Nevada | 75-2847135 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |||
1800 Valley View Lane, Suite 300 Dallas, Texas | ||||
(Address of principal executive offices) | ||||
75234 | ||||
(Zip Code) | ||||
(469) 522-4200 | ||||
(Former name, former address and former fiscal year, if changed since last report) |
Common Stock, $.01 par value | 10,149,000 |
(Class) | (Outstanding at November 10, 2005)* |
September 30, 2005 | December 31, 2004 | ||||||
(dollars in thousands) | |||||||
Assets | |||||||
Real estate held for investment | $ | 940,969 | $ | 877,677 | |||
Less—accumulated depreciation | (151,577 | ) | (157,138 | ) | |||
789,392 | 720,539 | ||||||
Real estate held for sale, net of depreciation | 162,429 | 192,533 | |||||
Real estate subject to sales contract | 69,141 | 70,350 | |||||
Notes and interest receivable | |||||||
Performing ($44,298 in 2005 and $43,605 in 2004 from affiliates) | 70,185 | 67,894 | |||||
Non-performing | 5,896 | 6,632 | |||||
76,081 | 74,526 | ||||||
Less—allowance for estimated losses | (1,000 | ) | (1,865 | ) | |||
75,081 | 72,661 | ||||||
Restaurant equipment | 13,764 | 13,747 | |||||
Less—accumulated depreciation | (7,233 | ) | (6,608 | ) | |||
6,531 | 7,139 | ||||||
Marketable securities, at market value | 7,508 | 6,670 | |||||
Cash and cash equivalents | 16,538 | 22,401 | |||||
Investments in real estate entities | 9,289 | 8,212 | |||||
Goodwill, net of accumulated amortization ($1,763 in 2005 and 2004) | 11,858 | 11,858 | |||||
Other intangibles, net of accumulated amortization ($583 in 2005 and $871 in 2004) | 1,463 | 1,480 | |||||
Other assets ($38,884 in 2005 and $27,704 in 2004 from affiliate) | 107,791 | 77,000 | |||||
$ | 1,257,021 | $ | 1,190,843 |
September 30, 2005 | December 31, 2004 | ||||||
(dollars in thousands) | |||||||
Liabilities and Stockholders’ Equity | |||||||
Liabilities | |||||||
Notes and interest payable ($45,555 in 2005 and $36,298 in 2004 to affiliates) | $ | 758,159 | $ | 722,985 | |||
Liabilities related to assets held for sale | 146,121 | 156,959 | |||||
Liabilities subject to sales contract | 59,488 | 59,977 | |||||
Margin borrowings | 22,548 | 18,663 | |||||
Accounts payable and other liabilities ($7,466 in 2005 and $2,557 in 2004 to affiliates) | 76,787 | 71,357 | |||||
1,063,103 | 1,029,941 | ||||||
Commitments and contingencies | |||||||
Minority interest | 57,089 | 57,893 | |||||
Stockholders’ equity | |||||||
Preferred Stock, $2.00 par value, authorized 50,000,000 shares, issued and outstanding | |||||||
Series A, 3,469,326 shares in 2005 and 3,469,350 shares in 2004 (liquidation preference | 5,139 | 5,139 | |||||
$34,693), including 900,000 shares in 2005 and 2004 held by subsidiaries. | |||||||
Series E, 50,000 shares in 2005 and 2004 (liquidation preference $500) | 100 | 100 | |||||
Common Stock, $.01 par value, authorized 100,000,000 shares; issued 11,392,272 shares in 2005 and 2004 | 114 | 114 | |||||
Treasury stock, at cost, 1,243,272 shares in 2005 and 2004 | (15,146 | ) | (15,146 | ) | |||
Paid-in capital | 91,789 | 91,789 | |||||
Retained earnings | 54,648 | 22,561 | |||||
Accumulated other comprehensive income (loss) | 185 | (1,548 | ) | ||||
136,829 | 103,009 | ||||||
$ | 1,257,021 | $ | 1,190,843 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
(dollars in thousands) | |||||||||||||
Property revenue: | |||||||||||||
Rental and other property revenues ($545 in nine months of 2005 and $933 in nine months of 2004 from affiliates) | $ | 44,704 | $ | 39,389 | $ | 124,050 | $ | 113,250 | |||||
Restaurant sales | 9,298 | 8,667 | 27,331 | 25,659 | |||||||||
Total operating revenues | 54,002 | 48,056 | 151,381 | 138,909 | |||||||||
Expenses: | |||||||||||||
Property operating expenses ($5,997 in nine months of 2005 and $3,895 in nine months of 2004 to affiliates) | 29,950 | 27,529 | 85,451 | 83,061 | |||||||||
Restaurant cost of sales | 7,014 | 6,788 | 20,908 | 19,925 | |||||||||
Depreciation and amortization | 4,748 | 5,843 | 16,180 | 17,237 | |||||||||
General and administrative ($3,326 in nine months of 2005 and $3,290 in nine months of 2004 to affiliates) | 3,643 | 2,613 | 11,290 | 11,474 | |||||||||
Advisory fee to affiliate | 3,206 | 2,934 | 8,844 | 8,162 | |||||||||
Total operating expenses | 48,561 | 45,707 | 142,673 | 139,859 | |||||||||
Operating income (loss) | 5,441 | 2,349 | 8,708 | (950 | ) | ||||||||
Other income (expense): | |||||||||||||
Interest income from notes receivable ($2,493 in nine months of 2005 and $1,915 in nine months of 2004 from affiliates) | 1,188 | 855 | 4,025 | 3,514 | |||||||||
Gain on foreign currency transaction | 37 | 543 | 265 | 1,791 | |||||||||
Gain on settlement of debt | — | 2,268 | — | 2,268 | |||||||||
Other income (expense) | 1,215 | 72 | 2,186 | (136 | ) | ||||||||
Mortgage and loan interest ($1,731 in nine months of 2005 and $1,845 in nine months of 2004 to affiliates) | (16,336 | ) | (15,121 | ) | (46,712 | ) | (44,724 | ) | |||||
Discount on sale of notes receivable | (15 | ) | 9 | (15 | ) | (389 | ) | ||||||
Net income fee to affiliate | (2,136 | ) | — | (2,950 | ) | — | |||||||
Incentive fee to affiliate | (904 | ) | — | (909 | ) | — | |||||||
Litigation settlement | (130 | ) | (50 | ) | (130 | ) | (50 | ) | |||||
Total other income (expense) | (17,081 | ) | (11,424 | ) | (44,240 | ) | (37,726 | ) | |||||
Loss before gain on land sales, minority interest, and equity in earnings of investees | (11,640 | ) | (9,075 | ) | (35,532 | ) | (38,676 | ) | |||||
Gain on land sales | 5,435 | 827 | 34,525 | 4,579 | |||||||||
Minority interest | 336 | 1,474 | (408 | ) | (155 | ) | |||||||
Equity in income (loss) of investees | 71 | 56 | 283 | (144 | ) | ||||||||
