AmREIT Reports First Quarter Results and Second Quarter Dividend
AmREIT Reports First Quarter Results and Second Quarter Dividend
HOUSTON--(BUSINESS WIRE)-- AmREIT, Inc. (NYS: AMRE) ("AmREIT" or the "Company"), today announced financial results for the first quarter ended March 31, 2013 and dividends for the second quarter ended June 30, 2013.
First Quarter Highlights:
Financial Results
Core Funds from Operations ("Core FFO") available to common stockholders for the first quarter of 2013 was $4.3 million, or $0.27 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2012.
FFO available to common stockholders for the first quarter of 2013 was $4.1 million, or $0.26 per share, compared to $3.6 million, or $0.31 per share for the comparable period in 2012. Included in 2013 FFO was $164,000 in acquisition costs related to the MacArthur Park joint venture with Goldman Sachs.
Net income available to common stockholders for the first quarter of 2013 was $8.4 million, or $0.53 per share, compared to $1.3 million, or $0.11 per share, for the same period in 2012. Included in net income for the 2013 period was a $7.7 million gain on sale related to the sale of MacArthur Park and Pads into the joint venture with Goldman Sachs.
FFO and Core FFO are non-GAAP supplemental earnings measures that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of FFO and Core FFO to net income is attached to this press release.
Portfolio Results
In the first quarter of 2013, same-store net operating income ("NOI") increased 1.3% over the prior year period. During the period from January 1, 2010 through March 31, 2013, our same-store NOI has increased 3.0%.
Portfolio occupancy as of March 31, 2013 was 96.5%, a decrease of approximately 20 basis points as compared to portfolio occupancy of 96.7% as of December 31, 2012. On a leased basis (executed leases but where rent has not yet commenced), the portfolio was 97.2% leased as of March 31, 2013, with anticipated rent commencement during the second quarter.
During the first quarter of 2013, AmREIT signed 14 leases for 28,201 square feet of gross leasable area, including both new and renewal leases, and cash leasing spreads (i.e. new leasing rate per square foot compared to the expiring leasing rate per square foot) increased 6.7% for renewals and increased 41.4% for new comparable leases. On a GAAP basis (which includes the effects of straight-line rent), leasing spreads increased 10.2% on renewals and 56.4% on new comparable leases.
NOI is a non-GAAP supplemental earnings measure that AmREIT considers meaningful in measuring its operating performance. Further explanation and a reconciliation of NOI to net income is attached to this press release.
Dividends
AmREIT also announced today that the Company's Board of Directors has approved a regular quarterly cash dividend of $0.20 per share. The dividend will be paid on June 28, 2013 to all common stockholders of record on June 18, 2013.
Acquisitions and Dispositions
On March 26, 2013, we completed the entry into a joint venture (the Venture) with Goldman Sachs, in which the Venture acquired AmREIT's MacArthur Park and Pads shopping centers located in Dallas, Texas, along with the neighboring MacArthur Park Phase I shopping center from a third party. The Venture is a 70/30 joint venture whereby Goldman Sachs contributed cash for a 70% interest in the joint venture and AmREIT retained a 30% interest. The Venture placed mortgage financing on the entire combined property of approximately $43.9 million. At closing, AmREIT received net cash proceeds of approximately $35.6 million, which were used to repay borrowings under our unsecured credit facility. AmREIT will continue to manage and lease MacArthur Park on behalf of the joint venture and will retain a right of first offer to acquire the project in the future, after a lock-out period.
"I am pleased to report AmREIT posted solid results for the quarter, as our team advanced each of the four strategic initiatives set out in our IPO," said H. Kerr Taylor, Chairman and Chief Executive Officer of AmREIT. "First, internal growth through portfolio operations grew as same store NOI for the quarter was 1.3% and 3.0% since 2010; Second, growth within core markets was active with another Irreplaceable Corner property being placed under contract; Third, organic growth through incremental redevelopment continued with the launch of marketing for the first major densification project within Uptown Park; And fourth, accretive capital recycling was realized through a joint venture with Goldman Sachs."
Guidance
We reiterate our full year 2013 Core FFO and FFO guidance per share is as follows:
Projected 2013 Range | |||||||||||||||||
High | Low | ||||||||||||||||
Core FFO | $1.07 | $1.02 | |||||||||||||||
FFO | $0.98 | $0.93 | |||||||||||||||
Other Activities
AmREIT held its Annual Meeting of Stockholders at 10:00 AM Central Daylight Time on April 18, 2013.
