CUZ 2012.6.30
Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
þ
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2012
OR
o
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-11312
COUSINS PROPERTIES INCORPORATED
(Exact name of registrant as specified in its charter)
GEORGIA
(State or other jurisdiction of
incorporation or organization)
58-0869052
(I.R.S. Employer
Identification No.)
191 Peachtree Street, Suite 500, Atlanta, Georgia
(Address of principal executive offices)
30303-1740
(Zip Code)
(404) 407-1000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þ
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
 
 
(Do not check if a smaller reporting company)
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
 
Outstanding at July 27, 2012
Common Stock, $1 par value per share
 
104,200,091 shares

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Page No.
 
 

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FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. These forward-looking statements include information about possible or assumed future results of the Company's business and the Company's financial condition, liquidity, results of operations, plans and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as:
•the Company's business and financial strategy;
•the Company's ability to obtain future financing arrangements;
•future investments and future dispositions of assets;
•the Company's understanding of its competition and its ability to compete effectively;
•projected operating results;
•market and industry trends;
•estimates relating to future distributions;
•projected capital expenditures; and
•interest rates.
The forward-looking statements are based upon management's beliefs, assumptions and expectations of the Company's future performance, taking into account information currently available. These beliefs, assumptions and expectations may change as a result of many possible events or factors, not all of which are known. If a change occurs, the Company's business, financial condition, liquidity and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following:
•
availability and terms of capital and financing, both to fund operations and to refinance indebtedness as it matures;
•
failure of purchase, sale or other contracts to ultimately close;
•
the availability of buyers and adequate pricing with respect to the disposition of assets, including certain residential and land holdings relating to the Company's change in strategy;
•
risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial and residential markets in particular;
•
changes in the Company's business and financial strategy and/or continued adverse market and economic conditions requiring the recognition of impairment losses;
•
leasing risks, including the inability to obtain new tenants or renew expiring tenants on favorable terms, or at all, and the ability to lease newly developed, recently acquired or current vacant space;
•
financial condition of existing tenants;
•
rising interest rates and insurance rates;
•
the availability of sufficient investment opportunities;
•
competition from other developers or investors;
•
the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk);
•
loss of key personnel;
•
potential liability for uninsured losses, condemnation or environmental issues;
•
potential liability for a failure to meet regulatory requirements;
•
the financial condition and liquidity of, or disputes with, joint venture partners;
•
any failure to comply with debt covenants under credit agreements; and
•
any failure to continue to qualify for taxation as a real estate investment trust.
The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although the Company believes its plans, intentions and expectations reflected in any forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise, except as required under U.S. federal securities laws.


2
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PART I — FINANCIAL INFORMATION
Item 1.    Financial Statements.
COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 
June 30, 2012
 
December 31, 2011
 
(unaudited)
 
 
ASSETS
 
 
 
PROPERTIES:
 
 
 
Operating properties, net of accumulated depreciation of $281,739 and $289,473 in 2012 and 2011, respectively
$
796,830

 
$
884,652

Projects under development
19,078

 
11,325

Land held
52,163

 
54,132

Residential lots
12,288

 
13,195

Other
533

 
637

Total properties
880,892

 
963,941

 
 
 
 
CASH AND CASH EQUIVALENTS
3,009

 
4,858

RESTRICTED CASH
4,917

 
4,929

NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $2,213 and $5,100 in 2012 and 2011, respectively
11,206

 
11,359

DEFERRED RENTS RECEIVABLE
39,630

 
37,141

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
140,303

 
160,587

OTHER ASSETS
55,358

 
52,720

 
 
 
 
TOTAL ASSETS
$
1,135,315

 
$
1,235,535

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
NOTES PAYABLE
$
461,021

 
$
539,442

ACCOUNTS PAYABLE AND OTHER LIABILITIES
38,193

 
38,592

DEFERRED INCOME
13,204

 
17,343

TOTAL LIABILITIES
512,418

 
595,377

 
 
 
 
COMMITMENTS AND CONTINGENT LIABILITIES

 

 
 
 
 
REDEEMABLE NONCONTROLLING INTERESTS
—

 
2,763

 
 
 
 
STOCKHOLDERS’ INVESTMENT:
 
 
 
Preferred stock, 20,000,000 shares authorized, $1 par value:
 
 
 
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2012 and 2011
74,827

 
74,827

7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2012 and 2011
94,775

 
94,775

Common stock, $1 par value, 250,000,000 shares authorized, 107,785,195 and 107,272,078 shares issued in 2012 and 2011, respectively
107,785

 
107,272

Additional paid-in capital
688,903

 
687,835

Treasury stock at cost, 3,570,082 shares in 2012 and 2011
(86,840
)
 
(86,840
)
Distributions in excess of cumulative net income
(290,261
)
 
(274,177
)
TOTAL STOCKHOLDERS’ INVESTMENT
589,189

 
603,692

 
 
 
 
Nonredeemable noncontrolling interests
33,708

 
33,703

TOTAL EQUITY
622,897

 
637,395

 
 
 
 
TOTAL LIABILITIES AND EQUITY
$
1,135,315

 
$
1,235,535

 
 
 
 
See accompanying notes.
 
