-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PgoiwWz66B+duih0zio+bQg80VwBqhWItvekdMRLe0eyldtXjo+6B8T6MpGtyX+o dMrQepfR4In10ok0P7IpvQ== /in/edgar/work/0000025232-00-000015/0000025232-00-000015.txt : 20001115 0000025232-00-000015.hdr.sgml : 20001115 ACCESSION NUMBER: 0000025232-00-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COUSINS PROPERTIES INC CENTRAL INDEX KEY: 0000025232 STANDARD INDUSTRIAL CLASSIFICATION: [6798 ] IRS NUMBER: 580869052 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-03576 FILM NUMBER: 764033 BUSINESS ADDRESS: STREET 1: 2500 WINDY RIDGE PKWY STE 1600 CITY: ATLANTA STATE: GA ZIP: 30339-5683 BUSINESS PHONE: 7709552200 MAIL ADDRESS: STREET 1: 2500 WINDY RIDGE PARKWAY STREET 2: SUITE 1600 CITY: ATLANTA STATE: GA ZIP: 30339-5683 10-Q 1 0001.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended September 30, 2000 Commission file number 0-3576 COUSINS PROPERTIES INCORPORATED A GEORGIA CORPORATION I.R.S. EMPLOYER IDENTIFICATION NO. 58-0869052 2500 WINDY RIDGE PARKWAY ATLANTA, GEORGIA 30339-5683 TELEPHONE: 770-955-2200 Registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and has been subject to such filing requirements for the past 90 days. At October 31, 2000, 49,023,188 shares of common stock of the Registrant were outstanding. COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except share amounts) September 30, December 31, 2000 1999 ------------ ------------ (Unaudited) ASSETS - ------ PROPERTIES: Operating properties, net of accumulated depreciation of $59,245 as of September 30, 2000 and $35,929 as of December 31, 1999 $ 586,448 $365,976 Land held for investment or future development 15,334 14,126 Projects under construction 203,971 348,065 Residential lots under development 4,518 4,687 ---------- -------- Total properties 810,271 732,854 CASH AND CASH EQUIVALENTS, at cost which approximates market 1,562 1,473 NOTES AND OTHER RECEIVABLES 38,323 37,303 INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 167,670 151,737 OTHER ASSETS 12,688 9,558 ---------- -------- TOTAL ASSETS $1,030,514 $932,925 ========== ======== LIABILITIES AND STOCKHOLDERS' INVESTMENT - ---------------------------------------- NOTES PAYABLE $ 392,792 $312,257 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 40,444 34,820 DEPOSITS AND DEFERRED INCOME 2,139 864 ---------- -------- TOTAL LIABILITIES 435,375 347,941 ---------- -------- DEFERRED GAIN 112,511 115,576 ---------- -------- MINORITY INTERESTS 30,760 31,689 ---------- -------- COMMITMENTS AND CONTINGENT LIABILITIES STOCKHOLDERS' INVESTMENT: Common stock, $1 par value, authorized 150,000,000 shares; issued 48,933,188 shares as of September 30, 2000 and 32,328,135 shares as of December 31, 1999 48,933 32,328 Additional paid-in capital 250,941 256,988 Treasury stock at cost, 153,600 shares as of September 30, 2000 and December 31, 1999 (4,990) (4,990) Unrealized gain/(loss) on securities (566) - Cumulative undistributed net income 157,550 153,393 ---------- -------- TOTAL STOCKHOLDERS' INVESTMENT 451,868 437,719 ---------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $1,030,514 $932,925 ========== ======== The accompanying notes are an integral part of these consolidated balance sheets. COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (UNAUDITED) (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2000 1999 2000 1999 ------- ------- -------- ------- REVENUES: Rental property revenues $30,216 $16,389 $ 80,465 $41,021 Development income 1,048 1,392 3,221 4,526 Management fees 1,219 1,181 3,670 3,542 Leasing and other fees 139 399 1,254 2,698 Residential lot and outparcel sales 3,011 6,032 8,921 13,683 Interest and other 1,702 1,044 4,299 2,738 ------- ------- -------- ------- 37,335 26,437 101,830 68,208 ------- ------- -------- ------- INCOME FROM UNCONSOLIDATED JOINT VENTURES 5,360 4,647 13,644 14,146 ------- ------- -------- ------- COSTS AND EXPENSES: Rental property operating expenses 8,340 5,203 22,948 12,231 General and administrative expenses 4,915 3,176 14,375 10,209 Depreciation and amortization 8,711 5,003 23,152 10,829 Stock appreciation right expense 318 19 684 155 Residential lot and outparcel cost of sales 2,102 5,299 7,269 11,447 Interest expense 4,474 - 7,969 430 Property taxes on undeveloped land 254 213 177 655 Other 1,534 133 2,764 1,243 ------- ------- -------- ------- 30,648 19,046 79,338 47,199 ------- ------- -------- ------- INCOME FROM OPERATIONS BEFORE INCOME TAXES 12,047 12,038 36,136 35,155 (BENEFIT) PROVISION FOR INCOME TAXES FROM OPERATIONS (621) 180 (745) 1,435 ------- ------- -------- ------- INCOME BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES 12,668 11,858 36,881 33,720 GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION 1,028 1,029 10,895 57,735 ------- ------- -------- ------- NET INCOME $13,696 $12,887 $ 47,776 $91,455 ======= ======= ======== ======= WEIGHTED AVERAGE SHARES 48,688 48,236 48,529 48,094 ======= ======= ======== ======= BASIC NET INCOME PER SHARE $ .28 $ .27 $ .98 $ 1.90 ======= ======= ======== ======= ADJUSTED WEIGHTED AVERAGE SHARES 50,100 49,307 49,741 49,020 ======= ======= ======== ======= DILUTED NET INCOME PER SHARE $ .27 $ .26 $ .96 $ 1.87 ======= ======= ======== ======= CASH DIVIDENDS DECLARED PER SHARE $ .30 $ .28 $ .90 $ .82 ======= ======= ======== ======= The accompanying notes are an integral part of these consolidated statements. COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (UNAUDITED) ($ in thousands) 2000 1999 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Income before gain on sale of investment properties $ 36,881 $ 33,720 Adjustments to reconcile income before gain on sale of investment properties to net cash provided by operating activities: Depreciation and amortization, net of minority interest's share 22,236 10,792 Stock appreciation right expense 684 155 Cash charges to expense accrual for stock appreciation rights (435) (170) Effect of recognizing rental revenues on a straight-line basis (1,806) (300) Income from unconsolidated joint ventures (13,644) (14,146) Operating distributions from unconsolidated joint ventures 24,080 27,417 Residential lot and outparcel cost of sales 6,587 10,531 Changes in other operating assets and liabilities: Change in other receivables (993) (461) Change in accounts payable and accrued liabilities 9,298 2,528 -------- -------- Net cash provided by operating activities 82,888 70,066 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Gain on sale of investment properties, net of applicable income tax provision 10,895 57,735 Adjustments to reconcile gain on sale of investment properties to net cash provided by sales activities: Cost of sales 17,510 28,178 Deferred income recognized (3,084) (3,095) Property acquisition and development expenditures (127,089) (252,833) Investment in unconsolidated joint ventures, including interest capitalized to equity investments (26,369) (29,698) Non-operating distributions from unconsolidated joint ventures - 2,000 Collection of notes receivable 