Exhibit 99.2
| Associated Estates Realty Corporation Second Quarter 2003 Earnings Release and Supplemental Financial Data |
Country Place
1820 South Crawford Street
Mt. Pleasant, MI 48858
Tel: (989) 773-2199
Web Site:www.countryplaceaparts.com
Country Place is comprised of ten two-story apartment buildings located in beautiful Mt. Pleasant, Michigan. Generous amenities include spacious floor plans, central air conditioning, free video library, swimming pool, fitness center, clubhouse, tennis court, and more.
Associated Estates Realty CorporationPhone: (216) 261-5000
5025 Swetland CourtFax: (216) 289-9600
Richmond Heights, Ohio 44143-1467Web Site:www.aecrealty.com
Investor contact: Barbara E. Hasenstab
Vice President of Investor Relations
and Corporate Communications
(216) 797-8798
IR@aecrealty.com
| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements.Historical results and percentage relationships set forth in the Consolidated Statements of Operations contained in the financial statements, including trends which might appear, should not be taken as indicative of future operations. This news release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to vary from those projected. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that the Company's forward-looking statements involve risks and uncertainty, including without limitation the following: changes in economic conditions in the markets in which the Company owns properties, including interest rates, the overall level of economic activity, the availability of consumer credit and mortgage financing, unemployment rates and other factors; risks of a lessening of demand for the multifamily units owned or managed by the Company; competition from other available apartments and change in market rental rates; increases in property and liability insurance costs; changes in government regulations affecting the Affordable Housing properties; changes in or termination of contracts relating to third party management and advisory business; inability to renew current Housing Assistance Payment ("HAP") contracts at existing rents; weather and other conditions that might adversely affect operating expenses; expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, and real estate tax valuation reassessments; changes in market conditions that may limit or prevent the Company from acquiring or selling properties; and risks of construction including cost overruns, contractor defaults and contractor delays. |
| Associated Estates Realty Corporation Second Quarter 2003 Supplemental Financial Data |
| Table of Contents | |
| Earnings Release | 1 |
| Financial and Operating Highlights | |
| Condensed Consolidated Balance Sheets | |
| Consolidated Statements of Operations | 7 |
| Reconciliation of Funds From Operations ("FFO") and Funds Available for Distribution ("FAD") | 8 |
| Overview of Operating Expenses Related to Repairs and Maintenance and Capitalized | |
| Expenditures | 9 |
| Segment Information | 10 |
| "Same-Store" Market Rate Data | 12 |
| Debt Structure | 16 |
| Joint Venture Summary Data | 17 |
| Associated Estates Realty Corporation Reports Second Quarter 2003 Earnings |
Cleveland, Ohio - July 31, 2003 - Associated Estates Realty Corporation (NYSE: AEC) today reported a loss of $0.27 per common share (basic and diluted) for the second quarter ended June 30, 2003 compared with earnings of $0.27 per common share (basic and diluted) for the second quarter ended June 30, 2002. The results for the second quarter ended June 30, 2003 include a gain of $450,000, or $0.02 per share, on the sale of a joint venture property. This gain is included in the "Equity in net loss of joint ventures" in the Company's financial statements. The results for the second quarter ended June 30, 2002 include a net gain on property sales of $7,842,000, or approximately $0.40 per share.
Funds from operations (FFO) for the quarter were $0.15 per common share (basic and diluted) compared with $0.29 per common share (basic and diluted) for the second quarter of 2002. A reconciliation of net income to FFO is included on page 8.
Total revenues for the second quarter of 2003 were $38,818,000 compared with $41,700,000 in the second quarter of 2002, a decline of 6.9 percent. The decline in revenues primarily reflects the loss of fees and reimbursements associated with the loss of management and advisory contracts for 11 properties in October 2002, and, to a lesser extent, the impact of the weak apartment market.
Segment detail as well as performance by region for the Company's same-store portfolio is included on pages 10 through 15.
First Half Results
For the six months ended June 30, 2003, the Company reported a loss of $0.55 per common share (basic and diluted) compared with earnings of $0.14 per common share (basic and diluted) for the six months ended June 30, 2002. The results for the first half ended June 30, 2003 include a gain of $450,000, or approximately $0.02 per share, on the sale of a joint venture property. This gain is included in the "Equity in net loss of joint ventures" in the Company's financial statements. The results for the first half ended June 30, 2002 include a net gain on property sales of $8,097,000, or approximately $0.42 per share.
FFO for the first six months of 2003 were $0.30 per common share (basic and diluted) compared with $0.58 per common share (basic and diluted) for the comparable period of 2002.
Total revenues for the first six months of 2003 were $76,955,000 compared with $81,838,000 for the first six months of 2002. The decline in revenues primarily reflects the loss of fees and reimbursements associated with the loss of management and advisory contracts for 11 properties in October 2002, and, to a lesser extent, the impact of the weak apartment market.
Same Store Portfolio
Revenues for the second quarter 2003 attributable to the Company's same store (market-rate) portfolio declined 2.9 percent, and total property operating expenses for the same store (market-rate) portfolio increased 8.1 percent. Net operating income (NOI) declined 12.4 percent compared with the second quarter a year ago. A reconciliation of net operating income to net income is included on pages 10 and 11.
The average quarterly rent per unit for the same store (market-rate) properties increased 0.4 percent to $817, while the average net collected rent declined 3.1 percent to $679. Rent concessions averaged $463 per new unit leased.
| Associated Estates Realty Corporation Reports Second Quarter 2003 Earnings |
Physical occupancy was 92.1 percent at the end of the quarter compared with 92.9 percent at the end of the second quarter of 2002.
The decline in revenues reflects a decline in economic occupancy of 3.0 percentage points compared with the second quarter of 2002. Property operating expenses increased $1,509,000 in the second quarter compared with the comparable quarter a year ago. The increase is primarily attributable to additional taxes resulting from increases in assessed property values and millage rate increases at certain properties and increased insurance rates totaling $783,000, as well as increases in repairs and maintenance (primarily unit painting and other "turn costs") and other operating expenses (primarily resident background screening, employee training and referral fees).
On a sequential quarterly basis, same store (market-rate) revenues increased 2.6 percent, total property operating expenses increased 5.0 percent, and NOI increased 0.2 percent compared with the first quarter of 2003. On a sequential quarterly basis, the average quarterly rent per unit for the same store (market-rate) properties declined 0.8 percent, while the average net collected rent per unit increased 2.3 percent. Physical occupancy improved 2.4 percentage points compared with the first quarter of 2003.
