ST. CHARLES, Md., Nov. 16 /PRNewswire-USNewswire/ -- American Community
Properties Trust (ACPT) (NYSE Amex: APO) today reported a loss from continuing
operations of $723,000, or $0.13 per share, on revenues of $33,406,000 for the
nine months ended September 30, 2009. Net income was $25,262,000, or $4.76
per share, due to the sale of the Puerto Rico multifamily apartment
operations. This compares to a loss from continuing operations of $534,000, or
$0.11 per share, on revenues of $36,653,000 for the nine months ended
September 30, 2008, with a net loss of $2,001,000, or $0.38 per share.
For the quarter ended September 30, 2009, the Company reported a loss from
continuing operations of $414,000, or $0.07 per share, on revenues of
$12,051,000. Net income was $24,575,000, or $4.63 per share, due to the sale
of the Puerto Rico multifamily apartment operations. This compares to income
from continuing operations of $33,000 on revenue of $9,892,000 for the third
quarter 2008, with a net loss of $630,000, or $0.12 per share.
"Completing the sale of our Puerto Rico apartments was clearly our most
significant accomplishment in the third quarter," said Steve Griessel, Chief
Executive Officer. "The transaction has had a positive impact on our earnings
and balance sheet. More importantly though, the completion of this
transaction also gives us needed capital to stabilize our business as well as
provide us with the flexibility to capitalize our U.S. land development
business and thus accomplishes a strategic imperative set by the Company a
year ago.
Matthew M. Martin, Chief Financial Officer, noted that as a result of the sale
of the Puerto Rico apartments, the Company removed $57.5 million of asset,
$85.1 million of liabilities and recorded a total gain on sale of $25.3
million, which is significantly greater than the $14.3 million gross
consideration received. This difference represents certain distributions and
losses in excess of limited partners' basis that was previously required to be
absorbed by the Company. As these multifamily apartment partnerships are no
longer included in the Company's consolidated financial results, we were able
to recognize these previously absorbed distributions and losses in excess of
basis. In addition, the Company is required to pay a 29% Puerto Rico
withholding tax on the gross proceeds from the sale.
Related to continuing operations, Mr. Martin noted that rental property
revenues increased $366,000, or 1%, for the nine months ended September 30,
2009, compared to the same period of 2008. Mr. Martin attributed the increase
to overall rent increases at its apartment properties offset in part by
increases in vacancies.
Mr. Martin noted that expenses related to rental property operations decreased
$43,000 for the nine-months ended September 30, 2009 compared to 2008 but
increased $202,000 in the third quarter of 2009, compared to the third quarter
of 2008. Overall, net operating income (NOI(1)) from the Company's apartment
operations increased $409,000 for the nine month period ended September 30,
2009 but decreased by $128,000 for the third quarter 2009 as compared to the
same periods of 2008. "In the third quarter of 2009, we experienced nominal
increases in vacancies, concessions and bad debt expenses as compared to the
same quarter in 2008," said Mr. Martin, adding "our efforts to compress other
operating expenses have proved successful in maintaining NOI growth for the
nine month period in spite of these difficulties."
Mr. Martin reported that community development land sales for the nine months
ended September 30, 2009 totaled $6,992,000 compared to $6,457,000 for the
same period of 2008, an increase of $535,000. For the quarter ended September
30, 2009, community development land sales totaled $3,462,000, compared to
$460,000 for the same three months of 2008.
Mr. Griessel attributed the increase in community development land sales
between periods to improved lot sales in St. Charles. "Sales of residential
lots have been much stronger in St. Charles in 2009, due to improved pricing,
continued low interest rates, and the federal tax credit for first time
buyers," said Mr. Griessel. "While it is too soon to predict a rebound in the
housing market at large, we are cautiously optimistic that the pace of lot
sales in St. Charles will remain steady. However, our commercial sales have
declined significantly which is consistent with the overall condition of the
market."
Mr. Griessel noted that the weak Puerto Rico residential housing market has
slowed the pace of sales appreciably for the remaining condominium units in
Torres del Escorial. The Company reported homebuilding sales of $246,000 for
the nine months ended September 30, 2009, compared to $3,476,000 for the same
period last year, a decrease of $3,230,000. As of September 30, 2009, five
units remain in inventory. For the three months ended September 30, 2009, the
Company reported homebuilding sales of $246,000, compared to $494,000 for the
same three months of 2008, a decrease of $248,000.
Compared to the same period of 2008, general and administrative expenses
decreased $76,000 for the nine months ended September 30, 2009 and increased
$655,000 for the third quarter 2009, which included $937,000 of costs
associated with the previously announced sale transaction with Federal Capital
Partners. The Company has diligently worked to reduce its general and
administrative expenses as evidenced by the overall decline for the nine month
period in spite of the transaction costs.
Mr. Griessel emphasized that the Company's operating results should be
evaluated over an extended period of time due to the cyclical nature of its
business.
When filed, ACPT's Form 10-Q will be available via the Internet at
http://www.acptrust.com.
Company Information
ACPT (NYSE Amex: APO) is a diversified real estate organization with
operations in Maryland and Puerto Rico that specializes in community
development, homebuilding, investment in rental properties, and asset
management services. ACPT is currently listed on the NYSE Amex stock exchange
under the symbol AmCmntyProp ("APO"). When filed, ACPT's Form 10-Q will be
available via the Internet at http://www.acptrust.com.