Loss from continuing operations | (5,798 | ) | (6,718 | ) | (1,132 | ) | (34,396 | ) | |||||
Income (loss) from discontinued operations | 21,872 | (269 | ) | 35,168 | 19,341 | ||||||||
Net income (loss) | 16,074 | (6,987 | ) | 34,036 | (15,055 | ) | |||||||
Preferred dividend requirement | (650 | ) | (651 | ) | (1,949 | ) | (1,951 | ) | |||||
Net income (loss) applicable to Common shares | $ | 15,424 | $ | (7,638 | ) | $ | 32,087 | $ | (17,006 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
(dollars in thousands) | |||||||||||||
Basic and diluted earnings per share: | |||||||||||||
Loss from continuing operations | $ | (.64 | ) | $ | (.70 | ) | $ | (.30 | ) | $ | (3.43 | ) | |
Income (loss) from discontinued operations | 2.16 | (.03 | ) | 3.46 | 1.83 | ||||||||
Net income (loss) applicable to Common shares | $ | 1.52 | $ | (.73 | ) | $ | 3.16 | $ | (1.60 | ) | |||
Weighted average Common shares used in computing earnings per share: | |||||||||||||
Basic and diluted | 10,149,000 | 10,532,796 | 10,149,000 | 10,596,902 |
Series A Preferred Stock | Series E Preferred Stock | Common Stock | Treasury Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Stockholders’ Equity | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Balance, January 1, 2005 | $ | 5,139 | $ | 100 | $ | 114 | $ | (15,146 | ) | $ | 91,789 | $ | 22,561 | $ | (1,548 | ) | $ | 103,009 | |||||||
Comprehensive income | |||||||||||||||||||||||||
Unrealized gain on foreign currency translation | — | — | — | — | — | — | 805 | 805 | |||||||||||||||||
Unrealized gain on marketable securities | — | — | — | — | — | — | 928 | 928 | |||||||||||||||||
Net income | — | — | — | — | — | 34,036 | — | 34,036 | |||||||||||||||||
35,769 | |||||||||||||||||||||||||
Repurchase of Preferred Stock | — | — | — | — | — | — | — | — | |||||||||||||||||
Preferred dividends | |||||||||||||||||||||||||
Series A Preferred Stock ($.75 per share) | — | — | — | — | ¾ | (1,927 | ) | — | (1,927 | ) | |||||||||||||||
Series E Preferred Stock ($.45 per share) | — | — | — | — | ¾ | (22 | ) | — | (22 | ) | |||||||||||||||
Balance, September 30, 2005 | $ | 5,139 | $ | 100 | $ | 114 | $ | (15,146 | ) | $ | 91,789 | $ | 54,648 | $ | 185 | $ | 136,829 |
For the Nine Months Ended September 30, | |||||||
2005 | 2004 | ||||||
(dollars in thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 34,036 | $ | (15,055 | ) | ||
Adjustments to reconcile net income to net cash used in operating activities | |||||||
Gain on sale of land and real estate | (72,196 | ) | (31,360 | ) | |||
Depreciation and amortization | 16,893 | 22,644 | |||||
Amortization of deferred borrowing costs | 5,198 | 6,073 | |||||
Discount on sale of notes receivable | 15 | 389 | |||||
Gain on settlement of debt | ¾ | (2,268 | ) | ||||
Litigation settlement | ¾ | 50 | |||||
Provision for asset impairment | ¾ | 3,444 | |||||
Equity in (income) loss of investees | (283 | ) | 144 | ||||
Gain on foreign currency transaction | (265 | ) | (1,791 | ) | |||
Decrease in accrued interest receivable | 999 | 680 | |||||
(Increase) decrease in other assets | (7,472 | ) | 6,088 | ||||
Increase (decrease) in accrued interest payable | (1,514 | ) | 1,798 | ||||
Increase in accounts payable and other liabilities | 5,886 | 3,481 | |||||
Decrease in minority interest | (792 | ) | (1,125 | ) | |||
Net cash used in operating activities | (19,495 | ) | (6,808 | ) | |||
Cash Flows From Investing Activities: | |||||||
Collections on notes receivable | 4,069 | 2,361 | |||||
Proceeds from sale of notes receivable | 32,219 | 6,227 | |||||
Acquisition of real estate (including $498 in 2004 from affiliates and related parties) | (91,639 | ) | (26,084 | ) | |||
Restaurant equipment purchased | (627 | ) | (983 | ) | |||
Proceeds from sale of restaurant equipment | 278 | ¾ | |||||
Proceeds from sale of real estate | 109,441 | 108,637 | |||||
Notes receivable funded | (3,117 | ) | (90 | ) | |||
Earnest money/escrow deposits | (5,154 | ) | (3,344 | ) | |||
Investment in real estate entities | (475 | ) | (2,625 | ) | |||
Real estate improvements | (35,550 | ) | (137,501 | ) | |||
Distribution from equity investees | 318 | 47 | |||||
Proceeds from sale of marketable securities | 84 | — | |||||
Net cash provided by (used in) investing activities | 9,847 | (53,355 | ) | ||||
Cash Flows From Financing Activities: | |||||||
Proceeds from notes payable | 146,825 | 314,612 | |||||
Payments on notes payable | (110,681 | ) | (237,042 | ) | |||
Deferred borrowing costs | (3,274 | ) | (6,354 | ) | |||
Net payments to affiliates | (32,397 | ) | (6,465 | ) | |||
Repurchase of Common Stock | — | (1,443 | ) | ||||
Margin borrowings (payments), net | 3,878 | (623 | ) | ||||
Preferred dividends paid | (566 | ) | (910 | ) | |||
Net cash provided by financing activities | 3,785 | 61,775 | |||||
Net increase (decrease) in cash and cash equivalents | (5,863 | ) | 1,612 | ||||
Cash and cash equivalents, beginning of period | 22,401 | 9,543 | |||||
Cash and cash equivalents, end of period | $ | 16,538 | $ | 11,155 |
For the Nine Months Ended September 30, | |||||||
2005 | 2004 | ||||||
(dollars in thousands) | |||||||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid for interest | $ | 48,124 | $ | 52,478 | |||
Cash paid for income taxes, net of refunds | 570 | — | |||||
Schedule of non-cash investing and financing activities: | |||||||
Notes payable assumed by buyer on sale of real estate | $ | 21,963 | $ | 25,607 | |||
Notes receivable from sale of real estate | 34,404 | 10,448 | |||||
Acquisition of property in exchange for note receivable | 5,497 | 2,585 | |||||
Issuance of Preferred Stock | — | 2,500 | |||||
