Cousins Properties 3rd quarter net income up 55%, FFO UP 19%.Incorporated (NYSE NYSE See: New York Stock Exchange :CUZ CUZ Because cuz Cousin CUZ Cuzco, Peru - Tte Velazco Astete (Airport Code) ), today reported increased net income and increased Funds From Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. compared with the third quarter of 1994. Funds From Operations ("FFO FFO See: Funds from operations ") in the third quarter of 1995 increased to $9,017,000 ($.32 per share) compared with $7,505,000 ($.27 per share) in the third quarter of 1994, a 19% per share increase. Income before gain on sale of investment properties for the third quarter of 1995 increased to $7,853,000 ($.28 per share), compared with $4,457,000 ($.16 per share) in the third quarter of 1994. Gain on sale of investment properties contributed an additional $.06 per share in both the 1994 and 1995 third quarters, increasing net income per share to $.22 and $.34, respectively, a 55% per share increase. Contributing to the net income and FFO increases were the completion and leaseup of several retail power centers during the past year and continued leaseup of the Company's office properties. In addition, net income in the third quarter of 1995 included $2.8 million ($2.2 million net of income taxes) of development income from Cousins' Dusseldorf joint venture which had been recognized in FFO as it was received, but had been deferred for net income purposes until completion of the venture's office building project. The FFO reported for both years includes the effect of changes to the FFO definition recommended by the National Association of Real Estate Investment Trusts for implementation by 1996. Under these changes, depreciation of furniture, fixtures and equipment Furniture, fixtures and equipment (or FF&E) is an accounting term used in valuing, selling, or liquidating a company or a building. FF&E are movable furniture, fixtures or other equipment that have no permanent connection to the structure of a building or utilities. , and amortization of deferred financing costs, are not added back to net income in calculating FFO. The effect of these changes was less than $.01 per share in the third quarter of both years, and less than $.03 per share on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The Company also reported the following supplemental information which it believes is necessary to compare its FFO with the FFO of more traditional REITs. When Cousins develops its own properties, it capitalizes certain costs related to those properties, but it does not recognize the fees it would otherwise recognize if it developed these same properties in joint ventures. Because Cousins has been developing more wholly owned properties and doing less joint venture development, the effect of this accounting anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. is expected to become more material in coming years. If Cousins recognized its internal fees instead of capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. internal costs, its FFO would have been $855,000 higher in the third quarter of 1995. In addition, unlike many REITs Cousins has considerable land holdings which provide a strong base for future FFO growth as land is developed or sold in future years. Property taxes on the land, which are expensed currently, reduce current FFO. For comparability with REITs with little or no land holdings, an upward adjustment in FFO for these property taxes is required, which for the third quarter of 1995 is $307,000 ($.04 per share on an annualized basis). The total effect of the internal fee and property tax adjustments is an increase in FFO of $1,162,000 ($.04 per share) in the third quarter of 1995, or a total comparable FFO of $.36 per share. The comparable FFO was $.31 per share in the third quarter of 1994. Accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. Materials: Financial Highlights COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: ENTITIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER September: see month. 30, 1994 AND 1995 (UNAUDITED) ($ in thousands, except per share amounts) Three Months Nine Months Ended Ended September 30, September 30, 1994 1995 1994 1995 ------ ------- ------- ------- REVENUES: Rental property revenues $3,507 $ 4,844 $ 8,957 $13,867 Development and construction fees 148 2,804 564 3,305 Management fees 522 547 1,539 1,648 Leasing and other fees 425 421 1,422 1,743 Residential lot and outparcel sales 2,389 5,469 2,959 7,595 Interest and other 1,156 1,245 4,964 3,581 ------ ------- ------- ------- 8,147 15,330 20,405 31,739 ------ ------- ------- ------- INCOME FROM UNCONSOLIDATED JOINT VENTURES 3,335 3,467 9,350 10,336 ------ ------- ------- ------- COSTS AND EXPENSES: Rental property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. 