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Gyrodyne Company of America Inc. Reports Operating Results (10-Q)

November 14, 2012 | About:
10qk

10qk

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Gyrodyne Company of America Inc. (GYRO) filed Quarterly Report for the period ended 2012-09-30.

Gyrodyne Company Of America has a market cap of $158.4 million; its shares were traded at around $105.05 with and P/S ratio of 28.7.

Highlight of Business Operations:

Rental revenues are comprised solely of rental income and amounted to $1,059,576 and $1,224,553 for the three months ended September 30, 2012 and 2011, respectively, a decrease of $164,977 or 13%. The Flowerfield Industrial Park, Port Jefferson Professional Park, Cortlandt Manor Medical Center and Fairfax Medical Center all experienced a decrease in revenue; amounting to $9,118, $51,774, $84,107, and $19,978, respectively. The reduction in revenue at the Flowerfield Industrial Park was primarily related to one tenant which defaulted on its lease. The tenant was evicted as of June 30, 2012 and the Company has a judgment in the amount of $136,000. Revenue from the judgment will not be recorded until received. The net decrease at the Cortlandt Manor Medical Center was related to a drop in occupancy compared to the prior period due to two terminations representing approximately 9,000 rentable square feet, half of which was retenanted by early October 2012. The Port Jefferson Professional Park s decrease was primarily related to one tenant which did not renew its lease in the fourth quarter of 2011 and a second tenant which did not renew its lease in June 2012, collectively representing approximately 7,000 square feet and $40,000 in revenue for the quarter. The net decrease at the Fairfax Medical Center was primarily related to various net terminations increasing the vacancy rate by 6,500 square feet over the comparable prior period.

Rental revenues are comprised solely of rental income and amounted to $1,059,576 and $1,224,553 for the three months ended September 30, 2012 and 2011, respectively, a decrease of $164,977 or 13%. The Flowerfield Industrial Park, Port Jefferson Professional Park, Cortlandt Manor Medical Center and Fairfax Medical Center all experienced a decrease in revenue; amounting to $9,118, $51,774, $84,107, and $19,978, respectively. The reduction in revenue at the Flowerfield Industrial Park was primarily related to one tenant which defaulted on its lease. The tenant was evicted as of June 30, 2012 and the Company has a judgment in the amount of $136,000. Revenue from the judgment will not be recorded until received. The net decrease at the Cortlandt Manor Medical Center was related to a drop in occupancy compared to the prior period due to two terminations representing approximately 9,000 rentable square feet, half of which was retenanted by early October 2012. The Port Jefferson Professional Park s decrease was primarily related to one tenant which did not renew its lease in the fourth quarter of 2011 and a second tenant which did not renew its lease in June 2012, collectively representing approximately 7,000 square feet and $40,000 in revenue for the quarter. The net decrease at the Fairfax Medical Center was primarily related to various net terminations increasing the vacancy rate by 6,500 square feet over the comparable prior period.

Rental revenues are comprised solely of rental income and amounted to $3,348,005 and $3,691,533 for the nine months ended September 30, 2012 and 2011, respectively, a decrease of $343,528 or 9%. The Flowerfield Industrial Park, Cortlandt Manor Medical Center, Port Jefferson Professional Park and Fairfax Medical Center, all experienced a decrease in revenue; amounting to $41,432, $140,145, $121,015 and $40,936, respectively. The reduction in revenue at the Flowerfield Industrial Park was primarily related to one tenant who defaulted on the lease. The tenant was evicted as of June 30, 2012 and the Company has a Judgment in the amount of $136,000. Revenue from the Judgment will not be recorded until received. The reduction in revenue at the Cortlandt Manor Medical Center was primarily related to a drop in occupancy compared to the prior period due to two terminations. The Port Jefferson Professional Park s decrease was primarily related to one tenant which did not renew its lease in the fourth quarter of 2011 and a second tenant which did not renew its lease in June 2012, collectively representing approximately 7,000 square feet and $120,000 in revenue for the quarter.

Rental revenues are comprised solely of rental income and amounted to $3,348,005 and $3,691,533 for the nine months ended September 30, 2012 and 2011, respectively, a decrease of $343,528 or 9%. The Flowerfield Industrial Park, Cortlandt Manor Medical Center, Port Jefferson Professional Park and Fairfax Medical Center, all experienced a decrease in revenue; amounting to $41,432, $140,145, $121,015 and $40,936, respectively. The reduction in revenue at the Flowerfield Industrial Park was primarily related to one tenant who defaulted on the lease. The tenant was evicted as of June 30, 2012 and the Company has a Judgment in the amount of $136,000. Revenue from the Judgment will not be recorded until received. The reduction in revenue at the Cortlandt Manor Medical Center was primarily related to a drop in occupancy compared to the prior period due to two terminations. The Port Jefferson Professional Park s decrease was primarily related to one tenant which did not renew its lease in the fourth quarter of 2011 and a second tenant which did not renew its lease in June 2012, collectively representing approximately 7,000 square feet and $120,000 in revenue for the quarter.

Rental expenses for the nine months ended September 30, 2012 and 2011 were $1,733,083 and $1,777,307, respectively, a decrease of $44,224 or 2%. The Company reduced maintenance expenses by approximately $13,000. Additionally, approximately $12,000 of the decrease was due to the Company successfully reducing the real estate taxes for the Port Jefferson Medical Center by $25,000 which was partially offset by net escalating real estate taxes at the remaining properties of approximately $13,000. The remaining difference is primarily related to a net reduction in the lease commission amortization expenses of $16,000 as a result of a prior year write-off of commissions related to an early termination at the Fairfax Medical Center and lower management fees of $12,000 primarily due to lower revenues. The Company successfully offset over 50% of the escalating insurance costs of approximately $17,000 with lower utility costs of $10,000.

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