Note payable paid by affiliate | 700 | 10,823 | |||||
Refinancing proceeds received by affiliate | — | 20,037 | |||||
Notes payable assumed on purchase of real estate | — | 5,027 | |||||
Purchase of subsidiary from affiliate | 4,101 | ¾ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Net income (loss) applicable to Common shares, as reported | $ | 15,424 | $ | (7,638 | ) | $ | 32,087 | $ | (17,006 | ) | |||
Deduct: Total stock-based employee compensation expense determined under fair value based methods for all awards, net of related tax effects | — | — | 26 | 22 | |||||||||
Pro forma net income (loss) applicable to Common shares | $ | 15,424 | $ | (7,638 | ) | $ | 32,061 | $ | (17,028 | ) | |||
Earnings per share: | |||||||||||||
Basic and diluted, as reported | $ | 1.52 | $ | (.73 | ) | $ | 3.16 | $ | (1.60 | ) | |||
Basic and diluted, pro forma | $ | 1.52 | $ | (.73 | ) | $ | 3.16 | $ | (1.60 | ) |
Property | Location | Units / Sq. Ft./Acres | Purchase Price | Net Cash Paid/ (Received) | Debt Incurred | Interest Rate | Maturity Date | ||||
First Quarter | |||||||||||
Land | |||||||||||
Katrina(1) | Palm Desert, CA | 23.0 Acres | $4,184 | $— | $— | — | — | ||||
Keenan Bridge(2) | Farmers Branch, TX | 7.5 Acres | 510 | 14 | — | — | — | ||||
Mandahl Bay | US Virgin Islands | 50.8 Acres | 7,000 | 4,101 | 3,500 | 7.00 | % | 07/05 | (7) | ||
Mandahl Bay (Gilmore) | US Virgin Islands | 1.0 Acres | 96 | 104 | — | — | — | ||||
Mandahl Bay (Chung) | US Virgin Islands | .7 Acres | 95 | 101 | — | ¾ | — | ||||
Second Quarter | |||||||||||
Apartments | |||||||||||
Mission Oaks(4) | San Antonio, TX | 228 Units | 573 | 573 | — | 5.30 | 09/46 | ||||
Parc at Metro Center(4) | Nashville, TN | 144 Units | 817 | (378 | ) | 817 | 5.65 | 09/46 | |||
Land | |||||||||||
Alliance Airport (formerly Centurion) | Tarrant County, TX | 12.7 Acres | 850 | 892 | — | — | — | ||||
Mandahl Bay (Marina) | US Virgin Islands | 24.0 Acres | 2,000 | 2,101 | — | — | — | ||||
Mason Goodrich(1) | Houston, TX | 13.0 Acres | 1,360 | — | — | — | — | ||||
Southwood(5) | Tallahassee, FL | 12.9 Acres | 525 | 555 | — | — | — | ||||
West End(6) | Dallas, TX | .2 Acres | 49 | 52 | — | — | — | ||||
Office Buildings | |||||||||||
Park West | Farmers Branch, TX | 243,416 Sq. Ft. | 10,000 | 4,715 | 6,500 | 7.50 | (3) | 05/06 | |||
Third Quarter | |||||||||||
Apartments | |||||||||||
Legends of El Paso(4) | El Paso, TX | 240 Units | 2,247 | 464 | 1,774 | 5.50 | 01/47 | ||||
Land | |||||||||||
Luna | Farmers Branch, TX | 2.6 Acres | 250 | 257 | — | — | — | ||||
Mansfield | Mansfield, TX | 21.9 Acres | 1,450 | 577 | 943 | 7.50 | (3) | 03/07 | |||
Senlac | Farmers Branch, TX | 11.9 Acres | 625 | 643 | — | — | — | ||||
Whorton | Benton County, AR | 79.7 Acres | 4,332 | 702 | 3,828 | 6.08 | 01/07 | ||||
Wilmer 88 | Dallas, TX | 87.6 Acres | 638 | 668 | — | — | — | ||||
Office Buildings | |||||||||||
600 Las Colinas | Las Colinas, TX | 509,829 Sq. Ft. | 56,000 | 17,663 | 40,487 | (8) | 6.16 | 01/13 | |||
Fourth Quarter | |||||||||||
Land | |||||||||||
Alliance 8 | Tarrant County, TX | 8 Acres | 657 | 332 | 408 | 7.75 | % | 05/06 | |||
Alliance 52 | Tarrant County, TX | 51.9 Acres | 2,538 | 1,054 | 1,610 | 7.75 | 05/06 | ||||
Denton | Denton, TX | 25.9 Acres | 2,100 | 862 | 1,365 | 7.75 | (3) | 04/07 | |||
Pantaze | Dallas, TX | 6.0 Acres | 265 | 276 | — | — | — | ||||
Payne(9) | Las Colinas, TX | 109.8 Acres | 1,000 | 1,066 | — | — | — | ||||
TuTu | US Virgin Islands | 19.5 Acres | 1,350 | 1,401 | — | — | — | ||||
Woodmont-Bailey | Addison, TX | 1.9 Acres | 1,475 | 381 | 1,180 | — | — | ||||
Woodmont-Town Center | Addison, TX | 1.2 Acres | 400 | 102 | 320 | — | — | ||||
Woodmont-Veladi | Addison, TX | 2.1 Acres | 383 | 99 | 306 | — | — |
AMERICAN REALTY INVESTORS, INC.
Property | Location | Units / Sq. Ft./Acres | Purchase Price | Net Cash Paid/ (Received) | Debt Incurred | Interest Rate | Maturity Date | ||||
Shopping Centers | |||||||||||
Willowbrook | Coldwater, MI | 117,689 Sq. Ft. | 8,200 | 2,223 | 6,495 | 7.28 | 02/13 |
Property | Location | Units / Sq. Ft./Acres | Purchase Price | Net Cash Paid/ (Received) | Debt Incurred | Interest Rate | Maturity Date | |||
First Quarter | ||||||||||
Apartments | ||||||||||
288 City Park(1) | Houston, TX | 240 Units | $3,056 | $612 | $2,444 | 5.95 | % | 04/45 | ||
Blue Lake Villas II(1) | Waxahachie, TX | 70 Units | 729 | (164 | ) | 729 | 5.80 | 04/45 | ||
Bridges on Kinsey(1) | Tyler, TX | 232 Units | 2,291 | 596 | 1,687 | 5.74 | 08/45 | |||
Dakota Arms(1) | Lubbock, TX | 208 Units | 2,472 | 681 | 1,791 | 5.85 | 06/45 | |||
Lake Forest(1) | Houston, TX | 240 Units | 2,316 | (470 | ) | 2,316 | 5.60 | 03/45 | ||
Vistas of Vance Jackson(1) | San Antonio, TX | 240 Units | 3,550 | 771 | 2,779 | 5.78 | 06/45 | |||
Land | ||||||||||
Lubbock land | Lubbock, TX | 2.9 Acres | 224 | 224 | ¾ | — | — | |||
Meloy Road | Kent, OH | 54.2 Acres | 4,900 | 343 | 4,900 | 5.00 | (2) | 01/06 | ||
Railroad land | Dallas, TX | .3 Acres | 708 | 704 | — | — | — | |||
Second Quarter | ||||||||||
Apartments | ||||||||||
Treehouse(3) | Irving, TX | 160 Units | 8,017 | (498 | ) | 5,027 | (4) | 5.00 | 08/13 | |
Wildflower Villas(1) | Temple, TX | 220 Units | 2,045 | 79 | 1,966 | 5.99 | 10/45 | |||
Land | ||||||||||
Cooks Lane(1) | Ft. Worth, TX | 23.2 Acres | 1,000 | 1,034 | — | — | — | |||
Rogers(1) | Rogers, AR | 20.1 Acres | 1,390 | 619 | 1,130 | 10.50 | 04/05 | |||
Third Quarter | ||||||||||
Land | ||||||||||
Ladue | Farmers Branch, TX | 8.0 Acres | 1,743 | 659 | 1,207 | 6.65 | (2) | 06/06 | ||
Granbury Station | Ft. Worth, TX | 15.7 Acres | 923 | 236 | 738 | 7.00 | 09/07 | |||
AMERICAN REALTY INVESTORS, INC.
