American Realty Investors, Inc. Reports Second Quarter 2007 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Please replace the release dated Aug. 15, 2007 with the following corrected version due to further multiple revisions. The corrected release reads: American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of 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. Investors, Inc. Reports Second Quarter 2007 Results American Realty Investors, Inc. (NYSE NYSE See: New York Stock Exchange : ARL ARL - ASSET Reuse Library ) (hereinafter here·in·af·ter adv. In a following part of this document, statement, or book. hereinafter Adverb Formal or law from this point on in this document, matter, or case Adv. 1. referred to as "ARI ARI Acute respiratory infection, see there " or "the Company"), a Dallas-based real estate investment company, announced today that the Company reported a net loss applicable to common shares of ($23.1) million or ($2.28) per share for the three months ended June 30, 2007 as compared to net income of $143,000 or $0.01 per share for the same period in 2006. For the six months ended June 30, 2007, the Company reported a net loss of ($32.1) million or ($3.17) per share, as compared to a net loss of ($8.5) million or ($0.84) per share for the same period in 2006. For the three and six month periods ended June 30, 2007, as compared to the same periods in 2006, higher operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from acquisitions and completed developments was generally offset by a) increased interest expense due to acquisitions and refinancings and b) lower gains from fewer land and income-producing property sales. For the three months ended June 30, 2007 ARI incurred a net loss of ($23.1) million for the three months ended June 30, 2007, including a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of ($2.2) million, as compared to net income of $143,000 for the three months ended June 30, 2006, including income from discontinued operations of $2.9 million and a gain on sale of land of $10.7 million. Fluctuations in this and other components of revenues and expense between the three month periods ended June 30, 2007 and 2006 are discussed below. Rents increased to $52.1 million in 2007 as compared to $43.1 million in 2006. The increase is due to additional 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 from the completion of new apartment construction projects and acquisitions of commercial properties, including the Company's January 2007 acquisition of the Parkwest I and II office buildings in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . Property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased to $33.7 million in 2007 as compared to $30.2 million in 2006 due to the completion of new apartment projects and acquisition of commercial properties. Depreciation and amortization increased to $7.6 million in 2007 as compared to $6.2 million in 2006 due to the completion of new construction projects in the current period as well as the acquisition of commercial properties in 2007. General and administrative expenses increased to $3.8 million in 2007 as compared to $1.9 million in 2006 due principally to a one-time receipt of 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. settlement proceeds in 2006. Mortgage and loan interest expense increased to $25.0 million in 2007 as compared to $19.2 million in 2006 due to an increase in mortgages payable related to acquisitions and refinancing Refinancing An extension and/or increase in amount of existing debt. of income-producing properties as well as land held for development. ARI recognized no gains from land sales in the three month period ended June 30, 2007. In 2006, the Company sold 226 acres of land in seven separate transactions, generating net cash proceeds of $14.6 million and recognized gains Recognized Gain The amount of gain reported for income tax purposes. Notes: You can defer recognizing some gains until the following year(s). See also: Capital Gain, Capital Loss, Deferred Income Tax, Drought Sale, Exempt Income, Exemption, Gain, Recognized Loss of $10.7 million. Income from discontinued operations swung to a net loss of ($2.2) million in 2007 from net income of $2.9 million in 2006. The decrease is primarily due to a loss on the sale of a single office building in 2007 compared to gains on the sale of two apartment projects in 2006. In 2007, ARI incurred a $2.4 million loss on the sale of an office building in Durham, North Carolina Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham CountyGR6 and is the fourth-largest city in the state by population. . In 2006, ARI sold two apartment properties in two separate transactions for sales prices totaling $9.2 million, generating $3.4 million in net cash proceeds and recognized gains of $3.3 million. For the six months ended June 30, 2007 ARI incurred a net loss of ($32.1) million for the six months ended June 30, 2007, including income from discontinued operations of $78,000 and gain on land sales of $4.9 million, as compared to a net loss of ($8.5) million for the six months ended June 30, 2006, net of income from discontinued operations of $2.5 million and a gain on sale of land of $13.4 million. Fluctuations in this and other components of revenues and expense between the six month periods ended June 30, 2007 and 2006 are discussed below. Rents increased to $103.2 million in 2007 as compared to $86.9 million in 2006. The increase is due to additional rental income from the completion of new apartment projects and the acquisition of commercial properties during 2007, including the Company's January 2007 acquisition of the Parkwest I and II office buildings located in Dallas, Texas. Property operating expenses increased to $66.2 million in 2007 as compared to $58.1 million in 2006 due to the completion of new apartment projects and acquisition of commercial properties. Depreciation and amortization increased to $14.4 million in 2007 as compared to $12.3 million in 2006 due to the completion of new apartment projects and the acquisition of commercial properties in 2007. General and administrative expenses increased to $8.5 million in 2007 as compared to $4.8 million in 2006 due to a one-time receipt of litigation settlement proceeds in 2006 along with increased legal expenses, consulting fees and other general expenses in 2007. Mortgage and loan interest expense increased to $50.4 million in 2007 as compared to $37.2 million in 2006 due to an increase in mortgages payable related to acquisitions and refinancing of income-producing properties as well as land held for development. Gain on land sales decreased to $4.9 million in 2007 as compared to $13.4 million in 2006. In 2007, the Company sold 42 acres in three separate transactions for sales prices totaling $9.6 million, generating net cash proceeds of $2.5 million and recognized gains of $4.9 million. In 2006, ARI sold 238 acres in nine separate transactions for sales prices totaling $40.9 million, generating net cash proceeds of $16.4 million and recognized gains of $13.4 million. Income from discontinued operations decreased to $78,000 in 2007 from $2.5 million in 2006 due principally to lower gains on fewer sales of income-producing properties in 2007 as compared to 2006. In 2007, the Company sold two apartment projects in two separate transactions for sales prices totaling $28.8 million, generating net cash proceeds of $4.2 million and recognized gains of $4.4 million. These gains were offset by the $2.4 million loss on the sale of an office building in Durham, North Carolina as described above. In 2006, ARI sold two apartment properties in two separate transactions for sales prices totaling $9.2 million, generating net cash proceeds of $3.4 million and recognized gains of $3.3 million. For the six month period ended June 30, 2007, ARI acquired over $112 million in income-producing properties, $14 million in land held for development and invested almost $92 million in residential and other development projects. These investments were financed principally with $107 million of acquisition-related debt, $84 million in construction and development financing, proceeds from land and income-producing property sales of $10 million, 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). from the refinancing of existing debt and advances from affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . About American Realty Investors, Inc. American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, 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 developed and undeveloped land. For more information, go to ARI's web site at www.amrealtytrust.com. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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