This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Colonial Properties Trust's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Tom Lowder, our Chairman and Chief Executive Officer, and Reynolds Thompson, President and Chief Financial Officer, will lead today’s call. On the call, they will discuss our business developments, financial results for the second quarter, and our updated guidance for 2012. After their comments, we’ll open up the call to take your questions. Paul Earle, our Chief Operating Officer, is also here to field questions.

I’ll now turn the call over to Tom.

Tom Lowder

Thank you, Jerry, and again welcome to everyone joining us. Higher quality Sunbelt multi-family portfolio coupled with solid fundamentals resulted in another quarter of strong operating results. As I’ve discussed on our quarterly calls this year, 2012 initiatives are to grow the company, achieve investment grade rating and improved our portfolio.

During the quarter, we were able to execute on all of these objectives. We grew our core business by increasing our same-property net operating income by 7.3% as compared to last year. We acquired one asset in Dallas for $29.8 million and began two new developments, one in South Orlando in the Lake Nona sub-market and the second phase at Colonial Grand at Ayrsley in Charlotte, North Carolina. We now have seven multifamily developments under construction, representing over 2, 000 units and of total investments of approximately $250 million.

As I mentioned on our last call, S&P upgraded our unsecured debt rating to BBB- and we are scheduled to meet with Moody’s next month. Our improving operations, coupled with the progress on our balance sheet, yielded a debt-to-EBTIDA ratio of 7.8 times and a fixed charge ratio of 2.3 times for the second quarter. Our leverage was 45.2% as of June 30. We’ve been able to achieve all of these balance sheet ratios while we are in the midst of the development pipeline I’ve previously discussed. This pipeline will begin delivering income for us in 2013, which will further improve our ratios.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,131.97 +100.83 0.59%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs