Aegis Realty, Inc. Reports 2002 Third Quarter Financial Results.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 8, 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 retail real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). "), today announced financial results for the third quarter ended September September: see month. 30, 2002. Financial Highlights For the three months ended September 30, 2002, 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 ") of approximately $3.0 million compared to FFO of approximately $2.2 million for the three months ended September 30, 2001. 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, FFO was $0.34 for the three months ended September 30, 2002, compared to FFO of $0.25 for the three months ended September 30, 2001. For the three months ended September 30, 2001, FFO was unusually low primarily due to 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 approximately $440,000 of costs associated with the termination of the proposed acquisition of P.O'B. Montgomery Montgomery, city, United States Montgomery, city (1990 pop. 187,106), state capital and seat of Montgomery co., E central Ala., near the head of navigation on the Alabama River just below the confluence of the Coosa and Tallapoosa rivers, and in the rich & Co. Adjusting for the write-off of these costs, FFO for the three months ended September 30, 2001, would have been approximately $2.6 million, or $0.30 per diluted share. FFO per share for the three months ended September 30, 2002, was 14.9% greater than FFO per share for the three months ended September 30, 2001, adjusted for the write-off. Aegis Realty had total revenues for the three months ended September 30, 2002, of approximately $6.6 million, representing an increase of 4.3% as compared to total revenues of approximately $6.3 million for the three months ended September 30, 2001. Net income for the three months ended September 30, 2002, was approximately $1.4 million as compared to net income of approximately $722,000 for the three months ended September 30, 2001. On a diluted per share basis, net income per share was $0.17 for the three months ended September 30, 2002, compared to net income per share of $0.09 for the three months ended September 30, 2001. Net income and net income per share for the three months ended September 30, 2001, adjusted with respect to the above-mentioned transaction, would have been approximately $1.1 million, or $0.14 per diluted share. Therefore, net income per share for the three months ended September 30, 2002, was 21.4% greater than net income per share for the three months ended September 30, 2001, adjusted for the write-off. 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 8.97% yield on the $10.70 per share closing price on November 7, 2002. The quarterly dividend represents an FFO payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. for the third quarter of 2002 of 70.2% per share. Robertson Stephens Bankers Hired by RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
As previously announced, Aegis Realty had retained Robertson Stephens, Inc. as an investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and to pursue the potential sale of the Company or its assets. Following Fleet Boston Financial Corporation's decision to wind down the investment banking operations of Robertson Stephens, the team assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to Aegis Realty was hired by RBC Capital Markets in October. Subsequently, the team will continue their assignment at RBC Capital Markets. Leasing Overview During the third quarter of 2002, Aegis Realty signed 25 new leases and renewed an additional 23 leases, adding over 55,000 square feet of gross leasable area Gross leasable area (GLA) in the retail development industry is a term applied to shopping malls, lifestyle centers, outlet malls and other retail centers to indicate the amount of floor space available to be rented. ("GLA") through new tenants and renewing an additional 138,000 square feet of GLA from existing tenants. Management Conference Call Management will conduct a conference call today to review the Company's third quarter financial results for the period ended September 30, 2002. The conference call is scheduled for 11:00 a.m. Eastern Time. Investors, brokers, analysts, and stockholders wishing to participate should call (800) 289-0438. For interested individuals unable to join the conference call, replay of the call will be available through Wednesday, November 13, 2002, at (888) 203-1112 (Passcode 285695). 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 portfolio includes direct or indirect interests in 28 neighborhood shopping centers 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 two garden apartment complexes. For more information, please contact the Shareholder Services Department directly at (800) 831-4826.
AEGIS REALTY, INC.
(Unaudited)
(Dollars in thousands except per share amounts)
Three Months Three Months
Ended 9/30/02 Ended 9/30/01
------------- -------------
Total Revenues $ 6,552 $ 6,281
Depreciation and Amortization (1,659) (1,512)
Other Operating Expenses (3,713) (3,977)
Gain on sale of real estate 327 --
------------- -------------
Net Income before Minority Interest 1,507 792
Minority Interest in income of the
Operating Partnership (134) (70)
------------- -------------
Net Income $ 1,373 $ 722
============= =============
Net Income before Minority Interest $ 1,507 $ 792
Depreciation and Amortization of
Real Property 1,446 1,332
Depreciation and Amortization
from Equity Investments 61 61
------------- -------------
Funds From Operations ("FFO") (A) 3,014 2,185
Amortization of Deferred
Financing Costs 223 191
Straight-Lining of Property Rentals
for Rent Escalations (18) (24)
Improvements to Real Estate (639) (701)
Principal Repayments on Notes Payable (87) (80)
Leasing Commissions and Costs (803) (373)
------------- -------------
Funds Available for Distribution
("FAD") (B) $ 1,690 $ 1,198
============= =============
Weighted Average Common Shares
and OP Units Outstanding:
Basic 8,819,911 8,817,496
Diluted 8,821,095 8,823,635
Net Income per Common Share
Basic $ 0.17 $ 0.09
============= =============
Diluted $ 0.17 $ 0.09
============= =============
Per Weighted Average Share and
OP Unit
FFO
Basic $ 0.34 $ 0.25
============= ==============
Diluted (A) $ 0.34 $ 0.25
============= ==============
FAD
Basic $ 0.19 $ 0.14
============= =============
Diluted (B) $ 0.19 $ 0.14
============= =============
(A) Funds From Operations ("FFO") is defined, as suggested by the
NAREIT Board of Governors, as follows: net income (computed in
accordance with generally accepted accounting principles),
excluding gains (or losses) from debt restructuring 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") represents FFO plus
recurring 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 Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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. Such forward-looking statements speak only as of the date of this press release. Aegis Realty expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in Aegis Realty'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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