CUZ Cousins Properties Inc

Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the three months ended March 31, 2007. All per share amounts are reported on a diluted basis; basic per share data is included in the Condensed Consolidated Statements of Income accompanying this release. Funds from Operations to Common Stockholders (�FFO�) was $24.5 million, or $0.46 per share, for the first quarter of 2007 compared with FFO of $19.1 million, or $0.37 per share, for the first quarter of 2006. Net Income Available to Common Stockholders (�Net Income Available�) was $14.4 million, or $0.27 per share, for the first quarter of 2007 compared with Net Income Available of $8.4 million, or $0.16 per share, for the first quarter of 2006. First quarter highlights of the Company included the following: Sold five ground leased outparcels at the Company�s North Point property for an aggregate price of $10.1 million. The $8.2 million aggregate gain on the sale of these outparcels was included in the Company�s calculation of FFO, as these properties had not previously been depreciated. Sold 41 acres of land adjacent to The Avenue Carriage Crossing in metropolitan Nashville, Tennessee for $11.7 million generating FFO of $4.4 million. Purchased 109 acres of land for $36.2 million and commenced construction of the first phase of The Avenue Forsyth, a 527,000 square foot lifestyle center in north metropolitan Atlanta, Georgia. Commenced construction of 10 Terminus Place, a 32-story, 142-unit condominium tower in the Buckhead district of Atlanta. At March 31, 2007, the Company�s portfolio of operational office buildings was 86% leased, its portfolio of operational retail centers was 93% leased and its operational industrial building was 100% leased. At March 31, 2007, the Company and its joint ventures had ten retail, office and industrial projects under development and redevelopment totaling 5.6 million Company-owned square feet, and two condominium projects under development containing a total of 671 units. The Company estimates the total cost of these projects will be approximately $1.2 billion and expects completion of these projects throughout the next four years. In addition, the Company and its joint ventures had 24 residential communities under development in which approximately 10,960 lots are available for future development or sale. �The first four months of 2007 have been momentous with our construction starts at The Avenue Forsyth and 10 Terminus Place, along with our corporate headquarters move back to downtown Atlanta,� said Tom Bell, Chairman and CEO of Cousins. �We�ve also started moving in the first tenants at Terminus 100, begun site work for Terminus 200 and are pursuing substantial office users at several of our projects including One Ninety One Peachtree Tower. While our residential business is still troubled with declining lot sales, our other businesses are performing quite well.� The Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets and a schedule entitled Funds From Operations, which reconciles Net Income Available to FFO, are attached to this press release. More detailed information on Net Income 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 �Quarterly Disclosures� and �SEC Filings� links on the Investor Relations page of the Company�s Web site at www.cousinsproperties.com. This information may also be obtained by calling the Company�s Investor Relations Department at (404) 407-1390. The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Tuesday, May 8, 2007, to discuss the results of the quarter ended March 31, 2007. The number to call for this interactive teleconference is (913)�981-4902. A replay of the conference call will be available for 14 days by dialing (719) 457-0820 and entering the passcode 1523543. The Company will also provide an online Web simulcast and rebroadcast of its first quarter 2007 earnings release conference call. The live broadcast will be available through the �Q1 2007 Cousins Properties Incorporated Earnings Conference Call� link on the Investor Relations page of the Company�s Web site, as well as at www.streetevents.com and www.earnings.com. The rebroadcast will be available on the Investor Relations page of the Company�s Web site for 14 days. Cousins Properties Incorporated, headquartered in Atlanta, has extensive experience in the real estate industry including the development, acquisition, financing, management and leasing of properties. The property types that Cousins actively invests in include office, multi-family, retail, industrial and land development projects. The Company�s portfolio consists of interests in 7.2 million square feet of office space, 4.7 million square feet of retail space, 2.0 million square feet of industrial space, two for-sale multi-family projects under development containing 671 units, 24 residential communities under development, over 9,000 acres of strategically located land tracts, and significant land holdings for development of single-family residential communities. The Company also provides leasing and management services to third-party investors; its client-services portfolio comprises 14.5 million square feet of office and retail space. The Company is a fully integrated equity real estate investment trust (REIT) that has been public since 1962 and trades on the New York Stock Exchange under the symbol �CUZ.