ATLANTA, April 25, 2005 (PRIMEZONE) -- Roberts Realty Investors, Inc. (AMEX:RPI) announces it closed a $21 million permanent loan on April 19, 2005 to refinance the 285-unit second phase of its Addison Place apartment community. The company used the new loan and $1.1 million of the company's working capital to pay off the existing $22.1 million loan.
Mr. Charles S. Roberts, the company's President and CEO, stated: "The new loan lowers the interest rate from 8.62% to 6.35%, is fixed for 10 years and will increase our cash flow from the property by approximately $500,000 per year. However, as previously announced, we will continue to operate at a loss at least through the second quarter of 2006 due to our sale in 2004 of 1,291 apartment units. We expect our negative cash flow to improve as we rebuild our portfolio by completing the development, construction and lease-up of the 748 apartment units and 120 condominium units we are developing on three parcels of land in the Atlanta area."
Roberts Realty Investors, Inc. invests in multi-family residential and retail properties in Atlanta, Charlotte and Palm Beach as a self-administered, self-managed equity real estate investment trust.
This press release contains forward-looking statements within the meaning of the securities laws. Although the company believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, the company's actual results could differ materially from those anticipated in the forward-looking statements. Certain factors that might cause such a difference include, but are not limited to, the following: occupancy rates and rents may continue to be adversely affected by local economic and market conditions in the company's markets in Atlanta and Charlotte; the company's markets may become overbuilt with multifamily apartments; construction costs of a new community may exceed original estimates; development, construction and lease-up of the company's new properties may not be completed on schedule; and financing for planned development and construction may not be available or, if available, may not be on favorable terms. For more information about some of these risks and uncertainties, please see the section in Roberts Realty's most recent report on Form 10-K entitled Management's Discussion and Analysis of Financial Condition and Results of Operations - Disclosure Regarding Forward-Looking Statements.