Thomas Properties Group, Inc. Announces Third Quarter 2012 Results

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Thomas Properties Group, Inc. Announces Third Quarter 2012 Results

LOS ANGELES--(BUSINESS WIRE)-- Thomas Properties Group, Inc. (NAS: TPGI) reported today the results of operations for the quarter ended September 30, 2012.

The results of operations presented in this release include TPGI's results of operations for the three and nine months ended September 30, 2012 and 2011. The consolidated net loss for the three months ended September 30, 2012 was $4.1 million or $0.09 per share compared to consolidated net income of $2.1 million or $0.06 per share for the three months ended September 30, 2011. The consolidated net loss for the nine months ended September 30, 2012 was $12.0 million or $0.30 per share compared to consolidated net loss of $4.2 million or $0.11 per share for nine months ended September 30, 2011. The increase in the consolidated net loss is primarily due to lower tenant reimbursement revenues and a decrease in investment advisory fees. Also contributing to the increase in net loss is a decrease in condominium unit sales at Murano, as we closed on the sale of nine condominium units during the nine months ended September 30, 2012 compared to twelve units during the nine months ended September 30, 2011.


After tax cash flow ("ATCF") for the three months ended September 30, 2012 was $1.3 million or $0.03 per share compared to ATCF of $5.6 million or $0.15 per share for the three months ended September 30, 2011. After tax cash flow for the nine months ended September 30, 2012 was $3.4 million or $0.08 per share compared to after tax cash flow of $9.3 million or $0.25 per share for the nine months ended September 30, 2011. The decrease in ATCF per share for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 was primarily the result of the decreased revenues resulting from fewer Murano condominium sales and the increased number of shares of our common stock outstanding resulting from the issuance of common stock in 2012. The Company defines ATCF (a non-GAAP financial measure) as net income (loss) excluding the following items: noncontrolling interests, deferred income taxes, non-cash charges for depreciation and amortization and asset impairment, amortization of loan costs, non-cash compensation expense, straight-line rent adjustments, adjustments to reflect the fair market value of rent, and gain from extinguishment of debt. ATCF is further described in note (a) and reconciled to net income (loss) in the financial statements below.

"Our purchase of the Austin portfolio along with CalSTRS and Madison International Realty was the focus and highlight of the third quarter," said James Thomas, Chairman, President and CEO of Thomas Properties Group, Inc. "In keeping with our strategic plan, we, through our investment with Madison, control 50% of the portfolio. By repaying short term floating rate debt, we deleveraged the portfolio and positioned it to take advantage of improving market conditions in Austin. We continue to focus on converting a substantial part of our land holdings into cash-flowing properties as we move the Company toward REIT status."

Supplemental Materials

The Company publishes a Supplemental Financial Information package which is available at www.tpgre.com in the Investor Relations tab, Supplemental Financial Information section. The Company also provides an estimated net asset value workbook, available for download at www.tpgre.com in the Investor Relations tab, NAV Workbook section.

Teleconference and Webcast

TPGI will hold a quarterly earnings conference call on Thursday, November 1, 2012 at 10:00 a.m. Pacific Time. To participate in the call, dial (877) 299-4454 and (617) 597-5447 internationally, and provide confirmation code 90417889.

A live webcast (listen only mode) of the conference call will also be available at that time. A hyperlink to the live webcast will be available from the Investor Relations section of our website at www.tpgre.com. A replay of the call will be available through November 22, 2012, by calling (888) 286-8010 and (617) 801-6888 internationally, and providing confirmation code 49670632. The replay will also be available on Thomas Properties Group, Inc.'s website at www.tpgre.com. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

About Thomas Properties Group, Inc.

Thomas Properties Group, Inc., with headquarters in Los Angeles, is a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use properties on a nationwide basis. The Company's primary areas of focus are the acquisition and ownership of interests in premier office properties, property development and redevelopment, and property and investment management activities. For more information on Thomas Properties Group, Inc., visit www.tpgre.com.

Forward-Looking Statements

Statements made in this press release or during the quarterly earnings conference call that are not historical may contain forward-looking statements. Although TPGI believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Factors that could cause actual results to differ materially from TPGI's expectations include actual and perceived trends in various national and economic conditions that affect global and regional markets for commercial real estate services (including interest rates), the availability of debt and equity investors to finance commercial real estate transactions, our ability to enter into or renew leases at favorable rates, which can be impacted by the financial condition of our tenants, risks associated with the success of our development and property redevelopment projects, general volatility in the securities and credit markets, and the impact of tax laws affecting real estate. For a discussion of some of the factors that may cause our results to differ from management's expectations, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K for the year ended December 31, 2011 and our subsequent Form 10-Q quarterly reports, each of which is filed with the Securities and Exchange Commission. TPGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

      

THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)


(Unaudited)

 
Three months endedNine months ended
September 30,September 30,
2012   20112012   2011
Revenues:
Rental$7,813$7,446$23,343$22,233
Tenant reimbursements5,3445,66615,74617,051
Parking and other7867082,2712,225
Investment advisory, management, leasing and development services1,0055,5652,6697,689

Investment advisory, management, leasing and development services - unconsolidated real estate entities

3,5884,32411,90913,690
Reimbursement of property personnel costs1,2731,3654,1404,389
Condominium sales2,302 3,084 4,266 6,122 
Total revenues22,111 28,158 64,344 73,399 
Expenses:
Property operating and maintenance6,1836,21118,19818,384
Real estate and other taxes1,7421,8545,6275,616
Investment advisory, management, leasing and development services2,6343,2738,6289,912
Reimbursable property personnel costs1,2731,3654,1404,389
Cost of condominium sales1,8582,0553,2514,042
Interest4,2054,33112,65913,629
Depreciation and amortization4,1203,44711,78210,188
General and administrative3,893 3,925 13,024 11,802 
Total expenses25,908 26,461 77,309 77,962 
Interest income3955225
Equity in net income (loss) of unconsolidated real estate entities(1,797)(353)(2,613)(1,938)
Income (loss) before income taxes and noncontrolling interests(5,555)1,349(15,526)(6,476)
Benefit (provision) for income taxes442 1,206 368 1,001 
Net income (loss)(5,113)2,555 (15,158)(5,475)
Noncontrolling interests' share of net (income) loss:
Unitholders in the Operating Partnership1,226(295)3,8171,763
Partners in consolidated real estate entities(198)(177)(668)(496)
1,028 (472)3,149 1,267 
TPGI share of net income (loss)$(4,085)$2,083 $(12,009)$(4,208)
Income (loss) per share - basic and diluted$(0.09)$0.06$(0.30)$(0.11)
Weighted average common shares outstanding—basic45,517,20736,647,39440,301,22436,610,178
Weighted average common shares outstanding—diluted45,517,20736,873,33940,301,22436,610,178
 
Reconciliation of net income (loss) to ATCF(a):
Net income (loss)$(4,085)$2,083$(12,009)$(4,208)
Adjustments:
Income tax (benefit) provision(442)(1,206)(368)(1,001)
Noncontrolling interests - unitholders in the Operating Partnership(1,226)295(3,817)(1,763)
Depreciation and amortization4,1203,44711,78210,188

Depreciation and amortization - noncontrolling interest share

(224)(224)
Amortization of loan costs120153440580
Non-cash compensation expense3241271,235660
Straight-line rent adjustments59(22)(296)(170)

Straight-line rent adjustments - noncontrolling interest share

3434
Adjustments to reflect the fair market value of rent1273116
Unconsolidated real estate entities:
Depreciation and amortization3,017 Read Full Story

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