National Realty Reports Second Quarter, Six Month Net Income


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