Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COUSINS PROPERTIES INC | a8-kfornorthpark.htm |
| EX-23.1 - EXHIBIT 23.1 - COUSINS PROPERTIES INC | exhibit231consent.htm |
| EX-99.1 - EXHIBIT 99.1 - COUSINS PROPERTIES INC | exhibit9913-14auditreport.htm |
Exhibit 99.2
COUSINS PROPERTIES INCORPORATED
Summary of Unaudited Pro Forma Financial Statements
This pro forma information should be read in conjunction with the consolidated financial statements and notes thereto of Cousins Properties Incorporated (the "Registrant") included in its Annual Report filed on Form 10-K for the year ended December 31, 2013 and its Quarterly Report filed on Form 10-Q for the quarter ended June 30, 2014. In addition, this pro forma information should be read in conjunction with the financial statements and notes thereto of certain acquired properties included in this Current Report on Form 8-K.
The following unaudited pro forma balance sheet as of June 30, 2014 has been prepared to give effect to the acquisition of Northpark Town Center if the transaction occurred on June 30, 2014.
The following unaudited pro forma statements of operations for the six months ended June 30, 2014 and for the year ended December 31, 2013 have been prepared to give effect to the acquisition of Northpark Town Center as if the transaction occurred on January 1, 2013.
These unaudited pro forma financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the acquisition of Northpark Town Center been consummated on January 1, 2013. In addition, the pro forma balance sheet includes pro forma allocations of the purchase price based upon preliminary estimates of the fair value of the assets acquired in connection with the acquisition of Northpark Town Center. These allocations may be adjusted in the future upon finalization of these preliminary estimates.
Cousins Properties Incorporated and Subsidiaries
Pro Forma Consolidated Balance Sheet
June 30, 2014
(unaudited; in thousands)
Cousins Properties Incorporated Historical (a) | Adjustments | Pro Forma | |||||||||||
Assets | |||||||||||||
Real estate assets: | |||||||||||||
Operating properties, net | $ | 1,817,439 | $ | 319,765 | (b) | $ | 2,137,204 | ||||||
Projects under development | 56,760 | 56,760 | |||||||||||
Other | 26,790 | 26,790 | |||||||||||
1,900,989 | 319,765 | 2,220,754 | |||||||||||
Operating properties and related assets held for sale, net | 11,396 | 11,396 | |||||||||||
Cash and cash equivalents | 6,257 | (6,257) | (c) | - | |||||||||
Restricted cash | 3,912 | 3,912 | |||||||||||
Notes and accounts receivable, net | 10,733 | 10,733 | |||||||||||
Deferred rents receivable | 51,555 | 51,555 | |||||||||||
Investments in unconsolidated joint ventures | 111,164 | 111,164 | |||||||||||
Intangible assets, net | 147,721 | 33,515 | (b) | 181,236 | |||||||||
Other assets | 35,773 | 35,773 | |||||||||||
Total assets | $ | 2,279,500 | $ | 347,023 | $ | 2,626,523 | |||||||
Liabilities and equity | |||||||||||||
Notes payable | $ | 665,852 | $ | 339,586 | (d) | $ | 1,005,438 | ||||||
Accounts payable and accrued expenses | 72,577 | 72,577 | |||||||||||
Deferred income | 23,681 | 23,681 | |||||||||||
Intangible liabilities, net | 60,806 | 7,971 | (b) | 68,777 | |||||||||
Other liabilities | 15,704 | 15,704 | |||||||||||
Total liabilities | 838,620 | 347,557 | 1,186,177 | ||||||||||
Equity: | |||||||||||||
Stockholders’ investment: | |||||||||||||
Common stock | 202,044 | 202,044 | |||||||||||
Additional paid-in capital | 1,514,959 | 1,514,959 | |||||||||||
Treasury stock at cost | (86,840) | (86,840) | |||||||||||
Distributions in excess of cumulative net income | (190,857) | (534) | (e) | (191,391) | |||||||||
Total stockholders’ investment | 1,439,306 | (534) | 1,438,772 | ||||||||||
Nonredeemable noncontrolling interests | 1,574 | 1,574 | |||||||||||
Total equity | 1,440,880 | (534) | 1,440,346 | ||||||||||
Total liabilities and equity | $ | 2,279,500 | $ | 347,023 | $ | 2,626,523 | |||||||
The accompanying notes are an integral part of this statement.
