EXHIBIT 99.1
American Spectrum Realty Reports Second Quarter Results
Three Properties Acquired During the Quarter
Rental Revenue Increased 29%
HOUSTON--(BUSINESS WIRE)--Aug. 9, 2007--American Spectrum Realty,
Inc. ("the Company") (AMEX:AQQ), a real estate investment and
management company whose headquarters are located in Houston, Texas,
announced today its results for the second quarter of 2007.
Rental revenue increased 28.7%, for the second quarter of 2007 in
comparison to the second quarter of 2006. This increase was primarily
attributable to $1,162,000 in revenue generated from two retail
properties and one multi-tenant industrial property acquired during
the second quarter of 2007 and three office properties acquired during
the second quarter of 2006. Greater revenues from properties owned for
the full quarters ended June 30, 2007 and June 30, 2006 accounted for
the remaining increase of $602,000. The increase in revenues from the
properties owned for the full quarters ended June 30, 2007 and June
30, 2006 was primarily due to an increase in overall occupancy and
rental rates. The weighted average occupancy of the Company's
properties increased from 88% at June 30, 2006 to 91% at March 31,
2007. The weighed average occupancy of the Company's properties
decreased to 88% at June 30, 2007, principally due to the second
quarter 2007 acquisition of the industrial property. The industrial
property, which consists of approximately 400,000 square feet of
leasable area, was 73% leased when acquired. Rental revenue from the
acquired properties has been included in the Company's results since
their respective dates of acquisition. All of the acquired properties
are located in Texas, one of the Company's core-markets.
The loss from continuing operations for the three months ended
June 30, 2007 was $1.3 million compared to income from continuing
operations of $250,000 for the three months ended June 30, 2006. The
income from continuing operations recorded during the second quarter
of 2006 included a gain on extinguishment of debt of $1.8 million.
Net loss for the quarter ended June 30, 2007 was $1.3 million, or
$0.94 per share, compared to net loss of $6.9 million, or $4.93 per
share, for the second quarter of 2006. The net loss recorded during
the second quarter of 2006 included a $7.1 million loss from
discontinued operations related to deferred income tax expense. The
Company had no income or losses from discontinued operations for the
quarter ended June 30, 2007.
Net loss for the six months ended June 30, 2007 was $2.4 million,
or $1.77 per share, compared to net income of $10.4 million, or $7.46
per share, for the six months ended 2006. The net income recorded
during the six months ended June 30, 2006 included income from
discontinued operations of $12.2 million and a gain on extinguishment
of debt of $1.8 million. The Company had no income or losses from
discontinued operations for the six months ended June 30, 2007.
American Spectrum Realty, Inc. is a real estate investment and
management company that owns 29 office, industrial and retail
properties aggregating over 2.5 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)
(Unaudited)
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Three Months Ended Six Months Ended
June 30, June 30,
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2007 2006 2007 2006
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REVENUES:
Rental revenue $ 7,904 $ 6,140 $ 15,168 $ 11,717
Interest and other
income 21 74 58 148
---------- ---------- ---------- ----------
Total revenues 7,925 6,214 15,226 11,865
---------- ---------- ---------- ----------
EXPENSES:
Property operating
expense 3,324 2,854 6,327 5,350
General and
administrative 1,023 1,004 1,750 1,924
Depreciation and
amortization 3,126 2,766 6,102 5,227
Interest expense 3,118 2,369 5,716 4,554
---------- ---------- ---------- ----------
Total expenses 10,591 8,993 19,895 17,055
---------- ---------- ---------- ----------
OTHER INCOME:
Gain on extinguishment
of debt - 1,849 - 1,849
---------- ---------- ---------- ----------
Total other income - 1,849 - 1,849
---------- ---------- ---------- ----------
Net loss from
continuing operations
before deferred income
tax and minority
interest (2,666) (930) (4,669) (3,341)
Deferred income tax
benefit 1,168 1,218 1,860 1,218
---------- ---------- ---------- ----------
Net (loss) income from
continuing operations
before minority
interest (1,498) 288 (2,809) (2,123)
Minority interest
(share from continuing
operations) 195 (38) 369 283
---------- ---------- ---------- ----------
Net (loss) income from
continuing operations (1,303) 250 (2,440) (1,840)
Discontinued
operations:
Loss from
discontinued
operations - - - (65)
Gain on sale of
discontinued
operations - - - 22,349
Deferred income tax
expense - (8,196) - (8,196)
Minority interest - 1,093 - (1,875)
---------- ---------- ---------- ----------
(Loss) income from
discontinued
operations - (7,103) - 12,213
---------- ---------- ---------- ----------
Net (loss) income $ (1,303) $ (6,853) $ (2,440) $ 10,373
========== ========== ========== ==========
Basic and diluted per
share data:
Net (loss) income
from continuing
operations $ (0.94) $ 0.18 $ (1.77) $ (1.32)
(Loss) income from
discontinued
operations - (5.11) - 8.78
---------- ---------- ---------- ----------
Net (loss) income $ (0.94) $ (4.93) $ (1.77) $ 7.46
========== ========== ========== ==========
Basic weighted average
shares used 1,380,221 1,390,488 1,378,512 1,391,289
June 30, December 31,
2007 2006
------------ ------------
Real estate held for investment, net $ 195,448 $ 172,813
Cash 777 1,166
Total assets 212,445 190,182
Notes payable, including premiums 181,429 155,036
Total liabilities 194,047 168,798
Total stockholders' equity 12,857 15,339
CONTACT: American Spectrum Realty, Inc., Houston
Chairman, President and CEO
William J. Carden, 713-706-6200