Exhibit 99.1
American Spectrum Realty Reports Year End Results
Seven Office Properties Acquired in 2006
Rental Revenue Increased 28% for Year
HOUSTON--(BUSINESS WIRE)--March 15, 2007--American Spectrum
Realty, Inc. (AMEX:AQQ) ("the Company"), a real estate investment and
management company headquartered in Houston, Texas, announced today
its results for the fourth quarter and year ended December 31, 2006.
Rental revenue for the year ended December 31, 2006 increased $5.6
million, or 28.2%, in comparison to the year ended December 31, 2005.
This increase was attributable to $5.2 million in revenue generated
from seven office properties acquired during 2006, in addition to $0.5
million in greater revenues from properties owned for the full years
ended December 31, 2006 and 2005 ("Same Properties"). This increase in
Same Properties revenue was primarily due to an increase in overall
occupancy. The weighted average occupancy of the Company's properties
held for investment increased to 90% at December 31, 2006 from 88% at
December 31, 2005. Rental revenue from the seven acquired properties
was included in the Company's results since their respective dates of
acquisition.
Loss from continuing operations was $4.4 million for the year
ended December 31, 2006 compared to $5.4 million for the year ended
December 31, 2005, representing a decrease of $1.1 million. The
decrease was in large part attributable to a $1.3 million net gain on
extinguishment of debt recognized in 2006.
The Company's net income for the year ended December 31, 2006 was
$6.5 million, or $4.71 per share, compared with a net loss of $2.3
million, or $1.56 per share, for the 2005 year. The net income
generated in 2006 was primarily attributable to a gain from
discontinued operations of $10.9 million. The Company's gain from
discontinued operations for the year ended December 31, 2005 was $3.1
million. Net income for the year ended December 31, 2006 also included
a $1.3 million net gain on extinguishment of debt as mentioned above.
William J. Carden, President of American Spectrum, commented,
"During 2006, we acquired seven office properties in Texas, one of our
core markets. These seven purchases increased American Spectrum's
total square footage in Texas to approximately 1.5 million square feet
and increased its real estate projects in Houston to seventeen. We
also completed our planned renovations on several properties."
He added, "American Spectrum will continue to seek to acquire
additional properties in our core markets of Texas, California and
Arizona during 2007 either directly or through joint ventures."
American Spectrum Realty, Inc. is a real estate investment and
management company that owns 26 office, industrial, apartment and
retail properties aggregating over 2.1 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 Year Ended
December 31, December 31,
--------------------- ---------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
REVENUES:
Rental revenue $6,997 $4,991 $25,546 $19,919
Interest and other income 327 13 501 350
---------- ---------- ---------- ----------
Total revenues 7,324 5,004 26,047 20,269
---------- ---------- ---------- ----------
EXPENSES:
Property operating
expense 3,291 2,273 11,935 8,716
Corporate general and
administrative 738 958 3,468 3,703
Depreciation and
amortization 2,922 2,222 11,020 8,464
Interest expense 2,639 2,184 9,850 8,824
---------- ---------- ---------- ----------
Total expenses 9,590 7,637 36,273 29,707
---------- ---------- ---------- ----------
OTHER INCOME (LOSS):
Net (loss) gain on
extinguishment of debt (567) (95) 1,282 (95)
---------- ---------- ---------- ----------
Total other income (loss) (567) (95) 1,282 (95)
---------- ---------- ---------- ----------
Loss from continuing
operations before
deferred income tax
benefit and minority
interest (2,833) (2,728) (8,944) (9,533)
Deferred income tax
benefit 1,656 3,360 3,893 3,360
---------- ---------- ---------- ----------
(Loss) income from
continuing operations
before minority interest (1,177) 632 (5,051) (6,173)
Minority interest (share
of continuing
operations) 157 (99) 674 764
---------- ---------- ---------- ----------
(Loss) income from
continuing operations (1,020) 533 (4,377) (5,409)
Discontinued operations:
Loss from operations - (560) (65) (2,110)
Gain on sale of
discontinued
operations - 3,900 22,349 7,895
Income tax expense (1,502) (2,198) (9,698) (2,198)
Minority interest 200 (136) (1,675) (444)
---------- ---------- ---------- ----------
(Loss) income from
discontinued
operations: (1,302) 1,006 10,911 3,143
---------- ---------- ---------- ----------
Net (loss) income $(2,322) $1,539 $6,534 $(2,266)
========== ========== ========== ==========
Basic and diluted per
share data:
(Loss) income from
continuing
operations $(0.74) $0.38 $(3.16) $(3.71)
(Loss) income from
discontinued
operations (0.94) 0.71 7.87 2.15
---------- ---------- ---------- ----------
Net (loss) income $(1.68) $1.09 $4.71 $(1.56)
========== ========== ========== ==========
Basic weighted average
shares used 1,379,332 1,410,670 1,386,328 1,457,079
December 31, December 31,
2006 2005
------------- -------------
Real estate held for investment, net $172,813 $126,711
Cash 1,166 300
Total assets 190,182 169,185
Notes payable, net of premiums 155,036 114,543
Total liabilities 168,798 155,035
Total stockholders' equity 15,339 9,014
CONTACT: American Spectrum Realty, Inc., Houston
Chairman, President and CEO
William J. Carden, 713-706-6200