Property | Location | Units/Acres/ Sq. Ft. | Sales Price | Net Cash Received/ (Paid) | Debt Discharged | Gain on Sale | |||
First Quarter | |||||||||
Apartments | |||||||||
Longwood | Long Beach, MS | 200 Units | $6,456 | $9 | $6,253 | $56 | |||
Land | |||||||||
Granbury Station | Ft. Worth, TX | 15.7 Acres | 1,003 | 265 | 738 | 10 | |||
Katrina | Palm Desert, CA | 9.9 Acres | 2,616 | 574 | — | 1,323 | |||
Katrina | Palm Desert, CA | 13.6 Acres | 3,703 | 591 | — | 1,706 | |||
Katrina | Palm Desert, CA | 5.5 Acres | 1,325 | 1,281 | — | 619 | |||
Katrina | Palm Desert, CA | 6.5 Acres | 1,695 | 340 | — | 818 | |||
Katrina | Palm Desert, CA | 7.4 Acres | 2,028 | 455 | — | 1,072 | |||
Katrina | Palm Desert, CA | 81.2 Acres | 19,878 | (814 | ) | 5,100 | 9,387 | ||
Katrina | Palm Desert, CA | 24.8 Acres | 6,402 | 1,027 | — | 2,947 | |||
Katy | Katy, TX | 130.6 Acres | 12,400 | 4,981 | 6,601 | 5,630 | |||
Nashville | Nashville, TN | 1.2 Acres | 304 | 236 | — | 226 | |||
Vista Ridge | Lewisville, TX | 4.4 Acres | 950 | (92 | ) | 914 | 440 | ||
Office Buildings | |||||||||
Institute Place | Chicago, IL | 144,915 Sq. Ft. | 14,460 | 4,843 | 7,792 | 10,603 | |||
Industrial Warehouses | |||||||||
5700 Tulane | Atlanta, GA | 67,850 Sq. Ft. | 816 | 738 | — | 329 | |||
Second Quarter | |||||||||
Land | |||||||||
Lemmon Carlisle/Alamo Springs | Dallas, TX | 2.8 Acres | 7,674 | 5,627 | 1,744 | 2,729 | |||
Vista Ridge | Lewisville, TX | 17.9 Acres | 4,291 | (129 | ) | 4,096 | 2,185 | ||
Office Buildings | |||||||||
9033 Wilshire | Los Angeles, CA | 44,253 sq. ft. | 12,000 | 4,366 | 6,506 | 2,781 | |||
Bay Plaza | Tampa, FL | 75,780 sq. ft. | 4,682 | 3,253 | 961 | 1,212 | |||
Bay Plaza II | Tampa, FL | 78,882 sq. ft. | 4,719 | 1,114 | 3,284 | 132 | |||
Third Quarter | |||||||||
Apartments | |||||||||
Quail Pointe | Huntsville, AL | 184 Units | 6,200 | 2,157 | 3,501 | 5,265 | |||
Waters Edge III & IV | Gulfport, MS | 318 Units | 16,350 | 6,201 | 7,207 | 7,724 | |||
Windsor Tower | Ocala, FL | 64 Units | 2,845 | (85 | )(2) | 1,937 | (1) | 785 | |
Woodhollow | San Antonio, TX | 546 Units | 12,500 | 3,429 | 7,900 | 8,290 |
Property | Location | Units/Acres/ Sq. Ft. | Sales Price | Net Cash Received/ (Paid) | Debt Discharged | Gain on Sale | |||
Land | |||||||||
Mason Goodrich | Houston, TX | 16.0 Acres | 2,091 | 935 | — | 802 | |||
Round Mountain | Austin, TX | 18.0 Acres | 1,500 | 251 | — | 1,094 | |||
Vineyards | Grapevine, TX | 7.6 Acres | 4,323 | 874 | — | 1,764 | |||
Vineyards and Vineyards II | Grapevine, TX | 5.2 Acres | 2,332 | 160 | 300 | 494 | |||
West End | Dallas, TX | 0.8 Acres | 2,259 | 2,099 | — | 1,259 | |||
Fourth Quarter | |||||||||
Apartments | |||||||||
Sun Hollow | El Paso, TX | 216 Units | 7,700 | 2,623 | 4,327 | 5,811 | |||
Terrace Hills | El Paso, TX | 310 Units | 12,300 | 5,467 | 5,890 | 6,959 | |||
Land | |||||||||
Nashville | Nashville, TN | 3.0 Acres | 441 | (13 | ) | 408 | 282 |
Property | Location | Units/ Acres/Sq. Ft. | Sales Price | Net Cash Received | Debt Discharged | Gain on Sale | |||
First Quarter | |||||||||
Apartments | |||||||||
Tiberon Trails | Merrillville, IN | 376 Units | $10,325 | $2,618 | $6,189 | (1) | $48 | ||
Industrial Warehouses | |||||||||
Kelly (Pinewood) | Dallas, TX | 100,000 Sq. Ft. | 1,650 | 65 | 1,376 | 153 | |||
Ogden Industrial | Ogden, UT | 107,112 Sq. Ft. | 2,600 | 668 | 1,775 | 1,474 | |||
Texstar Warehouse | Arlington, TX | 97,846 Sq. Ft. | 2,400 | — | 1,148 | (1) | 1,157 | (3) | |
Land | |||||||||
Allen | Collin County, TX | 492.5 Acres | 19,962 | 7,956 | 4,088 | 7,915 | (2) | ||
Marine Creek | Ft. Worth, TX | 10.7 Acres | 1,488 | 1,198 | 991 | 581 | (7) | ||
Mason Goodrich | Houston, TX | 5.7 Acres | 686 | 45 | 588 | 379 | |||
Mason Goodrich | Houston, TX | 8.0 Acres | 1,045 | 248 | 200 | 617 | |||
Red Cross | Dallas, TX | 2.9 Acres | 8,500 | 2,842 | 4,450 | — | |||
Office Buildings | |||||||||
Brandeis(6) | Omaha, NE | 319,234 Sq. Ft. | ¾ | ¾ | ¾ | (92 | ) | ||
Countryside Harmon | Sterling, VA | 72,062 Sq. Ft. | 2,650 | 216 | 2,200 | 1,861 | |||
Countryside Retail | Sterling, VA | 133,422 Sq. Ft. | 27,100 | 3,407 | 22,800 | 6,807 | |||
Shopping Centers | |||||||||
K-Mart | Cary, NC | 92,033 Sq. Ft. | 3,200 | — | 1,677 | (1) | 521 | (3) | |
Plaza on Bachman Creek | Dallas, TX | 80,278 Sq. Ft. | 7,850 | 1,808 | 5,358 | 3,682 | |||
Second Quarter | |||||||||
Apartments | |||||||||
Cliffs of El Dorado(5) | McKinney, TX | 208 Units | 13,442 | 10 | 10,323 | (1) | 2,542 | ||
Park Avenue | Tallahassee, FL | 121 Units | 6,225 | 876 | 4,320 | (1) | 3,922 | ||
Sandstone | Mesa, AZ | 238 Units | 8,650 | 2,920 | (4) | 5,531 | 1,688 |
Property | Location | Units/ Acres/Sq. Ft. | Sales Price | Net Cash Received | Debt Discharged | Gain on Sale | |||
Office Buildings | |||||||||
4135 Beltline | Addison, TX | 90,000 Sq. Ft. | 4,900 | 2,472 | 2,009 | 337 | |||
Atrium | Palm Beach, FL | 74,603 Sq. Ft. | 5,775 | 1,842 | 3,772 | 708 | |||
Third Quarter | |||||||||
