Cousins Properties Incorporated (NYSE:CUZ) today reported its
results of operations for the quarter ended March 31, 2008. 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 Available to
Common Stockholders (�FFO�) was $13.8 million, or $0.27 per share,
for the first quarter of 2008 compared with FFO of $24.5 million,
or $0.46 per share, for the first quarter of 2007. Net Income
Available to Common Stockholders (�Net Income Available�) was $1.8
million, or $0.04 per share, compared with Net Income Available of
$14.4 million, or $0.27 per share, for the first quarter of 2007.
First quarter highlights of the Company included the following:
Sold approximately 22 acres of land at the Company�s North Point
property for approximately $6.3 million, generating FFO of
approximately $3.7 million. Executed a 260,000-square-foot lease
renewal and expansion with Deloitte & Touche at One Ninety One
Peachtree Tower. Obtained new management and leasing contracts on
approximately 2.0 million square feet of office and retail space
owned by third parties. Other highlights subsequent to quarter-end:
Entered into agreements to sell 167 acres of land at two of the
Company�s Atlanta-area industrial parks for approximately $18.5
million. The sale of 75 acres closed in April 2008, and the
remaining acreage is expected to close in 2009. At March 31, 2008,
the Company�s portfolio of operational office buildings was 92%
leased, its portfolio of operational retail centers was 91% leased
and its operational industrial buildings were 50% leased. At March
31, 2008, the Company and its joint ventures had nine retail,
office and industrial projects under development and redevelopment
totaling 4.9 million Company-owned square feet, and two
multi-family projects under development containing a total of 208
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 three years. In addition, the Company
and its joint ventures had 24 residential communities under various
stages of development in which approximately 1,500 completed lots
are in inventory and an additional 9,000 lots are available for
future development and/or sale. �We�ve made leasing a top priority
this year and our first quarter results highlight some successes at
several office and retail projects,� said Tom Bell, chairman and
CEO of Cousins Properties. �Since quarter end, we�ve made even more
progress at One Ninety One Peachtree and Terminus, and on the
retail side, we�re looking forward to this week�s successful
opening of The Avenue Forsyth, our fifth Atlanta-area Avenue.� 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 13, 2008, to discuss the results of
the quarter ended March 31, 2008. The number to call for this
interactive teleconference is (303) 262-2137. A replay of the
conference call will be available for 14 days by dialing (303)
590-3000 and entering the passcode 11110955#. The replay can be
accessed on the Company�s Web site, www.cousinsproperties.com,
through the �1Q 2008 Cousins Properties Incorporated Earnings
Conference Call� link on the Investor Relations page, 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. Celebrating its 50th anniversary in 2008, 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, multi-family, retail, industrial and
land development projects. Since its founding, 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. 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, general and local
economic conditions, local real estate conditions (including the
overall condition of the residential markets), 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
Part I, Item 1A of the Company�s Annual Report on Form 10-K for the
year ended December 31, 2007. 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, 2008 � 2007 REVENUES: Rental property
revenues $ 34,313 $ 24,130 Fee income 7,558 8,066 Residential lot
and outparcel sales 1,744 1,426 Interest and other � 1,360 � � �
3,667 � � 44,975 � � � 37,289 � � COSTS AND EXPENSES: Rental
property operating expenses 13,678 10,017 General and
administrative expenses 14,385 14,690 Depreciation and amortization
11,439 9,355 Residential lot and outparcel cost of sales 946 1,208
Interest expense 6,275 - Other � 1,755 � � � 360 � � 48,478 � � �
35,630 � � INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES,
MINORITY INTEREST AND INCOME FROM UNCONSOLIDATED JOINT VENTURES
(3,503 ) 1,659 � BENEFIT FOR INCOME TAXES FROM OPERATIONS 3,217
1,027 � MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES
(671 ) (862 ) � INCOME FROM UNCONSOLIDATED JOINT VENTURES � 2,817 �
� � 3,708 � � INCOME FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE
OF INVESTMENT PROPERTIES 1,860 5,532 � GAIN ON SALE OF INVESTMENT
PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION � 3,792 � � �
4,440 � � INCOME FROM CONTINUING OPERATIONS 5,652 9,972 �
DISCONTINUED OPERATIONS, NET OF APPLICABLE INCOME TAX PROVISION:
Income from discontinued operations - 84 Gain on sale of investment
properties � - � � � 8,164 � � - � � � 8,248 � � NET INCOME 5,652
18,220 � DIVIDENDS TO PREFERRED STOCKHOLDERS � (3,813 ) � � (3,813
) � NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 1,839 � � $
14,407 � � PER COMMON SHARE INFORMATION - BASIC: Income from
continuing operations $ 0.04 $ 0.12 Income from discontinued
operations � - � � � 0.16 � Basic net income available to common
stockholders $ 0.04 � � $ 0.28 � � PER COMMON SHARE INFORMATION -
DILUTED: Income from continuing operations $ 0.04 $ 0.12 Income
from discontinued operations � - � � � 0.15 � Diluted net income
available to common stockholders $ 0.04 � � $ 0.27 � � CASH
DIVIDENDS DECLARED PER COMMON SHARE $ 0.37 � � $ 0.37 � � WEIGHTED
AVERAGE SHARES � 51,148 � � � 51,719 � � DILUTED WEIGHTED AVERAGE
SHARES � 51,670 � � � 53,596 � COUSINS PROPERTIES INCORPORATED AND
SUBSIDIARIES FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED MARCH
31, 2008 AND 2007 (Unaudited, in thousands, except per share
amounts) � � � Three Months Ended March 31, 2008 2007 � Net Income
Available to Common Stockholders $ 1,839 $ 14,407 Depreciation and
amortization: Consolidated properties 11,439 9,355 Discontinued
properties - 165 Share of unconsolidated joint ventures 1,391 1,081
Depreciation of furniture, fixtures and equipment and amortization
of specifically identifiable intangible assets: Consolidated
properties (777 ) (501 ) Share of unconsolidated joint ventures (25
) - Gain on sale of investment properties, net of applicable income
tax provision: Consolidated (3,792 ) (4,440 ) Discontinued
properties - (8,164 ) Share of unconsolidated joint ventures - 44
Gain on sale of undepreciated investment properties � 3,736 � �
12,540 � � Funds From Operations Available to Common Stockholders $
13,811 � $ 24,487 � � � Per Common Share - Basic: Net Income
Available $ .04 � $ .28 � Funds From Operations $ .27 � $ .47 �
Weighted Average Shares-Basic � 51,148 � � 51,719 � � Per Common
Share - Diluted: Net Income Available $ .04 � $ .27 � Funds From
Operations $ .27 � $ .46 � Weighted Average Shares-Diluted � 51,670
� � 53,596 � 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 key employees.
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