ATLANTA, Oct. 27, 2015
/PRNewswire/ --
Highlights
- Funds From Operations were $0.24
per share.
- Leased or renewed 770,009 square feet of office space.
- Same property net operating income on a cash basis was up 1.2%
over the prior year.
- Second generation net rent per square foot on a cash basis
increased 14.1%.
- Opened Emory Point Phase II, a mixed-used development in
Atlanta, Georgia. The project
contains 307 apartments and 45,000 square feet of retail
space.
- Signed a 15-year lease with NCR Corporation to develop an
approximately 485,000 square foot headquarters building in Midtown
Atlanta.
- Entered into a pre-formation agreement with a third party to
form a 50-50 joint venture to develop a 259,000 square foot office
building in Charlotte, North
Carolina that will be 100% leased by the joint venture
partner.
- Sold 2100 Ross, an 844,000 square foot office tower in
Dallas, Texas, for $131.0 million and recognized a gain of
$36.2 million.
- Initiated a $100 million share
repurchase plan and through September 30,
2015, repurchased approximately 2.0 million shares of common
stock for $18.7 million.
Cousins Properties Incorporated (NYSE: CUZ) today reported its
results of operations for the quarter ended September 30,
2015.
"During the third quarter we continued to execute our capital
allocation strategy by selling our 2100 Ross office tower in
Dallas, a very successful
investment for Cousins, as well as announcing two new build-to-suit
opportunities and initiating a share repurchase plan," said
Larry Gellerstedt, Cousins' Chief
Executive Officer.
Financial Results
Funds from Operations ("FFO") was $52.5
million, or $0.24 per share,
for the third quarter of 2015, compared with $41.7 million, or $0.20 per share, for the third quarter of
2014. FFO was $143.6 million,
or $0.66 per share, for the nine
months ended September 30, 2015, compared with $113.6 million, or $0.57 per share, for the same period in 2014.
Net income available to common stockholders was $53.6 million, or $0.25 per share, for the third quarter of 2015,
compared with $19.3
million, or $0.09 per share,
for the third quarter of 2014. Net income available to common
stockholders was $68.8 million,
or $0.32 per share, for the nine
months ended September 30, 2015, compared with $22.3 million, or $0.11 per share, for the same period in 2014.
2015 FFO Guidance
For the year ending December 31,
2015, the Company expects to report FFO in the range of
$0.85 to $0.87 per share. This
guidance reflects management's view of current and future market
conditions, as well as the earnings impact of events referenced in
this release and during our scheduled conference call. This
guidance does not include the operational or capital impact of any
future unannounced acquisition or disposition activity. This
guidance also excludes the operational or capital impact of any
development activity other than Research Park V, Carolina Square, and the NCR project.
The Company leaves unchanged previously provided components of
its 2015 FFO guidance, except for the following:
- General and administrative expenses of $19 million to $21 million, net of capitalized
salaries.
The Company's guidance is provided for information purposes
based on current plans and assumptions and is subject to
change.
Investor Conference Call and Webcast
The Company will conduct a conference call at 10:00 a.m. (Eastern Daylight Time) on
Wednesday, October 28, 2015, to
discuss the results of the quarter ended September 30, 2015.
The number to call for this interactive teleconference is (877)
247-1056. A replay of the conference call will be available
for 14 days by dialing (877) 344-7529 and entering the passcode
10073456. The replay can be accessed on the Company's website,
www.cousinsproperties.com, through the "Q3 2015 Cousins Properties
Incorporated Earnings Conference Call" link on the Investor
Relations page. A copy of Cousins Properties third quarter
2015 "Supplement Information" can be found in the Investor
Relations section of the Company's website at
www.cousinsproperties.com. The information in this update is
for informational purposes based on current plans and assumptions
and is subject to change. The Company undertakes no
obligation to update this information.