At the Annual Meeting of Stockholders, stockholders approved, among other items, two charter amendments that, when taken together, had the effect of exchanging all of our issued and unissued shares of Class A common stock into shares of Class B common stock, on a one-for-one basis. We then renamed our Class B common stock to common stock, which are all now listed on the New York Stock Exchange.
Conference Call
AmREIT will hold its quarterly conference call to discuss the results of its first quarter of 2013 on Wednesday, May 8, 2013, at 10:00 a.m. Central Daylight Time (11:00 a.m. Eastern Daylight Time). To participate in the quarterly conference call, please call 1-888-317-6016 approximately 10 minutes before the scheduled start time. The conference call will be recorded and a replay of the call will be available via webcast shortly after the call concludes.
The conference call will also be webcast live at www.amreit.com and can be accessed under the Investors tab of the Company's website. A telephonic replay of the conference call will be available for 14 days following the conference call. To access the telephonic replay of the conference call, dial 1-877-344-7529 and enter passcode 10027417.
Supplemental Financial Information
Further details regarding AmREIT's results of operations, properties, and tenants are attached to this press release and can be accessed at the Company's web site at www.amreit.com.
About AmREIT
AmREIT believes it has one of the highest quality grocery and drugstore anchored retail portfolios in the REIT sector.AmREIT's 29-year-old established platform has localized acquisition, operation and redevelopment expertise in the most densely populated and affluent submarkets of five of the top markets in the U.S.:Houston, Dallas, San Antonio, Austin and Atlanta.Texas is one of the best performing economies in the country and 92% of AmREIT's income for the year ended December 31, 2012 was generated by its properties located in this market. AmREIT's management team has in-depth knowledge and extensive relationship advantages within its markets.AmREIT's portfolio was 96.5% occupied as of March 31, 2013, and its top five tenants include Kroger, Landry's, CVS/Pharmacy, H-E-B and Publix.AmREIT also has access to an acquisition pipeline through its value add joint ventures, including three leading institutional investors who partner with the company as local experts.AmREIT's common stock is traded on the New York Stock Exchange under the symbol "AMRE."For more information, please visitwww.amreit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including statements related to full year 2013 Core FFO and FFO financial projections and the underlying assumptions of such projections stated herein.These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases, which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect AmREIT's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. Furthermore, AmREIT disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could impact AmREIT's future results, performance or transactions, see the section entitled "Risk Factors" in AmREIT's final prospectus dated July 26, 2012, filed with the Securities and Exchange Commission on July 27, 2012 and other risks described in documents subsequently filed by AmREIT from time to time with the Securities and Exchange Commission.
Investor Contact
For more information, call Chad Braun, Chief Operating Officer and Chief Financial Officer of AmREIT, at (713) 850-1400. AmREIT is online at www.amreit.com.
AmREIT, INC. AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(in thousands except share data) | |||||||||||||||
March 31, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
ASSETS | (unaudited) | ||||||||||||||
Real estate investments at cost: | |||||||||||||||
Land | $ | 131,877 | $ | 147,460 | |||||||||||
Buildings | 191,743 | 222,679 | |||||||||||||
Tenant improvements | 13,540 | 17,386 | |||||||||||||
337,160 | 387,525 | ||||||||||||||
Less accumulated depreciation and amortization | (32,635 | ) | (39,820 | ) | |||||||||||
304,525 | 347,705 | ||||||||||||||
Acquired lease intangibles, net | 13,331 | 15,976 | |||||||||||||
Investments in Advised Funds | 16,759 | 7,953 | |||||||||||||
Net real estate investments | 334,615 | 371,634 | |||||||||||||