2,088 6,070 Net cash received in formation of venture - 125,469 Investment in notes receivable (327) (4) Change in other assets, net (3,897) (2,323) -------- -------- Net cash used in investing activities (130,273) (68,501) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from line of credit 194,284 245,208 Repayment of line of credit (262,347) (212,996) Proceeds from other notes payable 154,500 - Dividends paid (43,619) (39,392) Common stock sold, net of expenses 10,558 9,206 Repayment of other notes payable (5,902) (4,299) -------- -------- Net cash provided by (used in) financing activities 47,474 (2,273) -------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 89 (708) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,473 1,349 -------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,562 $ 641 ======== ======== The accompanying notes are an integral part of these consolidated statements. COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2000 (UNAUDITED) 1. BASIS OF PRESENTATION - -------------------------- The Consolidated Financial Statements include the accounts of Cousins Properties Incorporated ("Cousins"), its majority owned partnerships and wholly owned subsidiaries, Cousins Real Estate Corporation ("CREC") and its subsidiaries and CREC II Inc. ("CREC II") and its subsidiaries. All of the entities included in the Consolidated Financial Statements are hereinafter referred to collectively as the "Company." Cousins has elected to be taxed as a real estate investment trust ("REIT"), and intends to distribute 100% of its federal taxable income to stockholders, thereby eliminating any liability for future corporate federal income taxes. Therefore, the results included herein do not include a federal income tax provision for Cousins. However, CREC and its subsidiaries and CREC II and its subsidiaries are taxed separately from Cousins as regular corporations. Accordingly, the Consolidated Statements of Income include a (benefit) provision for CREC and CREC II's income taxes. The Consolidated Financial Statements were prepared by the Company without audit, but in the opinion of management reflect all adjustments necessary for the fair presentation of the Company's financial position as of September 30, 2000 and results of operations for the three and nine month periods ended September 30, 2000 and 1999. Results of operations for the interim 2000 periods are not necessarily indicative of results expected for the full year. While certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, the Company believes that the disclosures herein are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1999. The accounting policies employed are the same as those shown in Note 1 to the Consolidated Financial Statements included in such Form 10-K. Certain 1999 amounts have been reclassified to conform with the 2000 presentation. 2. SUPPLEMENTAL INFORMATION CONCERNING CASH FLOWS - --------------------------------------------------- Interest (net of $12,647,000 and $11,227,000 capitalized in 2000 and 1999, respectively) and income taxes paid (net of refunds of $27,000 in 2000) were as follows for the nine months ended September 30, 2000 and 1999 ($ in thousands): 2000 1999 ------ ----- Interest paid $6,644 $1,170 Income taxes paid $2,840 $1,338 During the nine months ended September 30, 2000, approximately $197,827,000 was transferred from Projects Under Construction to Operating Properties and approximately $1,066,000 was transferred from Land Held for Investment or Future Development to Residential Lots Under Development. In connection with the Company's stock split completed on October 2, 2000, approximately $16,259,000 was transferred from Common Stock to Additional Paid-in-Capital (see Note 6). At September 30, 2000, cash and cash equivalents included approximately $638,000 from a property sale held in escrow pending reinvestment in a tax-deferred exchange. Subsequent to September 30, 2000, the net proceeds from the sale were released from escrow as no properties into which to exchange were identified. 3. NOTES PAYABLE AND INTEREST EXPENSE - -- ---------------------------------- At September 30, 2000 and December 31, 1999, notes payable included the following ($ in thousands):
September 30, 2000 December 31, 1999 ------------------------------------ ------------------------------------- Share of Share of Unconsolidated Unconsolidated Company Joint Ventures Total Company Joint Ventures Total -------- -------------- -------- -------- -------------- -------- Floating Rate Lines of Credit and Construction Loans $ 62,587 $ 61,129 $123,716 $130,651 $ 28,504 $159,155 Other Debt (primarily non-recourse fixed rate mortgages) 330,205 187,092 517,297 181,606 190,235 371,841 -------- -------- -------- -------- -------- -------- $392,792 $248,221 $641,013 $312,257 $218,739 $530,996 ======== ======== ======== ======== ======== ========
For the three and nine months ended September 30, 2000, interest expense was recorded as follows ($ in thousands): Three Months Ended Nine Months Ended September 30, 2000 September 30, 2000 ------------------------------------ ------------------------------------ Share of Share of Unconsolidated Unconsolidated Company Joint Ventures Total Company Joint Ventures Total ------- -------------- ------- ------- -------------- ------- Interest Expensed $4,474 $3,574 $ 8,048 $ 7,969 $10,761 $18,730 Interest Capitalized 2,990 1,209 4,199 12,647 2,611 15,258 ------ ------ ------- ------- ------- ------- $7,464 $4,783 $12,247 $20,616 $13,372 $33,988 ====== ====== ======= ======= ======= =======
In July 2000, the Company completed the $39 million financing of The Avenue East Cobb. This non-recourse mortgage note payable has an interest rate of 8.39% and a maturity of August 1, 2010. In August 2000, the Company completed the $25.5 million financing of Meridian Mark Plaza. This non-recourse mortgage note payable has an interest rate of 8.27% and a maturity of October 1, 2010. During the nine months ended September 30, 2000, interest was capitalized related to the Company's and the Company's share of unconsolidated joint venture projects under construction which had an average balance of approximately $264 million. 