ATLANTA--(BUSINESS WIRE)--
Cousins Properties Incorporated (NYSE:CUZ):
Highlights
-
Funds From Operations for the first quarter was $0.19 per share, up
from $0.11 in the prior year.
-
Cash basis same property net operating income for the first quarter
was up 10.2% over the prior year.
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the quarter ended March 31, 2014.
“The strong results in the quarter reflect the health of our markets,
the quality of our assets, and the intense focus of our team in
providing exceptional value to our customers every day,” said Larry
Gellerstedt, President and Chief Executive Officer of Cousins. “The
454,000 square feet of leasing was highlighted by the 110,000 square
feet of new activity at Colorado Tower in Austin.”
Portfolio Activity
-
Leased or renewed 454,000 square feet of office and retail space
during the first quarter.
-
Average second generation net effective rent per square foot for
office properties for the first quarter was up 12.7% over the prior
year.
Transaction Activity
-
Sold the 600 University Park office building for $19.7 million,
generating a gain of $6.4 million.
-
Issued 8.7 million shares of common stock for net proceeds of $98.6
million.
-
Increased the common stock dividend from $0.045 to $0.075 per share.
-
Subsequent to quarter end, redeemed all outstanding shares of the
Company’s Series B Cumulative Redeemable Preferred Stock for $94.8
million, excluding accrued dividends.
Financial Results
FFO was $36.2 million, or $0.19 per share, for the first quarter of
2014, compared with $11.5 million, or $0.11 per share, for the first
quarter of 2013.
Net income available to common stockholders was $5.2 million, or $0.03
per share, for the first quarter of 2014, compared with net income
available of $53.2 million, or $0.51 per share, for the first quarter of
2013. The three months ended March 31, 2013 included gains on the sale
of 50% of the Company's interest in Terminus 100 and the acquisition,
achieved in stages, of Terminus 200.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time)
on Thursday, May 8, 2014, to discuss the results of the quarter ended
March 31, 2014. The number to call for this interactive teleconference
is (212) 231-2924.
A replay of the conference call will be available for 14 days by dialing
(402) 977-9140 and entering the passcode 21713241. The replay can be
accessed on the Company's website, www.cousinsproperties.com,
through the “Q1 2014 Cousins Properties Incorporated Earnings Conference
Call” link on the Investor Relations page.
Cousins Properties Incorporated is a leading fully-integrated real
estate investment trust (REIT) with extensive experience in development,
acquisition, financing, management, and leasing. Based in Atlanta, the
Company actively invests in top-tier urban office assets and
opportunistic mixed-use developments in Sunbelt markets.
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 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) 407-1898.
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, the availability and terms of capital and financing; the ability to
refinance indebtedness as it matures; the failure of purchase, sale, or
other contracts to ultimately close; the failure to achieve anticipated
benefits from acquisitions or dispositions; the potential dilutive
effect of common stock offerings; the availability of buyers and
adequate pricing with respect to the disposition of assets; risks
related to the geographic concentration of our portfolio; risks and
uncertainties related to national and local economic conditions, the
real estate industry in general, and the commercial real estate markets
in particular; changes to the Company's strategy with regard to land and
other non-core holdings that require impairment losses to be recognized;
leasing risks, including the ability to obtain new tenants or renew
expiring tenants, and the ability to lease newly developed and/or
recently acquired space; the financial condition of existing tenants;
volatility in interest rates and insurance rates; the availability of
sufficient investment opportunities; competition from other developers
or investors; the risks associated with real estate developments and
acquisitions (such as zoning approval, receipts of required permits,
construction delays, cost overruns, and leasing risk); the loss of key
