Exhibit 99.1
PRESIDENTIAL REALTY CORPORATION NEWS
180 SOUTH BROADWAY
WHITE PLAINS, N.Y. 10605
(914) 948-1300
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FOR IMMEDIATE RELEASE
White Plains, New York
August 10, 2006
Presidential Realty Corporation, a real estate investment trust whose shares are
traded on the American Stock Exchange (PDLA and PDLB), is engaged principally in
the ownership of income-producing real estate and in the holding of notes and
mortgages secured by real estate.
Results of operations for the six months ended June 30, 2006:
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The Company's net loss for the six months ended June 30, 2006 was $.56 per share
(basic) compared to net income of $.79 per share (basic) for the six months
ended June 30, 2005.
Continuing Operations:
Loss from continuing operations before net gain from sales of properties was
$.54 per share for the 2006 period compared to $.07 per share for the 2005
period. This increase in loss of $.47 per share is primarily attributable to
lower revenues ($.14 per share), an increase in the loss from joint ventures
($.24 per share) and a decrease in the income from partnership ($.05 per share).
Revenues decreased primarily due to lower interest income as a result of
principal repayments on notes receivable and a nonrecurring prepayment fee
earned in 2005 associated with such principal repayments.
During 2004 and 2005, the Company invested in four joint ventures and as a
result owns a 29% interest in entities that own nine shopping mall properties.
For the six months ended June 30, 2006, the Company received distributions from
the joint ventures in the amount of $1,956,000, which included payments of
interest in the amount of $1,424,000 and return on investment in the amount of
$532,000. For the six months ended June 30, 2005, the Company received
distributions from joint ventures in the amount of $1,178,000, which included
payments of interest in the amount of $845,000 and return on investment in the
amount of $333,000. The Company accounts for these investments under the equity
method of accounting. The 2006 period reflects six months of operations for all
nine of the mall properties and the 2005 period reflects six months of
operations for seven of the mall properties. The equity in the loss of joint
ventures was $.26 per share for the 2006 period and included noncash charges for
depreciation and amortization expense of $.35 per share and amortization of
deferred financing costs and in-place lease values of $.29 per share for an
aggregate total for noncash charges of $.64 per share. The equity in the loss of
joint ventures was $.02 per share for the 2005 period and included noncash
charges for depreciation and amortization expense of $.20 per share and
amortization of deferred financing costs and in-place lease values of $.19 per
share for an aggregate total for noncash charges of $.39 per share.
Income from partnership decreased primarily due to higher vacancy loss at the
property owned by the partnership.
There was no net gain from sales of properties in the 2006 period compared to
$.34 per share in the 2005 period. The gain in the 2005 period was from the
recognition of a deferred gain from the sale of our New Haven property in 1984
as a result of an $8,550,000 principal repayment received in 2005.
PRESIDENTIAL REALTY CORPORATION NEWS
180 SOUTH BROADWAY
WHITE PLAINS, N.Y. 10605
(914) 948-1300
- -------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
White Plains, New York
August 10, 2006
Discontinued Operations:
Loss from discontinued operations (before net gain from sales of discontinued
operations) for the 2006 period was $.02 per share compared to $.07 per share
for the 2005 period. There was no net gain from sales of discontinued operations
in the 2006 period compared to $.59 per share in the 2005 period. The gain in
the 2005 period was from the sale of the Fairlawn Gardens property.
Results of operations for the three months ended June 30, 2006:
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The Company's net loss for the three months ended June 30, 2006 was $.23 per
share compared to net income of $.42 per share for the three months ended June
30, 2005.
Continuing Operations:
Loss from continuing operations before net gain from sales of properties was
$.22 per share for the 2006 period compared to $.14 per share for the 2005
period. This increase in loss of $.08 per share is primarily attributable to
lower revenues ($.02 per share), an increase in the loss from joint ventures
($.02 per share) and a decrease in the income from partnership ($.02 per share).
Revenues decreased primarily due to lower interest income on notes receivable.
The loss from joint ventures for the 2006 period reflects three months of
operations for all nine of the mall properties and the 2005 period reflects
three months of operations for seven of the mall properties. The equity in the
loss of joint ventures was $.10 per share for the 2006 period and included
noncash charges for depreciation and amortization expense of $.15 per share and
amortization of deferred financing costs and in-place lease values of $.18 per
share for an aggregate total for noncash charges of $.33 per share. The equity
in the loss of joint ventures was $.08 per share for the 2005 period and
included noncash charges for depreciation and amortization expense of $.10 per
share and amortization of deferred financing costs and in-place lease values of
$.09 per share for an aggregate total for noncash charges of $.19 per share. For
the three months ended June 30, 2006, the Company received distributions from
the joint ventures in the amount of $1,171,000, which included payments of
interest in the amount of $639,000 and return on investment in the amount of
$532,000. For the three months ended June 30, 2005, the Company received
distributions from joint ventures in the amount of $371,000, all of which were
payments of interest.
