Berkshire Income Realty Announces First Quarter FFO of $2,634,288.BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. -- Berkshire Berkshire (bärk`shĭr, –shər, bûrk`–) or Berks (bärks, bûrks), former county, S central England. Income 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 : "BIR BIR British Institute of Radiology BIR Bureau of Internal Revenue BIR Bureau of International Recycling BIR Baculovirus IAP Repeat BIR Biomedical Imaging Resource BIR Bureau of Intelligence and Research (US State Department) _pa"), (AMEX: "BIRPRA"), (AMEX: "BIR.PR.A"), (AMEX: "BIR-A") ("Berkshire" or the "Company") reported its results for the quarter ended March 31, 2005. Financial highlights for the quarter ended March 31, 2005 include: - The Company's 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 ") for the quarter ended March 31, 2005 were $2,634,288 compared to $1,357,855 for the quarter ended March 31, 2004. - For the quarter ended March 31, 2005, Berkshire reported net income, before depreciation, of $2,621,990 as compared to net income, before depreciation, of $1,643,791 for the quarter ended March 31, 2004. - The Company continues to expand its portfolio: --On February February: see month. 15, 2005, the Company consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. the acquisition of the outstanding limited and general partner interests of BRI See ISDN. BRI - Basic Rate Interface Westchester Limited Partnership, the fee simple owner of Westchester West Apartments, a 345 unit multifamily apartment community located in Silver Spring, Maryland Not to be confused with Silver Springs. Silver Spring is an urbanized, unincorporated area in Montgomery County, Maryland, USA. After Baltimore and Columbia, Silver Spring is the third most populous Census Designated Place in Maryland. , from an affiliate of the Company. --On March 1, 2005, the Company consummated the acquisition of 100% of the fee simple interest of Waters on Brompton, a 362 unit multifamily apartment community 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 , from an unaffiliated third party. The acquisition was consummated pursuant to a winning bid placed on the property at foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. auction. The Company will operate the property under the name Berkshires on Brompton Apartments. --On March 30, 2005, the Company completed the acquisition of 100% of the fee simple interest of Antilles Apartment Homes, a 324 unit multifamily apartment community located in Houston, Texas, from an unaffiliated third party. The Company will operate the Antilles property under the name Berkshires at Westchase Apartments. President and CFO See Chief Financial Officer. , David Quade comments, "We are pleased with the Company's first quarter 2005 operating results. Our Funds from Operations shows positive growth over the first quarter 2004 results, which we believe is indicative of the success of our acquisition strategy. We continue to see strength in our markets and our expectations for the future continue to be positive." Funds From Operations The Company has adopted the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts "). Management considers FFO to be an appropriate measure of performance of an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. . We calculate FFO by adjusting net income (loss) (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 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and adjustment for unconsolidated partnerships and ventures. Management believes that in order to facilitate a clear understanding of the historical operating results of the Company, FFO should be considered in conjunction with net income as presented in the financial statements included elsewhere herein. Management considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated Depreciated may refer to:
The Company's calculation of FFO may not be directly comparable to FFO reported by other REITs or similar real estate companies that have not adopted the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net loss and considered in addition to cash flows in accordance with GAAP, as presented in our financial statements. The following table presents a reconciliation of GAAP net loss to FFO for the three months ended March 31, 2005 and 2004:
Three Months ended
March 31,
2005 2004
------------ ------------
Net loss $(1,788,429) $(1,059,590)
Add:
Depreciation of real property 3,530,852 1,998,050
Minority interest in Operating Partnership - -
Minority interest in properties - 45,942
Amortization of acquired in-place leases
and tenant relationships 1,062,817 454,637
Equity in loss of Multifamily Venture 43,174 -
Funds from operations of Multifamily
Venture 97,382 -
Less:
Minority members share of Multifamily
Venture funds from operations (49,390) -
Minority interest in properties (201,914) -
Minority interest in properties share of
funds from Operations (60,204) (81,184)
------------ ------------
Funds from Operations $2,634,288 $1,357,855
============ ============
