þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
GEORGIA (State or other jurisdiction of incorporation or organization) | 58-0869052 (I.R.S. Employer Identification No.) |
191 Peachtree Street, Suite 500, Atlanta, Georgia (Address of principal executive offices) | 30303-1740 (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Class | Outstanding at July 27, 2012 | |
Common Stock, $1 par value per share | 104,200,091 shares |
Page No. | |
• | availability and terms of capital and financing, both to fund operations and to refinance indebtedness as it matures; |
• | failure of purchase, sale or other contracts to ultimately close; |
• | the availability of buyers and adequate pricing with respect to the disposition of assets, including certain residential and land holdings relating to the Company's change in strategy; |
• | risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial and residential markets in particular; |
• | changes in the Company's business and financial strategy and/or continued adverse market and economic conditions requiring the recognition of impairment losses; |
• | leasing risks, including the inability to obtain new tenants or renew expiring tenants on favorable terms, or at all, and the ability to lease newly developed, recently acquired or current vacant space; |
• | financial condition of existing tenants; |
• | rising interest rates and insurance rates; |
• | the availability of sufficient investment opportunities; |
• | competition from other developers or investors; |
• | the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk); |
• | loss of key personnel; |
• | potential liability for uninsured losses, condemnation or environmental issues; |
• | 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; and |
• | any failure to continue to qualify for taxation as a real estate investment trust. |
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | |||||||
June 30, 2012 | December 31, 2011 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
PROPERTIES: | |||||||
Operating properties, net of accumulated depreciation of $281,739 and $289,473 in 2012 and 2011, respectively | $ | 796,830 | $ | 884,652 | |||
Projects under development | 19,078 | 11,325 | |||||
Land held | 52,163 | 54,132 | |||||
Residential lots | 12,288 | 13,195 | |||||
Other | 533 | 637 | |||||
Total properties | 880,892 | 963,941 | |||||
CASH AND CASH EQUIVALENTS | 3,009 | 4,858 | |||||
RESTRICTED CASH | 4,917 | 4,929 | |||||
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $2,213 and $5,100 in 2012 and 2011, respectively | 11,206 | 11,359 | |||||
DEFERRED RENTS RECEIVABLE | 39,630 | 37,141 | |||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 140,303 | 160,587 | |||||
OTHER ASSETS | 55,358 | 52,720 | |||||
TOTAL ASSETS | $ | 1,135,315 | $ | 1,235,535 | |||
LIABILITIES AND EQUITY | |||||||
NOTES PAYABLE | $ | 461,021 | $ | 539,442 | |||
ACCOUNTS PAYABLE AND OTHER LIABILITIES | 38,193 | 38,592 | |||||
DEFERRED INCOME | 13,204 | 17,343 | |||||
TOTAL LIABILITIES | 512,418 | 595,377 | |||||
COMMITMENTS AND CONTINGENT LIABILITIES | |||||||
REDEEMABLE NONCONTROLLING INTERESTS | — | 2,763 | |||||
STOCKHOLDERS’ INVESTMENT: | |||||||
Preferred stock, 20,000,000 shares authorized, $1 par value: | |||||||
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2012 and 2011 | 74,827 | 74,827 | |||||
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2012 and 2011 | 94,775 | 94,775 | |||||
Common stock, $1 par value, 250,000,000 shares authorized, 107,785,195 and 107,272,078 shares issued in 2012 and 2011, respectively | 107,785 | 107,272 | |||||
Additional paid-in capital | 688,903 | 687,835 | |||||
Treasury stock at cost, 3,570,082 shares in 2012 and 2011 | (86,840 | ) | (86,840 | ) | |||
Distributions in excess of cumulative net income | (290,261 | ) | (274,177 | ) | |||
TOTAL STOCKHOLDERS’ INVESTMENT | 589,189 | 603,692 | |||||
Nonredeemable noncontrolling interests | 33,708 | 33,703 | |||||
TOTAL EQUITY | 622,897 | 637,395 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 1,135,315 | $ | 1,235,535 | |||
See accompanying notes. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
REVENUES: | |||||||||||||||
Rental property revenues | $ | 35,610 | $ | 31,267 | $ | 70,800 | $ | 61,705 | |||||||
Fee income | 2,786 | 3,435 | 5,642 | 6,820 | |||||||||||
Third party management and leasing revenues | 6,029 | 4,605 | 10,740 | 8,693 | |||||||||||
Residential lot sales | 535 | 80 | 1,484 | 245 | |||||||||||
Other | 253 | 562 | 1,718 | 5,707 | |||||||||||
45,213 | 39,949 | 90,384 | 83,170 | ||||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Rental property operating expenses | 14,661 | 13,072 | 28,276 | 24,971 | |||||||||||
Third party management and leasing expenses | 4,607 | 4,080 | 8,907 | 8,173 | |||||||||||
Residential lot and outparcel cost of sales | 416 | 76 | 980 | 145 | |||||||||||
General and administrative expenses | 5,645 | 6,133 | 12,268 | 13,533 | |||||||||||
Interest expense | 5,875 | 7,358 | 12,143 | 14,902 | |||||||||||
Reimbursed expenses | 1,357 | 1,371 | 2,733 | 2,883 | |||||||||||
Depreciation and amortization | 12,750 | 10,896 | 25,861 | 21,877 | |||||||||||
Impairment losses | — | — | 12,233 | 3,508 | |||||||||||
Separation expenses | 79 | 77 | 292 | 178 | |||||||||||
Other | 579 | 655 | 1,273 | 4,013 | |||||||||||
45,969 | 43,718 | 104,966 | 94,183 | ||||||||||||
LOSS ON EXTINGUISHMENT OF DEBT | — | — | (94 | ) | — | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES | (756 | ) | (3,769 | ) | (14,676 | ) | (11,013 | ) | |||||||
(PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS | (33 | ) | (27 | ) | (60 | ) | 37 | ||||||||