4. EARNINGS PER SHARE DATA - --------------------------- Weighted average shares and adjusted weighted average shares are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- 2000 1999 2000 1999 ------ ------ ------ ------ Weighted average shares 48,688 48,236 48,529 48,094 Dilutive potential common shares 1,412 1,071 1,212 926 Adjusted weighted average shares 50,100 49,307 49,741 49,020 ====== ====== ====== ====== Anti-dilutive options not included 6 - 10 - ====== ====== ====== ====== 5. REPORTABLE SEGMENTS - ----------------------- The Company has three reportable segments: Office Division, Retail Division and Land Division. The Office Division and Retail Division develop, lease and manage office buildings and retail centers. The Land Division owns various tracts of strategically located land which are being held for future development. The Land Division also develops single-family residential communities which are parceled into lots and sold to various home builders. Effective September 30, 2000, the Medical Office Division was combined with the Office Division. The management of the Company evaluates performance of its reportable segments based on Funds From Operations ("FFO"). The Company calculates its FFO using the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO adjusted to (i) eliminate the recognition of rental revenues on a straight-line basis, (ii) reflect stock appreciation right expense on a cash basis and (iii) recognize certain fee income as cash is received rather than when recognized in the financial statements. The Company believes its FFO presentation more properly reflects its operating results. The Company's reportable segments are broken down based on what type of product the division provides. The divisions are managed separately because each product they provide has separate and distinct development issues, leasing and/or sales strategies and management issues. The notations (100%) and (JV) used in the following tables indicate wholly owned and unconsolidated joint ventures, respectively, and all amounts are in thousands.
Three Months Ended Office Retail Land Unallocated September 30, 2000 Division Division Division and Other Total - ------------------ -------- -------- -------- ----------- ------- Rental property revenues (100%) $21,805 $8,011 $ - $ 25 $29,841 Rental property revenues (JV) 16,927 561 - - 17,488 Development income, management fees and leasing and other fees (100%) 2,280 78 48 - 2,406 Development income, management fees and leasing and other fees (JV) 1,725 - - - 1,725 Other income (100%) - - 3,011 1,702 4,713 Other income (JV) - 54 7 26 87 ------------------------------------------------------------- Total revenues 42,737 8,704 3,066 1,753 56,260 ------------------------------------------------------------- Rental property operating expenses (100%) 7,148 2,006 - 1 9,155 Rental property operating expenses (JV) 4,656 135 - - 4,791 Other expenses (100%) 3,361 1,880 2,591 4,666 12,498 Other expenses (JV) 1,181 68 10 3,953 5,212 ------------------------------------------------------------- Total expenses 16,346 4,089 2,601 8,620 31,656 ------------------------------------------------------------- Gain on sale of undepreciated investment properties - - - - - ------------------------------------------------------------- Consolidated funds from operations 26,391 4,615 465 (6,867) 24,604 ------------------------------------------------------------- Depreciation and amortization (100%) (6,108) (2,084) - (1) (8,193) Depreciation and amortization (JV) (3,637) (201) - - (3,838) Effect of the recognition of rental revenues on a straight-line basis (100%) 375 - - - 375 Effect of the recognition of rental revenues on a straight-line basis (JV) (99) - - - (99) Adjustment to reflect stock appreciation right expense on an accrual basis - - - (181) (181) Gain on sale of investment properties, net of applicable income tax provision - - - 1,028 1,028 ------------------------------------------------------------- Net income 16,922 2,330 465 (6,021) 13,696 ------------------------------------------------------------- Benefit for income taxes from operations - - - (621) (621) ------------------------------------------------------------- Income from operations before taxes $16,922 $2,330 $ 465 $(6,642) $13,075 =============================================================
Nine Months Ended Office Retail Land Unallocated September 30, 2000 Division Division Division and Other Total - ------------------ -------- -------- -------- ----------- ---------- Rental property revenues (100%) $ 58,015 $20,579 $ - $ 65 $ 78,659 Rental property revenues (JV) 48,828 1,702 - - 50,530 Development income, management fees and leasing and other fees (100%) 7,689 302 154 - 8,145 Development income, management fees and leasing and other fees (JV) 3,376 - - - 3,376 Other income (100%) - 1,075 7,846 4,299 13,220 Other income (JV) - 54 73 58 185 --------------------------------------------------------------- Total revenues 117,908 23,712 8,073 4,422 154,115 --------------------------------------------------------------- Rental property operating expenses (100%) 19,320 5,102 - - 24,422 Rental property operating expenses (JV) 13,505 422 - - 13,927 Other expenses (100%) 9,936 6,198 7,318 8,943 32,395 Other expenses (JV) 2,246 68 41 12,035 14,390 --------------------------------------------------------------- Total expenses 45,007 11,790 7,359 20,978 85,134 --------------------------------------------------------------- Gain on sale of undepreciated investment properties - - 564 - 564 --------------------------------------------------------------- Consolidated funds from operations 72,901 11,922 1,278 (16,556) 69,545 --------------------------------------------------------------- Depreciation and amortization (100%) (16,366) (5,158) - (3) (21,527) Depreciation and amortization (JV) (11,060) (593) - - (11,653) Effect of the recognition of rental revenues on a straight-line basis (100%) 1,806 - - - 1,806 Effect of the recognition of rental revenues on a straight-line basis (JV) (477) - - - (477) Adjustment to reflect stock appreciation right expense on an accrual basis - - - (249) (249) Gain on sale of investment properties, net of applicable income tax provision - - - 10,331 10,331 --------------------------------------------------------------- Net income 46,804 6,171 1,278 (6,477) 47,776 --------------------------------------------------------------- Benefit for income taxes from operations - - - (745) (745) --------------------------------------------------------------- Income from operations before taxes $ 46,804 $ 6,171 $ 1,278 $(7,222) $ 47,031 =============================================================== Total assets $689,177 $282,907 $12,034 $46,396 $1,030,514 =============================================================== Investment in unconsolidated joint ventures $143,335 $16,890 $ 7,445 $ - $ 167,670 ===============================================================
