American Spectrum Realty, Inc. (AMEX: AQQ) (“the Company”), a
real estate investment, management and leasing company
headquartered in Houston, Texas, announced today its results for
the year ended December 31, 2011.
Rental revenue for the year ended December 31, 2011 increased by
$20.0 million, or 44%, in comparison to the year ended December 31,
2010. The increase in rental revenue was primarily due to the
consolidation of variable interest entities (“VIE”), which resulted
in additional rental revenues of approximately $23.1 million.
Rental revenue for properties owned other than through VIE’s
decreased by approximately $3.1 million. This decrease was
primarily due to a decrease in weight average occupancy. The
decrease was also attributable to a decline in rental rates.
Third party management and leasing revenue increased by
approximately $0.2 million for the year ended December 31, 2011
when compared to the year ended December 31, 2010. The increase was
principally due to an increase in third party leasing commissions
and transaction fees.
Property operating expenses increased by approximately $4.5
million, or 24%, in comparison to the year ended December 31, 2011.
The increase was primarily due to the consolidation of VIE’s, which
accounted for an increase of approximately $8.3 million. Property
operating expenses for properties owned other than through VIE’s
decreased by approximately $3.8 million. This decrease was in large
part attributable to a decrease in utilities and repair and
maintenance costs. The decrease was also due to a decrease in
personnel costs and property taxes.
Net loss from continuing operations for the year ended December
31, 2011 increased by approximately $3.3 million, or 23%, when
compared to the year ended December 31, 2010.
Net income attributable to common stockholders for the year
ended December 31, 2011 was $3.8 million, or $1.32 per share,
compared to net loss of $8.3 million, or $2.76 per share for the
year ended December 31, 2010. The net income for the year ended
December 31, 2011 included income from discontinued operations of
$17.3 million, compared to a loss from discontinued operations of
$0.8 million for the year ended December 31, 2010.
The Company’s Funds From Operations (FFO), a widely accepted
supplemental measure of REIT performance established by the
National Association of Real Estate Investment Trusts, was $2.1
million for the year ended December 31, 2011 compared to $(4.1)
million for the year ended December 31, 2010. The Company’s
business is the ownership, operation and management of real estate.
It believes that FFO is helpful to investors when measuring
operating performance because it excludes various items that are
considered in the determination of net income or loss that do not
relate to or are not indicative of operating performance, such as
gains or losses from sales of operating properties and depreciation
and amortization, which can make periodic and peer analyses of
operating performance more difficult. The following table reflects
the reconciliation of FFO to net income (loss) attributable to the
Company, the most directly comparable Generally Accepted Accounting
Principles measure, for the years ended December 31, 2011 and 2010
(in thousands):
Year Ended December 31, 2011
2010 Net income (loss) attributable to the Company $
3,999 $ (8,037) Depreciation and amortization from discontinued
operations 1,921 4,878 Gain on sale of discontinued operations
attributable to the Company (17,129) (4,315) Deferred income tax
expense (benefit) 2,115 (5,108) Depreciation and amortization
attributable to the Company’s owned properties 11,203 8,456 FFO $
2,109 $ (4,126)
The increase in FFO for the year ended December 31, 2011
comparison to the year ended December 31, 2010 was primarily due to
a gain recognized on litigation settlement.
American Spectrum Realty, Inc. is a real estate investment
company that owns, through its operating partnership, interest in
office, industrial, self-storage, retail properties, and
multi-family properties throughout the United States. The company
has been publicly traded since 2001. American Spectrum Realty
Management, LLC is a wholly-owned subsidiary of the Company’s
operating partnership that manages and leases all properties owned
by American Spectrum Realty, Inc. as well as third-party
clients.
ASRM provides first-class management and leasing services for
over 95 office, industrial, retail, self-storage, and multi-family
properties, totaling over 11 million square feet in 18 states.
Certain matters discussed in this release are forward-looking
statements that are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
including the risks and uncertainties of acquiring, owning,
operating and disposing of real estate. Such risks and
uncertainties are disclosed in the Company’s past and current
filings with the U.S. Securities and Exchange Commission.
- Financial Tables Follow -
AMERICAN SPECTRUM REALTY,
INCCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands,
except per share amounts)
Year Ended December
31, 2011 2010 REVENUES: Rental
revenue $ 65,146 $ 45,185 Third party management and leasing
revenue 3,859 3,692 Interest income 345 324
Total revenues 69,350 49,201
EXPENSES: Property operating expense 22,789 18,337
Corporate general and adminstrative 11,916 9,659 Depreciation and
amortization 29,189 18,937 Interest expense 27,096 17,754
Impairment of real estate assets 4,485 3,387
Total expenses 95,475 68,074
OTHER INCOME: Gain on litigation settlement 4,076 -
Other income 485 - Total other income
4,561 - Loss from continuing
operation before deferred income tax benefit (21,564 ) (18,873 )
Deferred income tax benefit 4,035 4,661
Loss from continuing operations (17,529 )
(14,212 )
Discontinued
operations:
Loss from operations (2,553 ) (5,546 ) Gain on sale and foreclosure
of discontinued operations 26,016 4,315 Income tax (expense)
benefit (6,150 ) 447 Income (loss) from
discontinued operations 17,313 (784 ) Net Loss,
including non-controlling interests (216 ) (14,996 ) Plus:
Net income attributable to non-controlling interests 4,215
6,959 Net Income (Loss) attributable to
American Spectrum Realty, Inc. 3,999 (8,037 )
Less: Preferred stock dividend (240 ) (240 ) Net
Income (Loss) attributable to American Spectrum Realty, Inc. common
stockholders
$ 3,759 $ (8,277
) Basic and diluted per share data: Loss from
continuing operations attributable to American Spectrum Realty,
Inc. common stockholders ($1.79 ) $ (2.66 )
Income (Loss) from discontinued operations
attributable to American Spectrum Realty, Inc. common
stockholders
3.11 (0.10 ) Net Income (Loss) attributable to
American Spectrum Realty, Inc. common stockholders $ 1.32 $
(2.76 ) Basic and diluted weighted average shares used
3,008,836 2,916,836 Amounts attributable to American
Spectrum Realty, Inc. common stockholders: Loss from continuing
operations $ (5,605 ) $ (7,998 ) Income (Loss) from discontinuing
operations 9,364 (279 ) Net
Income (Loss)
$ 3,759 $
(8,277 )
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