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

May 15, 2009 | About:

American Realty Investors Inc. (NYSE:ARL) filed Quarterly Report for the period ended 2009-03-31.

American Realty Investors Inc. is engaged in investing in equity interests in real estate leases joint venture development projects and partnerships and to a lesser extent financing real estate and real estate activities through investments in mortgage loans including first wraparound and junior mortgage loans. American Realty Investors Inc. has a market cap of $123.5 million; its shares were traded at around $11 with and P/S ratio of 0.7.

Highlight of Business Operations:

For the three months ended March 31, 2009, we reported a net loss applicable to common shares of ($7.2) million or ($0.64) per diluted earnings per share, as compared to a net income applicable to common shares of $59.8 million or $4.60 per diluted earnings per share for the same period ended 2008.

Rental and other property revenues increased by $3.5 million as compared to the prior period which by segment was an increase in the apartment portfolio of $2.8 million and an increase in the commercial portfolio of $2.0 million, offset by a decrease in the hotel portfolio of $0.9 million, a decrease in the land portfolio of $0.3 million and a decrease in the other portfolio of $0.1 million. Within the apartment portfolio the increase was attributable to a $3.2 million increase from developed properties in the lease up phase and $0.2 million from newly acquired properties, offset by a $0.6 million decrease in the same property portfolio. Within the commercial portfolio the increase was attributable to a $1.7 million increase from newly acquired properties and a $0.3 million increase from the same properties.

Depreciation and amortization increased $1.0 million as compared to the prior period which by segment was an increase in the apartment portfolio of $0.7 million and an increase in the commercial portfolio of $0.3 million. Within the apartment portfolio, the same properties increased $0.1 million and the developed properties increased $0.6 million. Within the commercial portfolio the acquired properties increased $0.3 million.

Other income increased $2.8 million as compared to the prior period. The majority of the increase of $2.3 million is from the gains on our disposition of our investment in the Korean REIT. In addition, we had $0.5 of nonrecurring income.

Mortgage and loan interest expense decreased $1.6 million as compared to the prior period which by segment is a decrease in the apartment portfolio of $0.4 million, a decrease in the commercial portfolio of $0.4 million, a decrease in the land portfolio of $0.8 million and a decrease in the other portfolio of $0.1 million, offset by an increase in the hotel portfolio of $0.1 million. Within the apartment portfolio, the same properties decreased $1.6 million, offset by an increase in the developed properties of $1.2 million. Within the commercial portfolio, the same properties increased $0.2 million and the acquired properties increased $0.2 million.

Provisions for allowance on notes receivable and impairment decreased $11.6 million as compared to the prior period. In the prior period, we posted a provision for doubtful collections on our receivables of $5.0 million and a $7.0 million reserve for against certain investments within our portfolio.

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Rating: 2.5/5 (2 votes)

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