Acquisitions, Developments and Dispositions
Phase II of a joint venture in Atlanta, Georgia, consisting of 535 units, is currently in lease up and is 71.2 percent occupied. Phase I, consisting of 308 units, is currently 92.9 percent occupied.
A 288-unit joint venture development in Orlando, Florida, was recently completed. Leasing activity has been very strong, and stabilized occupancy (93 percent) is targeted for the first quarter of 2004.
Financing Activity
In the second quarter of 2003, the Company paid off two loans, which were secured by property-specific mortgages totaling $5 million with an average interest rate of 8.5 percent. The Company replaced those loans with $9.4 million of project-specific debt at an average interest rate of 3.2 percent. The Company incurred $339,000 of prepayment penalties in connection with the prepayment of these mortgage loans, which is included in interest expense for the quarter.
In July, the Company replaced a $20 million LIBOR-based secured line of credit with a new $15 million three-year, LIBOR-based secured line of credit. The Company also extended the maturity date on a $14 million line of credit for one year to December 31, 2004. Approximately $18 million is currently available for borrowing under the combined lines of credit.
Outlook
"We are pleased with the occupancy gains we have experienced over the past few months, and we expect the trend to continue," said Jeffrey I. Friedman, Chairman, President and CEO. "Combining our anticipated occupancy gains with seasonally lower expenses and a moderating of rent concessions, we expect higher FFO per share for the second half of 2003 compared with the first half of the year."
| Associated Estates Realty Corporation Financial and Operating Highlights For the Three and Six Months Ended June 30, 2003 (Unaudited; in thousands, except per share and ratio data) |
| OPERATING INFORMATION | ||||
| Total revenue | $ 38,818 | $ 41,700 | $ 76,955 | $ 81,838 |
| Property revenue | $ 34,943 | $ 35,585 | $ 69,116 | $ 69,182 |
| Funds From Operations (FFO) | $ 2,815 | $ 5,716 | $ 5,835 | $ 11,309 |
| FFO per share: | ||||
| Basic | $ 0.15 | $ 0.29 | $ 0.30 | $ 0.58 |
| Diluted | $ 0.15 | $ 0.29 | $ 0.30 | $ 0.58 |
| Funds Available for Distribution (FAD) | $ 2,334 | $ 4,252 | $ 4,735 | $ 9,145 |
| Net (loss) income applicable to common shareholders | $ (5,256) | $ 5,200 | $ (10,609) | $ 2,663 |
| Per share: | ||||
| Basic | $ (0.27) | $ 0.27 | $ (0.55) | $ 0.14 |
| Diluted | $ (0.27) | $ 0.27 | $ (0.55) | $ 0.14 |
| Dividends per share | $ 0.17 | $ 0.25 | $ 0.34 | $ 0.50 |
| Payout ratio - FFO | 113.3% | 86.2% | 113.3% | 86.2% |
| Payout ratio - FAD | 141.7% | 113.6% | 136.0% | 106.4% |
| Common dividends - paid | $ 3,309 | $ 4,871 | $ 6,618 | $ 9,737 |
| Preferred dividends - paid | $ 1,372 | $ 1,371 | $ 2,743 | $ 2,742 |
| Service companies expenses | $ 863 | $ 1,282 | $ 1,823 | $ 2,547 |
| General and administrative expense | $ 1,767 | $ 1,574 | $ 3,279 | $ 3,557 |
| Interest expense(1) | $ 10,118 | $ 10,121 | $ 19,854 | $ 19,944 |
| Interest coverage ratio | 1.45:1 | 1.65:1 | 1.47:1 | 1.64:1 |
| Fixed charge coverage ratio(2) | 1.29:1 | 1.47:1 | 1.30:1 | 1.46:1 |
| General and administrative expense to property revenue | 5.1% | 4.4% | 4.7% | 5.1% |
| Interest expense to property revenue | 29.0% | 28.4% | 28.7% | 28.8% |
| Total NOI(3) | $ 17,131 | $ 19,654 | $ 33,759 | $ 38,904 |
| Property NOI | $ 16,706 | $ 18,857 | $ 33,078 | $ 37,243 |
| ROA(4) | 7.6% | 8.4% | 7.6% | 8.4% |
| Same-store market rate revenue decrease | (2.9)% | (1.5)% | (3.5)% | (1.1)% |
| Same-store market rate expense increase | 8.1% | 3.3% | 7.8% | 1.4% |
| Same-store market rate NOI decrease | (12.4)% | (5.3)% | (13.0)% | (3.1)% |
| Same-store market rate operating margins | 48.2% | 53.4% | 48.7% | 54.1% |
(1) Excludes amortization of financing fees of $295 and $588 for the three and six months 2003, respectively, and $304 and $628 for the three and six months 2002, respectively.
(2) Represents interest expense and preferred stock dividend payment coverage.
(3) NOI is determined by deducting property operating and maintenance expenses, direct property management and service companies expenses and painting service expense from total revenues.
(4) ROA is calculated as trailing twelve month property NOI divided by average gross real estate assets.
| Associated Estates Realty Corporation Financial and Operating Highlights Second Quarter 2003 (Unaudited; in thousands, except per share and ratio data) |
| MARKET CAPITALIZATION DATA | ||
| Net real estate investments | $ 669,882 | $ 683,058 |
| Total assets | $ 716,244 | $ 735,303 |
| Total debt | $ 541,837 | $ 540,498 |
| Minority interest | $ 2,172 | $ 2,972 |
| Preferred stock | $ 56,250 | $ 56,250 |
| Total shareholders' equity | $ 133,721 | $ 150,865 |
| Common shares outstanding | 19,465 | 19,474 |
| Share price, end of period | $ 6.57 | $ 6.75 |
| Total market capitalization(1) | $ 761,408 | $ 760,857 |
| Debt to total assets | 75.6% | 73.5% |
(1) Includes our share of unconsolidated debt of $35,436 and $32,659 as of June 30, 2003 and December 31, 2002, respectively.
| Associated Estates Realty Corporation Financial and Operating Highlights Second Quarter 2003 |
| PORTFOLIO INFORMATION | ||
| Company Portfolio: | ||
| Directly owned: | ||
| Acquisition | 2 | 1,407 |
| Affordable Housing | 12 | 1,246 |
| "Same Store" Market Rate | 60 | 14,421 |
| Joint ventures | 4 | 1,203 |
| Third party managed | 30 | 6,861 |
| 108 | 25,138 | |
| Communities under development: | ||
| Joint ventures | 1 | 288(1) |
| 1 | 288 | |
| Total Company Portfolio | 109 | 25,426 |
(1) At June 30, 2003, 252 units were available for leasing and 94 units were leased.