Apartments | |||||||||
Falcon House | Fort Walton, FL | 82 Units | 3,330 | 1,178 | 1,950 | (1) | 1,209 | ||
Industrial Warehouses | |||||||||
Kelly (Cash Road) | Dallas, TX | 97,150 Sq. Ft. | 1,500 | 1,077 | 422 | 454 | |||
Land | |||||||||
Rasor | Plano, TX | 24.5 Acres | 2,600 | 2,600 | ¾ | 220 | (8) | ||
Vista Ridge | Lewisville, TX | 1.3 Acres | 310 | 259 | ¾ | 131 | |||
Shopping Centers | |||||||||
Collection | Denver, CO | 267,812 Sq. Ft. | 21,200 | 6,703 | 13,153 | 3,314 | |||
Property | Location | Units | Amount Expended | Additional Amount to Expend | Construction Loan Funding |
Laguna Vista | Farmers Branch, TX | 206 Units | $5,688 | $15,417 | $17,741 |
Legends of El Paso | El Paso, TX | 240 Units | 2,723 | 15,361 | 16,040 |
Mission Oaks | San Antonio, TX | 228 Units | 811 | 16,658 | 15,636 |
Parc at Maumelle | Maumelle, AR | 240 Units | 6,543 | 12,156 | 16,829 |
Parc at Metro Center | Nashville, TN | 144 Units | 2,522 | 10,093 | 11,141 |
Investee | Percentage of ARI’s Ownership at September 30, 2005 | Carrying Value of Investment at September 30, 2005 | Market Value of Investment at September 30, 2005 | |||||||
IORI | 20.4 | % | $ | 6,048 | $ | 7,520 | ||||
Garden Centura, L.P. | 5.0 | % | 1,925 | ¾ | ||||||
Other | 1,316 | |||||||||
$ | 9,289 |
2005 | ||||
Revenues | $ | 7,767 | ||
Equity in loss of partnership | (45 | ) | ||
Property operating expenses | (3,563 | ) | ||
Depreciation | (539 | ) | ||
Interest | (2,487 | ) | ||
Income before gain on sale of real estate | 1,133 | |||
Gain on sale of real estate | — | |||
Net income | $ | 1,133 |
Property | Location | Sq. Ft./Rooms/ Units/Acres | Debt Incurred | Debt Discharged | Net Cash Received | Interest Rate | Maturity Date | |
First Quarter | ||||||||
Land | ||||||||
Nashville | Nashville, TN | 109.6 Acres | $7,000 | $— | $6,341 | 7.50 | % | 02/07 |
Shopping Centers | ||||||||
Bridgeview Plaza | LaCrosse, WI | 116,008 Sq. Ft. | 7,197 | 6,304 | 649 | 7.25 | (1) | 03/10 |
Dunes Plaza | Michigan City, IN | 223,869 Sq. Ft. | 3,750 | 2,685 | 658 | 7.50 | (1) | 01/10 |
Second Quarter | ||||||||
Apartments | ||||||||
Autumn Chase | Midland, TX | 64 Units | 1,166 | 797 | 317 | 5.88 | (1) | 05/35 |
Courtyard | Midland, TX | 133 Units | 1,342 | 966 | 266 | 5.88 | (1) | 05/35 |
Southgate | Odessa, TX | 180 Units | 1,879 | 1,712 | 61 | 5.88 | (1) | 05/35 |
Hotels | ||||||||
The Majestic | Chicago, IL | 55 Rooms | 3,225 | ¾ | 3,066 | 6.40 | 06/10 | |
Third Quarter | ||||||||
Hotels | ||||||||
Williamsburg Hospitality House | Williamsburg, VA | 296 Rooms | 11,000 | 10,540 | 147 | 6.19 | (1) | 09/10 |
Land | ||||||||
Alliance Airport(2) | Tarrant County, TX | 12.7 Acres | 553 | ¾ | 540 | 7.25 | (1) | 01/07 |
Centura(3) | Farmers Branch, TX | 8.8 Acres | 6,727 | ¾ | 6,727 | 8.50 | (1) | 08/07 |
DeSoto Ranch(2) | DeSoto, TX | 21.9 Acres | 1,635 | 1,271 | 336 | 7.25 | (1) | 01/07 |
Elm Fork | Denton County, TX | 105.4 Acres | 7,740 | ¾ | 7,540 | 7.00 | (1) | 07/06 |
Sheffield Village(2) | Grand Prairie, TX | 13.9 Acres | 975 | 975 | 94 | 7.75 | 03/07 | |
West End(2) | Dallas, TX | 6.3 Acres | 2,000 | ¾ | 1,951 | 7.25 | (1) | 01/07 |
Property | Location | Sq. Ft./Rooms/ Units/Acres | Debt Incurred | Debt Discharged | Net Cash Received/ (Paid) | Interest Rate | Maturity Date | ||||
First Quarter | |||||||||||
Hotels | |||||||||||
Williamsburg Hospitality House | Williamsburg, VA | 296 Rooms | $11,500 | $12,332 | $(13,689 | )(2) | 7.00 | %(1) | 03/05 | ||
Land | |||||||||||
Centura | Farmers Branch, TX | 8.8 Acres | 4,485 | 4,000 | (183 | ) | 7.00 | (1) | 02/05 | ||
Dominion/Hollywood | Farmers Branch, TX | 66.1 Acres | 6,985 | 6,222 | (67 | ) | 7.00 | (1) | 02/05 | ||
Katy | Harris County, TX | 130.6 Acres | 7,500 | — | (75 | )(3) | 6.00 | 02/07 | |||
Marine Creek | Ft. Worth, TX | 54.0 Acres | 1,286 | 991 | 192 | 5.75 | 06/05 | ||||
Office Buildings | |||||||||||
Centura Tower | Farmers Branch, TX | 410,901 Sq. Ft. | 34,000 | 36,889 | (4,588 | ) | 5.50 | (1) | 04/06 | ||
Second Quarter | |||||||||||
Apartments | |||||||||||
Paramount Terrace | Amarillo, TX | 181 Units | 3,176 | 2,663 | 323 | 5.15 | 06/37 | ||||
Treehouse | Irving, TX | 160 Units | 5,780 | 5,027 | 138 | 5.06 | 07/34 | ||||
Land | |||||||||||
Lacy Longhorn | Farmers Branch, TX | 17.1 Acres | 1,965 | 1,800 | 78 | 4.03 | (1) | 07/07 | |||
Marine Creek | Fort Worth, TX | 28.4 Acres | 1,785 | 0 | 1,746 | 4.03 | (1) | 07/07 | |||
Mason/Goodrich | Houston, TX | 39.4 Acres | 2,133 | 714 | 1,345 | 6.00 | (1) | 08/05 | |||
Office Buildings | |||||||||||
1010 Common | New Orleans, LA | 494,579 Sq. Ft. | 16,250 | 8,000 | 7,829 | 4.03 | (1) | 07/07 | |||
Two Hickory Centre | Farmers Branch, TX | 96,127 Sq. Ft. | 7,500 | 7,500 | (164 | ) | 3.60 | (1) | 05/06 | ||
Third Quarter | |||||||||||
Apartments | |||||||||||
Villager | Fort Walton, FL | 33 Units | 804 | 507 | 129 | 5.15 | 06/34 | ||||
Waters Edge III | Gulfport, MS | 238 Units | 3,250 | ¾ | ¾ | (4) | 12.50 | 12/04 | |||
Hotels | |||||||||||
