ST. CHARLES, Md., Aug. 13 /PRNewswire-FirstCall/ -- American
Community Properties Trust ("ACPT" or the "Company") (NYSE Amex:
APO), a diversified real estate organization, today announced
results for the six and three month periods ended June 30, 2009.
For the six months ended June 30, 2009, the Company reported net
income attributable to ACPT shareholders of $688,000, or $0.13 per
basic and diluted share, on revenue of $21,355,000. This compares
to a net loss attributable to ACPT shareholders of $1,371,000, or
$0.26 per basic and diluted share, on revenue of $26,760,000 for
the same period in 2008. For the quarter ended June 30, 2009, the
Company reported net income attributable to ACPT shareholders of
$858,000, or $0.16 per basic and diluted share, on revenues of
$11,969,000. This compares to a net loss attributable to ACPT
shareholders of $178,000, or $0.03 per basic and diluted share, on
revenues of $14,620,000 for the same period in 2008. Net income
attributable to ACPT shareholders for the six and three month
periods ended June 30, 2009 included income from discontinued
operations for our multifamily apartment holdings in Puerto Rico
and Baltimore, Maryland. The Company reported a loss from
continuing operations of $308,000 compared to a loss of $567,000
for the six months ended June 30, 2009 and 2008, respectively. For
the quarter ended June 30, 2009, the Company reported a loss from
continuing operations of $145,000 compared to a loss of $121,000
during the second quarter of 2008. Steve Griessel, Chief Executive
Officer, noted that the greater efficiency in apartments was a key
factor in the Company's improved results. "Our focus on cost
control and customer service resulted in improvements to net
operating income, which increased 6% compared to the same period
last year," said Mr. Griessel. "We believe this trend will continue
to have a positive impact on our results in future quarters. In
addition, Lennar Corp. has reported to us strong demand
particularly for new townhomes in St. Charles' Fairway Village in
the first six months of this year resulting in a substantial
decrease in their St. Charles lot inventory. We expect that this
improved sales pace, combined with the agreements signed with
additional builders in the first quarter of this year, will lead to
improved demand for lots over the final six months of 2009."
Matthew M. Martin, Chief Financial Officer, said that for the six
months ended June 30, 2009, consolidated rental revenue increased
$293,000, or 2%, to $17,172,000, compared to the same period of
2008. "The increase was primarily attributable to increased leasing
in the Company's Parque Escorial office building, as well as,
overall rent increases at properties in the United States and
Puerto Rico, offset by an increase in vacancies in the United
States," said Mr. Martin. Mr. Martin also noted that the Company
uses net operating income(1) ("NOI") and funds from operations(2)
("FFO") to assess the results of the Company's operations and to
help investors understand the Company's performance. In the United
States, NOI increased 3% and 5%, to $9,579,000 and $4,871,000
during the six months and three month periods ended June 30, 2009,
respectively. Mr. Martin explained that the increase was due to
annual rent increases of 3% and the impact of cost savings
initiatives. In the United States, FFO decreased $916,000 and
$561,000, or 20% and 21%, to $3,681,000 and $2,060,000 for the six
and three month periods ended June 30, 2009, respectively. Mr.
Martin attributed the decrease to write-downs of the value of
rental properties in Baltimore, Maryland. Community development
land sales decreased $2,468,000, or 41%, in the first six months of
2009, compared to the same period last year. The Company reported
sales of 41 lots in its St. Charles, Maryland planned community,
compared to 69 lots in the first six months of 2008. "Our lot sales
for the second quarter are not reflective of home sales activities
as Lennar worked through selling their lot inventory on hand as of
December 31, 2008," said Mr. Griessel, who further noted that the
pace of sales of new homes within St. Charles, as reported to us by
Lennar, has improved. The number of contracts written for new homes
during the first half of 2009 has surpassed the entirety of home
sales in St. Charles for the year 2008. There were no unit sales
reported in Parque Escorial, compared to 12 units sold, totaling
$2,982,000, during the first six months of 2008. "The sales
environment for new condominiums in Puerto Rico remains very
difficult," said Mr. Griessel. The Company has six units in
inventory in Torres del Escorial section of Parque Escorial, and
one of those units is currently under contract. Due to the slow
pace of sales, Mr. Griessel said the Company does not project
selling its remaining inventory in 2009. Mr. Griessel said the
Company has started to benefit from actions taken by management in
the last six to nine months, and expects to continue to do so
throughout the rest of 2009 and into 2010. Mr. Griessel noted that:
-- the Company reported a decrease in general and administrative
costs for the six months ended June 30, 2009, of $653,000, or 13%,
compared to the first six months of 2008. Mr. Griessel said the
reduction was the result of the reorganization and cost-savings
initiatives implemented in the fourth quarter of 2008. -- the
Company has executed lot sales agreements with three national
homebuilders -- Lennar, NVR, and Richmond American -- and that the
latter two homebuilders are expected to begin purchasing lots in
St. Charles' Fairway Village in the third quarter of 2009. Mr.
