Cousins Properties Reports Results for 2000 and Fourth Quarter.Business Editors ATLANTA--(BUSINESS WIRE)--Feb. 5, 2001 Cousins Properties Incorporated (NYSE NYSE See: New York Stock Exchange :CUZ CUZ Because cuz Cousin CUZ Cuzco, Peru - Tte Velazco Astete (Airport Code) ) - 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. for 2000 increased 16% to $1.92 per share - Fourth Quarter Funds From Operations increased 21% to $0.51 - 96% occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy level for total portfolio - $495 million of projects under development currently 86% leased Cousins Properties Incorporated (NYSE:CUZ) today reported outstanding operating results for the fourth quarter and year ended December December: see month. 31, 2000. The per share results reported herein reflect the effect of the 3-for-2 stock split effected in the form of a 50% stock dividend which was distributed on October October: see month. 2, 2000 to shareholders of record on September September: see month. 15, 2000. FFO FFO See: Funds from operations per share increased 21% to $0.51 per share for the fourth quarter of 2000 from $0.42 per share for the fourth quarter of 1999. FFO increased 24% to $25.7 million in the fourth quarter from $20.7 million a year ago. For the year ended December 31, 2000, FFO per share increased 16% to $1.92 per share from $1.66 per share for the same period last year. FFO increased 17% to $95.2 million in 2000 from $81.3 million for the same period last year. Increases in rental property revenues from properties that had been under development but became partially or fully operational as well as the continued strong performance of existing properties contributed to the positive results for both the fourth quarter and year ended December 31, 2000. All per share amounts are reported on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis; basic per share data is included in the financial tables 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. this release. Commencing with the second quarter of 2000, to reflect the Company's adherence adherence /ad·her·ence/ (ad-her´ens) the act or condition of sticking to something. immune adherence to the NAREIT NAREIT National Association of Real Estate Investment Trusts definition of FFO and to be consistent with industry practice, the Company included gain on sale of undepreciated investment properties in its FFO. For the year ended December 31, 2000, the gain on sale of undepreciated investment properties amounted to $564,000, or $0.01 per share. Results for 1999 have been restated to reflect this change. These sales amounted to $222,000, or less than $0.01 per share, in the year ended December 31, 1999. The Company had no gain on sale of undepreciated investment properties in either the fourth quarter of 2000 or the fourth quarter of 1999. The Company will continue to exclude gain on sale of depreciated Depreciated may refer to:
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the NAREIT definition of FFO. Income before gain on sale of investment properties and cumulative effect of change in accounting principle for the fourth quarter of 2000 was $13.8 million compared with $11.6 million for the same period last year. Income before gain on sale of investment properties and cumulative effect of change in accounting principle per share was $0.27 for the fourth quarter of 2000 compared with $0.24 for the same period last year. Results for both the 2000 and 1999 periods included gain on sale of investment properties of $1.0 million, or $0.02 per share. Income before gain on sale of investment properties and cumulative effect of change in accounting principle for the year ended December 31, 2000 increased 12% to $50.7 million, or $1.02 per share, from $45.3 million, or $0.92 per share, for the same period last year. For the years ended December 31, Cousins recognized gain Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss on sale of investment properties of $11.9 million, or $0.24 per share, in 2000 and $58.8 million, or $1.20 per share, in 1999. In the first quarter of 2000, the Company sold Laguna Laguna (ləg  `nə), pueblo, Valencia co., central N.Mex.; established on its present site 1699. Niguel Promenade promenadePublic place where people walk (or, in the past, rode) at leisure for pleasure, exercise, or display. Promenades are pedestrian avenues pleasingly landscaped or commanding a view, often located along waterfronts and in parks. Vehicular traffic may or may not be restricted. in Laguna Niguel, California Laguna Niguel is a city located in southern Orange County, California. The name "Laguna Niguel" is derived from the Spanish word "Laguna" which means lagoon and the word "Nigueli" which was the name of a Juaneno Indian village once located on Aliso Creek. for $26.7 million, recognizing a book gain of $7.2 million. In the second quarter of 1999, Cousins sold its 50% interest in 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. in Greenville, South Carolina
