Parkway Properties Inc. (PKY, Financial) filed Quarterly Report for the period ended 2010-09-30.
Parkway Properties Inc. has a market cap of $356 million; its shares were traded at around $16.17 with and P/S ratio of 1.4. The dividend yield of Parkway Properties Inc. stocks is 1.9%. Parkway Properties Inc. had an annual average earning growth of 5% over the past 10 years.PKY is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
On April 15, 2010, Parkway sold One Park Ten, a 163,000 square foot office property in Houston, Texas, for a gross sales price of $15.7 million. Parkway received net cash proceeds of $4.8 million, which were used to reduce amounts outstanding under the Company s line of credit. Parkway recognized a gain on the sale of $8.5 million during the second quarter of 2010. In connection with the sale of One Park Ten, the $8.7 million first mortgage was assumed by the buyer and the Company seller-financed a $1.5 million note receivable that bears interest at 7.25% per annum on an interest-only basis through maturity in June 2012. PRS was retained to provide management and leasing services for the property. During the third quarter of 2010, the management agreement for the property was terminated. Therefore, all income for current and prior periods was reclassified to discontinued operations.
As previously disclosed, on July 30, 2010, the Company purchased a first mortgage loan secured by three properties owned by RubiconPark I, LLC (“Rubicon JV”) for $35.0 million. The Rubicon JV is a joint venture between Rubicon US REIT and Parkway. The loan had a $2.0 million rollover reserve which was credited to Parkway at closing, for a net purchase price of $33.0 million. The loan had a principal balance of $51.0 million at the time of purchase by Parkway. The loan was secured by Carmel Crossing, a 326,000 square foot office complex located in Charlotte, North Carolina, Falls Pointe, a 107,000 square foot office property in Atlanta, Georgia, and Lakewood II, a 128,000 square foot office property also in Atlanta, Georgia. As of September 30, 2010, this mortgage loan was accounted for as real estate related to office and parking properties on the Company s consolidated balance sheet. During October 2010, the Company, as holder of the mortgage, foreclosed on the three properties, which served as collateral for the associated loan.
On October 29, 2010, the Company sold the two Atlanta properties previously owned by the Rubicon JV and described above for $8.0 million to Parkway Properties Office Fund II, LP (“Texas Fund II”), the Company s $750.0 million discretionary fund with Teacher Retirement System of Texas. Carmel Crossing, located in Charlotte, North Carolina, is under contract to be sold to Texas Fund II for $25.0 million and is subject only to North Carolina law which requires the creditor to allow additional offers to be accepted on foreclosed properties for a period of 10 days following the foreclosure sale date. The anticipated closing date of Carmel Crossing is November 2010. An additional $7.3 million is expected to be spent for closing costs, building improvements and leasing costs during the first two years of ownership. The Company expects to finalize the purchase price allocation for this investment during the fourth quarter of 2010. The Texas Fund II plans to place a non-recourse first mortgage on Carmel Crossing in the amount of approximately 50% of the value of the property during the first quarter of 2011. The total sale of these three assets is expected to result in Parkway receiving $22.5 million in cash upon closing. Parkway s equity ownership in the three properties after the sale is 30% or $9.9 million.
Mortgage Notes Payable. During the nine months ended September 30, 2010, mortgage notes payable decreased $37.2 million or 4.4% and is due to the net effect of scheduled principal payments on mortgages of $10.7 million, the transfer of one mortgage to the purchaser of One Park Ten of $8.7 million and the retirement of existing mortgage debt of $87.8 million, offset by the placement of mortgage debt of $70.0 million.
On February 8, 2010, the Company obtained a $35.0 million non-recourse, first mortgage loan related to the refinance of a $60.0 million recourse mortgage that was scheduled to mature in May 2010. The mortgage loan bears interest at a fixed rate of 7.25% and is secured by the Company s Capital City Plaza building in Atlanta, Georgia. The mortgage loan matures in March 2017 and includes the option to be prepaid at the end of five years at a cost of 1% of the outstanding loan balance. The Company used available proceeds under its line of credit to pay the $25.0 million difference on the maturing mortgage loan.