798 1,119 2,293 3,227 General and administrative expenses 1,825 1,801 5,924 5,819 Depreciation and amortization 1,065 1,088 2,770 3,208 Leasing and other commissions 3 13 61 18 Stock appreciation right expense 380 308 184 493 Residential lot and outparcel cost of sales 2,172 5,142 2,657 7,085 Interest expense 10 123 348 377 Property taxes on undeveloped land 554 286 860 740 Other 383 502 701 1,138 ------ ------- ------- ------- 7,190 10,382 15,798 22,105 ------ ------- ------- ------- INCOME FROM OPERATIONS BEFORE INCOME TAXES AND GAIN ON SALE OF INVESTMENT PROPERTIES 4,292 8,415 13,957 19,970 PROVISION (BENEFIT) FOR INCOME TAXES FROM OPERATIONS (165) 562 (112) 803 ------ ------- ------- ------ INCOME BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES 4,457 7,853 14,069 19,167 GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION 1,677 1,746 4,919 1,746 ------ ------- ------- ------- NET INCOME $6,134 $ 9,599 $18,988 $20,913 ====== ======= ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING 27,843 28,027 27,842 27,941 ====== ======= ======= ======= INCOME PER SHARE: From operations before gain on sale of investment properties $ .16 $ .28 $ .50 $ .69 From gain on sale of investment properties, net of applicable income tax provision .06 .06 .18 .06 ------ ------- ------- ------- NET INCOME PER SHARE $ .22 $ .34 $ .68 $ .75 ====== ======= ======= ======= CASH DIVIDENDS DECLARED de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. PER SHARE $ .22 $ .24 $ .66 $ .72 ====== ======= ======= ======= COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES FUNDS FROM OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1995 (UNAUDITED) ($ in thousands, except per share amounts) Three Months Nine Months Ended Ended September 30, September 30, 1994 1995 1994 1995 ------ ------- ------- ------- Cash flows from operating activities of Cousins Properties Incorporated and Consolidated Entities $11,163 $13,330 $24,904 $30,255 Changes in other operating assets Operating Assets Another term for working capital. and liabilities (2,522) (1,287) (1,879) (1,100) Residential lot and outparcel cost of sales (2,144) (4,986) (2,629) (6,832) Amortization of deferred financing costs and depreciation of furniture, fixtures and equipment (205) (100) (444) (294) ------- ------- ------- ------- Funds From Operations from Consolidated Entities 6,292 6,957 19,952 22,029 ------- ------- ------- ------- Operating distributions from unconsolidated joint ventures (3,783) (3,431) (12,592)(11,220) Company's share of Funds From Operations of its unconsolidated joint ventures: Wildwood Wildwood, city (1990 pop. 4,484), Cape May co., SE N.J., on an island off Cape May; settled 1882, inc. as a city 1911. It has large commercial fisheries and is a popular summer seaside resort with many vintage motels and other buildings from the 1940s–60s. Associates 1,656 1,646 4,772 4,963 CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, Associates, L.P. 2,356 2,750 6,702 7,920 Ten Peachtree Peachtree can be several things:
Haywood Mall Haywood Mall is a mall in Greenville, South Carolina, United States. The mall's anchor stores include Belk, Dillard's, JCPenney, Macy's and Sears. With over 1.3 million square feet, it is the largest mall in the state of South Carolina. Associates 832 828 2,229 2,484 Spring/Haynes Associates (42) 15 (34) 49 Norfolk Norfolk, cities, United States Norfolk (1, 2 nôr`fək; 2 nôr`fôk'). 1 City (1990 pop. 21,476), Madison co., NE Nebr., on the Elkhorn River; inc. 1881. Hotel Associates 56 44 212 122 Other 66 130 320 312 ------- ------ ------- ------- 4,996 5,491 14,417 16,082 ------- ------ ------- ------- Consolidated Funds Consolidated Fund or the Consolidated Revenue Fund is the term used for the main bank account of the government in many of the countries in the Commonwealth of Nations. From Operations $ 7,505 $ 9,017 $21,777 $26,891 ======= ======= ======= ======= Weighted Average Shares Outstanding 27,843 28,027 27,842 27,941 ======= ======= ======= ======= Consolidated Funds From Operations Per Share $ .27 $ .32 $ .78 $ .96 ======= ======= ======= ======= Company Recommended Comparability Adjustments: Property taxes on land not currently being developed $ 581 $ 307 $ 939 $ 816 Intercompany fees eliminated in consolidation 858 1,511 2,510 3,775 Internal costs capitalized in consolidation related to intercompany fees (349) (656) (936) (1,919) ------- ------- ------- ------- $ 1,090 $ 1,162 $ 2,513 $ 2,672 ======= ======= ======= ======= Comparability Adjustments Per Share $ .04 $ .04 $ .09 $ .10 ======= ======= ======= ======= Comparable FFO Per Share $ .31 $ .36 $ .87 $ 1.06 ======= ======= ======= ======= CONTACT: Cousins Properties, Peter A. Tartikoff, 770/955-2200 |
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