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Thomas Properties Group Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 8, 2012 05:29PM

Thomas Properties Group Inc. (TPGI) filed Quarterly Report for the period ended 2012-06-30. Thomas Properties Group, Inc. has a market cap of $174.2 million; its shares were traded at around $4.51 with a P/E ratio of 22.2 and P/S ratio of 1.8. The dividend yield of Thomas Properties Group, Inc. stocks is 1.3%.



Highlight of Business Operations:

Total expenses remained consistent during the three months ended June 30, 2012 in comparison to the same period in 2011. Increases of $0.2 million in property operating costs, $0.9 million of depreciation and amortization expense and $1.0 million of general and administrative expenses were primarily offset by decreases of $0.6 million in investment advisory expenses, $1.0 million in cost of condominium sales, and $0.4 million in interest expense.

tax expense, as well as higher revenues within our TPG/CalSTRS joint venture resulting from increased occupancy and rental rates at City West Place and City National Plaza. Operating and other expenses for unconsolidated real estate entities increased by $5.0 million, or 15.6%, to $37.1 million for the three months ended June 30, 2012 compared to $32.1 million for three months ended June 30, 2011. The increase was due primarily to increases in property tax expense for the Austin properties resulting from higher assessed values in 2012, as well as increases at City West Place, primarily for cafeteria expenses and HVAC repairs, and City National Plaza, primarily for contract cleaning, earthquake insurance and parking operations. Interest expense increased by approximately $2.0 million, or 8.3%, to $26.2 million for the three months ended June 30, 2012 as compared to $24.2 million for the three months ended June 30, 2011. The increase was due primarily to higher interest rates and greater outstanding loan balances on the Austin Portfolio Bank Term Loan and the Austin Senior Secured Priority Facility. Loss associated with real estate held for disposition increased by approximately $1.9 million, or 33.9%, to a loss of $7.5 million for the three months ended June 30, 2012 compared to a loss of $5.6 million for the three months ended June 30, 2011. The net loss for the three months ended June 30, 2011 included a full quarter's operating results from 2500 City West Boulevard, Centerpointe and Brookhollow, which were sold during the second half of 2011 and first quarter of 2012. Additionally, the loss associated with real estate held for disposition for the three months ended June 30, 2012 includes impairment charges for the Stonebridge Plaza and Research Park Plaza properties in Austin, which have been classified as held for sale in the current quarter, as they were both under contract to be sold in July 2012.

Total revenues decreased by approximately $3.0 million to $42.2 million for the six months ended June 30, 2012 from $45.2 million for the same period for 2011. The decrease was primarily due to $1.0 million decrease in tenant reimbursement revenue during the six months ended June 30, 2012, due to billing adjustments in the prior year, a $1.0 million decrease in condominium sales due to the settlement of four units during the six months ended June 30, 2012 compared to six units during the comparable period in 2011, and a decrease of $1.5 million in investment advisory, management, leasing and development services, fees from properties which were sold in 2011 and the first quarter of 2012. These decreases were offset by a $0.7 million increase of rental revenue at Commerce Square due to new leases.

Aggregate revenues for the unconsolidated real estate entities for the six months ended June 30, 2012 increased approximately $4.6 million or 3.6% to $131.8 million compared to $127.2 million for the six months ended June 30, 2011. The increase is primarily due to higher tenant reimbursement revenue from the Austin properties due to the increase in real estate tax expense, as well as higher revenues within our TPG/CalSTRS joint venture resulting from increased occupancy and rental rates at City West Place and City National Plaza. Operating and other expenses for unconsolidated real estate entities increased by $7.5 million, or 11.8%, to $71.2 million for the six months ended June 30, 2012 compared to $63.7 million for six months ended June 30, 2011. The increase was due primarily to increases in the property tax expense for the Austin properties resulting from higher assessed values in 2012, as well as increases at City West Place, primarily for cafeteria expenses and HVAC repairs, and City National Plaza, primarily for contract cleaning, earthquake insurance, and parking operations. Interest expense increased by approximately $3.7 million, or 7.7%, to $51.7 million for the six months ended June 30, 2012 as compared to $48.0 million for the six months ended June 30, 2011. The increase was due primarily to higher interest rates and greater outstanding loan balances on the Austin Portfolio Bank Term Loan and the Austin Senior Secured Priority Facility. Loss associated with real estate held for disposition decresed by approximately $0.5 million, or 6.8%, to a loss of $6.8 million for the six months ended June 30, 2012 compared to a loss of $7.3 million for the six months ended June 30, 2011, due to aggregate losses during the six months ended June 30, 2011 from 2500 City West Boulevard, Centerpointe and Brookhollow, which were sold during the second half of 2011 and the first quarter of 2012. Additionally, the six months ended June 30, 2012 include impairment charges for the Stonebridge Plaza and Research Park Plaza properties in Austin, which have been classified as held for sale in the six months ended June 30, 2012, as they were both under contract to be sold in July 2012.

contributions and distributions related to our investments in unconsolidated real estate entities, the funding of development and redevelopment projects and recurring and non-recurring capital expenditures. Net cash provided by investing activities increased by $2.5 million to $4.9 million for the six months ended June 30, 2012 compared to $2.4 million used in investing activities for the six months ended June 30, 2011. The increase was due to higher distributions from our unconsolidated real estate entities of $5.7 million, primarily from the sale of our Brookhollow property, and $1.1 million in proceeds from the sale of a land parcel at Four Points Centre during the the first quarter of 2012. This increase was partially offset by a $3.6 million increase in expenditures for improvements to real estate and $1.0 million lower proceeds from condominium unit sales during the six months ended June 30, 2012 compared with the six months ended June 30, 2011.

Read the The complete Report



Stocks Discussed: TPGI,
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