Three Months Ended Office Retail Land Unallocated September 30, 1999 Division Division Division and Other Total - ------------------ -------- -------- -------- ----------- ------- Rental property revenues (100%) $11,431 $4,831 $ - $ 29 $16,291 Rental property revenues (JV) 15,508 939 - - 16,447 Development income, management fees and leasing and other fees (100%) 2,781 131 60 - 2,972 Development income, management fees and leasing and other fees (JV) 1,796 - - - 1,796 Other income (100%) - 2,662 3,370 1,044 7,076 Other income (JV) - - 6 361 367 ------------------------------------------------------------- Total revenues 31,516 8,563 3,436 1,434 44,949 ------------------------------------------------------------- Rental property operating expenses (100%) 4,262 999 - (58) 5,203 Rental property operating expenses (JV) 4,348 196 - - 4,544 Other expenses (100%) - 2,499 3,013 3,749 9,261 Other expenses (JV) 1,051 - 19 4,017 5,087 ------------------------------------------------------------- Total expenses 9,661 3,694 3,032 7,708 24,095 ------------------------------------------------------------- Gain on sale of undepreciated investment properties - - - - - ------------------------------------------------------------- Consolidated funds from operations 21,855 4,869 404 (6,274) 20,854 ------------------------------------------------------------- Depreciation and amortization (100%) (3,887) (904) - - (4,791) Depreciation and amortization (JV) (3,891) (324) - - (4,215) Effect of the recognition of rental revenues on a straight-line basis (100%) 98 - - - 98 Effect of the recognition of rental revenues on a straight-line basis (JV) (117) - - - (117) Adjustment to reflect stock appreciation right expense on an accrual basis - - - 29 29 Gain on sale of investment properties, net of applicable income tax provision - - - 1,029 1,029 ------------------------------------------------------------- Net income 14,058 3,641 404 (5,216) 12,887 ------------------------------------------------------------- Provision for income taxes from operations - - - 180 180 ------------------------------------------------------------- Income from operations before income taxes $14,058 $3,641 $ 404 $(5,036) $13,067 =============================================================
Nine Months Ended Office Retail Land Unallocated September 30, 1999 Division Division Division and Other Total - ------------------ -------- -------- -------- --------- ----- Rental property revenues (100%) $ 26,251 $14,264 $ - $ 206 $ 40,721 Rental property revenues (JV) 46,905 9,442 - - 56,347 Development income, management fees and leasing and other fees (100%) 9,586 1,000 180 - 10,766 Development income, management fees and leasing and other fees (JV) 2,247 - - - 2,247 Other income (100%) - 3,477 10,206 2,738 16,421 Other income (JV) - - 255 436 691 --------------------------------------------------------------- Total revenues 84,989 28,183 10,641 3,380 127,193 --------------------------------------------------------------- Rental property operating expenses (100%) 9,125 3,133 - (29) 12,229 Rental property operating expenses (JV) 13,244 2,257 - - 15,501 Other expenses (100%) - 2,857 9,245 13,997 26,099 Other expenses (JV) 1,218 - 91 11,737 13,046 --------------------------------------------------------------- Total expenses 23,587 8,247 9,336 25,705 66,875 --------------------------------------------------------------- Gain on sale of undepreciated investment properties - - 222 - 222 --------------------------------------------------------------- Consolidated funds from operations 61,402 19,936 1,527 (22,325) 60,540 --------------------------------------------------------------- Depreciation and amortization (100%) (7,581) (2,582) - (158) (10,321) Depreciation and amortization (JV) (13,461) (2,779) - - (16,240) Effect of the recognition of rental revenues on a straight-line basis (100%) 300 - - - 300 Effect of the recognition of rental revenues on a straight-line basis (JV) (291) (61) - - (352) Adjustment to reflect stock appreciation right expense on an accrual basis - - - 15 15 Gain on sale of investment properties, net of applicable income tax provision - - - 57,513 57,513 --------------------------------------------------------------- Net income 40,369 14,514 1,527 35,045 91,455 --------------------------------------------------------------- Provision for income taxes from operations - - - 1,435 1,435 --------------------------------------------------------------- Income from operations before income taxes $ 40,369 $14,514 $ 1,527 $36,480 $ 92,890 =============================================================== Total assets $562,359 $228,434 $10,759 $50,760 $852,312 =============================================================== Investment in unconsolidated joint ventures $127,765 $17,708 $ 4,545 $ - $150,018 ===============================================================
Reconciliation to Consolidated Revenues - --------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, ---------------------- ---------------------- 2000 1999 2000 1999 ------- ------- -------- ------- Rental property revenues (100%) $29,841 $16,291 $ 78,659 $40,721 Effect of the recognition of rental revenues on a straight-line basis (100%) 375 98 1,806 300 Development income, management fees and leasing and other fees (100%) 2,406 2,972 8,145 10,766 Residential lot and outparcel sales 3,011 6,032 8,921 13,683 Interest and other 1,702 1,044 4,299 2,738 ---------------------- ----------------------- Total consolidated revenues $37,335 $26,437 $101,830 $68,208 ====================== =======================
6. STOCK SPLIT EFFECTED IN THE FORM OF A STOCK DIVIDEND - -------------------------------------------------------- On October 2, 2000, the Company completed a 3-for-2 stock split effected in the form of a 50% stock dividend to stockholders of record on September 15, 2000. All prior period shares outstanding, per share amounts and stock prices have been restated. Common Stock was increased by the par value of the new shares of approximately $16,259,000 with the corresponding decrease recorded to Additional Paid-in-Capital in the Consolidated Balance Sheets. PART I. FINANCIAL INFORMATION - ------------------------------ Item 2. Management's Discussion and Analysis of Financial Condition and - ----------------------------------------------------------------------------- Results of Operations for the Three and Nine Months Ended --------------------------------------------------------- September 30, 2000 and 1999 --------------------------- Results of Operations: - ---------------------- Rental Property Revenues and Operating Expenses. Rental property revenues increased approximately $13,827,000 and $39,444,000 in the three and nine month 2000 periods, respectively. Rental property revenues from the Company's office portfolio increased approximately $10,651,000 and $33,272,000 in the three and nine month 2000 periods, respectively. The June 1999 acquisition of Inforum increased rental property revenues approximately $2,216,000 and $10,921,000 in the three and nine month 2000 periods, respectively. Additionally, average economic occupancy at Inforum increased for the three month 2000 period to 85% as compared to 60% for the three month 1999 period, which further contributed to the increase in rental property revenues from Inforum. Rental property revenues from 101 Second Street, which became partially operational for financial reporting purposes in April 2000, increased approximately $4,282,000 and $8,239,000 for the three and nine month 2000 periods, respectively. Three office buildings, AT&T Wireless Services Headquarters, 333 John Carlyle and 555 North Point Center East, which became partially operational for financial reporting purposes in September 1999, May 1999 and February 2000, respectively, contributed to the increase by approximately $1,862,000, $123,000 and $789,000, respectively, in the three month 2000 period and approximately $5,531,000, $1,637,000 and $1,692,000, respectively, in the nine month 2000 period. 