INCOME FROM UNCONSOLIDATED JOINT VENTURES | 9,762 | 2,312 | 11,948 | 4,808 | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES | 8,973 | (1,484 | ) | (2,788 | ) | (6,168 | ) | ||||||||
GAIN ON SALE OF INVESTMENT PROPERTIES | 29 | 59 | 86 | 118 | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 9,002 | (1,425 | ) | (2,702 | ) | (6,050 | ) | ||||||||
INCOME FROM DISCONTINUED OPERATIONS: | |||||||||||||||
Income from discontinued operations | 554 | 627 | 818 | 1,587 | |||||||||||
Gain (loss) on sale of discontinued investment properties | 674 | — | 760 | (384 | ) | ||||||||||
1,228 | 627 | 1,578 | 1,203 | ||||||||||||
NET INCOME (LOSS) | 10,230 | (798 | ) | (1,124 | ) | (4,847 | ) | ||||||||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (602 | ) | (681 | ) | 867 | (1,262 | ) | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | 9,628 | (1,479 | ) | (257 | ) | (6,109 | ) | ||||||||
DIVIDENDS TO PREFERRED STOCKHOLDERS | (3,227 | ) | (3,227 | ) | (6,454 | ) | (6,454 | ) | |||||||
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | $ | 6,401 | $ | (4,706 | ) | $ | (6,711 | ) | $ | (12,563 | ) | ||||
PER COMMON SHARE INFORMATION — BASIC AND DILUTED: | |||||||||||||||
Income (loss) from continuing operations attributable to controlling interest | $ | 0.05 | $ | (0.05 | ) | $ | (0.08 | ) | $ | (0.13 | ) | ||||
Income from discontinued operations | 0.01 | 0.01 | 0.02 | 0.01 | |||||||||||
Net income (loss) available to common stockholders | $ | 0.06 | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.12 | ) | ||||
WEIGHTED AVERAGE SHARES — BASIC AND DILUTED | 104,165 | 103,659 | 104,082 | 103,588 | |||||||||||
DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.045 | $ | 0.045 | $ | 0.09 | $ | 0.09 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Distributions in Excess of Net Income | Stockholders’ Investment | Nonredeemable Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||
Balance December 31, 2011 | $ | 169,602 | $ | 107,272 | $ | 687,835 | $ | (86,840 | ) | $ | (274,177 | ) | $ | 603,692 | $ | 33,703 | $ | 637,395 | ||||||||||||||
Net income (loss) | — | — | — | — | (257 | ) | (257 | ) | 1,157 | 900 | ||||||||||||||||||||||
Common stock issued pursuant to: | ||||||||||||||||||||||||||||||||
Director stock grants | — | 72 | 468 | — | — | 540 | — | 540 | ||||||||||||||||||||||||
Restricted stock grants, net of amounts withheld for income taxes | — | 448 | (617 | ) | — | — | (169 | ) | — | (169 | ) | |||||||||||||||||||||
Amortization of stock options and restricted stock, net of forfeitures | — | (7 | ) | 1,217 | — | — | 1,210 | — | 1,210 | |||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (1,152 | ) | (1,152 | ) | ||||||||||||||||||||||
Cash preferred dividends paid | — | — | — | — | (6,454 | ) | (6,454 | ) | — | (6,454 | ) | |||||||||||||||||||||
Cash common dividends paid | — | — | — | — | (9,373 | ) | (9,373 | ) | — | (9,373 | ) | |||||||||||||||||||||
Balance June 30, 2012 | $ | 169,602 | $ | 107,785 | $ | 688,903 | $ | (86,840 | ) | $ | (290,261 | ) | $ | 589,189 | $ | 33,708 | $ | 622,897 | ||||||||||||||
Balance December 31, 2010 | $ | 169,602 | $ | 106,962 | $ | 684,551 | $ | (86,840 | ) | $ | (114,196 | ) | $ | 760,079 | $ | 32,772 | $ | 792,851 | ||||||||||||||
Net income (loss) | — | — | — | — | (6,109 | ) | (6,109 | ) | 1,233 | (4,876 | ) | |||||||||||||||||||||
Common stock issued pursuant to: | ||||||||||||||||||||||||||||||||
Director stock grants | — | 82 | 625 | — | — | 707 | — | 707 | ||||||||||||||||||||||||
Restricted stock grants, net of amounts withheld for income taxes | — | 244 | (263 | ) | — | — | (19 | ) | — | (19 | ) | |||||||||||||||||||||
Amortization of stock options and restricted stock, net of forfeitures | — | (4 | ) | 1,190 | — | — | 1,186 | — | 1,186 | |||||||||||||||||||||||
Change in fair value of redeemable noncontrolling interests | — | — | (526 | ) | — | — | (526 | ) | — | (526 | ) | |||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (1,126 | ) | (1,126 | ) | ||||||||||||||||||||||
Cash preferred dividends paid | — | — | — | — | (6,454 | ) | (6,454 | ) | — | (6,454 | ) | |||||||||||||||||||||
Cash common dividends paid | — | — | — | — | (9,316 | ) | (9,316 | ) | — | (9,316 | ) | |||||||||||||||||||||
Balance June 30, 2011 | $ | 169,602 | $ | 107,284 | $ | 685,577 | $ | (86,840 | ) | $ | (136,075 | ) | $ | 739,548 | $ | 32,879 | $ | 772,427 |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (1,124 | ) | $ | (4,847 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
(Gain) loss on sale of investment properties, including discontinued operations | (846 | ) | 266 | ||||
Loss on extinguishment of debt | 94 | — | |||||
Impairment losses | 12,233 | 3,508 | |||||
Depreciation and amortization, including discontinued operations | 27,006 | 26,914 | |||||
Amortization of deferred financing costs | 512 | 1,079 | |||||
Stock-based compensation | 1,210 | 1,186 | |||||
Effect of recognizing rental revenues on a straight-line or market basis | (2,108 | ) | (3,705 | ) | |||
Income from unconsolidated joint ventures | (11,948 | ) | (4,808 | ) | |||
Operating distributions from unconsolidated joint ventures | 9,857 | 4,692 | |||||
Residential lot and multi-family cost of sales, net of closing costs paid | 1,057 | 2,390 | |||||
Residential lot development expenditures | (46 | ) | (563 | ) | |||
Changes in other operating assets and liabilities: | |||||||
Change in other receivables and other assets | (1,759 | ) | 1,114 | ||||
Change in accounts payable and other liabilities | 1,092 | (140 | ) | ||||
Net cash provided by operating activities | 35,230 | 27,086 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from investment property sales | 63,236 | 21,543 | |||||