Greenville is a mid-sized city located in the upstate of South Carolina. It is the county seat of Greenville CountyGR6 for $69 million, recognizing a book gain of $50.1 million. The proceeds from the sale of Haywood Mall were redeployed through a tax-deferred tax-de·ferred adj. 1. Of or relating to an investment that is not liable to taxation until income is withdrawn or an appointed date is reached. 2. exchange into the acquisition of Inforum, a 988,000 rentable square-foot office building located in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . The Company recognized the cumulative effect of change in accounting principle, an expense in the amount of $566,000 or $0.01 per share, in both the fourth quarter and year ended December 31, 2000. This change in accounting principle relates to the Company's early adoption in the fourth quarter of 2000 of Statement of Financial Accounting Standards No. 133 "Accounting for Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and Hedging Activities". This statement only affects the Company as it relates to its ownership of warrants to purchase common stock in other companies which under this statement are considered derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. and must be marked-to-market Marked-to-market An arrangement whereby the profits or losses on a futures contract are settled each day. each period. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. M. DuPree, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Cousins, said, "We are pleased with the results of the quarter and the year as we continue our track record of consistent growth in the fourth quarter. The new FFO generated from the opening of $224 million of new developments during 2000 as well as the FFO from our existing portfolio of highly leased operating properties contributed to this strong growth. This consistent growth is reflected in our dividend. Since 1995, we have increased our dividend rate 89% while reducing our payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. to 63% from 76% in 1995. We continue to have one of the lowest payout ratios amongst the REITs. "Our financial condition continues to be strong as reflected by our low leverage and high interest coverage ratios." The Company's adjusted debt to market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. was 33% as of December 31, 2000, and its interest coverage ratio was 4.35 for the year 2000. "With its current financial condition, the Company is poised to continue its ability to create value through development and opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. acquisitions."
2000 Highlights
- New financings:
Completed $155 million of long-term, non-recourse project
financing at favorable rates:
- 101 Second Street (office project) - $90 million at
8.33%
- The Avenue East Cobb (retail project) - $39 million at
8.39%
- Meridian Mark Plaza (medical office project) - $25.5
million at 8.27%
- Investment of $231 million through commencement of development
of new projects (including share of joint ventures):
Office:
- 55 Second Street San Francisco, CA 375,000 s.f.
- Cerritos Corporate
Center - Phase II Los Angeles, CA 104,000 s.f.
- Austin Research
Park - Buildings
III & IV Austin, Texas 358,000 s.f.
- Crawford Long
Medical Office
Building Atlanta, GA 366,000 s.f.
Retail:
- The Avenue Peachtree
City Atlanta, GA 167,000 s.f.
- Acquisitions of $60 million of operating properties with
re-development opportunities:
- One Georgia
Center Atlanta, GA 363,000 s.f.
- The Points at
Waterview Dallas, TX 200,000 s.f.
- Opened $224 million of new developments (including share of
joint ventures):
Office:
- 1155 Perimeter
Center West Atlanta, GA 362,000 s.f.
- Gateway Village Charlotte, NC 1,065,000 s.f.
- 1900 Duke Street Washington, D.C. 97,000 s.f.
Retail:
- Mira Mesa
MarketCenter San Diego, CA 447,000 s.f.
- Salem Road
Station Atlanta, GA 67,000 s.f.
- Disposition of Laguna Niguel Promenade, a 154,000 s.f. retail
center for $26.7 million, recognizing a book gain of $7.2
million.