600 University Park Place became partially operational for financial reporting purposes in June 2000 which contributed approximately $289,000 and $370,000 to the increase in the three and nine month 2000 periods, respectively. Additionally, rental property revenues from 615 Peachtree Street increased approximately $122,000 and $423,000 in the three and nine month 2000 periods, respectively, as the average economic occupancy for the nine month 2000 period increased to 81% from 63% in the nine month 1999 period. Meridian Mark Plaza and Northside/Alpharetta II became partially operational for financial reporting purposes in April 1999 and September 1999, respectively, which contributed approximately $299,000 and $609,000 to the increase in the three month 2000 period, respectively, and approximately $1,790,000 and $1,918,000 to the increase in the nine month 2000 period, respectively. AtheroGenics became partially operational in March 1999 which contributed approximately $295,000 to the increase for the nine month 2000 period. Rental property revenues from the Company's retail portfolio increased approximately $3,180,000 and $6,315,000 in the three and nine month 2000 periods, respectively. Rental property revenues from The Avenue East Cobb, which became partially operational for financial reporting purposes in September 1999, increased approximately $1,161,000 and $3,907,000 in the three and nine month 2000 periods, respectively. Two retail centers, The Avenue of the Peninsula and Mira Mesa MarketCenter, became partially operational in May 2000, which contributed approximately $1,202,000 and $1,188,000, respectively, to the increase in the three month 2000 period and $1,893,000 and $1,618,000, respectively, to the increase in the nine month 2000 period. The increases were partially offset by a decrease of approximately $615,000 and $1,260,000 in the three and nine month 2000 periods, respectively, from the sale of Laguna Niguel Promenade in March 2000 and by approximately $157,000 in the nine month 2000 period from the sale of Abbotts Bridge Station in February 1999. Rental property operating expenses increased approximately $3,137,000 and $10,717,000 in the three and nine month 2000 periods, respectively, due to the aforementioned office buildings, medical office buildings and retail centers becoming partially operational, as well as the acquisition of Inforum in June 1999. The increases were partially offset by the aforementioned sales of Laguna Niguel Promenade in March 2000 and Abbotts Bridge Station in February 1999. Development Income. Development income decreased approximately $344,000 and $1,305,000 in the three and nine month 2000 periods, respectively. Development income decreased approximately $706,000 in the nine month 2000 period due to development income recognized in 1999 from the build-to-suit for Walgreens on an outparcel at Colonial Plaza MarketCenter. Development income also decreased approximately $526,000 in the nine month 2000 period from Cousins LORET Venture, L.L.C. ("Cousins LORET") related to the development of The Pinnacle in 1999 and approximately $170,000 and $628,000 in the three and nine month 2000 periods, respectively, from the third party development of Total System Services, Inc.'s corporate headquarters in 1999. The decrease in the nine month 2000 period was partially offset by increases of approximately $463,000 and $162,000 in development income from the Crawford Long Hospital campus redevelopment and the related joint venture medical office building and from the third party development of Cox Enterprises' corporate headquarters, respectively. Leasing and Other Fees. Leasing and other fees decreased approximately $260,000 and $1,444,000 in the three and nine month 2000 periods, respectively. Leasing fees decreased approximately $987,000 in the nine month 2000 period due to a lease signed by CREC at the Inforum office building executed prior to the Company's acquisition of the building in 1999. Leasing fees also decreased approximately $243,000 in the nine month 2000 period from 285 Venture, LLC as a higher amount of leasing fees from the lease-up of 1155 Perimeter Center West were recognized in 1999. Leasing fees from Cousins LORET decreased approximately $189,000 and $730,000 in the three and nine month 2000 periods, respectively, primarily related to the lease-up of The Pinnacle. The decrease in leasing and other fees was partially offset by an increase of approximately $330,000 in the nine month 2000 period, due to a fee recognized for representing the owners of a third party managed medical office building in the sale of that property. Residential Lot and Outparcel Sales and Cost of Sales. Residential lot and outparcel sales decreased approximately $3,021,000 and $4,762,000 in the three and nine month 2000 periods, respectively. The decrease in the three month 2000 period was mainly due to one outparcel sale for $2,662,000 in the three month 1999 period compared to no outparcel sales in the three month 2000 period. The decrease in the three month 2000 period was also partially due to a decrease in residential lot sales of approximately $359,000, although the number of residential lot sales increased from 64 lots in the three month 1999 period to 67 lots in the three month 2000 period. The lots sold in 1999 had higher sales price points as compared to 2000. The decrease in the nine month 2000 period was mainly due to a decrease in outparcel sales from $3,477,000 in 1999 from two large outparcel sales to $1,075,000 in 2000 from two smaller outparcel sales. Also, residential lot sales decreased from 220 lots in 1999 to 182 lots in 2000, which decreased residential lot sales by approximately $2,360,000. Also, as previously mentioned, the lots sold in 1999 had higher sales price points as compared to 2000. Residential lot and outparcel cost of sales decreased approximately $3,197,000 and $4,178,000 in the three and nine month 2000 periods, respectively. Residential lot cost of sales decreased approximately $661,000 and $2,013,000 in the three and nine month 2000 periods, respectively, due to the aforementioned difference in price points of residential lots sold in both the three and nine month 2000 periods and the decrease in the number of lots sold in the nine month 2000 period. The decrease in cost of sales in the three month 2000 period was also due to a decrease in outparcel cost of sales of approximately $2,536,000 due to the aforementioned outparcel sale in the three month 1999 period, as compared to no outparcel sales in the three month 2000 period. Outparcel cost of sales decreased $2,165,000 in the nine month 2000 period due to the aforementioned two large outparcel sales in 1999, as compared to two smaller outparcel sales in 2000. Interest and Other Income. Interest and other income increased approximately $658,000 and $1,561,000 in the three and nine month 2000 periods, respectively, primarily due to interest income of approximately $476,000 and $1,270,000 in the three and nine month 2000 periods, respectively, from the $18.6 million note receivable from Charlotte Gateway Village, LLC ("Gateway"). The increase in both the three and nine month 2000 periods was also due to approximately $327,000 of additional interest income recognized from the 650 Massachusetts Avenue mortgage notes ("650 mortgage notes') (see Note 3 of "Notes to Consolidated Financial Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, for a detailed discussion of the 650 mortgage notes). The principal payments on the $5 million non-amortizing non-interest bearing note (which note has a remaining balance of approximately $543,000) have reduced the Company's carrying value of the 650 mortgage notes such that the Company currently estimates that the carrying value of the 650 mortgage notes will be approximately $4.6 million lower than the 650 mortgage notes' balance upon maturity. As a result, beginning in the third quarter of 2000 and continuing until the 650 mortgage notes mature on December 31, 2003, the Company is amortizing this difference as additional interest income. Income from Unconsolidated Joint Ventures. (All amounts reflect the Company's share of joint venture income.) Income from unconsolidated joint ventures increased approximately $713,000 in the three month 2000 period and decreased approximately $502,000 in the nine month 2000 period. Income from Wildwood Associates increased approximately $290,000 and $1,142,000 in the three and nine month 2000 periods, respectively. The increases were partially due to increases in income before depreciation, amortization and interest expense from the 3200 Windy Hill Road Building of approximately $194,000 and $626,000 in the three and nine month 2000 periods, respectively, due to an increase in the nine month average economic occupancy to 100% in 2000 from 88% in 1999. The increase in the nine month 2000 period was also partially due to an increase in income before depreciation, amortization and interest expense from the 4200 Wildwood Parkway Building of approximately $210,000 due to an increase in average economic occupancy to 100% in 2000 from 87% in 1999. Further contributing to the increase in the nine month 2000 period was an increase of approximately $179,000 in income before depreciation, amortization and interest expense from the 2500 Windy Ridge Parkway Building, as average economic occupancy increased to 99% in 2000 from 94% in 1999. Income from Haywood Mall Associates decreased approximately $2,379,000 in the nine month 2000 period due to the June 1999 sale of the Company's 50% interest in Haywood Mall. Income from Hickory Hollow Associates decreased $331,000 in both the three and nine month 2000 periods, respectively, due to the sale of all of the remaining land in 1999. This partnership was dissolved in early 2000. Income from Cousins LORET decreased approximately $121,000 and $507,000 in the three and nine month 2000 periods, respectively. Depreciation and amortization expense increased approximately $206,000 and $872,000 in the three and nine month 2000 periods, respectively, due to The Pinnacle becoming fully operational for financial reporting purposes in December 1999, which contributed to the decrease in income from Cousins LORET. Additionally, capitalized interest decreased approximately $186,000 and $948,000 in the three and nine month 2000 periods, respectively, due to The Pinnacle becoming fully operational. Further contributing to the decrease in income from Cousins LORET was decreased interest income for the nine month 2000 period of $343,000 due to investments made in the nine month 1999 period using the proceeds from the $70 million financing of The Pinnacle, which was funded in December 1998. Partially offsetting the decreases were increases in income before depreciation, amortization and interest expense from The Pinnacle of approximately $368,000 and $1,513,000 in the three and nine month 2000 periods, respectively, due to an increase in the average economic occupancy to 91% in 2000 from 80% in 1999. Further offsetting the decrease in the nine month 2000 period was an increase of approximately $120,000 in income before depreciation, amortization and interest expense from Two Live Oak Center due to an increase in the average economic occupancy to 100% in 2000 from 98% in 1999. Income from Gateway increased $669,000 in both the three and nine month 2000 periods. The Company began recognizing its 11.46% current preferred return on its equity in Gateway during the third quarter of 2000. Income from 285 Venture, LLC increased approximately $198,000 and $478,000 in the three and nine month 2000 periods, respectively, as 1155 Perimeter Center West became partially operational in January 2000. Income from CP Venture LLC increased $393,000 in the nine month 2000 period primarily due to a decrease in amortization expense. General and Administrative Expenses. General and administrative expenses increased approximately $1,739,000 and $4,166,000 in the three and nine month 2000 periods, respectively. The increase in both periods was primarily due to the Company's continued expansion. Depreciation and Amortization. Depreciation and amortization increased approximately $3,708,000 and $12,323,000 in the three and nine month 2000 periods, respectively, due to the aforementioned acquisition of Inforum in June 1999 and the aforementioned office buildings, retail centers and medical office buildings becoming partially operational. Stock Appreciation Right Expense. The stock appreciation right expense increased approximately $299,000 and $529,000 in the three and nine month 2000 periods, respectively. This non-cash item is primarily related to the Company's stock price, which was $22.625, $25.6667 and $28.7083 at December 31, 1999, June 30, 2000 and September 30, 2000, respectively; and $21.50, $22.5417 and $22.625 at December 31, 1998, June 30, 1999 and September 30, 1999, respectively. Interest Expense. Interest expense increased approximately $4,474,000 and $7,539,000 in the three and nine month 2000 periods, respectively. Interest expense before capitalization increased to approximately $7,464,000 and $20,616,000 in the three and nine month 2000 periods, respectively, from $4,018,000 and $11,657,000 in the three and nine month 1999 periods, respectively, due to higher debt levels. Interest capitalized to projects under development decreased $1,028,000 (an increase in interest expense) in the three month 2000 period due to a lower level of projects under development in the three month 2000 period. Partially offsetting the increase in interest expense in the nine month 2000 period was an increase of approximately $1,420,000 in interest capitalized to projects under development (a reduction of interest expense) to $12,647,000 in 2000 from $11,227,000 in 1999. Property Taxes on