(a) | Historical financial information is derived from the Registrant's Form 10-Q for the quarter ended June 30, 2014. |
(b) | Reflects the purchase price of the assets and liabilities in connection with the acquisition, net of any purchase price adjustments. |
(c) | Represents cash assumed to be used to fund the acquisition. |
(d) | Represents amounts assumed to be drawn on the Registrant’s Credit Facility to fund the acquisition. As of June 30, 2014, the Credit Facility bears interest at rates equal to (1) LIBOR plus the applicable LIBOR spread or (2) the greater of (a) Bank of America’s prime rate, (b) the federal funds rate plus 0.50% or (c) the one-month LIBOR plus 1.0%, plus the applicable base rate spread. The applicable LIBOR spread may vary from 1.10% to 1.45% and the applicable base rate spread may vary from 0.10% to 0.45% based on the Registrant’s then-current leverage ratio. |
(e) | Reflects the expensing of acquisition-related costs. |
Cousins Properties Incorporated and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Six Months Ended June 30, 2014
(unaudited; in thousands, except per share amounts)
Cousins Properties Incorporated Historical(a) | Adjustments | Pro Forma | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Rental property revenues | $ | 157,518 | $ | 18,272 | (b) | $ | 175,790 | |||||||||||||||||
Fee income | 4,363 | 4,363 | ||||||||||||||||||||||
Other | 4,347 | 4,347 | ||||||||||||||||||||||
166,228 | 18,272 | 184,500 | ||||||||||||||||||||||
Costs and Expenses | ||||||||||||||||||||||||
Rental property operating expenses | 70,816 | 6,576 | (c) | 77,392 | ||||||||||||||||||||
Reimbursed expenses | 1,920 | 1,920 | ||||||||||||||||||||||
General and administrative expenses | 11,366 | 11,366 | ||||||||||||||||||||||
Interest expense | 14,137 | 2,691 | (d) | 16,828 | ||||||||||||||||||||
Depreciation and amortization | 69,274 | 9,684 | (e) | 78,958 | ||||||||||||||||||||
Separation expenses | 84 | 84 | ||||||||||||||||||||||
Acquisition and related costs | 171 | 171 | ||||||||||||||||||||||
Other | 1,370 | 1,370 | ||||||||||||||||||||||
169,138 | 18,951 | 188,089 | ||||||||||||||||||||||
Income (loss) from continuing operations before taxes, unconsolidated joint ventures and sale of investment properties | (2,910) | (679) | (3,589) | |||||||||||||||||||||
Benefit (provision) for income taxes from operations | 21 | 21 | ||||||||||||||||||||||
Income from unconsolidated joint ventures | 3,313 | 3,313 | ||||||||||||||||||||||
Income (loss) from continuing operations before gain on sale of investment properties | 424 | (679) | (255) | |||||||||||||||||||||
Gain on sale of investment properties | 1,488 | 1,488 | ||||||||||||||||||||||
Income (loss) from continuing operations | 1,912 | (679) | 1,233 | |||||||||||||||||||||
Income (loss) from discontinued operations | 7,836 | 7,836 | ||||||||||||||||||||||
Net income (loss) | 9,748 | (679) | 9,069 | |||||||||||||||||||||
Net loss attributable to noncontrolling interests | (284) | (284) | ||||||||||||||||||||||
Net income (loss) attributable to controlling interests | 9,464 | (679) | 8,785 | |||||||||||||||||||||
Dividends to preferred stockholders | (2,955) | (2,955) | ||||||||||||||||||||||
Preferred share original issuance costs | (3,530) | (3,530) | ||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 2,979 | $ (679) | $ | 2,300 | |||||||||||||||||||
Per common share information - basic and diluted: | ||||||||||||||||||||||||
Income (loss) from continuing operations attributable to controlling interest | $ | (0.02) | $ | (0.03) | ||||||||||||||||||||
Income (loss) from discontinued operations | $ | 0.04 | $ | 0.04 | ||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 0.02 | $ | 0.01 | ||||||||||||||||||||
Weighted average shares - basic | 195,108 | 195,108 | ||||||||||||||||||||||
Weighted average shares - diluted | 195,347 | 195,347 | ||||||||||||||||||||||
The accompanying notes are an integral part of this statement.
