THOMAS PROPERTIES GROUP INC - FORM 8-K - EX-99.2 - PRESS RELEASE - February 15, 2012

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8-K - FORM 8-K - THOMAS PROPERTIES GROUP INCa2011q4earningsreleasecove.htm
EX-99.1 - SUPPLEMENTAL FINANCIAL INFORMATION FOR THE QUARTER ENDED DECEMBER 31, 2011 - THOMAS PROPERTIES GROUP INCexhibit991-supp12312011.htm


Exhibit 99.2
THOMAS PROPERTIES GROUP, INC. ANNOUNCES
FOURTH QUARTER 2011 RESULTS
Thomas Properties Group, Inc. (Nasdaq: TPGI) reported today the results of operations for the quarter and year ended December 31, 2011.
The consolidated net income for the three months ended December 31, 2011 was $10.1 million or $0.27 per share compared to consolidated net loss of $(6.2) million or $(0.18) per share for the three months ended December 31, 2010. The consolidated net income for the year ended December 31, 2011 was $5.9 million or $0.16 per share compared to consolidated net loss of $(11.5) million or $(0.34) per share for the year ended December 31, 2010. The increase in the consolidated net income for the year ended December 31, 2011 compared to the consolidated net loss for the year ended December 31, 2010 is primarily due to our share of gain on disposition of certain joint venture assets.
After tax cash flow (“ATCF”) for the three months ended December 31, 2011 was $17.9 million or $0.49 per share compared to ATCF of $(0.3) million or $(0.01) per share for the three months ended December 31, 2010. ATCF for the year ended December 31, 2011 was $27.2 million or $0.74 per share compared to ATCF of $9.1 million or $0.27 per share for the year ended December 31, 2010. The increase in ATCF per share for the year ended December 31, 2011 compared to the year ended December 31, 2010 was primarily the result of our share of gain on disposition of certain joint venture assets. 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 gains from extinguishment of debt and foreclosure of real estate. ATCF is further described in note (a) to the financial statements below.
Same Property Highlights:
 
 
 
 
 
 
 
 
 
 Three months ended
December 31, 2011
 
 Twelve months ended
December 31, 2011
 
Net Operating Income ("NOI") Growth:
 
 
 
 
 
 
 
 
Cash Basis
 
12.4%
 
 
 
9.6%
 
 
GAAP Basis
 
6.3%
 
 
 
3.9%
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2011
 
As of December 31, 2010
 
Percent Leased
 
84.2%
 
 
 
83.7%
 
NOI is calculated as rental, tenant reimbursement, parking and other revenues less property operating, maintenance and real estate tax expense.
"Since the beginning of the fourth quarter 2011, we have successfully closed the sales of three office properties, three land parcels and a small retail property, which have generated net proceeds to TPGI of approximately $33.1 million and reduced our share of mortgage debt by approximately $43.6 million. We plan to continue to execute our plan to sell non-strategic assets and to reduce the size of our development portfolio as a percentage of our total portfolio value," stated Jim Thomas, Chairman and CEO. “Property operations continue to show improvement. We have increased our occupancy and are producing strong same property NOI growth."
Supplemental Materials
The company publishes Supplemental Financial Information which is available at www.tpgre.com in the Investor Relations tab, Supplemental Financial Information section. For a reconciliation of NOI for our operating properties to pro-rata consolidated NOI, please see the Supplemental Financial Information. 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 Wednesday, February 15, 2012 at 11:00 a.m. Pacific Time. To participate in the call, dial (866) 713-8310 and (617) 597-5308 internationally, and provide confirmation code 54001472.
A live webcast (listen only mode) of the conference call will also be available at this 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, 2012, by calling (888) 286-8010 and (617) 801-6888 internationally, and providing confirmation code 87919712. 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 and residential properties on a nationwide basis. The company’s primary areas of focus are the acquisition and ownership of premier 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 credit 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, 2010 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 ended December 31,
 
Twelve months ended December 31,
 
 
2011
 
2010
 
2011
 
2010
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Rental
 
$
7,460

 
$
7,412

 
$
29,693

 
$
29,230

Tenant reimbursements
 
5,386

 
4,711

 
22,437

 
20,187

Parking and other
 
734

 
679

 
2,959

 
3,330

Investment advisory, management, leasing and
   development services
 
831

 
2,109

 
8,520

 
7,703

Investment advisory, management, leasing and
   development services - unconsolidated real estate
   entities
 
4,172

 
5,344

 
17,862

 
16,470

Reimbursement of property personnel costs
 
1,421

 
1,584

 
5,810

 
5,797

Condominium sales
 
1,578

 
425

 
7,700

 
14,984

Total revenues
 
21,582

 
22,264

 
94,981

 
97,701

Expenses:
 
