Heartland Partners, L.P. Announces Results for Fourth Quarter and Year Ended December 31, 2000

Apr 03, 2001, 01:00 ET from Heartland Partners, L.P.

    CHICAGO, April 3 /PRNewswire/ -- Edwin Jacobson, President and CEO of
 Heartland Partners, L.P. (Amex:   HTL) today announced the master limited
 partnership's financial results for the fourth quarter and year ended
 December 31, 2000.  HTL reported a net gain of $2,103,000 and $9,844,000,
 respectively.  The net gain was allocated in part to the Class B Unit pursuant
 to Heartland Partner's Partnership Agreement resulting in a new gain of $2.76
 per Class A Unit.  The Operations for the fourth quarter and year ended
 December 31, 1999, resulted in a net loss of $(133,000) and $(3,757,000)
 respectively, or $(0) and $(0) per Class A Unit as a result of the allocation
 of losses to the Class B Unit pursuant to the terms of the partnership
 agreement.
     The profit for 2000 compared to a loss in 1999 is due primarily to
 increased revenues from sales of property and sales of condominiums at Kinzie
 Station.
 
     Kinzie Station Sales of $36.5 Million
     "We have closed sales of approximately 90% of the units in the 25-story
 Phase I tower, generating $36.5 million, and sales continue to be strong.
 Construction loans for the project were paid off as of the end of March 2001,"
 said Jacobson.
 
     250 Additional Units Approved for Phase II
     "The City of Chicago has approved zoning for Phase II of Kinzie Station --
 a 242-unit tower and 8 townhomes.  Twenty-six units in Phase II have been
 sold.  The Company is working on the design, permitting and financing of Phase
 II and hopes to be in a position to begin construction in the summer," said
 Jacobson.
     "Cohen Financial, a real estate investment banking firm has been engaged
 to arrange equity financing for Phase II.  They are seeking sources which
 would allow the company to liquefy a portion of its equity in the project.
     "We have begun planning for the remaining phases of Kinzie Station.  The
 Company has proposed a significant mixed-use project including apartments,
 condominiums, townhomes, a national grocery store and other neighborhood
 retail stores, a public parking structure and recreational amenities."
 
     $20 Million in 2000 Land Sales
     "Our program of accelerating disposition of assets showed significant
 results in 2000.  We generated $20 million through the sale of major
 properties including Rosemount, Minn.; Milwaukee, Wis. and Chicago, Ill.
 While some of our major contracts for 2000 have been cancelled (Home Depot and
 Gamma Photo) we are negotiating with new buyers for those properties and
 expect to sell those properties in 2001.  The $4,000,000 sale of property in
 Rosemount, Minn. to St. John's Lutheran Church, which was scheduled to close
 in 2000, was closed on March 28, 2001," said Jacobson.
 
     Other Major Developments
     "We are continuing the entitlement process for residential development of
 our 166-acre Fife, Washington property.  Our final Environmental Impact
 Statement has been files and we are in negotiations for the preliminary plat
 with the City of Fife.
     "Centex Homes has extended the closing date to acquire the remainder of
 the Bloomfield master planned community in Rosemount, Minn.
     "We have entered into an option to purchase contract to sell our 14-acre
 property in Bozeman, Montana to the Bozeman Public Library for $2.25 million.
 This sale is scheduled to close in the second half of 2001."
 
     Management's discussion and analysis of financial condition and results of
 operations in this press release contain certain statements that may
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other important factors
 that could cause the actual results, performance or achievement of results to
 differ materially from any future results, performance, or achievements
 expressed or implied by such forward-looking statements.
     Heartland Partners is a Chicago-based real estate partnership with
 properties in 14 states, primarily in the upper Midwest and northern United
 States.  CMC Heartland is a subsidiary of Heartland Partners, L.P.  In
 addition to existing industrial and residential projects in Chicago, Ill. and
 southern Wisconsin, CMC has retail, residential and industrial projects in
 Chicago, Ill.; Milwaukee, Wis.; Fife, Wash.; Bozeman, Mont.; and Rosemount,
 Minn.  CMC Heartland is the exclusive home builder for Longleaf Country Club
 in Southern Pines/ Pinehurst, NC.  CMC is the successor to the Milwaukee Road
 Railroad, founded in 1847.
 