personnel; the potential liability for uninsured losses, condemnation,
or environmental issues; the potential liability for a failure to meet
regulatory requirements; 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,
2013. 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 March 31, |
| | | 2014 | | | 2013 |
| Revenues: | | | | | | |
|
Rental property revenues
| | | $ | 77,484 | | | |
$
|
33,125
| |
|
Fee income
| | | | 2,338 | | | | |
3,579
| |
|
Other
| | |
| 1,901 |
| | |
|
1,558
|
|
| | |
| 81,723 |
| | |
|
38,262
|
|
| Costs and expenses: | | | | | | |
|
Rental property operating expenses
| | | | 34,857 | | | | |
15,208
| |
|
Reimbursed expenses
| | | | 932 | | | | |
1,910
| |
|
General and administrative expenses
| | | | 5,611 | | | | |
6,070
| |
|
Interest expense
| | | | 7,167 | | | | |
4,935
| |
|
Depreciation and amortization
| | | | 34,140 | | | | |
11,246
| |
|
Separation expenses
| | | | 84 | | | | |
-
| |
|
Acquisition and related costs
| | | | 22 | | | | |
235
| |
|
Other
| | |
| 494 |
| | |
|
1,455
|
|
| | |
| 83,307 |
| | |
|
41,059
|
|
| Loss from continuing operations before taxes, unconsolidated
joint ventures, and sale of investment properties | | | | (1,584 | ) | | | |
(2,797
|
)
|
| Benefit (provision) for income taxes from operations | | | | 12 | | | | |
(1
|
)
|
| Income from unconsolidated joint ventures | | |
| 1,286 |
| | |
|
1,652
|
|
| Loss from continuing operations before gain on sale of investment
properties | | | | (286 | ) | | | |
(1,146
|
)
|
| Gain on sale of investment properties | | |
| 161 |
| | |
|
57,154
|
|
| Income (loss) from continuing operations | | | | (125 | ) | | | |
56,008
| |
| Income from discontinued operations: | | | | | | |
|
Income from discontinued operations
| | | | 892 | | | | |
778
| |
|
Gain on sale of investment properties
| | |
| 6,365 |
| | |
|
118
|
|
| | | | 7,257 | | | | |
896
| |
| Net income | | | | 7,132 | | | | |
56,904
| |
| Net income attributable to noncontrolling interests | | |
| (155 | ) | | |
|
(507
|
)
|
| Net income attributable to controlling interests | | | | 6,977 | | | | |
56,397
| |
| Dividends to preferred stockholders | | |
| (1,777 | ) | | |
|
(3,227
|
)
|
| Net income available to common stockholders | | | $ | 5,200 |
| | |
$
|
53,170
|
|
| Per common share information — basic and diluted: | | | | | | |
|
Income (loss) from continuing operations attributable to controlling
interest
| | | $ | (0.01 | ) | | |
$
|
0.50
| |
|
Income from discontinued operations
| | |
| 0.04 |
| | |
|
0.01
|
|
|
Net income available to common stockholders
| | | $ | 0.03 |
| | |
$
|
0.51
|
|
| Weighted average shares — basic | | |
| 191,739 |
| | |
|
104,119
|
|
| Weighted average shares — diluted | | |
| 191,952 |
| | |
|
104,252
|
|
| Dividends declared per common share | | | $ | 0.075 |
| | |
$
|
0.045
|
|
| | | | | | | | | |
|
|
|
| |
|
| |
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| FUNDS FROM OPERATIONS |
|
(unaudited; in thousands, except per share amounts)
|
| | | | | |
|
| | | Three Months Ended March 31, |
| | | 2014 | | | 2013 |
| Net Income Available to Common Stockholders | | | $ | 5,200 | | | |
$
|
53,170
| |
|
Depreciation and amortization of real estate assets:
| | | | | | |
|
Consolidated properties
| | | | 33,955 | | | | |
11,063
| |
|
Discontinued properties
| | | | — | | | | |
1,053
| |
|
Share of unconsolidated joint ventures
| | | | 2,998 | | | | |
3,204
| |
|
(Gain) loss on sale of depreciated properties:
| | | | | | |
|
Consolidated properties
| | | | — | | | | |
(56,911
|
)
|
|
Discontinued properties
| | | | (6,358 | ) | | | |
(118
|
)
|
|
Share of unconsolidated joint ventures
| | |
| 387 |
| | |
|
—
|
|
| Funds From Operations Available to Common Stockholders | | | $ | 36,182 |
| | |
$
|
11,461
|
|
| Per Common Share — Basic and Diluted: | | |
| | |
|
|
Net Income Available
| | | $ | 0.03 |
| | |
$
|
0.51
|
|
|
Funds From Operations
| | | $ | 0.19 |
| | |
$
|
0.11
|
|
| Weighted Average Shares — Basic | | |
| 191,739 |
| | |
|
104,119
|
|
| Weighted Average Shares — Diluted | | |
| 191,952 |
| | |
|
104,252
|
|
| | | | | |
|
|
The table above shows Funds From Operations Available to Common
Stockholders (“FFO”) and the related reconciliation to Net Income
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, to assess performance in connection
with evaluating and granting incentive compensation to its
officers and other key employees.