 
 

3
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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)


 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2011
 
2012
 
2011
REVENUES:
 
 
 
 
 
 
 
Rental property revenues
$
35,610

 
$
31,267

 
$
70,800

 
$
61,705

Fee income
2,786

 
3,435

 
5,642

 
6,820

Third party management and leasing revenues
6,029

 
4,605

 
10,740

 
8,693

Residential lot sales
535

 
80

 
1,484

 
245

Other
253

 
562

 
1,718

 
5,707

 
45,213

 
39,949

 
90,384

 
83,170

COSTS AND EXPENSES:
 
 
 
 
 
 
 
Rental property operating expenses
14,661

 
13,072

 
28,276

 
24,971

Third party management and leasing expenses
4,607

 
4,080

 
8,907

 
8,173

Residential lot and outparcel cost of sales
416

 
76

 
980

 
145

General and administrative expenses
5,645

 
6,133

 
12,268

 
13,533

Interest expense
5,875

 
7,358

 
12,143

 
14,902

Reimbursed expenses
1,357

 
1,371

 
2,733

 
2,883

Depreciation and amortization
12,750

 
10,896

 
25,861

 
21,877

Impairment losses
—

 
—

 
12,233

 
3,508

Separation expenses
79

 
77

 
292

 
178

Other
579

 
655

 
1,273

 
4,013

 
45,969

 
43,718

 
104,966

 
94,183

LOSS ON EXTINGUISHMENT OF DEBT
—

 
—

 
(94
)
 
—

LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES
(756
)
 
(3,769
)
 
(14,676
)
 
(11,013
)
(PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS
(33
)
 
(27
)
 
(60
)
 
37

INCOME FROM UNCONSOLIDATED JOINT VENTURES
9,762

 
2,312

 
11,948

 
4,808

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES
8,973

 
(1,484
)
 
(2,788
)
 
(6,168
)
GAIN ON SALE OF INVESTMENT PROPERTIES
29

 
59

 
86

 
118

INCOME (LOSS) FROM CONTINUING OPERATIONS
9,002

 
(1,425
)
 
(2,702
)
 
(6,050
)
 
 
 
 
 
 
 
 
INCOME FROM DISCONTINUED OPERATIONS:
 
 
 
 
 
 
 
Income from discontinued operations
554

 
627

 
818

 
1,587

Gain (loss) on sale of discontinued investment properties
674

 
—

 
760

 
(384
)
 
1,228

 
627

 
1,578

 
1,203

NET INCOME (LOSS)
10,230

 
(798
)
 
(1,124
)
 
(4,847
)
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(602
)
 
(681
)
 
867

 
(1,262
)
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
9,628

 
(1,479
)
 
(257
)
 
(6,109
)
DIVIDENDS TO PREFERRED STOCKHOLDERS
(3,227
)
 
(3,227
)
 
(6,454
)
 
(6,454
)
 
 
 
 
 
 
 
 
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS
$
6,401

 
$
(4,706
)
 
$
(6,711
)
 
$
(12,563
)
 
 
 
 
 
 
 
 
PER COMMON SHARE INFORMATION — BASIC AND DILUTED:
 
 
 
 
 
 
 
Income (loss) from continuing operations attributable to controlling interest
$
0.05

 
$
(0.05
)
 
$
(0.08
)
 
$
(0.13
)
Income from discontinued operations
0.01

 
0.01

 
0.02

 
0.01

Net income (loss) available to common stockholders
$
0.06

 
$
(0.05
)
 
$
(0.06
)
 
$
(0.12
)
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES — BASIC AND DILUTED
104,165

 
103,659

 
104,082

 
103,588

DIVIDENDS DECLARED PER COMMON SHARE
$
0.045

 
$
0.045

 
$
0.09

 
$
0.09

See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
Six Months Ended June 30, 2012 and 2011
(unaudited, in thousands)
 
 
Preferred
Stock
 
Common
Stock
 
Additional
Paid-In
Capital
 
Treasury
Stock
 
Distributions in
Excess of
Net Income
 
Stockholders’
Investment
 
Nonredeemable
Noncontrolling
Interests
 
Total
Equity
Balance December 31, 2011
 
$
169,602

 
$
107,272

 
$
687,835

 
$
(86,840
)
 
$
(274,177
)
 
$
603,692

 
$
33,703

 
$
637,395

Net income (loss)
 
—

 
—

 
—

 
—

 
(257
)
 
(257
)
 
1,157

 
900

Common stock issued pursuant to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Director stock grants
 
—

 
72

 
468

 
—

 
—

 
540

 
—

 
540

Restricted stock grants, net of amounts withheld for income taxes
 
—

 
448

 
(617
)
 
—

 
—

 
(169
)
 
—

 
(169
)
Amortization of stock options and restricted stock, net of forfeitures
 
—

 
(7
)
 
1,217

 
—

 
—

 
1,210

 
—

 
1,210

Distributions to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
—

 
(1,152
)
 
(1,152
)
Cash preferred dividends paid
 
—

 
—

 
—

 
—

 
(6,454
)
 
(6,454
)
 
—

 
(6,454
)
Cash common dividends paid
 
—

 
—

 
—

 
—

 
(9,373
)
 
(9,373
)
 
—

 
(9,373
)
Balance June 30, 2012
 
$
169,602

 
$
107,785

 
$
688,903

 
$
(86,840
)
 
$
(290,261
)
 
$
589,189

 
$
33,708

 
$
622,897

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance December 31, 2010
 
$
169,602

 
$
106,962

 
$
684,551

 
$
(86,840
)
 
$
(114,196
)
 
$
760,079

 
$
32,772

 
$
792,851

Net income (loss)
 
—

 
—

 
—

 
—

 
(6,109
)
 
(6,109
)
 
1,233

 
(4,876
)
Common stock issued pursuant to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Director stock grants
 
