Exhibit 99.1
American Spectrum Realty Reports First Quarter Results
HOUSTON--(BUSINESS WIRE)--May 9, 2005--
Occupancy Increased to 87% from 85% Last Year
Gain of $2.5 Million Recognized on Sale of Industrial Property
in San Diego, California
American Spectrum Realty, Inc. (AMEX:AQQ), a real estate investment and
management company located in Houston, Texas, announced today its results for
the first quarter of 2005.
Net loss for the quarter ended March 31, 2005 was $199,000, or $0.13 per
share, compared with a net loss of $1.8 million, or $1.17 per share, for the
first quarter 2004.
For the quarter ended March 31, 2005, the Company's rental revenue remained
relatively unchanged compared with the quarter ended March 31, 2004, increasing
$2,000. An increase of $329,000 in revenue generated from two Houston office
properties acquired subsequent to the first quarter of 2004 was offset by fewer
revenues from properties owned on March 31, 2005 and 2004. This decrease was
primarily due to lease buy-outs and other non-recurring payments received in the
first quarter 2004. 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 held for investment at
March 31, 2005 and 2004 was 87% and 85%, respectively.
For the quarter ended March 31, 2005, the Company reduced its general and
administrative expenses $207,000 or 18.4%. This decrease was in large part due
to a decrease in compensation expense as a result of an overall downsizing of
corporate management.
During the first quarter of 2005, the Company sold an industrial property
in San Diego, California. The property, which was unoccupied, generated a gain
on sale of $2.5 million. Proceeds of $3.2 million (net of debt repayments and
sales costs) were received as a result of the transaction.
Results for the first quarter 2005 and 2004 reflect the following
non-cash items (in thousands):
Three Months Ended
March 31,
2005 2004
--------- ---------
Non-Cash Charges:
Depreciation and amortization from real estate held
for investment $2,792 $2,487
Deferred compensation expense 19 28
--------- ---------
Total-Cash Charges 2,811 2,515
Non-Cash Items:
Deferred rental income (50) (250)
Minority interest (29) (263)
Interest on receivable from principal stockholders (13) (18)
Amortization of loan premiums (114) (133)
Amortization of note receivable discount - (25)
Mark-to-market adjustments on interest rate
protection agreements - (10)
--------- ---------
Total Non-Cash Items (206) (699)
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 acquiring and repositioning office and industrial properties
located in Texas, California and Arizona.
William J. Carden, President of American Spectrum, said, "We have continued
to increase the overall occupancy of our portfolio. The weighted average
occupancy of our Texas office properties at March 31, 2005 increased to 90% from
88% at March 31, 2004. 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 24 office, industrial, apartment and retail properties
aggregating over 2.2 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.
AMERICAN SPECTRUM REALTY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended
March 31,
---------------------------
2005 2004
------------- -------------
REVENUES:
Rental revenue $6,858 $6,856
Interest and other income 49 80
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Total revenues 6,907 6,936
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EXPENSES:
Property operating expense 2,873 2,494
General and administrative 920 1,127
Depreciation and amortization 2,792 2,487
Interest expense 2,981 2,809
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Total expenses 9,566 8,917
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Net loss before minority interest and
discontinued operations (2,659) (1,981)
Minority interest 29 263
------------- -------------
Net loss before discontinued operations (2,630) (1,718)
Discontinued operations:
Loss from discontinued operations (29) (107)
Gain on sale of discontinued operations 2,460 -
------------- -------------
Income (loss) from discontinued
operations 2,431 (107)
------------- -------------
Net loss $(199) $(1,825)
============= =============
Basic and diluted per share data:
Net loss before discontinued
operations $(1.75) $(1.10)
Gain (loss) from discontinued
operations 1.62 (0.07)
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Net loss $(0.13) $(1.17)
============= =============
Basic weighted average shares used 1,499,419 1,555,442
March 31, December 31,
2005 2004
-------------- -------------
Real estate held for investment, net
of accumulated depreciation $167,056 $168,531
Cash 1,727 589
Total assets 184,294 187,545
Notes payable, net of premiums 148,747 149,589
Total liabilities 167,606 170,626
Total stockholders' equity 11,237 11,427
CONTACT: American Spectrum Realty, Inc., Houston
William J. Carden, 713-706-6200