Tarragon Realty Investors Reports Full Year Results.NEW YORK--(BUSINESS WIRE)--April 19, 1999-- Total 1998 Revenue Up 12.8% to $58.7 Million Over 1997; Adjusted 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. Per Share Increased 9% in 1998; Construction, Development and Renovation Activities Position Company for Long-Term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. Growth Tarragon tarragon (târ`əgŏn), perennial aromatic Old World herb (Artemisia dracunculus) of the family Asteraceae (aster family), of the same genus as wormwood and sagebrush. 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. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TARR TARR Trademark Applications and Registrations Retrieval (US Patent and Trademark Office) TARR Time of Arrival TARR Time Adjusted Rate of Return ) today announced its full year results for 1998. FULL YEAR RESULTS Total revenue for 1998 was $58.7 million, up 12.8% over 1997 revenues of $52.02 million. However, after extraordinary non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of $1.23 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred borrowing costs and debt prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. , there was a net loss of $1.4 million or 0.18 per share for 1998 compared to net income of $5.59 million or $0.73 per share in 1997. Additionally, net gain on sale of real estate and investments in 1998 was $2.23 million compared to $5.26 million in 1997. Construction, development and renovation activities in 1998 reduced year-end earnings by $2.55 million. Similar activities reduced 1997 earnings by $43,000. The aggregate effect of these items was approximately equal to the difference in 1998 net income compared to 1997. 1998 FUNDS FROM OPERATIONS Funds from Operations (FFO FFO See: Funds from operations ), which management considers a more relevant measure of performance for a real estate company, were $6.88 million or $0.90 per share in 1998 compared to $8.51 million or $1.11 per share in 1997. Both 1998 net income and FFO were adversely affected by the substantial increase in the company's real estate construction, development and renovation activities. In aggregate, such activities reduced 1998 FFO by $3.31 million or $0.43 per share. Similar activities reduced 1997 FFO by $967,000 or $0.13 per share. CONSTRUCTION AND DEVELOPMENT ACTIVITIES POSITION COMPANY FOR GROWTH "Our efforts to create shareholder value through development and renovation have a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. negative effect on both earnings and Funds from Operatoions. These initial operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. are anticipated, inherent in the activities we have undertaken and were provided for in the financing we arranged for these projects. Adjusted for the increased impact of 1998 construction and development activities, our FFO per share actually increased by 9% in 1998 compared to 1997. We are particularly pleased that same store growth in 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. for the 32 stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. apartment communities owned for all of 1997 and 1998 increased by 10%, reflecting the success of our continued efforts to improve the quality of our apartment portfolio. The goal of our construction and development strategy is to position the company for long-term growth and to build shareholder value," said Tarragon Chief Executive Officer, William S William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack . Friedman. Tarragon Realty Investors, Inc., a national, full-service real estate company, manages and maintains a portfolio of over 16,000 apartment units, including over 3,000 luxury units, located primarily in Florida, Texas, Colorado, Connecticut and California. The company also manages a portfolio of over 2,300,000 square feet of office and retail space. FORWARD LOOKING STATEMENTS Information in this press release includes forward looking statements 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. Actual results and timing of certain events could differ materially from those projected or contemplated by the forward looking statements due to a number of factors, including but not limited to general economic conditions, interest rates, weather, the availability of financing for development and acquisition, and other risk factors outlined in the company's SEC reports, annual report and 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. . The company assumes no responsibility to update forward looking information contained herein. -0-
TARRAGON REALTY INVESTORS, INC.
FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 31, 1998
(Dollars in thousands, except per share data)
For the Years Ended
December 31,
_________________________
1998 1997
Revenue 58,700 52,017
Expenses (61,095) (51,749)
Income (loss) before net gain on sale
of real estate, gain on sale of
investments, and extraordinary items (2,395) 268
Net gain on sale of real estate 2,108 4,350
Gain on sale of investments 123 913
_________________________
Income (loss) from continuing
operations (164) 5,531
Extraordinary items (1,231) 61
Net income (loss) ($1,395) $5,592
__________________________
Other comprehensive income (loss):
Unrealized gains (losses) on marketable
equity securities (100) 831
Realized gain on marketable equity securities (123) (698)
Net income (loss) recognized in other
comprehensive income (loss) (223) 133
Comprehensive income (loss) ($1,618) $5,725
Earnings per share ___________________________
Income (loss) from continuing operations ($0.02) $0.72
Extraordinary items (0.16) 0.01
Net income (loss) ($0.18) $0.73
Weighted average shares of common stock
used in computing earnings per share 7,619,604 7,693,031
_______________________
Earnings per share--assuming dilution
Income (loss) from continuing operations ($0.02) $0.71
Extraordinary items (0.16) 0.01
________________________
Net income (loss) ($0.18) $0.72
________________________
Weighted average shares of common stock
used in computing earnings per share--
assuming dilution 7,619,604 7,769,296
_________________________
Funds from operations:
Net income (loss) ($1,395) $5,592
Extraordinary items 1,231 (61)
Net gain on sale of real estate (2,108) (4,350)
Gain on sale of investments - (215)
Depreciation and amortization of
real estate assets 7,602 7,225
Depreciation and amortization of
real estate assets of partnerships 1,892 356
Distributions from partnerships in excess
of the Company's investments in the
partnerships (338) (41)
Funds from operations $6,884 $8,506
_______________________
Funds from operations per share 0.90 1.11
Funds from operations per share--assuming
dilution 0.90 1.09
SHARE AND PER-SHARE INFORMATION RESTATED TO REFLECT 1998 MERGER
On November 24, 1998, Tarragon Realty Investors, Inc. (Tarragon)
and National Income Reality Trust (NIRT) merged, with Tarragon as the
surviving entity. Share and per share information has been restated
retroactively to give effect to the 1.97 to 1 exchange ratio in the
merger. For accounting purposes, the merger is treated as a reverse
acquisition of Tarragon by NIRT using the purchase method of
accounting. Historical balances and operations of Tarragon in this
press release are those of NIRT.
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