended June 30, 2012.
“It was another solid quarter, with the disposition of three non-core
assets and positive leasing progress for the operating portfolio,” said
Larry Gellerstedt, CEO of Cousins. “Consistent with our strategy, we’ll
continue to simplify the platform and focus on recycling capital into
attractive, targeted investment opportunities.”
Portfolio Activity
-
Leased or renewed 186,000 square feet of office space and 84,000
square feet of retail space.
-
Same property percent leased increased to 91% for office properties.
-
Same property percent leased increased to 88% for retail properties.
Transaction Activity
-
Sold Galleria 75 for $9.2 million.
-
Sold The Avenue Collierville for $55.0 million generating $54.6
million in net proceeds to the Company.
- Sold Ten Peachtree Place for $61.0 million, inclusive of tenant
allowance and free rent, resulting in net proceeds of $5.0 million to
the Company.
Financing Activity
-
Repaid the $24.4 million 100/200 North Point mortgage note.
Financial Results
FFO was $13.2 million, or $0.13 per share, for the second quarter of
2012 compared with $10.9 million, or $0.11 per share, for the second
quarter of 2011. FFO was $26.6 million, or $0.26 per share, for the six
months ended June 30, 2012, compared with $19.0 million, or $0.18 per
share, for the same period in 2011.
Net income available to common stockholders was $6.4 million, or $0.06
per share, for the second quarter of 2012 compared with net loss
available of ($4.7) million, or ($0.05) per share, for the second
quarter of 2011. Net loss available was ($6.7) million, or ($0.06) per
share, for the six months ended June 30, 2012, compared with ($12.6)
million, or ($0.12) per share, for the same period in 2011.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time)
on Wednesday, August 1, 2012, to discuss the results of the quarter
ended June 30, 2012. The number to call for this interactive
teleconference is (212) 231-2911.
A replay of the conference call will be available for 14 days by dialing
(402) 977-9140 and entering the passcode 21598855. The replay can be
accessed on the Company’s website, www.cousinsproperties.com,
through the “Q2 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
and a schedule entitled Funds From Operations, which reconciles Net
Income (Loss) Available to FFO, and a schedule entitled Same Property
Information, which reconciles same property net operating income to
rental property revenues and rental property expenses, 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; loss of key personnel;
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 |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(unaudited, in thousands, except per share amounts)
|
| | | | | | | |
|
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2012 | | 2011 | | 2012 | | 2011 |
| REVENUES: | | | | | | | | |
|
Rental property revenues
| | $ | 35,610 | | |
$
|
31,267
| | | $ | 70,800 | | |
$
|
61,705
| |
|
Fee income
| | | 2,786 | | | |
3,435
| | | | 5,642 | | | |
6,820
| |
|
Third party management and leasing revenues
| | | 6,029 | | | |
4,605
| | | | 10,740 | | | |
8,693
| |
|
Residential lot and outparcel sales
| | | 535 | | | |
80
| | | | 1,484 | | | |
245
| |
|
Other
| |
| 253 |
| |
|
562
|
| |
| 1,718 |
| |
|
5,707
|
|
| |
| 45,213 |
| |
|
39,949
|
| |
| 90,384 |
| |
|
83,170
|
|
| | | | | | | |
|
| COSTS AND EXPENSES: | | | | | | | | |
|
Rental property operating expenses
| | | 14,661 | | | |
13,072
| | | | 28,276 | | | |
24,971
| |
|
Third party management and leasing expenses
| | | 4,607 | | | |
4,080
| | | | 8,907 | | | |
8,173
| |
|
Residential lot and outparcel cost of sales
| | | 416 | | | |
76
| | | | 980 | | | |
145
| |
|
General and administrative expenses
| | | 5,645 | | | |
6,133
| | | | 12,268 | | | |
13,533
| |
|
Interest expense
| | | 5,875 | | | |
7,358
| | | | 12,143 | | | |
