10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

American Realty Investors Inc. Reports Operating Results (10-Q)

November 12, 2010 | About:
10qk

10qk

18 followers
American Realty Investors Inc. (ARL) filed Quarterly Report for the period ended 2010-09-30.

American Realty Investors Inc. has a market cap of $91.5 million; its shares were traded at around $7.9499 with and P/S ratio of 0.5.

Highlight of Business Operations:

Rental and other property revenues were $39.8 million for the three months ended September 30, 2010. This represents a decrease of $1.7 million, as compared to the prior period revenues of $41.5 million. This change, by segment, is a decrease in the commercial portfolio of $2.3 million and a decrease in the hotel portfolio of $0.7 million, offset by an increase in the apartment portfolio of $0.6 million and an increase in the land and other portfolio of $0.7 million. Within the apartment portfolio, there was an increase of $0.7 million due to the developed properties in the lease-up phase, offset by a $0.1 million decrease in the same property portfolio. Within the commercial portfolio the decrease was attributable to a $2.3 million decrease from the same properties due to an increase in vacancy, which we attribute to the current state of the economy. Revenues from our same hotel portfolio are also suffering due to the economy with decreased stays from travelers. We have directed our efforts to apartment development and put some additional land projects on hold until the economic conditions turn around. We are continuing to market our properties aggressively to attract new tenants and strive for continuous improvement of our properties in order to maintain our existing tenants.

Property operating expenses were $25.0 million for the three months ended September 30, 2010. This represents a decrease of $0.4 million, as compared to the prior period operating expenses of $25.4 million. This change, by segment, is a decrease in our commercial properties of $0.5 million and a decrease in our hotels of $0.3 million, offset by an increase in our land and other segments of $0.4 million. The decrease in our hotel portfolio is due to the decrease in variable costs that are directly associated with stays within the hotel.

Depreciation and amortization expense was $7.6 million for the three months ended September 30, 2010. This represents an increase of $1.5 million, as compared to the prior period depreciation and amortization expense of $6.1 million. This change, by segment, is an increase in our apartment portfolio of $0.5 million and an increase in our land and other segments of $1.0 million. Within the apartment portfolio, $0.4 million was attributable to the developed properties and $0.1 million from the same properties. The increase within the land and other portfolios was due to a prior year adjustment recorded in 2009.

Loss on land sales was $0.1 million for the three months ended September 30, 2010. This represents a decrease of $3.5 million as compared to the prior period gain of $3.4 million. The decrease was due to recording a loss of $1.2 million on the sale of 21.90 acres of land known as Pulaski land, offset by a gain of $0.6 million on the sale of 6.51 acres of land known as Hines Meridian land, a gain of $0.1 million on the sale of 9.78 acres of land known as Waco Swanson land and a gain of $0.1 million on the sale of .43 acres of land known as the McKinney 36 land. We also recorded an additional gain of $0.3 million on the sale of 3.02 acres of land known as West End land in the current period. In the prior period, a $3.4 million deferred gain from collection of two note receivables on sale of land in accordance with the provisions per ASC Topic 360-20 was recognized.

For the nine months ended September 30, 2010, we reported a net loss applicable to common shares of $36.5 million or $3.17 per diluted earnings per share, as compared to a net loss applicable to common shares of $46.3 million or $4.02 per diluted earnings per share for the same period ended 2009.

Rental and other property revenues were $122.7 million for the nine months ended September 30, 2010. This represents a decrease of $2.9 million, as compared to the prior period revenues of $125.6 million. This change, by segment, is a decrease in the commercial portfolio of $4.8 million and a decrease in the hotel portfolio of $2.3 million, offset by an increase in the apartment portfolio of $4.0 million and an increase in the land and other portfolio of $0.2 million. Within the commercial portfolio, the $4.8 million decrease from the same properties was due to an increase in vacancy, which we attribute to the current state of the economy. Revenues from our same hotel portfolio are also suffering due to the economy with decreased stays from travelers. Within the apartment portfolio, there was an increase of $2.7 million due to the developed properties in the lease-up phase and an increase of $1.3 million in the same property portfolio. We have directed our efforts to apartment development and put some additional land projects on hold until the economic conditions turn around. We are continuing to market our properties aggressively to attract new tenants and strive for continuous improvement of our properties in order to maintain our existing tenants.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.3/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK