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