City Suites | Chicago, IL | 45 Rooms | 3,640 | ¾ | 3,548 | 6.75 | (1) | 09/09 | |||
Willows | Chicago, IL | 52 Rooms | 3,500 | ¾ | 3,411 | 6.75 | (1) | 09/09 | |||
Land | |||||||||||
Bonneau | Dallas County, TX | 8.4 Acres | 9,661 | (5) | 10,283 | (6) | 76 | 6.75 | (1) | 09/05 | |
Chase Oaks | Plano, TX | 5.8 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
Dalho | Farmers Branch, TX | 2.9 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
HSM | Farmers Branch, TX | 6.2 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
JHL Connell | Carrollton, TX | 7.6 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
Las Colinas | Las Colinas, TX | 1.5 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
Stagliano | Farmers Branch, TX | 3.2 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
Vista Ridge | Lewisville, TX | 64.9 Acres | ¾ | (5) | ¾ | ¾ | ¾ | ¾ | |||
Office Buildings | |||||||||||
Centura Tower | Farmers Branch, TX | 410,901 Sq. Ft. | 50,000 | 37,594 | 2,989 | 4.94 | 10/09 | ||||
Cooley | Farmers Branch, TX | 27,000 Sq. Ft. | 2,600 | 1,726 | 811 | 5.50 | (1) | 09/06 | |||
Warehouses | |||||||||||
Addison Hangers I & II | Addison, TX | 52,650 Sq. Ft. | 4,500 | 2,592 | 1,635 | 10.00 | 09/14 |
PRIME | IORI | ||||||
Balance, December 31, 2004 | $ | 13,579 | $ | (260 | ) | ||
Cash transfers to affiliates | 122,670 | 260 | |||||
Cash transfers from affiliates | (91,377 | ) | — | ||||
Payments by affiliates on ARI’s behalf | (700 | ) | ¾ | ||||
Repayments through property transfers | (4,388 | ) | ¾ | ||||
Construction fees payable to affiliate | (934 | ) | — | ||||
Payables clearing through Prime | (2,254 | ) | — | ||||
Balance, September 30, 2005 | $ | 36,596 | $ | ¾ |
Three Months Ended September 30, 2005 | Commercial Properties | Apartments | Hotels | Land | Restaurants | Receivables/ Other | Total | |||||||||||||||
Operating revenue | $ | 12,820 | $ | 20,981 | $ | 10,761 | $ | 135 | $ | 9,298 | $ | 7 | $ | 54,002 | ||||||||
Operating expenses | 7,594 | 13,943 | 6,715 | 1,503 | 7,014 | 195 | 36,964 | |||||||||||||||
Depreciation | 1,159 | 2,304 | 967 | — | 314 | 4 | 4,748 | |||||||||||||||
Mortgage and loan interest | 3,399 | 7,697 | 1,227 | 2,677 | 336 | 1,000 | 16,336 | |||||||||||||||
Interest income | — | — | — | — | — | 1,188 | 1,188 | |||||||||||||||
Gain on land sales | — | — | — | 5,435 | — | — | 5,435 | |||||||||||||||
Segment operating income (loss) | $ | 668 | $ | (2,963 | ) | $ | 1,852 | $ | 1,390 | $ | 1,634 | $ | (4 | ) | $ | 2,577 | ||||||
Capital expenditures | $ | 833 | $ | 5,800 | $ | 344 | $ | 89 | $ | 151 | $ | 16 | $ | 7,233 | ||||||||
Assets | 230,238 | 503,220 | 81,856 | 205,633 | 19,900 | 75,096 | 1,115,943 |
Property Sales: | ||||||||||||||||||||||
Sales price | $ | — | $ | 37,895 | $ | — | $ | 12,506 | $ | — | $ | — | $ | 50,401 | ||||||||
Cost of sale | — | 15,830 | — | 7,071 | — | — | 22,901 | |||||||||||||||
Recognized prior deferred gain | — | 494 | — | — | — | — | 494 | |||||||||||||||
Gain on sale | $ | — | $ | 22,559 | $ | — | $ | 5,435 | $ | — | $ | — | $ | 27,994 |
Three Months Ended September 30, 2004 | Commercial Properties | Apartments | Hotels | Land | Restaurants | Receivables/ Other | Total | |||||||||||||||
Operating revenue | $ | 11,825 | $ | 16,847 | $ | 10,489 | $ | 221 | $ | 8,667 | $ | 7 | $ | 48,056 | ||||||||
Operating expenses | 8,276 | 10,888 | 7,455 | 910 | 6,788 | — | 34,317 | |||||||||||||||
Depreciation | 2,858 | 1,682 | 950 | — | 337 | 16 | 5,843 | |||||||||||||||
Mortgage and loan interest | 3,169 | 5,769 | 1,317 | 3,186 | 368 | 1,312 | 15,121 | |||||||||||||||
Interest income | — | — | — | — | — | 855 | 855 | |||||||||||||||
Gain on land sales | — | — | — | 827 | — | — | 827 | |||||||||||||||
Segment operating income (loss) | $ | (2,478 | ) | $ | (1,492 | ) | $ | 767 | $ | (3,048 | ) | $ | 1,174 | $ | (466 | ) | $ | (5,543 | ) | |||
Capital expenditures | $ | 2,654 | $ | 28,572 | $ | 610 | $ | 1,426 | $ | 258 | $ | — | $ | 33,520 | ||||||||
Assets | 261,466 | 491,409 | 86,974 | 217,728 | 20,797 | 75,487 | 1,153,861 |
Property Sales: | ||||||||||||||||||||||
Sales price | $ | 22,700 | $ | 3,330 | $ | — | $ | 2,910 | $ | — | $ | — | $ | 28,940 | ||||||||
Cost of sale | 18,932 | 2,121 | — | 2,610 | — | — | 23,663 | |||||||||||||||
Deferred current gain | — | ¾ | — | 220 | — | — | 220 | |||||||||||||||
Recognized prior deferred gain | 329 | ¾ | ¾ | 747 | ¾ | ¾ | 1,076 | |||||||||||||||
Gain on sale | $ | 4,097 | $ | 1,209 | $ | — | $ | 827 | $ | — | $ | — | $ | 6,133 |
Nine Months Ended September 30, 2005 | Commercial Properties | Apartments | Hotels | Land | Restaurants | Receivables/ Other | Total | |||||||||||||||
Operating revenue | $ | 34,618 | $ | 60,256 | $ | 28,644 | $ | 491 | $ | 27,331 | $ | 41 | $ | 151,381 | ||||||||
Operating expenses | 21,909 | 38,473 | 20,104 | 4,757 | 20,908 | 208 | 106,359 | |||||||||||||||
Depreciation | 6,297 | 6,587 | 2,356 | — | 934 | 6 | 16,180 | |||||||||||||||
Mortgage and loan interest | 8,846 | 21,971 | 3,873 | 7,858 | 1,026 | 3,138 | 46,712 | |||||||||||||||
Interest income | — | — | — | — | — | 4,025 | 4,025 | |||||||||||||||
Gain on land sales | — | — | — | 34,525 | — | — | 34,525 | |||||||||||||||
Segment operating income (loss) | $ | (2,434 | ) | $ | (6,775 | ) | $ | 2,311 | $ | 22,401 | $ | 4,463 | $ | 714 | $ | 20,680 | ||||||
Capital expenditures | $ | 3,743 | $ | 29,562 | $ | 610 | $ | 1,619 | $ | 627 | $ | 16 | $ | 36,177 | ||||||||
Assets | 230,238 | 503,220 | 81,856 | 205,633 | 19,900 | 75,096 | 1,115,943 |
Property Sales: | ||||||||||||||||||||||
Sales price | $ | 36,677 | $ | 44,102 | $ | — | $ | 76,776 | $ | — | $ | — | $ | 157,555 | ||||||||
Cost of sale | 21,621 | 21,981 | — | 42,251 | — | — | 85,853 | |||||||||||||||
Recognized prior deferred gain | — | 494 | — | — | — | — | 494 | |||||||||||||||
Gain on sale | $ | 15,056 | $ | 22,615 | $ | — | $ | 34,525 | $ | — | $ | — | $ | 72,196 |
Nine Months Ended September 30, 2004 | Commercial Properties | Apartments | Hotels | Land | Restaurants | Receivables/ Other | Total | |||||||||||||||
Operating revenue | $ | 34,908 | $ | 48,760 | $ | 28,636 | $ | 569 | $ | 25,659 | $ | 377 | $ | 138,909 | ||||||||
Operating expenses | 26,000 | 31,588 | 21,417 | 3,711 | 19,925 | 345 | 102,986 | |||||||||||||||
Depreciation | 8,260 | 5,090 | 2,845 | — | 1,001 | 41 | 17,237 | |||||||||||||||
Mortgage and loan interest | 9,456 | 16,792 | 4,059 | 9,398 | 1,129 | 3,890 | 44,724 | |||||||||||||||
Interest income | — | — | — | — | — | 3,514 | 3,514 | |||||||||||||||
Gain on land sales | — | — | — | 4,579 | — | — | 4,579 | |||||||||||||||
Segment operating income (loss) | $ | (8,808 | ) | $ | (4,710 | ) | $ | 315 | $ | (7,961 | ) | $ | 3,604 | $ | (385 | ) | $ | (17,945 | ) | |||
Capital expenditures | $ | 5,509 | $ | 127,392 | $ | 988 | $ | 3,612 | $ | 983 | $ | — | $ | 138,484 | ||||||||
Assets | 261,466 | 491,409 | 86,974 | 217,728 | 20,797 | 75,487 | 1,153,861 | |||||||||||||||
Property Sales: | ||||||||||||||||||||||
Sales price | $ | 80,825 | $ | 46,972 | $ | — | $ | 34,592 | $ | — | $ | — | $ | 162,389 | ||||||||
Cost of sale | 60,449 | 37,067 | — | 24,801 | — | — | 122,317 | |||||||||||||||
Deferred current gain | 1,678 | 3,037 | — | 5,212 | — | — | 9,927 | |||||||||||||||
Recognized prior deferred gain | 329 | — | — | — | — | — | 329 | |||||||||||||||
Gain on sale | $ | 19,027 | $ | 6,868 | $ | — | $ | 4,579 | $ | — | $ | — | $ | 30,474 |
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, 2005 | September 30, 2004 | September 30, 2005 | September 30, 2004 | ||||||||||
Other non-segment items of income/(expense): | |||||||||||||
General and administrative | $ | (3,643 | ) | $ | (2,613 | ) | $ | (11,290 | ) | $ | (11,474 | ) | |
Advisory fee | (3,206 | ) | (2,934 | ) | (8,844 | ) | (8,162 | ) | |||||
Gain/(loss) on foreign currency transaction | 37 | 543 | 265 | 1,791 | |||||||||
Other income/(expense) | 1,215 | 72 | 2,186 | (136 | ) | ||||||||
Gain on settlement of debt | — | 2,268 | — | 2,268 | |||||||||
Discount on sale of notes receivable | (15 | ) | 9 | (15 | ) | (389 | ) | ||||||
Net income fee | (2,136 | ) | — | (2,950 | ) | — | |||||||
Incentive Fee | (904 | ) | — | (909 | ) | — | |||||||
Litigation settlement | (130 | ) | (50 | ) | (130 | ) | (50 | ) | |||||
Equity in income (loss) of investees | 71 | 56 | 283 | (144 | ) | ||||||||
Minority interest | 336 | 1,474 | (408 | ) | (155 | ) | |||||||
Loss from continuing operations | $ | (5,798 | ) | $ | (6,718 | ) | $ | (1,132 | ) | $ | (34,396 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
(dollars in thousands) | |||||||||||||
Revenue: | |||||||||||||
Rental | $ | 4,428 | $ | 11,362 | $ | 15,031 | $ | 37,907 | |||||
Property operations | 3,455 | 7,695 | 11,245 | 23,191 | |||||||||
973 | 3,667 | 3,786 | 14,716 | ||||||||||
Expenses: | |||||||||||||
Interest | 1,486 | 4,197 | 5,577 | 13,305 | |||||||||
Depreciation | 174 | 1,592 | 712 | 5,407 | |||||||||
1,660 | 5,789 | 6,289 | 18,712 | ||||||||||
Loss from discontinued operations | (687 | ) | (2,122 | ) | (2,503 | ) | (3,996 | ) | |||||
Gain on sale of real estate | 22,559 | 5,306 | 37,671 | 25,895 | |||||||||
Write-down of assets held-for-sale | — | (3,444 | ) | — | (3,444 | ) | |||||||
Equity in gain on sale of real estate by equity investees | — | (9 | ) | — | 886 | ||||||||
Income (loss) from discontinued operations | $ | 21,872 | $ | (269 | ) | $ | 35,168 | $ | 19,341 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Related Party Transactions
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Commercial | $ | 12,820 | $ | 11,825 | $ | 34,618 | $ | 34,908 | |||||
Apartments | 20,981 | 16,847 | 60,256 | 48,760 | |||||||||
Hotels | 10,761 | 10,489 | 28,644 | 28,636 | |||||||||
Land | 135 | 221 | 491 | 569 | |||||||||
Other | 7 | 7 | 41 | 377 | |||||||||
$ | 44,704 | $ | 39,389 | $ | 124,050 | $ | 113,250 |
Property Operations Expenses (dollars in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Commercial | $ | 7,594 | $ | 8,276 | $ | 21,909 | 26,000 | ||||||