Griessel said that the Company believes that the combination of the
existing lot sales agreements will help improve the pace and timing
of lot sales in St. Charles. -- the Company expects to take
occupancy of the first units at Gleneagles, a 184-unit apartment
property currently under construction in St. Charles, in the fourth
quarter of 2009. -- the Company expects to complete the sale of the
Puerto Rico multifamily apartment holdings in the third quarter of
2009. -- the Company continues to attempt to execute the plan to
strategically dispose of the Baltimore multifamily holdings. Three
of the properties have firm commitments and are awaiting approval
for loan assumption. The other two were recently re-listed. ACPT's
operating results should be evaluated over an extended period of
time due to the cyclical nature of its business. Company
Information ACPT (NYSE Amex: APO) is a diversified real estate
organization with operations in Maryland and Puerto Rico that
specializes in community development, homebuilding, investment in
rental properties, and asset management services. ACPT is currently
listed on the NYSE Amex under the symbol AmCmntyProp (APO). When
filed, ACPT's Form 10-Q will be available via the Internet at
http://www.acptrust.com/. Certain matters within this press release
may be deemed to be forward-looking statements within the meaning
of the federal securities laws. Investors are cautioned that all
forward-looking statements involve risks, uncertainties, and other
factors that could cause actual results to differ materially from
those in the forward-looking statement. Forward-looking statements
relate to anticipated revenues, gross margins, earnings, and the
growth of the market for our products. Numerous factors could cause
results to differ, including but not limited to, changes in market
demand and acceptance of the Company's products, impact of
competitive products and pricing, dependence on third-party
customers (specifically Lennar Corp.), dependence on third-party
suppliers, changes in government regulations, general economic
conditions, the current slowdown in the U.S. economy, our ability
to find suitable financing for our development activities, the
normal cyclical nature of the real estate industry, and changes in
our tax status. Although the Company believes the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its
expectations will be attained. For more information on the risks
that may affect the Company's operations, business and prospects,
please refer to the Company's Annual Report on Form 10-K for the
year ended December 31, 2008, which is on file with the Securities
and Exchange Commission as well as, when filed, the quarterly
report on Form 10-Q for the six and three month periods ended June
30, 2009. (1) Net Operating Income ("NOI") is calculated as real
estate rental revenue less real estate operating expense. NOI is a
non-GAAP measure. Management believes that NOI is helpful to
investors as it captures the performance of our real estate
operations in a measure that is comparable with other entities that
have different capitalization. (2) Funds From Operations ("FFO") is
a non-GAAP financial measure, that we believe, when considered with
the financial statements, prepared in accordance with GAAP, is
helpful to investors in understanding our performance because it
captures features particular to real estate performance by
recognizing that real estate generally appreciates over time or
maintains residual value to a much greater extent than do other
depreciable assets such as machinery, computers or other personal
property. The Company computes FFO in accordance with the Board of
Governors of the National Association of Real Estate Investment
Trusts, or NAREIT, which defines FFO as net income (loss) computed
in accordance with GAAP, excluding gains or losses from sales of
depreciable property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures.
