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THE PRICE REIT INC. COMPLETES SALE OF 5,200,000 SHARES OF SERIES B COMMON STOCK

 And Acquisition Of $117 Million Of Properties,
 Repayment Of Debt Of $40 Million, And Announces
 Operating Results For the Six Months Ended 6/30/93
 SAN DIEGO, Aug. 13 /PRNewswire/ -- The Price REIT Inc. (NASDAQ-NMS: PRET AND PRETB) announced the completion of its public offering of 4,600,000 shares of Series B Common Stock and the direct placement of 600,000 additional shares with Sol Price, the company's chairman, and two other executive officers. The managing underwriters for the offering were Merrill Lynch & Co. and Lehman Brothers.
 The net proceeds of the offering before any company expenses amounted to approximately $160 million. The company used approximately $117 million of the proceeds from the offering to purchase three shopping centers from The Price Co., along with three contiguous Price Club retail warehouses, located in Copiague, N.Y.; White Marsh, Md.,; and Fairfax, Va.; and to purchase The Price Co.'s 49.6 percent interest in a joint venture which owns five shipping centers. In addition, the company used approximately $40 million of the proceeds to repay certain indebtedness to two trusts affiliated with Sol Price.
 Total revenues from rental operations and interest income for the six month period ended June 30, 1993, amounted to $11,762,000 as compared with $8,207,000 for the same period last year. The increase can be attributed mostly to revenues from recent acquisitions. Funds from operations, which is considered a measure of operating performance for a REIT, for the six month period ended June 30, 1993, were $4,213,000 or $1.44 per share as compared with $3,618,000 or $1.24 for the same period last year.
 THE PRICE REIT INC.
 Operating Results
 Six Months Ended
 June 30, 1993 June 30, 1992
 Gross revenues $11,762,000 $8,207,000
 Operating expenses 2,450,000 1,730,000
 Depreciation 2,834,000 1,971,000
 Interest expense 2,634,000 829,000
 Minority interest in income 1,491,000 1,374,000
 Net income 2,353,000 2,303,000
 Per share data
 Net income per share 0.80 0.79
 Dividend per share 1.18 1.13
 Shares outstanding(a) 2,928,000 2,928,000
 Funds from Operations(b)
 Income before minority
 interest 3,844,000 3,677,000
 Add: depreciation &
 amortization 2,834,000 1,971,000
 Less: deferred rental income (689,000) (500,000)
 Distributions to minority
 partner (1,776,000) (1,530,000)
 Funds from operations 4,213,000 3,618,000
 Dividends paid 3,455,000 3,294,000
 Funds from operations
 per share 1.44 1.24
 (a) Shares outstanding prior to the offering.
 (b) Funds from operations is defined as income before minority interest in income of Price Plazas, a consolidated joint venture, plus depreciation, less deferred rental income and distributions to the minority partner in Price Plazas.
 The company also announced that Joseph Kornwasser has been named as president, chief executive officer and a director, and Jerald Friedman has become senior executive vice president, chief operating officer. As of the close of the offering, the company completed the acquisition of the Kornwasser & Friedman property management business and formation of a new development company.
 The Price REIT Inc. is a self-administered, self-managed real estate investment trust. After the acquisition, the company now owns retail properties totaling approximately 3 million square feet with invested assets of approximately $272 million.
 -0- 8/13/93
 /CONTACT: George M. Jezek of The Price REIT, 619-551-2320/
 (PRET)


CO: The Price REIT Inc. ST: California IN: REA SU: ERN

LM-EH -- SD004 -- 2709 08/13/93 16:57 EDT
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Publication:PR Newswire
Date:Aug 13, 1993
Words:600
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