DALLAS, Nov. 14, 2000 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) announced Tuesday that the company posted third quarter and nine month net incomes of $8.2 million and $1.6 million, or $.76 and $0.0 (zero) per share, on revenues of $49.8 million and $187.9 million, respectively, as compared to net incomes of $10.1 million and $1.9 million, or $.88 and $.02 per share, on revenues of $94.1 million and $224.3 million, respectively, in the comparable periods of 1999.
Details of income and sales for the periods ended Sept. 30, 2000, are as follows:
- Rental incomes decreased to $34.7 million and $105.2 million, from $40.3 million and $122.1 million in the same periods in 1999, due to 1999-2000 sales of income producing property. The decline was partially offset by higher commercial property and hotel rents. - Interest and other income decreased to $889,000 and $3.7 million, from $1.6 million and $4.3 million for the same periods in 1999, due to the collection of mortgage notes receivables and their related maturity in 2000. - Pizza parlor sales increased to $8.1 million and $24.4 million, from $7.8 million and $22.8 million, as a result of aggressive marketing. Cost of sales increased to $6.8 million and $20.1 million from $6.7 million and $19.5 million in 1999. Gross margins rose to $1.3 million and $4.3 million, from $1.1 million and $3.2 million in 1999. - Land sales increased to $89.3 million and $108.2 million, from $17.4 million and $62.2 million in 1999. Costs of land sales were $65.7 million and $81.1 million, up from $11.4 million and $44.7 million in 1999.
Total expenses (excluding costs of sales for pizza and land) decreased to $58.4 million and $193.2 million, from $83.4 million and $220.4 million for the comparable periods in 1999. Details on expenses for the periods in 2000 are below:
- Property operation expenses decreased to $23.8 million and $70.5 million, from $27.4 million and $80.8 million in the same periods in 1999, due to sales of income-producing property in 1999 and 2000. The decrease was partially offset by increases in commercial property and hotel expenses. - Interest expenses decreased to $19.6 million and $60.2 million, from $23 million and $68.5 million in 1999, due to sales of income producing property and land. - Depreciation, general and administrative expenses and advisory fees approximated those of the 1999 periods.
Total gains on sales of real estate fell to $27.1 million and $78.8 million, from $48.6 million and $87.3 million in the same periods in 1999. Gains for the periods ended Sept. 30, 2000, are detailed below:
- A third quarter sale of one apartment and nine month sales of seven
apartments, one office building and a shopping center produced
gains of $3.4 million and $51.7 million, a decrease from the $42.6
million and $69.9 million gains for the same periods in 1999.
- Sales of 17 land tracts in the third quarter and 31 land tracts in
the nine months accounted for gains of $23.6 million and
$27.1 million, an increase over the $6 million and $17.4 million
gains in 1999.
Equity in income of investees for the third quarter and nine months of 2000 increased to $2.6 million and decreased to $2.9 million, from $1.9 million and $5.3 million in 1999. The third quarter increase was attributable to gains associated with property sales. The nine month decrease was attributable to losses associated with the sale of Transcontinental Realty Investors, Inc. (NYSE:TCI) and Income Opportunity Realty Investors, Inc. (AMEX:IOT) stock.
Minority interest expense decreased to $5 million and $32.2 million for the third quarter and nine months 2000, from $23.2 million and $38.6 million in the comparable 1999 periods. The decrease is attributable to the decreased earnings of National Realty, L.P. in the first seven months of 2000 (ARI acquired the minority interest in NLP upon the business combination with American Realty Trust, Inc., on August 2, 2000).
American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers, and developed and undeveloped land. For more information on ARI, go to the company's web site at www.amrealtytrust.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Income from rents $ 34,708 $ 40,260 $ 105,211 $ 122,125
Expense from
operations 23,776 27,377 70,451 80,778
Operating income 10,932 12,883 34,760 41,347
Land sales $ 89,285 $ 17,434 $ 108,238 $ 62,158
Cost of sales 65,674 11,396 81,116 44,741
Gain on land sales 23,611 6,038 27,122 17,417
Pizza sales $ 8,124 $ 7,800 $ 24,388 $ 22,753
Cost of sales 6,798 6,711 20,138 19,509
Gross margin 1,326 1,089 4,250 3,244
Income from
operations $ 35,869 $ 20,010 $ 66,132 $ 62,008
Other income $ 3,466 3,505 6,587 9,559
Other expense 32,929 56,011 121,132 139,579
Gain on sale of
real estate 3,474 42,552 51,706 69,890
Income before
income taxes 9,880 10,056 3,293 1,878
Provision for
income taxes (1,652) -- (1,652) --
Net income $ 8,228 $ 10,056 $ 1,641 $ 1,878
Preferred
dividend
requirement (590) (570) (1,661) (1,704)
Net income (loss)
applicable to
Common shares $ 7,638 $ 9,486 $ (20) $ 174
Earnings Per
Share
Net income
(loss) $ .76 $ .88 $ -- $ .02
Weighted average
common shares
used to compute
earnings per
share 10,013,087 10,759,309 10,496,364 10,753,600