Property acquisition, development and tenant asset expenditures | (18,558 | ) | (14,915 | ) | |||
Investment in unconsolidated joint ventures | (6,235 | ) | (9,841 | ) | |||
Distributions from unconsolidated joint ventures | 25,188 | 4,696 | |||||
Collection of notes receivable | 821 | 98 | |||||
Change in other assets | (1,866 | ) | (2,386 | ) | |||
Change in restricted cash | 12 | 882 | |||||
Net cash provided by investing activities | 62,598 | 77 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from credit facility | 273,100 | 52,900 | |||||
Repayments of credit facility | (430,850 | ) | (32,900 | ) | |||
Proceeds from notes payable and construction facilities | 105,949 | — | |||||
Repayment of notes payable | (26,620 | ) | (28,101 | ) | |||
Payment of loan issuance costs | (3,419 | ) | — | ||||
Common stock issuance costs | — | (16 | ) | ||||
Common dividends paid | (9,373 | ) | (9,316 | ) | |||
Preferred dividends paid | (6,454 | ) | (6,454 | ) | |||
Distributions to noncontrolling interests | (2,010 | ) | (6,526 | ) | |||
Net cash used in financing activities | (99,677 | ) | (30,413 | ) | |||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,849 | ) | (3,250 | ) | |||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 4,858 | 7,599 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 3,009 | $ | 4,349 | |||
INTEREST PAID, NET OF AMOUNTS CAPITALIZED | $ | 11,853 | $ | 14,902 | |||
INCOME TAXES REFUNDED | $ | — | $ | 53 | |||
SIGNFICANT NON-CASH TRANSACTIONS: | |||||||
Transfer from other assets to investment in unconsolidated joint ventures | $ | — | $ | 6,050 | |||
Description | Interest Rate | Term/Amortization Period (Years) | Maturity | June 30, 2012 | December 31, 2011 | ||||||||||
Terminus 100 mortgage note | 5.25 | % | 12/30 | 1/1/2023 | $ | 137,172 | $ | 138,194 | |||||||
The American Cancer Society Center mortgage note | 6.45 | % | 10/30 | 9/1/2017 | 134,958 | 135,650 | |||||||||
191 Peachtree Tower mortgage note (interest only until May 1, 2016) (see discussion below) | 3.35 | % | 6.5/30 | 10/1/2018 | 100,000 | — | |||||||||
Credit Facility, unsecured (see discussion below) | 1.85 | % | 4/N/A | 2/28/2016 | 40,500 | 198,250 | |||||||||
Meridian Mark Plaza mortgage note | 6.00 | % | 10/30 | 8/1/2020 | 26,377 | 26,554 | |||||||||
100/200 North Point Center East mortgage note (see discussion below) | 5.39 | % | 5/30 | 6/1/2012 | — | 24,478 | |||||||||
The Points at Waterview mortgage note | 5.66 | % | 10/25 | 1/1/2016 | 15,896 | 16,135 | |||||||||
Mahan Village LLC construction facility | 1.90 | % | (1) | 3/N/A | 9/12/2014 | 5,950 | 1 | ||||||||
Callaway Gardens | 4.13 | % | N/A | 11/18/2013 | 168 | 180 | |||||||||
$ | 461,021 | $ | 539,442 |
Leverage Ratio | Applicable % for Eurodollar Rate | Applicable % for Base Rate | Annual Facility Fee % | |||
≤ 40% | 1.50% | 0.50% | 0.20% | |||
>40% but ≤ 50% | 1.60% | 0.60% | 0.25% | |||
>50% but ≤ 55% | 1.90% | 0.90% | 0.35% | |||
>55% but ≤ 60% | 2.10% | 1.10% | 0.40% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total interest incurred | $ | 6,364 | $ | 7,358 | $ | 13,058 | $ | 14,902 | |||||||
Interest capitalized | (489 | ) | — | (915 | ) | — | |||||||||
Total interest expense | $ | 5,875 | $ | 7,358 | $ | 12,143 | $ | 14,902 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Weighted average shares — basic | 104,165 | 103,659 | 104,082 | 103,588 | |||||||
Dilutive potential common shares — stock options | — | — | — | — | |||||||
Weighted average shares — diluted | 104,165 | 103,659 | 104,082 | 103,588 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Anti-dilutive options | 4,953 | 6,024 | 4,953 | 6,152 |
Total Assets | Total Debt | Total Equity | Company’s Investment | ||||||||||||||||||||||||||||||
SUMMARY OF FINANCIAL POSITION: | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||
CP Venture IV Holdings LLC | $ | 294,311 | $ | 301,352 | $ | 35,727 | $ | 36,031 | $ | 249,204 | $ | 255,881 | $ | 14,232 | $ | 14,694 | |||||||||||||||||
Charlotte Gateway Village, LLC | 144,700 | 146,854 | 75,788 | 83,097 | 66,551 | 62,423 | 10,316 | 10,333 | |||||||||||||||||||||||||
Palisades West LLC | 121,701 | 124,588 | — | — | 79,956 | 81,635 | 41,743 | 42,616 | |||||||||||||||||||||||||
CF Murfreesboro Associates | 123,544 | 125,668 | 96,559 | 98,922 | 24,947 | 24,810 | 14,451 | 14,421 | |||||||||||||||||||||||||
CP Venture LLC entities | 101,751 | 102,178 | — | — | 99,608 | 99,942 | 3,306 | 3,343 | |||||||||||||||||||||||||
MSREF/ Cousins Terminus 200 LLC | 96,483 | 92,421 | 73,944 | 68,562 | 19,892 | 17,967 | 3,977 | 3,593 | |||||||||||||||||||||||||
Cousins Watkins LLC | 54,873 | 56,096 | 28,412 | 28,571 | 25,752 | 26,893 | 16,363 | 16,321 | |||||||||||||||||||||||||
EP I LLC | 59,379 | 33,343 | 17,880 | 1 | 33,051 | 29,137 | 27,975 | 24,827 | |||||||||||||||||||||||||
Crawford Long - CPI, LLC | 32,492 | 32,739 | 47,072 | 47,631 | (16,390 | ) | (16,137 | ) | (7,017 | ) | * | (6,873 | ) | * | |||||||||||||||||||
Ten Peachtree Place Associates | 786 | 22,523 | — | 26,192 | 717 | (4,145 | ) | 95 | (3,679 | ) | * | ||||||||||||||||||||||
Wildwood Associates | 21,216 | 21,224 | — | — | 21,141 | 21,221 | (1,680 | ) | * | (1,639 | ) | * | |||||||||||||||||||||
Temco Associates, LLC | 8,346 | 23,653 | — | 2,787 | 8,075 | 20,646 | 4,016 | 7,363 | |||||||||||||||||||||||||
CL Realty, L.L.C. | 7,065 | 44,481 | — | 1,056 | 6,823 | 42,932 | 3,412 | 22,413 | |||||||||||||||||||||||||
TRG Columbus Development Venture, Ltd. | 2,407 | 2,450 | — | — | 1,854 | 1,857 | 28 | 31 | |||||||||||||||||||||||||
Terminus 200 LLC | 789 | 789 | — | — | 789 | 789 | — | — | |||||||||||||||||||||||||
Pine Mountain Builders, LLC | 221 | 429 | — | — | 37 | 153 | 389 | 632 | |||||||||||||||||||||||||