—

 
82

 
625

 
—

 
—

 
707

 
—

 
707

Restricted stock grants, net of amounts withheld for income taxes
 
—

 
244

 
(263
)
 
—

 
—

 
(19
)
 
—

 
(19
)
Amortization of stock options and restricted stock, net of forfeitures
 
—

 
(4
)
 
1,190

 
—

 
—

 
1,186

 
—

 
1,186

Change in fair value of redeemable noncontrolling interests
 
—

 
—

 
(526
)
 
—

 
—

 
(526
)
 
—

 
(526
)
Distributions to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
—

 
(1,126
)
 
(1,126
)
Cash preferred dividends paid
 
—

 
—

 
—

 
—

 
(6,454
)
 
(6,454
)
 
—

 
(6,454
)
Cash common dividends paid
 
—

 
—

 
—

 
—

 
(9,316
)
 
(9,316
)
 
—

 
(9,316
)
Balance June 30, 2011
 
$
169,602

 
$
107,284

 
$
685,577

 
$
(86,840
)
 
$
(136,075
)
 
$
739,548

 
$
32,879

 
$
772,427

See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)


 
Six Months Ended June 30,
 
2012
 
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net loss
$
(1,124
)
 
$
(4,847
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
(Gain) loss on sale of investment properties, including discontinued operations
(846
)
 
266

Loss on extinguishment of debt
94

 
—

Impairment losses
12,233

 
3,508

Depreciation and amortization, including discontinued operations
27,006

 
26,914

Amortization of deferred financing costs
512

 
1,079

Stock-based compensation
1,210

 
1,186

Effect of recognizing rental revenues on a straight-line or market basis
(2,108
)
 
(3,705
)
Income from unconsolidated joint ventures
(11,948
)
 
(4,808
)
Operating distributions from unconsolidated joint ventures
9,857

 
4,692

Residential lot and multi-family cost of sales, net of closing costs paid
1,057

 
2,390

Residential lot development expenditures
(46
)
 
(563
)
Changes in other operating assets and liabilities:
 
 
 
Change in other receivables and other assets
(1,759
)
 
1,114

Change in accounts payable and other liabilities
1,092

 
(140
)
Net cash provided by operating activities
35,230

 
27,086

 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Proceeds from investment property sales
63,236

 
21,543

Property acquisition, development and tenant asset expenditures
(18,558
)
 
(14,915
)
Investment in unconsolidated joint ventures
(6,235
)
 
(9,841
)
Distributions from unconsolidated joint ventures
25,188

 
4,696

Collection of notes receivable
821

 
98

Change in other assets
(1,866
)
 
(2,386
)
Change in restricted cash
12

 
882

Net cash provided by investing activities
62,598

 
77

 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Proceeds from credit facility
273,100

 
52,900

Repayments of credit facility
(430,850
)
 
(32,900
)
Proceeds from notes payable and construction facilities
105,949

 
—

Repayment of notes payable
(26,620
)
 
(28,101
)
Payment of loan issuance costs
(3,419
)
 
—

Common stock issuance costs
—

 
(16
)
Common dividends paid
(9,373
)
 
(9,316
)
Preferred dividends paid
(6,454
)
 
(6,454
)
Distributions to noncontrolling interests
(2,010
)
 
(6,526
)
Net cash used in financing activities
(99,677
)
 
(30,413
)
 
 
 
 
NET DECREASE IN CASH AND CASH EQUIVALENTS
(1,849
)
 
(3,250
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
4,858

 
7,599

CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
3,009

 
$
4,349

 
 
 
 
INTEREST PAID, NET OF AMOUNTS CAPITALIZED
$
11,853

 
$
14,902

INCOME TAXES REFUNDED
$
—

 
$
53

 
 
 
 
SIGNFICANT NON-CASH TRANSACTIONS:
 
 
 
  Transfer from other assets to investment in unconsolidated joint ventures
$
—

 
$
6,050

 
 
 
 
See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2012
(Unaudited)
1. BASIS OF PRESENTATION
The consolidated financial statements included herein include the accounts of Cousins Properties Incorporated (“Cousins”) and its consolidated subsidiaries, including Cousins Real Estate Corporation and its subsidiaries (“CREC”). All of the entities included in the consolidated financial statements are hereinafter referred to collectively as the “Company.”
The Company develops, acquires, manages and owns primarily office and retail real estate properties. Cousins has elected to be taxed as a real estate investment trust (“REIT”) and intends to, among other things, distribute 100% of its federal taxable income to stockholders, thereby eliminating any liability for federal income taxes under current law. Therefore, the results included herein do not include a federal income tax provision for Cousins. CREC operates as a taxable REIT subsidiary and is taxed separately from Cousins as a C-Corporation. Accordingly, if applicable, the Statements of Operations include a provision for, or benefit from, CREC's income taxes.
The condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for the fair presentation of the Company's financial position as of June 30, 2012 and the results of operations for the three and six months ended June 30, 2012 and 2011. The results of operations for the three and six months ended June 30, 2012 are not necessarily indicative of results expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. The accounting policies employed are substantially the same as those shown in Note 2 to the consolidated financial statements included in such Form 10-K.
In the second quarter of 2012, the Company reclassified deferred rents receivable from notes and accounts receivable to a separate line on the Consolidated Balance Sheets.  In addition, deferred gain, which was previously presented as a separate line on the Consolidated Balance Sheets, was reclassified to deferred income.  Also, accounts payable and accrued liabilities were revised to include security and construction deposits, which were previously presented in deposits and deferred income.   Prior periods have been revised to conform to this new presentation. 
2. NOTES PAYABLE, INTEREST EXPENSE AND COMMITMENTS AND CONTINGENCIES
The following table summarizes the terms and amounts of the Company’s notes payable at June 30, 2012 and December 31, 2011 ($ in thousands):
Description
 
