Cogdell Spencer Inc. (CSA, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 $109.3 million; its shares were traded at around $6.17 with a P/E ratio of 5.5 and P/S ratio of 0.3. The dividend yield of Cogdell Spencer Inc. stocks is 14.6%.
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.
FFOM, excluding the after-tax impairment charge of $101.7 million, increased $2.3 million, or 39.1%, for the first quarter of 2009 as compared to the first quarter of 2008. The following is a summary of FFOM for the three months ended March 31, 2009 and 2008 (in thousands):
Read the The complete ReportCSA is in the portfolios of Chris Davis of Davis Selected Advisers.
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 $109.3 million; its shares were traded at around $6.17 with a P/E ratio of 5.5 and P/S ratio of 0.3. The dividend yield of Cogdell Spencer Inc. stocks is 14.6%.
Highlight of Business Operations:
As of March 31, 2009, the Company performed an interim impairment review of goodwill and intangible assets. The interim review was performed due to a decline in the Company s stock price, a decline in the cash flow multiples for comparable public engineering and construction companies, and changes in the cash flow projections for the Design-Build and Development business segment resulting from delays and cancellations of customer projects. Based on this review, during the first quarter of 2009, the Company recorded a pre-tax, non-cash impairment charge of ($120.9 million) and the Company recognized a non-cash income tax benefit of $19.2 million, resulting in an after-tax impairment charge of ($101.7 million).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.
FFOM, excluding the after-tax impairment charge of $101.7 million, increased $2.3 million, or 39.1%, for the first quarter of 2009 as compared to the first quarter of 2008. The following is a summary of FFOM for the three months ended March 31, 2009 and 2008 (in thousands):
Read the The complete ReportCSA is in the portfolios of Chris Davis of Davis Selected Advisers.