$ | 1,070,064 | $ | 1,130,788 | $ | 375,382 | $ | 392,850 | $ | 622,007 | $ | 666,004 | $ | 131,606 | $ | 148,396 |
Total Revenues | Net Income (Loss) | Company's Share of Income (Loss) | ||||||||||||||||||||||
SUMMARY OF OPERATIONS: | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
CP Venture IV Holdings LLC | $ | 15,097 | $ | 15,430 | $ | 1,758 | $ | 1,890 | $ | 508 | $ | 539 | ||||||||||||
Charlotte Gateway Village, LLC | 16,477 | 16,308 | 4,733 | 4,282 | 588 | 588 | ||||||||||||||||||
Palisades West LLC | 8,192 | 8,114 | 2,885 | 2,911 | 1,381 | 1,422 | ||||||||||||||||||
CF Murfreesboro Associates | 6,612 | 6,622 | 138 | 178 | (66 | ) | (41 | ) | ||||||||||||||||
CP Venture LLC entities | 9,695 | 9,506 | 4,898 | 3,830 | 507 | 396 | ||||||||||||||||||
MSREF/ Cousins Terminus 200 LLC | 6,105 | 2,197 | (704 | ) | (2,173 | ) | (141 | ) | (434 | ) | ||||||||||||||
Cousins Watkins LLC | 3,120 | 2,422 | (18 | ) | 17 | 1,219 | 1,188 | |||||||||||||||||
EP I LLC | 110 | — | (1 | ) | — | (1 | ) | — | ||||||||||||||||
Crawford Long - CPI, LLC | 5,850 | 5,955 | 1,247 | 1,217 | 620 | 608 | ||||||||||||||||||
Ten Peachtree Place Associates | 2,487 | 3,611 | 20,897 | 407 | 7,831 | 212 | ||||||||||||||||||
Wildwood Associates | — | — | (81 | ) | (85 | ) | (40 | ) | (43 | ) | ||||||||||||||
Temco Associates, LLC | 500 | 318 | (123 | ) | (416 | ) | (265 | ) | (202 | ) | ||||||||||||||
CL Realty, L.L.C. | 1,997 | 3,144 | 736 | 1,390 | 53 | 545 | ||||||||||||||||||
TRG Columbus Development Venture, Ltd. | 9 | 19 | (3 | ) | 7 | (3 | ) | 50 | ||||||||||||||||
Pine Mountain Builders, LLC | 15 | 2,632 | (116 | ) | (44 | ) | (243 | ) | (20 | ) | ||||||||||||||
$ | 76,266 | $ | 76,278 | $ | 36,246 | $ | 13,411 | $ | 11,948 | $ | 4,808 |
June 30, 2012 | December 31, 2011 | |||||||
Lease inducements, net of amortization of of $4,231 and $3,696 in 2012 and 2011, respectively | $ | 11,517 | $ | 12,219 | ||||
Investment in Verde Realty | 5,868 | 5,868 | ||||||
FF&E and leasehold improvements, net of accumulated depreciation of $18,568 and $17,814 in 2012 and 2011, respectively | 4,953 | 4,736 | ||||||
Loan closing costs, net of accumulated amortization of $2,150 and $4,026 in 2012 and 2011, respectively | 4,248 | 1,435 | ||||||
Prepaid expenses and other assets | 3,372 | 2,168 | ||||||
Predevelopment costs and earnest money | 1,477 | 581 | ||||||
Intangible Assets: | ||||||||
In-place leases, net of accumulated amortization of $4,187 and $2,833 in 2012 and 2011, respectively | 14,790 | 16,144 | ||||||
Goodwill | 5,039 | 5,155 | ||||||
Above market leases, net of accumulated amortization of $9,165 and $8,845 in 2012 and 2011, respectively | 4,094 | 4,414 | ||||||
$ | 55,358 | $ | 52,720 |
Goodwill | |||
Balance, December 31, 2011 | $ | 5,155 | |
Allocated to property sales | (116 | ) | |
Balance, June 30, 2012 | $ | 5,039 |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Beginning Balance | $ | 2,763 | $ | 14,289 | ||||
Net loss attributable to redeemable noncontrolling interests | (2,024 | ) | 29 | |||||
Distributions to redeemable noncontrolling interests | (858 | ) | (5,400 | ) | ||||
Other | 119 | — | ||||||
Change in fair value of redeemable noncontrolling interests | — | 526 | ||||||
Ending Balance | $ | — | $ | 9,444 |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net income attributable to nonredeemable noncontrolling interests | $ | (1,157 | ) | $ | (1,233 | ) | ||
Net loss attributable to redeemable noncontrolling interests | 2,024 | (29 | ) | |||||
Net loss (income) | $ | 867 | $ | (1,262 | ) |
• | fee income for third party owned and joint venture properties, other than those managed by CPS, for which the Company performs management, development and leasing services; |
• | compensation for corporate employees, other than those in the CPS Third Party Management and Leasing segment; |
• | general corporate overhead costs, interest expense for consolidated entities (as financing decisions are made at the corporate level, with the exception of joint venture interest expense, which is included in joint venture results in the respective segment); |
• | income attributable to noncontrolling interests; |
• | income taxes; |
• | depreciation; |
• | preferred dividends; and |
• | operations of the Industrial properties, which were sold in 2011. |
Three Months Ended June 30, 2012 | Office | Retail | Land | CPS Third Party Management and Leasing | Other | Total | ||||||||||||||||||
Net operating property income, including discontinued operations | $ | 16,741 | $ | 4,749 | $ | — | $ | — | $ | — | $ | 21,490 | ||||||||||||
Fee income, net of reimbursed expenses | — | — | — | 3,676 | 1,429 | 5,105 | ||||||||||||||||||
Residential lot and other sales, net of cost of sales | — | — | 89 | — | — | 89 | ||||||||||||||||||
Other income | — | 13 | — | — | 253 | 266 | ||||||||||||||||||
Third party management and leasing expenses | — | — | — | (2,254 | ) | — | (2,254 | ) | ||||||||||||||||
General and administrative expenses | — | — | — | — | (5,645 | ) | (5,645 | ) | ||||||||||||||||
Interest expense | — | — | — | — | (5,875 | ) | (5,875 | ) | ||||||||||||||||
Depreciation and amortization of non-real estate assets | — | — | — | — | (223 | ) | (223 | ) | ||||||||||||||||
Separation expenses | — | — | — | — | (79 | ) | (79 | ) | ||||||||||||||||
Other expenses | — | — | — | — | (579 | ) | (579 | ) | ||||||||||||||||
Funds from operations from unconsolidated joint ventures | 2,709 | 2,176 | (135 | ) | — | (2 | ) | 4,748 | ||||||||||||||||
Funds from operations attributable to noncontrolling interests | — | — | — | — | (631 | ) | (631 | ) | ||||||||||||||||
Provision for income taxes from operations | — | — | — | — | (33 | ) | (33 | ) | ||||||||||||||||