Interest Rate
 
Term/Amortization Period (Years)
 
Maturity
 
June 30, 2012
 
December 31, 2011
Terminus 100 mortgage note
 
5.25
%
 
12/30
 
1/1/2023
 
$
137,172

 
$
138,194

The American Cancer Society Center mortgage note
 
6.45
%
 
10/30
 
9/1/2017
 
134,958

 
135,650

191 Peachtree Tower mortgage note (interest only until May 1, 2016) (see discussion below)
 
3.35
%
 
6.5/30
 
10/1/2018
 
100,000

 
—

Credit Facility, unsecured (see discussion below)
 
1.85
%
 
4/N/A
 
2/28/2016
 
40,500

 
198,250

Meridian Mark Plaza mortgage note
 
6.00
%
 
10/30
 
8/1/2020
 
26,377

 
26,554

100/200 North Point Center East mortgage note (see discussion below)
 
5.39
%
 
5/30
 
6/1/2012
 
—

 
24,478

The Points at Waterview mortgage note
 
5.66
%
 
10/25
 
1/1/2016
 
15,896

 
16,135

Mahan Village LLC construction facility
 
1.90
%
(1)
3/N/A
 
9/12/2014
 
5,950

 
1

Callaway Gardens
 
4.13
%
 
N/A
 
11/18/2013
 
168

 
180

 
 
 
 
 
 
 
 
$
461,021

 
$
539,442

(1) The Company may select from two interest rate options, as defined in the loan agreement, which are based on floating-rate indices plus a spread. The rate at June 30, 2012 was one month LIBOR plus 1.65%.

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Credit Facility
On February 28, 2012, the Company amended its $350 million senior unsecured line of credit by entering into the Second Amended and Restated Credit Agreement (the “New Facility”), which replaced the Amended and Restated Credit Agreement dated August 29, 2007 (the “Old Facility"). The New Facility amends the Old Facility by, among other things, extending the maturity date from August 29, 2012 to February 28, 2016, with an additional one-year extension option upon certain conditions and with the payment of a fee. It also adds an accordion feature permitting the amount available to increase by up to $150 million, under certain conditions and in specified increments, for a total available of $500 million.
The New Facility contains financial covenants that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 2.00; a fixed charges coverage ratio of at least 1.40, increasing to 1.50 during any extension period; and maximum leverage of no more than 60%.
The New Facility also reduces the Company's interest rate spreads on borrowings as compared to the Old Facility. The Company may borrow funds at an interest rate, at its option, calculated as either (1) the current Eurodollar rate plus the applicable spread as detailed below or (2) the greater of Bank of America's prime rate, the Federal Funds Rate plus 0.50% or the one-month Eurodollar Rate plus 1.0% (the “Base Rate”), plus the applicable spread as detailed below. The Company also pays an annual facility fee on the total commitment under the New Facility. The pricing spreads and the Facility Fee under the New Facility are as follows:
Leverage Ratio
 
Applicable % for Eurodollar Rate
 
Applicable % for Base Rate
 
Annual Facility Fee %
 
 
 
 
 
 
 
≤ 40%
 
1.50%
 
0.50%
 
0.20%
>40% but ≤ 50%
 
1.60%
 
0.60%
 
0.25%
>50% but ≤ 55%
 
1.90%
 
0.90%
 
0.35%
>55% but ≤ 60%
 
2.10%
 
1.10%
 
0.40%
The Company selected the Eurodollar rate for interest calculation purposes in June 2012, and the applicable spread at June 30, 2012 was 1.6%.
Other Debt Activity
On March 28, 2012, the Company entered into a $100 million mortgage note payable secured by 191 Peachtree Tower, a 1.2 million square foot office building in Atlanta, Georgia. The interest rate is 3.35% and interest-only payments are due monthly through May 1, 2016, followed by monthly principal and interest payments through October 1, 2018, the maturity date.
In April 2012, the Company prepaid the 100/200 North Point Center East mortgage note in full, without penalty.
Fair Value
At June 30, 2012 and December 31, 2011, the estimated fair values of the Company's notes payable were approximately $483.7 million and $568.5 million, respectively, calculated by discounting future cash flows using estimated rates at which similar loans could have been obtained at those respective dates. This fair value calculation is considered to be a Level 2 calculation under the guidelines as set forth in ASC 820, “Fair Value Measurements and Disclosures,” as the Company utilizes estimates of market rates for similar type loans from third party brokers.
Other Information
For the three and six months ended June 30, 2012 and 2011, interest expense was as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Total interest incurred
$
6,364

 
$
7,358

 
$
13,058

 
$
14,902

Interest capitalized
(489
)
 
—

 
(915
)
 
—

Total interest expense
$
5,875

 
$
7,358

 
$
12,143

 
$
14,902

The real estate and other assets of The American Cancer Society Center (the “ACS Center”) are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.
At June 30, 2012, the Company had outstanding letters of credit and performance bonds totaling $2.6 million. As a lessor,

