EX-99.1 2 d72026exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
NEWS RELEASE
     
FOR IMMEDIATE RELEASE
  Contact:
 
  American Realty Investors, Inc.
 
  Investor Relations
 
  (800) 400-6407
 
  investor.relations@primeasset.com
American Realty Investors, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results
Dallas (April 1, 2010) — American Realty Investors, Inc. (NYSE:ARL), a Dallas-based real estate investment company, today reported results of operations for the year ended December 31, 2009. ARL reported a net loss applicable to common shares of $72.6 million or $6.46 per share, as compared to prior year net income applicable to common shares of $20.1 million or $1.85 per share. Net loss for the three months ended December 31, 2009 was $26.3 million or $2.34 per share, as compared to prior year net loss applicable to common shares of $18.1 million or $1.61 per share for the three months ended December 31, 2008.
Results of the year ended December 31, 2009 to the same period ended December 31, 2008;
     Rental revenues were $183.7 million for the twelve months ended December 31, 2009. The rental revenues for 2009, as compared to the same period in 2008, increased by $6.3 million, which by segment is an increase in apartment revenues of $11.3 million and an increase in commercial properties of $2.2 million, offset by a decrease in our hotels of $4.5 million and a decrease in our land and other segment of $2.7 million.
     Property operating expenses were $107.2 million for the twelve months ended December 31, 2009. The property operating expenses for 2009, as compared to the same period in 2008, decreased by $8.2 million, which by segment is an increase in our apartments of $5.3 million, a decrease in our commercial properties of $3.6 million, a decrease in our land and other segments of $7.7 million, and a decrease in our hotels of $2.2 million.
     Depreciation expenses were $30.6 million for the twelve months ended December 31, 2009. The depreciation expense for 2009, as compared to the same period in 2008, increased by $3.5 million, which by segment is $3.4 million due to our apartments, $1.2 million due to our commercial buildings, and a decrease of $1.1 million due to our land and other holdings.
     Provision for allowance on notes receivable and impairment was $44.6 million for the twelve months ended December 31, 2009. The provision on impairment of notes receivable, investment in real estate partnerships, and real estate assets for 2009, as compared to the same period in 2008, increased by $32.2 million.
     Interest expenses were $87.9 million for the twelve months ended December 31, 2009. The interest expense for 2009, as compared to the same period in 2008, decreased by $3.0 million, which by segment is an increase in our apartment portfolio of $1.7 million, offset by a decrease in our commercial portfolio of $1.6 million, a decrease in our hotel portfolio of $0.2 million, and a decrease in our land and other portfolios of $2.9 million.
     Gain on land sales were $11.6 million for the twelve months ended December 31, 2009. The gain on land sales for 2009, as compared to the same period in 2008, increased by $6.0 million. The majority of the increase in 2009 is due to the recognition of $3.4 million in prior year deferred gain due to the payoff of seller financing along with an increase in land sales in the current year.
     Income from discontinued operations was $6.5 million for the year ended 2009 as compared to $70.9 million for the same period in 2008. Included in discontinued operations are 10 and 37 properties as of 2009 and 2008, respectively.
About American Realty Investors, Inc.
     American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers and developed and undeveloped land. We invest in real estate through direct equity ownership and partnerships nationwide. For more information, go to ARL’s web site at www.amrealtytrust.com.

 

AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
                 
    For the Years Ended December 31,  
    2009     2008  
Revenues:
                
 
Rental and other property revenues
   $ 183,657     $ 177,367  
 
                
Expenses:
                
Property operating expenses
     107,226       115,473  
Depreciation and amortization
     30,549       27,051  
General and administrative
     14,688       16,938  
Provision on impairment of notes receivable and real estate assets
     44,578       12,417  
Advisory fee to affiliate
     15,683       15,940  
 
            
Total operating expenses
     212,724       187,819  
 
            
 
                
Operating income (loss)
     (29,067 )     (10,452 )
 
Other income (expense):
                
Interest income
     9,701       10,876  
Other income
     4,171       5,213  
Mortgage and loan interest
     (87,902 )     (90,912 )
Earnings from unconsolidated subsidiaries and investees
     35       (968 )
Gain on foreign currency translation
     292       (517 )
Involuntary Conversion
     —       —  
Litigation settlement
     (1,458 )     (875 )
 
            
Total other expenses
     (75.161 )     (77,183 )
 
            
 
                
Loss before gain on land sales, non-controlling interest, and taxes
     (104,228 )     (87,635 )
Gain on land sales
     11,605       5,584  
 
