ATLANTA, June 1, 2005 (PRIMEZONE) -- Roberts Realty Investors, Inc. (AMEX:RPI) announces it sold its 319-unit Ballantyne Place apartment community located in Charlotte, North Carolina to Post Properties, Inc. (NYSE:PPS). The sales price was $37,250,000, with the buyer paying an additional $690,000 to reimburse the company for a previously paid loan commitment fee, resulting in a total price of $37,940,000 or $118,934 per apartment unit. Mr. Charles S. Roberts, the company's President and CEO, stated:"To the best of my knowledge, this is a record price for suburban garden apartments in Charlotte."
The company intends to redeploy the $37,250,000 of debt and equity either into the acquisition of new properties in Atlanta or south Florida as part of a Section 1031 tax-deferred exchange or into working capital to fund its Atlanta development and construction program. Mr. Roberts stated:"We currently have 868 units in various phases of development, consisting of 220 apartment homes on Northridge Parkway, 292 apartment homes on Peachtree Parkway, and 236 apartment homes and 120 condominiums on Peachtree Dunwoody Road, all in metropolitan Atlanta. We believe we will create greater shareholder value and produce a higher return on our invested equity by acquiring new properties in Atlanta or south Florida, as we have in the past, and continuing our Atlanta development and construction program."
The company has experienced negative operating cash flow as a result of selling seven appreciated communities totaling 1,479 units in 2003 and 2004 while making distributions to shareholders of $5.05 per share. Mr. Roberts added: "As previously announced, we expect the negative operating cash flow to continue through the end of 2006 and until our new communities are constructed and leased. As a result, we do not intend to pay distributions to shareholders in 2005 or 2006."
Roberts Realty Investors, Inc. invests in multi-family residential and retail properties in Atlanta and south Florida as a self-administered, self-managed equity real estate investment trust.
This press release contains forward-looking statements within the meaning of the securities laws. Although the company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, the company's actual results could differ materially from those anticipated in the forward-looking statements. Certain factors that might cause such a difference include, but are not limited to, the following: the company may not be able to accomplish its plans to develop apartments and condominiums; market and economic conditions being unfavorable for the development of residential space; increased competition; construction risks; the lack of construction and permanent debt financing, or the availability of such financing on unfavorable terms, as and when such financing is required; and Roberts Realty may be required to make distributions to maintain its status as a REIT for federal income tax purposes. For more information about other risks and uncertainties Roberts Realty faces, please see the section in Roberts Realty's most recent quarterly report on Form 10-Q entitled Management's Discussion and Analysis of Financial Conditions and Results of Operations - Disclosure Regarding Forward-Looking Statements.