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the Company has $13.3 million in future obligations under leases to fund tenant improvements as of June 30, 2012. As a lessee, the Company has future obligations under ground and office leases of approximately $16.2 million at June 30, 2012.
Litigation
The Company is subject to various legal proceedings, claims and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business or financial condition of the Company.
3. EARNINGS PER SHARE
Net income (loss) per share-basic is calculated as net income (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period, including nonvested restricted stock which has nonforfeitable dividend rights. Net income (loss) per share-diluted is calculated as net income (loss) available to common stockholders divided by the diluted weighted average number of common shares outstanding during the period. Diluted weighted average number of common shares uses the same weighted average share number as in the basic calculation and adds the potential dilution, if any, that would occur if stock options (or any other contracts to issue common stock) were exercised and resulted in additional common shares outstanding, calculated using the treasury stock method. The numerator is reduced for the effect of preferred dividends in both the basic and diluted net income (loss) per share calculations. Weighted average shares-basic and diluted for the three and six months ending June 30, 2012 and 2011 are as follows (in thousands):
 
 
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Weighted average shares — basic
104,165

 
103,659

 
104,082

 
103,588

Dilutive potential common shares — stock options
—

 
—

 
—

 
—

Weighted average shares — diluted
104,165

 
103,659

 
104,082

 
103,588

Stock options are dilutive when the average market price of the Company's stock during the period exceeds the option exercise price. However, in periods where the Company is in a net loss position, the dilutive effect of stock options is not included in the diluted weighted average shares total.
Anti-dilutive stock options represent stock options which are outstanding but which are not exercisable during the period because the exercise price exceeded the average market value of the Company's stock. These anti-dilutive stock options are not included in the current calculation of dilutive weighted average shares, but could be dilutive in the future. Total weighted average anti-dilutive stock options for each of the periods are as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Anti-dilutive options
4,953

 
6,024

 
4,953

 
6,152

4. STOCK-BASED COMPENSATION
The Company has several types of stock-based compensation - stock options, restricted stock, long-term incentive awards and restricted stock units (“RSUs”) - which are described in Note 6 of “Notes to Consolidated Financial Statements” in the Company's Annual Report on Form 10-K for the year ended December 31, 2011. The expense related to certain stock-based compensation awards is fixed. The expense related to other awards fluctuates from period to period dependent, in part, on the Company's stock price. The Company recorded net stock-based compensation expense of $619,000 and $664,000 for the three months ended June 30, 2012 and 2011, respectively, and $2.0 million and $1.7 million for the six months ended June 30, 2012 and 2011, respectively.
The Company has made restricted stock grants in 2012 of 261,973 shares to key employees, which vest ratably over a three-

9
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year period. In addition, the Company awarded two types of performance-based RSUs to key employees based on the following performance metrics: (1) Total Stockholder Return of the Company, as defined, as compared to the companies in the SNL US REIT Office index (“TSR SNL RSUs”), and (2) the ratio of cumulative funds from operations per share to targeted cumulative funds from operations per share (“FFO RSUs”). The performance period for both awards is January 1, 2012 to December 31, 2014, and the targeted units awarded of TSR SNL RSUs and FFO RSUs is 162,783 and 101,918, respectively. The ultimate payout of these awards can range from 0% to 200% of the targeted number of units depending on the achievement of the performance metrics described above. Both of these types of RSUs cliff vest on February 15, 2015 and are dependent upon the attainment of required service and performance criteria. The number of RSUs vesting will be determined at that date, and the payout per unit will be equal to the average closing price on each trading day during the 30-day period ending on December 31, 2014. The TSR SNL RSUs are expensed using a quarterly Monte Carlo valuation over the vesting period. The FFO RSUs are expensed over the vesting period using the fair market value of the Company's stock at the reporting date multiplied by the anticipated number of units to be paid based on the current estimate of what the ratio is expected to be upon vesting.
Also in 2012, the Company made a special grant of restricted stock of 208,333 shares to its chief executive officer, which vests ratably over a three-year period. Additionally, the Company issued performance-based RSUs to the chief executive officer. The targeted number of units awarded is 281,532. The payout of these awards can range from 0% to 150% depending on the Total Stockholder Return of the Company, as defined on an absolute basis, and compared to the total stockholder return for the companies in the SNL US REIT Office Index. The performance period of the awards is from January 1, 2012 to December 31, 2016 with interim performance measurement dates at each of the third, fourth and fifth anniversaries. To the extent that the Company has attained the defined performance goals at the end each of these periods, one-third of the units may be credited after each of the third and fourth anniversaries, with the balance credited at the end of the fifth anniversary, and to be awarded subject to continuous employment on the fifth anniversary. The RSU award is expensed using a quarterly Monte Carlo valuation over the vesting period. The number of RSUs vesting will be determined at the fifth anniversary date of the grant, and the cash payout per unit will be equal to the average closing price on each trading day during the 30-day period ending with such date.
5. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
The Company describes its investments in unconsolidated joint ventures in Note 4 of “Notes to Consolidated Financial Statements” in its Annual Report on Form 10-K for the year ended December 31, 2011. The following table summarizes balance sheet data of the Company's unconsolidated joint ventures as of June 30, 2012 and December 31, 2011 (in thousands):
 
 
Total Assets
 
Total Debt
 
Total Equity
 
Company’s Investment
 
SUMMARY OF FINANCIAL POSITION:
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
 CP Venture IV Holdings LLC
 