| Associated Estates Realty Corporation Condensed Consolidated Balance Sheets Second Quarter 2003 (Unaudited; dollar amounts in thousands) |
| Real estate assets | ||
| Investment in real estate | $ 914,939 | $ 910,540 |
| Construction in progress | 4,745 | 5,868 |
| Less: accumulated depreciation | (249,802) | (233,350) |
| Real estate, net | 669,882 | 683,058 |
| Cash and cash equivalents | 2,343 | 900 |
| Restricted cash | 10,227 | 13,326 |
| Other assets | 33,792 | 38,019 |
| $ 716,244 | $ 735,303 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Secured debt | $ 541,732 | $ 540,393 |
| Unsecured debt | 105 | 105 |
| Total indebtedness | 541,837 | 540,498 |
| Accounts payable and accrued expenses | 38,514 | 40,968 |
| Operating partnership minority interest | 2,172 | 2,972 |
| Total liabilities | 582,523 | 584,438 |
| Shareholders' equity | ||
| Preferred shares, Class A cumulative, without par value; | ||
| 3,000,000 authorized; 225,000 issued and outstanding | 56,250 | 56,250 |
| Common shares, without par value, $.10 stated value; 50,000,000 | ||
| authorized; 22,995,763 issued and 19,465,261 and 19,473,576 | ||
| outstanding at June 30, 2003 and December 31, 2002, respectively | 2,300 | 2,300 |
| Paid-in capital | 279,134 | 279,039 |
| Accumulated distributions in excess of accumulated net income | (172,025) | (154,798) |
| Less: Treasury shares, at cost, 3,530,502 and 3,522,187 shares | ||
| at June 30, 2003 and December 31, 2002, respectively | (31,938) | (31,926) |
| Total shareholders' equity | 133,721 | 150,865 |
| $ 716,244 | $ 735,303 |
| Associated Estates Realty Corporation Consolidated Statements of Operations Three and Six Months Ended June 30, 2003 and 2002 (Unaudited; dollar and share amounts in thousands) |
| REVENUE | ||||
| Rental income | $ 34,157 | $ 34,833 | $ 67,534 | $ 67,793 |
| Fee income and reimbursements | 3,274 | 5,524 | 6,801 | 11,633 |
| Other income | 1,387 | 1,343 | 2,620 | 2,412 |
| Total revenue | 38,818 | 41,700 | 76,955 | 81,838 |
| EXPENSES | ||||
| Property operating and maintenance | 18,237 | 16,728 | 36,038 | 31,939 |
| Depreciation and amortization | 8,750 | 8,509 | 17,443 | 16,943 |
| Direct property management and service companies expenses | 2,948 | 4,941 | 6,211 | 10,252 |
| Painting services and charges | 502 | 377 | 947 | 743 |
| General and administrative | 1,767 | 1,574 | 3,279 | 3,557 |
| Interest expense | 10,413 | 10,297 | 20,442 | 20,252 |
| Total expenses | 42,617 | 42,426 | 84,360 | 83,686 |
| (Loss) income before (loss) gain on disposition of properties, equity in net loss | ||||
| of joint ventures, minority interest and income from discontinued operations | (3,799) | (726) | (7,405) | (1,848) |
| (Loss) gain on disposition of properties | - | (39) | - | 216 |
| Equity in net loss of joint ventures | (64) | (388) | (418) | (630) |
| Minority interest in operating partnership | (21) | (109) | (43) | (225) |
| (Loss) income before income from discontinued operations | (3,884) | (1,262) | (7,866) | (2,487) |
| Income from discontinued operations | ||||
| Operating (loss) income | - | (48) | - | 11 |
| Gain on disposition of properties | - | 7,881 | - | 7,881 |
| Income from discontinued operations | - | 7,833 | - | 7,892 |
| Net (loss) income | (3,884) | 6,571 | (7,866) | 5,405 |
| Preferred share dividends | (1,372) | (1,371) | (2,743) | (2,742) |
| Net (loss) income applicable to common shares | $ (5,256) | $ 5,200 | $ (10,609) | $ 2,663 |
| Earnings per common share - basic: | ||||
| (Loss) income before income from discontinued operations | $ (0.27) | $ (0.13) | $ (0.55) | $ (0.27) |
| Income from discontinued operations | - | 0.40 | - | 0.41 |
| Net (loss) income applicable to common shares | $ (0.27) | $ 0.27 | $ (0.55) | $ 0.14 |
| Earnings per common share - diluted: | ||||
| (Loss) income before income from discontinued operations | $ (0.27) | $ (0.13) | $ (0.55) | $ (0.27) |
| Income from discontinued operations | - | 0.40 | - | 0.41 |
| Net (loss) income applicable to common shares | $ (0.27) | $ 0.27 | $ (0.55) | $ 0.14 |
| Funds From Operations (FFO)(1) | $ 2,815 | $ 5,716 | $ 5,835 | $ 11,309 |
| Funds Available For Distribution (FAD)(2) | $ 2,334 | $ 4,252 | $ 4,735 | $ 9,145 |
| Weighted average shares outstanding - basic | 19,404 | 19,475 | 19,393 | 19,457 |
| Weighted average shares outstanding - diluted | 19,404 | 19,475 | 19,393 | 19,457 |
(1) The Company defines FFO as the inclusion of all operating results, both recurring and non-recurring, except those results defined as "extraordinary items" under GAAP, adjusted for depreciation on real estate assets and amortization of intangible assets and gains and losses from the disposition of properties and land. Adjustments for joint ventures are calculated to reflect FFO on the same basis. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity. The Company generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because FFO can help one compare the operating performance of a company's real estate between periods or as compared to different REITs. It should be noted, however, that certain other real estate companies may define FFO in a different manner.
