Exhibit 99.1
[LETTERHEAD OF SIZZELER PROPERTY INVESTORS]
For additional information contact:
Thomas A. Masilla, Jr., Vice Chairman and President
504/471-6200
www.sizeler.net
SIZELER PROPERTY INVESTORS, INC. REPORTS FIRST QUARTER
2003 OPERATING RESULTS
NEW ORLEANS, LOUISIANA--May 9, 2003-- Sizeler Property Investors, Inc.
(NYSE:SIZ) today announced its operating results for the three-month period
ended March 31, 2003.
For the three months ended March 31, 2003, basic funds from operations available
to common shareholders totaled $2.8 million, compared to $3.9 million earned for
the same period a year ago. On a per share basis, basic funds from operations
available to common shareholders was $0.22 on weighted average shares
outstanding of 13,084,000 for the three months of 2003, compared to $0.32 on
weighted average shares outstanding of 12,236,000 for the same period in 2002.
Operating revenues totaled $13.2 million for the three months ended March 31,
2003, compared to $13.1 million earned a year ago. Operating costs were $5.1
million in 2003, compared to $4.4 million in 2002. The increase in operating
costs was due primarily to increased insurance costs, real estate taxes and
various other operating costs. Net operating income totaled $8.1 million for the
quarter ended 2003, compared to $8.7 million in 2002.
Interest expense for the first quarter of 2003 decreased approximately $175,000,
compared to the prior year's first quarter, while general and administrative
costs increased approximately $435,000 due primarily to increased payroll costs
and legal fees.
For the three months ended March 31, 2003, net income available to common
shareholders was $92,000, compared to $1.2 million earned for the same period a
year ago. On a per share basis, net income available to common shareholders was
$0.01 for the three months of 2003, compared to $0.10 for the same period in
2002.
Retail Portfolio
For the three-month period ended March 31, 2003, the Company's retail properties
accounted for approximately 56% of revenues and were 94% leased. Retail revenue
for the three-month period ended March 31, 2003 totaled $7.4 million, compared
to $7.1 million a year ago.
Sizeler Property Investors, Inc.
May 9, 2003
Page 2 of 4
The Company's retail portfolio consists of fifteen properties containing
approximately 2.6 million s.f. of gross leasable area and is composed of three
enclosed regional shopping malls, three power shopping centers and nine
community shopping centers, located in Florida and Louisiana.
Apartment Portfolio
The Company's apartment properties accounted for approximately 44% of revenues
for the three-month period ended March 31, 2003. Apartment properties were 91%
leased at March 31, 2003. Revenues for the three-month period ended March 31,
totaled $5.8 million in 2003 as compared to $6.0 million in 2002.
The apartment portfolio consists of sixteen properties- fourteen existing
properties containing approximately 3,400 units, located in Florida, Alabama and
Louisiana and two under construction in Florida and Louisiana which will contain
in total 350 new units.
New Development
Construction is continuing on the Company's two new apartment communities: the
second phase of its Governors Gate Apartment community located in Pensacola,
Florida and Greenbrier Estates, which is located in proximity to the Company's
North Shore Square Mall, located in Slidell, Louisiana. These two developments
are expected to be completed and contributing to the Company's earnings later in
2003.
Company Profile
Sizeler Property Investors, Inc. is an equity real estate investment trust
(REIT), which invests in retail and apartment properties in the southeastern
United States. The Company currently owns a total of thirty-one
properties--sixteen in Louisiana, eleven in Florida and four in Alabama.
Funds From Operations Definition: Real estate industry analysts and the Company
utilize the concept of funds from operations (FFO) as an important analytical
measure of a Real Estate Investment Trust's financial performance. The Company
considers FFO in evaluating its operating results, and its dividend policy is
also based, in part, on the concept of FFO.
FFO is defined by the Company as net income, excluding gains or losses from
sales of property and those items defined as extraordinary under accounting
principles generally accepted in the United States of America (GAAP), certain
non-recurring charges, plus depreciation on real estate assets and after
adjustments for unconsolidated partnerships. FFO does not represent cash flows
from operations as defined by GAAP, nor is it indicative that cash flows are
adequate to fund all cash needs, including distributions to shareholders. FFO
should not be considered as an alternative to net income as defined by GAAP or
to cash flows as a measure of liquidity.
FFO available to common shareholders is calculated as described above, and after
deducting the Company's quarterly preferred dividend. A reconciliation of net
income to basic and diluted FFO available to common stock shareholders is
presented below:
Sizeler Property Investors, Inc.