Net effective rent represents base rent less operating expense
reimbursements and leasing costs. Second generation leases exclude
leases executed for spaces that were vacant upon acquisition, new
leases in a development property, and leases for spaces that have
been vacant for one year or more.
|
|
|
|
|
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except share and per share amounts)
|
|
|
| |
|
| |
|
| |
| | | | | March 31, 2014 | | | December 31, 2013 |
| | | | |
(unaudited)
| | | |
| Assets: | | | | | | |
|
Real estate assets:
| | | | | | |
| |
Operating properties, net of accumulated depreciation of $258,752
and $235,707 in 2014 and 2013, respectively
| | | $ | 1,822,086 | | | |
$
|
1,828,437
| |
| |
Projects under development
| | | | 34,816 | | | | |
21,681
| |
| |
Land
| | |
| 34,727 |
| | |
|
35,053
|
|
| | | | | | 1,891,629 | | | | |
1,885,171
| |
|
Operating properties and related assets held for sale, net of
accumulated depreciation of $12,001 and $21,444 in 2014 and 2013,
respectively
| | | | 11,463 | | | | |
24,554
| |
|
Cash and cash equivalents
| | | | 29,080 | | | | |
975
| |
|
Restricted cash
| | | | 3,478 | | | | |
2,810
| |
|
Notes and accounts receivable, net of allowance for doubtful
accounts of $1,897 and $1,827 in 2014 and 2013, respectively
| | | | 11,456 | | | | |
11,778
| |
|
Deferred rents receivable
| | | | 46,963 | | | | |
39,969
| |
|
Investment in unconsolidated joint ventures
| | | | 107,106 | | | | |
107,082
| |
|
Intangible assets, net of accumulated amortization of $49,112 and
$37,544 in 2014 and 2013, respectively
| | | | 159,200 | | | | |
170,973
| |
|
Other assets
| | |
| 33,636 |
| | |
|
29,894
|
|
| |
Total assets
| | | $ | 2,294,011 |
| | |
$
|
2,273,206
|
|
| Liabilities: | | | | | | |
|
Notes payable
| | | $ | 587,442 | | | |
$
|
630,094
| |
|
Accounts payable and accrued expenses
| | | | 55,493 | | | | |
76,668
| |
|
Deferred income
| | | | 24,781 | | | | |
25,754
| |
|
Intangible liabilities, net of accumulated amortization of $9,344
and $6,323 in 2014 and 2013, respectively
| | | | 63,455 | | | | |
66,476
| |
|
Other liabilities
| | |
| 14,682 |
| | |
|
15,242
|
|
| |
Total liabilities
| | | | 745,853 | | | | |
814,234
| |
| Commitments and contingencies | | | | - | | | | |
-
| |
| Equity: | | | | | | |
|
Stockholders' investment:
| | | | | | |
|
Preferred stock, 7.50% Series B cumulative redeemable preferred
stock, $1 par value, $25 liquidation preference, 20,000,000 shares
authorized, 3,791,000 shares issued and outstanding in 2014 and 2013
| | | | 94,775 | | | | |
94,775
| |
|
Common stock, $1 par value, 250,000,000 shares authorized,
201,992,661 and 193,236,454 shares issued in 2014 and 2013,
respectively
| | | | 201,993 | | | | |
193,236
| |
|
Additional paid-in capital
| | | | 1,510,409 | | | | |
1,420,951
| |
|
Treasury stock at cost, 3,570,082 shares in 2014 and 2013
| | | | (86,840 | ) | | | |
(86,840
|
)
|
|
Distributions in excess of cumulative net income
| | |
| (173,752 | ) | | |
|
(164,721
|
)
|
| |
Total stockholders' investment
