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Thomas Properties Group Inc. Reports Operating Results (10-Q)

November 12, 2010 | About:
10qk

10qk

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Thomas Properties Group Inc. (TPGI) filed Quarterly Report for the period ended 2010-09-30.

Thomas Properties Group Inc. has a market cap of $151.2 million; its shares were traded at around $4.27 with and P/S ratio of 1.3. TPGI is in the portfolios of Third Avenue Management, Arnold Schneider of Schneider Capital Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Real estate taxes. Real estate taxes decreased by $0.2 million, or 10.5%, to $1.7 million for the three months ended September 30, 2010, compared to $1.9 million for the three months ended September 30, 2009, primarily due to a tax adjustment of $0.3 million occurring in 2009 as a result of an increase in property assessed value in connection with the completion of construction of two office buildings at our Four Points development site.

Interest expense. Interest expense decreased by $2.0 million, or 29.4%, to $4.8 million for the three month period ended September 30, 2010 from $6.8 million for the three month period ended September 30, 2009. The decrease in interest expense is primarily attributable to the payoff of mezzanine debt at Two Commerce Square in December 2009, which resulted in a decrease of $1.7 million compared to the prior period. Also, interest incurred on our Murano loan decreased by $0.5 million as compared to the prior period due to a reduced principal balance, which is amortized with proceeds from each unit sale.

General and administrative. General and administrative expense decreased by $0.5 million, or 12.8%, to $3.4 million for the three months ended September 30, 2010 compared to $3.9 million for the three months ended September 30, 2009. This was primarily due to a reduction in compensation expense of $0.7 million as a result of cost saving measures, partially offset by an increase in professional fees.

Investment advisory, management, leasing and development services revenues. This caption represents revenues earned from services provided to unaffiliated entities in which we have no ownership interest. Revenues from these services decreased by $1.6 million, or 22.2%, from $7.2 million for the nine months ended September 30, 2009, to $5.6 million for the nine months ended September 30, 2010 primarily due to less leasing activity resulting in lower commissions of $1.5 million relative to the prior period, partially offset by an increase in development fees related to our Wilshire Grand project with Korean Airlines, which we began earning in April of 2009.

Interest expense. Interest expense decreased by $6.0 million, or 29.4%, to $14.4 million for the nine month period ended September 30, 2010 from $20.4 million for the nine month period ended September 30, 2009. The decrease in interest expense is primarily attributable to the payoff of mezzanine debt at Two Commerce Square in December 2009, which resulted in a decrease of $5.1 million compared to the prior period. Also, interest incurred on our Murano loan decreased by $1.6 million as compared to the prior period due to a reduced principal balance, which is amortized with proceeds from each unit sale.

As of September 30, 2010, we have unrestricted cash and cash equivalents of $43.2 million. We believe that we will have sufficient capital to satisfy our liquidity needs over the next 12 months through working capital. We expect to meet our long-term liquidity requirements, including debt service, property acquisitions and additional future development and redevelopment activity, through cash flow from operations, additional secured and unsecured long-term borrowings, dispositions of non-strategic assets, and the potential issuance of additional debt, or common or preferred equity securities, including convertible securities. Additionally, as noted elsewhere herein, on December 23, 2009, the Company completed the sale of 5.1 million shares through a registered direct offering of common stock at $2.55 per share. The net proceeds after deducting offering expenses were $13.1 million. We used the net proceeds to fund a portion of the discounted payoff of $25.2 million for the nonrecourse senior and junior mezzanine loans on Two Commerce Square, which had a balance of $36.6 million and were scheduled to mature in January 2010. During the second quarter of 2010, we sold 4.2 million shares of common stock at prices ranging from $3.67 to $5.03 per share in our at-the-market equity offering program. These sales resulted in net proceeds of $15.2 million, which are being used for general corporate purposes. Subsequent to the third quarter, we sold 48,500 shares of common stock at prices ranging from $3.77 to $3.80 per share in our at-the-market equity offering program. These sales resulted in net proceeds to the Company of approximately $179,000, to be used for general corporate purposes.

Read the The complete Report

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