 
 
 
 
 
 
 
Property operating and maintenance
 
6,205

 
6,390

 
24,589

 
25,049

Real estate and other taxes
 
1,853

 
1,693

 
7,469

 
6,914

Investment advisory, management, leasing and
   development services
 
2,842

 
4,234

 
12,754

 
12,221

Reimbursable property personnel costs
 
1,421

 
1,584

 
5,810

 
5,797

Cost of condominium sales
 
1,049

 
300

 
5,091

 
10,955

Interest
 
4,309

 
4,871

 
17,938

 
19,239

Depreciation and amortization
 
3,434

 
3,723

 
13,622

 
14,128

General and administrative
 
3,632

 
4,363

 
15,434

 
14,224

Impairment loss
 
8,095

 
4,500

 
8,095

 
4,500

Total expenses
 
32,840

 
31,658

 
110,802

 
113,027

Interest income
 
10

 
17

 
35

 
72

Equity in net income (loss) of unconsolidated real estate
   entities
 
21,889

 
(246
)
 
19,951

 
(1,184
)
Gain on sale of real estate
 
1,258

 
—

 
1,258

 
—

Income (loss) before income taxes and noncontrolling
   interests
 
11,899

 
(9,623
)
 
5,423

 
(16,438
)
Benefit for income taxes
 
428

 
774

 
1,429

 
357

Net income (loss)
 
12,327

 
(8,849
)
 
6,852

 
(16,081
)
Noncontrolling interests' share of net (income) loss:
 
 
 
 
 
 
 
 
Unitholders in the Operating Partnership
 
(3,263
)
 
2,804

 
(1,500
)
 
4,843

Partners in consolidated real estate entities
 
1,004

 
(106
)
 
508

 
(234
)
 
 
(2,259
)
 
2,698

 
(992
)
 
4,609

TPGI share of net income (loss)
 
$
10,068

 
$
(6,151
)
 
$
5,860

 
$
(11,472
)
Income (loss) per share - basic and diluted
 
$
0.27

 
$
(0.18
)
 
$
0.16

 
$
(0.34
)
 
 
 
 
 
 
 
 
 
Weighted average common shares - basic
 
36,647,394

 
35,041,770

 
36,619,558

 
33,684,101

Weighted average common shares - diluted
 
36,865,327

 
35,041,770

 
36,865,286

 
33,684,101

 
 
 
 
 
 
 
 
 
Reconciliation of TPGI's share of net income (loss) to ATCF(a):
 
 
 
 
 
 
 
 
Net income (loss)
 
$
10,068

 
$
(6,151
)
 
$
5,860

 
$
(11,472
)
Adjustments:
 
 
 
 
 
 
 
 




Income tax benefit
 
(428
)
 
(774
)
 
(1,429
)
 
(357
)
Noncontrolling interests - unitholders in the
   Operating Partnership
 
3,263

 
(2,804
)
 
1,500

 
(4,843
)
Depreciation and amortization
 
3,434

 
3,723

 
13,622

 
14,128

Amortization of loan costs
 
170

 
203

 
750

 
897

Non-cash compensation expense
 
238

 
205

 
898

 
672

Straight-line rent adjustments
 
20

 
(775
)
 
(150
)
 
(1,842
)
Adjustments to reflect the fair market value of rent
 
7

 
1

 
23

 
2

Impairment loss
 
8,095

 
4,500

 
8,095

 
4,500

Unconsolidated real estate entities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
2,787

 
2,433

 
10,820

 
12,296

Depreciation and amortization from discontinued
   operations
 
248

 
281

 
1,846

 
3,303

Amortization of loan costs
 
80

 
251

 
311

 
588

Amortization of loan costs from discontinued
   operations
 
36

 
30

 
116

 
130

Straight-line rent adjustments
 
2

 
(105
)
 
(215
)
 
(636
)
Straight-line rent adjustments from discontinued
   operations
 
(26
)
 
(189
)
 
(282
)
 
(555
)
Adjustments to reflect the fair market value of rent
 
(254
)
 
(252
)
 
(1,094
)
 
(1,109
)
Adjustments to reflect the fair market value of rent
   from discontinued operations
 
4

 
17

 
49

 
7

Impairment loss
 
3,150

 
—

 
3,150

 
—

Impairment loss from discontinued operations
 
1,943

 
—

 
1,943

 
—

Gain on extinguishment of debt
 
—

 
—

 
—

 
(895
)
Gain on extinguishment of debt from discontinued
   operations
 
(1,297
)
 
