American Community Properties Trust (APO) filed Quarterly Report for the period ended 2009-09-30.
American Community Properties Trust (ACPT) is a self-managed holding company that is primarily engaged in the business of investing in and managing multifamily rental properties as well as community development and homebuilding. With headquarters in St. Charles, Maryland, the company is a publicly traded partnership and its operations are primarily concentrated in the Washington, D.C. metropolitan area and Puerto Rico and are carried out through its U.S. subsidiaries, American Rental Properties Trust (`ARPT`), American Rental Management Company (`ARMC`), American Land Development, Inc. (`ALD`) and their subsidiaries and its Puerto Rican subsidiary, IGP Group Corp. (`IGP Group`). The company operates in two principal lines of business: Operating Real Estate and Land Development. The Operating Real Estate segment is comprised of ACPT's investments in rental properties and property management services. The Land Development segment is comprised of ACPT's community development and ho American Community Properties Trust has a market cap of $39.22 million; its shares were traded at around $7.5 with and P/S ratio of 0.47. American Community Properties Trust had an annual average earning growth of 13.7% over the past 5 years.
Highlight of Business Operations:
For the nine and three months ended September 30, 2009, our consolidated rental revenues increased $366,000 and $74,000, or 1%, to $25,772,000 and $8,600,000, respectively, as compared to $25,406,000 and $8,526,000, respectively, for the same periods ended September 30, 2008. The increase was primarily attributable to increased leasing in the Company s Puerto Rico commercial office building as well as overall rent increases at comparable properties in both the United States and Puerto Rico offset by an increase in vacancies. Consolidated net operating income (“NOI”), defined as rental property revenues less rental property operating expenses, is the primary performance measure we use to assess the results of our operations. We provide NOI as a supplement to net income calculated in accordance with generally accepted accounting principles (“GAAP”). NOI does not represent net income calculated in accordance with GAAP. As such, it should not be considered an alternative to net income as an indication of our operating performance. ACPT s NOI increased $409,000, or 3%, to $14,318,000 during the nine months ended September 30, 2009 and decreased $128,000, or 3%, to $4,619,000 during the three months ended September 30, 2009, as compared to $13,909,000 and $4,747,000, respectively, for the same periods in 2008. This represents ACPT s annual rent increase of 3% and the impact of our costs saving initiatives offset by increases in vacancy rates during the third quarter of 2009.
Community development land sales for the nine and three months ended September 30, 2009 increased $535,000 and $3,002,000, or 8% and 653%, to $6,992,000 and $3,462,000, respectively, as compared to $6,457,000 and $460,000, respectively, for the same periods ended September 30, 2008. During the nine months ended September 30, 2009, the Company sold 85 lots compared to 69 lots in the same period of 2008. During the three months ended September 30, 2009, the Company sold 44 lots compared to no lot sales for the same period in 2008.
On a consolidated basis, the Company reported net income attributable to ACPT of $25,262,000 and $24,575,000 for the nine and three months ended September 30, 2009, respectively, inclusive of the net gain on sale of $24,867,000. The net income attributable to ACPT for the nine months ended September 30, 2009 included a total provision for income taxes of $9,646,000 consisting of a $1,604,000 tax benefit related to losses before discontinued operations and a $11,250,000 tax provision included in discontinued operations. As a result, the total consolidated effective tax rate attributable to ACPT was approximately (28%). The total consolidated effective rate was impacted by the change in the deferred tax asset valuation allowance and accrued taxes and penalties related to uncertain tax positions. For further discussion of these items, see “Results of Operations-Income Taxes – Provision for (Benefit from) Income Taxes” and Note 7 of our Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q.
For the nine and three months ended September 30, 2009, our Operating Real Estate line of business generated NOI of $14,318,000 and $4,630,000, an increase of $425,000 and a decrease of ($111,000), respectively, compared to $13,893,000 and $4,741,000, respectively, of NOI generated by that line of business for the same periods in 2008. Additional information and analysis of the U.S. Operating Real Estate and Puerto Rican Operating Real Estate operations can be found in the tables below.
NOI increased $6,000 and decreased $311,000, or 1% and (6%), to $14,079,000 and $4,500,000 during the nine and three months ended September 30, 2009, respectively, as compared to $14,073,000 and $4,811,000 for the same periods in 2008, respectively. As described below, NOI has remained relatively consistent during the nine month periods ending September 30, 2009 and 2008 as overall rental property operating expenses due to management s cost saving initiatives were offset in three months ended September 30, 2009 by significant increases in vacancies as well as increases in advertising and concessions expenses to increase leasing activity.
Depreciation decreased $200,000, or 6%, for the nine months ended September 30, 2009 to $3,534,000 compared to $3,734,000 for the same period of 2008 as a result of a depreciation catch-up adjustment that was recorded in the first quarter of 2008 related to the Sheffield Green apartments. For the three months ended September 30, 2009 and 2008, depreciation expense slightly decreased by $1,000 to $1,204,000 from $1,205,000 as a result of a decrease in depreciable assets.
Rate This Article: |
  |