The Company The Company is a REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). whose objective is to acquire, operate, and rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. multifamily apartment communities. The Company currently owns interests in twenty-two such multifamily apartment communities, of which eight are located in the Baltimore/Washington, D.C. metropolitan area, four are located in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , three are located in Houston, Texas, two are located in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , one is located in Austin, Texas, two are located in the Chicago, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. area and two are located in the Ft. Lauderdale, Florida area. Forward Looking Statements With the exception of the historical information contained in this release, the matters described herein may contain 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 made pursuant to 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, including, without limitation, our belief that our FFO growth is indicative of the success of our acquisition strategy and our expectation that our future performance will continue to be positive. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, changes in economic conditions generally and the real estate and bond markets specifically, legislative/regulatory changes (including changes to laws governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the taxation of REITs, availability of capital, interest rates and interest rate spreads, changes in generally accepted accounting policies and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. applicable to REITs, those set forth in Part I, "Risk Factors" of the Company's Annual Report 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. for the fiscal year ended December 31, 2004 and other risks and uncertainties as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company assumes no obligation to update such information. Contact Information: Berkshire Income Realty, Inc. One Beacon Street One Beacon Street is a modern skyscraper in the Government Center neighborhood of Boston, Massachusetts. Built in 1971 and refurbished in 1991, it is Boston's 14th-tallest building, standing 507 feet (154 m) tall, and housing 37 floors. , Suite 1500 Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New 02108 Attention: Phil Darby Telephone: 1-617-574-8374 E-mail: phil.darby@berkshire-group.com Facsimile: 1-617-423-8919
BERKSHIRE INCOME REALTY, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, December 31,
2005 2004
------------- -------------
ASSETS
Multifamily apartment communities, net of
accumulated depreciation of $118,364,261
and $113,953,842, respectively $321,068,452 $260,554,434
Cash and cash equivalents 15,534,239 31,913,045
Cash restricted for tenant security
deposits 1,335,481 1,217,517
Replacement reserve escrow 2,171,603 2,157,952
Prepaid expenses and other assets 6,560,872 8,190,739
Investment in Mortgage Funds 7,072,009 10,167,693
Investment in Multifamily Venture 2,231,326 2,274,500
Acquired in place leases and tenant
relationships, net of accumulated
amortization of $2,785,245 and $1,722,428,
respectively 2,245,902 2,152,840
Deferred expenses, net of accumulated
amortization of $412,254 and $325,338,
respectively 2,718,702 2,476,779
------------- -------------
Total assets $360,938,586 $321,105,499
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $313,747,869 $268,716,955
Due to affiliates 1,737,228 1,862,822
Dividend and distributions payable 837,607 1,087,607
Accrued expenses and other liabilities 5,194,267 7,312,054
Tenant security deposits 1,723,910 1,468,397
------------- -------------
Total liabilities 323,240,881 280,447,835
------------- -------------
Commitments and Contingencies - -
Minority interest in properties 7,926,151 7,422,481
Minority interest in Operating Partnership - -
Stockholders' equity:
Series A 9% Cumulative Redeemable
Preferred Stock, no par value, $25
stated value, 5,000,000 shares
authorized, 2,978,110 shares issued and
outstanding at March 31, 2005 and
December 31, 2004, respectively 70,210,830 70,210,830
Class A common stock, $.01 par value,
5,000,000 shares authorized; 0 shares
issued and outstanding at March 31,
2005 and December 31, 2004,
respectively - -
Class B common stock, $.01 par value,
5,000,000 shares authorized; 1,283,313
issued and outstanding at March 31,
2005 and December 31, 2004,
respectively 12,833 12,833
Excess stock, $.01 par value, 15,000,000
shares authorized, 0 shares issued and
outstanding at March 31, 2005 and
December 31, 2004 respectively - -
Accumulated deficit (40,452,109) (36,988,480)
------------- -------------
Total stockholders' equity 29,771,554 33,235,183
------------- -------------
Total liabilities and stockholders'
equity $360,938,586 $321,105,499
============= =============
BERKSHIRE INCOME REALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended
March 31,
-------------------------
2005 2004
------------ ------------
Revenue:
Rental $13,692,514 $8,832,565
Interest 105,554 251,818
Utility reimbursement 214,698 135,734
Other 503,394 342,997
------------ ------------
Total revenue 14,516,160 9,563,114
------------ ------------
Expenses:
Operating 3,756,976 2,457,112
Maintenance 913,011 594,686
Real estate taxes 1,624,609 1,073,682
General and administrative 867,662 349,134
Management fees 975,218 621,494
Depreciation 4,410,419 2,703,381
Interest 3,938,656 2,699,803
Amortization of acquired in-place leases
and tenant relationships 1,062,817 454,637
------------ ------------
Total expenses 17,549,368 10,953,929
------------ ------------
Loss before minority interest in properties,
equity in loss of Multifamily Venture,
equity in income of Mortgage Funds, and
minority common interest in Operating
Partnership (3,033,208) (1,390,815)
Minority interest in properties 201,914 (45,942)
Equity in loss of Multifamily Venture (43,174) -
Equity in income of Mortgage Funds 1,086,039 377,167
Minority common interest in Operating
Partnership - -
------------ ------------
Net loss $(1,788,429) $(1,059,590)
============ ============
Preferred dividend (1,675,200) (1,675,213)
------------ ------------
Net loss available to common shareholders $(3,463,629) $(2,734,803)
============ ============
Loss per common share, basic and diluted $(2.70) $(2.13)
============ ============
Weighted average number of common shares
outstanding 1,283,313 1,283,313
============ ============
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion