SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 27, 2004
CENTURY REALTY TRUST
______________________________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Indiana 0-7716 35-1284316
_______________________________ _____________ ____________________
(State or Other Jurisdiction of (Commission (IRS Employer or
Incorporation) File Number) Identification No.)
823 Chamber of Commerce Building, Indianapolis, Indiana 46204
______________________________________________________________________________
(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) (317) 632-5467
______________________________________________________________________________
Not Applicable
______________________________________________________________________________
(Former Name or Former Address if Changed Since Last Report
Item 12. Results of Operations and Financial Condition.
This Current Report on Form 8-K is for the purpose of furnishing to the
commission, without filing, the press release dated February 27, 2004, that
announced net losses for the the three months and year ended December 31,
2003. The text of that press release is set forth in Exhibit 99.35 hereto.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
___________ ___________
99.35 Press Release dated February 27, 2004
CENTURY REALTY TRUST
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTURY REALTY TRUST
February 27, 2004 By: /s/ John I. Bradshaw, Jr.
_______________ ____________________________________
Date John I. Bradshaw, Jr.
President and Treasurer
Chief Executive Officer
PRESS RELEASE EXHIBIT 99.35
CENTURY REALTY TRUST
320 N. Meridian St., Suite 823, Indianapolis, IN 46204
Contact: John I. Bradshaw, Jr.
Phone: (317) 632-5467
FAX: (317) 685-1588
FOR IMMEDIATE RELEASE
CENTURY REALTY TRUST REPORTS LOSS FOR
2003 FOURTH QUARTER AND YEAR
Century Realty Trust today reported a consolidated net loss for the year
ended December 31, 2003, of $540,658 or $.30 per share, and positive funds
from operations of $1,130,946 or $0.64 per share, on gross revenue of
$12,038,203. For the previous year, the Trust reported net income of
$689,239, or $0.39 per share and funds from operations of $2,551,764, or
$1.45 per share, on gross revenue of $12,844,001. Neither period included
gain from the sale of property. Per share amounts are both basic and diluted.
For the fourth quarter ended December 31, 2003, the consolidated net
loss was $363,178, or $.20 per share, and positive funds from operations was
$49,330, or $0.03 per share on gross revenue of $3,000,504. For the same
quarter of 2002, the Trust reported net income of $218,658, or $0.13 per share
and funds from operations of $620,167, or $0.35 per share on gross revenue of
$3,104,858. Per share amounts are both basic and diluted.
The declines in operating results for the quarter and year ended December
31, 2003 from the comparable periods a year ago resulted primarily from a
decline in apartment occupancy and an increase in operating expenses.
Economic occupancy of the Trust's apartments, which account for 94% of its
gross operating income, averaged 83.1% and 82.9% during the fourth quarter
and year of 2003, respectively, down from averages of 86.8% and 88.8% during
the comparable periods of 2002. Management attributes the lower current
occupancy to the loss of many apartment residents who have opted to become
home owners due to attractive mortgage interest rates, and to relatively high
unemployment that has limited the number of prospective apartment residents.
A reassessment of all real estate in Indiana effective for payments due
in 2003 increased real estate tax expense by $169,700 (51.7%) in the fourth
quarter and $323,900 (24.8%) for all of 2003 compared with the prior year
periods. Management has appealed for a review of the new assessments at most
locations. The impact of the higher real estate taxes was weighted more heavily
in the later months of 2003 due to delayed billing by many of the taxing
districts. Approximately one-half of the increase in real estate tax expense
in 2003 is attributed to having under-estimated the amounts accrued in 2002
for taxes payable in 2003. Differences between real estate taxes payable in
2004 and the estimated amounts accrued in 2003 for such payments are not
expected to have a significant impact on real estate tax expense in 2004.
Most of the increase in other operating expenses in the 2003 periods resulted
from the increase in the number of vacant apartment units and management's
efforts to reduce those vacancies.
Real estate industry analysts generally consider "Funds from Operations" to
be an appropriate measure of performance of an equity REIT. Funds from
operations is defined as income before gains (losses) on investments and
extraordinary items adjusted for certain non-cash items, primarily provisions
for depreciation. Funds from operations does not represent cash flow from
operations, and should not be considered an alternative to net income as a
measure of operating performance. In addition, comparability to other
companies that report funds from operations is not recommended due to
differences in the definitions and methods of calculation used by various
companies. For purposes of computing the per share amounts, the minority
interest in funds from operations provided by consolidated partnership-owned
properties is excluded. Following is a reconciliation of net income to funds
from operations:
Three Months Ended Year Ended
December 31, December 31,
_______________________ _______________________
2003 2002 2003 2002
___________ __________ ___________ __________
Net Income (loss) ($363,178) $218,657 ($ 540,658) $ 689,239
Plus Depreciation 430,145 418,381 1,749,036 1,804,582
Less Minority interest
portion of depreciation (15,712) (17,534) (69,657) (87,537)
Plus nonrecurring write-off
of mortgage loan costs - (7) - 192,543
Less minority interest portion
of nonrecurring write-off - 2,082 - (38,855)
Less Depreciation, other than
investment properties (1,925) (1,412) (7,775) (8,207)
Funds from operations ___________ __________ ___________ __________
allocable to the Trust $ 49,330 $621,167 $1,130,946 $2,551,765
Net income for the quarter and year ended December 31, 2002 was not
reduced by federal income tax because the Trust is treated as a Real Estate
Investment Trust, and distributed all of its otherwise taxable income to its
shareholders.
Management believes that forward-looking statements contained herein are
reasonable and informative; however, the Trust's actual results could differ
materially from those set forth in such forward-looking statements for reasons
management cannot predict. Factors that might cause such a difference include,
among others, the following: dependence on the performance of key personnel
and independent property management firms; risks associated with the high
level of competition in the Trust's markets; changes in mortgage interest
rates; changes in real estate tax rates and/or assessed valuations; and, the
unpredictability of economic and regulatory conditions.
The average number of outstanding shares of the Trust for the year ended
December 31, 2003 and 2002 was 1,774,987 and 1,758,700, respectively, At
December 31, 2003, the Trust had total assets of $45,549,180 and shareholders'
equity of $8,643,552 At December 31, 2002, the Trust had total assets of
$46,958,426 and shareholders' equity of $9,670,202.
Indianapolis, IN, February 27, 2004