ASR Investments Corp. announces completion of acquisitions and conversion to self-administered and self-managed REIT.TUCSON, Ariz.--(BUSINESS WIRE)--May 15, 1997--ASR Investments Corp. (AMEX AMEX See: American Stock Exchange :ASR (Automatic Speech Recognition) Using voice recognition to replace keypad entry for telephone voice menus. Typically used to speak the digits 0 through 9 insted of keying them, ASR systems may be able to recognize a limited vocabulary. See voice recognition and AVSR. ), an apartment REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , announced Thursday that it has completed (i) the acquisitions approved by the shareholders on April 23, 1997, (ii) the acquisitions of two apartment communities and (iii) the acquisition and sale of the company's interest in the joint ventures. On April 30, 1997, the company completed the acquisition of 13 apartment communities (2,260 units) and one office building as well as the related property management company. The total purchase price of the properties is approximately $83,223,000. The company (i) assumed or refinanced first mortgage loans totalling $49,396,000, (ii) issued 683,626 shares of common stock, (iii) issued operating partnership units that will be convertible to 942,184 shares of common stock after one year, and (iv) paid the sellers $1.25 million for transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . In addition, the company issued to Don Winton, the general partner of the sellers of the properties, 70,284 shares to acquire the property management company. Winton has been appointed as a member of the board of directors and an executive officer of the company. As a part of the transactions approved by the shareholders, the company completed the acquisition of the entire interests in Pima Mortgage L.P. and Pima Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Advisors Inc. by issuing 262,008 shares of common stock. As a result, the company has become a self-administered and self-managed REIT. Jon Grove, Frank Parise Jr. and Joseph Chan, owners of the Pima entities, continue as board members and executive officers of the company. The cost of the acquisition of $5.25 million is assigned to the contracts between the company and the Pima entities. As the contracts are effectively terminated, the cost is charged to income as contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). expenses in the second quarter of 1997. This charge is a non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) and does not reduce the cash provided by operating activities or the company's ability to pay dividends. The company has also completed the acquisition of London Park Apartments, a 257-unit community in Houston, for $6 million ($23,346 per unit) and The Court Apartments, a 176-unit community in Seattle for $4,059,000 ($23,062 per unit). The company plans to invest $1 million in capital improvements in these two communities to improve the rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time . The company obtained two new mortgage loans totalling $7.3 million with an average fixed interest rate of 8.61 percent. The company issued 187,850 shares of common stock for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $3.4 million to finance the cash portion of the acquisition costs. The company has also completed the acquisition of the entire interests held by its partner in the La Privada Apartments L.L.C. for $8,233,000 and the sale to its partner of the company's entire interests in the other five joint ventures for total net proceeds of $2,062,000. The company obtained a $3 million loan to pay for the acquisition. The La Privada Apartments is a 350-unit luxury community in Scottsdale, Ariz. ASR currently owns 36 apartment communities (6,347 units) and an office building located in Phoenix, Tucson, Dallas, Houston, Seattle, Pullman Pullman. 1 Former town, since 1889 part of Chicago, Ill. It was founded in 1880 by George M. Pullman as a model community for workers of his sleeping-car company; all property was company owned, and administration policies were paternalistic. , Wash., and Albuquerque, N.M. With these acquisitions, the company has accomplished its strategic goal of converting to an apartment REIT with its apartment portfolio generating substantially all of the company's funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. . The company continues to explore opportunities to issue additional equity to acquire apartment communities. Below are certain current financial data of the company: -0- Total costs of real estate properties $217,000,000 Total real estate borrowing $140,000,000 Shares of common stock outstanding 4,437,419 Shares issuable upon conversion of all operating units 942,184 CONTACT: ASR Investments Corp., Tucson Joseph C. Chan, 520/748-2111 |
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