(2) The Company defines FAD as FFO plus depreciation other and amortization of deferred financing fees less recurring fixed asset additions. Fixed asset additions exclude development, investment and non-recurring capital additions. Adjustments for joint ventures are calculated to reflect FAD on the same basis. The Company considers FAD to be an appropriate supplemental measure of the performance of an equity REIT because, like FFO, it captures real estate performance by excluding gains or losses from the disposition of properties and land and depreciation on real estate assets and amortization of intangible assets. Unlike FFO, FAD also reflects that recurring capital expenditures are necessary to maintain the associated real estate.
| Associated Estates Realty Corporation Reconciliation of Funds from Operations (FFO) and Funds Available for Distribution (FAD) (In thousands, except per share data) |
| CALCULATION OF FFO AND FAD | ||||
| Net (loss) income applicable to common shares | $ (5,256) | $ 5,200 | $ (10,609) | $ 2,663 |
| Add: Depreciation - real estate assets | 8,040 | 7,978 | 16,055 | 15,883 |
| Depreciation - real estate assets - joint ventures | 384 | 288 | 655 | 627 |
| Amortization of joint venture deferred costs | 19 | - | 28 | - |
| Amortization of intangible assets | 78 | 92 | 156 | 233 |
| Less: Gain on disposition of properties | (450) | (7,842) | (450) | (8,097) |
| Funds From Operations (FFO) (1) | 2,815 | 5,716 | 5,835 | 11,309 |
| Add: Depreciation - other assets | 632 | 529 | 1,233 | 1,052 |
| Depreciation - other assets - joint ventures | 53 | 26 | 139 | 59 |
| Amortization of deferred financing fees | 295 | 304 | 587 | 628 |
| Amortization of deferred financing fees - joint ventures | 26 | 10 | 44 | 16 |
| Less: Fixed asset additions (2) | (1,446) | (2,311) | (3,059) | (3,790) |
| Fixed asset additions - joint ventures(2) | (41) | (22) | (44) | (129) |
| Funds Available for Distribution (FAD) | $ 2,334 | $ 4,252 | $ 4,735 | $ 9,145 |
| Weighted average shares outstanding - basic | 19,404 | 19,475 | 19,393 | 19,457 |
| Weighted average shares outstanding - diluted | 19,404 | 19,475 | 19,393 | 19,457 |
| PER SHARE INFORMATION: | ||||
| FFO - basic | $ 0.15 | $ 0.29 | $ 0.30 | $ 0.58 |
| FFO - diluted | 0.15 | 0.29 | 0.30 | 0.58 |
| Dividends | 0.17 | 0.25 | 0.34 | 0.50 |
| Payout ratio - FFO | 113.3% | 86.2% | 113.3% | 86.2% |
| Payout ratio - FAD | 141.7% | 113.6% | 136.0% | 106.4% |
(1) The Company defines FFO as the inclusion of all operating results, both recurring and non-recurring, except those results defined as "extraordinary items" under GAAP, adjusted for depreciation on real estate assets and amortization of intangible assets and gains and losses from the disposition of properties and land. Adjustments for joint ventures are calculated to reflect FFO on the same basis. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income as an indicator of the Company's operating performance or as an alternative to cash flow as a measure of liquidity. The Company generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because FFO can help one compare the operating performance of a company's real estate between periods or as compared to different REITs. It should be noted, however, that certain other real estate companies may define FFO in a different manner.
(2) Fixed asset additions exclude development, investment and non-recurring capital additions and only reflects the Company's prorata share of recurring joint venture capital additions. The Company considers FAD to be an appropriate supplemental measure of the performance of an equity REIT because, like FFO, it captures real estate performance by excluding gains or losses from the disposition of properties and land and depreciation on real estate assets and amortization of intangible assets. Unlike FFO, FAD also reflects that recurring capital expenditures are necessary to maintain the associated real estate.
| Associated Estates Realty Corporation Overview of Operating Expenses Related to Repairs and Maintenance and Capitalized Expenditures (In thousands, except estimated GAAP useful life and cost per unit) |
| Six Months Ended | |||
| OPERATING EXPENSES RELATED TO REPAIRS AND MAINTENANCE | |||
| Repairs and maintenance(2) | $ 7,157 | $ 419 | |
| Maintenance personnel labor cost(2) | 3,734 | 219 | |
| Total Operating Expenses Related to Repairs and Maintenance | 10,891 | 638 | |
| CAPITAL EXPENDITURES | |||
| Recurring Capital Expenditures | |||
| Amenities | 5 | 77 | 5 |
| Appliances | 5 | 390 | 23 |
| Building improvements(3) | 14 | 451 | 26 |
| Carpet and flooring | 5 | 1,449 | 85 |
| HVAC and mechanicals | 15 | 189 | 11 |
| Landscaping and grounds | 14 | 103 | 6 |
| Office/model | 5 | 5 | - |
| Suite improvements | 5 | 44 | 3 |
| Miscellaneous | 5 | 29 | 2 |
| Total Recurring Capital Expenditures - Properties | 2,737 | 161 | |
| Corporate capital expenditures(4) | 322 | 19 | |
| Total Recurring Capital Expenditures | 3,059 | 180 | |
| Total Recurring Capital Expenditures andRepairs and Maintenance | $13,950 | $ 818 | |
| Total Recurring Capital Expenditures | $ 3,059 | ||
| Investment/Revenue Enhancing Expenditures: | |||
| Build out Retail Space | 30 | 65 | |
| Siding replacement(5) | 30 | 114 | |
| Underground parking garage(5) | 30 | 1,587 | |
| Grand Total Capital Expenditures | $ 4,825 | ||
(1) Calculated using 17,074, including 1,407 acquisition, 1,246 affordable housing and 14,421 same store (market-rate).
(2) Included in property operating and maintenance expense in the Consolidated Statements of Operations.
(3) Includes primarily building exterior work, exterior painting and new roofs.
(4) Includes upgrades to computer hardware and software as well as corporate office furniture and fixtures.
(5) Related to a single market-rate asset.
