Exhibit 99.1
American Spectrum Realty Reports Third Quarter Results
HOUSTON--(BUSINESS WIRE)--Nov. 7, 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 third quarter of 2007.
Rental revenue increased 14.5%, for the third quarter of 2007 in
comparison to the third quarter of 2006. This increase was primarily
attributable to $576,000 in revenue generated from two retail
properties and one multi-tenant industrial property acquired during
the second quarter of 2007. Greater revenues from properties owned for
the full quarters ended September 30, 2007 and September 30, 2006
accounted for the remaining increase of $376,000. The increase in
revenues from the properties owned for the full quarters ended
September 30, 2007 and September 30, 2006 was primarily due to an
increase in rental rates. The increase was partially offset by a
decrease in weighted average occupancy of properties held for
investment, which decreased from 89% at September 30, 2006 to 87% at
September 30, 2007. Rental revenue from the acquired properties has
been included in the Company's results since their respective dates of
acquisition.
Net loss from continuing operations for the three months ended
September 30, 2007 was $3.1 million compared to $1.4 million for the
three months ended September 30, 2006. The loss from continuing
operations recorded during the third quarter of 2007 included a loss
on extinguishment of debt of $2.4 million.
Net loss for the quarter ended September 30, 2007 was $3.2
million, or $2.32 per share, compared to net loss of $1.5 million, or
$1.10 per share, for the third quarter of 2006. The net loss recorded
during the third quarter of 2007 included a $72,000 net loss from
discontinued operations compared to a $62,000 net loss from
discontinued operations during the third quarter of 2006. The net loss
from discontinued operations represents the operating results of an
office property located in Missouri, which was classified as real
estate held for sale as of September 30, 2007.
Net loss for the nine months ended September 30, 2007 was $5.6
million, or $4.09 per share, compared to net income of $8.9 million,
or $6.37 per share, for the nine months ended 2006. The net income for
the nine months ended September 30, 2006 included net income from
discontinued operations of $12.0 million generated from the
disposition of three properties during the first quarter of 2006.
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)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
-----------------------------------------------
REVENUES:
Rental revenue $ 7,498 $ 6,546 $ 22,099 $ 17,685
Interest and other
income 54 26 112 174
----------- ----------- ----------- -----------
Total revenues 7,552 6,572 22,211 17,859
----------- ----------- ----------- -----------
EXPENSES:
Property operating
expense 3,488 3,140 9,555 8,193
General and
administrative 898 806 2,648 2,730
Depreciation and
amortization 3,272 2,719 9,056 7,640
Interest expense 3,211 2,564 8,746 6,935
----------- ----------- ----------- -----------
Total expenses 10,869 9,229 30,005 25,498
----------- ----------- ----------- -----------
OTHER (LOSS) INCOME:
(Loss) gain on
extinguishment of
debt (2,413) - (2,413) 1,849
----------- ----------- ----------- -----------
Total other (loss)
income (2,413) - (2,413) 1,849
----------- ----------- ----------- -----------
Net loss from
continuing operations
before deferred
income tax benefit and
minority interest (5,730) (2,657) (10,207) (5,790)
Deferred income tax
benefit 2,136 977 3,918 2,118
----------- ----------- ----------- -----------
Net loss from
continuing operations
before minority
interest (3,594) (1,680) (6,289) (3,672)
Minority interest
(share from
continuing
operations) 464 225 818 490
----------- ----------- ----------- -----------
Net loss from
continuing operations (3,130) (1,455) (5,471) (3,182)
Discontinued
operations:
Loss from
discontinued
operations (135) (113) (327) (386)
Gain on sale of
discontinued
operations - - - 22,349
Deferred income tax
benefit (expense) 52 42 130 (8,077)
Minority interest 11 9 26 (1,848)
----------- ----------- ----------- -----------
(Loss) income from
discontinued
operations (72) (62) (171) 12,038
----------- ----------- ----------- -----------
Net (loss) income $ (3,202) $ (1,517) $ (5,642) $ 8,856
=========== =========== =========== ===========
Basic and diluted per
share data:
Net loss from
continuing
operations $ (2.27) $ (1.05) $ (3.97) $ (2.29)
(Loss) income from
discontinued
operations (0.05) (0.05) (0.12) 8.66
----------- ----------- ----------- -----------
Net (loss) income $ (2.32) $ (1.10) $ (4.09) $ 6.37
=========== =========== =========== ===========
Basic weighted average
shares used 1,380,093 1,383,404 1,379,039 1,388,660
September 30, December 31,
2007 2006
--------------- --------------
Real estate held for investment, net $ 186,983 $ 166,400
Cash 5,245 1,166
Total assets 215,411 190,182
Notes payable, including premiums 184,397 149,437
Total liabilities 200,748 168,798
Total stockholders' equity 9,613 15,339
CONTACT: American Spectrum Realty, Inc.
William J. Carden, Chairman, President and CEO
713-706-6200