Maryland
|
1-11533
|
74-2123597
|
(State or Other Jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
Of Incorporation)
|
Identification No.)
|
0
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
0
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
0
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
0
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
(a) Pro-forma Financial Statements
|
|
The following unaudited Pro Forma Consolidated Financial Statements of Parkway for the year ended December 31, 2010 and as of and for the nine months ended September 30, 2011 are attached hereto:
|
|
Page
|
|
Pro Forma Consolidated Financial Statements (Unaudited)
|
F-1
|
Pro Forma Consolidated Balance Sheet (Unaudited) - As of September 30, 2011
|
F-2
|
Pro Forma Consolidated Statement of Operations (Unaudited) -
|
|
for the Year Ended December 31, 2010
|
F-3
|
Pro Forma Consolidated Statement of Operations (Unaudited) -
|
|
for the Nine Months Ended September 30, 2011
|
F-4
|
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
|
F-5
|
As these properties are directly or indirectly owned by entities that have elected to be treated as a real estate investment trust (as specified under sections 856-860 of the Internal Revenue Code of 1986) for Federal income tax purposes, a presentation of estimated taxable operating results is not applicable.
|
|
PARKWAY PROPERTIES, INC. | |||
Date: November 15, 2011
|
By:
|
/s/ Mandy M. Pope | |
Executive Vice President and
Chief Accounting Officer
|
|||
PARKWAY PROPERTIES, INC.
|
|||||
PRO FORMA CONSOLIDATED BALANCE SHEET
|
|||||
SEPTEMBER 30, 2011
|
|||||
(Unaudited)
|
|||||
Parkway
|
Pro Forma
|
Parkway
|
|||
Historical
|
Adjustments
|
Pro Forma
|
|||
(In thousands, except share data)
|
|||||
Assets
|
|||||
Real estate related investments:
|
|||||
Office and parking properties
|
$ 1,685,906
|
$ -
|
$ 1,685,906
|
||
Office property held for sale
|
134,963
|
(134,963)
|
-
|
||
Land held for development
|
609
|
-
|
609
|
||
Accumulated depreciation
|
(275,729)
|
-
|
(275,729)
|
||
1,545,749
|
(134,963)
|
1,410,786
|
|||
|
|||||
Land available for sale
|
750
|
-
|
750
|
||
Mortgage loans
|
1,500
|
-
|
1,500
|
||
1,547,999
|
(134,963)
|
1,413,036
|
|||
Rents receivable and other assets
|
133,799
|
-
|
133,799
|
||
Intangible assets, net
|
116,736
|
-
|
116,736
|
||
Other assets held for sale
|
31,983
|
(31,983)
|
-
|
||
Management contracts, net
|
50,714
|
-
|
50,714
|
||
Cash and cash equivalents
|
32,951
|
(2,879)
|
30,072
|
||
$ 1,914,182
|
$ (169,825)
|
$ 1,744,357
|
|||
Liabilities
|
|||||
Notes payable to banks
|
$ 113,852
|
$ (4,293)
|
$ 109,559
|
||
Mortgage notes payable
|
830,709
|
-
|
830,709
|
||
Accounts payable and other liabilities
|
123,409
|
-
|
123,409
|
||
Liabilities held for sale
|
165,340
|
(165,340)
|
-
|
||
1,233,310
|
(169,633)
|
1,063,677
|
|||
Equity
|
|||||
Parkway Properties, Inc. stockholders' equity:
|
|||||
8.00% Series D Preferred stock, $.001 par value, 5,421,296 and
|
|||||
4,374,896 shares authorized, issued and outstanding in
|
128,942
|
-
|
128,942
|
||
2011 and 2010, respectively
|
|||||
Common stock, $.001 par value, 64,578,704 and 65,625,104
|
|||||
shares authorized in 2011 and 2010, respectively, 22,118,817
|
|||||
and 21,923,610 shares issued and outstanding in 2011 and
|
|||||
2010, respectively
|
22
|
-
|
22
|
||
Common stock held in trust, at cost, 12,070 and 58,134
|
|||||
shares in 2011 and 2010, respectively
|
(309)
|
-
|
(309)
|
||
Additional paid-in capital
|
517,527
|
-
|
517,527
|
||
Accumulated other comprehensive loss
|
(5,704)
|
-
|
(5,704)
|
||
Accumulated deficit
|
(209,732)
|
(192)
|
(209,924)
|
||
Total Parkway Properties, Inc. stockholders' equity
|
430,746
|
(192)
|
430,554
|
||
Noncontrolling interest - real estate partnerships
|
250,126
|
250,126
|
|||
Total equity
|
680,872
|
(192)
|
680,680
|
||
$ 1,914,182
|
$ (169,825)
|
$ 1,744,357
|
|||
PARKWAY PROPERTIES, INC.