Income from partnership decreased primarily due to higher vacancy loss at the
property owned by the partnership.
PRESIDENTIAL REALTY CORPORATION NEWS
180 SOUTH BROADWAY
WHITE PLAINS, N.Y. 10605
(914) 948-1300
- -------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
White Plains, New York
August 10, 2006
Discontinued Operations:
Loss from discontinued operations (before net gain from sales of discontinued
operations) for the 2006 period was $.01 per share compared to $.03 per share of
the 2005 period. There was no net gain from sales of discontinued operations in
the 2006 period compared to $.59 per share in the 2005 period. The gain in the
2005 period was from the sale of the Fairlawn Gardens property.
Dividend Declared:
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The Company has announced that it has declared regular quarterly cash
distributions of $.16 per share on its Class A and Class B shares payable on
September 29, 2006 to shareholders of record on September 8, 2006 and payable on
December 29, 2006 to shareholders of record on December 8, 2006. The dividends
represent a yield of 9.00% on the Class A shares and 8.89% on the Class B shares
based on the last sales price of such shares on the American Stock Exchange.
PRESIDENTIAL REALTY CORPORATION NEWS
180 SOUTH BROADWAY
WHITE PLAINS, N.Y. 10605
(914) 948-1300
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FOR IMMEDIATE RELEASE
White Plains, New York
August 10, 2006
RESULTS OF OPERATIONS
(Unaudited)
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
2006 2005 2006 2005
---- ---- ---- ----
Gross revenues (excluding revenues from discontinued
operations and net gain from sales of properties) $1,889,000 $2,422,000 $952,000 $1,035,000
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Loss before net gain from sales of properties ($2,095,000) ($267,000) ($849,000) ($534,000)
Net gain from sales of properties - 1,300,000 - -
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Income (loss) from continuing operations (2,095,000) 1,033,000 (849,000) (534,000)
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Loss from discontinued operations (99,000) (285,000) (67,000) (119,000)
Net gain from sales of discontinued operations - 2,255,000 - 2,267,000
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Total income (loss) from discontinued operations (99,000) 1,970,000 (67,000) 2,148,000
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Net Income (Loss) ($2,194,000) $3,003,000 ($916,000) $1,614,000
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Per share of common stock (basic and diluted):
Loss before net gain from sales of properties ($0.54) ($0.07) ($0.22) ($0.14)
Net gain from sales of properties - 0.34 - -
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Income (loss) from continuing operations (0.54) 0.27 (0.22) (0.14)
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Loss from discontinued operations (0.02) (0.07) (0.01) (0.03)
Net gain from sales of discontinued operations - 0.59 - 0.59
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Total income (loss) from discontinued operations (0.02) 0.52 (0.01) 0.56
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Net Income (Loss) per Common Share - basic ($0.56) $0.79 ($0.23) $0.42
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- diluted ($0.56) $0.78 ($0.23) $0.42
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Average shares outstanding - basic 3,901,290 3,821,847 3,907,980 3,823,669
============= ============= ============= =============
- diluted 3,901,290 3,835,645 3,907,980 3,839,192
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Cash distributions paid per common share $0.32 $0.32 $0.16 $0.16
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PRESIDENTIAL REALTY CORPORATION NEWS
180 SOUTH BROADWAY
WHITE PLAINS, N.Y. 10605
(914) 948-1300
- -------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
White Plains, New York
August 10, 2006
Certain statements in this release that are not historical fact may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on management's
current expectations and beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. The following factors, among
others, could cause actual results to differ materially from those described in
the forward-looking statements: trends and uncertainties in the general economic
climate; the supply of and demand for residential, mall and other commercial
properties; interest rate levels; the availability of financing and other risks
associated with the development, acquisition, ownership and operation of
properties. Additional factors that could cause Presidential's results to differ
materially from those described in the forward-looking statements can be found
in the 2005 Annual Report on Form 10-KSB. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any changes in the
Company's expectations with regard thereto or change in events, conditions or
circumstances on which any such statement is based.
For further information contact:
Jeffrey F. Joseph, President
Presidential Realty Corporation
At the above address and telephone number