American Realty Investors, Inc. Reports Third Quarter 2006 Results.DALLAS -- American 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. (NYSE NYSE See: New York Stock Exchange :ARL ARL - ASSET Reuse Library ), a Dallas-based real estate investment company, announced today that the Company reported a net loss applicable to common share of $(5.5) million and $(14.0) million, or $(0.54) and $(1.38) per share, for the three and nine months ended September 30, 2006, compared to net income applicable to common shares of $15.4 million and $32.1 million, or $1.52 and $3.16 per share, for the same periods in 2005. The Company's financial results for the three and nine months ended September 30, 2006 were directly impacted by lower gains on land sales and lower gains on sales of operating properties, as compared to the same periods in 2005. Gain on land sales for the three and nine months ended September 30, 2006 was $4.5 million and $17.9 million, respectively, compared to $5.4 million and $34.5 million for the same periods in 2005. For 2006, the Company sold 254 acres in fourteen transactions at an average sales price of $193,000 per acre. In 2005, the Company sold 369 acres in 18 transactions at an average sales price of $208,000 per acre. The 2005 activity included the sale of 149 acres, all located in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , in seven separate transactions at an average sales price of $253,000 per acre. Interest expense increased to $19.0 million and $57.9 for the three and nine months ended September 30, 2006, compared to $16.3 million and $46.7 million for the same periods in 2005. The increase is due to additional debt incurred related to acquisitions and refinancings offset by debt retired from asset sales. Rising variable interest rates also contributed to the overall increase in interest expense. Income 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. was $2.2 million and $4.6 million for the three and nine months ended September 30, 2006, compared to $21.9 million and $35.2 million for the same periods in 2005. For the nine months ended September 30, 2006, the Company sold four apartment projects containing 545 units for an average sales price of $28,000 per unit, and no commercial properties. For the same period in 2005, the Company sold five apartment projects containing 1,312 units for an average sales price of $33,000 per unit, and five commercial projects containing 412,000 square feet at an average sales price of $89 per square foot. 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] Series A Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". (3,389,876 and 3,390,913 shares of Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into common stock estimated to be 2,956,000 and 2,957,000 common shares for September 30, 2006 and 2005, respectively) and options to purchase 70,750 shares of ARI's common stock were excluded from the computation of diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the three and nine months ended September 30, 2006, and for the three and nine months ended September 30, 2005, because the effect of their inclusion would be antidilutive. |
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