May 9, 2003
Page 3 of 4
Quarter Ended March 31
----------------------
2003 2002
---- ----
Dollars Shares Dollars Shares
---------- ---------- --------- ----------
Net income $ 297 13,084,000 $ 1,191 12,236,000
Additions:
Depreciation 2,885 2,823
Partnership depreciation 8 9
Deductions:
Minority depreciation 14 14
Preferred dividends 205 ---
Amortization costs 156 149
--------- ---------- --------- ----------
Funds from operations - available
to common shareholders $ 2,815 13,084,000 $ 3,860 12,236,000
Interest on convertible debentures 1,274 1,238
Amortization of debenture
issuance costs 64 61
--------- ---------- --------- ----------
Funds from operations - available
to common shareholders - diluted $ 4,153 18,230,000 $ 5,159 17,073,000
========= ========== ========= ==========
Net Operating Income Definition: Net Operating Income (NOI) is another
measurement of financial performance utilized by the Company, and is based on
the operating revenues and operating expenses directly associated with the
operations of the real estate properties (excluding corporate general and
administrative expenses, depreciation and amortization and interest expense).
www.sizeler.net
* * * * * * * * * *
Forward-Looking Statements
This release made by the Company may contain certain forward-looking statements
that are subject to risk and uncertainty. Investors and potential investors in
the Company's securities are cautioned that a number of factors could adversely
affect the Company and cause actual results to differ materially from those in
the forward-looking statements, including, but not limited to (a) the inability
to lease current or future vacant space in the Company's properties; (b)
decisions by tenants and anchor tenants who own their space to close stores at
the Company's properties; (c) the inability of tenants to pay rent and other
expenses; (d) tenant financial difficulties; (e) general economic and world
conditions, including threats to the United States homeland from unfriendly
factions; (f) decreases in rental rates available from tenants; (g) increases in
operating costs at the Company's properties; (h) increases in corporate
operating costs associated with new regulatory requirements; (i) lack of
availability of financing for acquisition, development and rehabilitation of
properties by the Company; (j) possible dispositions of mature properties since
the Company is continuously engaged in the examination of its various lines of
business; (k) increases in interest rates; (l) a general economic downturn
resulting in lower retail sales and causing downward pressure on occupancies and
rents at retail properties; as well as (m) the adverse tax consequences if
the Company were to fail to qualify as a REIT in any taxable
year. Except as required under federal securities laws and the rules and
regulations of the SEC, we do not have any intention or obligation to update or
revise any forward-looking statements in this release, whether as a result of
new information, future events, changes in assumptions or otherwise.
- Continued -
Sizeler Property Investors, Inc.
May 9, 2003
Page 4 of 4
SELECTED FINANCIAL DATA
(unaudited)
Quarter Ended March 31
------------------------------------
2003 2002
--------------- ---------------
Funds from operations available to common shareholders $ 2,815,000 $ 3,860,000
Diluted funds from operations available to common shareholders /1/ $ 4,153,000 $ 5,159,000
Net income $ 297,000 $ 1,191,000
Net income allocation
Allocable to preferred shareholders $ 205,000 $ ---
Allocable to common shareholders $ 92,000 $ 1,191,000
--------------- ---------------
Net income $ 297,000 $ 1,191,000
=============== ===============
Per share:
Basic funds from operations available to common shareholders $ 0.22 $ 0.32
Diluted funds from operations available to common shareholders /1/ $ 0.23 $ 0.30
Net income available to common shareholders $ 0.01 $ 0.10
Weighted average shares outstanding 13,084,000 12,236,000
Operating revenue $ 13,172,000 $ 13,135,000
Net operating income $ 8,113,000 $ 8,685,000
Interest expense $ 3,131,000 $ 3,306,000
Depreciation and amortization $ 2,885,000 $ 2,823,000
Dividends paid $ 3,213,000 $ 2,802,000
March 31
------------------------------------
2003 2002
--------------- ---------------
Real estate investments at cost $ 374,166,000 $ 351,547,000
Total assets $ 292,473,000 $ 278,756,000
Notes payable to banks $ 18,649,000 $ 2,204,000
Convertible subordinated debentures $ 56,599,000 $ 61,878,000
Total liabilities $ 192,995,000 $ 178,974,000
Shareholders' equity $ 99,478,000 $ 99,782,000
/1/ A hypothetical calculation of diluted FFO has been made reflecting the
potential dilution that could occur if the Company's convertible subordinated
debentures, maturing in 2009, were to convert into common stock and then
participate in the earnings of the Company. The conversion price for the
Company's convertible subordinated debentures is $11.00 per share, which is
significantly above the current market price. The hypothetical calculation for
the quarter ended March 31, 2003 is antidilutive.
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