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

August 14, 2009 | About:

American Realty Investors Inc. (NYSE:ARL) filed Quarterly Report for the period ended 2009-06-30.

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 $131.4 million; its shares were traded at around $11.7 with and P/S ratio of 0.7.

Highlight of Business Operations:

Rental and other property revenues increased by $1.0 million as compared to the prior year period which by segment was an increase in the apartment portfolio of $2.9 million, offset by a decrease in the commercial portfolio of $0.2 million, a decrease in the hotel portfolio of $0.5 million, a decrease in the land portfolio of $0.5 million and a decrease in the other portfolio of $0.7 million. Within the apartment portfolio, the $3.5 million increase was due to developed properties in the lease up phase and $0.2 million from newly acquired properties, offset by a $0.8 million decrease in the same property portfolio. Within the commercial portfolio, the $1.0 million increase was due to newly acquired properties and a $1.2 million decrease from the same properties.

Property operating expenses decreased by $4.6 million as compared to prior year period which by segment is a decrease in the apartment portfolios of $2.4 million, commercial properties of $0.7 million, hotel portfolio of $0.6 million and land and other portfolio of $0.9 million. Within the apartment portfolio, decreases came from same properties which decreased $2.9 million, and developed properties increased by $0.5 million. Within the commercial properties the same properties decreased $1.0 million and the acquired properties increased $0.3 million.

Mortgage and loan interest expense increased $0.8 million as compared to the prior year period which by segment is an increase in the apartment portfolio of $1.7 million, a decrease in the commercial portfolio of $0.2 million, an increase in the land portfolio of $0.7 million and a decrease in the other portfolio of $1.4 million. Within the apartment portfolio, the same properties decreased $0.4 million, offset by an increase in the developed properties of $2.1 million. Within the commercial portfolio, the same properties increased $0.1 million and the acquired properties increased $0.1 million.

Property operating expenses decreased by $4.6 million as compared to the prior year period which by segment is an increase in the apartment portfolios of $0.7 million, a decrease in the commercial properties of $1.6 million, hotel portfolio of $1.3 million and land and other portfolio of $2.4 million. Within the apartment portfolio, increases came from developed properties which increased by $0.7 million. Within the commercial properties the same properties decreased $1.7 million and the acquired properties increased $0.1 million.

Mortgage and loan interest expense decreased $0.7 million as compared to the prior year period which by segment is an increase in the apartment portfolio of $1.2 million, a decrease in the commercial portfolio of $0.7 million, an increase in the land portfolio of $0.2 million, a decrease in the other portfolio of $1.5 million, and an increase in the hotel portfolio of $0.1 million. Within the apartment portfolio, the same properties increased $2.2 million, offset by a decrease in the developed properties of $1.0 million. Within the commercial portfolio, the acquired properties decreased $0.7 million.

Gain on land sales increased by $4.0 million as compared to the prior year period. The increase was due to recording a gain of $4.7 million on the sale of 3 acres of land known as West End land in the current period. In addition, we sold 3.13 acres of Verandas at City View land for a gain of $0.7 million, sold 3.96 acres of land known as Teleport land for a gain of $0.4 million, sold interest in Southwood land for a gain of $0.5 million, sold .91 acres of land known as JHL Connell land for a gain of $0.4 million and sold 8.23 acres of land known as Leone land for a gain on $1.5 million. We sold 9.2 acres of land known as Woodmont Schiff-Park Forest land at break even. There were no other land sales during the quarter. In the prior year period, we sold 80.99 acres of land for a gain of $4.2 million.

Read the The complete Report

Rating: 2.0/5 (3 votes)

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