American Spectrum Realty Reports 2012 Year End Results

American Spectrum Realty Reports 2012 Year End Results

HOUSTON--(BUSINESS WIRE)-- American Spectrum Realty, Inc. (NYSE MKT: AQQ) ("the Company"), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today its results for the year ended December 31, 2012.

Corporate general and administrative expenses decreased by approximately $1.7 million for the year ended December 31, 2012 compared to the year ended December 31, 2011. The decrease was in large part attributable to a reduction in corporate personnel costs and professional fees through streamlined operations. In 2012, the Company relocated its accounting department from Irvine, California to Houston, Texas, thereby reducing annual costs by approximately $0.5 million. This restructuring has allowed the Company to reduce redundancy between its two corporate office locations and provide more efficient service to third-party management clients. The decrease was also due to a decrease in legal costs, primarily related to the Evergreen lawsuit incurred in 2011, as well as other cost cutting measures implemented by management.


Rental revenue for the year ended December 31, 2012 decreased by approximately $3.7 million compared to the year ended December 31, 2011. The decrease in rental revenue was primarily due the deconsolidation of variable interest entities ("VIE's"), which resulted in a reduction in rental revenue of approximately $4.3 million. Rental revenue from our VIE properties consolidated for the full years 2012 and 2011 increased by approximately $0.6 million, primarily due to an increase in occupancy. Rental revenue for our owned properties was virtually unchanged. The weighted average occupancy of all properties consolidated was 80% at December 31, 2012.

Net income attributable to common stockholders for the year ended December 31, 2012 was $1.2 million, or $0.40 per share, compared to net income of $3.8 million, or $1.32 per share for the year ended December 31, 2011. The net income for 2012 included income from discontinued operations of $8.3 million, compared to income from discontinued operations of $12.6 million for 2011.

The Company's Funds From Operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, was $(3.8) million for the year ended December 31, 2012 compared to $2.1 million for the year ended December 31, 2011. The Company's business is the ownership, operation and management of real estate. It believes that FFO is helpful to investors when measuring operating performance because it excludes various items that are considered in the determination of net income or loss that do not relate to or are not indicative of operating performance, such as gains or losses from sales of operating properties and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. The following table reflects the reconciliation of FFO to net income attributable to the Company, the most directly comparable Generally Accepted Accounting Principles measure, for the year ended December 31, 2012 and December 31, 2011 (in thousands):

      Year Ended December 31,
2012   2011
Net income attributable to the Company $ 1,414 $ 3,999
Depreciation and amortization from discontinued operations 1,820 6,057
Gain on sale of discontinued operations attributable to the Company (13,243 ) (17,129 )
Deferred income tax expense 815 2,115
Depreciation and amortization attributable to the Company's owned properties 5,399   7,067  
FFO $ 3,795   $ 2,109  

American Spectrum Realty, Inc. is a real estate investment company that owns, through an operating partnership, interest in office, industrial self-storage, retail and multi-family properties throughout the United States. The Company has been publicly traded since 2001. American Spectrum Management Group, Inc., a wholly-owned subsidiary of the Company, manages and leases all properties owned by American Spectrum Realty, Inc. as well as for third-party clients.

American Spectrum Management Group, Inc. provides first-class management and leasing services for office, industrial, retail, self-storage, student housing and multi-family properties totaling over 10 million square feet in multiple states. For more information, visit www.asrmanagement.com or call 713-706-6200.

Certain matters discussed in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company's past and current filings with the U.S. Securities and Exchange Commission.

- Financial Tables Follow -

             
AMERICAN SPECTRUM REALTY, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
 
Year Ended
December 31,
2012         2011
REVENUES:
Rental revenue $ 51,927 $ 55,630
Third party management and leasing revenue 3,060 3,859
Interest income   125     345  
Total revenues   55,112     59,834  
 
EXPENSES:
Property operating expense 16,849 16,492

Corporate general and administrative

10,204 11,916
Depreciation and amortization 20,752 25,053
Interest expense 20,660 22,371
Impairment expense   982     3,782  
Total expenses   69,447     79,614  
 
OTHER INCOME:
Gain on litigation settlement - 4,076
Other income   718     485  
Total other income   718     4,561  
 
Loss from continuing operation before deferred income tax (13,617 ) (15,219 )
 
Deferred income tax benefit   3,511     2,426  
 
Loss from continuing operations   (10,106 )   (12,793 )
 

Discontinued operations:

Loss from operations

(2,428 ) (8,898 )
Gain on disposition of discontinued operations 15,075 26,016
Income tax (expense) benefit   (4,326 )   (4,541 )
Income from discontinued operations 8,321 12,577
   
Net Loss, including non-controlling interests (1,785 ) (216 )
 
Net loss attributable to non-controlling interests   3,199     4,215  
 
Net Income attributable to American Spectrum Realty, Inc.   1,414     3,999  
 
Less: Preferred stock dividend   (240 )   (240 )
 
Net Income attributable to American Spectrum Realty, Inc. common stockholders $ 1,174   $ 3,759  
 
Basic and diluted per share data:
Loss from continuing operations attributable to American Spectrum Realty, Inc. common stockholders ($1.65 ) ($0.90 )
Income from discontinued operations attributable to American Spectrum Realty, Inc. common stockholders   2.05     2.22  
Net Income attributable to American Spectrum Realty, Inc. common stockholders $ 0.40   $ 1.32  
 
Basic and diluted weighted average shares used 3,569,032 3,008,836
 
Amounts attributable to American Spectrum Realty, Inc. common stockholders:
Loss from continuing operations $ (6,122 ) $ (2,917 )
Income from discontinued operations   7,296     6,676  
Net Income $ 1,174   $ 3,759  



American Spectrum Realty, Inc.
William J. Carden, 713-706-6200
Chairman, President and CEO

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

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