| Associated Estates Realty Corporation Segment Information (Unaudited, in thousands, except per share data) |
| Revenue | $ 1,883 | $ 30,722 | $ 2,338 | $ 3,875 | $ 38,818 |
| Expenses | 1,304 | 15,920 | 1,013 | 3,450 | 21,687 |
| NOI(1) | 579 | 14,802 | 1,325 | 425 | 17,131 |
| Depreciation and amortization | 122 | 7,838 | 308 | 482 | 8,750 |
| General and administrative | 146 | 1,492 | 129 | - | 1,767 |
| Interest expense | 202 | 10,148 | 1 | 62 | 10,413 |
| 470 | 19,478 | 438 | 544 | 20,930 | |
| Income (loss) before gain on disposition of properties, equity | |||||
| in net income (loss) of joint ventures, minority interest and | |||||
| income from discontinued operations | 109 | (4,676) | 887 | (119) | (3,799) |
| Gain on disposition of properties | - | - | - | - | - |
| Equity in net income (loss) of joint ventures | 134 | (154) | (44) | - | (64) |
| Minority interest in operating partnership | - | - | - | (21) | (21) |
| Income (loss) before income from discontinued operations | 243 | (4,830) | 843 | (140) | (3,884) |
| Income from discontinued operations | - | - | - | - | - |
| Net income (loss) | 243 | (4,830) | 843 | (140) | (3,884) |
| Preferred share dividends | (69) | (1,149) | (88) | (66) | (1,372) |
| Net income (loss) applicable to common shares | $ 174 | $ (5,979) | $ 755 | $ (206) | $ (5,256) |
| Weighted average shares outstanding - basic | 19,404 | ||||
| Weighted average shares outstanding - diluted | 19,404 | ||||
| FFO per share - basic | $ 0.01 | $ 0.09 | $ 0.05 | $ - | $ 0.15 |
| FFO per share - diluted | $ 0.01 | $ 0.09 | $ 0.05 | $ - | $ 0.15 |
| Revenue | $ 1,600 | $ 31,632 | $ 2,353 | $ 6,115 | $ 41,700 |
| Expenses | 967 | 14,726 | 1,035 | 5,318 | 22,046 |
| NOI(1) | 633 | 16,906 | 1,318 | 797 | 19,654 |
| Depreciation and amortization | 52 | 7,734 | 305 | 418 | 8,509 |
| General and administrative | 130 | 1,330 | 114 | - | 1,574 |
| Interest expense | 5 | 10,057 | 133 | 102 | 10,297 |
| 187 | 19,121 | 552 | 520 | 20,380 | |
| Income (loss) before gain on disposition of properties, equity | |||||
| in net loss of joint ventures, minority interest and income | |||||
| from discontinued operations | 446 | (2,215) | 766 | 277 | (726) |
| Loss on disposition of properties | (39) | - | - | - | (39) |
| Equity in net loss of joint ventures | (272) | (108) | (8) | - | (388) |
| Minority interest in operating partnership | - | - | - | (109) | (109) |
| Income (loss) before income from discontinued operations | 135 | (2,323) | 758 | 168 | (1,262) |
| Income from discontinued operations | 7,833 | - | - | - | 7,833 |
| Net income (loss) | 7,968 | (2,323) | 758 | 168 | 6,571 |
| Preferred share dividends | (76) | (1,125) | (83) | (87) | (1,371) |
| Net income (loss) applicable to common shares | $ 7,892 | $ (3,448) | $ 675 | $ 81 | $ 5,200 |
| Weighted average shares outstanding - basic | 19,475 | ||||
| Weighted average shares outstanding - diluted | 19,475 | ||||
| FFO per share - basic | $ 0.02 | $ 0.21 | $ 0.05 | $ 0.01 | $ 0.29 |
| FFO per share - diluted | $ 0.02 | $ 0.21 | $ 0.05 | $ 0.01 | $ 0.29 |
(1) The Company evaluates the performance of its reportable segments based on NOI. NOI is determined by deducting property operating and maintenance expenses, direct property management and service companies expenses and painting service expense from total revenues. The Company considers NOI to be an appropriate supplemental measure of our performance because it reflects the operating performance of our real estate portfolio at the property level and is used to assess regional property level performance.
| Associated Estates Realty Corporation Segment Information (Unaudited, in thousands, except per share data) |
| Revenue | $ 3,788 | $ 60,654 | $ 4,674 | $ 7,839 | $ 76,955 |
| Expenses | 2,771 | 31,078 | 2,189 | 7,158 | 43,196 |
| NOI(1) | 1,017 | 29,576 | 2,485 | 681 | 33,759 |
| Depreciation and amortization | 230 | 15,654 | 617 | 942 | 17,443 |
| General and administrative | 270 | 2,770 | 239 | - | 3,279 |
| Interest expense | 388 | 19,924 | 2 | 128 | 20,442 |
| 888 | 38,348 | 858 | 1,070 | 41,164 | |
| Income (loss) before gain on disposition of properties, equity | |||||
| in net loss of joint ventures, minority interest and | |||||
| income from discontinued operations | 129 | (8,772) | 1,627 | (389) | (7,405) |
| Gain on disposition of properties | - | - | - | - | - |
| Equity in net loss of joint ventures | (72) | (294) | (52) | - | (418) |
| Minority interest in operating partnership | - | - | - | (43) | (43) |
| Income (loss) before income from discontinued operations | 57 | (9,066) | 1,575 | (432) | (7,866) |
| Income from discontinued operations | - | - | - | - | - |
| Net income (loss) | 57 | (9,066) | 1,575 | (432) | (7,866) |
| Preferred share dividends | (142) | (2,293) | (177) | (131) | (2,743) |
| Net income (loss) applicable to common shares | $ (85) | $ (11,359) | $ 1,398 | $ (563) | $ (10,609) |
| Weighted average shares outstanding - basic | 19,393 | ||||
| Weighted average shares outstanding - diluted | 19,393 | ||||
| FFO per share - basic | $ 0.01 | $ 0.21 | $ 0.10 | $ (0.02) | $ 0.30 |
| FFO per share - diluted | $ 0.01 | $ 0.21 | $ 0.10 | $ (0.02) | $ 0.30 |
| Revenue | $ 1,632 | $ 62,870 | $ 4,680 | $ 12,656 | $ 81,838 |
| Expenses | 994 | 28,843 | 2,102 | 10,995 | 42,934 |
| NOI(1) | 638 | 34,027 | 2,578 | 1,661 | 38,904 |
| Depreciation and amortization | 51 | 15,379 | 632 | 881 | 16,943 |
| General and administrative | 293 | 3,004 | 260 | - | 3,557 |
| Interest expense | (359) | 20,131 | 190 | 290 | 20,252 |
| (15) | 38,514 | 1,082 | 1,171 | 40,752 | |
| Income (loss) before gain on disposition of properties, equity | |||||
| in net loss of joint ventures, minority interest and | |||||
| income from discontinued operations | 653 | (4,487) | 1,496 | 490 | (1,848) |
| Gain on disposition of properties | 216 | - | - | - | 216 |
| Equity in net loss of joint ventures | (438) | (185) | (7) | - | (630) |
| Minority interest in operating partnership | - | - | - | (225) | (225) |
| Income (loss) before income from discontinued operations | 431 | (4,672) | 1,489 | 265 | (2,487) |
| Income from discontinued operations | 7,892 | - | - | - | 7,892 |
| Net income (loss) | 8,323 | (4,672) | 1,489 | 265 | 5,405 |
| Preferred share dividends | (114) | (2,280) | (168) | (180) | (2,742) |
| Net income (loss) applicable to common shares | $ 8,209 | $ (6,952) | $ 1,321 | $ 85 | $ 2,663 |
| Weighted average shares outstanding - basic | 19,457 | ||||
| Weighted average shares outstanding - diluted | 19,457 | ||||
| FFO per share - basic | $ 0.04 | $ 0.42 | $ 0.10 | $ 0.02 | $ 0.58 |
| FFO per share - diluted | $ 0.04 | $ 0.42 | $ 0.10 | $ 0.02 | $ 0.58 |
(1) The Company evaluates the performance of its reportable segments based on NOI. NOI is determined by deducting property operating and maintenance expenses, direct property management and service companies expenses and painting service expense from total revenues. The Company considers NOI to be an appropriate supplemental measure of our performance because it reflects the operating performance of our real estate portfolio at the property level and is used to assess regional property level performance.
