N@N

Thomas Properties Group, Inc. Announces Third Quarter 2010 Results

^{Published on 2010-11-05 12:05:51 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Thomas Properties Group, Inc. (Nasdaq: TPGI) reported today the results of operations for the quarter ended September 30, 2010.

The results of operations presented in this release include TPGIa™s results of operations for the three and nine months ended September 30, 2010 and 2009. The consolidated net loss for the three months ended September 30, 2010 was $(1.4) million or $(0.04) per share compared to consolidated net loss of $(10.9) million or $(0.43) per share for the three months ended September 30, 2009. The consolidated net loss for the nine months ended September 30, 2010 was $(5.3) million or $(0.16) per share compared to consolidated net loss of $(13.8) million or $(0.56) per share for the nine months ended September 30, 2009. The decrease in the consolidated net loss for the three and nine months ended September 30, 2010 compared to the consolidated net loss for the three and nine months ended September 30, 2009 is primarily due to the $8.6 million Murano impairment charge recognized in the quarter ended September 30, 2009. There was no corresponding impairment charge recognized in 2010.

After tax cash flow (aATCFa) for the three months ended September 30, 2010 was $2.3 million or $0.07 per share compared to after tax cash flow of $0.6 million or $0.02 per share for the three months ended September 30, 2009. After tax cash flow for the nine months ended September 30, 2010 was $9.4 million or $0.28 per share compared to after tax cash flow of $5.7 million or $0.23 per share for the nine months ended September 30, 2009. The increase in ATCF for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009 was primarily due to decreases in interest expense due to reduced debt balances, and general and administrative expenses. The Company defines ATCF (a non-GAAP financial measure) as net income (loss) excluding the following items: non-controlling interests, deferred income taxes, non-cash charges for depreciation and amortization and asset impairment, amortization of loan costs, non-cash compensation expense, straight-line rent adjustments, adjustments to reflect the fair market value of rent, and gain from extinguishment of debt. ATCF is further described in note (c) to the financial statements below.

James A. Thomas, Chairman and CEO, stated, aOccupancy continues to improve, to 84.8% at September 30, 2010, compared with 83.9% at December 31, 2009. We have successfully extended and refinanced all our mortgage debt due through 2011, and have reduced our share of portfolio leverage by $155.2 million since December 31, 2009, including the recent restructuring of the mezzanine loans at our Centerpointe property. We are concentrating our efforts on continuing to enhance the value of our portfolio through our leasing efforts, along with very strategic capital expenditures intended to improve rental rates and occupancies in our value add properties.a

Supplemental Materials

The company will publish a Supplemental Financial Information package which will be available at [ www.tpgre.com ] in the Investor Relations tab, Supplemental Financial Information section.

Teleconference and Webcast

TPGI will hold a quarterly earnings conference call on Friday, November 5, 2010 at 9:00 a.m. Pacific Time. To participate in the call, dial 866-713-8562 and 617-597-5310 internationally, and provide confirmation code 45343615.

A live webcast (listen only mode) of the conference call will also be available at this time. A hyperlink to the live webcast will be available from the Investor Relations section of our website at [ www.tpgre.com ]. A replay of the call will be available through November 26, 2010, by calling 888-286-8010 and 617-801-6888 internationally, and providing confirmation code 60459342. The replay will also be available on Thomas Properties Group, Inc.a™s web site at [ www.tpgre.com ].

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at [ www.earnings.com ], Thomsona™s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents ([ www.streetevents.com ]), a password-protected event management site.

About Thomas Properties Group, Inc.

Thomas Properties Group, Inc., with headquarters in Los Angeles, is a full-service real estate company that owns, acquires, develops and manages primarily office, as well as mixed-use and residential properties on a nationwide basis. The companya™s primary areas of focus are the acquisition and ownership of premier properties, property development and redevelopment, and property and investment management activities. For more information on Thomas Properties Group, Inc., visit [ www.tpgre.com ].

Forward Looking Statements

Statements made in this press release or during the quarterly earnings conference call that are not historical may contain forward-looking statements. Although TPGI believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. Factors that could cause actual results to differ materially from TPGIa™s expectations include actual and perceived trends in various national and economic conditions that affect global and regional markets for commercial real estate services (including interest rates), the availability of credit and equity investors to finance commercial real estate transactions, our ability to enter into or renew leases at favorable rates, which can be impacted by the financial condition of our tenants, risks associated with the success of our development and property redevelopment projects, general volatility in the securities and credit markets, and the impact of tax laws affecting real estate. For a discussion of some of the factors that may cause our results to differ from managementa™s expectations, see the information under the captions aRisk Factorsa and aManagementa™s Discussion and Analysis of Financial Condition and Results of Operationsa in our Form 10-K for the year ended December 31, 2009 and our subsequent Form 10-Q quarterly reports, each of which is filed with the SEC. TPGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(a) EBDT is a non-GAAP financial measure and may not be directly comparable to similarly-titled measures reported by other companies. We define EBDT as net income (loss) excluding the following items: i) income tax expense (benefit); ii) noncontrolling interests; iii) depreciation and amortization; and iv) amortization of loan costs. EBDT provides a performance measure that, when compared year over year, reflects the impact to operations from changes to occupancy rates, rental rates, operating costs, development and redevelopment activities, general and administrative expenses, and interest costs, and provides perspective on operating performance not immediately apparent from net income. EBDT should be considered only as a supplement to net income as a measure of our performance. EBDT also assists management in identifying trends for purposes of financial planning and forecasting results. However, the usefulness of EBDT as a performance measure is limited and EBDT should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. EBDT also should not be used as a supplement to or substitute for cash flow from operating activities (computed in accordance with GAAP).

(b) Based on an interest in our operating partnership of 71.71% and 70.64% for the three and nine months ended September 30, 2010, respectively, and 64.65% and 64.17% for the three and nine months ended September 30, 2009, respectively.

(c) ATCF is a non-GAAP financial measure and may not be directly comparable to similarly-titled measures reported by other companies. We define ATCF as net income (loss) excluding the following items: i) deferred income tax expense (benefit); ii) noncontrolling interests; iii) non-cash charges for depreciation and amortization and asset impairment; iv) amortization of loan costs; v) non-cash compensation expense; vi) the adjustment to recognize rental revenues using the straight-line method; vii) the adjustment to rental revenue to reflect the fair market value of rents; and viii) gain on extinguishment of debt. Management utilizes ATCF data in assessing performance of our business operations in period-to-period comparisons and for financial planning purposes. ATCF should be considered only as a supplement to net income as a measure of our performance. ATCF should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. ATCF also should not be used as a supplement to or substitute for cash flow from operating activities (computed in accordance with GAAP).