Preferred stock dividends | — | — | — | — | (3,227 | ) | (3,227 | ) | ||||||||||||||||
Funds from operations available to common stockholders | $ | 19,450 | $ | 6,938 | $ | (46 | ) | $ | 1,422 | $ | (14,612 | ) | $ | 13,152 | ||||||||||
Real estate depreciation and amortization, including Company's share of joint ventures | (15,022 | ) | ||||||||||||||||||||||
Gain on sale of depreciable investment properties | 8,271 | |||||||||||||||||||||||
Net income available to common stockholders | $ | 6,401 |
Three Months Ended June 30, 2011 | Office | Retail | Land | CPS Third Party Management and Leasing | Other | Total | |||||||||||||||||
Net operating property income, including discontinued operations | $ | 15,458 | $ | 4,847 | $ | — | $ | — | $ | 911 | $ | 21,216 | |||||||||||
Fee income, net of reimbursed expenses | — | — | 56 | 2,396 | 2,008 | 4,460 | |||||||||||||||||
Residential lot and other sales, net of cost of sales | — | — | 4 | — | — | 4 | |||||||||||||||||
Other income | 447 | 10 | — | — | 194 | 651 | |||||||||||||||||
Third party management and leasing expenses | — | — | — | (1,871 | ) | — | (1,871 | ) | |||||||||||||||
General and administrative expenses | — | — | — | — | (6,133 | ) | (6,133 | ) | |||||||||||||||
Interest expense | — | — | — | — | (7,358 | ) | (7,358 | ) | |||||||||||||||
Depreciation and amortization of non-real estate assets | — | — | — | — | (372 | ) | (372 | ) | |||||||||||||||
Separation expenses | — | — | — | — | (77 | ) | (77 | ) | |||||||||||||||
Other expenses | — | — | — | — | (659 | ) | (659 | ) | |||||||||||||||
Funds from operations from unconsolidated joint ventures | 2,685 | 2,125 | 127 | — | 33 | 4,970 | |||||||||||||||||
Funds from operations attributable to noncontrolling interests | — | — | — | — | (681 | ) | (681 | ) | |||||||||||||||
Provision for income taxes from operations | — | — | — | — | (27 | ) | (27 | ) | |||||||||||||||
Preferred stock dividends | — | — | — | — | (3,227 | ) | (3,227 | ) | |||||||||||||||
Funds from operations available to common stockholders | $ | 18,590 | $ | 6,982 | $ | 187 | $ | 525 | $ | (15,388 | ) | $ | 10,896 | ||||||||||
Real estate depreciation and amortization, including Company's share of joint ventures | (15,661 | ) | |||||||||||||||||||||
Gain on sale of depreciable investment properties | 59 | ||||||||||||||||||||||
Net loss available to common stockholders | $ | (4,706 | ) |
Six Months Ended June 30, 2012 | Office | Retail | Land | CPS Third Party Management and Leasing | Other | Total | |||||||||||||||||
Net operating income, including discontinued operations | $ | 33,676 | $ | 10,797 | $ | — | $ | — | $ | 1 | $ | 44,474 | |||||||||||
Fee income, net of reimbursed expenses | — | — | — | 6,086 | 2,909 | 8,995 | |||||||||||||||||
Residential lot and other sales, net of cost of sales | — | — | 474 | — | — | 474 | |||||||||||||||||
Other income | — | 205 | — | — | 1,526 | 1,731 | |||||||||||||||||
Third party management and leasing expenses | — | — | — | (4,253 | ) | — | (4,253 | ) | |||||||||||||||
General and administrative expenses | — | — | — | — | (12,268 | ) | (12,268 | ) | |||||||||||||||
Interest expense | — | — | — | — | (12,143 | ) | (12,143 | ) | |||||||||||||||
Loss on extinguishment of debt | — | — | — | — | (94 | ) | (94 | ) | |||||||||||||||
Depreciation and amortization of non-real estate assets | — | — | — | — | (587 | ) | (587 | ) | |||||||||||||||
Separation expenses | — | — | — | — | (292 | ) | (292 | ) | |||||||||||||||
Other expenses | — | — | — | — | (1,273 | ) | (1,273 | ) | |||||||||||||||
Funds from operations from unconsolidated joint ventures | 5,709 | 4,286 | (397 | ) | — | (3 | ) | 9,595 | |||||||||||||||
Funds from operations attributable to noncontrolling interests | — | — | — | — | (1,205 | ) | (1,205 | ) | |||||||||||||||
Provision for income taxes from operations | — | — | — | — | (60 | ) | (60 | ) | |||||||||||||||
Preferred stock dividends | $ | — | $ | — | $ | — | $ | — | $ | (6,454 | ) | $ | (6,454 | ) | |||||||||
Funds from operations available to common stockholders | $ | 39,385 | $ | 15,288 | $ | 77 | $ | 1,833 | $ | (29,943 | ) | $ | 26,640 | ||||||||||
Real estate depreciation and amortization, including Company's share of joint ventures | (31,575 | ) | |||||||||||||||||||||
Impairment loss on depreciable investment property | (12,233 | ) | |||||||||||||||||||||
Noncontrolling interest related to gain on sale of depreciated investment properties | 2,043 | ||||||||||||||||||||||
Gain on sale of depreciated investment properties | 8,414 | ||||||||||||||||||||||
Net loss available to common stockholders | $ | (6,711 | ) |
Six Months Ended June 30, 2011 | Office | Retail | Land | CPS Third Party Management and Leasing | Other | Total | |||||||||||||||||
Net operating property income, including discontinued operations | $ | 30,709 | $ | 10,582 | $ | — | $ | — | $ | 1,961 | $ | 43,252 | |||||||||||
Fee income, net of reimbursed expenses | — | — | 91 | 4,236 | 3,846 | 8,173 | |||||||||||||||||
Residential lot and other sales, net of cost of sales | — | 50 | 50 | — | — | 100 | |||||||||||||||||
Other income | 818 | 34 | — | — | 4,969 | 5,821 | |||||||||||||||||
Third party management and leasing expenses | — | — | — | (3,716 | ) | — | (3,716 | ) | |||||||||||||||
General and administrative expenses | — | — | — | — | (13,533 | ) | (13,533 | ) | |||||||||||||||
Interest expense | — | — | — | — | (14,902 | ) | (14,902 | ) | |||||||||||||||
Impairment loss | — | — | — | — | (3,508 | ) | (3,508 | ) | |||||||||||||||
Depreciation and amortization of non-real estate assets | — | — | — | — | (935 | ) | (935 | ) | |||||||||||||||