| Associated Estates Realty Corporation "Same Store" Market Rate Data Operating Results for the Last Five Quarters (Unaudited, in thousands, except unit totals and per unit amounts) |
| Revenues | |||||
| Rental | $ 30,002 | $ 29,211 | $ 29,907 | $ 30,908 | $ 30,934 |
| Other income | 720 | 721 | 688 | 688 | 698 |
| Total Revenue | 30,722 | 29,932 | 30,595 | 31,596 | 31,632 |
| Property Operating and Maintenance | |||||
| Expenses | |||||
| Personnel | 4,191 | 3,945 | 3,975 | 4,203 | 4,040 |
| Advertising | 656 | 623 | 696 | 637 | 734 |
| Utilities | 1,574 | 2,120 | 1,697 | 1,893 | 1,603 |
| Repairs and maintenance | 3,525 | 2,837 | 2,685 | 3,445 | 3,316 |
| Real estate taxes and insurance | 4,626 | 4,314 | 3,517 | 3,833 | 3,930 |
| Other operating | 1,348 | 1,319 | 1,356 | 1,230 | 1,103 |
| Total Expenses | 15,920 | 15,158 | 13,926 | 15,241 | 14,726 |
| Net Operating Income | $ 14,802 | $ 14,774 | $ 16,669 | $ 16,355 | $ 16,906 |
| Operating Margin | 48.2% | 49.4% | 54.5% | 51.8% | 53.4% |
| Total Number of Units | 14,421 | 14,421 | 14,421 | 14,421 | 14,421 |
| NOI Per Unit | $ 1,026 | $ 1,024 | $ 1,156 | $ 1,134 | $ 1,172 |
| Average Net Collected Per Unit | $ 679 | $ 663 | $ 680 | $ 699 | $ 701 |
| Physical Occupancy - End of Period | 92.1% | 89.7% | 87.3% | 91.0% | 92.9% |
| Average Economic Occupancy | 83.1% | 80.6% | 82.7% | 85.5% | 86.1% |
| Associated Estates Realty Corporation "Same-Store" Market Rate Data Three and Six Months Ended June 30, 2003 and 2002 |
| REVENUE GROWTH | |||||
| Region | |||||
| Arizona | 204 | (6.1)% | 1.2% | 10.3% | 1.2% |
| Florida | 1,128 | (2.6) | 9.8 | (1.5) | 9.7 |
| Georgia | 706 | (4.6) | 4.0 | (8.8) | 4.1 |
| Indiana | 836 | (6.2) | 5.8 | 6.1 | 6.0 |
| Metro D.C. | 668 | (0.8) | 6.5 | 5.7 | 6.3 |
| Michigan | 2,888 | (2.5) | 19.9 | (6.6) | 19.9 |
| North Carolina | 276 | (8.0) | 1.5 | (11.0) | 1.6 |
| Ohio - Central Ohio | 3,135 | (0.2) | 20.1 | (2.6) | 19.5 |
| Ohio - Northeastern Ohio | 2,778 | (4.4) | 19.9 | 4.7 | 20.3 |
| Ohio - Northeastern - Congregate Care | 170 | (4.9) | 1.1 | (12.1) | 1.1 |
| Ohio - Toledo, Ohio | 1,060 | (4.3) | 6.5 | (0.5) | 6.6 |
| Pennsylvania | 468 | (0.5) | 2.7 | (7.4) | 2.7 |
| Texas | 104 | (0.7) | 1.0 | 12.7 | 1.0 |
| Total "Same Store" Market Rate | 14,421 | (2.9)% | 100.0% | (1.5)% | 100.0% |
| EXPENSE GROWTH | |||||
| Region | |||||
| Arizona | 204 | 6.0% | 1.3% | 3.0% | 1.4% |
| Florida | 1,128 | 18.4 | 10.1 | (11.6) | 9.2 |
| Georgia | 706 | (2.7) | 5.2 | 5.3 | 5.8 |
| Indiana | 836 | 37.7 | 7.6 | 20.0 | 6.0 |
| Metro D.C. | 668 | 17.3 | 4.8 | (0.3) | 4.4 |
| Michigan | 2,888 | 1.3 | 17.9 | 7.0 | 19.1 |
| North Carolina | 276 | 11.1 | 1.6 | 0.0 | 1.6 |
| Ohio - Central Ohio | 3,135 | 2.5 | 18.8 | 1.5 | 19.8 |
| Ohio - Northeastern Ohio | 2,778 | 2.6 | 20.5 | 5.7 | 21.6 |
| Ohio - Northeastern - Congregate Care | 170 | 15.1 | 2.2 | 13.9 | 2.1 |
| Ohio - Toledo, Ohio | 1,060 | 18.8 | 6.1 | 1.1 | 5.5 |
| Pennsylvania | 468 | 22.4 | 2.9 | 2.5 | 2.6 |
| Texas | 104 | 5.6 | 1.0 | 4.6 | 0.9 |
| Total "Same Store" Market Rate | 14,421 | 8.1% | 100.0% | 3.3% | 100.0% |
| NOI GROWTH | |||||
| Region | % | ||||
| Arizona | 204 | (18.9)% | 1.1% | (21.1)% | 1.1% |
| Florida | 1,128 | (19.2) | 9.4 | 8.1 | 10.2 |
| Georgia | 706 | (8.1) | 2.8 | (27.2) | 2.7 |
| Indiana | 836 | (43.8) | 3.9 | (3.4) | 6.1 |
| Metro D.C. | 668 | (9.5) | 8.2 | 8.8 | 7.9 |
| Michigan | 2,888 | (5.6) | 22.0 | (15.4) | 20.4 |
| North Carolina | 276 | (23.6) | 1.4 | (18.3) | 1.7 |
| Ohio - Central Ohio | 3,135 | (2.6) | 21.5 | (6.0) | 19.4 |
| Ohio - Northeastern Ohio | 2,778 | (11.2) | 19.3 | 3.9 | 19.0 |
| Ohio - Northeastern - Congregate Care | 170 | (171.0) | (0.2) | (69.6) | 0.2 |
| Ohio - Toledo, Ohio | 1,060 | (18.9) | 7.1 | (1.4) | 7.6 |
| Pennsylvania | 468 | (19.2) | 2.5 | (14.2) | 2.7 |
| Texas | 104 | (5.6) | 1.0 | 20.0 | 1.0 |
| Total "Same Store" Market Rate | 14,421 | (12.4)% | 100.0% | (5.3)% | 100.0% |