|
|||||
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010
|
|||||
(Unaudited)
|
|||||
Parkway
|
Pro Forma
|
Parkway
|
|||
Historical
|
Adjustments
|
Pro Forma
|
|||
(In thousands, except per share data)
|
|||||
Revenues
|
|||||
Income from office and parking properties
|
$ 182,747
|
$ 45,237
|
$ 227,984
|
||
Management company income
|
1,652
|
-
|
1,652
|
||
Total revenues
|
184,399
|
45,237
|
229,636
|
||
|
|
||||
Expenses and other
|
|
||||
Property operating expense
|
86,931
|
17,128
|
104,059
|
||
Depreciation and amortization
|
65,117
|
20,008
|
85,125
|
||
Impairment loss on real estate
|
4,120
|
-
|
4,120
|
||
Management company expenses
|
3,961
|
-
|
3,961
|
||
General and administrative
|
7,382
|
-
|
7,382
|
||
Total expenses and other
|
167,511
|
37,136
|
204,647
|
||
Operating income
|
16,888
|
8,101
|
24,989
|
||
Other income and expenses
|
|||||
Interest and other income
|
1,487
|
-
|
1,487
|
||
Equity in earnings of unconsolidated joint ventures
|
326
|
-
|
326
|
||
Gain on involuntary conversion
|
40
|
-
|
40
|
||
Interest expense
|
(40,677)
|
(7,829)
|
(48,506)
|
||
Loss from continuing operations
|
(21,936)
|
272
|
(21,664)
|
||
Net loss attributable to noncontrolling interest - real estate partnerships
|
10,789
|
3,287
|
14,076
|
||
Dividends on preferred stock
|
(6,325)
|
-
|
(6,325)
|
||
Loss from continuing operations attributable to common stockholders
|
$ (17,472)
|
$ 3,559
|
$ (13,913)
|
||
Loss from continuing operations per common share (4)
|
|||||
Basic
|
$ (0.82)
|
$ (0.65)
|
|||
Diluted
|
$ (0.82)
|
$ (0.65)
|
|||
Weighted average shares outstanding:
|
|||||
Basic
|
21,421
|
21,421
|
|||
Diluted
|
21,421
|
21,421
|
|||
PARKWAY PROPERTIES, INC.
|
|||||
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
|
|||||
(Unaudited)
|
|||||
|
|||||
Parkway
|
Total Pro Forma
|
Parkway
|
|||
Historical
|
Adjustments
|
Pro Forma
|
|||
(In thousands, except per share data)
|
|||||
Revenues
|
|||||
Income from office and parking properties
|
$ 170,244
|
$ 12,509
|
$ 182,753
|
||
Management company income
|
9,990
|
-
|
9,990
|
||
Total revenues
|
180,234
|
12,509
|
192,743
|
||
|
|
||||
Expenses and other
|
|
||||
Property operating expense
|
79,156
|
4,880
|
84,036
|
||
Depreciation and amortization
|
64,519
|
4,823
|
69,342
|
||
Impairment loss on real estate
|
107,240
|
-
|
107,240
|
||
Impairment loss on mortgage loan receivable
|
9,235
|
-
|
9,235
|
||
Change in fair value of contingent consideration
|
(12,000)
|
-
|
(12,000)
|
||
Management company expenses
|
8,398
|
-
|
8,398
|
||
General and administrative
|
5,380
|
-
|
5,380
|
||
Acquisition costs
|
16,754
|
(485)
|
16,269
|
||
Total expenses
|
278,682
|
9,218
|
287,900
|
||
Operating income (loss)
|
(98,448)
|
3,291
|
(95,157)
|
||
Other income and expenses
|
|||||
Interest and other income
|
849
|
-
|
849
|
||
Equity in earnings of unconsolidated joint ventures
|
65
|
-
|
65
|
||
Gain on sale of real estate
|
743
|
-
|
743
|
||
Interest expense
|
(37,280)
|
(558)
|
(37,838)
|
||
Income (loss) before income tax expense
|
(134,071)
|
2,733
|
(131,338)
|
||
Income tax expense
|
(50)
|
-
|
(50)
|
||
Income (loss) from continuing operations
|
(134,121)
|
2,733
|
(131,388)
|
||