            
Loss from continuing operations before tax
     (92,623 )     (82,051 )
Income tax benefit
     3,492       38,158  
 
            
Net loss from continuing operations
     (89,131 )     (43,893 )
 
            
 
Discontinued operations:
                
 
Loss from discontinued operations
     (142 )     (10,552 )
Gain on sale of real estate from discontinued operations
     10,106       119,572  
Income tax expense from discontinued operations
     (3,492 )     (38,158 )
 
            
Net income (loss)
     (82,659 )     26,969  
Net income (loss) attributable to non-controlling interests
     12,518       (4,335 )
 
            
Net income (loss) attributable to American Realty Investors, Inc.
     (70, 141 )     22,634  
Preferred dividend requirement
     (2,488 )     (2,487 )
 
            
Net income (loss) applicable to common shares
   $ (72,629 )   $ 20,147  
 
            
 
                
Earnings per share - basic
                
Loss from continuing operations
   $ (7.04 )   $ (4.66 )
Discontinued operations
     0.58       6.51  
 
            
Net income (loss) applicable to common shares
   $ (6.46 )   $ 1.85  
 
            
 
                
Earnings per share - diluted
                
Loss from continuing operations
   $ (7.04 )   $ (4.66 )
Discontinued operations
     0.58       6.51  
 
            
Net income (loss) applicable to common shares
   $ (6.46 )   $ 1.85  
 
            
 
                
Weighted average common share used in computing earnings per share
     11,237,066       10,888,833  
Weighted average common share used in computing diluted earnings per share
     11,237,066       10,888,833  
 
                
Amounts attributable to American Realty Investors, Inc.
                
Loss from continuing operations
   $ (89,131 )   $ (43,893 )
Income from discontinued operations
     6,472       70,862  
 
            
Net income (loss)
   $ (82,659 )   $ 26,969  
 
            

 

 

AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
                 
    December 31,     December 31,  
    2009     2008  
    (dollars in thousands,except share and  
    par value amounts)  
Assets
                
Real estate, at cost
   $ 1,718,837     $ 1,712,506  
Real estate held for sale at cost, net of depreciation
     5,147       10,333  
Real estate subject to sales contracts at cost, net of depreciation
     53,341       55,100  
Less accumulated depreciation
     (195.804 )     (164,537 )
 
            
Total real estate
     1,581,521       1,613,402  
 
                
Notes and interest receivable
                
Performing
     91,872       68,845  
Non-performing
     3,108       20,032  
Less allowance for estimated losses
     (11,836 )     (11,874 )
 
            
Total notes and interest receivable
     83,144       77,003  
Cash and cash equivalents
     4,887       6,042  
Restricted cash
     —       271  
Investments in securities
     —       2,775  
Investments in unconsolidated subsidiaries and investees
     13,149       27,113  
Other assets
     123,353       115,547  
 
            
Total assets
   $ 1,806,054     $ 1,842,153  
 
            
 
                
Liabilities and Shareholders’ Equity
                
Liabilities:
                
Notes and interest payable
   $ 1,327,188     $ 1,311,935  
Notes related to assets held-for-sale
     5,002       7,722  
Notes related to subject to sales contracts
     61,886       62,972  
Stock-secured notes payable
     24,853       14,026  
Affiliate payables
     20,574       23,018  
Accounts payable and other liabilities
     155,202       124,902  
 
            
 
     1,594,705       1,544,575  
 
                
Commitments and contingencies:
                
Shareholders’ equity:
                
Preferred Stock, $2.00 par value, authorized 15,000,000 shares, issued and outstanding Series A, 3,390,913 shires in 2009 and in 2008 (liquidation preference $33,909), including 900,000 shares in 2009 and 2008 held by subsidiaries
     4,979       4,979  
 
                
Common Stock, $.01 par value, authorized 100,000,000 shares; issued 11,874,138 shares in 2009 and in 2008
     114       114  
 
                
Treasury stock at cost; 637,072 shares in 2009 and 2008, which includes 276,972 shares held by TCI (consolidated) as of 2009 and 2008
     (5,954 )     (5,954 )
Paid-in capital
     91,081       92,609  
Retained earnings
     46,971       119,599  
Accumulated other comprehensive income
     2,186       4,331  
 
            
Total American Realty Investors, Inc. shareholders’ equity
     139,377       215,678  
 
            
 
                
Non-controlling interest
     71,972       81,900  
 
            
Total equity
     211,349       297,578  
 
            
Total liabilities and equity
   $ 1,806,054     $ 1,842,153