Aegis Realty, Inc. Reports 2001 Fourth Quarter and Year-End Financial Results.Business Editors/Real Estate Writers NEW YORK--(BUSINESS WIRE)--March 27, 2002 Aegis 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. , Inc. (AMEX AMEX See: American Stock Exchange :AER), a real estate investment trust, today announced financial results for its fourth quarter and year ended December 31, 2001. Financial Highlights Aegis Realty's present quarterly dividend on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis is $0.96 per share, representing an 8.7% yield on the $11.06 per share closing price on March 26, 2002. Aegis Realty had total revenues for the three and twelve months ended December 31, 2001 of approximately $6.6 million and $26.1 million, respectively, representing a decrease of 2.5% and 0.3% as compared to the three and twelve month period ended December 31, 2000. Net (loss) income for the three and twelve months ended December 31, 2001 was approximately $(1.0 million) and $274,000, respectively. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis, net (loss) income was $(0.13) and $0.03 for the three and twelve months ended December 31, 2001, respectively, as compared to net income per share of $0.17 and $0.69 for the three and twelve months ended December 31, 2000. The decrease in net income for the year is primarily due to a non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss of $2.5 million on White Oaks Plaza Shopping Center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into and the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $2.8 million in costs primarily associated with the acquisition of P.O'B Montgomery. The decrease in annual revenues in 2001 from 2000 is primarily attributable to a large early lease termination payment of $500,000 in 2000 and a full year's receipt of interest on a mortgage loan receivable during 2000 which was subsequently sold in April 2001 and thus did not contribute to revenues for the remaining months of 2001. Revenues from the operations of the retail property portfolio, which includes base 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 and tenant reimbursements (and excluding early lease termination revenues), increased 1.3%. For the three and twelve months ended December 31, 2001, Aegis Realty had 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. ("FFO FFO See: Funds from operations "), the REIT's primary indicator of economic performance, of approximately $2.8 million and $8.3 million, respectively, representing an increase of 1.4% and a decrease of 24.2% compared to FFO of approximately $2.7 million and $11.0 million for the three and twelve months ended December 31, 2000. On a diluted per share basis, FFO was $0.34 and $1.03 for the three and twelve months ended December 31, 2001, respectively, representing an increase of 1.2% and a decrease of 24.2% compared to the three and twelve months ended December 31, 2000, respectively. The decrease in FFO for the twelve months of 2001 is primarily due to the write-off of costs associated with the terminated acquisition of P.O'B Montgomery & Company. Adjusted pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income which excludes the effects of early lease termination payment revenues, the impairment loss, gains and losses on sale of real estate and terminated 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). were approximately $5.6 million for 2001 ($0.70 per share) as compared to $5.5 million for 2000 ($0.69 per share), approximately a 2.0% increase. Adjusted pro forma FFO which excludes early termination payment revenues and terminated transaction costs was approximately $11.2 million for 2001 ($1.39 per share) as compared to $10.5 million for 2000 ($1.30 per share), approximately a 6.4% increase. About the Company Aegis Realty, a geographically diversified diversified (di·verˑ·s real estate investment trust, has property holdings in 15 states. The Company's current portfolio includes direct or indirect interests in 28 neighborhood shopping centers and two garden apartment complexes. Aegis Realty is currently seeking retail acquisitions throughout the continental United States United States territory, including the adjacent territorial waters, located within North America between Canada and Mexico. Also called CONUS. .
AEGIS REALTY, INC.
Actual Financial Performance
Three Months Ended Twelve Months Ended
12/31/01 12/31/00 12/31/01 12/31/00
----------- ----------- ----------- -----------
Rental Income $ 5,032,951 $ 4,909,030 $19,983,396 $19,956,353
Tenant
Reimbursements 1,405,245 1,282,848 4,970,870 4,674,235
Early lease
termination
payments - 350,185 16,760 500,162
Income from
equity
investments 37,624 94,778 243,005 376,903
Interest and
other income 98,708 108,953 885,730 659,617
----------- ----------- ----------- -----------
Total
revenues 6,574,528 6,745,794 26,099,761 26,167,270
----------- ----------- ----------- -----------
Operating
expenses 1,940,985 1,959,826 7,151,280 7,196,422
Interest 927,900 1,304,233 4,428,429 4,950,058
General and
Administrative 520,414 464,592 1,945,503 1,917,587
Depreciation
and
Amortization 1,513,562 1,361,757 5,995,152 5,186,493
Terminated
transaction
costs 56,492 - 2,846,804 -
Loss on
impairment
of asset 2,500,000 - 2,500,000 -
Other 233,155 168,995 930,871 896,557
----------- ----------- ----------- -----------
Total
expenses 7,692,508 5,259,403 25,798,039 20,147,117
----------- ----------- ----------- -----------
Gain on sale of
real estate - - - 108,332
