DALLAS, Aug. 16, 1999 (PRIMEZONE) -- American Realty Trust, Inc. (NYSE:ARB) Monday announced net income of $949,000, or $.04 per share, and a net loss of $8.2 million, or $.87 per share, on revenues of $52 million and $99.5 million for the three and six months ended June 30, 1999, compared to net income of $14.8 million, or $1.38 per share, and $5.7 million, or $.53 per share, on revenues of $22.7 million and $40.9 million for comparable periods in 1998.
-- Rental income increased to $41.6 million and $81.9 million in the three and six months ended June 30, 1999, from $15.7 million and 27.3 million in the same periods in 1998. Of the increases in rents from commercial properties, hotels and apartments, most are attributable to the 36 apartments ART acquired in 1998, as well as the January 1, 1999, consolidation of National Realty, L.P. (ASE: NLP) operations into those of American Realty Trust.
-- Interest income increased to $1.8 million and $3.7 million in the three and six months ended June 30, 1999, from $16,000 and $154,000 for the comparable periods in 1998. The $1.1 million increase is from loans funded by NLP in 1998.
-- Pizza sales and cost of sales increased in 1999. Second quarter 1999 sales and costs of sales rose to $7.8 million and $6.6 million, from $7.3 million and $6.2 million in second quarter 1998. Similarly, sales and cost of sales grew to $15 million and $12.8 million for the first six months of 1999, compared to $14 million and $12 million in 1998. The growth in sales is attributable to aggressive marketing, which was partially offset by record high cheese prices in January 1999 that returned to more historic levels in February.
-- Other income increased to $670,000 for the three months and a loss of $1 million for the six months ended June 30, 1999, from losses of $399,000 and $608,000 for same periods in 1998. The losses were due to an unrealized decrease in the market value of American Realty's trading portfolio.
Total expenses, excluding cost of sales, for the three and six months ended June 30, 1999, increased to $69.7 million and $137 million, from $29.6 million and $53.6 million for the 1998 comparable period. Most increases were due to the acquisition of property and the consolidation of NLP in December 1998. Details of the increases are as follows:
-- Property operations expense increased to $25.5 million and $53.4 million for the three and six months ended June 30, 1999, from $11.5 million and $21.2 million in the same periods in 1998. The increases were attributable to the 36 apartments and 16 land parcels acquired by ART in 1998, and the consolidation of NLP.
-- Interest expense increased to $24.4 million and $45.5 million in the three and six months ended June 30, 1999, up from $11.5 million and $21.2 million in 1998. Of the increases, most were due to the consolidation of NLP and the acquisitions of land and apartments on a leveraged basis.
-- Depreciation increased to $4.5 million and $9 million in the three and six months ended June 30, 1999, compared to $1.7 million and $3 million in 1998. The increases were due to the acquisitions and the consolidation of NLP.
Gains on the sales of real estate of $21.2 million and $38.7 million were reported in the three and six months ended June 30, 1999, compared to $9 million for the first six months of 1998. ART realized gains of $18.8 million from apartment sales, $10.8 million on land sales and $7.9 million on hotel sales.
Equity in income of investees declined to income of $4.1 million and $3.4 million in the three and six months ended June 30, 1999, from income of $19 million and $21million in 1998. The decrease was due to the consolidation of NLP and the lack of gains on sales of real estate from entities in which ART has equity interests.
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. The company also has interests in mortgage loans and real estate-related entities.
FINANCIAL HIGHLIGHTS
(dollars in thousands,except share and per share data)
For the 3 months For the 6 months
ended June 30, ended June 30,
1999 1998 1999 1998
Revenue $ 51,968 $ 22,690 $ 99,476 $ 40,939
Expenses 76,341 35,830 149,767 65,574
Loss from
operations (24,373) (13,140) (50,291) (24,635)
Equity in income
of investees 4,121 18,943 3,396 21,330
Gain on sale
of real estate 21,201 8,974 38,717 8,974
Net income $ 949 $ 14,777 $ (8,178) $ 5,669
Preferred dividend
Requirement 568 (84) (1,134) (135)
Net income (loss) applicable
to common shares $ 381 $ 14,693 $ (9,312) $ 5,534
Earnings per share
Net income (loss) $ .04 $ 1.38 $ (.87) $ .53
Weighted average
Common shares used
to compute earnings
per share 10,759,166 10,732,266 10,750,790 10,724,507
CONTACT: Phyllis J. Wolper
Director, Investor Relations
(800) 400-6407
(214) 692-4902