$
294,311

 
$
301,352

 
$
35,727

 
$
36,031

 
$
249,204

 
$
255,881

 
$
14,232

 
$
14,694

 
 Charlotte Gateway Village, LLC
 
144,700

 
146,854

 
75,788

 
83,097

 
66,551

 
62,423

 
10,316

 
10,333

 
 Palisades West LLC
 
121,701

 
124,588

 
—

 
—

 
79,956

 
81,635

 
41,743

 
42,616

 
 CF Murfreesboro Associates
 
123,544

 
125,668

 
96,559

 
98,922

 
24,947

 
24,810

 
14,451

 
14,421

 
 CP Venture LLC entities
 
101,751

 
102,178

 
—

 
—

 
99,608

 
99,942

 
3,306

 
3,343

 
 MSREF/ Cousins Terminus 200 LLC
 
96,483

 
92,421

 
73,944

 
68,562

 
19,892

 
17,967

 
3,977

 
3,593

 
 Cousins Watkins LLC
 
54,873

 
56,096

 
28,412

 
28,571

 
25,752

 
26,893

 
16,363

 
16,321

 
 EP I LLC
 
59,379

 
33,343

 
17,880

 
1

 
33,051

 
29,137

 
27,975

 
24,827

 
 Crawford Long - CPI, LLC
 
32,492

 
32,739

 
47,072

 
47,631

 
(16,390
)
 
(16,137
)
 
(7,017
)
 *
(6,873
)
 *
 Ten Peachtree Place Associates
 
786

 
22,523

 
—

 
26,192

 
717

 
(4,145
)
 
95


(3,679
)
 *
 Wildwood Associates
 
21,216

 
21,224

 
—

 
—

 
21,141

 
21,221

 
(1,680
)
 *
(1,639
)
 *
 Temco Associates, LLC
 
8,346

 
23,653

 
—

 
2,787

 
8,075

 
20,646

 
4,016

 
7,363

 
 CL Realty, L.L.C.
 
7,065

 
44,481

 
—

 
1,056

 
6,823

 
42,932

 
3,412

 
22,413

 
 TRG Columbus Development Venture, Ltd.
 
2,407

 
2,450

 
—

 
—

 
1,854

 
1,857

 
28

 
31

 
 Terminus 200 LLC
 
789

 
789

 
—

 
—

 
789

 
789

 
—

 
—

 
 Pine Mountain Builders, LLC
 
221

 
429

 
—

 
—

 
37

 
153

 
389

 
632

 
 
 
$
1,070,064

 
$
1,130,788

 
$
375,382

 
$
392,850

 
$
622,007

 
$
666,004

 
$
131,606

 
$
148,396

 
*Negative balances are included in Deferred Income on the Balance Sheets.
The following table summarizes statement of operations information of the Company's unconsolidated joint ventures for the six months ended June 30, 2012 and 2011 (in thousands):

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Total Revenues
 
Net Income (Loss)
 
Company's Share of Income (Loss)
SUMMARY OF OPERATIONS:
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 CP Venture IV Holdings LLC
 
$
15,097

 
$
15,430

 
$
1,758

 
$
1,890

 
$
508

 
$
539

 Charlotte Gateway Village, LLC
 
16,477

 
16,308

 
4,733

 
4,282

 
588

 
588

 Palisades West LLC
 
8,192

 
8,114

 
2,885

 
2,911

 
1,381

 
1,422

 CF Murfreesboro Associates
 
6,612

 
6,622

 
138

 
178

 
(66
)
 
(41
)
 CP Venture LLC entities
 
9,695

 
9,506

 
4,898

 
3,830

 
507

 
396

 MSREF/ Cousins Terminus 200 LLC
 
6,105

 
2,197

 
(704
)
 
(2,173
)
 
(141
)
 
(434
)
 Cousins Watkins LLC
 
3,120

 
2,422

 
(18
)
 
17

 
1,219

 
1,188

 EP I LLC
 
110

 
—

 
(1
)
 
—

 
(1
)
 
—

 Crawford Long - CPI, LLC
 
5,850

 
5,955

 
1,247

 
1,217

 
620

 
608

 Ten Peachtree Place Associates
 
2,487

 
3,611

 
20,897

 
407

 
7,831

 
212

 Wildwood Associates
 
—

 
—

 
(81
)
 
(85
)
 
(40
)
 
(43
)
 Temco Associates, LLC
 
500

 
318

 
(123
)
 
(416
)
 
(265
)
 
(202
)
 CL Realty, L.L.C.
 
1,997

 
3,144

 
736

 
1,390

 
53

 
545

 TRG Columbus Development Venture, Ltd.
 
9

 
19

 
(3
)
 
7

 
(3
)
 
50

 Pine Mountain Builders, LLC
 
15

 
2,632

 
(116
)
 
(44
)
 
(243
)
 
(20
)
 
 
$
76,266

 
$
76,278

 
$
36,246

 
$
13,411

 
$
11,948

 
$
4,808

In March 2012, CL Realty, L.L.C. and Temco Associates, LLC sold its interests in 18 residential development projects and related residential land to Forestar Realty Inc., its partner in both ventures. The Company's share of the proceeds from the sale was approximately $23.5 million.
In the second quarter of 2012, the Ten Peachtree Place Associates joint venture sold Ten Peachtree Place, a 260,000 square foot office building in Atlanta, Georgia, for $45.3 million. A gain was recognized on the transaction, the Company's share of which was approximately $7.5 million.
6. OTHER ASSETS
Other Assets on the Balance Sheets as of June 30, 2012 and December 31, 2011 included the following (in thousands):
 
 
June 30, 2012
 
December 31, 2011
Lease inducements, net of amortization of of $4,231 and $3,696 in 2012 and 2011, respectively
 
$
11,517

 
$
12,219

Investment in Verde Realty
 
5,868

 
5,868

FF&E and leasehold improvements, net of accumulated depreciation of $18,568 and $17,814 in 2012 and 2011, respectively
 
