First Union Real Estate Investments Announces Second Quarter Results.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 14, 2001 First Union Real Estate Investments (NYSE NYSE See: New York Stock Exchange :FUR fur, hairy covering of an animal, especially the skins of animals that have thick, soft, close-growing hair next to the skin itself and coarser protective hair above it. )-- First Union Real Estate Investments (NYSE:FUR) announced the operating results for the second quarter ended June June: see month. 30, 2001.
Financial results for the three and six months ended June 30, 2001
and 2000 are as follows:
Three Months Ended Six Months Ended
(in thousands,
except per share data) June 30, June 30, June 30, June 30,
2001 2000 2001 2000
-------- --------- ---------- ---------
Revenues $ 6,702 $ 16,091 $ 19,750 $ 33,489
--------- -------- -------- --------
Loss from operations (3,054) (3,042) (3,535) (7,623)
Capital gains 142 59,249 30,129 59,141
Extraordinary loss
from early
extinguishment of debt - (2,367) (889) (5,459)
--------- -------- -------- --------
Net (loss) income
before preferred
dividend $ (2,912) $ 53,840 $ 25,705 $ 46,059
========= ======== ======== ========
Net (loss) income
attributable to
shares of beneficial
interest $ (3,429) $ 53,132 $ 24,671 $ 44,643
========= ======== ========= ========
Funds from (used in)
operations before
preferred dividend $ 151 $ (276)$ 1,810 $ (1,930)
Funds (used in) from
operations after
preferred dividend $ (366) $ (984)$ 776 $ (3,346)
Funds (used in)
from operations
per share after
preferred dividend $ (.01) $ (.02)$ .02 $ (.08)
For the three months ended June 30, 2001, the Company's net loss was $3.4 million compared to net income of $53.1 million for the same period in 2000. Net loss for the three months ended June 30, 2001 included a $2.7 million writeoff writeoff A reduction to zero in the value of an asset carried on a firm's financial statement. Companies often hesitate to make writeoffs because profits reported to stockholders are reduced. of its investment in HQ Global Holdings, Inc. warrants because of a decline in center occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and other business setbacks recently discussed by HQ. Net loss for the three months ended June 30, 2001 included a $.1 million capital gain compared to a $59.2 million capital gain for the same period in 2000. The Company incurred a $2.4 million extraordinary loss for the three months ended June 30, 2000. Net 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. , which is defined as rent and sales less 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. , costs of goods sold and real estate taxes decreased for the three months ended June 30, 2001 to $1.4 million from $6.7 million for the same period in 2000. The decrease was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the sale of properties in March 2001. Short term investment income decreased during the three months ended June 30, 2001, as compared to the same period in 2000, due to lower amounts invested and lower interest rates between the comparable three month periods. Interest expense declined due to the sale of properties in March 2001 and the repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan of reverse repurchase agreements Reverse Repurchase Agreement The purchase of securities with the agreement to sell them at a higher price at a specific future date. For the party selling the security (and agreeing to repurchase it in the future) it is a repo for the party on the other end of the in January January: see month. 2001. Supplemental Financial Information Certain statements contained in this news release that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, changes in local real estate conditions and markets, actions by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , interest rate movements and general economic conditions. Further information about these matters can be found in the information included in the 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. and 10-K/A filed by the Company with the SEC. First Union Real Estate Equity and Mortgage Investments is a NYSE-listed, stapled-stock real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York.
FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS
Combined Statements of Operations
Unaudited (In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
----------------- ----------------
2001 2000 2001 2000
------ ------ ------- ------
Revenues
Rents $ 3,065 $ 11,909 $ 12,165 $ 25,849
Sales 1,921 1,395 4,031 2,779
Interest- Mortgage loans 188 56 266 150
- Short-term
investments 1,190 2,643 2,608 4,535
Dividends 337 112 675 112
Equity in (loss) income
from joint venture - (87) - (115)
Other income 1 63 5 179
--------- -------- -------- --------
6,702 16,091 19,750 33,489
--------- -------- --------- --------
Expenses
Property operating 1,696 3,080 4,617 7,099
Cost of goods sold 1,779 2,086 3,828 4,234
Real estate taxes 102 1,448 945 3,144
Depreciation and
amortization 523 2,929 2,807 6,222
Interest- Mortgage
loans 928 4,278 3,957 9,324
- Notes payable 18 1,704 147 2,632
- Senior notes 278 278 556 556
General and administrative 1,732 3,330 3,728 7,901
Write-down of investment 2,700 - 2,700 -
--------- ------- ------- --------
9,756 19,133 23,285 41,112
--------- ------- ------- --------
Loss before capital
gains, extraordinary
loss from early
extinguishment of debt
and preferred dividend (3,054) (3,042) (3,535) (7,623)
Capital gains 142 59,249 30,129 59,141
Extraordinary loss from
early extinguishment
of debt - (2,367) (889) (5,459)
--------- ------- -------- --------
Net (loss) income before
preferred dividend (2,912) 53,840 25,705 46,059
Preferred dividend (517) (708) (1,034) (1,416)
--------- ------- ------- --------
Net (loss) income
attributable to
shares of beneficial
interest $ (3,429)$ 53,132 $ 24,671 $ 44,643
========= ======= ======= ========
Funds from (used in)
operations before
preferred dividend $ 151 $ (276)$ 1,810 $ (1,930)
========= ======== ======= =========
Funds (used in) from
operations after
preferred dividend $ (366)$ (984) $ 776 $ (3,346)
========= ======== ======== ========
Per share data
Basic weighted average shares 36,388 42,469 38,012 42,470
========= ======== ======== ========
Diluted weighted average shares 36,388 49,087 42,857 49,098
========= ======== ======== ========
(Loss) income before
extraordinary loss, basic $ (0.09)$ 1.33 $ 0.67 $ 1.20
Extraordinary loss from early
extinguishment of debt, basic - (0.06) (0.02) (0.13)
-------- -------- -------- --------
Net income applicable to
shares of beneficial
interest, basic $ (0.09)$ 1.27 $ 0.65 $ 1.07
========= ======== ======== ========
(Loss) income before
extraordinary loss, diluted $ (0.09)$ 1.15 $ 0.62 $ 1.05
Extraordinary loss from
early extinguishment
of debt, diluted - (.05) (0.02) (0.11)
--------- -------- -------- ---------
Net (loss) income applicable
to shares of beneficial
interest, diluted $ (0.09) $ 1.10 $ 0.60 $ .94
========= ======== ======== ========
Funds (used in) from
operations after
preferred dividend $ (0.01) $ (0.02)$ 0.02 $ (0.08)
========= ======== ======== ========
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