COGDELL SPENCER INC (CSA) filed Quarterly Report for the period ended 2009-06-30.
Charlotte-based Cogdell Spencer Inc.is a fully-integrated self-administered and self-managed real estate investment trust that invests in specialty office buildings for the medical profession including medical offices ambulatory surgery and diagnostic centers. It\'s partnership is with hospitals and physicians to create implement and manage healthcare real estate plans that support the provider\'s healthcare delivery strategy. Cogdell Spencer develops investment real estate that brings physicians and hospitals into positive economic ventures. It is not a commercial real estate firm that happens to build and manage a few medical office buildings as a part of its overall business strategy but rather a healthcare company which specializes in facility development and management. COGDELL SPENCER INC has a market cap of $94.91 million; its shares were traded at around $4.87 with a P/E ratio of 5.02 and P/S ratio of 0.28. The dividend yield of COGDELL SPENCER INC stocks is 8.21%.
Highlight of Business Operations:
In January 2009, the Company began construction on a five-story, 107,000 square foot medical office building development project in Jackson, Tennessee. This $21.1 million West Tennessee MOB project is 75% pre-leased and scheduled for completion during first quarter 2010. The Company expects to own approximately 50% of the building through a joint venture with physician investors. The Company obtained financing in an amount of $14.8 million from a construction loan on the West Tennessee MOB facility. The loan provides for interest-only payments during the construction period at a rate of one-month LIBOR plus 2.50%. In September 2010, the loan converts to an amortizing loan with monthly payments based on a 25-year amortization schedule at an interest rate of one-month LIBOR plus 2.50%. The Company has entered into a forward starting interest rate swap agreement that effectively fixes the interest rate at 6.19% after the construction period through maturity. The loan matures September 2020.
In May 2009, the Company began construction on a 60,000 square foot facility in St. Cloud, Minnesota. The $20.2 million HealthPartners Central Minnesota Clinic is 85% pre-leased and scheduled for completion during the second quarter of 2010. The Company will own 100% of the facility and the Company s subsidiary, Erdman, will perform the development and design-build services. The Company obtained financing in an amount of $14.0 million from a construction loan on the facility. The loan provides for interest-only payments during the construction period at a rate of one-month LIBOR plus 3.25%, but not less than 6.0%. In December 2010, the loan converts to an amortizing loan with monthly payments based on a 22.5-year amortization schedule at an interest rate of one-month LIBOR plus 3.25%, but not less than 6.0%. The loan matures November 2014.
In June 2009, the Company began construction on a 50,575 square foot medical office building in Brandon, Mississippi to serve the communities of the Jackson, Mississippi metro area. The $13.9 million University Physicians-Grants Ferry project is 100% pre-leased and scheduled for completion during the second quarter of 2010. The Company will own 100% of the project and the Company s subsidiary, Erdman, will perform the development and design-build services. The Company obtained financing in an amount of $10.4 million from a construction loan on the medical office building. The loan provides for interest-only payments during the construction period at a rate of one-month LIBOR plus 2.25%. In October 2010, the loan converts to an amortizing loan with monthly payments based on a 25-year amortization schedule at an interest rate of one-month LIBOR plus 2.25%. The Company has entered into a forward starting interest rate swap agreement that effectively fixes the interest rate at 5.95% after the construction period through maturity. The loan matures April 2019.
CSA is in the portfolios of Chris Davis of Davis Selected Advisers.
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