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 properties 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 cash basis same property net
operating income to rental property revenues and rental property
expenses, are attached to this press release. The change in second
generation net rent per square foot on a cash basis represents the
aggregate net rent (base rent less operating expense reimbursements
and leasing costs) paid by prior tenants compared to the aggregate
net rent paid by current tenants for spaces that have been
re-leased in the office portfolio. 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. Examples of such statements in this news release
include the Company's estimated ranges of FFO per share and the
assumptions related thereto. Such statements are subject to
uncertainties and risk including, but 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 and investments or
from dispositions; the potential dilutive effect of common stock
offerings; the failure to achieve benefits from any repurchase of
the Company's common stock; the availability of buyers and adequate
pricing with respect to the disposition of assets; risks related to
the geographic concentration of our portfolio, including, but not
limited to, metropolitan Houston
and Atlanta; risk related to the
industry concentration of our portfolio, including, but not limited
to, the energy industy; 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 adverse change in the financial
condition of one or more of its major 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 (such
as zoning approval, receipt 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 SEC, including those described in Part
I, Item 1A of the Company's Annual Report on Form 10-K/A for the
year ended December 31, 2014. 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
Rental property
revenues
|
$
96,016
|
|
$
86,857
|
|
$
282,226
|
|
$ 244,375
|
Fee income
|
1,686
|
|
1,802
|
|
5,206
|
|
6,165
|
Other
|
444
|
|
439
|
|
593
|
|
4,786
|
|
98,146
|
|
89,098
|
|
288,025
|
|
255,326
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Rental property
operating expenses
|
41,331
|
|
38,685
|
|
120,672
|
|
109,501
|
Reimbursed
expenses
|
686
|
|
783
|
|
2,514
|
|
2,703
|
General and
administrative expenses
|
2,971
|
|
5,021
|
|
12,502
|
|
16,388
|
Interest
expense
|
7,673
|
|
6,817
|
|
23,219
|
|
20,954
|
Depreciation and
amortization
|
32,538
|
|
32,704
|
|
103,564
|
|
101,979
|
Acquisition and
related costs
|
19
|
|
644
|
|
104
|
|
815
|
Other
|
175
|
|
481
|
|
873
|
|
1,936
|
|
85,393
|
|
85,135
|
|
263,448
|
|
254,276
|
Income (loss) from
continuing operations before taxes, unconsolidated joint ventures,
and sale of investment properties
|
12,753
|
|
3,963
|
|
24,577
|
|
1,050
|
Benefit for income
taxes from operations
|
-
|
|
(1)
|
|
-
|
|
20
|
Income from
unconsolidated joint ventures
|
3,716
|
|
2,030
|
|
7,088
|
|
5,343
|
Income (loss) from
continuing operations before gain on sale of investment
properties
|
16,469
|
|
5,992
|
|
31,665
|
|
6,413
|
Gain (loss) on
sale of investment properties
|
37,145
|
|
81
|
|
37,674
|
|
1,569
|
Income from
continuing operations
|
53,614
|
|
6,073
|
|
69,339
|
|
7,982
|
Income
(loss) from discontinued operations:
|
|
|
|
|
|
|
|
Income (loss) from
