Parkway Properties Inc. (PKY, Financial) filed Quarterly Report for the period ended 2009-06-30.
Parkway Properties Inc. is a self-administered self-managed real estate investment trust specializing in the acquisition ownership managementfinancing and leasing of office properties in the Southeastern United States and Texas. Parkway Properties Inc. has a market cap of $352.6 million; its shares were traded at around $16.31 with a P/E ratio of 4.4 and P/S ratio of 1.3. The dividend yield of Parkway Properties Inc. stocks is 8%. Parkway Properties Inc. had an annual average earning growth of 7% over the past 10 years.
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 Teachers Fund II) with the Teacher Retirement System of Texas (TRS) for the purpose of acquiring high-quality multi-tenant office properties. TRS 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. Parkways share of the equity contribution for the fund will be $112.5 million and will be funded with proceeds from asset sales, line of credit advances and/or sales of equity securities. The Texas Teachers 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 other growth markets to be determined by Parkway.
On February 20, 2009, the Company sold Lynnwood Plaza, an 82,000 square foot office property located in Hampton Roads, Virginia, for a gross sales price of $7.8 million. Parkway received net cash proceeds from the sale of $7.1 million, which were used to reduce amounts outstanding under the Companys line of credit. During the fourth quarter of 2008, the Company recognized an impairment loss of $1.1 million related to this property. Parkway Realty Services LLC, a subsidiary of the Company, was retained to provide management and leasing services for the property under a one-year agreement. Therefore, all revenue and expenses for this property are included as a component of continuing operations.
Mortgage Notes Payable. During the six months ended June 30, 2009, mortgage notes payable decreased $9.9 million or 1.1% and is due to the net effect of scheduled principal payments on mortgages of $6.6 million, the retirement of existing mortgage debt of $21.8 million, and the placement of mortgage debt of $18.5 million.
On April 28, 2009, the Company sold 6.25 million shares of common stock to UBS Investment Bank at a gross offering price of $13.71 per share and a net price of $13.56 per share. The Company used the net proceeds of approximately $84.5 million to reduce outstanding borrowings under the Companys line of credit and for general corporate purposes.
Net loss available to common stockholders for the three months ended June 30, 2009 was $280,000 ($0.01 per basic common share) as compared to net loss available to common stockholders of $3.1 million ($0.21 per basic common share) for the three months ended June 30, 2008. Net loss available to common stockholders for the six months ended June 30, 2009 was $2.3 million ($0.13 per basic common share) as compared to net loss available to common stockholders of $6.9 million ($0.46 per basic common share) for the six months ended June 30, 2008. The primary reason for the decrease in net loss is due to the net effect of increased net operating income from office properties, increased gains on sale of real estate and involuntary conversion and reduction in interest expense, offset by increased depreciation expense during the three months and six months ended June 30, 2009.
Read the The complete ReportPKY is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
Parkway Properties Inc. is a self-administered self-managed real estate investment trust specializing in the acquisition ownership managementfinancing and leasing of office properties in the Southeastern United States and Texas. Parkway Properties Inc. has a market cap of $352.6 million; its shares were traded at around $16.31 with a P/E ratio of 4.4 and P/S ratio of 1.3. The dividend yield of Parkway Properties Inc. stocks is 8%. Parkway Properties Inc. had an annual average earning growth of 7% over the past 10 years.
Highlight of Business Operations:
Discretionary Funds. On July 6, 2005, Parkway, through affiliated entities, entered into a limited partnership agreement forming a $500.0 million discretionary fund with Ohio PERS (Ohio PERS Fund I) for the purpose of acquiring high-quality multi-tenant office properties. Ohio PERS is a 75% investor and Parkway is a 25% investor in the fund, which is capitalized with approximately $200.0 million of equity capital and $300.0 million of non-recourse, fixed-rate first mortgage debt. At February 15, 2008, the Ohio PERS Fund I was fully invested.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 Teachers Fund II) with the Teacher Retirement System of Texas (TRS) for the purpose of acquiring high-quality multi-tenant office properties. TRS 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. Parkways share of the equity contribution for the fund will be $112.5 million and will be funded with proceeds from asset sales, line of credit advances and/or sales of equity securities. The Texas Teachers 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 other growth markets to be determined by Parkway.
On February 20, 2009, the Company sold Lynnwood Plaza, an 82,000 square foot office property located in Hampton Roads, Virginia, for a gross sales price of $7.8 million. Parkway received net cash proceeds from the sale of $7.1 million, which were used to reduce amounts outstanding under the Companys line of credit. During the fourth quarter of 2008, the Company recognized an impairment loss of $1.1 million related to this property. Parkway Realty Services LLC, a subsidiary of the Company, was retained to provide management and leasing services for the property under a one-year agreement. Therefore, all revenue and expenses for this property are included as a component of continuing operations.
Mortgage Notes Payable. During the six months ended June 30, 2009, mortgage notes payable decreased $9.9 million or 1.1% and is due to the net effect of scheduled principal payments on mortgages of $6.6 million, the retirement of existing mortgage debt of $21.8 million, and the placement of mortgage debt of $18.5 million.
On April 28, 2009, the Company sold 6.25 million shares of common stock to UBS Investment Bank at a gross offering price of $13.71 per share and a net price of $13.56 per share. The Company used the net proceeds of approximately $84.5 million to reduce outstanding borrowings under the Companys line of credit and for general corporate purposes.
Net loss available to common stockholders for the three months ended June 30, 2009 was $280,000 ($0.01 per basic common share) as compared to net loss available to common stockholders of $3.1 million ($0.21 per basic common share) for the three months ended June 30, 2008. Net loss available to common stockholders for the six months ended June 30, 2009 was $2.3 million ($0.13 per basic common share) as compared to net loss available to common stockholders of $6.9 million ($0.46 per basic common share) for the six months ended June 30, 2008. The primary reason for the decrease in net loss is due to the net effect of increased net operating income from office properties, increased gains on sale of real estate and involuntary conversion and reduction in interest expense, offset by increased depreciation expense during the three months and six months ended June 30, 2009.
Read the The complete ReportPKY is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.