At January January: see month. 31, 2001, Cousins' portfolio of operational office buildings was 98% leased; its operational retail centers were 93% leased; and its operational medical office buildings were 90% leased. Cousins Properties Incorporated, headquartered in Atlanta, has extensive experience in the real estate industry including the development, acquisition, financing, management and leasing of properties. The property types that Cousins actively invests in include office, retail, medical office and land development projects. The Company's portfolio consists of interests in 12.8 million square feet of office space, 3.5 million square feet of retail space and .9 million square feet of medical office space, and more than 300 acres of strategically located land for future commercial development. Cousins is a fully integrated equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) that has been public since 1962 and trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol "CUZ." For more information on the Company, please visit Cousins' web site at www.cousinsproperties.com. Included with this press release are 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: Statements of Income and Funds From Operations. Supplemental financial and property information, including Funds From Operations Supplemental Detail, a Portfolio Listing and a Development Pipeline are available on the Company's web site, www.cousinsproperties.com, or via fax by calling the Company's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department, (770) 857-2394. The Company will conduct a conference call at 3:00 p.m (Eastern time) on February February: see month. 6, 2001, to discuss the results of this year's fourth quarter. The number to call for this interactive teleconference is (913) 981-5581. A replay of the conference call will be available until February 9, 2001, by dialing (719) 457-0820 and entering the passcode, 501766. The Company will provide an online Web simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and rebroadcast of its fourth quarter 2000 earnings release conference call. The live broadcast of Cousins' quarterly conference call will be available online at www.cousinsproperties.com, www.streetevents.com, and www.vcall.com on February 6, 2001, beginning at 3:00 p.m. (Eastern time). The online replay will be available at these sites for 14 days. Certain matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws and are subject to uncertainties and risks, including, but not limited to, general economic conditions, local real estate conditions, interest rates, the Company's ability to obtain favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. financing, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1996.
COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2000 AND 1999
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Years
Ended December 31, Ended December 31,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
Income before gain on sale of
investment properties and
cumulative effect of change in
accounting principle $13,791 $11,595 $50,672 $45,315
Cumulative effect of change in
accounting principle (566) -- (566) --
Depreciation and amortization 13,366 9,642 47,295 36,737
Amortization of deferred
financing costs and
depreciation of furniture,
fixtures and equipment (281) (222) (1,030) (758)
Elimination of the recognition
of rental revenues on a
straight-line basis (300) (196) (1,629) (142)
Adjustment to reflect stock
appreciation right expense on
a cash basis (317) (86) (68) (101)
Gain on sale of undepreciated
investment properties -- -- 564 222
-------- -------- -------- --------
Consolidated Funds From
Operations $25,693 $20,733 $95,238 $81,273
======== ======== ======== ========
Weighted Average Shares 48,940 48,249 48,632 48,138
======== ======== ======== ========
Consolidated Funds From
Operations Per Share - Basic $.52 $.43 $1.96 $1.69
======== ======== ======== ========
Adjusted Weighted Average
Shares 50,349 49,148 49,731 49,031
======== ======== ======== ========
Consolidated Funds From
Operations Per Share - Diluted $.51 $.42 $1.92 $1.66
======== ======== ======== ========
The table above shows Funds From Operations ("FFO") for Cousins Properties Incorporated and Consolidated Entities and its unconsolidated joint ventures. On a consolidated basis, FFO includes the Company's FFO and the Company's share of FFO of its unconsolidated joint ventures, but excludes the Company's share of distributions from such ventures. 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 straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. 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. Management believes the Company's FFO is not directly comparable to other REITs which own a portfolio of mature income-producing properties because the Company develops projects through a development and lease-up phase before they reach their targeted cash flow returns. Furthermore, the Company eliminates in consolidation fee income for developing and leasing projects owned by consolidated entities, while capitalizing related internal costs. In addition, unlike many REITs, the Company 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. As indicated above, the Company does not include straight-lined Straight´-lined` a. 1. Having straight lines. rents in its FFO, as it could under the NAREIT definition of FFO. Furthermore, most of the Company's leases are also escalated periodically based on the Consumer Price Index, which unlike fixed escalations, do not require rent to be straight-lined; under NAREIT's definition straight-lining of rents produces higher FFO in the early years of a lease and lower FFO in the later years of a lease. FFO is used by industry analysts as a supplemental measure of an equity REIT's performance. FFO should not be considered an alternative to net income or other measurements under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting as an indicator of operating performance, or to cash flows from operating, investing, or financing activities as a measure of liquidity. Supplemental detail FFO information is available from the Company upon request or at the Company's web site at www.cousinsproperties.com.
COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2000 AND 1999
(In thousands, except per share amounts)
Three Months Years
Ended December 31, Ended December 31,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
(Unaudited) (Audited)
REVENUES:
Rental property revenues $33,521 $21,459 $113,986 $62,480
Development income 1,030 1,639 4,251 6,165
Management fees 1,171 1,201 4,841 4,743
Leasing and other fees 354 293 1,608 2,991
Residential lot and outparcel
sales 5,030 4,174 13,951 17,857
Interest and other 1,696 850 5,995 3,588
-------- -------- -------- --------
42,802 29,616 144,632 97,824
-------- -------- -------- --------
INCOME FROM UNCONSOLIDATED
JOINT VENTURES 5,808 5,491 19,452 19,637
-------- -------- -------- --------
COSTS AND EXPENSES:
Rental property operating
expenses 10,468 6,856 33,416 19,114
General and administrative
expenses 4,077 4,752 18,452 14,901
Depreciation and amortization 9,632 6,030 32,784 16,859
Stock appreciation right
expense (credit) (216) (47) 468 108
Residential lot and outparcel
cost of sales 4,415 3,450 11,684 14,930
Interest expense 5,627 170 13,596 600
Property taxes on undeveloped
land (137) 156 40 811
Other 1,322 1,138 4,086 2,381
-------- -------- -------- --------
35,188 22,505 114,526 69,704
-------- -------- -------- --------
INCOME FROM OPERATIONS BEFORE
INCOME TAXES, GAIN ON SALE OF
INVESTMENT PROPERTIES AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 13,422 12,602 49,558 47,757
(BENEFIT) PROVISION FOR INCOME
TAXES FROM OPERATIONS (369) 1,007 (1,114) 2,442
-------- -------- -------- --------
INCOME BEFORE GAIN ON SALE OF
INVESTMENT PROPERTIES AND
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE 13,791 11,595 50,672 45,315
GAIN ON SALE OF INVESTMENT
PROPERTIES, NET OF APPLICABLE
INCOME TAX PROVISION 1,042 1,032 11,937 58,767
-------- -------- -------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF CHANGE IN ACCOUNTING
PRINCIPLE 14,833 12,627 62,609 104,082
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE (566) -- (566) --
-------- -------- -------- --------
NET INCOME $14,267 $12,627 $62,043 $104,082
======== ======== ======== ========
BASIC INCOME PER SHARE:
Income before cumulative
effect of change in
accounting principle $.30 $.26 $1.29 $2.16
Cumulative effect of change in
accounting principle (.01) -- (.01) --
-------- -------- -------- --------
Basic net income per share $.29 $.26 $1.28 $2.16
======== ======== ======== ========
DILUTED INCOME PER SHARE:
Income before cumulative
effect of change in
accounting principle $.29 $.26 $1.26 $2.12
Cumulative effect of change in
accounting principle (.01) -- (.01) --
-------- -------- -------- --------
Diluted net income per share $.28 $.26 $1.25 $2.12
======== ======== ======== ========
CASH DIVIDENDS DECLARED
PER SHARE $.34 $.30 $1.24 $1.12
======== ======== ======== ========
WEIGHTED AVERAGE SHARES 48,940 48,249 48,632 48,138
======== ======== ======== ========
ADJUSTED WEIGHTED AVERAGE
SHARES 50,349 49,148 49,731 49,031
======== ======== ======== ========
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