Thomas Properties Group, Inc. Announces First Quarter 2008 Results

LOS ANGELES--(Business Wire)--
Thomas Properties Group, Inc. (Nasdaq:TPGI) reported today the
results of operations for the quarter ended March 31, 2008.

The results of operations presented in this release include TPGI's
results of operations for the three months ended March 31, 2008 and
2007. The consolidated net income for the three months ended March 31,
2008 was $219,000 or $0.01 per share compared to consolidated net loss
of $255,000 or $0.02 per share for the three months ended March 31,
2007.

TPGI's share of after tax cash flow (a non-GAAP financial
measure), for the three months ended March 31, 2008 was $6,386,000 or
$0.27 per share compared to after tax cash flow of $3,373,000 or $0.23
per share for the three months ended March 31, 2007. We define after
tax cash flow (ATCF) as net income (loss) excluding the following
items: deferred income taxes, minority interest, non-cash charges for
depreciation and amortization, amortization of loan costs, non-cash
compensation expense, straight-line rent adjustments and fair market
value rent adjustments. ATCF is further described in note (c) to the
financial statements below.

"During the first quarter we made progress in all facets of our
business," said Jim Thomas, Chairman and CEO. "City National Plaza in
downtown Los Angeles, one of the most significant value add assets
owned by TPG/CalSTRS, was 81.5% leased at March 31, 2008, and we
continue to make improvements to the retail and common areas. We began
significant redevelopment work at the joint venture's Brookhollow
project in Houston to reposition the property and to outfit it for the
pending occupancy of Sterling Bank, which executed a 20-year lease for
211,000 square feet with us in late 2007. Fund raising for the Thomas
High Performance Green Fund continues; we have completed the first
closing of the fund with commitments of $180 million. We look forward
to making investments in high performance, sustainable commercial
buildings through this vehicle."

Financial schedules follow. Further information is available in
the Supplemental Financial Information for the First Quarter 2008,
which is available in the Investor Relations section (Financial
Information) on TPGI's website.

Teleconference and Webcast

TPGI will hold a quarterly earnings conference call on Friday, May
9, 2008 at 10:00 a.m. Pacific Time. To participate in the call, dial
(866) 825-1692 and (617) 213-8059 internationally, and provide
confirmation code 66486674.

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 May 30,
2008 by calling (888) 286-8010 and (617) 801-6888 internationally, and
providing confirmation code 23101130. The replay will also be
available on Thomas Properties Group, Inc.'s web site at
www.tpgre.com.

The webcast is also being distributed through the Thomson
StreetEvents Network to both institutional and individual investors.
Individual investors can listen to the call at www.fulldisclosure.com,
Thomson/CCBN's individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson's
password-protected event management site, StreetEvents
(www.streetevents.com).

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 company's primary areas of focus
are the acquisition and ownership of premier properties, property
development and redevelopment, and property and investment management
activities. The company seeks to capitalize on opportunities for
above-average risk-adjusted investment returns from real estate, while
managing the volatility associated with the real estate industry,
through joint-venture ownership structures. 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 TPGI'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, 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 management's expectations,
see the information under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations - Factors That May Influence Future Results of
Operations" in our 10-K for the year ended December 31, 2007, which
has been 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.

-0-
*T
THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)

Three months ended March 31,
----------------------------
2008 2007
-------------- ------------
(unaudited)
Revenues:
Rental $ 7,833 $ 8,162
Tenant reimbursements 6,855 6,585
Parking and other 960 993
Investment advisory, management,
leasing, and development services 2,065 2,203
Investment advisory, management,
leasing, and development services
unconsolidated real estate entities 5,918 4,358
-------------- ------------
Total revenues 23,631 22,301
-------------- ------------

Expenses:
Rental property operating and
maintenance 6,008 5,739
Real estate taxes 1,600 1,475
Investment advisory, management,
leasing, and development services 5,183 3,474
Rent - unconsolidated real estate
entities 65 60
Interest 4,077 4,261
Depreciation and amortization 2,771 3,059
General and administrative 4,097 3,976
-------------- ------------
Total expenses 23,801 22,044
-------------- ------------

Gain on sale of real estate 2,519 969
Interest income 1,063 839
Equity in net loss of unconsolidated
real estate entities (2,565) (3,169)
Minority interests - unitholders in the
Operating Partnership (347) 593
Minority interests in consolidated real
estate entities 41 25
-------------- ------------

Income (loss) before (provision)
benefit for income taxes 541 (486)