Apartments | 13,943 | 10,888 | 38,473 | 31,588 | |||||||||
Hotels | 6,715 | 7,455 | 20,104 | 21,417 | |||||||||
Land | 1,503 | 910 | 4,757 | 3,711 | |||||||||
Other | 195 | — | 208 | 345 | |||||||||
$ | 29,950 | $ | 27,529 | $ | 85,451 | $ | 83,061 | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Commercial | $ | 1,159 | $ | 2,858 | $ | 6,297 | $ | 8,260 | |||||
Apartments | 2,304 | 1,682 | 6,587 | 5,090 | |||||||||
Hotels | 967 | 950 | 2,356 | 2,845 | |||||||||
Restaurants | 314 | 337 | 934 | 1,001 | |||||||||
Other | 4 | 16 | 6 | 41 | |||||||||
$ | 4,748 | $ | 5,843 | $ | 16,180 | $ | 17,237 |
Mortgage and Loan Interest Expense (dollars in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Commercial | $ | 3,399 | $ | 3,169 | $ | 8,846 | $ | 9,456 | |||||
Apartments | 7,697 | 5,769 | 21,971 | 16,792 | |||||||||
Hotels | 1,227 | 1,317 | 3,873 | 4,059 | |||||||||
Land | 2,677 | 3,186 | 7,858 | 9,398 | |||||||||
Restaurants | 336 | 368 | 1,026 | 1,129 | |||||||||
Other | 1,000 | 1,312 | 3,138 | 3,890 | |||||||||
$ | 16,336 | $ | 15,121 | $ | 46,712 | $ | 44,724 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Revenue: | |||||||||||||
Rental | $ | 4,428 | $ | 11,362 | $ | 15,031 | $ | 37,907 | |||||
Property operations | 3,455 | 7,695 | 11,245 | 23,191 | |||||||||
973 | 3,667 | 3,786 | 14,716 | ||||||||||
Expenses: | |||||||||||||
Interest | 1,486 | 4,197 | 5,577 | 13,305 | |||||||||
Depreciation | 174 | 1,592 | 712 | 5,407 | |||||||||
1,660 | 5,789 | 6,289 | 18,712 | ||||||||||
Loss from discontinued operations | (687 | ) | (2,122 | ) | (2,503 | ) | (3,996 | ) | |||||
Gain on sale of real estate | 22,559 | 5,306 | 37,671 | 25,895 | |||||||||
Write-down of assets held-for-sale | — | (3,444 | ) | — | (3,444 | ) | |||||||
Equity in gain on sale of real estate by equity investees | — | (9 | ) | — | 886 | ||||||||
Income (loss) from discontinued operations | $ | 21,872 | $ | (269 | ) | $ | 35,168 | $ | 19,341 |
Tax Matters
Balance | Weighted Average Interest Rate | Effect of 1% Increase In Base Rates | |
Notes payable: | |||
Variable rate | $192,601 | 7.416% | $1,926 |
Total decrease in ARI’s annual net income | $1,926 | ||
Per share | $.19 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number of Shares that May Yet be Purchased Under the Program(1) |
July 2005 | ― | $― | ― | 129,493 |
August 2005 | ― | ― | ― | 129,493 |
September 2005 | ― | ― | ― | 129,493 |
Total | ― | $― | ― |
ITEM 6. EXHIBITS
The following exhibits are filed herewith or incorporated by reference as indicated below:
Exhibit | Description of Exhibit |
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3.0 | Certificate of Restatement of Articles of Incorporation of American Realty Investors, Inc. dated August 3, 2000 (incorporated by reference to Exhibit 3.0 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000). | |
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3.1 | Certificate of Correction of Restated Articles of Incorporation of American Realty Investors, Inc. dated August 29, 2000 (incorporated by reference to Exhibit 3.1 to Registrant’s Quarterly Report on Form 10-Q dated September 30, 2000). | |
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3.2 | Articles of Amendment to the Restated Articles of Incorporation of American Realty Investors, Inc. decreasing the number of authorized shares of and eliminating Series B Cumulative Convertible Preferred Stock dated August 23, 2003 (incorporated by reference to Exhibit 3.3 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003). | |
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3.3 | Articles of Amendment to the Restated Articles of Incorporation of American Realty Investors, Inc., decreasing the number of authorized shares of and eliminating Series I Cumulative Preferred Stock dated October 1, 2003 (incorporated by reference to Exhibit 3.4 to Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003). | |
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3.4 | Bylaws of American Realty Investors, Inc. (incorporated by reference to Exhibit 3.2 to Registrant’s Registration Statement on Form S-4 filed December 30, 1999). | |
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31.1* | Certification pursuant to Rule 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended. | |
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32.1* | Certification pursuant to 18 U.S.C. 1350. |
*Filed herewith
AMERICAN REALTY INVESTORS, INC. | |||
Date: | November 14, 2005 | By: | /s/ Steven A. Abney |
Steven A. Abney | |||
Executive Vice President and Chief Financial Officer | |||
(Principal Financial and Accounting Officer and | |||
Acting Principal Executive Officer) | |||
Exhibit Number | Description of Exhibits |
31.1* | Certification pursuant to Rule 13a-14 and 15d-14 under the Securities Exchange Act of 1934, as amended. |
32.1* | Certification pursuant to 18 U.S.C. 1350. |