ST. CHARLES, Md., Nov. 16 /PRNewswire-USNewswire/ -- American
Community Properties Trust (ACPT) (NYSE Amex: APO) today reported a
loss from continuing operations of $723,000, or $0.13 per share, on
revenues of $33,406,000 for the nine months ended September 30,
2009. Net income was $25,262,000, or $4.76 per share, due to the
sale of the Puerto Rico multifamily apartment operations. This
compares to a loss from continuing operations of $534,000, or $0.11
per share, on revenues of $36,653,000 for the nine months ended
September 30, 2008, with a net loss of $2,001,000, or $0.38 per
share. For the quarter ended September 30, 2009, the Company
reported a loss from continuing operations of $414,000, or $0.07
per share, on revenues of $12,051,000. Net income was $24,575,000,
or $4.63 per share, due to the sale of the Puerto Rico multifamily
apartment operations. This compares to income from continuing
operations of $33,000 on revenue of $9,892,000 for the third
quarter 2008, with a net loss of $630,000, or $0.12 per share.
"Completing the sale of our Puerto Rico apartments was clearly our
most significant accomplishment in the third quarter," said Steve
Griessel, Chief Executive Officer. "The transaction has had a
positive impact on our earnings and balance sheet. More importantly
though, the completion of this transaction also gives us needed
capital to stabilize our business as well as provide us with the
flexibility to capitalize our U.S. land development business and
thus accomplishes a strategic imperative set by the Company a year
ago. Matthew M. Martin, Chief Financial Officer, noted that as a
result of the sale of the Puerto Rico apartments, the Company
removed $57.5 million of asset, $85.1 million of liabilities and
recorded a total gain on sale of $25.3 million, which is
significantly greater than the $14.3 million gross consideration
received. This difference represents certain distributions and
losses in excess of limited partners' basis that was previously
required to be absorbed by the Company. As these multifamily
apartment partnerships are no longer included in the Company's
consolidated financial results, we were able to recognize these
previously absorbed distributions and losses in excess of basis. In
addition, the Company is required to pay a 29% Puerto Rico
withholding tax on the gross proceeds from the sale. Related to
continuing operations, Mr. Martin noted that rental property
revenues increased $366,000, or 1%, for the nine months ended
September 30, 2009, compared to the same period of 2008. Mr. Martin
attributed the increase to overall rent increases at its apartment
properties offset in part by increases in vacancies. Mr. Martin
noted that expenses related to rental property operations decreased
$43,000 for the nine-months ended September 30, 2009 compared to
2008 but increased $202,000 in the third quarter of 2009, compared
to the third quarter of 2008. Overall, net operating income
(NOI(1)) from the Company's apartment operations increased $409,000
for the nine month period ended September 30, 2009 but decreased by
$128,000 for the third quarter 2009 as compared to the same periods
of 2008. "In the third quarter of 2009, we experienced nominal
increases in vacancies, concessions and bad debt expenses as
compared to the same quarter in 2008," said Mr. Martin, adding "our
efforts to compress other operating expenses have proved successful
in maintaining NOI growth for the nine month period in spite of
these difficulties." Mr. Martin reported that community development
land sales for the nine months ended September 30, 2009 totaled
$6,992,000 compared to $6,457,000 for the same period of 2008, an
increase of $535,000. For the quarter ended September 30, 2009,
community development land sales totaled $3,462,000, compared to
$460,000 for the same three months of 2008. Mr. Griessel attributed
the increase in community development land sales between periods to
improved lot sales in St. Charles. "Sales of residential lots have
been much stronger in St. Charles in 2009, due to improved pricing,
continued low interest rates, and the federal tax credit for first
time buyers," said Mr. Griessel. "While it is too soon to predict a
rebound in the housing market at large, we are cautiously
optimistic that the pace of lot sales in St. Charles will remain
steady. However, our commercial sales have declined significantly
which is consistent with the overall condition of the market." Mr.
Griessel noted that the weak Puerto Rico residential housing market
has slowed the pace of sales appreciably for the remaining
condominium units in Torres del Escorial. The Company reported
homebuilding sales of $246,000 for the nine months ended September
30, 2009, compared to $3,476,000 for the same period last year, a
decrease of $3,230,000. As of September 30, 2009, five units remain
in inventory. For the three months ended September 30, 2009, the
Company reported homebuilding sales of $246,000, compared to
$494,000 for the same three months of 2008, a decrease of $248,000.
