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CROWN AMERICAN REALTY TRUST ANNOUNCES THIRD QUARTER RESULTS

 JOHNSTOWN, Pa., Nov. 15 /PRNewswire/ -- Crown American Realty Trust (NYSE: CWN) today announced financial results and operating information for the 45 days from Aug. 17, 1993, to Sept. 30, 1993, together with pro forma financial results for the third quarter and year-to-date periods ended Sept. 30, 1993.
 Crown American Realty Trust (the "Company"), a real estate investment trust (REIT), is the managing general partner and 76.3 percent owner of Crown American Properties, L.P. (the "Operating Partnership"), which owns, acquires, operates and develops regional shopping malls in Pennsylvania, Maryland, Virginia, West Virginia, New Jersey, Tennessee and Georgia. The current portfolio includes 23 regional shopping malls.
 Financial Information
 For the 45 days ended Sept. 30, 1993, the operating partnership had revenues of $14.1 million which produced net income of $2.0 million ($.06 per unit) and Funds From Operation (FFO) of $5.9 million ($.17 per unit). FFO includes $.25 million ($.01 per unit) of proceeds from land sales. The company's share of net income and FFO was $1.5 million ($.06 per share) and $4.5 million ($.17 per share), respectively.
 (NOTE: The company completed its initial public offering on Aug. 17, 1993, and therefore, has had only 45 days of operation. However, because Crown American Realty Properties is considered a "Predecessor to the Company," revenues, net income and Funds From Operations amounts for 1993 and 1992 on a pro forma basis are disclosed below.)
 On a pro forma basis, company revenues increased $1.9 million or 7.4 percent to $27.7 million for the three-month period ended Sept. 30, 1993, as compared with $25.8 million for the three-month period ended Sept. 30, 1992. The increase was primarily the result of new leasing, re-tenanting and lease-up of recently developed malls. For the eight-month period ended Sept. 30, 1993, pro forma revenues increased $3.7 million or 5.2 percent to $74.3 million, compared with $70.6 million a year ago.
 For the three-month period ended Sept. 30, 1993, the company reported on a pro forma basis net income of $1.6 million and FFO of $8.1 million as compared with $1.7 million of net income and $7.8 million of FFO for the three-month period ended Sept. 30, 1992. This decline in net income was primarily attributable to increased cost due to third party maintenance contracts, but was offset by improved performance in the four recently developed properties. For the eight-month period ended Sept. 30, 1993, the company produced on a pro forma basis net income of $7.0 million and FFO of $27.9 million as compared with $4.0 million of net income and $20.8 million of FFO a year ago.
 "Since becoming a public company in mid-August, we are pleased with our financial results," said Frank J. Pasquerilla, Crown American Realty Trust chairman and CEO. "Considering that retail is a seasonal business and in the fourth quarter we expect to realize additional income from temporary Christmas tenants and additional percentage rents, we believe that our performance is on target with our expectations.
 "We currently expect to meet our 1993 FFO pro forma of $.58 per share, the proportionate share of annualized FFO as noted in the company's prospectus dated Aug. 9, 1993. Accordingly, we declared a partial dividend for the 45 days of operations through Sept. 30, 1993, of $.175 per share, payable Nov. 22, 1993, to shareholders of record on Nov. 5, 1993."
 Tenant Sales, Leasing and Land Sales
 (NOTE: The following information on tenant sales and leasing is for Crown American-managed malls in the REIT. It does not include Palmer Park Mall that is jointly owned with Pennsylvania Real Estate Investment Trust and managed by the KRAVCO Company.)
 Sales for small shop tenants for the 12 months ended Sept. 30, 1993, increased 0.7 percent over the prior year. The average base rent for small shop leases signed for the 12-month period ended Sept. 30, 1993, was $15.64 which is an increase of 2.4 percent over the $15.27 average base rent for small shop leases signed during the prior 12-month period. The average rent of small shop leases signed during the 2.5-year period ended June 30, 1993, was $15.66 for average base rent. The average base rent of the portfolio as of June 30, 1993, was $15.16. Since June 30, 1993, the average base rent for small shop leases signed is $16.23, which is an increase of 3.6 percent over the 2.5-year average of leases signed, and an increase of 7.1 percent over the average base rent for the portfolio.
 Mall small shop occupancy over the 12 months ended Sept. 30, 1993, increased from 80 percent to 83 percent with recently developed malls excluded and from 75 percent to 81 percent with recently developed malls included. This represents an increase of 4 percent and 8 percent, respectively. (Recently developed malls include four malls opened in 1991: Mount Berry Square, Bradley Square, Oak Ridge Mall and Martinsburg Mall.)