(a) | Historical financial information is derived from the Registrant's Form 10-Q for the quarter ended June 30, 2014. |
(b) | Rental property revenue consists primarily of base rent, tenant reimbursements, and amortization of above-market lease assets and below-market lease liabilities. Base rent is recognized on a straight-line basis beginning on the pro forma acquisition date of January 1, 2013. Tenant reimbursements are defined by the respective leases. Amortization expense is recognized using the straight-line method based on the purchase price allocated to above- and below-market leases over the lives of the respective leases. |
(c) | Consists of property operating expenses, primarily made up of real estate taxes, utilities, management, insurance and maintenance and support services. |
(d) | Represents additional interest expense that would have been incurred on the Registrant’s Credit Facility if the Registrant acquired Northpark Town Center on January 1, 2013 and funded the purchase price with borrowings under the Credit Facility. |
(e) | Depreciation and amortization expense is calculated using the straight-line method based on the purchase price allocated to building, tenant improvements, site improvements and lease intangibles over the lives of the respective leases. |
Cousins Properties Incorporated and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2013
(unaudited; in thousands, except per share amounts)
Cousins Properties Incorporated Historical(a) | Adjustments | Pro Forma | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental property revenues | $ | 194,420 | $ | 35,508 | (b) | $ | 229,928 | ||||||||||||||||
Fee income | 10,891 | 10,891 | |||||||||||||||||||||
Other | 5,430 | 5,430 | |||||||||||||||||||||
210,741 | 35,508 | 246,249 | |||||||||||||||||||||
Costs and Expenses | |||||||||||||||||||||||
Rental property operating expenses | 90,498 | 13,493 | (c) | 103,991 | |||||||||||||||||||
Reimbursed expenses | 5,215 | 5,215 | |||||||||||||||||||||
General and administrative expenses | 21,940 | 21,940 | |||||||||||||||||||||
Interest expense | 21,709 | 5,722 | (d) | 27,431 | |||||||||||||||||||
Depreciation and amortization | 76,277 | 19,369 | (e) | 95,646 | |||||||||||||||||||
Separation expenses | 520 | 520 | |||||||||||||||||||||
Acquisition and related costs | 7,484 | 7484 | |||||||||||||||||||||
Other | 3,693 | - | (f) | 3,693 | |||||||||||||||||||
227,336 | 38,584 | 265,920 | |||||||||||||||||||||
Income (loss) from continuing operations before taxes, unconsolidated joint ventures and sale of investment properties | (16,595) | (3,076) | (19,671) | ||||||||||||||||||||
Benefit (provision) for income taxes from operations | 23 | 23 | |||||||||||||||||||||
Income from unconsolidated joint ventures | 67,325 | 67,325 | |||||||||||||||||||||
Income (loss) from continuing operations before gain on sale of investment properties | 50,753 | (3,076) | 47,677 | ||||||||||||||||||||
Gain on sale of investment properties | 61,288 | 61,288 | |||||||||||||||||||||
Income (loss) from continuing operations | 112,041 | (3,076) | 108,965 | ||||||||||||||||||||
Income (loss) from discontinued operations | 14,788 | 14,788 | |||||||||||||||||||||
Net income (loss) | 126,829 | (3,076) | 123,753 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | (5,068) | (5,068) | |||||||||||||||||||||
Net income (loss) attributable to controlling interests | 121,761 | (3,076) | 118,685 | ||||||||||||||||||||
Dividends to preferred stockholders | (10,008) | (10,008) | |||||||||||||||||||||
Preferred share original issuance costs | (2,656) | (2,656) | |||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 109,097 | $ (3,076) | $ | 106,021 | ||||||||||||||||||
Per common share information - basic and diluted: | |||||||||||||||||||||||
Income (loss) from continuing operations attributable to controlling interest | $ | 0.66 | $ | 0.63 | |||||||||||||||||||
Income (loss) from discontinued operations | $ | 0.10 | $ | 0.10 | |||||||||||||||||||
Net income (loss) available to common stockholders | $ | 0.76 | $ | 0.73 | |||||||||||||||||||
Weighted average shares - basic | 144,255 | 144,255 | |||||||||||||||||||||
Weighted average shares - diluted | 144,420 | 144,420 | |||||||||||||||||||||
The accompanying notes are an integral part of this statement.
(a) | Historical financial information is derived from the Registrant's Annual Report filed on Form 10-K for the year ended December 31, 2013. |
(b) | Rental property revenue consists primarily of base rent, tenant reimbursements, and amortization of above-market lease assets and below-market lease liabilities. Base rent is recognized on a straight-line basis beginning on the pro forma acquisition date of January 1, 2013. Tenant reimbursements are defined by the respective leases. Amortization expense is recognized using the straight-line method based on the purchase price allocated to above- and below-market leases over the lives of the respective leases. |
(c) | Consists of property operating expenses, primarily made up of real estate taxes, utilities, management, insurance and maintenance and support services. |
(d) | Represents additional interest expense that would have been incurred on the Registrant’s Credit Facility if the Registrant acquired Northpark Town Center on January 1, 2013 and funded the purchase price with borrowings under the Credit Facility. |
(e) | Depreciation and amortization expense is calculated using the straight-line method based on the purchase price allocated to building, tenant improvements, site improvements and lease intangibles over the lives of the respective leases. |
(f) | In connection with the Northpark Town Center acquisition, the Registrant incurred estimated acquisition-related costs of approximately $534,000, which have been excluded from the pro forma statement of operations for the year ended December 31, 2013 as these amounts represent non-recurring charges. |