EXHIBIT 99.1
HALLWOOD REALTY PARTNERS, L.P.
3710 RAWLINS, SUITE 1500, DALLAS, TEXAS 75219-4236
Phone: 214 / 528-5588
Fax: 214 / 528-8855
Website: www.hallwood.com/hrp
CONTACT: INVESTOR RELATIONS
(214) 528-5588
NEWS RELEASE
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HALLWOOD REALTY PARTNERS, L.P.
ANNOUNCES SECOND QUARTER 2003 FINANCIAL RESULTS
Dallas, Texas, August 4, 2003 - Hallwood Realty Partners, L.P. ("HRP")
(HRY-AMEX) announced today its financial results for the quarter ended
June 30, 2003. HRP had a net loss of $3,238,000 ($2.01 per unit) for the
second quarter of 2003, as compared to net income of $1,942,000 ($1.17 per
unit) for the second quarter of 2002. The net results included $3,791,000
and $3,802,000 of non-cash depreciation and amortization expense in the
2003 and 2002 second quarters, respectively.
Total revenues decreased $1,417,000, or 7.4%, in the second quarter of
2003 primarily as a result of a decrease in revenue from construction
services, which were lower in the 2003 period due to fewer construction
projects completed in the 2003 period compared to the 2002 period. By
their nature, the demand for and size of construction service projects can
vary significantly from time to time.
Total expenses were $3,705,000, or 21.3%, more in 2003's second quarter
than in 2002 due to increases in litigation costs of $4,971,000, property
operating expenses of $159,000, and general and administrative expenses of
$103,000, partially offset by decreases in construction tenant service
expense of $1,337,000, interest expense of $180,000, and depreciation and
amortization expense of $11,000.
HRP had a net loss of $1,838,000 ($1.14 per unit) for the first six months
of 2003, as compared to net income of $4,416,000 ($2.65 per unit) for the
comparable period in 2002. The net results included $7,524,000 and
$7,529,000 of non-cash depreciation and amortization expense in the 2003
and 2002 periods, respectively.
Total revenues decreased $1,678,000, or 4.5%, in the first six months of
2003 primarily as a result of a decrease in revenue from construction
services, which were lower in the 2003 period due to fewer construction
projects completed in the 2003 period compared to the 2002 period. By
their nature, the demand for and size of construction service projects can
vary significantly from time to time.
Total expenses were $4,495,000, or 13.6%, more in 2003's first six months
than in 2002 due to increases in litigation costs of $5,131,000, property
operating expenses of $544,000, general and administrative expenses of
$279,000, and interest expense of $114,000, partially offset by decreases
in construction service expense of $1,568,000, and depreciation and
amortization expense of $5,000.
In both the second quarter and six month periods, litigation costs,
including a $3,000,000 financial advisory fee, were expenses incurred to
defend High River and Gotham actions. Construction service expenses
declined in the second quarter and six month periods due to fewer
construction projects completed in the 2003 periods compared to the 2002
periods.
Continued on Page 2
HALLWOOD REALTY PARTNERS, L.P.
SECOND QUARTER 2003 FINANCIAL RESULTS
PAGE 2 OF 2
The following table sets forth selected unaudited financial information (in
thousands, except per unit amounts):
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2003 2002 2003 2002
-------- ------- -------- -------
Total revenues (a) $ 17,736 $19,153 $ 35,542 $37,220
Total expenses (a) 21,065 17,360 37,581 33,086
-------- ------- -------- -------
Income (loss) before interest income (3,329) 1,793 (2,039) 4,134
Interest income 91 149 201 282
-------- ------- -------- -------
Net income (loss) $ (3,238) $ 1,942 $ (1,838) $ 4,416
======== ======= ======== =======
Net income (loss) per unit:
Basic $ (2.01) $ 1.21 $ (1.14) $ 2.75
======== ======= ======== =======
Assuming dilution $ (2.01) $ 1.17 $ (1.14) $ 2.65
======== ======= ======== =======
Weighted average units outstanding:
Basic 1,594 1,590 1,596 1,590
======== ======= ======== =======
Assuming dilution 1,594 1,647 1,596 1,647
======== ======= ======== =======
</Table>
(a) Reclassifications, including a gross-up for parking, construction
and tenant service expenses that were previously netted against
revenues, have been made in the prior period to conform to the
classifications used in the current period. The reclassifications
had no effect on previously reported net income.
HRP, a publicly traded Delaware limited partnership, is engaged in the
acquisition, ownership and operation of commercial real estate assets.
Certain statements in this news release may constitute "forward-looking
statements" which are subject to known and unknown risks and uncertainties
including, among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual results to
differ materially from results implied by such forward-looking statements. These
risks and uncertainties are described in greater detail in HRP's periodic
filings with the SEC.
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