discontinued operations
|
6
|
|
348
|
|
(14)
|
|
1,806
|
Gain (loss) on sale
from discontinued operations
|
-
|
|
12,993
|
|
(551)
|
|
19,372
|
|
6
|
|
13,341
|
|
(565)
|
|
21,178
|
Net
income
|
53,620
|
|
19,414
|
|
68,774
|
|
29,160
|
Net income
attributable to noncontrolling interests
|
-
|
|
(92)
|
|
-
|
|
(376)
|
Net income
attributable to controlling interests
|
53,620
|
|
19,322
|
|
68,774
|
|
28,784
|
Dividends to
preferred stockholders
|
-
|
|
-
|
|
-
|
|
(2,955)
|
Preferred share
original issuance costs
|
-
|
|
-
|
|
-
|
|
(3,530)
|
Net income (loss)
available to common stockholders
|
$
53,620
|
|
$
19,322
|
|
$
68,774
|
|
$
22,299
|
Per common share
information — basic and diluted:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to controlling
interest
|
$
0.25
|
|
$
0.03
|
|
$
0.32
|
|
$
-
|
Income from
discontinued operations
|
-
|
|
0.06
|
|
-
|
|
0.11
|
Net income (loss)
available to common stockholders
|
$
0.25
|
|
$
0.09
|
|
$
0.32
|
|
$
0.11
|
Weighted average
shares — basic
|
216,261
|
|
209,839
|
|
216,485
|
|
200,073
|
Weighted average
shares — diluted
|
216,374
|
|
210,111
|
|
216,625
|
|
200,325
|
Dividends declared
per common share
|
$
0.080
|
|
$
0.075
|
|
$
0.240
|
|
$
0.225
|
COUSINS PROPERTIES
INCORPORATED AND SUBSIDIARIES
|
FUNDS FROM
OPERATIONS
|
(unaudited; in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Income
Available to Common Stockholders
|
$
53,620
|
|
$
19,322
|
|
$
68,774
|
|
$
22,299
|
Depreciation and amortization of real estate assets:
|
|
|
|
|
|
|
|
Consolidated properties
|
32,123
|
|
32,473
|
|
102,353
|
|
101,361
|
Share of unconsolidated joint ventures
|
2,891
|
|
2,874
|
|
8,406
|
|
8,958
|
(Gain) loss on sale of depreciated properties:
|
|
|
|
|
|
|
|
Consolidated properties
|
(36,167)
|
|
—
|
|
(35,893)
|
|
—
|
Discontinued properties
|
—
|
|
(12,993)
|
|
—
|
|
(19,362)
|
Share of unconsolidated joint ventures
|
—
|
|
—
|
|
—
|
|
387
|
Funds From
Operations Available to Common Stockholders
|
$
52,467
|
|
$
41,676
|
|
$
143,640
|
|
$ 113,643
|
Per Common Share —
Basic and Diluted:
|
|
|
|
|
|
|
|
Net Income
Available
|
$
0.25
|
|
$
0.09
|
|
$
0.32
|
|
$
0.11
|
Funds From
Operations
|
$
0.24
|
|
$
0.20
|
|
$
0.66
|
|
$
0.57
|
Weighted Average
Shares — Basic
|
216,261
|
|
209,839
|
|
216,485
|
|
200,073
|
Weighted Average
Shares — Diluted
|
216,374
|
|
210,111
|
|
216,625
|
|
200,325
|
|
|
|
|
|
|
|
|
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.
|
COUSINS PROPERTIES
INCORPORATED AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
(unaudited)
|
|
|
Assets:
|
|
|
|
Real estate
assets:
|
|
|
|
Operating properties,
net of accumulated depreciation of $385,657 and $324,543 in 2015
and 2014, respectively
|
$
2,160,655
|
|
$
2,181,684
|
Projects under
development
|
53,118
|
|
91,615
|
Land
|
17,829
|
|
21,646
|
|
2,231,602
|
|
2,294,945
|
Real estate assets
and other assets held for sale, net of accumulated depreciation and
amortization of $60,078 in 2015
|
50,491
|
|
—
|
|
|
|
|
Cash and cash
equivalents
|
5,331
|
|
—
|
Restricted
cash
|
4,486
|
|
5,042
|
Notes and accounts
receivable, net of allowance for doubtful accounts of $1,736 and
$1,643 in 2015 and 2014, respectively
|
9,513
|
|
10,732
|
Deferred rents
receivable
|
63,738
|
|
57,939
|
Investment in