4,953

 
4,736

Loan closing costs, net of accumulated amortization of $2,150 and $4,026 in 2012 and 2011, respectively
 
4,248

 
1,435

Prepaid expenses and other assets
 
3,372

 
2,168

Predevelopment costs and earnest money
 
1,477

 
581

Intangible Assets:
 
 
 
 
In-place leases, net of accumulated amortization of $4,187 and $2,833 in 2012 and 2011, respectively
 
14,790

 
16,144

Goodwill
 
5,039

 
5,155

Above market leases, net of accumulated amortization of $9,165 and $8,845 in 2012 and 2011, respectively
 
4,094

 
4,414

 
 
$
55,358

 
$
52,720


Investment in Verde Realty relates to a cost method investment in a privately-held real estate investment trust. Goodwill relates entirely to the Office reportable segment. As office assets are sold, either by the Company or by joint ventures in which the Company has an ownership interest, a portion of goodwill is written off to the cost of each sale. The following is a summary of goodwill activity for the six months ended June 30, 2012. There were no changes for the six month 2011 period (see Notes 5 and 9 for additional information regarding property sales):

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Goodwill
Balance, December 31, 2011
$
5,155

Allocated to property sales
(116
)
Balance, June 30, 2012
$
5,039

7. NONCONTROLLING INTERESTS
The Company consolidates various joint ventures that are involved in the ownership and/or development of real estate. The accounting for the partners' share of the entity, some of which contain required redemption clauses, is described in Note 12 of “Notes to Consolidated Financial Statements” in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
The following table details the components of Redeemable Noncontrolling Interests in consolidated entities for the six months ended June 30, 2012 and 2011 (in thousands):
 
 
Six Months Ended June 30,
 
 
2012
 
2011
 
 
 
 
 
Beginning Balance
 
$
2,763

 
$
14,289

Net loss attributable to redeemable noncontrolling interests
 
(2,024
)
 
29

Distributions to redeemable noncontrolling interests
 
(858
)
 
(5,400
)
Other
 
119

 
—

Change in fair value of redeemable noncontrolling interests
 
—

 
526

Ending Balance
 
$
—

 
$
9,444

The following reconciles the net income or loss attributable to noncontrolling interests as shown in the Statements of Equity, which only includes nonredeemable interests, to the net income or loss attributable to noncontrolling interests as shown in the Statements of Operations, which includes both redeemable and nonredeemable interests, for the six months ended June 30, 2012 and 2011 (in thousands):
 
 
Six Months Ended June 30,
 
 
2012
 
2011
Net income attributable to nonredeemable noncontrolling interests
 
$
(1,157
)
 
$
(1,233
)
Net loss attributable to redeemable noncontrolling interests
 
2,024

 
(29
)
Net loss (income)
 
$
867

 
$
(1,262
)
8. REPORTABLE SEGMENTS
The Company has five reportable segments: Office, Retail, Land, CPS Third Party Management and Leasing, and Other. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of product and the nature of service. Each segment includes both consolidated operations and joint ventures. The Office and Retail segments show the results for that product type. For these two segments, net operating income is calculated as rental property revenues less rental property operating expenses. The Land segment includes results of operations for certain land holdings and single-family residential communities that are sold as developed lots to homebuilders. Fee income and related expenses for the third party-owned properties which are managed or leased by the Company's CPS subsidiary are included in the CPS Third Party Management and Leasing segment. In prior years, the Company had an additional segment, the For-Sale Multi-Family Residential Unit segment, which included results of operations for the development and sale of multi-family real estate projects. The Company has sold substantially all of its multi-family residential units, and this line of business is no longer considered to be a separate reporting segment. The 2011 results for this segment are included in Other. The Other segment also includes:
•
fee income for third party owned and joint venture properties, other than those managed by CPS, for which the Company performs management, development and leasing services;
•
compensation for corporate employees, other than those in the CPS Third Party Management and Leasing segment;
•
general corporate overhead costs, interest expense for consolidated entities (as financing decisions are made at the corporate level, with the exception of joint venture interest expense, which is included in joint venture results in the respective segment);
•
income attributable to noncontrolling interests;

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•
income taxes;
•
depreciation;
•
preferred dividends; and
•
operations of the Industrial properties, which were sold in 2011.
Company management evaluates the performance of its reportable segments in part based on funds from operations available to common stockholders (“FFO”). FFO is a supplemental operating performance measure used in the real estate industry. The Company calculated FFO using the National Association of Real Estate Investment Trusts' (“NAREIT”) definition of FFO, which is net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses on sale of or impairment losses on depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.
FFO is used by industry analysts, investors and the Company as a supplemental measure of a REIT's operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of a REIT's operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO, along with other measures, as a performance measure for incentive compensation to its officers and other key employees.
Segment net income, the balance of the Company's investment in joint ventures and the amount of capital expenditures are not presented in the following tables. Management does not utilize these measures when analyzing its segments or when making resource allocation decisions, and therefore this information is not provided. FFO is reconciled to net income (loss) on a total Company basis (in thousands):
Three Months Ended June 30, 2012
 
Office
 
Retail
 
Land
 
 CPS Third Party Management and Leasing
 
Other
 
Total
Net operating property income, including discontinued operations
 
$
16,741

 
$
4,749

 
$
—

 
$
—

 
$
—

 
$
21,490

Fee income, net of reimbursed expenses
 
—

 
—

 
—

 
3,676

 
1,429

 
5,105

Residential lot and other sales, net of cost of sales
 
—

 
—

 
89

 
—

 
—

 
89

Other income
 
—

 
13

 
—

 
—

 
253

 
266

Third party management and leasing expenses
 
—

 
—

 
—

 
(2,254
)
 
