Exhibit 99.1
American Spectrum Realty Reports Second Quarter Results
HOUSTON--(BUSINESS WIRE)--Aug. 8, 2005--
Total Revenues Increased 3% from Last Year
General and Administrative Expenses Decreased 22% from Last Year
American Spectrum Realty, Inc. (AMEX:AQQ), a real estate investment and
management company located in Houston, Texas, announced today its results for
the second quarter of 2005.
The Company reduced its net loss $658,000 for the quarter ended June 30,
2005, compared to the quarter ended June 30, 2004. Net loss was $2.3 million, or
$1.54 per share, for the second quarter of 2005 compared to a net loss of $2.9
million, or $1.88 per share, for the second quarter of 2004. The net loss for
the second quarter of 2004 included a $613,000 loss on extinguishment of debt.
For the quarter ended June 30, 2005, the Company's rental revenue increased
$77,000, or 1.2%, from $6.6 million to $6.7 million compared with the quarter
ended June 30, 2004. An increase of $311,000 in revenue generated from two
Houston office properties acquired subsequent to the second quarter of 2004 was
offset by $234,000 fewer revenues from properties owned on June 30, 2005 and
2004. This decrease was primarily due a $139,000 lease buy-out during the second
quarter 2004 and a decrease in occupancy. Rental revenue from the acquired
properties was included in the Company's results since the date of acquisition
of each property. The overall weighted average occupancy of the Company's
properties held for investment at June 30, 2005 and 2004 was 85% and 88%,
respectively. The decrease in overall occupancy was in large part attributable
to the lease renewal and relocation of Daimler Chrysler at 7700 Irvine Center.
Commencement of this lease and four other signed leases, all of which are set to
commence by September 30, 2005, is anticipated to raise occupancy at the
property by 21,000 square feet.
For the quarter ended June 30, 2005, the Company reduced its general and
administrative expenses $257,000 or 21.8%. This decrease was in large part due
to a decrease in compensation expense of $135,000 as a result of an overall
downsizing of corporate management. Also attributing to this decrease was a cost
reduction associated with the printing of the Company's Annual Report, as well
as other cutting measures implemented by management.
Net loss for the six months ended June 30, 2005, was $2.5 million, or $1.66
per share, compared with a net loss of $4.8 million, or $3.06 per share, for the
six months ended June 30, 2004.
For the six months ended June 30, 2005, the Company's rental revenue
increased $79,000, or 0.6%, from $13.5 million to $13.6 million compared with
the six months ended June 30, 2004. An increase of $640,000 in revenue generated
from two Houston office properties acquired subsequent to the second quarter of
2004 was offset by $561,000 fewer revenues from properties owned on June 30,
2005 and 2004. This decrease was primarily due to a $196,000 payment received
from the owner of a neighboring property for past use of common parking areas
and $293,000 in lease buy-outs incurred at an office property in California
during the first six months of 2004 and a decrease in overall weighted average
occupancy.
Results for the six months ended June 30, 2005 and 2004 reflect the
following non-cash items (in thousands):
Six Months Ended
June 30,
2005 2004
---------- ---------
Non-Cash Charges:
Depreciation and amortization from real estate
held for investment $5,604 $5,064
Deferred compensation expense 37 56
---------- ---------
Total-Cash Charges 5,641 5,120
Non-Cash Items:
Deferred rental income (111) (396)
Minority interest (358) (686)
Interest on receivable from principal
stockholders (26) (34)
Amortization of loan premiums (233) (263)
Amortization of note receivable discount - (50)
Mark-to-market adjustments on interest rate
protection agreements - (67)
---------- ---------
Total Non-Cash Items (728) (1,496)
William J. Carden, President of American Spectrum, said, "The reduction in
general and administrative expenses over the past year has improved our
financial results. During the second half of 2005, we will continue to
aggressively market our properties to increase occupancy. We will also 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."
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.
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,
---------------------------------------------
2005 2004 2005 2004
----------- ---------- ----------- ----------
REVENUES:
Rental revenue $6,708 $6,631 $13,566 $13,487
Interest and other
income 208 82 257 162
----------- ---------- ----------- ----------
Total revenues 6,916 6,713 13,823 13,649
----------- ---------- ----------- ----------
EXPENSES:
Property operating
expense 2,894 2,561 5,767 5,055
General and
administrative 924 1,181 1,844 2,308
Depreciation and
amortization 2,812 2,577 5,604 5,064
Interest expense 2,888 2,994 5,869 5,803
----------- ---------- ----------- ----------
Total expenses 9,518 9,313 19,084 18,230
----------- ---------- ----------- ----------
OTHER LOSS:
Loss on extinguishment
of debt - (613) - (613)
----------- ---------- ----------- ----------
Total other loss - (613) - (613)
----------- ---------- ----------- ----------
Net loss before minority
interest and
discontinued operations (2,602) (3,213) (5,261) (5,194)
Minority interest 329 423 358 686
----------- ---------- ----------- ----------
Net loss before
discontinued operations (2,273) (2,790) (4,903) (4,508)
Discontinued operations:
Loss from discontinued
operations - (141) (29) (248)
Gain on sale of
discontinued
operations - - 2,460 -
----------- ---------- ----------- ----------
(Loss) income from
discontinued
operations - (141) 2,431 (248)
----------- ---------- ----------- ----------
Net loss $(2,273) $(2,931) $(2,472) $(4,756)
=========== ========== =========== ==========
Basic and diluted per
share data:
Net loss before
discontinued
operations $(1.54) $(1.79) $(3.29) $(2.90)
(Loss) income from
discontinued
operations - (0.09) 1.63 (0.16)
----------- ---------- ----------- ----------
Net loss $(1.54) $(1.88) $(1.66) $(3.06)
=========== ========== =========== ==========
Basic weighted average
shares used 1,476,363 1,556,250 1,487,891 1,555,846
June 30, December 31,
2005 2004
---------------- ----------------
Real estate held for investment, net $165,048 $168,531
Cash 855 589
Total assets 182,104 187,545
Notes payable, net of premiums 149,299 149,589
Total liabilities 168,378 170,626
Total stockholders' equity 8,604 11,427
CONTACT: American Spectrum Realty, Inc., Houston
William J. Carden, 713-706-6200