Exhibit 99.1 BERKSHIRE INCOME REALTY ANNOUNCES PREFERRED DIVIDEND AND FIRST QUARTER PREDECESSOR RESULTS BOSTON, MASSACHUSETTS - - May 15, 2003 - - On May 15, 2003 Berkshire Income Realty, Inc. (BIR.PR.A) paid a regular dividend of $.2563 per share on its 9% Series A Cumulative Redeemable Preferred Stock. The regular quarterly dividend payable on the Series A Preferred Stock is $.5625 per share. This dividend is equivalent to an annualized rate of $2.25 per share. The dividend paid on May 15, 2003 was a prorated amount, reflecting the dividend amount accruing from the issue date of the Series A Preferred Stock. The dividend on the Series A Preferred Stock was paid to shareholders of record on May 10, 2003. Berkshire Income Realty today reported the results for the quarter ended March 31, 2003 of Berkshire Income Realty Predecessor Group, which for accounting purposes is deemed to be the predecessor of Berkshire Income Realty. Berkshire Income Realty commenced substantial operations on April 4, 2003, and is in the business of acquiring, owning and operating multi-family residential properties. Total revenues for the quarter ended March 31, 2003 were $6.3 million compared to $6.2 million in the same period of 2002. For the quarter ended March 31, 2003, Berkshire Income Realty Predecessor Group reported net income of $529 thousand. For the comparable period in 2002, net income was $1.2 million. In April and July of 2002, the Berkshire Income Realty Predecessor Group refinanced four of its five properties. The refinancing resulted in an increase in mortgage indebtedness of approximately $29 million. Management determined at that time that fixed rate financing was available at attractive rates and elected to refinance its variable rate debt with fixed rate debt. As a result of these refinancings, the weighted average interest rate on the mortgage debt increased from a variable rate of approximately 3.00%, the weighted average variable interest rate at March 31, 2002, to a fixed rate of approximately 6.00%, the weighted average fixed interest rate at March 31, 2003. Further information regarding the results of Berkshire Income Realty Predecessor Group for the quarter ended March 31, 2003 can be found in Berkshire Income Realty, Inc.'s Form 10-Q for the quarter ended March 31, 2003, which is being filed today with the Securities and Exchange Commission and will be available on the SEC's website at www.sec.gov. Forward-Looking Statements With the exception of the historical information contained in the release, the matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control, which may cause material differences in actual results, performance or other expectations. These factors include, but are not limited to, changes in economic conditions generally and the real estate and bond markets specifically, legislative/regulatory changes (including changes to laws governing the taxation of real estate investment trusts ("REITs"), availability of capital, interest rates and interest rate spreads, changes in generally accepted accounting principles and policies and guidelines applicable to REITs, those set forth in Part I, Item 1A. "Risk Factors" of the Company's Form 10-K and other risks and uncertainties as may be detailed from time to time in the Company's public announcements and SEC filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update such information. 1 BERKSHIRE INCOME REALTY, INC. BALANCE SHEET ASSETS March 31, December 31, 2003 2002 (Unaudited) (Unaudited) -------------- -------------- Assets: Cash ------------------------------------------- $ 100 $ 100 -------------- -------------- Total assets-------------------------------- $ 100 $ 100 ============== ============== LIABILITIES AND STOCKHOLDER'S EQUITY Liabilities: ------------------------------------ $ - $ - Stockholder's Equity: Preferred stock, liquidation preference $25.00 per share, 5,000,000 shares authorized, 0 shares issued and outstanding --- - - Class A common stock, $.01 par value, 5,000,000 shares authorized, 0 shares issued and outstanding ------------------------ - - Class B common stock, $.01 par value, 5,000,000 shares authorized, 100 shares issued and outstanding ------------------------ 1 1 Additional paid in capital---------------------- 99 99 -------------- -------------- Total liabilities and stockholder's equity - $ 100 $ 100 =============== ============== 2 BERKSHIRE INCOME REALTY PREDECESSOR GROUP COMBINED BALANCE SHEETS March 31, December 31, 2003 2002 (Unaudited) (Unaudited) -------------- -------------- (In Thousands) ASSETS Multi-family apartment communities, net of accumulated depreciation of $89,314 and $88,003, respectively $ 84,169 $ 85,157 Cash and cash equivalents 6,478 4,766 Cash restricted for tenant security deposits 777 776 Replacement reserve escrow 387 291 Prepaid expenses and other assets 2,408 3,410 Deferred expenses, net of accumulated amortization of $203 and $155, respectively 984 1,032 -------------- -------------- Total assets $ 95,203 $ 95,432 ============== ============== LIABILITIES AND OWNERS' DEFICIT Liabilities: Mortgage notes payable $ 105,475 $ 105,828 Accrued expenses and other liabilities 1,206 1,643 Tenant security deposits 871 839 -------------- -------------- Total liabilities 107,552 108,310 Owners' deficit (12,349) (12,878) -------------- -------------- Total liabilities and owners' deficit $ 95,203 $ 95,432 ============== ============== 3 BERKSHIRE INCOME REALTY PREDECESSOR GROUP COMBINED STATEMENTS OF OPERATIONS (Unaudited, In Thousands) For the Three Months Ended March 31, ------------------------------ 2003 2002 -------------- -------------- Revenue: Rental $ 5,962 $ 5,796 Interest 32 24 Utility reimbursement 104 155 Other 205 188 -------------- -------------- Total revenue 6,303 6,163 Expenses: Operating 1,474 1,415 Maintenance 429 382 Real estate taxes 452 430 General and administrative 130 172 Management fees 412 420 Depreciation 1,311 1,300 Interest 1,566 776 -------------- -------------- Total expenses 5,774 4,895 Income before minority interest 529 1,268 Minority interest - (54) -------------- -------------- Net income $ 529 $ 1,214 ============== ============== 4 Contact Information: Berkshire Income Realty, Inc. One Beacon Street, Suite 1500 Boston, Massachusetts 02108 Attention: Phil Darby Telephone: 1-617-574-8374 E-mail: phil.darby@berkshire-group.com Facsimile: 1-617-423-8919 5