Thomas Properties Group Inc. (TPGI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Thomas Properties Group Inc. has a market cap of $135.3 million; its shares were traded at around $4.38 with and P/S ratio of 1.2. TPGI is in the portfolios of Third Avenue Management, Arnold Schneider of Schneider Capital Management, Jim Simons of Renaissance Technologies LLC.
Property operating and maintenance expense. Property operating and maintenance expenses increased by $0.2 million, or 3.3% to $6.3 million compared to $6.1 million for three months ended March 31, 2009. The increase was primarily attributable to an increase in contract cleaning expenses.
Interest expense. Interest expense decreased by $2.0 million, or 29.4%, to $4.8 million for the three month period ended March 31, 2010 from $6.8 million for the three month period ended March 31, 2009. The decrease in interest expense is primarily attributable to the payoff of mezzanine debt at Two Commerce Square which resulted in a decrease of $2.2 million compared to the prior period. This was partially offset by increased financing costs on our Murano and Four Points loans resulting from amortization of loan extension fees.
Aggregate revenues for the three months ended March 31, 2010 decreased approximately $2.4 million or 2.9% to $79.2 million compared to $81.6 million for the three months ended March 31, 2009. The decrease is primarily due to lower occupancy at our Austin Portfolio Joint Venture downtown properties. Aggregate operating and other expenses for unconsolidated real estate entities for the three months ended March 31, 2010 compared to the three months end March 31, 2009 remained consistent. Interest expense decreased approximately $2.2 million or 8.1% to $25.3 million for the three months ended March 31, 2010 compared to $27.5 million for the three months ended March 31, 2009. The decrease was primarily due to the write-off of deferred financing costs associated with the Austin Portfolio Joint Venture debt restructure in March 2009. Depreciation and amortization expense decreased approximately $1.9 million or 6.2% to $29.1 million for the three months ended March 31, 2010 compared to $31.0 million for the three months ended March 31, 2009. The decrease was primarily due to the early write-offs of lease-related assets in 2009 due to tenant defaults coupled with reduced capital spending in 2010. A gain on early extinguishment of debt recorded for the three months ended March 31, 2009 was related to our Austin Portfolio Joint Venture debt restructure and recapitalization. There was no corresponding gain for the three months ended March 31, 2010.
Benefit/provision for income taxes. Provision for income taxes increased by $0.4 million to a provision of $0.2 million for the three months ended March 31, 2010 compared to a benefit of $0.2 million for the three months ended March 31, 2009. The increase was primarily due to the Companys recording of a full valuation allowance of $9.6 million on a portion of its net deferred tax assets as of March 31, 2010. No valuation allowance was recorded by the Company as of March 31, 2009 on its net deferred tax assets.
As of March 31, 2010, we have unrestricted cash and cash equivalents of $32.2 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 and undeveloped land 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 $36.6 million in nonrecourse senior and junior mezzanine loans on Two Commerce Square, which were scheduled to mature in January 2010. Subsequent to March 31, 2010, we sold 4,236,275 shares of common stock as of May 12, 2010 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 to the Company of $15.3 million to be used for general corporate purposes.
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Thomas Properties Group Inc. has a market cap of $135.3 million; its shares were traded at around $4.38 with and P/S ratio of 1.2. 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:
Investment advisory, management, leasing and development services revenues unconsolidated real estate entities. This caption represents revenues earned from services provided to entities for which we use the equity method to account for our ownership interest since we have significant influence, but not control, over the entities. Revenues from these services from unconsolidated real estate entities decreased by $0.4 million, or 10.3%, from $3.9 million for the three months ended March 31, 2009 to $3.5 million for the three months ended March 31, 2010 primarily due to an overall decrease in leasing and construction management activity of $0.6 million partially offset by fees of $0.2 million for providing management services related to obtaining LEED (Leadership in Energy and Environmental Design) certification for certain properties.Property operating and maintenance expense. Property operating and maintenance expenses increased by $0.2 million, or 3.3% to $6.3 million compared to $6.1 million for three months ended March 31, 2009. The increase was primarily attributable to an increase in contract cleaning expenses.
Interest expense. Interest expense decreased by $2.0 million, or 29.4%, to $4.8 million for the three month period ended March 31, 2010 from $6.8 million for the three month period ended March 31, 2009. The decrease in interest expense is primarily attributable to the payoff of mezzanine debt at Two Commerce Square which resulted in a decrease of $2.2 million compared to the prior period. This was partially offset by increased financing costs on our Murano and Four Points loans resulting from amortization of loan extension fees.
Aggregate revenues for the three months ended March 31, 2010 decreased approximately $2.4 million or 2.9% to $79.2 million compared to $81.6 million for the three months ended March 31, 2009. The decrease is primarily due to lower occupancy at our Austin Portfolio Joint Venture downtown properties. Aggregate operating and other expenses for unconsolidated real estate entities for the three months ended March 31, 2010 compared to the three months end March 31, 2009 remained consistent. Interest expense decreased approximately $2.2 million or 8.1% to $25.3 million for the three months ended March 31, 2010 compared to $27.5 million for the three months ended March 31, 2009. The decrease was primarily due to the write-off of deferred financing costs associated with the Austin Portfolio Joint Venture debt restructure in March 2009. Depreciation and amortization expense decreased approximately $1.9 million or 6.2% to $29.1 million for the three months ended March 31, 2010 compared to $31.0 million for the three months ended March 31, 2009. The decrease was primarily due to the early write-offs of lease-related assets in 2009 due to tenant defaults coupled with reduced capital spending in 2010. A gain on early extinguishment of debt recorded for the three months ended March 31, 2009 was related to our Austin Portfolio Joint Venture debt restructure and recapitalization. There was no corresponding gain for the three months ended March 31, 2010.
Benefit/provision for income taxes. Provision for income taxes increased by $0.4 million to a provision of $0.2 million for the three months ended March 31, 2010 compared to a benefit of $0.2 million for the three months ended March 31, 2009. The increase was primarily due to the Companys recording of a full valuation allowance of $9.6 million on a portion of its net deferred tax assets as of March 31, 2010. No valuation allowance was recorded by the Company as of March 31, 2009 on its net deferred tax assets.
As of March 31, 2010, we have unrestricted cash and cash equivalents of $32.2 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 and undeveloped land 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 $36.6 million in nonrecourse senior and junior mezzanine loans on Two Commerce Square, which were scheduled to mature in January 2010. Subsequent to March 31, 2010, we sold 4,236,275 shares of common stock as of May 12, 2010 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 to the Company of $15.3 million to be used for general corporate purposes.
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