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American Realty Investors Inc. Reports Operating Results (10-Q/A)
Posted by: gurufocus (IP Logged)
Date: May 17, 2012 09:23PM
American Realty Investors Inc. (ARL) filed Amended Quarterly Report for the period ended 2012-03-31. Amer Realty Inv has a market cap of $33 million; its shares were traded at around $2.849 with and P/S ratio of 0.3.
Highlight of Business Operations:The following discussion is based on our Consolidated Statements of Operations for the three months ended March 31, 2012 and 2011 as included in Part I, Item 1. “Financial Statements” of this report. The prior year s property portfolios have been adjusted for subsequent sales. Continued operations relates to income producing properties that were held during those years as adjusted for sales in the subsequent years.
Our net loss applicable to common shares decreased $2.3 million as compared to the prior year. The current year net loss applicable to common shares was a loss of $7.5 million, which includes loss on land sales of $1.0 million and net income from discontinued operations of $2.1 million, as compared to the prior year net loss applicable to common shares of $9.8 million, which includes gain on land sales of $5.3 million and net income from discontinued operations, of $0.9 million.
Rental and other property revenues were $30.3 million for the three months ended March 31, 2012. This represents an increase of $2.4 million, as compared to the prior period revenues of $27.9 million. This change, by segment, is an increase in the apartment portfolio of $2.7 million, offset by decrease in the commercial portfolio of $0.1 million and decrease in the land and other portfolios of $0.2 million. Within the apartment portfolio, there was an increase of $2.2 million due to the developed properties in the lease-up phase and an increase of $0.5 million in the same property portfolio. Within the commercial portfolio, the same property portfolio decreased by $0.1 million due to an increase in vacancy, which we attribute to the current state of the economy. Over the past several years, we have directed our efforts to apartment development and put some of our land development projects on hold until the economic conditions turn around. We continue to market our properties aggressively to attract new tenants and strive for continuous improvement of our properties in order to maintain our existing tenants.
Mortgage and loan interest expense was $17.7 million for the three months ended March 31, 2012. This represents an increase of $3.0 million, as compared to the prior period interest expense of $14.7 million. This change, by segment, is an increase in our apartment portfolio of $4.1 million, an increase in our commercial portfolio of $0.5 million, offset by a decrease in our land and other portfolio of $1.6 million. Within the apartment portfolio, the same apartment portfolio increased $3.0 million due to prepayment penalties paid for the refinancing of four apartment loans in the current period. The developed properties increased $1.1 million due to properties in the lease-up phase. Once an apartment is completed, the interest expense is no longer capitalized. The decrease in the land and other portfolio was due to land sales.
Loss on land sales increased for the three months ended March 31, 2012, as compared to the prior period. In the current period, we sold 461.17 acres of land in five separate transactions for an aggregate sales price of $8.2 million and recorded a loss of $1.0 million. In the prior period, we sold 230.45 acres of land in 12 separate transactions for an aggregate sales price of $50.1 million and recorded a gain of $5.3 million.
Stocks Discussed: ARL,