Cogdell Spencer Inc. Announces Increased Earnings in 2008, Cautious Outloo... (/b On December 29 2008 the Compan...)

Cogdell Spencer Inc. Announces Increased Earnings in 2008, Cautious Outlook for 2009

Date:2/25/2009

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On December 29, 2008, the Company announced that its Board of Directors approved a business plan for 2009 that focuses on cost reductions and the preservation of capital for productive deployment while allowing the Company to pursue its integrated delivery strategy despite client-related project delays resulting from the current financial crisis. As part of this plan, the Company has implemented a cost saving plan which, when combined with a reduction in force, will generate approximately $17 million in annual savings. As a part of this effort, the Company's Erdman subsidiary implemented a reduction in force in order to right-size the organization for contracted 2009 revenues, and eliminated approximately 115 jobs.

The Company also announced a reduction of its dividend from an annual equivalent of $1.40 per share and operating partnership unit ($0.35 per share and operating partnership unit per quarter) to an annual equivalent of $0.90 per share and operating partnership unit ($0.225 per share and operating partnership unit per quarter beginning with the fourth quarter of 2008).

Financing

In December 2008, the Company placed a mortgage on the previously unencumbered East Jefferson Medical Plaza, LLC facility in Metairie, LA. The $11.6 million note payable matures on January 31, 2012, and requires interest-only payments at an interest rate that has been swapped to a fixed rate of 5.55%.

In December 2008, the Company refinanced the mortgage note payable for the River Hills Medical Associates, LLC facility in Little River, SC. Terms of the note payable require monthly payments of principal and interest through December 2011, at which time the remaining principal is due. The note payable has an interest rate that has been swapped to a fixed rate of 5.53%. In connection with the refinancing, the principal balance was increased by $1.1 million to $4.0 million.

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Cogdell Spencer Inc. Announces Increased Earnings in 2008, Cautious Outloo...(/b On December 29 2008 the Compan...),Health