AMERICAN COMMUNITY PROPERTIES TRUST Unaudited Financial Highlights
(in thousands, except per share amounts) Six Months Ended Three
Months Ended June 30, June 30, June 30, June 30, 2009 2008 2009
2008 -------- -------- -------- -------- Revenues $21,355 $26,760
$11,969 $14,620 Expenses 17,599 23,299 9,516 12,670 ------ ------
----- ------ Operating Income 3,756 3,461 2,453 1,950 Other
Expenses (5,093) (4,303) (2,458) (2,173) ------ ------ ------
------ (Loss) income before (benefit) provision for income taxes
(1,337) (842) (5) (223) (Benefit) provision for income taxes
(1,029) (275) 140 (102) Discontinued operations, net of applicable
taxes 2,288 517 1,522 105 ----- --- ----- --- Consolidated net
income (loss) 1,980 (50) 1,377 (16) Less: Net income attributable
to noncontrolling interest 1,292 1,321 519 162 ----- ----- --- ---
Net income (loss) attributable to ACPT $688 $(1,371) $858 $(178)
==== ======= ==== ===== Earnings per share attributable to common
shareholders Basic and Diluted $0.13 $(0.26) $0.16 $(0.03) Weighted
average shares outstanding Basic and diluted 5,223 5,212 5,223
5,213 U.S. Operating Real Estate Operations For the six months
ended June 30, June 30, 2009 2008 ---- ---- Operating revenues
$16,727 $16,683 Operating expenses 7,148 7,422 ----- ----- Net
operating income 9,579 9,261 Management and other fees,
substantially all from related entities 47 79 General,
administrative, selling and marketing (859) (727) Depreciation
(2,331) (2,529) ------ ------ Operating income 6,436 6,084 Other
expense (4,196) (3,868) ------ ------ Income before provision for
income taxes 2,240 2,216 Provision for income taxes 327 446 --- ---
Income from continuing operations 1,913 1,770 Discontinued
operations (563) (250) ---- ---- Consolidated net income $1,350
$1,520 ====== ====== Depreciation 2,331 3,077 ----- ----- FFO
$3,681 $4,597 ====== ====== For the three months ended June 30,
June 30, -------------------------- 2009 2008 ---- ---- Operating
revenues $8,432 $8,388 Operating expenses 3,561 3,748 ----- -----
Net operating income 4,871 4,640 Management and other fees,
substantially all from related entities 15 41 General,
administrative, selling and marketing (477) (390) Depreciation
(1,172) (1,178) ------ ------ Operating income 3,237 3,113 Other
expense (2,107) (1,933) ------ ------ Income before provision for
income taxes 1,130 1,180 Provision for income taxes 274 (93) ---
--- Income from continuing operations 856 1,273 Discontinued
operations 33 (106) -- ---- Consolidated net income $889 $1,167
==== ====== Depreciation 1,171 1,454 ----- ----- FFO $2,060 $2,621
====== ====== Puerto Rican Operating Real Estate Operations For the
six months ended June 30, June 30, 2009 2008 ---- ---- Operating
revenues $445 $196 Operating expenses 335 307 --- --- Net operating
income 110 (111) Management and other fees, substantially all from
related entities 76 74 General, administrative, selling and
marketing (501) (561) Depreciation (114) (113) ---- ---- Operating
loss (429) (711) Other expense (304) (308) ---- ---- Loss before
(benefit) provision for income taxes (733) (1,019) (Benefit)
provision for income taxes (612) 277 ---- --- Loss from continuing
operations (121) (1,296) Discontinued operations 2,851 767 -----
--- Consolidated net income (loss) $2,730 $(529) ====== =====
Depreciation 114 1,883 --- ----- FFO $2,844 $1,354 ====== ======
For the three months ended June 30, June 30,
-------------------------- 2009 2008 ---- ---- Operating revenues
$245 $90 Operating expenses 184 151 --- --- Net operating income 61
(61) Management and other fees, substantially all from related
entities 38 37 General, administrative, selling and marketing (247)
(294) Depreciation (57) (56) --- --- Operating income (205) (374)
Other expense (113) (106) ---- ---- Loss before (benefit) provision
for income taxes (318) (480) (Benefit) provision for income taxes
(246) 23 ---- -- Loss from continuing operations (72) (503)
Discontinued operations 1,489 211 ----- --- Consolidated net income
(loss) $1,417 $(292) ====== ===== Depreciation 57 948 -- --- FFO
$1,474 $656 ====== ==== DATASOURCE: American Community Properties
Trust CONTACT: Craig J. Renner, +1-301-843-8600 Web Site:
http://www.acptrust.com/
Copyright