PRESS RELEASE EXHIBIT 99.41
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 RESULTS
Century Realty Trust today reported consolidated net
income for the six months ended June 30, 2005, of $407,720 or
$.23 per share, and funds from operations of $1,090,428, or $0.61
per share, on gross revenue from continuing operations of
$5,338,363. The Trust reported no gains or losses during the
period from the sale of assets. For the same period a year ago,
net income, including $2,689,599 gain on the sale of an
apartment property, amounted to $2,496,220, or $1.40 per share,
and funds from operations of $618,503, or $0.35 per share, on
gross revenue from continuing operations of $5,179,181. Per
share amounts are both basic and diluted.
For the second quarter ended June 30, 2005, the
consolidated net income was $231,246, or $0.13 per share, and
funds from operations was $572,861, or $0.32 per share, on gross
revenue from continuing operations of $2,673,669. For the same
quarter of 2004, net income, including $2,689,599 gain on the
sale of an apartment property, was $2,555,526, or $1.43 per
share, and funds from operations was $284,488, or $0.16 per share,
on gross revenue from continuing operations of $2,587,929. Per
share amounts are both basic and diluted.
For the six months ended June 30, 2005, income from
discontinued operations amounted to $150,164, or $.09 per share,
compared with $2,650,317, or $1.49 per share, for the six months
ended June 30, 2004. For the quarter ended June 30, 2005,
income from discontinued operations amounted to $93,975, or $.05
per share, compared with $2,660,816, or $1.49 per share, for the
second quarter of 2004. The portion of funds from operations
attributable to discontinued operations for the six months ended
June 30, 2005 and 2004 amounted to $150,164 and $101,733, respectively.
For the quarters ended June 30, 2005 and 2004, funds from operations
attributable to discontinued operations amounted to $93,975 and
$26,987, respectively.
In April 2004 the Trust sold an Indianapolis apartment
community that it had owned since 1973 for $3,150,000, and
realized a gain of $2,689,599. The operating results of that
property for 2004, together with the gain on its sale, are
reported as income from discontinued operations. In December
2004 the Trust entered into contracts to sell a 256-unit
apartment community and an unoccupied former restaurant
property, both located in Indianapolis. Operating results of
those two properties held for sale for the three month and six
month periods ended June 30, 2005 and 2004 are classified as
income or loss from discontinued operations.
The Trust sold the former restaurant property in July and
realized a gain of approximately $597,000. The net proceeds
from the sale, approximately $776,000, was placed in escrow for
possible investment in replacement property not yet identified.
If the Trust does not reinvest the sale proceeds, the gain will
be recognized for income tax purposes. It has been the policy
of the Trust to distribute gains on the sale of investments to
its shareholders when such gains are recognized for income tax
purposes.
The improvement in operating results for the quarter and
six months ended June 30, 2005, from the comparable periods 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 90.8% and 90.9% during the
second quarter and first half of 2005, respectively, up from
89.9% and 88.1% during the comparable periods of 2004.
It is accepted practice in the real estate industry to
evaluate the performance of Real Estate Investment Trusts
(REITs), in part, by a non-GAAP financial measure called "Funds
from Operations" (FFO). We believe that FFO is helpful to
investors because it is a widely recognized measure of the
performance of REITs and provides a relevant basis for
comparison among REITs. We consider FFO in evaluating our own
operating performance. We believe that FFO should be considered
along with, but not as an alternative to, net income and cash
flow determined in accordance with generally accepted accounting
principles (GAAP), as a measure of our activities.
Funds from operations is defined as net income computed in
accordance with GAAP excluding gains and losses from the sale of
real estate, extraordinary items, the cumulative effects of
accounting changes and property related depreciation and
amortization all determined on a consistent basis in accordance
with GAAP. 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. For purposes
of computing the per share amounts, the minority interest in
funds from operations provided by consolidated partnership-owned
properties is excluded.
We have changed our presentation of FFO this period, to
conform to the definition provided by the National Association
of Real Estate Investment Trusts (NAREIT). Following is a
reconciliation of net income to FFO, including discontinued
operations:
Three Months Ended Six Months Ended
June 30, June 30,
______________________ ______________________
2005 2004 2005 2004
__________ __________ __________ __________
Net income $ 231,246 $2,555,526 $ 407,720 $2,496,220
Less gain on sale
of property - (2,689,599) - (2,689,599)
Plus depreciation,
investment properties 353,823 433,499 707,646 842,406
Less minority interest
portion of depreciation (12,208) (14,938) (24,938) (30,524)
__________ __________ __________ __________
Funds from operations
allocable to the Trust $ 572,861 $ 284,488 $1,090,428 $ 618,503
__________ __________ __________ __________
__________ __________ __________ __________
FFO per share,
basic and diluted $ .32 $ .16 $ .61 $ .35
__________ __________ __________ __________
__________ __________ __________ __________
Average number of
outstanding shares 1,799,464 1,786,550 1,798,725 1,785,751
At June 30, 2005, the Trust had total assets of $45,813,488 and
shareholders' equity of $9,937,497. At June 30, 2004, the Trust had total
assets of $47,605,883 and shareholders' equity of $11,183,116.
Indianapolis, IN., August 15, 2005