Net income available to common stockholders per share decreased 61% to 22 cents from 57 cents per share in first quarter 2003. Net income available also decreased 61% to $10.8 million from $27.6 million.
Funds from operations available were down 43% to 54 cents per share from 95 cents in last year's comparable period. FFO decreased 42% to $27 million from $46.5 million.
Cousins president and CEO Tom Bell says net income available and FFO decreased "primarily due to a decrease in lease termination fees and a decrease in rental property revenues, less rental property operation expenses, from property sales that occurred in 2003." The net income and FFO numbers were partially offset by an increase in net profits from residential lot and tract sales, Bell says.
Lease termination fees totaled $2.2 million in the first quarter, compared to $21.1 million in first quarter 2003. Last year's termination fee total included $20 million from Cable & Wireless Co. at space it had occupied in the 55 Second St. office building.
Rental property revenue, less rental property operating expenses for the sold properties total $5.3 million. Net profits from residential lot and tract sales increased by $4.8 million to $6 million in the first quarter.
As of March 31, the company's portfolio of operational office and medical office buildings was 90% leased and its operational retail centers were 91% leased, giving the portfolio an overall leasing level of 90%.
Despite the lower financials, Bell says the company is on track. "If the first quarter is any indication, this should be an eventful years for Cousins," he predicts. "We have two retail projects under construction, one in Florida and one in Virginia. On the office side, we've had some good leasing activity this year, signing Morgan Stanley at Frost Bank Tower and expanding our relationship with GE Energy with a new lease at Wildwood Plaza that was finalized in April.
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