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PROPERTY TRUST OF AMERICA ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER OF 1992

 PROPERTY TRUST OF AMERICA ANNOUNCES FINANCIAL RESULTS
 FOR THE FIRST QUARTER OF 1992
 EL PASO, Texas, May 7 /PRNewswire/ -- Property Trust of America (NYSE: PTR) reported Funds from Operations for the first quarter of 1992 of $2,325,000 on revenues of $5,078,000, as compared to $981,000 on revenues of $3,383,000 for the same period in 1991.
 First quarter results reflect the dilutive effect of the interim return of approximately 4 percent earned on the cash proceeds of PTR's November 1991 public offering which were invested in a conservatively managed money market fund for most of the quarter. However, as of March 11, 1992, all of the cash from the November offering was fully invested in new multifamily properties.
 Funds from Operations were $.18 per share for the first quarter as compared to $.19 per share for the same period in 1991. The weighted average shares outstanding during the first quarter totaled 13,194,000, reflecting the issuance of a total of 8,090,000 new shares during 1991.
 Multifamily properties contributed $1,384,000 to Funds from Operations, an increase of $1,186,000 (599 percent) over the first quarter of 1991. As of March 31, 1992, the multifamily portfolio was 97 percent occupied. Multifamily properties that were stabilized in both the first quarter of 1992 and 1991 experienced an increase in rents of approximately 10.7 percent. During 1992, Southwest Realty Advisors Incorporated, the Advisor to PTR, has completed transactions for the purchase and development of 1,360 multifamily units which represent an investment of approximately $45.8 million.
 Net income for the quarter ended March 31, 1992, was $1,371,000, or $.10 per share, as compared to $380,000, or $.07 per share, for the same period of 1991. Rental income for the quarter increased to $4,559,000, as compared to $3,099,000, reflecting the impact of new multifamily units that were added to PTR's real estate portfolio during 1991.
 On April 23, 1991, the Advisor, on behalf of the Trust, completed a public offering to 7,050,000 new shares from which the Trust received net proceeds of $70 million. The offering was completed at an average underwriting discount of 3.89 percent of the offering amount, which is significantly less than the REIT industry average of 5.57 percent.
 Approximately $11 million of the proceeds were used to retire existing indebtedness. The balance of the money remains available for the purchase of multifamily properties. After the offering, PTR's indebtedness, as a percentage of total capitalization, was approximately 17 percent, down from 26 percent at December 31, 1991. The Advisor, through the efforts of its acquisition staff of eight professionals, expects to have the proceeds of the offering fully invested in newly acquired multifamily properties by mid-summer. PTR currently has under contract or letter of intent, subject to final due diligence, eight multifamily properties totaling an additional 2,319 units that represent an aggregate investment of approximately $66 million. It is anticipated that the first year return on these properties will average approximately 10.9 percent.
 Non-multifamily properties maintained an average occupancy level of 91 percent during the first quarter. The Advisor is continuing its efforts to position these properties for improved performance and potential opportunistic sales in the future and believes that, in the aggregate, PTR will realize at least the net book value on assets sold.
 PTR is an equity real estate investment trust which acquires and develops multifamily properties in the southwestern United States. In February 1990, Realty Growth Investors Incorporated (formerly Southwest Realty Investors Incorporated) became PTR's principal shareholder, and in March 1991, PTR retained Southwest Realty Advisors Incorporated as its Advisor. The Advisor's management team has focused PTR's efforts on investment in multifamily properties in the Southwest with the goal of maximizing Funds from Operations and quarterly distributions to shareholders.
 PROPERTY TRUST OF AMERICA
 Quarter Ending Quarter Ending
 March 31, March 31,
 1992 1991
 (in thousands, except per share data)
 Total Revenues $ 5,078 $ 3,383
 Funds from Operations $ 2,325 $ 981
 Net Earnings $ 1,371 $ 381
 Weighted Average shares
 outstanding 13,194 5,071
 Per Share Data
 Funds from Operations $ 0.18 $ 0.19
 -0- 5/7/92
 /CONTACT: James H. Polk III or Jeffrey A. Cozad of Southwest Realty Advisors Incorporated, 505-982-9292/
 (PTR) CO: Property Trust of America; Southwest Realty Advisors Incorporated ST: Texas IN: SU: ERN


JG -- NY029 -- 7503 05/07/92 10:07 EDT
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Publication:PR Newswire
Date:May 7, 1992
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