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 14, 2007
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.
In 2006, the Company purchased an additional 25% limited partnership interest in
the Hato Rey Partnership, which increased the ownership percentage in the Hato
Rey Partnership to 59% effective as of January 1, 2007. As a result, as of
January 1, 2007, the Company has consolidated the Hato Rey Partnership in the
Company's consolidated financial statements.
Results of operations for the three months ended June 30, 2007:
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The Company's net loss for the three months ended June 30, 2007 was $.31 per
share compared to $.23 per share for the three months ended June 30, 2006.
Continuing Operations:
Loss from continuing operations was $.33 per share for the three months ended
June 30, 2007 compared to $.22 per share for the three months ended June 30,
2006. This increase of $.11 per share is primarily attributable to the $.07 per
share increase in the Company's share of the loss of joint ventures and the $.03
per share loss for the three months ended June 30, 2007 incurred by the Hato Rey
Partnership.
The Company invested in four joint ventures and as a result owns a 29% interest
in entities that own nine shopping mall properties. The Company accounts for
these investments under the equity method of accounting. The Company's share of
the loss of joint ventures was $.17 per share for the three months ended June
30, 2007 and included noncash charges for depreciation expense of $.17 per share
and amortization of deferred financing costs, in-place lease values and other
costs of $.05 per share for an aggregate total for noncash charges of $.22 per
share. The Company's share of the loss of joint ventures was $.10 per share for
the three months ended June 30, 2006 and included noncash charges for
depreciation expense of $.15 per share and amortization of deferred financing
costs, in-place lease values and other costs of $.18 per share for an aggregate
total for noncash charges of $.33 per share. For the three months ended June 30,
2007, the Company received distributions from the joint ventures in the amount
of $769,000, which included payments of interest in the amount of $729,000 and
return on investment in the amount of $40,000. For the three months ended June
30, 2006, the Company received distributions from joint ventures in the amount
of $1,171,000, which included payments of interest in the amount of $639,000 and
return of investment in the amount of $532,000.
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 14, 2007
The Hato Rey Partnership incurred a loss of $.03 per share for the three months
ended June 30, 2007. The partnership owns an office building in Puerto Rico
which has experienced high vacancy rates over the past two years as a result of
three major tenants moving into their own newly constructed office buildings
upon the expiration of their leases. The Company is actively working to lease
the vacant space and the occupancy rate has been increased from 51% to 65% over
the past twelve months.
Discontinued Operations:
The total income from discontinued operations was $.02 per share for the three
months ended June 30, 2007 compared to a loss of $.01 per share for the three
months ended June 30, 2006.
The three months ended June 30, 2007 includes a gain of $.02 per share from the
sale of a cooperative apartment unit in New Haven, Connecticut.
Results of operations for the six months ended June 30, 2007:
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The Company's net loss for the six months ended June 30, 2007 was $.44 per share
compared to $.56 per share for the six months ended June 30, 2006.
Continuing Operations:
Loss from continuing operations was $.60 per share for the six months ended June
30, 2007 compared to $.54 per share for the six months ended June 30, 2006. This
increase of $.06 per share is primarily attributable to the $.08 per share loss
incurred by the Hato Rey Partnership in the six months ended June 30, 2007.
The Company's share of the loss of joint ventures was $.26 per share for the six
months ended June 30, 2007 and included noncash charges for depreciation and
amortization expense of $.34 per share and amortization of deferred financing
costs, in-place lease values and other costs of $.11 per share for an aggregate
total for noncash charges of $.45 per share. The Company's share of the loss of
joint ventures was $.26 per share for the six months ended June 30, 2006 and
included noncash charges for depreciation and amortization expense of $.35 per
share and amortization of deferred financing costs, in-place lease values and
other costs of $.29 per share for an aggregate total for noncash charges of $.64
per share. For the six months ended June 30, 2007, the Company received
distributions from the joint ventures in the amount of $1,522,000, which
included payments of interest in
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 14, 2007
the amount of $1,442,000 and return on investment in the amount of $80,000. For
the six months ended June 30, 2006, the Company received distributions from
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.
Discontinued Operations:
The total income from discontinued operations was $.16 per share for the six
months ended June 30, 2007 compared to a loss of $.02 per share for the six
months ended June 30, 2006.
The six months ended June 30, 2007 includes a gain of $.16 per share from the
sale of the Cambridge Green property in Council Bluffs, Iowa and a gain of $.02
per share from the sale of a cooperative apartment unit in New Haven,
Connecticut.
Dividend Declared:
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The Company has announced that it has declared a regular quarterly cash
distribution of $.16 per share on its Class A and Class B shares payable on
September 28, 2007 to shareholders of record on September 7, 2007. The dividend
represents a yield of 9.28% on the Class A shares and 9.48% 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 14, 2007
RESULTS OF OPERATIONS
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2007 2006 2007 2006
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Gross revenues (excluding revenues from
discontinued operations) (1) $1,810,000 $948,000 $3,678,000 $1,880,000
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Loss from continuing operations ($1,301,000) ($849,000) ($2,376,000) ($2,095,000)
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Loss from discontinued operations (2,000) (67,000) (97,000) (99,000)
Net gain from sales of discontinued operations 89,000 - 736,000 -
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Total income (loss) from discontinued operations 87,000 (67,000) 639,000 (99,000)
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Net Loss ($1,214,000) ($916,000) ($1,737,000) ($2,194,000)
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Per share of common stock (basic and diluted):
Loss from continuing operations ($0.33) ($0.22) ($0.60) ($0.54)
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Loss from discontinued operations - (0.01) (0.02) (0.02)
Net gain from sales of discontinued operations 0.02 - 0.18 -
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Total income (loss) from discontinued operations 0.02 (0.01) 0.16 (0.02)
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Net Loss per Common Share - basic and diluted ($0.31) ($0.23) ($0.44) ($0.56)
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Average shares outstanding - basic and diluted 3,939,103 3,907,980 3,938,243 3,901,290
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Cash distributions per common share $0.16 $0.16 $0.32 $0.32
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(1) Revenues for the three months ended and six months ended June 30, 2007,
include revenues of $854,000 and $1,622,000, respectively, for the Hato Rey
Partnership as a result of the consolidation of that partnership.
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 14, 2007
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 2006 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