| | | | 1,546,585 | | | | |
1,457,401
| |
|
Nonredeemable noncontrolling interests
| | |
| 1,573 |
| | |
|
1,571
|
|
| |
Total equity
| | |
| 1,548,158 |
| | |
|
1,458,972
|
|
| |
Total liabilities and equity
| | | $ | 2,294,011 |
| | |
$
|
2,273,206
|
|
| | | | | | | | | | | |
|
|
|
| |
|
| |
| COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES |
| SAME PROPERTY INFORMATION |
|
(unaudited, in thousands)
|
| | | | | |
|
| | | Three Months Ended March 31, |
| | | 2014 | | | 2013 |
|
Net Operating Income - Consolidated Properties | | | | | | |
|
Rental property revenues
| | | $ | 77,484 | | | |
$
|
33,125
| |
|
Rental property expenses
| | |
| (34,857 | ) | | |
|
(15,208
|
)
|
| | | | 42,627 | | | | |
17,917
| |
|
Net Operating Income - Discontinued Operations
| | | | | | |
|
Rental property revenues
| | | | 1,356 | | | | |
3,000
| |
|
Rental property expenses
| | |
| (464 | ) | | |
|
(1,194
|
)
|
| | | | 892 | | | | |
1,806
| |
|
Net Operating Income - Unconsolidated Joint Ventures | | |
| 6,499 |
| | |
|
6,447
|
|
|
Total Net Operating Income
| | | $ | 50,018 |
| | |
$
|
26,170
|
|
| | | | | |
|
|
Net Operating Income
| | | | | | |
|
Same Property
| | | $ | 15,247 | | | |
$
|
14,917
| |
|
Non-Same Property
| | |
| 34,771 |
| | |
|
11,253
|
|
| | | $ | 50,018 |
| | |
$
|
26,170
|
|
| | | | | |
|
|
Non-Cash Items
| | | | | | |
|
Straight-line rent
| | | $ | 7,648 | | | |
$
|
2,611
| |
|
Other
| | |
| 1,583 |
| | |
|
(108
|
)
|
| | | | 9,231 | | | | |
2,503
| |
|
Cash Basis Property Net Operating Income
| | | | | | |
|
Same Property
| | | $ | 14,650 | | | |
$
|
13,300
| |
|
Non-Same Property
| | |
| 26,137 |
| | |
|
10,367
|
|
| | | $ | 40,787 |
| | |
$
|
23,667
|
|
| | | | | |
|
This schedule shows same property net operating income and the
related reconciliation to rental property revenues and rental
property expenses. 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, 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. Same Property Net Operating Income includes
those office properties that have been fully operational in each
of the comparable reporting periods. A fully operational property
is one that has achieved 90% economic occupancy for each of the
two periods presented or has been substantially complete and owned
by the Company for each of the two periods presented and the
preceding year. Same Property Net Operating Income allows
analysts, investors and management to analyze continuing
operations and evaluate the growth trend of the Company's
portfolio.
Cash Basis Same Property Net Operating Income represents Net
Operating Income excluding straight-line rents, amortization of
lease inducements and amortization of acquired above and below
market rents.
|
|
|
Cousins Properties Incorporated
Gregg D. Adzema, 404-407-1116
Executive
Vice President and
Chief Financial Officer
greggadzema@cousinsproperties.com
or
Marli
Quesinberry, 404-407-1898
Director, Investor Relations and
Corporate
Communications
marliquesinberry@cousinsproperties.com
Source: Cousins Properties Incorporated