—

 
(2,254
)
General and administrative expenses
 
—

 
—

 
—

 
—

 
(5,645
)
 
(5,645
)
Interest expense
 
—

 
—

 
—

 
—

 
(5,875
)
 
(5,875
)
Depreciation and amortization of non-real estate assets
 
—

 
—

 
—

 
—

 
(223
)
 
(223
)
Separation expenses
 
—

 
—

 
—

 
—

 
(79
)
 
(79
)
Other expenses
 
—

 
—

 
—

 
—

 
(579
)
 
(579
)
Funds from operations from unconsolidated joint ventures
 
2,709

 
2,176

 
(135
)
 
—

 
(2
)
 
4,748

Funds from operations attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
(631
)
 
(631
)
Provision for income taxes from operations
 
—

 
—

 
—

 
—

 
(33
)
 
(33
)
Preferred stock dividends
 
—

 
—

 
—

 
—

 
(3,227
)
 
(3,227
)
Funds from operations available to common stockholders
 
$
19,450

 
$
6,938

 
$
(46
)
 
$
1,422

 
$
(14,612
)
 
$
13,152

 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate depreciation and amortization, including Company's share of joint ventures
 
 
 
 
 
 
 
 
 
 
 
(15,022
)
Gain on sale of depreciable investment properties
 
 
 
 
 
 
 
 
 
 
 
8,271

Net income available to common stockholders
 
 
 
 
 
 
 
 
 
 
 
$
6,401


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Three Months Ended June 30, 2011
Office
 
Retail
 
Land
 
 CPS Third Party Management and Leasing
 
Other
 
Total
Net operating property income, including discontinued operations
$
15,458

 
$
4,847

 
$
—

 
$
—

 
$
911

 
$
21,216

Fee income, net of reimbursed expenses
—

 
—

 
56

 
2,396

 
2,008

 
4,460

Residential lot and other sales, net of cost of sales
—

 
—

 
4

 
—

 
—

 
4

Other income
447

 
10

 
—

 
—

 
194

 
651

Third party management and leasing expenses
—

 
—

 
—

 
(1,871
)
 
—

 
(1,871
)
General and administrative expenses
—

 
—

 
—

 
—

 
(6,133
)
 
(6,133
)
Interest expense
—

 
—

 
—

 
—

 
(7,358
)
 
(7,358
)
Depreciation and amortization of non-real estate assets
—

 
—

 
—

 
—

 
(372
)
 
(372
)
Separation expenses
—

 
—

 
—

 
—

 
(77
)
 
(77
)
Other expenses
—

 
—

 
—

 
—

 
(659
)
 
(659
)
Funds from operations from unconsolidated joint ventures
2,685

 
2,125

 
127

 
—

 
33

 
4,970

Funds from operations attributable to noncontrolling interests
—

 
—

 
—

 
—

 
(681
)
 
(681
)
Provision for income taxes from operations
—

 
—

 
—

 
—

 
(27
)
 
(27
)
Preferred stock dividends
—

 
—

 
—

 
—

 
(3,227
)
 
(3,227
)
Funds from operations available to common stockholders
$
18,590

 
$
6,982


$
187


$
525


$
(15,388
)

$
10,896

 
 
 
 
 
 
 
 
 
 
 
 
Real estate depreciation and amortization, including Company's share of joint ventures
 
 
 
 
 
 
 
 
 
 
(15,661
)
Gain on sale of depreciable investment properties
 
 
 
 
 
 
 
 
 
 
59

Net loss available to common stockholders
 
 
 
 
 
 
 
 
 
 
$
(4,706
)

14
Table of Contents


Six Months Ended June 30, 2012
Office
 
Retail
 
Land
 
 CPS Third Party Management and Leasing
 
Other
 
Total
Net operating income, including discontinued operations
$
33,676

 
$
10,797

 
$
—

 
$
—

 
$
1

 
$
44,474

Fee income, net of reimbursed expenses
—

 
—

 
—

 
6,086

 
2,909

 
8,995

 Residential lot and other sales, net of cost of sales
—

 
—

 
474

 
—

 
—

 
474

Other income
—

 
205

 
—

 
—

 
1,526

 
1,731

Third party management and leasing expenses
—

 
—

 
—

 
(4,253
)
 
—

 
(4,253
)
General and administrative expenses
—

 
—

 
—

 
—

 
(12,268
)
 
(12,268
)
Interest expense
—

 
—

 
—

 
—

 
(12,143
)
 
(12,143
)
Loss on extinguishment of debt
—

 
—

 
—

 
—

 
(94
)
 
(94
)
Depreciation and amortization of non-real estate assets
—

 
—

 
—

 
—

 
(587
)
 
(587
)
Separation expenses
—

 
—

 
—

 
—

 
(292
)
 
(292
)
Other expenses
—

 
—

 
—

 
—

 
(1,273
)
 
(1,273
)
Funds from operations from unconsolidated joint ventures
5,709

 
4,286

 
(397
)
 
—

 
(3
)
 
9,595

Funds from operations attributable to noncontrolling interests
—

 
—

 
—

 
—

 
(1,205
)
 
(1,205
)
Provision for income taxes from operations
—

 
—

 
—

 
—

 
(60
)
 
(60
)
Preferred stock dividends
$
—

 
$
—

 
$
—

 
$
—

 
$
(6,454
)
 
$
(6,454
)
Funds from operations available to common stockholders
$
39,385

 
$
15,288