American Spectrum Realty Reports First Quarter Results; Net Income of $17.2 Million Generated; Rental Revenue Increased 12.3% for Quarter.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- 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 Spectrum 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. ("the Company") (AMEX AMEX See: American Stock Exchange :AQQ AQQ Annual Qualifications Questionnaire ), a real estate investment and management company located in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , announced today its results for the first quarter of 2006. Net income for the quarter ended March 31, 2006 was $17.2 million, or $12.37 per share, compared to a net loss of $199,000, or $.13 per share, for the first quarter of 2005. The net income recorded during the three months ended March 31, 2006 was primarily attributable to 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. of $19.3, which included a gain on the sale of three properties. The three sales consisted of the Company's two remaining properties located in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , an office and an industrial property. The third sale was an office property located in Palatine, Illinois
Rental revenue increased 12.3% for the quarter ended March 31, 2006 compared to the same quarter in the prior year. This increase was attributable to $484,000 in revenue generated from four office properties acquired during the quarter, in addition to $126,000 in higher revenues from properties owned on March 31, 2006 and March 31, 2005 ("Same Properties"). This increase in Same Properties revenue was primarily due to higher rental rates. The weighted average occupancy of properties held for investment by the Company was 87% at March 31, 2006 and March 31, 2005. 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 $11.3 million (net of debt repayments and sales costs) were generated as a result of the three first quarter sales. Approximately $4.3 million of these proceeds were used to assist with the funding of one of the Company's first quarter acquisitions. The Company acquired a total of four office properties during the first quarter of 2006. All four properties are located in Houston, Texas, one of the Company's core-markets. As of March 31, 2006, the Company had deposits of approximately $4.5 million held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. in which the Company anticipates the majority will be used as a source of funding for future acquisitions. Results for the first quarter 2006 and 2005 reflect the following non-cash items (in thousands). These amounts include non-cash items from discontinued operations, which are reported separately on the Company's consolidated statements of operations.
Three Months Ended
March 31,
2006 2005
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Non-Cash Charges:
Depreciation and amortization $2,536 $2,792
Minority interest 2,647 -
Deferred rental expense 11 -
Stock-based compensation 8 -
Deferred compensation expense - 19
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Total Non-Cash Charges 5,202 2,811
Non-Cash Items:
Amortization of loan premiums (114) (133)
Deferred rental income - (50)
Minority interest - (29)
Interest on receivable from principal stockholders - (13)
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Total Non-Cash Items (114) (225)
American Spectrum Realty, Inc. is a real estate investment and management company that owns 23 office, industrial and retail properties aggregating approximately 1.9 million square feet in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Texas, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians . Publicly traded on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. since November November: see month. 2001, American Spectrum Realty's business plan focuses on expansion of office and industrial property investments in California, Texas and Arizona. Certain matters discussed in this release are 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. that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company's past and current filings with the U.S. Securities and Exchange Commission.
- Financial Tables Follow -
AMERICAN SPECTRUM REALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
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2006 2005
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REVENUES:
Rental revenue $5,577 $4,967
Interest and other income 74 49
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Total revenues 5,651 5,016
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EXPENSES:
Property operating expense 2,496 1,962
General and administrative 920 920
Depreciation and amortization 2,461 2,032
Interest expense 2,185 2,248
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Total expenses 8,062 7,162
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Net loss before minority interest (2,411) (2,146)
Minority interest (share from continuing
operations) 321 29
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Net loss from continuing operations (2,090) (1,878)
Discontinued operations:
Loss from discontinued operations (65) (542)
Gain on sale of discontinued operations 22,349 2,460
Minority interest (2,968) (239)
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Income from discontinued operations 19,316 1,679
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Net income (loss) $17,226 $(199)
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Basic and diluted per share data:
Net loss from continuing operations $(1.50) $(1.25)
Income from discontinued operations 13.87 1.12
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Net income (loss) $12.37 $(0.13)
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Basic weighted average shares used 1,392,089 1,499,419
March 31, December
2006 31, 2005
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Real estate held for investment, net of
accumulated depreciation $162,136 $126,711
Cash 1,215 300
Total assets 183,256 169,185
Notes payable, net of premiums 141,812 114,543
Total liabilities 149,193 155,035
Total stockholders' equity 26,280 9,014
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