| Associated Estates Realty Corporation "Same-Store" Market Rate Data Three and Six Months Ended June 30, 2003 and 2002 |
| REVENUE GROWTH | |||||
| Region | |||||
| Arizona | 204 | (8.2)% | 1.2% | (9.4)% | 1.3% |
| Florida | 1,128 | (3.3) | 9.7 | 1.3 | 9.7 |
| Georgia | 706 | (4.1) | 4.1 | (8.2) | 4.2 |
| Indiana | 836 | (5.5) | 5.9 | 4.4 | 6.0 |
| Metro D.C. | 668 | (0.2) | 6.6 | 5.6 | 6.3 |
| Michigan | 2,888 | (3.5) | 19.9 | (5.5) | 19.9 |
| North Carolina | 276 | (11.2) | 1.5 | (10.8) | 1.6 |
| Ohio - Central Ohio | 3,135 | (1.6) | 19.8 | (1.9) | 19.4 |
| Ohio - Northeastern Ohio | 2,778 | (4.0) | 20.0 | 4.2 | 20.2 |
| Ohio - Northeastern - Congregate Care | 170 | (2.7) | 1.1 | (13.5) | 1.1 |
| Ohio - Toledo, Ohio | 1,060 | (6.3) | 6.5 | (2.1) | 6.7 |
| Pennsylvania | 468 | (3.6) | 2.7 | (7.8) | 2.7 |
| Texas | 104 | 0.7 | 1.0 | 12.6 | 0.9 |
| Total "Same Store" Market Rate | 14,421 | (3.5)% | 100.0% | (1.1)% | 100.0% |
| EXPENSE GROWTH | |||||
| Region | |||||
| Arizona | 204 | 3.1% | 1.3% | 8.3% | 1.4% |
| Florida | 1,128 | 12.6 | 10.2 | (9.8) | 9.8 |
| Georgia | 706 | 1.7 | 5.3 | 2.8 | 5.6 |
| Indiana | 836 | 27.7 | 6.6 | 11.7 | 5.5 |
| Metro D.C. | 668 | 13.6 | 4.8 | 0.1 | 4.6 |
| Michigan | 2,888 | 3.5 | 17.9 | 2.4 | 18.7 |
| North Carolina | 276 | 8.4 | 1.6 | (4.4) | 1.6 |
| Ohio - Central Ohio | 3,135 | 2.2 | 18.5 | 1.8 | 19.5 |
| Ohio - Northeastern Ohio | 2,778 | 6.0 | 21.5 | 1.1 | 21.9 |
| Ohio - Northeastern - Congregate Care | 170 | 9.8 | 2.3 | 12.4 | 2.2 |
| Ohio - Toledo, Ohio | 1,060 | 14.9 | 6.0 | 4.0 | 5.6 |
| Pennsylvania | 468 | 20.4 | 3.0 | 5.1 | 2.7 |
| Texas | 104 | 9.5 | 1.0 | (0.5) | 0.9 |
| Total "Same Store" Market Rate | 14,421 | 7.8% | 100.0% | 1.4% | 100.0% |
| NOI GROWTH | |||||
| Region | % | ||||
| Arizona | 204 | (19.3)% | 1.1% | (21.8)% | 1.2% |
| Florida | 1,128 | (16.9) | 9.2 | 13.0 | 9.7 |
| Georgia | 706 | (13.6) | 2.9 | (22.0) | 2.9 |
| Indiana | 836 | (29.9) | 5.1 | (0.3) | 6.4 |
| Metro D.C. | 668 | (7.0) | 8.4 | 8.5 | 7.9 |
| Michigan | 2,888 | (8.7) | 22.0 | (10.6) | 20.9 |
| North Carolina | 276 | (27.1) | 1.4 | (15.4) | 1.6 |
| Ohio - Central Ohio | 3,135 | (4.9) | 21.1 | (4.9) | 19.3 |
| Ohio - Northeastern Ohio | 2,778 | (14.0) | 18.5 | 7.4 | 18.7 |
| Ohio - Northeastern - Congregate Care | 170 | (153.6) | (0.1) | (77.2) | 0.2 |
| Ohio - Toledo, Ohio | 1,060 | (19.5) | 7.0 | (5.5) | 7.6 |
| Pennsylvania | 468 | (24.0) | 2.3 | (16.4) | 2.7 |
| Texas | 104 | (5.9) | 1.1 | 25.0 | 0.9 |
| Total "Same Store" Market Rate | 14,421 | (13.0)% | 100.0% | (3.1)% | 100.0% |
| Associated Estates Realty Corporation "Same-Store" Market Rate Data As of June 30, 2003 and June 30, 2002 |
RENTAL
| Average | Q2 | Q2 | % | Q2 | Q2 | Q2 | Q2 | ||
| Arizona | 204 | 14 | $ 602 | $ 630 | (4.4)% | 94.6% | 80.4% | 56.9% | 100.0% |
| Florida | 1,128 | 7 | 863 | 890 | (3.0) | 89.5 | 96.1 | 60.6 | 59.2 |
| Georgia | 706 | 16 | 575 | 599 | (4.0) | 86.5 | 85.6 | 68.6 | 53.8 |
| Indiana | 836 | 8 | 698 | 737 | (5.3) | 95.8 | 97.4 | 84.2 | 83.7 |
| Metro D.C. | 668 | 17 | 975 | 984 | (0.9) | 94.8 | 96.7 | 48.5 | 49.1 |
| Michigan | 2,888 | 13 | 677 | 689 | (1.7) | 93.5 | 93.6 | 64.3 | 71.5 |
| North Carolina | 276 | 9 | 554 | 604 | (8.3) | 93.5 | 88.0 | 55.1 | 81.2 |
| Ohio - Central Ohio | 3,135 | 11 | 636 | 642 | (0.9) | 96.9 | 95.2 | 59.1 | 63.3 |
| Ohio - Northeastern Ohio | 2,778 | 13 | 660 | 702 | (6.0) | 86.2 | 91.8 | 63.1 | 67.4 |
| Ohio - Northeastern - Congregate | 170 | 21 | 653 | 690 | (5.4) | 69.4 | 62.9 | 11.8 | 16.5 |
| Ohio - Toledo, Ohio | 1,060 | 22 | 602 | 623 | (3.4) | 94.3 | 93.7 | 75.5 | 82.6 |
| Pennsylvania | 468 | 17 | 591 | 595 | (0.7) | 89.7 | 85.9 | 62.4 | 70.9 |
| Texas | 104 | 10 | 936 | 942 | (0.6) | 98.1 | 100.0 | 65.4 | 61.5 |
| Total/Average "Same Store" | |||||||||
| Market Rate | 14,421 | 14 | $ 679 | $ 701 | (3.1)% | 92.1% | 92.9% | 63.1% | 67.6% |
(1) Represents gross potential rents less vacancies and allowances.