(331
)
 
(1,630
)
 
(1,058
)
Gain on foreclosure of real estate from discontinued
   operations
 
(7,506
)
 
—

 
(7,506
)
 
—

ATCF before income taxes
 
$
24,034

 
$
263

 
$
36,677

 
$
13,756

TPGI share of ATCF before income taxes (b)
 
$
17,946

 
$
188

 
$
27,401

 
$
9,759

TPGI income tax expense - current
 
(64
)
 
(494
)
 
(221
)
 
(639
)
TPGI share of ATCF
 
$
17,882

 
$
(306
)
 
$
27,180

 
$
9,120

ATCF per share - basic
 
$
0.49

 
$
(0.01
)
 
$
0.74

 
$
0.27

ATCF per share - diluted
 
$
0.49

 
$
(0.01
)
 
$
0.74

 
$
0.27

Weighted average common shares - basic
 
36,647,394

 
35,041,770

 
36,619,558

 
33,684,101

Weighted average common shares - diluted
 
36,865,327

 
35,041,770

 
36,865,286

 
33,949,968


a.
ATCF is a non-GAAP financial measure and may not be directly comparable to similarly-titled measures reported by other companies. We define ATCF as net income (loss) excluding the following items: i) deferred income tax expense (benefit); ii) noncontrolling interests; iii) non-cash charges for depreciation and amortization and asset impairment; iv) amortization of loan costs; v) non-cash compensation expense; vi) the adjustment to recognize rental revenues using the straight-line method; vii) the adjustment to rental revenue to reflect the fair market value of rents; and viii) gain on extinguishment of debt. Management utilizes ATCF data in assessing performance of our business operations in period-to-period comparisons and for financial planning purposes. ATCF should be considered only as a supplement to net income as a measure of our performance. ATCF should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. ATCF also should not be used as a supplement to or substitute for cash flow from operating activities (computed in accordance with GAAP).
b.
Based on an interest in our operating partnership of 74.67% and 74.71% for the three and twelve months ended December 31, 2011, respectively, and 71.83% and 70.95% for the three and twelve months ended December 31, 2010, respectively.






THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
 

 
December 31,
2011

 
December 31,
2010

 
(unaudited)
 
(audited)
ASSETS
 
 
 
Investments in real estate:
 
 
 
Operating properties, net
$
265,202

 
$
265,565

Land improvements—development properties
80,254

 
96,635

 
345,456

 
362,200

Condominium units held for sale
45,217

 
49,827

Investments in unconsolidated real estate entities
8,834

 
17,975

Cash and cash equivalents, unrestricted
79,320

 
42,346

Restricted cash
10,616

 
13,069

Rents and other receivables, net
1,903

 
1,754

Receivables from unconsolidated real estate entities
2,918

 
2,979

Deferred rents
17,866

 
14,592

Deferred leasing and loan costs, net
12,283

 
13,538

Other assets, net
17,465

 
17,875

Assets associated with land held for sale
1,107

 
4,080

Total assets
$
542,985

 
$
540,235

LIABILITIES AND EQUITY
 
 
 
Liabilities:
 
 
 
Mortgage and other secured loans
$
289,523

 
$
299,261

Accounts payable and other liabilities, net
32,443

 
29,009

Prepaid rent and deferred revenue
3,019

 
2,888

Obligations associated with land held for sale
27

 
1,286

Total liabilities
325,012

 
332,444

 
 
 
 
Equity:
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock, $.01 par value, 25,000,000 shares authorized, none issued or outstanding as of December 31, 2011 and 2010
—

 
—

Common stock, $.01 par value, 225,000,000 shares authorized, 37,094,995 and 36,943,394 shares issued and outstanding as of December 31, 2011 and December 31, 2010, respectively
371

 
369

Limited voting stock, $.01 par value, 20,000,000 shares authorized, 12,313,331 and 12,313,331 shares issued and outstanding as of December 31, 2011 and December 31, 2010, respectively
123

 
123

Additional paid-in capital
208,473

 
207,953

Retained deficit and dividends
(55,472
)
 
(60,790
)
Total stockholders’ equity
153,495

 
147,655

Noncontrolling interests:
 
 
 
Unitholders in the Operating Partnership
52,983

 
51,478

Partners in consolidated real estate entities
11,495

 
8,658

Total noncontrolling interests
64,478

 
60,136

Total equity
217,973

 
207,791

Total liabilities and equity
$
542,985

 
$
540,235









Contact: Thomas Properties Group, Inc.
Website: www.tpgre.com
Diana Laing, Chief Financial Officer
213-613-1900

 




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