Certain matters within this press release may be deemed to be forward-looking
statements within the meaning of the federal securities laws. Investors are
cautioned that all forward-looking statements involve risks, uncertainties,
and other factors that could cause actual results to differ materially from
those in the forward-looking statement. Forward-looking statements relate to
anticipated revenues, gross margins, earnings, and the growth of the market
for our products. Numerous factors could cause results to differ, including
but not limited to, changes in market demand and acceptance of the Company
products, impact of competitive products and pricing, dependence on
third-party customers (specifically Lennar Corp.), dependence on third-party
suppliers, changes in government regulations, the normal cyclical nature of
the real estate industry and development economy and changes in our tax
status. Although the Company believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. For more information, please
refer to the Company's Annual Report on Form 10-K for the year ended December
31, 2008, which is on file with the Securities and Exchange Commission, as
well as, when filed, the quarterly report on Form 10-Q for the nine-month
period ended September 30, 2009.
(1) Net Operating Income ("NOI") is calculated as real estate rental revenue
less real estate operating expense. NOI is a non-GAAP measure. Management
believes that NOI is helpful to investors as it captures the performance of
our real estate operations in a measure that is comparable with other entities
that have different capitalization.
AMERICAN COMMUNITY PROPERTIES TRUST
Unaudited Financial Highlights
(in thousands, except per share amounts)
Nine Months Ended Three Months Ended
September September September 30, September
30, 2009 30, 2008 2009 30, 2008
--------- --------- ------------- ---------
Revenues $33,406 $36,653 $12,051 $9,892
Expenses 28,177 31,750 10,577 8,451
------ ------ ------ -----
Operating
Income 5,229 4,903 1,474 1,441
Other
Expenses (7,556) (6,474) (2,462) (2,170)
------ ------ ------ ------
Loss before
benefit for
income taxes (2,327) (1,571) (988) (729)
Benefit for
income taxes (1,604) (1,037) (574) (762)
------ ------ ---- ----
(Loss) income
from
continuing
operations (723) (534) (414) 33
Discontinued
operations,
net of
applicable
taxes 1,338 224 (950) (293)
Gain on sale
of
discontinued
operations,
net of
applicable
taxes 25,351 - 25,351 -
------ - ------ -
Consolidated
net income
(loss) 25,966 (310) 23,987 (260)
Less: Net
income
(loss)
attributable
to
noncontrolling
interest 704 1,691 (588) 370
--- ----- ---- ---
Net income
(loss)
attributable
to ACPT $25,262 $(2,001) $24,575 $(630)
======= ======= ======= =====
Earnings per
share
attributable
to common
shareholders
Basic and
Diluted $4.76 $(0.38) $4.63 $(0.12)
Weighted
average
shares
outstanding
Basic and
diluted 5,312 5,215 5,312 5,222
U.S. Operating Real Estate Operations
For the nine September 30, September 30,
months ended 2009 2008
------- ------
Operating revenues $25,022 $25,107
Operating expenses 10,943 11,034
------ ------
Net operating income 14,079 14,073
Management and other fees,
substantially all from
related entities 58 117
General, administrative,
selling and marketing (1,346) (1,063)
Depreciation (3,534) (3,735)
------ ------
Operating income 9,257 9,392
Other expense (6,452) (5,944)
------ ------
Income before provision
for income taxes 2,805 3,448
Provision for income taxes 131 366
--- ---
Income from continuing
operations 2,674 3,082
Discontinued operations (533) (357)
---- ----
Consolidated net income $2,141 $2,725
====== ======
September September
30, 30,
2009 2008
For the three
months ended ------- ------
-------------
Operating revenues $8,295 $8,423
Operating expenses 3,795 3,612
----- -----
Net operating income 4,500 4,811
Management and other fees,
substantially all from
related entities 10 38
General, administrative,
selling and marketing (487) (334)
Depreciation (1,204) (1,205)
------ ------
Operating income 2,819 3,310
Other expense (2,255) (2,075)
------ ------
Income before provision
for income taxes 564 1,235
Provision for income taxes (212) (81)
---- ---
Income from continuing
operations 776 1,316
Discontinued operations 29 (108)
-- ----
Consolidated net income $805 $1,208
==== ======
Puerto Rican Operating Real Estate Operations
For the nine September September
months ended 30, 30,
2009 2008
---- ----
Operating revenues $750 $299
Operating expenses 511 479
--- ---
Net operating income 239 (180)
Management and other fees,
substantially all from
related entities 164 111
General, administrative,
selling and marketing (443) (754)
Depreciation (171) (170)
---- ----
Operating income (loss) (211) (993)
Other expense (207) (458)
---- ----
Loss before (benefit)
provision for income
taxes (418) (1,451)
Benefit for income taxes - (14)
---
Loss from continuing
operations (418) (1,437)
Discontinued operations 1,871 581
Gain on sale of
discontinued operations 25,351 -
------ -
Total discontinued
operations 26,804 581
====== ===
Consolidated net income
(loss) $26,804 $(856)
======= =====
September September
For the three 30, 30,
months ended 2009 2008
------------- ---- ----
Operating revenues $305 $103
Operating expenses 175 173
--- ---
Net operating income 130 (70)
Management and other fees,
substantially all from
related entities 88 37
General, administrative,
selling and marketing 3 (192)
Depreciation (2) (57)
-- ---
Operating income (loss) 219 (282)
Other expense 96 (150)
-- ----
Income (loss) before
benefit for income taxes 315 (432)
Provision (benefit) for
income taxes 612 (292)
--- ----
Loss from continuing
operations (297) (140)
Discontinued operations (979) (185)
Gain on sale of
discontinued operations 25,351 -
------ -
Total discontinued
operations 24,372 (185)
------ ----
Consolidated net income
(loss) $24,075 $(325)
======= =====
SOURCE American Community Properties Trust
Craig Renner of American Community Properties Trust, +1-301-843-8600
