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PROPERTY TRUST OF AMERICA ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF 1992, DECLARATION OF DIVIDEND & $72M SECURED LINE OF CREDIT

PROPERTY TRUST OF AMERICA ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF 1992, DECLARATION OF DIVIDEND & $72M SECURED LINE OF CREDIT
 EL PASO, Texas, Aug. 6 /PRNewswire/ -- Property Trust of America (NYSE: PTR) today reported funds from operations ("FFO") for the second quarter of 1992 of $3,373,000, or $0.18 per share, on real estate revenues of $6,445,000, as compared to $1,219,000, or $0.23 per share, on real estate revenues of $3,369,000 for the same quarter of 1991.
 C. Ronald Blankenship, chairman of the board, noted that the 1992 second quarter was a period of significant accomplishment for PTR, with FFO from PTR's multifamily portfolio contributing $2,364,039 as compared to $316,855 in 1991, the successful completion of a $70 million public offering of shares, the completion of $33.6 million of multifamily acquisitions and the acquisition of the remaining land under PTR's Holiday Inn at Fisherman's Wharf, San Francisco. Blankenship also stated that the short-term decrease in FFO per share during the quarter is attributable to the effects of the recent equity offering. As the proceeds from the offering completed in April 1992 are moved out of money market funds and into targeted multifamily investments, quarterly FFO per share improvement should occur during the third quarter of 1992. The 1992 second quarter per share results are based upon average shares outstanding of 18,558,000, as compared to 5,387,000 during the second quarter of 1991.
 On April 24, 1992, PTR issued 7,050,000 shares at $10.375 per share in a common stock offering. Five million of the shares were underwritten by Merrill Lynch & Co., Goldman, Sachs & Co., and A.G. Edwards & Sons, Inc. The balance of 2,050,000 shares were placed directly under the advisor's supervision for no additional underwriting fee. The overall commission cost to PTR on the offering was 3.89 percent, which compares very favorably to an industry average of approximately 5.57 percent, and equates to a savings to PTR shareholders of $1,228,000. As of Aug. 4, 1992, all but $4.4 million of the offering proceeds have been invested in multifamily properties and in the Holiday Inn land.
 On Aug. 4, 1992, the board of trustees declared a dividend of $0.175 per share payable on Sept. 4, 1992 to shareholders of record as of Aug. 21, 1992. This dividend payment represents the 65th consecutive dividend payment made by PTR to its shareholders. For future quarterly reporting periods, PTR will release its earnings and FFO results, and the board of trustees will declare the dividend record and payment dates, on an accelerated schedule. Financial results will be released no later than the end of the fourth week following the end of each quarter, and dividends will be paid no later than the end of the seventh week.
 PTR also announced that it has reached agreement in principle for a new $72 million secured line of credit for bridge financing purposes in acquiring multifamily properties and which PTR expects to close shortly. The new line of credit will give PTR the flexibility to acquire multifamily properties pending the receipt of proceeds from potential future equity offerings.
 As of June 30, 1992, PTR's multifamily properties that were stabilized were 96 percent occupied. Multifamily properties that were fully operational during the first six months of 1992 and 1991 experienced an increase in rents of 8.4 percent. During the first seven months of 1992, the Trust entered into multifamily acquisition and development transactions representing 2,636 units and an investment of $80.8 million.
 PTR currently has under contract or letter of intent, subject to final due diligence, six multifamily properties which total an additional 2,217 units and represent an aggregate investment of $81.1 million.
 In a related announcement, PTR's advisor, Southwest Realty Advisors Incorporated, announced that it has changed its name to Southwest Multifamily Advisors Incorporated. The focus of Southwest Multifamily Advisors Incorporated staff of over 25 professionals is directing PTR's multifamily investment strategy in its southwestern target market and the enhancement of PTR's cash flows and shareholder values. The name change was made to more accurately reflect that focus.
 PTR is an equity real estate investment trust ("REIT") which invests in multifamily properties in its 12 city target market in the southwestern United States. PTR's advisor is Southwest Realty Advisors Incorporated, which is an affiliate of PTR's largest shareholder (20.9 percent), Realty Growth Investors Incorporated. The advisor's management team is focusing PTR's efforts on acquiring, developing and operating multifamily housing that will compete very effectively in each specific market place over the long term, as well as producing high initial and growing funds from operations which will maximize quarterly dividend growth to shareholders.
 PROPERTY TRUST OF AMERICA
 (Unaudited)
 Periods ended Quarter Six months Quarter Six months
 June 30 1992 1991
 Total revenues $ 7,034 $12,112 $ 3,557 $ 6,940
 Funds from
 operations $ 3,373 $ 5,698 $ 1,219 $ 2,200
 Net earnings
 (loss) $ 2,192 $ 3,563 $ (34) $ 346
 Weighted average
 shares outstanding
 (in thousands) 18,588 15,891 5,387 5,230
 Per share data:
 Funds from
 operations $ 0.18 $ 0.36 $ 0.23 $ 0.42
 Gain (loss) on
 investment -- -- $ (0.11) $ (0.11)
 Net earnings
 (loss) $ 0.12 $ 0.22 $ (0.01) $ 0.07
 -0- 8/6/92
 /CONTACT: James H. Polk III or Jeffrey A. Cozad of Southwest Multifamily Advisors, 800-982-9293/
 (PTR) CO: Property Trust of America ST: Texas IN: FIN SU: ERN


SM -- NY067 -- 7628 08/06/92 13:01 EDT
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Publication:PR Newswire
Date:Aug 6, 1992
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