Cousins Properties Incorporated (NYSE:CUZ):
Highlights
- Funds From Operations (FFO) before a
non-cash impairment charge was $0.11 per share.
- Finalized exit from residential
condominium business.
- Sold Jefferson Mill Business Park
Building A.
- Selected as the master developer for
the multi-modal transit hub in Downtown Atlanta.
- Continued progress on predevelopment of
Emory Point mixed use project.
Cousins Properties Incorporated (NYSE:CUZ) today reported its
results of operations for the quarter ended March 31, 2011.
“The first quarter results demonstrate the continued success of
our strategic efforts to lease vacant space and sell non-core
assets as we simplify the platform,” said Larry Gellerstedt, CEO of
Cousins. “Our leasing pipeline remains solid, and we’re excited to
be returning to an offensive mode as we move closer to starting our
Emory Point project and continue to seek additional value creation
opportunities.”
Portfolio Activity
- Leased or renewed 113,000 square feet
of office space and 165,000 square feet of retail space during the
quarter.
- Office portfolio increased to 92%
leased, compared with 88% in the prior-year period.
- Retail portfolio increased to 87%
leased, compared with 85% in the prior-year period.
- Industrial portfolio remained 96%
leased, compared with 64% in the prior-year period.
Disposition Activity
- Sold Jefferson Mill Business Park
Building A for $22.0 million.
- Sold final residential condominium
units at 10 Terminus Place for net gains of $2.2 million in the
first quarter of 2011.
- Sold 61 lots and 20 acres of
residential land for net gains of $246,000 in the first quarter of
2011.
Financial Results
FFO was $8.1 million, or $0.08 per share, for the first quarter
of 2011 compared with $14.0 million, or $0.14 per share, for the
first quarter of 2010.
Net loss available to common stockholders (net loss available)
was ($7.9 million), or ($0.08) per share, for the first quarter of
2011 compared with net loss available of ($1.6 million), or ($0.02)
per share, for the first quarter of 2010.
FFO and net loss available for the first quarter of 2011 were
affected by a $3.5 million non-cash impairment charge on the
Company’s passive investment in a non-traded real estate investment
trust. The Company’s initial investment in this
industrial/multifamily REIT was made in 2003 and the basis as of
December 31, 2010, was $9.4 million. FFO and net loss available
before this charge was $0.11 and ($0.04) per share,
respectively.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m.
(Eastern Time) on Thursday, May 5, 2011, to discuss the results of
the quarter ended March 31, 2011. 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 21521383. The
replay can be accessed on the Company’s website,
www.cousinsproperties.com, through the “Q1 2011 Cousins Properties
Incorporated Earnings Conference Call” link on the Investor
Relations page, as well as at
http://www.videonewswire.com/event.asp?id=78870. The rebroadcast
will be available on the Investor Relations page of the Company’s
website for 14 days.
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 development
projects. Since its founding in 1958, 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.
The Condensed Consolidated Statements of Operations, Condensed
Consolidated Balance Sheets and a schedule entitled Funds From
Operations, which reconciles Net Income (Loss) Available to FFO,
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; leasing risks; the financial
condition of existing tenants; competition from other developers or
investors; the risks associated with development projects; 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, 2010. 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 share and per share amounts)
Three Months Ended March 31, 2011
2010 REVENUES: Rental property revenues
$ 36,148 $ 34,773 Fee income
3,385 3,544 Third
party management and leasing revenues
4,088 4,794
Multi-family residential unit sales
4,657 10,146 Residential
lot and outparcel sales
165 13,819 Other
513
124
48,956 67,200
COSTS AND EXPENSES: Rental property operating
expenses
14,248 14,531 Third party management and leasing
expenses
4,093 4,958 Multi-family residential unit cost of
sales
2,500 7,970 Residential lot and outparcel cost of
sales
69 9,096 General and administrative expenses
7,400 8,017 Interest expense
7,544 9,781 Reimbursed
expenses
1,512 1,859 Depreciation and amortization
13,475 13,176 Impairment loss
