Thomas Properties Group, Inc. Announces Fourth Quarter 2012 Results

Thomas Properties Group, Inc. Announces Fourth Quarter 2012 Results

LOS ANGELES--(BUSINESS WIRE)-- Thomas Properties Group, Inc. (NAS: TPGI) reported today the results of operations for the quarter and year ended December 31, 2012.

The results of operations presented in this release include TPGI's results of operations for the three and twelve months ended December 31, 2012 and 2011. The consolidated net loss for the three months ended December 31, 2012 was $13.4 million or $0.29 per share compared to consolidated net income of $10.1 million or $0.27 per share for the three months ended December 31, 2011. The consolidated net loss for the twelve months ended December 31, 2012 was $25.4 million or $0.61 per share compared to consolidated net income of $5.9 million or $0.16 per share for twelve months ended December 31, 2011. The increase in the consolidated net loss during the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 is due to a $6.1 million decrease in investment advisory fees primarily related to one-time incentive fees earned in 2011, $4.6 million of increased impairment charges at our development properties, $23.7 million decrease in income from unconsolidated real estate entities primarily due to our share of gain on disposition of certain joint venture assets in 2011, and a $1.3 million gain from sale of a land parcel for the year ended December 31, 2011 with no comparable gain from sale in 2012.

TPGI's share of after tax cash flow ("ATCF") for the three months ended December 31, 2012 was $4.1 million or $0.09 per share compared to ATCF of $17.9 million or $0.49 per share for the three months ended December 31, 2011. TPGI's share of after tax cash flow for the twelve months ended December 31, 2012 was $7.4 million or $0.18 per share compared to after tax cash flow of $27.2 million or $0.74 per share for the twelve months ended December 31, 2011. The decrease in ATCF per share for the twelve months ended December 31, 2012 compared to the twelve months ended December 31, 2011 was primarily the result of the overall reduction in consolidated net income described above for the twelve months ended December 31, 2012 compared to the same period in the prior year, 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 tax expense (benefit), non-cash charges for depreciation and amortization and asset impairment, amortization of loan costs, non-cash compensation expense, adjustments to recognize rental revenues using the straight-line method, adjustments to rental revenue to reflect the fair market value of rents, and gain from extinguishment of debt. ATCF is further described in note (a) and reconciled to net income (loss) in the financial statements below.

"During 2012, we made real progress toward the achievement of our strategic plan," said Jim Thomas, Chairman and CEO. "We have continued to dispose of non-core operating assets and non income-producing investments and to pay down debt where practicable. We have recapitalized and increased our ownership interest in our Austin properties, and we have increased the occupancy of our present portfolio to 88%. We are continuing our focused strategy of maximizing our recurring cash flow and expanding our asset base."

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, February 14, 2013 at 10:00 a.m. Pacific Time. To participate in the call, dial (866) 713-8564 and (617) 597-5312 internationally, and provide confirmation code 43009130.

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 March 7, 2013, by calling (888) 286-8010 and (617) 801-6888 internationally, and providing confirmation code 72959301. The replay will also be available on Thomas Properties Group, Inc.'s web site 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.