 Since the formation of the REIT, overall small shop occupancy has remained constant at 83 percent with recently developed malls excluded and 81 percent with the recently developed malls included. Occupancy costs since the REIT's formation is up from 10.0 percent to 10.67 percent as of Sept. 30, 1993. (Occupancy costs is defined as base rent, percentage rent and expense recoveries as a percentage of mall small shop sales.)
 Land sales, totaling $3 million for approximately 12 acres, are expected to close by Dec. 31, 1993. This includes eight parcels of land adjacent to five shopping malls.
 New Projects
 Since becoming a public company in mid-August, Crown American Realty Trust has announced and begun projects at several malls.
 A $27-million expansion that will add 125,000 square feet to Viewmont Mall in Scranton, Pa., is under way. This project will include relocating Hess's Department Store into a new space and converting the existing Hess's store into space for additional small shop tenants and a food court. Approximately 95 percent of the new small shop space has already been pre-leased. The project is expected to be completed in spring 1995.
 At West Manchester Mall in York, Pa., 45,000 square feet is being added to the Wal-Mart store. Earlier this year, Wal-Mart announced that it would be replacing Hess's in West Manchester Mall. The newly expanded Wal-Mart is scheduled to open in summer 1994.
 Expansions and renovations to Sears department stores are planned for Lycoming Mall, Williamsport, Pa., and Capital City Mall, Camp Hill (Harrisburg), Pa. The Sears in Wyoming Valley Mall in Wilkes-Barre, Pa., will also be expanded and renovated. Wyoming Valley Mall is jointly owned by Crown American Associates and First Union Real Estate Equity and Mortgage Investments ("First Union"). Crown American Realty Trust has offered to purchase Crown American Associates' interest in Wyoming Valley Mall and in Middletown Mall in Fairmont, W.Va. Middletown Mall is also jointly owned with First Union. A newly expanded and renovated 140,000-square-foot Hecht's department store opened last week in Francis Scott Key Mall in Frederick, Md. Hecht's, a division of The May Company, is replacing a 100,000-square-foot Hess's store. At Patrick Henry Mall in Newport News, Va., negotiations are being finalized to add a fourth, 140,000-square-foot department store. Negotiations have been completed to buy out the 103,000-square-foot Ames store lease in Capital City Mall, Camp Hill (Harrisburg), Pa., and replace it with a national department store.
 CROWN AMERICAN REALTY TRUST (the Company)
 (Dollars in thousands, except per share amounts)
 Results of Operation
 (Unaudited)
 45 Days Ended Sept. 30
 1993 1992
 Revenues $14,112 N/A (A)
 Net income 1,513 N/A (A)
 Net income per share $0.06 N/A (A)
 Funds from Operations (FFO) (B) 4,470 N/A (A)
 FFO per share $0.17 N/A (A)
 Weighted average number of shares
 outstanding 26,466,167 N/A (A)
 Ownership percentage of operating
 partnership 76.3 pct. N/A (A)
 Results of Operations on a Pro Forma Basis
 (Unaudited)
 Periods Ended Three Months Eight Months
 Sept. 30 1993 1992 1993 1992
 Revenues $27,692 $25,811 $74,338 $70,641
 Net income 1,556 1,719 6,985 3,963
 Net income per share $0.06 $0.06 $0.26 $0.15
 Funds from Operation
 (FFO) (B) 8,134 7,801 27,890 20,806
 FFO per share $0.30 $0.29 $1.03 $0.77
 Number of shares
 outstanding 27,118,500 27,118,500 27,118,500 27,118,500
 Notes:
 (A) Amounts for the comparable 45-day period of 1992 are not presented as Crown American Realty Trust did not become a public company until Aug. 17, 1993.
 (B) Funds From Operations means net income (loss) before the company's share of property depreciation amortization of financing and other expenses, and other non-cash items such as the straight-lining of rents. Funds From Operations: (i) does not represent cash flow from operations as defined by Generally Accepted Accounting Practices (GAAP), (ii) is not necessarily indicative of cash available to fund all cash flow needs and (iii) should not be considered as an alternative to net income for purposes of evaluating the company's operating performance.
 /delval/
 -0- 11/15/93
 /CONTACT: media, Christine Menna, 814-536-9520; or investors, Frank Pasquerilla, chairman & CEO, 814-535-9347, or Patrick Miniutti, executive v-p & CFO, 814-535-9407, all of Crown American/
 (CWN S WMT)


CO: Crown American Realty Trust; Crown American Properties, L.P.;
 Crown American Associates; First Union Real Estate Equity and
 Mortgage Investments ST: Pennsylvania IN: REA SU: ERN


DM-JM -- PG007 -- 4349 11/15/93 11:18 EST
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