Compared to the same period of 2008, general and administrative
expenses decreased $76,000 for the nine months ended September 30,
2009 and increased $655,000 for the third quarter 2009, which
included $937,000 of costs associated with the previously announced
sale transaction with Federal Capital Partners. The Company has
diligently worked to reduce its general and administrative expenses
as evidenced by the overall decline for the nine month period in
spite of the transaction costs. Mr. Griessel emphasized that the
Company's operating results should be evaluated over an extended
period of time due to the cyclical nature of its business. When
filed, ACPT's Form 10-Q will be available via the Internet at
http://www.acptrust.com/. 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 stock exchange
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 products, impact of competitive
products and pricing, dependence on third-party customers
(specifically Lennar Corp.), dependence on third-party suppliers,
changes in government regulations, the normal cyclical nature of
the real estate industry and development economy 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, 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 nine-month period ended September 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. AMERICAN COMMUNITY PROPERTIES TRUST
Unaudited Financial Highlights (in thousands, except per share
amounts) Nine Months Ended Three Months Ended September September
September 30, September 30, 2009 30, 2008 2009 30, 2008 ---------
--------- ------------- --------- Revenues $33,406 $36,653 $12,051
$9,892 Expenses 28,177 31,750 10,577 8,451 ------ ------ ------
----- Operating Income 5,229 4,903 1,474 1,441 Other Expenses
(7,556) (6,474) (2,462) (2,170) ------ ------ ------ ------ Loss
before benefit for income taxes (2,327) (1,571) (988) (729) Benefit
for income taxes (1,604) (1,037) (574) (762) ------ ------ ----
---- (Loss) income from continuing operations (723) (534) (414) 33
Discontinued operations, net of applicable taxes 1,338 224 (950)
(293) Gain on sale of discontinued operations, net of applicable
taxes 25,351 - 25,351 - ------ - ------ - Consolidated net income
(loss) 25,966 (310) 23,987 (260) Less: Net income (loss)
attributable to noncontrolling interest 704 1,691 (588) 370 ---
----- ---- --- Net income (loss) attributable to ACPT $25,262
$(2,001) $24,575 $(630) ======= ======= ======= ===== Earnings per
share attributable to common shareholders Basic and Diluted $4.76
$(0.38) $4.63 $(0.12) Weighted average shares outstanding Basic and
diluted 5,312 5,215 5,312 5,222 U.S. Operating Real Estate
Operations For the nine September 30, September 30, months ended
2009 2008 ------- ------ Operating revenues $25,022 $25,107
Operating expenses 10,943 11,034 ------ ------ Net operating income
14,079 14,073 Management and other fees, substantially all from
related entities 58 117 General, administrative, selling and
marketing (1,346) (1,063) Depreciation (3,534) (3,735) ------
------ Operating income 9,257 9,392 Other expense (6,452) (5,944)
------ ------ Income before provision for income taxes 2,805 3,448
Provision for income taxes 131 366 --- --- Income from continuing
operations 2,674 3,082 Discontinued operations (533) (357) ----
---- Consolidated net income $2,141 $2,725 ====== ====== September
September 30, 30, 2009 2008 For the three months ended -------
------ ------------- Operating revenues $8,295 $8,423 Operating
expenses 3,795 3,612 ----- ----- Net operating income 4,500 4,811
Management and other fees, substantially all from related entities
10 38 General, administrative, selling and marketing (487) (334)
Depreciation (1,204) (1,205) ------ ------ Operating income 2,819
3,310 Other expense (2,255) (2,075) ------ ------ Income before
provision for income taxes 564 1,235 Provision for income taxes
(212) (81) ---- --- Income from continuing operations 776 1,316
Discontinued operations 29 (108) -- ---- Consolidated net income
$805 $1,208 ==== ====== Puerto Rican Operating Real Estate
Operations For the nine September September months ended 30, 30,
2009 2008 ---- ---- Operating revenues $750 $299 Operating expenses
511 479 --- --- Net operating income 239 (180) Management and other
fees, substantially all from related entities 164 111 General,
administrative, selling and marketing (443) (754) Depreciation
(171) (170) ---- ---- Operating income (loss) (211) (993) Other
expense (207) (458) ---- ---- Loss before (benefit) provision for
income taxes (418) (1,451) Benefit for income taxes - (14) --- Loss
from continuing operations (418) (1,437) Discontinued operations
1,871 581 Gain on sale of discontinued operations 25,351 - ------ -
Total discontinued operations 26,804 581 ====== === Consolidated
net income (loss) $26,804 $(856) ======= ===== September September
For the three 30, 30, months ended 2009 2008 ------------- ----
---- Operating revenues $305 $103 Operating expenses 175 173 ---
--- Net operating income 130 (70) Management and other fees,
substantially all from related entities 88 37 General,
administrative, selling and marketing 3 (192) Depreciation (2) (57)
-- --- Operating income (loss) 219 (282) Other expense 96 (150) --
---- Income (loss) before benefit for income taxes 315 (432)
Provision (benefit) for income taxes 612 (292) --- ---- Loss from
continuing operations (297) (140) Discontinued operations (979)
(185) Gain on sale of discontinued operations 25,351 - ------ -
Total discontinued operations 24,372 (185) ------ ---- Consolidated
net income (loss) $24,075 $(325) ======= ===== DATASOURCE: American
Community Properties Trust CONTACT: Craig Renner of American
Community Properties Trust, +1-301-843-8600 Web Site:
http://www.acptrust.com/
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