Thomas Properties Group, Inc. Announces Fourth Quarter 2007 Results

LOS ANGELES--(Business Wire)--
Thomas Properties Group, Inc. (Nasdaq:TPGI) reported today the
results of operations for the quarter and year ended December 31,
2007.

The results of operations presented in this release include TPGI's
results of operations for the three months and twelve months ended
December 31, 2007 and 2006. The consolidated net loss for the three
months ended December 31, 2007 was $1,569,000 or $0.07 per share
compared to consolidated net loss of $1,567,000 or $0.11 per share for
the three months ended December 31, 2006. The consolidated net loss
for the year ended December 31, 2007 was $903,000 or $0.04 per share
compared to consolidated net loss of $2,049,000 or $0.14 per share for
the year ended December 31, 2006.

TPGI's share of after tax cash flow (a non-GAAP financial
measure), for the three months ended December 31, 2007 was $4,028,000
or $0.17 per share compared to after tax cash flow of $3,755,000 or
$0.26 per share for the three months ended December 31, 2006. TPGI's
share of after tax cash flow for the year ended December 31, 2007 was
$21,626,000 or $1.04 per share compared to after tax cash flow of
$14,860,000 or $1.04 per share for the year ended December 31, 2006.
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.

"In the fourth quarter, we made progress stabilizing our joint
venture properties; occupancy continues to increase in this value-add
portfolio," said James A. Thomas, President and CEO. "We are
continuing to execute on our development program, a key driver in our
growth strategy. Our balance sheet is stable, and we have a strong
cash position which should allow us to take advantage of opportunities
to enhance the value of our company."

Financial schedules follow. Further information is available in
the Supplemental Financial Information for the Fourth Quarter 2007,
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 Thursday,
February 28, 2008, at 11:30 a.m. Pacific Time. To participate in the
call, dial (800) 299-9086 and (617) 786-2903 internationally, and
provide confirmation code 42927203.

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 March
20, 2008 by calling (888) 286-8010 and (617) 801-6888 internationally,
and providing confirmation code 58415103. A webcast replay of the call
will also be available from the Investor Relations section of our
website 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, 2006, as
amended on Form 10-K/A and our quarterly reports on Form 10-Q for
2007, which have 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.

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*T
THOMAS PROPERTIES GROUP, INC. AND SUBSIDIARIES

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

Three months ended Twelve months ended
December 31, December 31,
---------------------------------------------------
2007 2006 2007 2006
------------ ------------ ------------ ------------
(unaudited) (unaudited) (audited)
Revenues:
Rental $ 8,072 $ 8,190 $ 32,646 $ 33,076
Tenant
reimbursements 4,914 5,080 20,287 19,399
Parking and
other 1,106 886 4,051 3,945
Investment
advisory,
management,
leasing, and
development
services 1,892 2,017 13,535 7,913
Investment
advisory,
management,
leasing, and
development
services
unconsolidated
real estate
entities 5,884 4,596 21,013 14,241
------------ ------------ ------------ ------------
Total revenues 21,868 20,769 91,532 78,574
------------ ------------ ------------ ------------

Expenses:
Rental property
operating and
maintenance 4,332 3,326 16,740 15,115
Real estate
taxes 1,509 1,473 6,087 5,904
Investment
advisory,
management,
leasing, and
development
services 4,727 2,865 15,359 9,759
Rent -
unconsolidated
real estate
entities 60 57 241 227
Interest 5,316 4,692 17,721 20,570
Depreciation and
amortization 2,828 3,144 11,604 12,661
General and
administrative 4,334 5,447 18,937 17,202
------------ ------------ ------------ ------------
Total expenses 23,106 21,004 86,689 81,438
------------ ------------ ------------ ------------

Gain on sale of
real estate 1,151 1,041 4,441 10,640
Loss from early
extinguishment of
debt - - - (360)
Interest income 1,568 1,107 6,014 2,974
Equity in net loss
of unconsolidated
real estate
entities (5,487) (3,409) (14,853) (12,909)
Minority interests
- unitholders in
the Operating
Partnership 1,471 849 (249) 1,577
Minority interests
in consolidated
real estate
entities 35 18 122 (472)
------------ ------------ ------------ ------------

(Loss)/income
before
(provision)
benefit for
income taxes (2,500) (629) 318 (1,414)

Benefit
(provision) for
income taxes 931 (938) (1,221) (635)
------------ ------------ ------------ ------------

Net loss $ (1,569) $ (1,567) $ (903) $ (2,049)
============ ============ ============ ============

Loss per share-
basic $ (0.07) $ (0.11) $ (0.04) $ (0.14)
Loss per share-
diluted $ (0.07) $ (0.11) $ (0.04) $ (0.14)

Weighted average
common shares -
basic 23,643,502 14,354,703 20,739,371 14,339,032
Weighted average
common shares -
diluted 23,643,502 14,354,703 20,739,371 14,339,032

Reconciliation of
net loss to EBDT
(a):