3,508 - Separation
expenses
101 68 Other
862 862
55,312 70,318
LOSS ON EXTINGUISHMENT OF DEBT -
(592 )
LOSS FROM CONTINUING OPERATIONS BEFORE
TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT
PROPERTIES
(6,356 ) (3,710 )
BENEFIT FOR INCOME TAXES
FROM OPERATIONS 64 1,146
INCOME FROM
UNCONSOLIDATED JOINT VENTURES 2,496
2,920
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES
(3,796 ) 356
GAIN ON SALE OF INVESTMENT
PROPERTIES 59 756
INCOME (LOSS) FROM CONTINUING OPERATIONS (3,737
) 1,112
INCOME (LOSS) FROM DISCONTINUED
OPERATIONS: Income from discontinued operations
72 1,068
Loss on sale of investment properties
(384 )
-
(312 ) 1,068
NET INCOME (LOSS) (4,049 ) 2,180
NET
INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(581 ) (526 )
NET INCOME (LOSS)
ATTRIBUTABLE TO CONTROLLING INTEREST (4,630 )
1,654
DIVIDENDS TO PREFERRED STOCKHOLDERS
(3,227 ) (3,227 )
NET LOSS AVAILABLE
TO COMMON STOCKHOLDERS $ (7,857 ) $ (1,573
)
PER COMMON SHARE INFORMATION - BASIC AND DILUTED:
Loss from continuing operations attributable to controlling
interest
$ (0.07 ) $ (0.03 ) Income from
discontinued operations
- 0.01
Net loss available to common stockholders - basic and diluted
$ (0.08 ) $ (0.02 )
WEIGHTED
AVERAGE SHARES - BASIC AND DILUTED 103,515
100,069
COUSINS PROPERTIES INCORPORATED AND
SUBSIDIARIES FUNDS FROM OPERATIONS FOR THE THREE
MONTHS ENDED MARCH 31, 2011 AND 2010 (Unaudited, in thousands,
except per share amounts)
Three Months
Ended March 31, 2011 2010
Net Loss Available to Common Stockholders $
(7,857 ) $ (1,573 ) Depreciation
and amortization: Consolidated properties 13,475 13,176
Discontinued properties 64 719 Share of unconsolidated joint
ventures 2,683 2,294 Depreciation of furniture, fixtures and
equipment: Consolidated properties (563 ) (567 ) Discontinued
properties - (4 ) Share of unconsolidated joint ventures (5 ) (6 )
(Gain) loss on sale of investment properties: Consolidated (59 )
(756 ) Discontinued properties 384 - Gain on sale of undepreciated
investment properties - 697
Funds From Operations Available to Common Stockholders
$ 8,122 $ 13,980
Per Common Share - Basic and Diluted: Net
Loss Available $ (.08 ) $
(.02 ) Funds From Operations $
.08 $ .14 Weighted
Average Shares-Basic 103,515
100,069 Weighted Average Shares-Diluted
103,530 100,069
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.
Management believes that FFO before certain charges provides
analysts and investors with appropriate information related to its
core operations and for comparability of the results of its
operations with other real estate companies.
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except
share and per share amounts)
March 31,
2011 December 31, 2010
ASSETS
(Unaudited)
PROPERTIES:
Operating properties, net of accumulated
depreciation of $286,547 and $274,925 in 2011 and 2010,
respectively
$ 870,723 $ 898,119 Land held for investment or
future development
123,885 123,879 Residential lots
63,698 63,403 Other
738 2,994
Total properties
1,059,044 1,088,395
CASH
AND CASH EQUIVALENTS 5,097 7,599
RESTRICTED CASH
15,854 15,521
NOTES AND OTHER RECEIVABLES, net of
allowance for doubtful accounts of $5,728 and $6,287 in 2011 and
2010, respectively
48,414 48,395
INVESTMENT IN UNCONSOLIDATED JOINT
VENTURES 165,119 167,108
OTHER ASSETS
41,925 44,264
TOTAL
ASSETS $ 1,335,453 $ 1,371,282
LIABILITIES AND
EQUITY
NOTES PAYABLE $ 496,823 $ 509,509
ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES 26,455 32,388
DEFERRED GAIN 4,157 4,216
DEPOSITS AND DEFERRED
INCOME 17,978 18,029
TOTAL LIABILITIES 545,413 564,142
COMMITMENTS AND CONTINGENT LIABILITIES REDEEMABLE
NONCONTROLLING INTERESTS 8,953 14,289
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 2011 and 2010
74,827 74,827
7.50% Series B cumulative redeemable
preferred stock, $25 liquidation preference; 3,791,000 shares
issued and outstanding in 2011 and 2010
94,775 94,775
Common stock, $1 par value, 250,000,000
shares authorized, 107,201,480 and 106,961,959 shares issued in
2011 and 2010, respectively
107,201 106,962 Additional paid-in capital
685,028
684,551 Treasury stock at cost, 3,570,082 shares in 2011 and 2010
(86,840 ) (86,840 ) Distributions in excess of
cumulative net income
(126,706 )
(114,196 )
TOTAL STOCKHOLDERS’ INVESTMENT
748,285 760,079 Nonredeemable noncontrolling
interests
32,802 32,772
TOTAL
EQUITY 781,087 792,851
TOTAL LIABILITIES AND EQUITY $
1,335,453 $ 1,371,282
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From Jul 2023 to Jul 2024