� For more information on the Company, please visit its Web site at www.cousinsproperties.com. 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 risks, including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the risks associated with development projects (such as delay, cost overruns and leasing/sales risk of new properties), the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company�s ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the ability of the Company to close properties under contract and other risks detailed from time to time in the Company�s filings with the Securities and Exchange Commission, including those described in Item 1A of the Company�s Annual Report on Form 10-K for the year ended December 31, 2006. The words �believes,� �expects,� �anticipates,� �estimates� and 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 these 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. COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands, except per share amounts) � Three Months Ended March 31, � 2007� � 2006� REVENUES: Rental property revenues $ 24,437� $ 22,759� Fee income 8,066� 8,381� Multi-family residential unit sales -� 6,579� Residential lot and outparcel sales 1,426� 4,505� Interest and other � 3,679� � 2,662� � 37,608� � 44,886� � COSTS AND EXPENSES: Rental property operating expenses 10,222� 8,566� General and administrative expenses 14,690� 13,576� Depreciation and amortization 9,520� 8,156� Multi-family residential unit cost of sales -� 5,358� Residential lot and outparcel cost of sales 1,208� 3,203� Interest expense -� 3,613� Other � 360� � 454� � 36,000� � 42,926� � INCOME FROM CONTINUING OPERATIONS BEFORE TAXES, MINORITY INTEREST AND INCOME FROM UNCONSOLIDATED JOINT VENTURES 1,608� 1,960� � BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS 1,027� (2,370) � MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES (862) (1,078) � INCOME FROM UNCONSOLIDATED JOINT VENTURES � 3,708� � 12,123� � INCOME FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES 5,481� 10,635� � GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION � 4,440� � 805� � INCOME FROM CONTINUING OPERATIONS 9,921� 11,440� � DISCONTINUED OPERATIONS, NET OF APPLICABLE INCOME TAX PROVISION: � Income from discontinued operations 135� 577� Gain on sale of investment properties � 8,164� � 191� � 8,299� � 768� � NET INCOME 18,220� 12,208� � DIVIDENDS TO PREFERRED STOCKHOLDERS � (3,813) � (3,813) � NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 14,407� $ 8,395� � PER SHARE INFORMATION - BASIC: Income from continuing operations $ 0.12� $ 0.15� Income from discontinued operations � 0.16� � 0.02� Basic net income available to common stockholders $ 0.28� $ 0.17� � PER SHARE INFORMATION - DILUTED: Income from continuing operations $ 0.11� $ 0.15� Income from discontinued operations � 0.16� � 0.01� Diluted net income available to common stockholders $ 0.27� $ 0.16� � CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.37� $ 0.37� � WEIGHTED AVERAGE SHARES � 51,719� � 50,289� � DILUTED WEIGHTED AVERAGE SHARES � 53,596� � 52,002� COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES FUNDS FROM OPERATIONS (Unaudited, in thousands, except per share amounts) � � Three Months Ended March 31, 2007� 2006� � Net Income Available to Common Stockholders $ 14,407� $ 8,395� Depreciation and amortization: Consolidated properties 9,520� 8,156� Discontinued properties -� 2,667� Share of unconsolidated joint ventures 1,081� 2,062� Depreciation of furniture, fixtures and equipment and amortization of specifically identifiable intangible assets: � Consolidated properties (501) (821) Share of unconsolidated joint ventures -� (4) (Gain) loss on sale of investment properties, net of applicable income tax provision: � Consolidated (4,440) (805) Discontinued properties (8,164) (191) Share of unconsolidated joint ventures 44� (1,053) Gain on sale of undepreciated investment properties � 12,540� � 740� � Funds From Operations Available to Common Stockholders $ 24,487� $ 19,146� � � � Per Common Share - Basic: Net Income Available $ .28� $ .17� Funds From Operations $ .47� $ .38� Weighted Average Shares-Basic � 51,719� � 50,289� � Per Common Share - Diluted: Net Income Available $ .27� $ .16� Funds From Operations $ .46� $ .37� Weighted Average Shares-Diluted � 53,596� � 52,002� The table above shows Funds From Operations Available to Common Stockholders (�FFO�) and the related reconciliation to Net Income Available to Common Stockholders ("Net Income Available") 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 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 the operating performance of its reportable segments and of its divisions based in part on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and employees.