Cousins Properties Records Loss, But Better Results Excluding Noncash Charges

Cousins Properties, a REIT, has reported its results for the second quarter after the bell. This detailed report starts off by pointing out that Cousins' earnings minus certain impairment, valuation and retirement charges were up in 2Q '09 with respect to 2Q '08. Once those charges are included, though, the company posted a $1.56 per share loss; 2Q '08's EPS was a gain of 16 cents.

When compared with 1Q '09's result, the $1.56 loss doesn't look all that bad: EPS for the first quarter was $3.13. The corresponding net income of $160.571 million would have been a slight loss had it not been for a $167.434 million gain from the sale of some properties. Since Cousins is a REIT, gain on sale of investment properties is treated as part of continuing operations.

Right around now is the predicted start time of a commercial real-estate collapse. In Cousins' case, though, the impairment charges came from a condo project and a residential real-estate development deal that went sour.

To move back to Cousins' second quarter, I note that its cash flow from operations for the first six months of 2009 was $15.516 million. For the first six months of '08, it was $26.324 million.