American Community Properties Trust (APO, Financial) filed Quarterly Report for the period ended 2009-03-31.
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 h American Community Properties Trust has a market cap of $32.7 million; its shares were traded at around $6.25 with and P/S ratio of 0.4. American Community Properties Trust had an annual average earning growth of 13.7% over the past 5 years.
Community development land sales for the three months ended March 31, 2009 decreased $515,000, or 50%, to $531,000 as compared to $1,046,000 for the three months ended March 31, 2008. The Company sold one commercial parcel in the first quarter of 2009. Residential land sales, currently sourced from the U.S. Land Development segment, result in large part from a sales agreement with Lennar Corporation (“Lennar”). No lots were sold in the first quarter of 2009 as compared to 11 lots during the same period of 2008.
On a consolidated basis, the Company reported net loss attributable to ACPT of $170,000 for the three months ended March 31, 2009. The net loss included a total benefit for income taxes of $800,000 of which $1,169,000 tax benefit related to losses before discontinued operations and $369,000 tax provision was included in discontinued operations. As a result, the total consolidated effective tax rate attributable to ACPT was approximately 83%. 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-Provisions for Income Taxes – Provision for (Benefit from) Income Taxes” and Note 9 of our Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q.
Depreciation decreased $192,000, or 14%, for the three months ended March 31, 2009 to $1,159,000 compared to $1,351,000 for the same period of 2008. A depreciation catch-up adjustment was recorded in the first quarter of 2008 related to the Sheffield Green apartments.
Discontinued operations decreased by $412,000 to $(596,000) for the three months ended March 31, 2009 compared to ($184,000) for the same period of 2008. The increase was primarily the result of the loss on write-down to fair value less costs to sell of $750,000 and ceasing the recording of depreciation expense on the Baltimore properties which are classified as discontinued operations in the first quarter of 2009. In 2008, these properties had $273,000 in depreciation expenses.
Discontinued operations increased $788,000, or 137%, to $1,362,000 for the three months ended March 31, 2009 compared to $574,000 for the same period in 2008. The increase was primarily driven by ceasing the recording of depreciation expense on the Puerto Rican apartment properties which are classified as discontinued operations in the first quarter of 2009. In 2008, these properties had $841,000 in depreciation expenses. In addition, general and administrative expenses related to discontinued operations decreased by $252,000 or 49%, and rental property operating expenses decreased by $81,000, or 3%, during the first quarter of 2009 as compared to the first quarter 2008. Offsetting these decreases was a shift in the provision for income taxes.
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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 h American Community Properties Trust has a market cap of $32.7 million; its shares were traded at around $6.25 with and P/S ratio of 0.4. American Community Properties Trust had an annual average earning growth of 13.7% over the past 5 years.
Highlight of Business Operations:
For the three months ended March 31, 2009, our consolidated rental revenues increased $93,000, or 1%, to $8,494,000 as compared to $8,401,000 for the three months ended March 31, 2008. The increase was primarily attributable to 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 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 $186,000, or 4%, to $4,762,000 during the three months ended March 31, 2009 as compared to $4,576,000 for the three months ended March 31, 2008. This represents ACPT s annual rent increase of 3% and the impact of our costs saving initiatives implemented in 2008.Community development land sales for the three months ended March 31, 2009 decreased $515,000, or 50%, to $531,000 as compared to $1,046,000 for the three months ended March 31, 2008. The Company sold one commercial parcel in the first quarter of 2009. Residential land sales, currently sourced from the U.S. Land Development segment, result in large part from a sales agreement with Lennar Corporation (“Lennar”). No lots were sold in the first quarter of 2009 as compared to 11 lots during the same period of 2008.
On a consolidated basis, the Company reported net loss attributable to ACPT of $170,000 for the three months ended March 31, 2009. The net loss included a total benefit for income taxes of $800,000 of which $1,169,000 tax benefit related to losses before discontinued operations and $369,000 tax provision was included in discontinued operations. As a result, the total consolidated effective tax rate attributable to ACPT was approximately 83%. 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-Provisions for Income Taxes – Provision for (Benefit from) Income Taxes” and Note 9 of our Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q.
Depreciation decreased $192,000, or 14%, for the three months ended March 31, 2009 to $1,159,000 compared to $1,351,000 for the same period of 2008. A depreciation catch-up adjustment was recorded in the first quarter of 2008 related to the Sheffield Green apartments.
Discontinued operations decreased by $412,000 to $(596,000) for the three months ended March 31, 2009 compared to ($184,000) for the same period of 2008. The increase was primarily the result of the loss on write-down to fair value less costs to sell of $750,000 and ceasing the recording of depreciation expense on the Baltimore properties which are classified as discontinued operations in the first quarter of 2009. In 2008, these properties had $273,000 in depreciation expenses.
Discontinued operations increased $788,000, or 137%, to $1,362,000 for the three months ended March 31, 2009 compared to $574,000 for the same period in 2008. The increase was primarily driven by ceasing the recording of depreciation expense on the Puerto Rican apartment properties which are classified as discontinued operations in the first quarter of 2009. In 2008, these properties had $841,000 in depreciation expenses. In addition, general and administrative expenses related to discontinued operations decreased by $252,000 or 49%, and rental property operating expenses decreased by $81,000, or 3%, during the first quarter of 2009 as compared to the first quarter 2008. Offsetting these decreases was a shift in the provision for income taxes.
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