14,902
| |
|
Reimbursed expenses
| | | 1,357 | | | |
1,371
| | | | 2,733 | | | |
2,883
| |
|
Depreciation and amortization
| | | 12,750 | | | |
10,896
| | | | 25,861 | | | |
21,877
| |
|
Impairment loss
| | | - | | | |
-
| | | | 12,233 | | | |
3,508
| |
|
Separation expenses
| | | 79 | | | |
77
| | | | 292 | | | |
178
| |
|
Other
| |
| 579 |
| |
|
655
|
| |
| 1,273 |
| |
|
4,013
|
|
| |
| 45,969 |
| |
|
43,718
|
| |
| 104,966 |
| |
|
94,183
|
|
| | | | | | | |
|
| LOSS ON EXTINGUISHMENT OF DEBT | |
| - |
| |
|
-
|
| |
| (94 | ) | |
|
-
|
|
| | | | | | | |
|
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED
JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | | | (756 | ) | | |
(3,769
|
)
| | | (14,676 | ) | | |
(11,013
|
)
|
| | | | | | | |
|
| BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS | | | (33 | ) | | |
(27
|
)
| | | (60 | ) | | |
37
| |
| | | | | | | |
|
| INCOME FROM UNCONSOLIDATED JOINT VENTURES | |
| 9,762 |
| |
|
2,312
|
| |
| 11,948 |
| |
|
4,808
|
|
| | | | | | | |
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES | | | 8,973 | | | |
(1,484
|
)
| | | (2,788 | ) | | |
(6,168
|
)
|
| | | | | | | |
|
| GAIN ON SALE OF INVESTMENT PROPERTIES | |
| 29 |
| |
|
59
|
| |
| 86 |
| |
|
118
|
|
| | | | | | | |
|
| INCOME (LOSS) FROM CONTINUING OPERATIONS | | | 9,002 | | | |
(1,425
|
)
| | | (2,702 | ) | | |
(6,050
|
)
|
| | | | | | | |
|
| INCOME FROM DISCONTINUED OPERATIONS: | | | | | | | | |
|
Income from discontinued operations
| | | 554 | | | |
627
| | | | 818 | | | |
1,587
| |
|
Gain (loss) on sale of discontinued investment properties
| |
| 674 |
| |
|
-
|
| |
| 760 |
| |
|
(384
|
)
|
| |
| 1,228 |
| |
|
627
|
| |
| 1,578 |
| |
|
1,203
|
|
| | | | | | | |
|
| NET INCOME (LOSS) | | | 10,230 | | | |
(798
|
)
| | | (1,124 | ) | | |
(4,847
|
)
|
| NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |
| (602 | ) | |
|
(681
|
)
| |
| 867 |
| |
|
(1,262
|
)
|
| | | | | | | |
|
| NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | | | 9,628 | | | |
(1,479
|
)
| | | (257 | ) | | |
(6,109
|
)
|
| | | | | | | |
|
| DIVIDENDS TO PREFERRED STOCKHOLDERS | |
| (3,227 | ) | |
|
(3,227
|
)
| |
| (6,454 | ) | |
|
(6,454
|
)
|
| | | | | | | |
|
| NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | | $ | 6,401 |
| |
$
|
(4,706
|
)
| | $ | (6,711 | ) | |
$
|
(12,563
|
)
|
| | | | | | | |
|
| PER COMMON SHARE INFORMATION - BASIC AND DILUTED: | | | | | | | | |
|
Income (loss) from continuing operations attributable to controlling
interest
| | $ | 0.05 | | |
$
|
(0.05
|
)
| | $ | (0.08 | ) | |
$
|
(0.13
|
)
|
|
Income from discontinued operations
| |
| 0.01 |
| |
|
0.01
|
| |
| 0.02 |
| |
|
0.01
|
|
|
Net income (loss) available to common stockholders
| | $ | 0.06 |
| |
$
|
(0.05
|
)
| | $ | (0.06 | ) | |
$
|
(0.12
|
)
|
| | | | | | | |
|
| WEIGHTED AVERAGE SHARES - BASIC AND DILUTED | |
| 104,165 |
| |
|
103,659
|
| |
| 104,082 |
| |
|
103,588
|
|
| | | | | | | |
|
| DIVIDENDS PER COMMON SHARE | | $ | 0.045 |
| |
$
|
0.045
|
| | $ | 0.09 |
| |
$
|
0.09
|
|
| | | | | | | |
|
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011 |
|
(Unaudited, in thousands, except per share amounts)
|
|
| |
| |
| |
| |
| | | | | | | |
|
| | Three Months Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | |
|
| Net Income (Loss) Available to Common Stockholders | | $ | 6,401 | | | $ | (4,706 | ) | | $ | (6,711 | ) | | $ | (12,563 | ) |
|
Depreciation and amortization:
| | | | | | | | |
|
Consolidated properties
| | |
12,750
| | | |
10,896
| | | |
25,861
| | | |
21,877
| |
|
Discontinued properties
| | |
-
| | | |
2,479
| | | |
1,145
| | | |
5,037
| |
|
Share of unconsolidated joint ventures
| | |
2,500
| | | |
2,663
| | | |
5,166
| | | |
5,346
| |
|
Depreciation of furniture, fixtures and equipment:
| | | | | | | | |
|
Consolidated properties
| | |
(223
|
)
| | |
(372
|
)
| | |
(587
|
)
| | |
(935
