DALLAS, May 15, 2000 (PRIMEZONE) -- American Realty Trust, Inc. (NYSE:ARB) Monday announced that higher pizza sales and interest income, decreased property operations expenses and gains on sales of real estate produced an improved first quarter 2000 net loss of $5.7 million, or $.58 per share, on revenue of $45.2 million, as compared to net loss of $9.1 million, or $.90 per share, on revenue of $46.8 million for the first quarter of 1999.
Total revenue for the first three months of 2000 decreased by $1.6 million from the comparable period in 1999, primarily due to decreased rental income as a result of the sale of 14 apartments in 1999.
-- Income from rents was $35.1 million in the first quarter of 2000,
compared to $40.2 million in the same period in 1999. The decline
was partially offset by higher commercial property rents
attributable to the purchase of a California office building in
1999.
-- Other income for the first quarter of 2000 increased to $101,000,
from a loss of $1.7 million for same period in 1999, due to a
lower unrealized decrease in market value of ART's trading
portfolio of $27,000, as compared to $1.8 million in 1999.
-- Pizza sales for the first quarter of 2000 increased to
$7.9 million from $7.1 million in first quarter 1999, due to
aggressive marketing and cheese prices returning to historic
levels from record highs. Cost of sales for the quarter
increased to $6.2 million, from $5.8 million in 1999.
-- Interest income increased to $2.2 million in the first quarter of
2000, from $1.9 million for the comparable period in 1999.
-- Sales of land in first quarter 2000 were $13.2 million, up from
$11.5 million in the period one year ago. Cost of the land sold
rose to $10.7 million, as compared to $6.4 million.
Total expenses for the three months ended March 31, 2000, increased to $80.6 million, from $73.4 million for the 1999 comparable period. Details of some of the increases are as follows:
-- Property operations expense decreased to $24 million for the three
months ended March 31, 2000, from $27.9 million in the same period
in 1999 due to the $5.7 million decrease in apartment operations
expense as the result of the sale of 14 apartments in 1999. The
decrease was partially offset by $1.2 million and $4.3 million
increases in commercial property and land operations expenses due
to the purchase of an office building and 11 land parcels in 1999.
-- Interest expense decreased to $20.2 million from $21.1 million in
1999, due to sales of 11 parcels of land and 14 apartments in
1999.
Gains from the sale of real estate, excluding land, totaled $16.2 million on the sale of apartments in the first quarter of 2000, up from $12.5 million in first quarter 1999.
Equity in income of investees in the first quarter of 2000 increased to $202,000, from a deficit of $725,000 for the first three months of 1999. The increase was due to gains on the sale of real estate realized by entities in which ART has equity interests.
As previously announced, ART shareholders and National Realty, L.P. (AMEX:NLP) limited partners approved their combination under ownership of a new company named American Realty Investors, Inc. In a tax-free exchange, ART holders will receive 0.91 shares of the new common stock for each common share of ART held and NLP unitholders will receive one share of the new company's common stock for each NLP unit held. The reorganization and exchange of shares is expected to occur in the second quarter when American Realty Investors, Inc. begins trading on the New York Stock Exchange under the symbol "ARL."
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. For more information on ART and the reorganization, go to www.amrealtytrust.com .
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended March 31,
2000 1999
Income from rents $ 35,079 $ 40,242
Expense from operations 23,956 27,878
Operating income 11,114 12,364
Land sales 13,193 11,464
Cost of sales 10,744 6,464
Gain on land sales 2,449 5,023
Pizza sales 7,872 7,124
Cost of sales 6,488 6,174
Gross margin 1,384 950
Income from operations 14,947 18,337
Other income (loss) 2,543 (583)
Other expense 39,367 39,374
Gain on sale of real estate 16,154 12,493
Net (loss) (5,723) (9,127)
Preferred dividend requirement (508) (566)
Net (loss) applicable to
Common shares $ (6,231) $ (9,693)
Earnings Per Share
Net (loss) $ (.58) $ (.90)
Weighted average common
shares used to compute
earnings per share 10,759,472 10,742,325