Thomas Focuses on Capital Preservation

LOS ANGELES-Thomas Properties Group is focusing on capital preservation and creation in response to the continuing credit crunch and the economic downturn, president and CEO Jim Thomas said during the recent earnings conference call hosted by the Downtown, L.A.-based company. Thomas commented that “While we are operating in very challenging economic conditions, our properties’ occupancies are relatively strong, rental rates in our markets are holding up, and we do not have significant lease expirations this year.”

Thomas noted that the company has loan extension options for all of its debt maturing in 2009 except for one small loan, which it intends to pay. “We are closely monitoring our costs to conserve cash by halting pre-development, deferring capital expenditures where possible and minimizing overhead cost,” he said. “We are working to be in a position not only to survive the economic downturn, but also to take advantage of opportunities that will undoubtedly be present.”

Regarding the company’s strategy during the downturn, Thomas commented, “Our main focus now and our number priority until the global economic picture becomes clear is capital preservation and creation.” He pointed out that the company has implemented a plan to reduce its cash expenditures and to effect other measures to preserve capital through the end of 2011. The plan calls for deferring elective capital expenditures, reducing development activity and reducing capital required for new investments.