|
)
|
|
Discontinued properties
| | |
-
| | | |
-
| | | |
-
| | | |
-
| |
|
Share of unconsolidated joint ventures
| | |
(5
|
)
| | |
(5
|
)
| | |
(10
|
)
| | |
(10
|
)
|
Impairment loss on depreciable investment property net of amounts
attributable to noncontrolling interests
| | |
-
| | | |
-
| | | |
10,190
| | | |
-
| |
|
(Gain) loss on sale of investment properties:
| | | | | | | | |
|
Consolidated properties including amounts attributable to
noncontrolling interests
| | |
(29
|
)
| | |
(59
|
)
| | |
(86
|
)
| | |
(118
|
)
|
|
Discontinued properties
| | |
(674
|
)
| | |
-
| | | |
(760
|
)
| | |
384
| |
|
Share of unconsolidated joint ventures
| | |
(7,509
|
)
| | |
-
| | | |
(7,509
|
)
| | |
-
| |
|
Other
| |
|
(59
|
)
| |
|
-
|
| |
|
(59
|
)
| |
|
-
|
|
| | | | | | | |
|
| Funds From Operations Available to Common Stockholders | | $ | 13,152 |
| | $ | 10,896 |
| | $ | 26,640 |
| | $ | 19,018 |
|
| | | | | | | |
|
| | | | | | | |
|
| Per Common Share - Basic and Diluted: | | | | | | | | |
| | | | | | | |
|
| Net Income (Loss) Available | | $ | .06 |
| | $ | (.05 | ) | | $ | (.06 | ) | | $ | (.12 | ) |
| | | | | | | |
|
| Funds From Operations | | $ | .13 |
| | $ | .11 |
| | $ | .26 |
| | $ | .18 |
|
| | | | | | | |
|
| Weighted Average Shares - Basic | |
| 104,165 |
| |
| 103,659 |
| |
| 104,082 |
| |
| 103,588 |
|
| Weighted Average Shares - Diluted | |
| 104,165 |
| |
| 103,684 |
| |
| 104,082 |
| |
| 103,606 |
|
| | | | | | | |
|
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 |
| CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share amounts)
|
|
|
| | | | | |
| | | | | |
|
| | | | | |
|
| | | | June 30, 2012 | | December 31, 2011 |
ASSETS | |
(unaudited)
| | |
| PROPERTIES: | | | | |
|
Operating properties, net of accumulated depreciation of $281,739
and $289,473 in 2012 and 2011, respectively
| | $ | 796,830 | | |
$
|
884,652
| |
|
Projects under development
| | | 19,078 | | | |
11,325
| |
|
Land held
| | | 52,163 | | | |
54,132
| |
|
Residential lots
| | | 12,288 | | | |
13,195
| |
|
Other
| |
| 533 |
| |
|
637
|
|
| |
Total properties
| | | 880,892 | | | |
963,941
| |
| | | | | |
|
| CASH AND CASH EQUIVALENTS | | | 3,009 | | | |
4,858
| |
| RESTRICTED CASH | | | 4,917 | | | |
4,929
| |
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful
accounts of $2,213 and $5,100 in 2012 and 2011, respectively | | | 11,206 | | | |
11,359
| |
| DEFERRED RENTS RECEIVABLE | | | 39,630 | | | |
37,141
| |
| INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | | | 140,303 | | | |
160,587
| |
| OTHER ASSETS | |
| 55,358 |
| |
|
52,720
|
|
| | | | | |
|
| | TOTAL ASSETS | | $ | 1,135,315 |
| |
$
|
1,235,535
|
|
| | | | | |
|
LIABILITIES AND EQUITY | | | | |
| NOTES PAYABLE | | $ | 461,021 | | |
$
|
539,442
| |
| ACCOUNTS PAYABLE AND OTHER LIABILITIES | | | 38,193 | | | |
38,592
| |
| DEFERRED INCOME | |
| 13,204 |
| |
|
17,343
|
|
| TOTAL LIABILITIES | | | 512,418 | | | |
595,377
| |
| | | | | |
|
| COMMITMENTS AND CONTINGENT LIABILITIES | | | | |
| | | | | |
|
| REDEEMABLE NONCONTROLLING INTERESTS | | | - | | | |
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,
107,785,195 and 107,272,078 shares issued in 2012 and 2011,
respectively
| | | 107,785 | | | |
107,272
| |
|
Additional paid-in capital
| | | 688,903 | | | |
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
| |
| (290,261 | ) | |
|
(274,177
|
)
|
| | TOTAL STOCKHOLDERS’ INVESTMENT | | | 589,189 | | | |
603,692
| |
| | | | | |
|
|
Nonredeemable noncontrolling interests
| |
| 33,708 |
| |
|
33,703
|
|
| | TOTAL EQUITY | |
| 622,897 |
| |
|
637,395
|
|
| | | | | |
|
| | TOTAL LIABILITIES AND EQUITY | | $ | 1,135,315 |
| |
$
|
1,235,535
|
|
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
Vice President, Investor Relations and
Corporate Communications
camerongolden@cousinsproperties.com
Source: Cousins Properties Incorporated