Undeveloped Land. Property taxes on undeveloped land decreased approximately $478,000 in the nine month 2000 period due to the reversal in the first quarter of 2000 of estimated amounts accrued for anticipated reassessments of the Company's North Point and Wildwood land holdings. The final reassessments, after appeal, were lower than the anticipated reassessments, and the accrual was reduced. Other Expenses. Other expenses increased approximately $1,401,000 and $1,521,000 in the three and nine month 2000 periods, respectively. The increases in both the three and nine month 2000 periods were partially due to the minority interest's current participation in 101 Second Street of approximately $502,000. The increases in both the three and nine month 2000 periods were also due to a reversal in 1999 of an accrual of approximately $461,000. This accrual was related to an indemnification an insurance company in rehabilitation had made to the Company in 1974 but had defaulted on in 1993. The insurance company, while still in rehabilitation, has been determined to be solvent, and the Company's claim has been formally accepted and approved. The increase in the three month 2000 period was also partially due to an increase of $430,000 in 2000 in predevelopment expense. The nine month 2000 period increase was also due to an increase of approximately $608,000 in Prudential's minority interest in CP Venture Three LLC (see Note 5 of "Notes to Consolidated Financial Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999). (Benefit) Provision for Income Taxes from Operations. (Benefit) provision for income taxes from operations decreased approximately $801,000 in the three month 2000 period from a provision of $180,000 in 1999 to a benefit of $621,000 in 2000. The decrease in the three month 2000 period was mainly due to a true-up of approximately $548,000 in the accrual required for income taxes related to the 1999 income tax return for CREC and its subsidiaries which was filed September 15, 2000. (Benefit) provision for income taxes from operations decreased approximately $2,180,000 in the nine month 2000 period from a provision of $1,435,000 in 1999 to a benefit of $745,000 in 2000. The decrease in the nine month period was partially due to the aforementioned true-up of approximately $548,000. The decrease in the nine month period was also due to a decrease in CREC and its subsidiaries' income from operations before income taxes from $2,664,000 in the nine month 1999 period to a loss from operations before income taxes of $1,127,000 in the nine month 2000 period. Gain on Sale of Investment Properties. Gain on sale of investment properties decreased approximately $46,840,000 in the nine month 2000 period. The 2000 gain included the following: the March 2000 sale of Laguna Niguel Promenade ($7.2 million gain), the April 2000 sale of 2 acres of North Point land ($.6 million gain) and the amortization of deferred gain from CP Venture LLC ($3.1 million gain). The 1999 gain included the following: the January 1999 sale of 3 acres of McMurray land ($.1 million gain), the February 1999 sale of Abbotts Bridge Station, a neighborhood retail center ($3.5 million gain), the March 1999 sale of Kennesaw Crossings neighborhood retail center ($.9 million gain), the May 1999 sale of 2 acres of Hidden Hills land ($.1 million gain), the June 1999 sale of the Company's 50% interest in Haywood Mall ($50.1 million gain) and the amortization of deferred gain from CP Venture LLC ($3.0 million gain). Liquidity and Capital Resources: - -------------------------------- Financial Condition. The Company's adjusted debt (including its pro rata share of unconsolidated joint venture debt) was 29% of total market capitalization at September 30, 2000. Adjusted debt is defined as the Company's debt and the Company's pro rata share of unconsolidated joint venture debt as disclosed in Note 4 of "Notes to Consolidated Financial Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, excluding the Gateway debt as it is fully exculpated debt which is supported by a long-term lease to Bank of America Corporation. The Company has development and acquisition projects in various planning stages. The Company currently intends to finance these projects, as well as the completion of projects currently under construction, using its existing lines of credit (increasing those lines of credit as required), long-term non-recourse financing on the Company's unleveraged projects, joint ventures, project sales and other financings as market conditions warrant. In September 1996, the Company filed a shelf registration statement with the Securities and Exchange Commission ("SEC") for the offering from time to time of up to $200 million of common stock, warrants to purchase common stock and debt securities, of which approximately $132 million remains available at September 30, 2000. The Company from time to time evaluates opportunities and strategic alternatives, including but not limited to joint ventures, mergers and acquisitions and new private or publicly-owned entities created to hold existing assets and acquire new assets. These alternatives may also include sales of single or multiple assets when the Company perceives opportunities to capture value and redeploy proceeds or distribute proceeds to stockholders. The Company's consideration of these alternatives is part of its ongoing strategic planning process. There can be no assurance that any such alternative, if undertaken and consummated, would not materially adversely affect the Company or the market price of Cousins' Common Stock. Cash Flows. Net cash provided by operating activities increased approximately $12.8 million in 2000. Changes in other operating assets and liabilities increased approximately $6.2 million which contributed to the increase in net cash provided by operating activities. Also contributing to the increase in net cash provided by operating activities was an increase in income before gain on sale of investment properties of approximately $3.2 million and an increase in depreciation and amortization of approximately $11.4 million. Residential lot and outparcel cost of sales decreased approximately $3.9 million, which partially offset the increase in net cash provided by operating activities. Operating distributions from unconsolidated joint ventures decreased approximately $3.3 million, partially due to approximately $4.0 million of operating distributions from Cousins LORET in 1999, as compared to approximately $2.0 million of operating distributions in 2000. Additionally, operating distributions from CP Venture LLC decreased approximately $5.9 million in 2000. The final distribution of $4.1 million was made in 1999 from Haywood Mall Associates due to the sale of the Company's 50% interest in Haywood Mall in June 1999, further contributing to the decrease in operating distributions from unconsolidated joint ventures. Partially offsetting the decrease in operating distributions from unconsolidated joint ventures was