(Source: Business Wire)
Cousins Properties Incorporated (NYSE:CUZ) today reported its results of
operations for the three and nine months ended September 30, 2009. 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 $7.3
million, or $0.12 per share, before certain separation and non-cash
impairment and valuation charges discussed below for the third quarter
of 2009, compared with FFO of $20.9 million, or $0.39 per share, for the
third quarter of 2008. FFO was $38.6 million, or $0.70 per share, before
such charges for the nine months ended September 30, 2009, compared with
$50.9 million, or $0.95 per share, for the same period in 2008.
Net Income (Loss) Available to Common Stockholders ("Net Income (Loss)
Available") was ($7.8) million, or ($0.13) per share, before such
separation and non-cash impairment and valuation charges for the quarter
ended September 30, 2009, compared with Net Income Available of $7.0
million, or $0.13 per share, for the third quarter of 2008. Net Income
Available was $160.0 million, or $2.89 per share, before such charges
for the nine months ended September 30, 2009, compared with $11.7
million, or $0.22 per share, for the same period in 2008. During the
second quarter of 2009, the Company recorded $88.3 million of separation
and non-cash impairment and valuation charges.
The Company recorded $48.5 million of non-cash impairment charges during
the third quarter of 2009. These charges consisted of the following:
Impairment charge on investment in Terminus 200, LLC - $38.9 million,
Impairment charge on investment in Glenmore Garden Villas LLC - $4.9
million,
Impairment charge on airplane - $4.0 million,
Company share of impairment charge on property owned by Temco
Associates, LLC - $631,000
The impairment charges on Terminus 200, LLC and the airplane were
previously disclosed in September 2009.
After such separation and non-cash impairment and valuation charges, FFO
was a loss of $41.9 million, or $0.70 per share, for the third quarter
of 2009 and a loss of $99.3 million, or $1.79 per share, for the nine
months ended September 30, 2009. Net Loss Available, after such
separation and non-cash charges, was $57.1 million, or $0.95 per share,
for the third quarter of 2009 and Net Income Available was $22.2
million, or $0.40 per share, for the nine months ended September 30,
2009.
A reconciliation of FFO and Net Income (Loss) Available before certain
separation and non-cash impairment and valuation charges is as follows:
3rd Quarter 2009 Nine Months 2009
$(000) Per Share $(000) Per Share
FFO Before Certain Charges $ 7,314 $ 0.12 $ 38,599 $ 0.70
Certain Separation and Non-Cash Impairment and Valuation Charges:
Terminus 200 Impairment (38,947 ) (0.65 ) (38,947 ) (0.70 )
Glenmore Garden Villas Impairment (4,935 ) (0.08 ) (6,065 ) (0.11 )
Airplane impairment (4,012 ) (0.07 ) (4,012 ) (0.07 )
Temco Impairment (631 ) (0.01 ) (631 ) (0.01 )
Impairment charge on 10 Terminus - 0.00 (34,900 ) (0.63 )
Impairment charges on Investments in Joint Ventures - 0.00 (27,000 ) (0.49 )
Valuation allowance on deferred tax asset - 0.00 (15,907 ) (0.29 )
Write-off of predevelopment expenses - 0.00 (3,100 ) (0.06 )
Separation charges (724 ) (0.01 ) (3,094 ) (0.06 )
Other reserves and impairments - 0.00 (4,219 ) (0.07 )
Total (49,249 ) (0.82 ) (137,875 ) (2.49 )
FFO $ (41,935 ) $ (0.70 ) $ (99,276 ) $ (1.79 )
Net Income (Loss) Available Before Certain Charges $ (7,839 ) $ (0.13 ) $ 160,045 $ 2.89
Certain Separation and Non-Cash Impairment and Valuation Charges (49,249 ) (0.82 ) (137,875 ) (2.49 )
Net Income (Loss) Available $ (57,088 ) $ (0.95 ) $ 22,170 $ 0.40
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Third quarter highlights of the Company included the following:
Completed an offering of 46 million shares of common stock. Net
proceeds from the offering were $318.6 million, which were used to
reduce indebtedness.
Sold all of the completed units of The Brownstones at Habersham, a
townhome project it acquired from a bank in the second quarter.
Recognized gains on the sale of these units of $1.5 million.
At September 30, 2009, the Company's portfolio of operational office
buildings was 87% leased, its portfolio of operational retail centers
was 83% leased and its operational industrial buildings were 44% leased.
"In the third quarter, our team made significant strides in improving
our balance sheet and cost structure to make us more competitive in the
current environment," said Larry Gellerstedt, CEO of Cousins. "Raising
over $300 million in common equity dramatically reduced our leverage
thereby creating more financial flexibility for future opportunities. We
also made some difficult but necessary decisions to reduce our expenses
in the quarter. We expect that the combination of these actions will
make us a leaner but stronger organization focused on maximizing the
value of our assets for our shareholders."
The Condensed Consolidated Statements of Income, 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 (Loss) 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 website at www.cousinsproperties.com.
This information may also be obtained by calling the Company's Investor
Relations Department at (404) 407-1984.
