DALLAS, August 14, 2000 (PRIMEZONE) -- National Realty, L.P. (AMEX:NLP) announced Monday that reduced expenses and a gain on the sale of real estate produced second quarter and six month 2000 net incomes of $39 million and $61.2 million, or $6.04 and $9.48 per unit, on revenues of $21.1 million and $44 million, as compared to net incomes of $13.1 million and $31 million, or $2.02 and $4.80 per unit, on revenues of $27.9 million and $55.7 million in the same periods in 1999.
-- Second quarter and six month 2000 net income included $16.6
million and $33.6 million in rents and $4.5 million and $10.4
million in interest income as compared to $23.1 million and
$47.2 million in rents and $4.8 million and $8.6 million of
interest in 1999.
-- Gains on sales of six apartments and two commercial properties
of $37.5 million and $55.6 million were recognized in 2000 as
compared to $8.7 million and $24.4 million in the 1999 periods.
-- Operating income in 2000 declined to $7 million and $14.4
million from $10.7 million and $21.1 million in 1999.
-- Decreased rental, interest and operating incomes and the larger
gains were due to the sale of 22 income-producing properties in
1999 and 2000, but were partially offset by an increase in
rental rates at both the apartments and commercial properties.
Interest income decreases resulted from loans paid off or paid
down, loans converted to partnership interests and loans
foreclosed on during 1999 and 2000, partially offset by loans
funded and additional fundings on existing loans.
Total expenses decreased in second quarter and six months 2000 to $19.6 million and $38.5 million from $23.6 million and $49.1 million in 1999, which is attributable to 1999-2000 property sales. Property operations expense also declined to $9.6 million and $19.1 million from $12.5 million and $26.1 million. Depreciation, property taxes and insurance, utilities, property level payroll, repairs and maintenance and property management fees decreased. Interest expense fell to $6.6 million and $12.4 million, from $7 million and $14 million in 1999, mostly due to sales of properties subject to debt in 1999 and 2000. An incentive disposition fee of $561,000 was paid to NLP's general partner in the second quarter and six months 2000 related to two property sales; a $948,000 fee was paid in 1999.
National Realty, L.P., a national real estate investment partnership engaged in the acquisition, financing, operation, and sale of real estate and real estate assets, has combined with American Realty Trust, Inc. 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 unit and per unit data)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Income from rents $16,556 $23,130 $33,581 $47,155
Expense from
operations 9,571 12,451 19,144 26,050
Operating income 6,985 10,679 14,437 21,105
Other income 4,523 4,781 10,447 8,572
Other expense 10,053 11,141 19,328 23,085
Gain on sale of
real estate 37,515 8,738 55,598 24,405
31,985 2,378 46,717 9,892
Net income $38,970 $13,057 $61,154 $30,997
Earnings Per Unit
Net income $ 6.04 $ 2 .02 $ 9.48 $ 4 .80
Weighted average
units of limited
partner interest
used in computing
earnings per unit 6,320,701 6,321,529 6,321,112 6,321,538
CONTACT: Phyllis Wolper - Director, Investor Relations
(214) 692-4902
(800) 400-6407
investor.relations@bcminc.com