----------- ----------- ----------- -----------
(Loss) Income
before
minority
interest (1,117,980) 1,486,391 301,722 6,128,485
Minority
interest
in OP 96,548 (129,023) (27,831) (535,490)
----------- ----------- ----------- -----------
Net (Loss)
Income $(1,021,432) $ 1,357,368 $ 273,891 $ 5,592,995
=========== =========== =========== ===========
Calculation of
FFO and FAD
(unaudited)
(Loss) Income
before
minority
interest $(1,117,980) $ 1,486,391 $ 301,722 $ 6,128,485
Loss on
impairment
of property 2,500,000 - 2,500,000 -
Gain on sale
of real estate - - - (108,332)
Depreciation
and
amortization
of real
property 1,327,450 1,187,416 5,281,788 4,718,128
Depreciation
and
amortization
from equity
investment 60,785 59,175 243,130 242,583
----------- ----------- ----------- -----------
Funds from
Operations
("FFO")(A) $ 2,770,255 $ 2,732,982 $ 8,326,640 $10,980,864
Amortization
of deferred
financing
costs 196,879 188,706 760,549 525,513
Principal
payments
received on
mortgage loans - 9,158 3,217,220 35,439
Straight-lining
of property
rentals
for rent
escalations (47,962) (59,537) (82,829) (241,592)
Improvements to
real estate (1,199,320) (1,409,384) (3,499,851) (6,198,584)
Principal
payments on
notes payable (81,395) (74,869) (325,006) (296,865)
Leasing
commissions (292,200) (567,125) (918,112) (1,395,929)
----------- ----------- ----------- -----------
Funds
available for
Distribution
("FAD")(B) $ 1,346,257 $ 819,931 $ 7,478,611 $ 3,408,846
----------- ----------- ----------- -----------
Adjusted Pro Forma Information
Three Months Ended Twelve Months Ended
12/31/01 12/31/00 12/31/01 12/31/00
----------- ----------- ----------- -----------
(Loss) Income
before
minority
interest $(1,117,980) $ 1,486,391 $ 301,722 $ 6,128,485
Pro forma
adjustment of
unusual items:
Early lease
termination
payments - (350,185) (16,760) (500,162)
Terminated
transaction
costs 56,492 - 2,846,804 -
Loss on
impairment
of asset 2,500,000 - 2,500,000 -
Gain on sale
of real estate - - - (108,332)
----------- ----------- ----------- -----------
Adjusted pro
forma income
before
minority
interest $ 1,438,512 $ 1,136,206 $ 5,631,766 $ 5,519,991
=========== =========== =========== ===========
FFO $ 2,770,255 $ 2,732,982 $ 8,326,640 $10,980,864
Pro forma
adjustment
of unusual
items:
Early lease
termination
payments - (350,185) (16,760) (500,162)
Terminated
transaction
costs 56,492 - 2,846,804 -
----------- ----------- ----------- -----------
Adjusted pro
forma FFO $ 2,826,747 $ 2,382,797 $11,156,684 $10,480,702
----------- ----------- ----------- -----------
FAD $ 1,346,257 $ 819,931 $ 7,478,611 $ 3,408,846
Pro forma
adjustment of
unusual Items:
Early lease
termination
payments - (350,185) (16,760) (500,162)
Terminated
transaction
costs 56,492 - 2,846,804 -
----------- ----------- ----------- -----------
Adjusted pro
forma FAD $ 1,402,749 $ 469,746 $10,308,655 $ 2,908,684
----------- ----------- ----------- -----------
Pro forma adjustment of unusual items include revenue and expense
items which management believes are unusual based on the current
business plan and operations of the Company.
Three Months Ended Twelve Months Ended
12/31/01 12/31/00 12/31/01 12/31/00
----------- ----------- ----------- -----------
Per Share:
Net Income
(basic and
diluted) (0.13) 0.17 0.03 0.69
Funds From
Operations
(basic and
diluted)(A) 0.34 0.34 1.03 1.36
Funds Available
for
Distribution
(basic and
diluted)(B) 0.17 0.10 0.93 0.42
(A) Funds from operations is defined, as suggested by the NAREIT NAREIT National Association of Real Estate Investment Trusts Board of Governors, as follows: net income (computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ), excluding gains (or losses) from debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: and sales of property, plus depreciation and amortization and including funds from operations for unconsolidated joint ventures calculated on the same basis. (B) Funds available for distribution ("FAD FAD - ["FAD, A Simple and Powerful Database Language", F. Bancilon et al, Proc 13th Intl Conf on VLDB, Brighton, England, Sep 1987]. ") represents FFO plus recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. principal receipts from mortgage loans less reserves for lease commissions, capital expenditures (excluding property acquisitions) and debt principal amortization. Neither FFO nor FAD should be considered an alternative to net income as a measure of the Company's financial performance or to cash flow from operating activities (computed in accordance with generally accepted accounting principles) as a measure of the Company's liquidity, nor are they necessarily indicative of sufficient cash flow to fund all of the Company's needs. Certain items in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. and as such may involve known and unknown risks, trends, uncertainties and other factors which may cause the actual results, performance or achievements express or implied by such forward-looking statements. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for shopping center properties; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs operating costs npl → gastos mpl operacionales may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , current reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Such forward-looking statements speak only as of the date of this report. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Company's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statement is based. |
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