Citi Comments On CSA Earnings, Guidance

Cogdell Spencer Inc.'s CSA core earnings were ahead of Citi driven by lower opex and higher design build income, “but 2011 guidance is below street ests.,” Citi reports.

“A significant goodwill impairment relating to Erdman reduces the carrying value to zero, less than three years after CSA paid $247m for the company,” Citi writes.

“With significant acquisition activity taking place in the healthcare space in recent months, CSA is left waiting for a buyer. The company's ‘Strategic Plan' has been completed and approved, but no details have been provided.”

Cogdell Spencer Inc. closed Thursday at $6.71.