unconsolidated joint ventures
|
103,470
|
|
100,498
|
Intangible assets,
net of accumulated amortization of $96,349 and $76,050 in 2015 and
2014, respectively
|
131,858
|
|
163,244
|
Other
assets
|
37,118
|
|
34,930
|
Total
assets
|
$
2,637,607
|
|
$
2,667,330
|
Liabilities:
|
|
|
|
Notes
payable
|
$
779,570
|
|
$
792,344
|
Accounts payable and
accrued expenses
|
66,049
|
|
76,240
|
Deferred
income
|
24,132
|
|
23,277
|
Intangible
liabilities, net of accumulated amortization of $24,464 and $16,897
in 2015 and 2014, respectively
|
62,019
|
|
70,020
|
Other
liabilities
|
30,407
|
|
31,991
|
Liabilities of real
estate assets held for sale
|
2,843
|
|
—
|
Total
liabilities
|
965,020
|
|
993,872
|
Commitments and
contingencies
|
—
|
|
—
|
Equity:
|
|
|
|
Stockholders'
investment:
|
|
|
|
Common stock, $1 par
value, 350,000,000 shares authorized, 220,255,502 and 220,082,610
shares issued in 2015 and 2014, respectively
|
220,256
|
|
220,083
|
Additional paid-in
capital
|
1,721,856
|
|
1,720,972
|
Treasury stock at
cost, 5,584,743 and 3,570,082 shares in 2015 and 2014,
respectively
|
(105,531)
|
|
(86,840)
|
Distributions in
excess of cumulative net income
|
(163,994)
|
|
(180,757)
|
Total
equity
|
1,672,587
|
|
1,673,458
|
Total liabilities and
equity
|
$
2,637,607
|
|
$
2,667,330
|
|
|
|
|
COUSINS PROPERTIES
INCORPORATED AND SUBSIDIARIES
|
SAME PROPERTY
INFORMATION
|
(unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Operating Income
- Consolidated Properties
|
|
|
|
|
|
|
|
Rental property revenues
|
$
96,016
|
|
$
86,857
|
|
$
282,226
|
|
$ 244,375
|
Rental property expenses
|
(41,331)
|
|
(38,685)
|
|
(120,672)
|
|
(109,501)
|
|
54,685
|
|
48,172
|
|
161,554
|
|
134,874
|
Net Operating Income
- Discontinued Operations
|
|
|
|
|
|
|
|
Rental property revenues
|
—
|
|
601
|
|
4
|
|
2,923
|
Rental property expenses
|
—
|
|
(262)
|
|
(18)
|
|
(1,126)
|
|
—
|
|
339
|
|
(14)
|
|
1,797
|
Net Operating Income
- Unconsolidated Joint Ventures
|
6,131
|
|
6,601
|
|
18,103
|
|
19,747
|
Total Net Operating Income
|
$
60,816
|
|
$
55,112
|
|
$
179,643
|
|
$ 156,418
|
|
|
|
|
|
|
|
|
Net Operating
Income
|
|
|
|
|
|
|
|
Same Property
|
$
44,647
|
|
$
44,165
|
|
$
131,841
|
|
$ 128,476
|
Non-Same Property
|
16,169
|
|
10,947
|
|
47,802
|
|
27,942
|
|
$
60,816
|
|
$
55,112
|
|
$
179,643
|
|
$ 156,418
|
|
|
|
|
|
|
|
|
Non-Cash
Items
|
|
|
|
|
|
|
|
Straight-line rent
|
$
4,623
|
|
$
4,169
|
|
$
16,694
|
|
$
16,818
|
Other
|
1,526
|
|
1,554
|
|
4,460
|
|
4,763
|
|
6,149
|
|
5,723
|
|
21,154
|
|
21,581
|
Cash Basis Property
Net Operating Income
|
|
|
|
|
|
|
|
Same Property
|
41,088
|
|
40,583
|
|
119,838
|
|
112,031
|
Non-Same Property
|
13,579
|
|
8,806
|
|
38,651
|
|
22,806
|
|
$
54,667
|
|
$
49,391
|
|
$
158,489
|
|
$ 134,837
|
|
|
|
|
|
|
|
|
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.
|
CONTACT:
|
|
Gregg D.
Adzema
|
|
Marli
Quesinberry
|
Executive Vice
President and
|
|
Director, Investor
Relations and
|
Chief Financial
Officer
|
|
Corporate
Communications
|
(404)
407-1116
|
|
(404)
407-1898
|
greggadzema@cousinsproperties.com
|
|
marliquesinberry@cousinsproperties.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cousins-properties-reports-results-for-quarter-ended-september-30-2015-300167231.html
SOURCE Cousins Properties Incorporated