Read the The complete Report
Parkway Properties Inc. has a market cap of $356 million; its shares were traded at around $16.17 with and P/S ratio of 1.4. The dividend yield of Parkway Properties Inc. stocks is 1.9%. Parkway Properties Inc. had an annual average earning growth of 5% over the past 10 years.PKY is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
On May 14, 2008, Parkway, through affiliated entities, entered into a limited partnership agreement forming a $750.0 million discretionary fund, known as Parkway Properties Office Fund II, L.P., (“Texas Fund II”) with the Teacher Retirement System of Texas (“TRST”) for the purpose of acquiring high-quality multi-tenant office properties. TRST is a 70% investor and Parkway is a 30% investor in the fund, which will be capitalized with approximately $375.0 million of equity capital and $375.0 million of non-recourse, fixed-rate first mortgage debt. Parkway s share of the equity contribution for the fund will be $112.5 million and will be funded with operating cash flow, proceeds from asset sales, line of credit advances and/or sales of equity securities. The Texas Fund II targets acquisitions in the core markets of Houston, Austin, San Antonio, Chicago, Atlanta, Phoenix, Charlotte, Memphis, Nashville, Jacksonville, Orlando, Tampa/St. Petersburg, and Ft. Lauderdale, as well as other growth markets to be determined at Parkway s discretion.On April 15, 2010, Parkway sold One Park Ten, a 163,000 square foot office property in Houston, Texas, for a gross sales price of $15.7 million. Parkway received net cash proceeds of $4.8 million, which were used to reduce amounts outstanding under the Company s line of credit. Parkway recognized a gain on the sale of $8.5 million during the second quarter of 2010. In connection with the sale of One Park Ten, the $8.7 million first mortgage was assumed by the buyer and the Company seller-financed a $1.5 million note receivable that bears interest at 7.25% per annum on an interest-only basis through maturity in June 2012. PRS was retained to provide management and leasing services for the property. During the third quarter of 2010, the management agreement for the property was terminated. Therefore, all income for current and prior periods was reclassified to discontinued operations.
As previously disclosed, on July 30, 2010, the Company purchased a first mortgage loan secured by three properties owned by RubiconPark I, LLC (“Rubicon JV”) for $35.0 million. The Rubicon JV is a joint venture between Rubicon US REIT and Parkway. The loan had a $2.0 million rollover reserve which was credited to Parkway at closing, for a net purchase price of $33.0 million. The loan had a principal balance of $51.0 million at the time of purchase by Parkway. The loan was secured by Carmel Crossing, a 326,000 square foot office complex located in Charlotte, North Carolina, Falls Pointe, a 107,000 square foot office property in Atlanta, Georgia, and Lakewood II, a 128,000 square foot office property also in Atlanta, Georgia. As of September 30, 2010, this mortgage loan was accounted for as real estate related to office and parking properties on the Company s consolidated balance sheet. During October 2010, the Company, as holder of the mortgage, foreclosed on the three properties, which served as collateral for the associated loan.
On October 29, 2010, the Company sold the two Atlanta properties previously owned by the Rubicon JV and described above for $8.0 million to Parkway Properties Office Fund II, LP (“Texas Fund II”), the Company s $750.0 million discretionary fund with Teacher Retirement System of Texas. Carmel Crossing, located in Charlotte, North Carolina, is under contract to be sold to Texas Fund II for $25.0 million and is subject only to North Carolina law which requires the creditor to allow additional offers to be accepted on foreclosed properties for a period of 10 days following the foreclosure sale date. The anticipated closing date of Carmel Crossing is November 2010. An additional $7.3 million is expected to be spent for closing costs, building improvements and leasing costs during the first two years of ownership. The Company expects to finalize the purchase price allocation for this investment during the fourth quarter of 2010. The Texas Fund II plans to place a non-recourse first mortgage on Carmel Crossing in the amount of approximately 50% of the value of the property during the first quarter of 2011. The total sale of these three assets is expected to result in Parkway receiving $22.5 million in cash upon closing. Parkway s equity ownership in the three properties after the sale is 30% or $9.9 million.
Mortgage Notes Payable. During the nine months ended September 30, 2010, mortgage notes payable decreased $37.2 million or 4.4% and is due to the net effect of scheduled principal payments on mortgages of $10.7 million, the transfer of one mortgage to the purchaser of One Park Ten of $8.7 million and the retirement of existing mortgage debt of $87.8 million, offset by the placement of mortgage debt of $70.0 million.
On February 8, 2010, the Company obtained a $35.0 million non-recourse, first mortgage loan related to the refinance of a $60.0 million recourse mortgage that was scheduled to mature in May 2010. The mortgage loan bears interest at a fixed rate of 7.25% and is secured by the Company s Capital City Plaza building in Atlanta, Georgia. The mortgage loan matures in March 2017 and includes the option to be prepaid at the end of five years at a cost of 1% of the outstanding loan balance. The Company used available proceeds under its line of credit to pay the $25.0 million difference on the maturing mortgage loan.
Read the The complete Report