Separation expenses | — | — | — | — | (178 | ) | (178 | ) | |||||||||||||||
Other expenses | — | — | — | — | (4,021 | ) | (4,021 | ) | |||||||||||||||
Funds from operations from unconsolidated joint ventures | 5,449 | 4,366 | 279 | — | 50 | 10,144 | |||||||||||||||||
Funds from operations attributable to noncontrolling interests | — | — | — | — | (1,262 | ) | (1,262 | ) | |||||||||||||||
Benefit for income taxes from operations | — | — | — | — | 37 | 37 | |||||||||||||||||
Preferred stock dividends | — | — | — | — | (6,454 | ) | (6,454 | ) | |||||||||||||||
Funds from operations available to common stockholders | $ | 36,976 | $ | 15,032 | $ | 420 | $ | 520 | $ | (33,930 | ) | $ | 19,018 | ||||||||||
Real estate depreciation and amortization, including Company's share of joint ventures | (31,315 | ) | |||||||||||||||||||||
Loss on sale of depreciable investment properties, net of gains | (266 | ) | |||||||||||||||||||||
Net loss available to common stockholders | $ | (12,563 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net operating property income, including discontinued operations | $ | 21,490 | $ | 21,216 | $ | 44,474 | $ | 43,252 | ||||||||
Plus rental property operating expenses | 14,661 | 13,072 | 28,276 | 24,971 | ||||||||||||
Fee income | 5,105 | 4,460 | 8,995 | 8,173 | ||||||||||||
Third party management and leasing expense reimbursements | 2,353 | 2,209 | 4,654 | 4,457 | ||||||||||||
Reimbursed expenses | 1,357 | 1,371 | 2,733 | 2,883 | ||||||||||||
Residential lot sales, net of cost of sales, including gain on sale of undepreciated investment properties | 89 | 4 | 474 | 100 | ||||||||||||
Plus residential lot cost of sales | 416 | 76 | 980 | 145 | ||||||||||||
Plus loss on sale of undepreciated investment properties | 30 | — | 30 | — | ||||||||||||
Net operating income from discontinued operations not included in revenues | (541 | ) | (3,021 | ) | (1,950 | ) | (6,518 | ) | ||||||||
Other income | 266 | 651 | 1,731 | 5,821 | ||||||||||||
Other income - discontinued operations | $ | (13 | ) | $ | (89 | ) | $ | (13 | ) | $ | (114 | ) | ||||
Total consolidated revenues | $ | 45,213 | $ | 39,949 | $ | 90,384 | $ | 83,170 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income from discontinued operations: | |||||||||||||||
Rental property revenues | $ | 1,065 | $ | 5,421 | $ | 3,367 | $ | 11,276 | |||||||
Other income | 13 | 89 | 13 | 114 | |||||||||||
Rental property expenses | (524 | ) | (2,404 | ) | (1,417 | ) | (4,766 | ) | |||||||
Depreciation and amortization | — | (2,479 | ) | (1,145 | ) | (5,037 | ) | ||||||||
Income from discontinued operations | $ | 554 | $ | 627 | $ | 818 | $ | 1,587 | |||||||
Gain (loss) on sale of discontinued investment properties: | |||||||||||||||
The Avenue Collierville | $ | 86 | $ | — | $ | 86 | $ | — | |||||||
Galleria 75 | 547 | — | 547 | — | |||||||||||
Jefferson Mill Business Park Building A | — | — | — | (394 | ) | ||||||||||
Other | 41 | — | 127 | 10 | |||||||||||
Gain (loss) on sale of discontinued investment properties | $ | 674 | $ | — | $ | 760 | $ | (384 | ) |
• | Increase of $4.3 million and $8.3 million in the three and six month 2012 periods, respectively, due to the November 2011 acquisition of the Promenade office building; |
• | Increase of $570,000 and $1.2 million in the three and six month 2012 periods, respectively, at The Avenue Forsyth, primarily due to an increase in the weighted average economic occupancy from 68% to 89% between the six month 2011 and 2012 periods; and |
• | Decrease of $261,000 and $642,000 in the three and six month 2012 periods, respectively, at 555 North Point Center East, as a result of a decrease in average economic occupancy from 98% to 62% between the six month 2011 and 2012 periods. |
• | Increase of $2.0 million and $4.0 million between the three and six month 2012 and 2011 periods, respectively, as a result of the acquisition of Promenade office building in November 2011; and |
• | Decrease of $180,000 and $493,000 between the three and six month 2012 and 2011 periods, respectively, at 191 Peachtree Tower, due to a decrease in bad debt expense, property taxes and utilities between the periods. |
• | Decrease of approximately $1.1 million and $2.1 million between the three and six month 2012 and 2011 periods, respectively, resulting from the repayment of the 100/200 North Point Center East mortgage note in the second quarter of 2012, and the repayment of the 333/555 North Point Center East, 600 University Park Place and Lakeshore Park Plaza mortgage notes in 2011; and |
• | Decrease of approximately $703,000 and $530,000 between the three and six month 2012 and 2011 periods, respectively, due to a decrease in average borrowings on the Company's Credit Facility. |
• | Increase in income of $7.6 million from Ten Peachtree Place Associates from the gain on sale of the venture's underlying asset in the 2012 period; and |
• | Decrease in income from CL Realty L.L.C. and Temco Associates of approximately $555,000 between the six month 2012 and 2011 periods as the Company sold its interests in 18 residential development projects and related land to its partner in March 2012. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income (Loss) Available to Common Stockholders | $ | 6,401 | $ | (4,706 | ) | $ | (6,711 | ) | $ | (12,563 | ) | ||||
Depreciation and amortization: | |||||||||||||||
Consolidated properties | 12,750 | 10,896 | 25,861 | 21,877 | |||||||||||
Discontinued properties | — | 2,479 | 1,145 | 5,037 | |||||||||||
Share of unconsolidated joint ventures | 2,500 | 2,663 | 5,166 | 5,346 | |||||||||||
Depreciation of furniture, fixtures and equipment: | |||||||||||||||
Consolidated properties | (223 | ) | (372 | ) | (587 | ) | (935 | ) | |||||||
