Kramont Reports Receipt of $27.5 Million Mortgage Prepayment.Business Editors PLYMOUTH MEETING, Pa.--(BUSINESS WIRE)--Dec. 26, 2000 Kramont Realty Trust (NYSE NYSE See: New York Stock Exchange :KRT KRT Knight Ridder/Tribune KRT Keratin KRT Knights of the Round Table (Diablo gaming guild) KRT Khartoum, Sudan - Civil (Airport Code) KRT Kleene's Recursion Theorem ), a real estate investment trust, today announced it has received $27.5 million from privately-owned Hilcoast Development Corp., consisting of the entire $24.5 million principal balance of a real estate mortgage note and a prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. of $3 million. The note bore interest of 11% per year and required payments through 2023. Louis P. Meshon, Sr., president and chief executive officer of Kramont noted that the company will utilize the proceeds to retire $18.5 million of debt and the remaining $9 million for investment and general corporate purposes. Mr. Meshon further stated that the transaction will result in a 15-cent per share non-recurring increase in its fourth quarter earnings and 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. and will improve the debt equity ratio of the company's balance sheet. Kramont Realty Trust is a self-administered, self-managed equity real estate investment trust specializing in neighborhood and community shopping center 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 acquisition, leasing, development and management. The company owns and operates 89 properties encompassing approximately 12 million square feet of leasable space in 16 states. Detailed information regarding Kramont Realty Trust and its properties can be found on its World Wide Web site at http://www.kramont.com. This press release contains certain 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. within the meaning of the Securities Act of 1933, as amended. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Risks and other factors that might cause such a difference include, but are not limited to, the effect of economic and market conditions; risks that the Company's acquisition and development projects will fail to perform as expected; cost overruns and delays on expansion and development projects; financing risks, such as the inability to obtain debt or equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. on favorable terms; the level and volatility of interest rates; loss or bankruptcy of one or more of the Company's major retail tenants; failure of the Company's properties to generate additional income to offset increases in 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. and loss of interest income and failure to consummate a strategic transaction, as well as other risks listed from time to time in the Company's reports filed with the Securities and Exchange Commission or otherwise publicly disseminated by the Company. |
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