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PROPERTY TRUST OF AMERICA INCREASES DIVIDEND TO $1.00 PER SHARE FOR 1994

 SANTA FE, N.M., Dec. 9 /PRNewswire/ -- Property Trust of America (NYSE: PTR) announced today that the Board of Trustees set a new annualized dividend level for 1994 of $1.00 per share, or $0.25 per share per quarter. PTR Chairman C. Ronald Blankenship stated that the increase of $0.18 per share (22 percent) over the 1993 dividend level of $0.82 per share reflects continued strength in PTR's Southwestern target market as evidenced by strong rental rate growth and high levels of occupancy. The Board believes the new dividend level will conservatively result in a payout ratio of 81 percent to 85 percent of budgeted 1994 Funds from Operations ("FFO") and was set after a thorough review of PTR's 1994 Operating Plan and Budget.
 Blankenship stated that during the last six months, PTR has had the strongest acquisitions backlog in the company's history and he expects that by the end of 1993, PTR will announce the closing of 6,523 units of new acquisitions currently under contract having a total investment value of $194.5 million.
 Since the successful completion of PTR's Convertible Preferred Share offering on Nov. 23, the over-allotment option was exercised by the underwriting group led by Goldman, Sachs & Co., A.G. Edwards & Sons, Inc. and Kidder, Peabody & Co. Incorporated. As a result, the offering provided gross proceeds of $230 million of capital. This infusion of equity capital provides PTR an exceptionally strong balance sheet, with $750 million of equity and only $27 million of long-term debt. This positions PTR to move into the long-term debt markets for its anticipated 1994 capital needs. PTR plans to arrange, during the first quarter of 1994, 20-year fixed rate fully amortizing debt to repay future borrowings under PTR's revolving line of bank credit and to invest in additional multifamily properties. This financing strategy will allow PTR to prudently increase its capital base with debt instead of primarily equity while keeping long-term debt below 50 percent of total financial statement capitalization.
 PTR's objective is to be the preeminent real estate operating company in the southwestern United States focusing on the acquisition, development, operation and long-term ownership of multifamily properties.
 -0- 12/9/93
 /CONTACT: John Q. Collins, 800-982-9293, or Jeffrey A. Cozad, or Gerard de Gunzburg, 212-838-9292, all for Property Trust of America/
 (PTR)


CO: Property Trust of America ST: Texas IN: FIN SU: DIV

MP-PS -- NY042 -- 2207 12/09/93 12:21 EST
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Publication:PR Newswire
Date:Dec 9, 1993
Words:406
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