(2) Represents physical occupancy at the end of the quarter.
(3) Represents the number of units turned over for the period, divided by the number of units in the region, annualized.
(4) Age shown in years.
| Associated Estates Realty Corporation Debt Structure and Share Analysis as of June 30, 2003 (Dollar and share amounts in thousands) |
| FIXED RATE | |||
| Unsecured | $ 105 | 0.0% | 6.9% |
| Secured | 488,792 | 90.3% | 7.7% |
| Total fixed rate debt | 488,897 | 90.3% | 7.7% |
| VARIABLE RATE DEBT | |||
| Secured lines of credit | - | 0.0% | 2.8% |
| Secured | 52,940 | 9.7% | 4.4% |
| Total variable rate debt | 52,940 | 9.7% | 4.4% |
| TOTAL DEBT | $ 541,837 | 100.0% | 7.3% |
| Interest coverage ratio | 1.45:1 | ||
| Fixed charge coverage ratio(1) | 1.29:1 | ||
| Weighted average maturity | 6.0 years |
| SCHEDULED PRINCIPAL MATURITIES | |||
| 2003 | $ - | $ - | $ - |
| 2004 | 105 | 17,695 | 17,800 |
| 2005 | - | 28,789 | 28,789 |
| 2006 | - | 11,625 | 11,625 |
| 2007 | 83,779 | 83,779 | |
| Thereafter | - | 399,844 | 399,844 |
| Total | $ 105 | $ 541,732 | $ 541,837 |
| CAPITALIZED INTEREST | ||||
| Interest capitalized | $ (7) | $ (29) | ||
| INTEREST RATE SWAP | ||||
| Amortization of termination fee (2) | $ (119) | $ (238) | ||
| Interest rate swap expense | (217) | (70) | (433) | (70) |
| Total | $ (336) | $ (671) | ||
(1) Represents interest expense and preferred stock and restricted stock dividend payment coverage.
(2) On December 11, 2000, the Company executed termination agreements for two swaps. The Company received termination payments totaling $3.2 million, which are being amortized over the remaining terms of the swaps through 2007, at the rate of $39,693 per month or $476,317 per year.
| Associated Estates Realty Corporation Joint Venture Summary Data For the Three and Six Months Ended June 30, 2003 and 2002 (Unaudited, dollar amounts in thousands) |
| Balance Sheet Data | June 30, | December 31, |
| Real estate, net | $ 100,701 | $ 91,046 |
| Other assets | 2,692 | 2,077 |
| $ 103,393 | $ 93,123 | |
| Amount payable to the Company | $ - | $ 112 |
| Mortgage payable | 79,800 | 68,852 |
| Other liabilities | 2,216 | 3,238 |
| Equity | 21,377 | 20,921 |
| $ 103,393 | $ 93,123 |
| Beneficial Interest in Operations | ||||
| Revenue | $ 1,106 | $ 1,044 | $ 2,120 | $ 3,164 |
| Cost of operations | 732 | 733 | 1,348 | 2,234 |
| Revenue less cost of operation | 374 | 311 | 772 | 930 |
| Interest income | 1 | 2 | 2 | 4 |
| Interest expense | (403) | (383) | (776) | (881) |
| Depreciation - real estate assets | (384) | (288) | (655) | (627) |
| Depreciation - other | (53) | (26) | (139) | (59) |
| Amortization of deferred costs | (19) | - | (28) | - |
| Amortization of deferred financing fees | (26) | (10) | (44) | (16) |
| Discontinued Operations: | ||||
| Results of operations | (4) | 6 | - | 19 |
| Gain on sale of property | 450 | - | 450 | - |
| Net income (loss) | (64) | (388) | (418) | (630) |
| Add: | ||||
| Depreciation - real estate assets | 384 | 288 | 655 | 627 |
| Amortization of deferred costs | 19 | - | 28 | - |
| Less: | ||||
| Gain on sale of property | (450) | - | (450) | - |
| Funds From Operations | $ (111) | $ (100) | $ (185) | $ (3) |
| Summary of Debt | ||||
| Lakeshore Village (50.0% Affordable Housing) | 108 | $ 3,830 | $ 1,915 | 11/1/2023 |
| Berkley Manor (49.0% Market Rate) | 252 | 19,439 | 9,525 | 10/16/2003 |
| Idlewylde Phase I (49.0% Market Rate) | 308 | 16,955 | 8,308 | 5/31/2005 |
| Idlewylde Phase II (49.0% Market Rate)(1) | 535 | 24,759 | 12,132 | 12/10/2003 |
| Courtney Chase (24.0% Market Rate) (2) (3) | 252 | 14,817 | 3,556 | 6/1/2005 |
| Total joint venture debt | 1,455 | $ 79,800 | $ 35,436 |
(1) The Company has guaranteed the payment of the total loan which is for a maximum of $30.0 million.
(2) The Company has guaranteed the payment of the total loan which is for a maximum of $15.8 million.
(3) Represents units currently available for leasing. Total units when construction is completed will be 288 units for Courtney Chase.