Discontinued properties | — | — | — | — | |||||||||||
Share of unconsolidated joint ventures | (5 | ) | (5 | ) | (10 | ) | (10 | ) | |||||||
Impairment loss on depreciable investment property, net of noncontrolling interest | — | — | 10,190 | — | |||||||||||
(Gain) loss on sale of investment properties: | |||||||||||||||
Consolidated, including amounts attributable to noncontrolling interests | (29 | ) | (59 | ) | (86 | ) | (118 | ) | |||||||
Discontinued properties | (674 | ) | — | (760 | ) | 384 | |||||||||
Share of unconsolidated joint ventures | (7,509 | ) | — | (7,509 | ) | — | |||||||||
Other | (59 | ) | — | (59 | ) | — | |||||||||
Funds From Operations Available to Common Stockholders | $ | 13,152 | $ | 10,896 | $ | 26,640 | $ | 19,018 | |||||||
Per Common Share — Basic and Diluted: | |||||||||||||||
Net Income (Loss) Available | $ | 0.06 | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.12 | ) | ||||
Funds From Operations | $ | 0.13 | $ | 0.11 | $ | 0.26 | $ | 0.18 | |||||||
Weighted Average Shares — Basic | 104,165 | 103,659 | 104,082 | 103,588 | |||||||||||
Weighted Average Shares — Diluted | 104,165 | 103,684 | 104,086 | 103,606 |
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 years | ||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||
Company debt: | ||||||||||||||||||||
Unsecured Credit Facility and construction facility | $ | 46,450 | $ | — | $ | 5,950 | $ | 40,500 | $ | — | ||||||||||
Mortgage notes payable | 414,571 | 4,473 | 9,927 | 26,334 | 373,837 | |||||||||||||||
Interest commitments (1) | 153,000 | 22,614 | 44,314 | 40,876 | 45,196 | |||||||||||||||
Ground leases | 15,460 | 107 | 222 | 235 | 14,896 | |||||||||||||||
Other operating leases | 765 | 463 | 183 | 80 | 39 | |||||||||||||||
Total contractual obligations | $ | 630,246 | $ | 27,657 | $ | 60,596 | $ | 108,025 | $ | 433,968 | ||||||||||
Commitments: | ||||||||||||||||||||
Estimated development commitments | $ | 8,022 | $ | 7,220 | $ | 802 | $ | — | $ | — | ||||||||||
Unfunded tenant improvements and other | 13,273 | 13,273 | — | — | — | |||||||||||||||
Letters of credit | 2,105 | 2,105 | — | — | — | |||||||||||||||
Performance bonds | 518 | 472 | 46 | — | — | |||||||||||||||
Total commitments | $ | 23,918 | $ | 23,070 | $ | 848 | $ | — | $ | — |
(1) | Interest on variable rate obligations is based on rates effective as of June 30, 2012. |
Leverage Ratio | Applicable % for Eurodollar Rate | Applicable % for Base Rate | Annual Facility Fee % | |||
≤ 40% | 1.50% | 0.50% | 0.20% | |||
>40% but ≤ 50% | 1.60% | 0.60% | 0.25% | |||
>50% but ≤ 55% | 1.90% | 0.90% | 0.35% | |||
>55% but ≤ 60% | 2.10% | 1.10% | 0.40% |
• | Cash flows increased $5.2 million from operating distributions from unconsolidated joint ventures, primarily due to cash distributions from the sale of the underlying asset at Ten Peachtree Place Associates in the second quarter of 2012; |
• | Cash flows increased $2.5 million from rental property operations, due to the acquisition of Promenade in November 2011 and net increases in occupancy, offset by decreases from 2011 operating property sales; |
• | Cash flows increased $1.7 million in cash interest paid between the periods from lower average borrowings outstanding and a reduction in the average interest rate paid on its debt; |
• | Cash flows increased $777,000 from salaries and benefits due to a decrease in the number of employees between the periods; |
• | Cash flows increased $1.1 million from employer retirement savings plan contributions due to a change between the periods in the manner of funding the plan; |
• | Cash flows increased $1.0 million due to a reimbursement from the Company's partner in the Glenmore venture for an amount paid by the Company on the partner's behalf in 2010; |
• | Cash flows increased $1.2 million from residential lot sales due to an increase in 2012 in the number of lots sold; |
• | Cash flows decreased $4.5 million from multi-family unit sales. The Company sold substantially all of its multi-family units during 2011; and |
• | Cash flows decreased $2.5 million from bonus payments. During the 2012 period, the Company paid $5.4 million in bonuses compared to $2.9 million in the 2011 period. |
• | Cash flows increased $41.7 million from proceeds from the sales of investment properties. In the 2012 period, the Company sold The Avenue Collierville and Galleria 75, generating net proceeds of approximately $63.2 million. During the 2011 period, the Company sold Jefferson Mill for net proceeds of approximately $21.5 million; |
• | Cash flows decreased $3.6 million in property acquisition, development and tenant asset expenditures due to an increase of $7.8 million in construction expenditures at the Mahan Village Project, partially offset by a decrease in tenant asset expenditures between the periods; |
• | Cash flows increased $3.6 million due to lower contributions to joint ventures in 2012, due to a decrease in contributions of approximately $4.9 million to the EP I joint venture, which was formed in the second quarter of 2011. This increase was partially offset by an increase in contributions to the MSREF/T200 and Ten Peachtree Place joint ventures; and |
• | Cash flows increased $20.5 million from distributions from unconsolidated joint ventures due mainly to the sale of most of the underlying assets and the resultant distribution of proceeds at the CL Realty and Temco joint ventures. |
• | Cash flows from the Credit Facility decreased $177.8 million as repayments were made using proceeds from 2012 property sales and from the new $100.0 million 191 Peachtree Tower mortgage note; |
