EXHIBIT 99.1
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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
March 31, 2008
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 interests in real estate.
The Company purchased an additional 25% and 1% limited partnership interest in
the Hato Rey Partnership, which increased its ownership percentage in the Hato
Rey Partnership to 60% 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 December 31, 2007:
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The Company's net loss for the three months ended December 31, 2007 was $2.47
per share compared to $.56 per share for the three months ended December 31,
2006.
Continuing Operations:
Loss from continuing operations was $2.47 per share for the three months ended
December 31, 2007 compared to $.53 per share for the three months ended December
31, 2006. This increased loss of $1.94 per share is attributable to the $2.07
per share increase in the Company's share of the loss from joint ventures. The
loss from the joint ventures was $2.33 per share in the 2007 period compared to
a $.26 per share loss in the 2006 period.
The Company has a 29% ownership interest in four joint ventures 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 from joint ventures
was $2.33 per share for the three months ended December 31, 2007 and was after
(i) deductions in the aggregate amount of $.26 per share for noncash charges
(depreciation expense of $.20 per share and amortization of deferred financing
costs, in-place lease values and other costs of $.06 per share) and (ii) an
impairment loss of $2.14 per share. Due to the current downturn in the
commercial real estate market and the lack of demand for retail space in regions
where some of the joint venture properties are located, at December 31, 2007,
the recoverability of the carrying value of certain of the shopping mall
properties owned by the joint ventures was deemed to be impaired. As a result,
at December 31, 2007, the joint venture entities recorded an impairment
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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
March 31, 2008
loss of approximately $75,994,000 for four of the nine mall properties owned by
the entities. The Company's 29% share of the impairment loss recorded by the
joint ventures was approximately $22,038,000. However, under the equity method
of accounting the recording of losses is limited to the balance of the Company's
investment in and advances to joint ventures and, as a result, the Company
recognized an impairment loss of $8,371,000 ($2.14 per share).
For the three months ended December 31, 2006, the Company's share of the loss
from joint ventures was $.26 per share and was after deductions in the aggregate
amount of $.30 per share for noncash charges (depreciation expense of $.21 per
share and amortization of deferred financing costs, in-place lease values and
other costs of $.09 per share).
For the three months ended December 31, 2007, the Company received distributions
from the joint ventures in the amount of $570,000, all of which were payments of
interest. For the three months ended December 31, 2006, the Company received
distributions from joint ventures in the amount of $761,000 which included
payments of interest in the amount of $721,000 and return on investment in the
amount of $40,000.
Discontinued Operations:
The total loss from discontinued operations was $.00 per share for the three
months ended December 31, 2007 compared to $.03 per share for the three months
ended December 31, 2006.
Results of operations for the year ended December 31, 2007:
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The Company's net loss for the year ended December 31, 2007 was $2.95 per share
compared to $1.25 per share for the year ended December 31, 2006.
Continuing Operations:
Loss from continuing operations was $3.11 per share for the year ended December
31, 2007 compared to $1.17 per share for the year ended December 31, 2006. This
increased loss of $1.94 per share is attributable to the $2.05 per share
increase in the Company's share of the loss from joint ventures.
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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
March 31, 2008
The Company's share of the loss from joint ventures was $2.58 per share for the
year ended December 31, 2007 and was after (i) deductions in the aggregate
amount of $.98 per share for noncash charges (depreciation expense of $.74 per
share and amortization of deferred financing costs, in-place lease values and
other costs of $.24 per share) and (ii) an impairment loss of $2.14 per share.
The Company's share of the loss from joint ventures was $.53 per share for the
year ended December 31, 2006 and was after deductions in the aggregate amount of
$1.19 per share for noncash charges (depreciation expense of $.73 per share and
amortization of deferred financing costs, in-place lease values and other costs
of $.46 per share). For the year ended December 31, 2007, the Company received
distributions from the joint ventures in the amount of $3,052,000, which
included payments of interest in the amount of $2,892,000 and return on
investment in the amount of $160,000. For the year ended December 31, 2006, the
Company received distributions from joint ventures in the amount of $3,483,000,
which included payments of interest in the amount of $2,871,000 and return on
investment in the amount of $612,000.
Discontinued Operations:
The total income from discontinued operations was $.16 per share for the year
ended December 31, 2007 compared to a loss of $.08 per share for the year ended
December 31, 2006.
The year ended December 31, 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:
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In February, 2008, the Company declared a regular quarterly cash distribution of
$.16 per share on its Class A and Class B shares payable on March 31, 2008 to
shareholders of record on March 10, 2008. The dividend represents a yield of
11.96% on the Class A shares and 12.80% on the Class B shares based on the last
sales price of such shares on the American Stock Exchange.
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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
March 31, 2008
RESULTS OF OPERATIONS
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2007 2006 2007 2006
Gross revenues (excluding revenues from
discontinued operations) (1) $1,807,000 $1,010,000 $7,334,000 $3,903,000
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Loss from continuing operations ($9,647,000) ($2,103,000) ($12,152,000) ($4,559,000)
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Income (loss) from discontinued operations 3,000 (100,000) (94,000) (318,000)
Net gain from sales of discontinued operations - - 736,000 -
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Total income (loss) from discontinued operations 3,000 (100,000) 642,000 (318,000)
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Net Loss ($9,644,000) ($2,203,000) ($11,510,000) ($4,877,000)
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Per share of common stock (basic and diluted):
Loss from continuing operations ($2.47) ($0.53) ($3.11) ($1.17)
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Income (loss) from discontinued operations - (0.03) (0.02) (0.08)
Net gain from sales of discontinued operations - - 0.18 -
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Total income (loss) from discontinued operations - (0.03) 0.16 (0.08)
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Net Loss per Common Share - basic and diluted ($2.47) ($0.56) ($2.95) ($1.25)
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Average shares outstanding - basic and diluted 3,908,918 3,927,607 3,903,895 3,911,405
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Cash distributions paid per common share $0.16 $0.16 $0.64 $0.64
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(1) Revenues for the three months ended and year ended December 31, 2007,
include revenues of $884,000 and $3,428,000, respectively, for the Hato Rey
Partnership as a result of the consolidation of that partnership.
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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
March 31, 2008
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 2007 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