(Provision) benefit for income taxes (322) 231
-------------- ------------

Net income (loss) $ 219 $ (255)
============== ============

Income (loss) per share-basic $ 0.01 $ (0.02)
Income (loss) per share-diluted $ 0.01 $ (0.02)

Weighted average common shares - basic 23,658,963 14,373,318
Weighted average common shares -
diluted 23,658,963 14,373,318

Reconciliation of net income (loss) to
EBDT (a):

Net income (loss) $ 219 $ (255)
Adjustments:
Deferred income tax expense
(benefit) 322 (231)
Minority interests 306 (618)
Depreciation and amortization 2,771 3,059
Amortization of loan costs 81 81
Unconsolidated real estate
entities:
Depreciation and
amortization 5,118 3,854
Depreciation and
amortization from
discontinued operations - 12
Amortization of loan costs 296 412
-------------- ------------
EBDT $ 9,113 $ 6,314
============== ============

TPGI share of EBDT (b) $ 5,551 $ 2,846
============== ============

EBDT per share - basic $ 0.23 $ 0.20
============== ============
EBDT per share - diluted $ 0.23 $ 0.20
============== ============

Reconciliation of net income (loss) to
ATCF (c):

Net income (loss) $ 219 (255)
Adjustments:
Deferred income tax expense
(benefit) 322 (231)
Minority interests 306 (618)
Depreciation and amortization 2,771 3,059
Amortization of loan costs 81 81
Non-cash compensation expense 747 709
Straight-line rent adjustments 1,765 1,481
Fair market value of rent
adjustments (10) (2)
Unconsolidated real estate
entities:
Depreciation and
amortization 5,118 3,854
Depreciation and
amortization from
discontinued operations - 12
Amortization of loan costs 296 412
Straight-line rent
adjustments (862) (906)
Fair market value of rent
adjustments (269) (114)
-------------- ------------
ATCF $ 10,484 $ 7,482
============== ============

TPGI share of ATCF (b) $ 6,386 $ 3,373
============== ============

ATCF per share - basic $ 0.27 $ 0.23
============== ============
ATCF per share - diluted $ 0.27 $ 0.23
============== ============

Weighted average common shares - basic 23,658,963 14,373,318
Weighted average common shares -
diluted 23,658,963 14,428,607
*T

(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)
deferred income tax expense (benefit); ii) minority interests; iii)
non-cash charges for 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 60.91%
and 45.08% for the three months ended March 31, 2008 and 2007,
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) minority interests; iii)
non-cash charges for depreciation and amortization; iv) amortization
of loan costs; v) non-cash compensation expense; vi) the adjustment to
recognize rental revenues using the straight-line method; and vii) the
adjustment to rental revenue to reflect the fair market value of
rents. 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).

-0-
*T
THOMAS PROPERTIES GROUP, INC.

CONSOLIDATED BALANCE SHEETS
(In thousands)

March 31, December
2008 31, 2007
----------- ----------
(unaudited) (audited)
ASSETS
Investments in real estate $ 613,531 $ 574,983
Less accumulated depreciation (110,983) (111,619)
----------- ----------
502,548 463,364
Investments in unconsolidated real estate
entities 45,409 49,199
Cash and cash equivalents 107,380 126,647
Restricted cash 23,226 26,251
Rents and other receivables, net 2,713 2,352
Receivables - unconsolidated real estate
entities 6,440 6,640
Deferred rents 12,931 14,696
Deferred leasing and loan costs, net 15,479 13,051
Other assets 23,400 18,692
----------- ----------
Total assets $ 739,526 $ 720,892
=========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage, other secured, and unsecured loans $ 419,930 $ 396,007
Accounts payable and other liabilities 72,298 74,733
Dividends and distributions payable 2,364 2,354
Due to affiliate - 2,000
Prepaid rent 3,680 3,402
----------- ----------
Total liabilities 498,272 478,496
----------- ----------

Minority interests:
Unitholders in the Operating Partnership 93,852 95,245
Minority interests in consolidated real estate
entities 4,540 4,581
----------- ----------
Total minority interests 98,392 99,826
----------- ----------

Common stock 238 237
Limited voting stock 145 145
Additional paid-in capital 159,371 157,799
Retained deficit and dividends including $232
and $201 of other comprehensive loss as of
March 31, 2008 and December 31, 2007,
respectively (16,892) (15,611)
----------- ----------
Total stockholders' equity 142,862 142,570
----------- ----------
Total liabilities and stockholders'
equity $ 739,526 $ 720,892
=========== ==========
*T

Thomas Properties Group, Inc.
Diana Laing, Chief Financial Officer, 213-613-1900
www.tpgre.com

Copyright Business Wire 2008