PRESS RELEASE EXHIBIT 99.40
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 ANNOUNCES EARNINGS
Century Realty Trust today reported consolidated net income for
its first quarter ended March 31, 2005, of $176,474 or $.10 per
share, and funds from operations of $517,567, or $0.29 per
share, on gross revenue from continuing operations of
$2,664,694. For the same period a year ago, the Trust reported
a net loss of $59,306, or $0.03 per share, and funds from
operations of $334,015, or $.19 per share, on gross revenue from
continuing operations of $2,591,252. Neither period included
gain from the sale of property. Per share amounts are both
basic and diluted.
In April 2004, the Trust sold a 176-unit Indianapolis apartment
community, and in December, entered into contracts to sell a
256-unit apartment community and an unoccupied former restaurant
property, both located in Indianapolis. Operating results of
all three of those properties for the three months ended March
31, 2005 and 2004 were classified as income or loss from
discontinued operations. In the aggregate, results of
operations for the discontinued operations for the three months
ended March 31, 2005 and 2004 amounted to income of $56,189 and
a loss of $10,499, respectively. Management expects that the
sale of the former restaurant property will close late in the
second quarter or early in the third quarter. The prospective
purchaser of the apartment property has the option to defer
closing of that purchase until late in the third quarter.
The improvement in operating results for the quarter ended
March 31, 2005 from the comparable period a year ago resulted
primarily from apartment operations. Economic occupancy of the
Trust's apartments, which account for 94% of its gross operating
income, averaged 89.9% during the first quarter of 2005, up
from 84.5% during the comparable period of 2004. Physical
occupancy held steady at about 92% during the first quarter,
however, the favorable economic impact reflected the elimination
of rental incentives and selective discounts in rental rates at
some locations.
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 (loss) to funds from
operations:
Three Months Ended
March 31,
2005 2004
______ ______
Net Income (loss) $176,474 ($ 59,306)
Plus Depreciation 355,473 410,857
Less Minority interest
portion of depreciation (12,730) (15,586)
Less Depreciation, other than
investment properties (1,650) (1,950)
________ ________
Funds from operations
allocable to the Trust $517,567 $334,015
________ ________
________ ________
Income for quarters ended March 31, 2005 and 2004 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.
The average number of outstanding shares of the Trust for the
three months ended March 31, 2005 and 2004 was 1,797,979 and
1,784,684, respectively. At March 31, 2005, the Trust had total
assets of $46,043,584 and shareholders' equity of $9,697,611.
At March 31, 2004, the Trust had total assets of $45,530,997 and
shareholders' equity of $8,611,716.
Indianapolis, IN., May 16, 2005