Exhibit 99.1
American Spectrum Realty Reports Second Quarter and First Six Months
Results; Rental Revenues Increased 17.1% for Quarter; Occupancy
Increased to 83% from 75% Last Year
HOUSTON--(BUSINESS WIRE)--Aug. 4, 2004--American Spectrum Realty
Inc. (AMEX:AQQ), a real estate investment and management company,
announced today its results for the second quarter and six months of
2004.
For the quarter ended June 30, 2004, the Company recorded rental
revenue of $7.1 million compared with $6.1 million for the 2003 second
quarter. This increase of $1.0 million was the result of $532,000 in
revenue being generated from three Houston office properties acquired
between July 30, 2003 and Nov. 13, 2003 and $507,000 in higher
revenues from properties owned on June 30, 2004 and June 30, 2003
(Same Properties). 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 increased to 83% at June 30, 2004 from 75% at June 30, 2003
and 79% at March 31, 2004.
Second quarter 2004 net loss was $2.9 million, or $1.88 per common
share, versus a net loss of $4.4 million, or $2.96 per share, for
second quarter 2003.
For the six months ended June 30, 2004, the Company recorded
rental revenue of $14.5 million compared with $12.7 million for the
six months ended June 30, 2003.
Net loss for the six months ended June 30, 2004 was $4.8 million,
or $3.06 per share, compared with a net loss of $6.7 million, or $4.65
per share, for the same period prior six months. Results for the six
months ended 2004 and 2003 reflect the following non-cash items (in
thousands):
Six Months Ended
June 30,
2004 2003
--------- ---------
Non-Cash Charges:
Depreciation and amortization from real estate
held for investment $5,461 $4,528
Mark-to-market adjustments on interest rate
protection agreements - 244
Deferred compensation expense 56 157
Non-Cash Items:
Deferred rental income (395) (225)
Minority interest (686) (915)
Interest on receivable from principal stockholders (34) (21)
Amortization of loan premiums (296) (276)
Amortization of note receivable discount (50) -
Mark-to-market adjustments on interest rate
protection agreements (67) -
William J. Carden, president of American Spectrum, said, "Our
efforts to aggressively market all of our properties has increased
occupancy to 83% from 75% a year ago and improved our operating
results in the first six months. The Company is also benefiting from
the decreased expenses related to the closure of our New York office
and the downsizing of the St. Louis and San Diego offices."
Carden added, "During the second half of 2004, we will continue to
aggressively market our properties, thereby, further increasing
occupancy, and continue implementing our strategy to sell non-core
property types -- apartment and shopping center properties -- and to
sell properties located in the Midwest and Carolina's -- our non-core
markets." The Company's long-term focus is primarily on office and
industrial properties located in Texas, California and Arizona.
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 Six Months Ended
June 30, June 30,
--------------------- ---------------------
2004 2003 2004 2003
--------------------- ---------------------
REVENUES:
Rental revenue $7,119 $6,080 $14,492 $12,746
Interest and other income 82 33 162 43
---------- ---------- ---------- ----------
Total revenues 7,201 6,113 14,654 12,789
---------- ---------- ---------- ----------
EXPENSES:
Property operating expense 2,841 2,496 5,607 5,007
General and administrative 1,181 1,709 2,308 3,302
Depreciation and
amortization 2,776 2,266 5,461 4,528
Interest expense 3,144 2,652 6,107 5,250
---------- ---------- ---------- ----------
Total expenses 9,942 9,123 19,483 18,087
---------- ---------- ---------- ----------
OTHER LOSS:
Loss on extinguishment of
debt (613) - (613) -
---------- ---------- ---------- ----------
Total other loss (613) - (613) -
---------- ---------- ---------- ----------
Net loss before minority
interest and discontinued
operations (3,354) (3,010) (5,442) (5,298)
Minority interest 423 621 686 915
---------- ---------- ---------- ----------
Net loss before
discontinued operations (2,931) (2,389) (4,756) (4,383)
Discontinued operations:
Loss from discontinued
operations - (234) - (516)
Gain on sale of
discontinued operations - 2,228 - 2,228
Impairment of real estate
assets - (4,000) - (4,000)
---------- ---------- ---------- ----------
Loss from discontinued
operations: - (2,006) - (2,288)
---------- ---------- ---------- ----------
Net loss $(2,931) $(4,395) $(4,756) $(6,671)
========== ========== ========== ==========
Basic and diluted per
share data:
Net loss before
discontinued
operations $(1.88) $(1.61) $(3.06) $(3.05)
(Loss) income
from discontinued
operations - (1.35) - (1.60)
---------- ---------- ---------- ----------
Net loss $(1.88) $(2.96) $(3.06) $(4.65)
========== ========== ========== ==========
Basic weighted average
shares used 1,556,250 1,483,303 1,555,846 1,433,922
June 30, December
2004 31, 2003
----------- ----------
Real estate held for
investment, net $180,853 $182,790
Cash 1,106 2,937
Total assets 203,810 208,003
Notes payable, net of
premiums 154,032 151,051
Total liabilities 181,332 180,259
Total stockholders'
equity 15,898 20,435
CONTACT: American Spectrum Realty Inc.
William J. Carden, 949-753-7111