an increase of approximately $3.4 million of operating distributions from Wildwood Associates, an increase of approximately $1.8 million of operating distributions from Temco Associates and an increase of approximately $2.4 million of operating distributions from Cousins Stone LP, which was formed in June 1999. Additionally, Gateway had operating distributions of approximately $.6 million as the Company received its 11.46% current preferred return, and operating distributions were approximately $.6 million higher in 2000 from CSC Associates, L.P. Furthermore, the effect of recognizing rental revenues on a straight-line basis partially offset the increase in net cash provided by operating activities by approximately $1.5 million. Net cash used in investing activities increased approximately $61.8 million in 2000. Net cash received in formation of venture (see Note 5 of "Notes to Consolidated Financial Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999) decreased approximately $125.5 million in 2000 which partially caused the increase in net cash used in investing activities. Net cash provided by sales activities decreased approximately $57.5 million also partially contributing to the increase in net cash used in investing activities primarily due to a higher gain recognized from the sale of the Company's 50% interest in Haywood Mall in 1999, as compared to the sale of Laguna Niguel Promenade in 2000. The collection of notes receivable decreased approximately $4.0 million due to the repayment of the Cousins LORET note receivable in 1999, which also contributed to the increase in net cash used in investing activities. Change in other assets, net, also increased approximately $1.6 million, which further contributed to the increase in net cash used in investing activities. Non-operating distributions from unconsolidated joint ventures also decreased approximately $2.0 million, which contributed to the increase in net cash used in investing activities. In 1999, the Company received non-operating distributions of approximately $2.0 million from Wildwood Associates as compared to none in 2000. Property acquisition and development expenditures decreased approximately $125.7 million in 2000 as a result of the Company having a higher level of projects under development in 1999, which partially offset the increase in net cash used in investing activities. Investment in unconsolidated joint ventures decreased approximately $3.3 million, which also partially offset the increase in net cash used in investing activities, partially due to contributions of approximately $9.8 million in 1999 to Gateway. Partially offsetting the decrease in contributions were contributions of approximately $5.6 million in 2000 to CPI/FSP I, LP, a venture formed in May 2000 to develop Austin Research Park and approximately $1.0 million in 2000 to Crawford Long-CPI, LLC, a venture formed in November 1999. Net cash provided by financing activities increased approximately $49.7 million in 2000 from net cash used in financing activities in 1999. The increase in 2000 was mainly attributable to proceeds from other notes payable of $154.5 million from the completions of the $90 million non-recourse mortgage of 101 Second Street in April 2000, the $39 million non-recourse mortgage of The Avenue East Cobb in July 2000 and the $25.5 million non-recourse mortgage of Meridian Mark Plaza in August 2000. Common Stock sold, net of expenses, increased approximately $1.3 million which also contributed to the increase in net cash provided by financing activities. The increase was partially offset by a decrease of approximately $100.3 million in the net amount drawn on the Company's line of credit in 2000. An increase in the dividends paid per share to $.90 in 2000 from $.82 in 1999 and an increase in the number of shares outstanding also partially offset the increase as dividends paid increased approximately $4.2 million. Repayment of other notes payable increased approximately $1.6 million in 2000, which partially offset the increase in net cash provided by financing activities. Supplemental Financial Information: - -----------------------------------
Depreciation and amortization expense included the following components for the three and nine months ended September 30, 2000 ($ in thousands): Three Months Ended Nine Months Ended September 30, 2000 September 30, 2000 ------------------------------------ ----------------------------------- Share of Share of Unconsolidated Unconsolidated Company Joint Ventures Total Company Joint Ventures Total ------- -------------- ------- ------- -------------- ------- Furniture, fixtures and equipment $ 197 $ 68 $ 265 $ 588 $ 160 $ 748 Deferred financing costs -- (7) (7) -- 1 1 Goodwill and related business acquisition costs 75 -- 75 225 -- 225 Real estate related: Building (including tenant first generation) 7,818 3,660 11,478 20,537 10,997 31,534 Tenant second generation 300 178 478 886 535 1,421 ------ ------ ------- ------- ------- ------- $8,390 $3,899 $12,289 $22,236 $11,693 $33,929 ====== ====== ======= ======= ======= =======
Exclusive of new developments and purchases of furniture, fixtures and equipment, the Company had the following capital expenditures during the three and nine months ended September 30, 2000, including its share of unconsolidated joint ventures ($ in thousands): Three Months Ended Nine Months Ended September 30, 2000 September 30, 2000 ------------------------ ------------------------- Office Retail Total Office Retail Total ------ ------ ----- ------ ------ ------ Second generation related costs $508 $170 $678 $2,053 $414 $2,467 Building improvements 303 - 303 519 23 542 ---- ---- ---- ------ ---- ------ $811 $170 $981 $2,572 $437 $3,009 ==== ==== ==== ====== ==== ======
Item 3. Quantitative and Qualitative Disclosure About Market Risk - ------------------------------------------------------------------ There have been no significant changes in the Company's market risk related to its notes payable and notes receivable from that disclosed in the Company's annual report on Form 10-K for the year ended December 31, 1999. PART II. OTHER INFORMATION - --------------------------- Item 6. Exhibits and Reports on Form 8-K - -------------------------------------------------- (a) Exhibits -------- 27 Financial Data Schedule (b) Reports on Form 8-K ------------------- There have been no reports on Form 8-K filed by the Registrant during the quarter ended September 30, 2000. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. COUSINS PROPERTIES INCORPORATED Registrant /s/ Kelly H. Barrett ---------------------------------------- Kelly H. Barrett Senior Vice President - Finance (Authorized Officer) (Principal Accounting Officer) November 13, 2000 EX-27 2 0002.txt
5 9-MOS DEC-31-2000 SEP-30-2000 1,562 0 38,323 0 0 0 869,516 59,245 1,030,514 42,583 392,792 0 0 48,933 402,935 1,030,514 0 115,474 0 71,369 0 0 7,969 36,136 (745) 36,881 0 10,895 0 47,776 .98 .96
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