Net loss attributable to noncontrolling interest - real estate partnerships
|
84,112
|
(212)
|
83,900
|
||
Dividends on preferred stock
|
(7,341)
|
-
|
(7,341)
|
||
Income (loss) from continuing operations attributable to common stockholders
|
$ (57,350)
|
$ 2,521
|
$ (54,829)
|
||
Loss from continuing operations per common share (4)
|
|||||
Basic
|
$ (2.67)
|
$ (2.55)
|
|||
Diluted
|
$ (2.67)
|
$ (2.55)
|
|||
Weighted average shares outstanding:
|
|||||
Basic
|
21,489
|
21,489
|
|||
Diluted
|
21,489
|
21,489
|
|||
Office and parking properties
|
$
|
134,963
|
Other assets
|
31,983
|
|
Cash
|
2,879
|
|
Total assets
|
$
|
169,825
|
Liabilities held for sale
|
$
|
165,340
|
Total liabilities
|
$
|
165,340
|
3344 Peachtree
|
Corporate Center Four
|
Two Liberty Place
|
Sold Properties
|
Pro Forma Adjustments
|
||||||
Income from office and parking properties
|
$
|
15,518
|
$
|
3,612
|
$
|
26,107
|
$
|
-
|
$
|
45,237
|
Property operating expenses
|
4,430
|
1,856
|
10,842
|
-
|
17,128
|
|||||
Depreciation and amortization
|
7,622
|
1,995
|
10,391
|
-
|
20,008
|
|||||
Total expenses
|
12,052
|
3,851
|
21,233
|
-
|
37,136
|
|||||
Operating income (loss)
|
3,466
|
(239)
|
4,874
|
8,101
|
||||||
Interest expense
|
(5,660)
|
(1,592)
|
(5,736)
|
5,159
|
(7,829)
|
|||||
Income (loss) from continuing operations
|
(2,194)
|
(1,831)
|
(862)
|
5,159
|
272
|
|||||
Net loss attributable to noncontrolling interests
|
1,383
|
1,266
|
638
|
-
|
3,287
|
|||||
Loss from continuing operations attributable to common stockholders
|
$
|
(811)
|
$
|
(565)
|
$
|
(224)
|
$
|
5,159
|
$
|
3,559
|
Estimated Useful Life
|
|
Building and garage
|
40 years
|
Building improvements
|
15 years
|
Tenant improvements
|
Remaining term of lease
|
Lease in place value
|
Remaining term of lease including expected renewals
|
Lease costs
|
Remaining term of lease
|
Above and below market leases
|
Remaining term of lease
|
3344 Peachtree
|
Corporate Center Four
|
Two Liberty Place
|
Sold Properties
|
Pro Forma Adjustments
|
||||||||
Income from office and parking properties
|
$
|
1,029
|
$
|
1,370
|
$
|
10,110
|
$
|
-
|
$
|
12,509
|
||
Property operating expenses
|
281
|
539
|
4,060
|
-
|
4,880
|
|||||||
Depreciation and amortization
|
357
|
538
|
3,928
|
-
|
4,823
|
|||||||
Acquisition costs
|
(228)
|
(92)
|
(165)
|
-
|
(485)
|
|||||||
Total expenses
|
410
|
985
|
7,823
|
-
|
9,218
|
|||||||
Operating income
|
619
|
385
|
2,287
|
-
|
3,291
|
|||||||
Interest expense
|
(335)
|
(446)
|
(2,216)
|
2,439
|
(558)
|
|||||||
Income (loss) from continuing operations
|
284
|
(61)
|
71
|
2,439
|
2,733
|
|||||||
Net (income) loss attributable to noncontrolling interests
|
(204)
|
22
|
(30)
|
-
|
(212)
|
|||||||
Income (loss) from continuing operations attributable to common stockholders
|
$
|
80
|
$
|
(39)
|
$
|
41
|
$
|
2,439
|
$
|
2,521
|
Nine
|
||||||
Property/Placement
|
Year Ended
|
Months Ended
|
||||
Date/Rate
|
Debt
|
12/31/10
|
09/30/11
|
|||
Debt assumed in 3344 Peachtree
|
||||||
01/11 5.25%
|
$
|
87,225
|
$
|
4,579
|
$
|
258
|
Debt placed on Corporate Center Four
|
||||||
04/11 5.37%
|
$
|
22,500
|
$
|
1,208
|
$
|
326
|
Debt placed on Two Liberty Place
|
||||||
05/11 5.33%
|
$
|
90,200
|
$
|
4,804
|
$
|
1,828
|