The Company will conduct a conference call at 2:00 p.m. (Eastern Time)
on Thursday, November 5, 2009, to discuss the results of the quarter
ended September 30, 2009. The number to call for this interactive
teleconference is (212) 231-2900. A replay of the conference call will
be available for 14 days by dialing (402) 977-9140 and entering the
passcode 21439816. The replay can be accessed on the Company's website, www.cousinsproperties.com,
through the "Q3 2009 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 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, multi-family, retail, and land 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.
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 (including the current
general recession and state of the credit markets), local real estate
conditions (including the overall condition of the residential and
condominium 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, 2008 and the Company's Current Report on Form 8-K filed on
September 14, 2009. 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 EndedSeptember 30, Nine Months EndedSeptember 30,
2009 2008 2009 2008
REVENUES:
Rental property revenues $ 38,632 $ 38,337 $ 113,236 $ 109,344
Fee income 9,510 21,736 25,726 37,096
Multi-family residential unit sales 9,228 5,459 10,413 5,459
Residential lot and outparcel sales 1,150 3,747 7,026 6,746
Interest and other 675 991 2,946 3,291
59,195 70,270 159,347 161,936
COSTS AND EXPENSES:
Rental property operating expenses 17,402 14,641 49,874 42,663
General and administrative expenses 9,180 12,975 28,546 32,382
Separation expenses 724 45 3,094 351
Reimbursed general and administrative expenses 3,979 4,006 12,237 11,745
Depreciation and amortization 13,868 13,272 42,305 37,148
Multi-family residential unit cost of sales 7,372 4,715 8,557 4,715
Residential lot and outparcel cost of sales 979 1,917 4,732 3,695
Interest expense 10,793 8,705 31,783 22,347
Impairment loss 4,012 - 40,512 -
Other 1,723 1,975 7,701 4,279
70,032 62,251 229,341 159,325
GAIN ON EXTINGUISHMENT OF DEBT - - 12,498 -
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES, INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES AND GAIN ON SALE OF INVESTMENT PROPERTIES (10,837 ) 8,019 (57,496 ) 2,611
(PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS (54 ) (916 ) (7,406 ) 4,477
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
Equity in net income (loss) from unconsolidated joint ventures (19,926 ) 3,497 (19,337 ) 8,553
Impairment loss on investment in unconsolidated joint ventures (22,928 ) - (51,058 ) -
(42,854 ) 3,497 (70,395 ) 8,553
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES (53,745 ) 10,600 (135,297 ) 15,641
GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION 406 1,387 168,641 10,391
INCOME (LOSS) FROM CONTINUING OPERATIONS (53,339 ) 11,987 33,344 26,032
DISCONTINUED OPERATIONS, NET OF APPLICABLE INCOME TAX PROVISION:
Income (loss) from discontinued operations 3 (431 ) (4 ) (1,179 )
Gain on sale of investment properties 7 - 153 -
10 (431 ) 149 (1,179 )
NET INCOME (LOSS) (53,329 ) 11,556 33,493 24,853
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS (531 ) (766 ) (1,641 ) (1,688 )
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST (53,860 ) 10,790 31,852 23,165
DIVIDENDS TO PREFERRED STOCKHOLDERS (3,228 ) (3,812 ) (9,682 ) (11,437 )
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS $ (57,088 ) $ 6,978 $ 22,170 $ 11,728
PER COMMON SHARE INFORMATION - BASIC:
Income (loss) from continuing operations $ (0.95 ) $ 0.13 $ 0.40 $ 0.24
Loss from discontinued operations - - - (0.02 )
Basic net income (loss) available to common stockholders $ (0.95 ) $ 0.13 $ 0.40 $ 0.22
PER COMMON SHARE INFORMATION - DILUTED:
Income (loss) from continuing operations $ (0.95 ) $ 0.13 $ 0.40 $ 0.24
Loss from discontinued operations - - - (0.02 )
Diluted net income (loss) available to common stockholders $ (0.95 ) $ 0.13 $ 0.40 $ 0.22
DIVIDENDS DECLARED PER COMMON SHARE $ 0.15 $ 0.37 $ 0.65 $ 1.11
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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
FUNDS FROM OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(Unaudited, in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net Income (Loss) Available to Common Stockholders $ (57,088 ) $ 6,978 $ 22,170 $ 11,728
Depreciation and amortization:
Consolidated properties 13,868 13,272 42,305 37,148
Discontinued properties - 138 - 486
Share of unconsolidated joint ventures 2,192 1,621 6,524 4,485
Depreciation of furniture, fixtures and equipment and amortization of specifically identifiable intangible assets:
Consolidated properties (833 ) (989 ) (2,739 ) (2,720 )
Discontinued properties - (6 ) - (19 )
Share of unconsolidated joint ventures (10 ) (27 ) (34 ) (78 )
Gain on sale of investment properties, net of applicableincome tax provision:
Consolidated (406 ) (1,387 ) (168,641 ) (10,391 )
Discontinued properties (7 ) - (153 ) -
Share of unconsolidated joint ventures - - (12 ) -
Gain on sale of undepreciated investment properties 349 1,331 1,304 10,223
Funds From Operations Available to Common Stockholders $ (41,935 ) $ 20,931 $ (99,276 ) $ 50,862
Per Common Share - Basic:
Net Income (Loss) Available $ (0.95 ) $ 0.13 $ 0.40 $ 0.22 A service of YellowBrix, Inc.