Cash and cash equivalents | 4,913 | 2,992 | |||||||||||||
Tenant and accounts receivable, net | 5,246 | 5,566 | |||||||||||||
Accounts receivable - related party, net | 1,019 | 821 | |||||||||||||
Notes receivable, net | 2,773 | 2,731 | |||||||||||||
Notes receivable - related party, net | 7,074 | 6,748 | |||||||||||||
Deferred costs, net | 3,144 | 3,696 | |||||||||||||
Other assets | 1,460 | 3,206 | |||||||||||||
TOTAL ASSETS | $ | 360,244 | $ | 397,394 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
Liabilities: | |||||||||||||||
Notes payable | $ | 181,096 | $ | 218,579 | |||||||||||
Accounts payable and other liabilities | 5,441 | 9,593 | |||||||||||||
Acquired below-market lease intangibles, net | 2,563 | 3,507 | |||||||||||||
TOTAL LIABILITIES | 189,100 | 231,679 | |||||||||||||
Stockholders' equity: | |||||||||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued | - | - | |||||||||||||
Class A common stock, $0.01 par value, 100,000,000 shares authorized, 11,657,563 shares issued and outstanding as of March 31, 2013, and December 31, 2012 | 117 | 117 | |||||||||||||
Class B common stock, $0.01 par value, 900,000,000 shares authorized, 4,512,225 and 4,465,725 shares issued and outstanding as of March 31, 2013, and December 31, 2012, respectively | 45 | 45 | |||||||||||||
Capital in excess of par value | 245,670 | 245,403 | |||||||||||||
Accumulated distributions in excess of earnings | (74,688 | ) | (79,850 | ) | |||||||||||
TOTAL STOCKHOLDERS' EQUITY | 171,144 | 165,715 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 360,244 | $ | 397,394 | |||||||||||
AmREIT, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
(in thousands except per share data) | |||||||||||||
(unaudited) | |||||||||||||
Three months ended March 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Revenues: | |||||||||||||
Rental income from operating leases | $ | 11,074 | $ | 8,929 | |||||||||
Advisory services income - related party | 843 | 1,131 | |||||||||||
Total revenues | 11,917 | 10,060 | |||||||||||
Expenses: | |||||||||||||
General and administrative | 1,951 | 1,484 | |||||||||||
Property expense | 3,119 | 2,213 | |||||||||||
Legal and professional | 252 | 221 | |||||||||||
Real estate commissions | 52 | 86 | |||||||||||
Depreciation and amortization | 3,299 | 2,227 | |||||||||||
Total expenses | 8,673 | 6,231 | |||||||||||
Operating income | 3,244 | 3,829 | |||||||||||
Other income (expense): | |||||||||||||
Gain on sale of real estate acquired for investment | 7,696 | - | |||||||||||
Interest and other income | 113 | 102 | |||||||||||
Interest and other income - related party | 56 | 72 | |||||||||||
Loss from Advised Funds | (148 | ) | (36 | ) | |||||||||
State income taxes | (72 | ) | (76 | ) | |||||||||
Interest expense | (2,493 | ) | (2,634 | ) | |||||||||
Net income | $ | 8,396 | $ | 1,257 | |||||||||
Net income per share of common stock - basic and diluted | $ | 0.53 | $ | 0.11 | |||||||||
Weighted average shares of common stock used to compute net income per share, basic and diluted | 15,590 | 11,374 | |||||||||||
Distributions per share of common stock | $ | 0.20 | $ | 0.20 | |||||||||
Summary of Operating Results (in thousands except per share data):
Three months ended March 31, | ||||||||||||
Funds from operations ("FFO") | 2013 | 2012 | ||||||||||
Net income | $ | 8,396 | $ | 1,257 | ||||||||
Add: | ||||||||||||
Depreciation of real estate assets - from operations | 3,286 | 2,213 | ||||||||||
Depreciation of real estate assets for nonconsolidated affiliates | 153 | 157 | ||||||||||
Less: | ||||||||||||
Gain on sale of real estate acquired for investment | (7,696 | ) | - | |||||||||
Total FFO available to stockholders | $ | 4,139 | $ | 3,627 | ||||||||
Weighted average shares outstanding(1) | 16,132 | 11,607 | ||||||||||
Total FFO per share | $ | 0.26 | $ | 0.31 | ||||||||
Core funds from operations ("Core FFO") | ||||||||||||
Total FFO available to stockholders | $ | 4,139 | $ | 3,627 | ||||||||
Add: | ||||||||||||
Acquisition costs for nonconsolidated affiliates | 164 | - | ||||||||||
Total Core FFO available to stockholders | $ | 4,303 | $ | 3,627 | ||||||||
Weighted average shares outstanding(1) | 16,132 | 11,607 | ||||||||||
Total Core FFO per share | ||||||||||||
