DALLAS, August 14, 2000 (PRIMEZONE) -- American Realty Trust, Inc. (NYSE:ARB) announced Monday that decreased total income and higher total expenses produced second quarter and six month net losses of $1.4 million and $7.7 million, or $.13 and $.71 per share, on revenues of $44.4 million and $89.9 million respectively, as compared to $381,000 net income and a $9.3 million net loss, or $.04 per share net income and $.87 per share net loss on revenues of $56.1 million and $100.9 million respectively, in the same periods in 1999. The six month 2000 loss was a $1.7 million improvement in net income over 1999.
Details of income are as follows:
-- Rental incomes decreased to $35.4 million and $70.5 million in
the second quarter and six months of 2000, from $41.6 million and
$81.9 million in the same periods in 1999. The decline is mostly
due to the 14 apartments sold in 1999, partially offset by higher
commercial property and hotel rents.
-- Interest and other income decreased to $578,000 and $3.1 million
from $6.6 million and $4.1 million for same periods in 1999 due
to the collection of mortgage notes receivables and their related
maturity in 2000, as well as unrealized decreases in market value
of ART's trading portfolio.
-- Pizza parlor sales increased to $8.4 million and $16.3 million
from $7.8 million and $15 million as a result of aggressive
marketing and due to cheese prices returning to historic levels.
Cost of sales increased to $6.9 million and $13.3 million from
$6.6 million and $12.8 million in 1999. Total expenses for the
second quarter increased to $71.5 million and decreased in the
six months 2000 to $134.9 million from $69.7 million and $137
million for the 1999 comparable period.
-- Property operations expenses decreased to $22.7 million and $46.7
million for the three and six months ended June 30, 2000, from
$25.5 million and $53.4 million in the same periods in 1999 due
to the sale of land and income-producing properties in 1999 and
2000. The decrease was partially offset by increases in
commercial property and hotel expenses.
-- Interest expenses decreased to $20.4 million and $40.6 million
from $24.4 million and $45.4 million in 1999, due to
income-producing property and land sales.
-- Depreciation, general and administrative expenses and advisory
fees for the six months approximate those of the 1999 periods.
Total gains on the sale of real estate rose to $33.1 million and $51.7 million on the sale of five apartments, one office building, a shopping center and 11 land tracts, up from $21.2 million and $38.7 million in second quarter 1999. Land sales accounted for gains of $1.1 million and $3.5 million in the three and six months ended June 30, 2000, from $6.4 million and $11.4 million in 1999, on decreased sales of $5.8 million and $19 million as compared to $33.3 million and $41.7 million in 1999. Costs associated with the sales fell to $4.7 million and $15.4 million from $26.9 million and $30.3 million in 1999.
Equity in income of investees in the second quarter and six months 2000 decreased to $94,000 and $296,000 from $4.1 million and $3.4 million in 1999. The decrease was attributable to losses associated with the sale of Transcontinental Realty Investors, Inc. (NYSE:TCI) and Income Opportunity Realty Investors, Inc. (AMEX:IOT) stock during the second quarter.
Minority interests increased to $17.9 million and $27.3 million for the three and six months 2000 from $6.9 million and $15.4 million in 1999. The increase is attributable to the increased earnings of National Realty, L.P. (AMEX:NLP).
American Realty Trust, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers, and developed and undeveloped land. ART has combined with National Realty, L.P. under ownership of a new company named American Realty Investors, Inc. (NYSE:ARL). The transaction closed on August 2, 2000. NLP unitholders and ART shareholders have received, in a tax-free exchange, shares of ARI's common stock. Each NLP unit exchanged for one ARI common share. Each American Realty Trust common share exchanged for 0.91 ARI common share. For more information on ARI, go to American Realty Web site at www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Income from rents $ 35,424 $ 41,623 $ 70,503 $ 81,865
Expense from
operations 22,710 25,523 46,675 53,401
Operating income 12,714 16,100 23,828 28,464
Land sales $ 5,760 $ 33,260 $ 18,953 $ 41,724
Cost of sales 4,698 26,904 15,442 30,345
Gain on land sales 1,062 6,356 3,511 11,379
Pizza sales $ 8,392 $ 7,829 $ 16,264 $ 14,953
Cost of sales 6,852 6,624 13,340 12,798
Gross margin 1,540 1,205 2,924 2,155
Income from
operations $ 15,316 $ 23,661 $ 30,263 $ 41,998
Other income 578 6,637 3,121 4,054
Other expense 48,836 44,194 88,203 83,568
Gain on sale of
real estate 32,078 14,845 48,232 27,338
Net income (loss) $ (864) $ 949 $ (6,587) $ (8,178)
Preferred dividend
requirement (563) (568) (1,071) (1,134)
Net income (loss)
applicable to
Common shares $ (1,427) $ 381 $ (7,658) $ (9,312)
Earnings Per Share
Net income (loss) $ (.13) $ .04 $ (.71) $ (.87)
Weighted average
common shares
used to compute
earnings per
share 10,716,533 10,759,166 10,738,003 10,750,790