Net loss $ (1,569) $ (1,567) $ (903) $ (2,049)
Adjustments:
Deferred income
tax expense
(benefit) (931) 938 1,221 635
Minority
interests (1,506) (867) 127 (1,105)
Depreciation
and
amortization 2,828 3,144 11,604 12,661
Amortization of
loan costs 82 129 327 487
Unconsolidated
real estate
entities:
Depreciation
and
amortization 6,285 3,585 19,712 14,610
Depreciation
and
amortization
from
discontinued
operations - 43 12 156
Amortization
of loan
costs 437 521 1,681 1,407
Amortization
from
discontinued
operations - 34 - 173
------------ ------------ ------------ ------------
EBDT $ 5,626 $ 5,960 $ 33,781 $ 26,975
============ ============ ============ ============

TPGI share of EBDT
(b) $ 3,405 $ 2,691 $ 18,951 $ 12,216
============ ============ ============ ============

EBDT per share -
basic $ 0.14 $ 0.19 $ 0.91 $ 0.85
============ ============ ============ ============
EBDT per share -
diluted $ 0.14 $ 0.19 $ 0.91 $ 0.85
============ ============ ============ ============

Reconciliation of
net loss to ATCF
(c):

Net loss $ (1,569) $ (1,567) $ (903) $ (2,049)
Adjustments:
Deferred income
tax expense
(benefit) (931) 938 1,221 635
Minority
interests (1,506) (867) 127 (1,105)
Depreciation
and
amortization 2,828 3,144 11,604 12,661
Amortization of
loan costs 82 129 327 487
Non-cash
compensation
expense 849 1,381 3,765 3,754
Straight-line
rent
adjustments 1,473 1,478 5,857 5,543
Fair market
value of rent
adjustments (12) (1) (16) (259)
Unconsolidated
real estate
entities:
Depreciation
and
amortization 6,285 3,585 19,712 14,610
Depreciation
and
amortization
from
discontinued
operations - 43 12 156
Amortization
of loan
costs 437 521 1,681 1,407
Amortization
from
discontinued
operations - 34 - 173
Straight-line
rent
adjustments (669) (538) (3,410) (3,288)
Fair market
value of
rent
adjustments (613) 36 (1,428) 76
------------ ------------ ------------ ------------
ATCF $ 6,654 $ 8,316 $ 38,549 $ 32,801
============ ============ ============ ============

TPGI share of ATCF
(b) $ 4,028 $ 3,755 $ 21,626 $ 14,860
============ ============ ============ ============

ATCF per share -
basic $ 0.17 $ 0.26 $ 1.04 $ 1.04
============ ============ ============ ============
ATCF per share -
diluted $ 0.17 $ 0.26 $ 1.04 $ 1.04
============ ============ ============ ============

Weighted average
common shares -
basic 23,643,502 14,354,703 20,739,371 14,339,032
Weighted average
common shares -
diluted 23,626,031 14,368,763 20,766,182 14,352,913

(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 60.5% and
45.2% for the three months ended December 31, 2007 and 2006,
respectively, and 56.1% and 45.3% for the year ended December 31,
2007 and 2006, 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).
*T

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*T
THOMAS PROPERTIES GROUP, INC.

CONSOLIDATED BALANCE SHEETS
(In thousands)

December 31, 2007 December 31, 2006
----------------- -----------------
(unaudited) (audited)
ASSETS
Investments in real estate $ 574,983 $ 442,798
Less accumulated depreciation (111,619) (106,644)
----------------- -----------------
463,364 336,154
Investments in unconsolidated real
estate entities 49,199 52,364
Cash and cash equivalents 126,647 64,343
Restricted cash 26,251 21,500
Rents and other receivables, net 2,352 2,195
Receivables - unconsolidated real
estate entities 6,640 4,074
Deferred rents 11,932 17,610
Deferred leasing and loan costs,
net 15,815 14,707
Other assets 18,692 5,133
----------------- -----------------
Total assets $ 720,892 $ 518,080
================= =================

LIABILITIES AND STOCKHOLDERS'
EQUITY

Mortgage, other secured, and
unsecured loans $ 396,007 $ 331,828
Accounts payable and other
liabilities 74,733 35,458
Dividends and distributions payable 2,354 1,916
Due to affiliate 2,000 -
Prepaid rent 3,402 3,558
Deferred tax liability - 2,392
----------------- -----------------
Total liabilities 478,496 375,152
----------------- -----------------

Minority interests:
Unitholders in the Operating
Partnership 93,492 76,390
Minority interests in consolidated
real estate entities 4,581 4,288
----------------- -----------------
Total minority interests 98,073 80,678
----------------- -----------------

Common stock 237 144
Limited voting stock 145 167
Additional paid-in capital 159,420 71,095
Retained deficit and dividends
including $329 and $258 of
other comprehensive loss as of
December 31, 2007
and December 31, 2006, respectively (15,479) (9,156)
----------------- -----------------
Total stockholders' equity 144,323 62,250
----------------- -----------------
Total liabilities and
stockholders' equity $ 720,892 $ 518,080
================= =================
*T

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

Copyright Business Wire 2008