Exhibit 99.1
American Spectrum Realty Reports First Quarter Results;
Rental Revenues Increased 10.6%
HOUSTON--(BUSINESS WIRE)--April 29, 2004--American Spectrum
Realty, Inc. (AMEX:AQQ), a real estate investment and management
company, announced today its results for the first quarter of 2004.
For the quarter ended March 31, 2004, the Company recorded rental
revenue of $7.4 million compared with $6.7 million for the 2003 first
quarter. This increase of $707,000 was primarily the result of revenue
being generated from four Houston office properties acquired between
May 7, 2003 and November 13, 2003. Rental revenue from the acquired
properties was included in the Company's results since the date of
acquisition of each property. The weighted average occupancy of the
Company's properties at March 31, 2004 and 2003 was 81% and 79%,
respectively.
The Company will continue its strategy to sell its non-core
property types -- apartment and shopping center properties -- and to
sell its properties located in the Midwest and Carolina's -- its
non-core markets. The Company will focus primarily on office and
industrial properties located in Texas, California and Arizona.
Net loss for the year ended March 31, 2004 was $1.8 million, or
$1.17 per share, compared with a net loss of $2.3 million, or $1.64
per share, for the first quarter 2003. Results for the first quarter
2004 and 2003 reflect the following non-cash items (in thousands):
Three Months Ended
March 31,
2004 2003
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Non-Cash Charges:
Depreciation and amortization from real estate
held for investment $ 2,685 $ 2,262
Mark-to-market adjustments on interest rate
protection agreements - 222
Deferred compensation expense 28 79
Non-Cash Items:
Deferred rental income 245 120
Minority interest 263 294
Interest on receivable from principal
stockholders 18 -
Amortization of loan premiums 149 140
Amortization of note receivable discount 25 -
Mark-to-market adjustments on interest rate
protection agreements 10 -
William J. Carden, President of American Spectrum, said, "During
the last two years, in line with our strategy, we have increased our
portfolio in Texas by acquiring seven office buildings. These
properties contributed to our improved revenues over 2003. The
weighted average occupancy of our Texas office properties at March 31,
2004 was 87%. We continue to take steps to aggressively market all of
our properties thereby increasing occupancy and improving our
financial results."
American Spectrum Realty, Inc. is a real estate investment and
management company that owns 25 office, industrial, apartment and
retail properties aggregating over 2.4 million square feet in
California, Texas, Arizona, South Carolina and the Midwest. Publicly
traded on the American Stock Exchange since November 2001, American
Spectrum Realty's business plan focuses on expansion of office and
industrial property investments in California, Texas and Arizona.
Certain matters discussed in this release are forward-looking
statements that are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
including the risks and uncertainties of acquiring, owning, operating
and disposing of real estate. Such risks and uncertainties are
disclosed in the Company's past and current filings with the U.S.
Securities and Exchange Commission.
- Financial Tables Follow -
AMERICAN SPECTRUM REALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
----------------------
2004 2003
---------- ----------
REVENUES:
Rental revenue $ 7,373 $ 6,666
Interest and other income 80 10
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Total revenues 7,453 6,676
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EXPENSES:
Property operating expense 2,766 2,511
General and administrative 1,127 1,593
Depreciation and amortization 2,685 2,262
Interest expense 2,963 2,598
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Total expenses 9,541 8,964
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Net loss before minority interest and
discontinued operations (2,088) (2,288)
Minority interest 263 294
---------- ----------
Net loss before discontinued operations (1,825) (1,994)
Discontinued operations:
Loss from discontinued operations - (282)
---------- ----------
Net loss $ (1,825) $ (2,276)
========== ==========
Basic and diluted per share data:
Net loss before discontinued operations $ (1.17) $ (1.44)
Loss from discontinued operations - (0.20)
---------- ----------
Net loss $ (1.17) $ (1.64)
========== ==========
Basic weighted average shares used 1,555,442 1,384,542
March 31, March 31,
2004 2003
---------- ----------
Real estate held for investment, net $182,598 $182,790
Cash 566 2,937
Total assets 205,529 208,003
Notes payable, net of premiums 150,145 151,051
Total liabilities 179,725 180,259
Total stockholders' equity 18,758 20,435
CONTACT: American Spectrum Realty, Inc., Houston
William J. Carden, 949-753-7111