• | Cash flows from notes payable and construction facilities increased $106.0 million from the new 191 Peachtree Tower mortgage note payable and amounts drawn on the Mahan Village LLC facility to fund its construction; |
• | Cash flows decreased $3.4 million from the payment of loan issuance costs related to the 191 Peachtree Tower mortgage and the 2012 amendment of the Credit Facility; and |
• | Cash flows increased $4.5 million from distributions to noncontrolling interests, primarily as a result of the 2011 distribution of $5.1 million to the partner in Jefferson Mill for its share of sales proceeds. |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Development | $ | 7,397 | $ | — | ||||
Redevelopment — building improvements | — | 3,870 | ||||||
Redevelopment — leasing costs | — | 2,338 | ||||||
Operating - building improvements | 992 | 112 | ||||||
Operating — leasing costs | 7,238 | 10,273 | ||||||
Capitalized interest | 230 | — | ||||||
Capitalized personnel costs | 647 | 610 | ||||||
Accrued capital adjustment | 2,054 | (2,288 | ) | |||||
Total property acquisition and development expenditures | $ | 18,558 | $ | 14,915 |
Twelve months ended June 30, | ||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | Fair Value | |||||||||||||||||||||||||
Fixed Rate: | ||||||||||||||||||||||||||||||||
Principal maturities | $ | 4,473 | $ | 4,906 | $ | 5,020 | $ | 19,345 | $ | 6,990 | $ | 373,837 | $ | 414,571 | $ | 437,642 | ||||||||||||||||
Average interest rate | 5.75 | % | '5.70% | 5.76 | % | 5.65 | % | 5.09 | % | 5.21 | % | 5.25 | % | — | ||||||||||||||||||
Variable Rate: | ||||||||||||||||||||||||||||||||
Principal maturities | $ | — | $ | — | $ | 5,950 | $ | 40,500 | $ | — | $ | — | $ | 46,450 | $ | 46,101 | ||||||||||||||||
Average interest rate (1) | — | — | '1.90% | 1.85 | % | — | — | 1.86 | % | — |
3.1 | Restated and Amended Articles of Incorporation of the Registrant, as amended August 9, 1999, filed as Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2002, and incorporated herein by reference. | |
3.1.1 | Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended July 22, 2003, filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on July 23, 2003, and incorporated herein by reference. | |
3.1.2 | Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended December 15, 2004, filed as Exhibit 3(a)(i) to the Registrant’s Form 10-K for the year ended December 31, 2004, and incorporated herein by reference. | |
3.1.3 | Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended May 4, 2010, filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed May 6, 2010, and incorporated herein by reference. | |
3.2 | Bylaws of the Registrant, as amended and restated May 8, 2012 and incorporated herein by reference. | |
11.0 | * | Computation of Per Share Earnings |
31.1 | † | Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | † | Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | † | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | † | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | † | The following financial information for the Registrant, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Condensed Consolidated Financial Statements. |
* | Data required by ASC 260, “Earnings per Share,” is provided in Note 3 to the Condensed Consolidated financial statements included in this report. | |
† | Filed herewith. |
COUSINS PROPERTIES INCORPORATED | ||||
/s/ Gregg D. Adzema | ||||
Gregg D. Adzema | ||||
Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Other Assets Other Assets - Goodwill Rollforward Table (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Goodwill [Roll Forward] | |
Goodwill | $ 5,155 |
Cost of Property Sale Goodwill | (116) |
Goodwill | $ 5,039 |
Reportable Segments Reportable Segments-No of Rept Segments (Detail Textual) (Details)
|
3 Months Ended |
---|---|
Jun. 30, 2012
|
|
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
Earnings Per Share
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE Net income (loss) per share-basic is calculated as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period, including nonvested restricted stock which has nonforfeitable dividend rights. Net income (loss) per share-diluted is calculated as net income (loss) available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period. Diluted weighted average number of common shares uses the same weighted average share number as in the basic calculation and adds the potential dilution, if any, that would occur if stock options (or any other contracts to issue common stock) were exercised and resulted in additional common shares outstanding, calculated using the treasury stock method. The numerator is reduced for the effect of preferred dividends in both the basic and diluted net income (loss) per share calculations. Weighted average shares-basic and diluted for the three and six months ending June 30, 2012 and 2011 are as follows (in thousands):
Stock options are dilutive when the average market price of the Company's stock during the period exceeds the option exercise price. However, in periods where the Company is in a net loss position, the dilutive effect of stock options is not included in the diluted weighted average shares total. Anti-dilutive stock options represent stock options which are outstanding but which are not exercisable during the period because the exercise price exceeded the average market value of the Company's stock. These anti-dilutive stock options are not included in the current calculation of dilutive weighted average shares, but could be dilutive in the future. Total weighted average anti-dilutive stock options for each of the periods are as follows (in thousands):
|
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