 
                            HEARTLAND PARTNERS, L.P.
                               FINANCIAL SUMMARY
                  (amounts in thousands, except per unit data)
                                   (audited)
 
                            Consolidated Operations
 
                                           Quarter Ended    Twelve Months Ended
                                         December 31, 2000   December 31, 2000
                                            2000     1999      2000      1999
 
     Operating income (loss)               $1,463   $(719)    $8,436   $(5,010)
     Total Other income                       640     586      1,408     1,253
       Net income (loss)                   $2,103   $(133)    $9,844   $(3,757)
 
     Net income per
       Class A Unit (a)                     $0.98     $--      $2.76       $--
 
 
                                          December 31, 2000   December 31, 1999
 
     Properties, net                            $38,916             50,751
     Cash and other assets                        8,668              6,505
       Total assets                              47,584             57,256
       Total liabilities (b)                     32,088             51,604
       Partners' equity                         $15,496              5,652
 
     a) Net income per Class A Unit is complied by dividing net income, after
        deducting the General Partners' return and the return of the Class B
        Interest, by 2, 142, 438 Class A Units outstanding.
     b) Total liabilities include an allowance for claims totaling $4.5 million
        and $2.8 million at December 31, 2000, and 1999, respectively.
 
 

SOURCE Heartland Partners, L.P.
    CHICAGO, April 3 /PRNewswire/ -- Edwin Jacobson, President and CEO of
 Heartland Partners, L.P. (Amex:   HTL) today announced the master limited
 partnership's financial results for the fourth quarter and year ended
 December 31, 2000.  HTL reported a net gain of $2,103,000 and $9,844,000,
 respectively.  The net gain was allocated in part to the Class B Unit pursuant
 to Heartland Partner's Partnership Agreement resulting in a new gain of $2.76
 per Class A Unit.  The Operations for the fourth quarter and year ended
 December 31, 1999, resulted in a net loss of $(133,000) and $(3,757,000)
 respectively, or $(0) and $(0) per Class A Unit as a result of the allocation
 of losses to the Class B Unit pursuant to the terms of the partnership
 agreement.
     The profit for 2000 compared to a loss in 1999 is due primarily to
 increased revenues from sales of property and sales of condominiums at Kinzie
 Station.
 
     Kinzie Station Sales of $36.5 Million
     "We have closed sales of approximately 90% of the units in the 25-story
 Phase I tower, generating $36.5 million, and sales continue to be strong.
 Construction loans for the project were paid off as of the end of March 2001,"
 said Jacobson.
 
     250 Additional Units Approved for Phase II
     "The City of Chicago has approved zoning for Phase II of Kinzie Station --
 a 242-unit tower and 8 townhomes.  Twenty-six units in Phase II have been
 sold.  The Company is working on the design, permitting and financing of Phase
 II and hopes to be in a position to begin construction in the summer," said
 Jacobson.
     "Cohen Financial, a real estate investment banking firm has been engaged
 to arrange equity financing for Phase II.  They are seeking sources which
 would allow the company to liquefy a portion of its equity in the project.
     "We have begun planning for the remaining phases of Kinzie Station.  The
 Company has proposed a significant mixed-use project including apartments,
 condominiums, townhomes, a national grocery store and other neighborhood
 retail stores, a public parking structure and recreational amenities."
 
     $20 Million in 2000 Land Sales
     "Our program of accelerating disposition of assets showed significant
 results in 2000.  We generated $20 million through the sale of major
 properties including Rosemount, Minn.; Milwaukee, Wis. and Chicago, Ill.
 While some of our major contracts for 2000 have been cancelled (Home Depot and
 Gamma Photo) we are negotiating with new buyers for those properties and
 expect to sell those properties in 2001.  The $4,000,000 sale of property in
 Rosemount, Minn. to St. John's Lutheran Church, which was scheduled to close
 in 2000, was closed on March 28, 2001," said Jacobson.
 
     Other Major Developments
     "We are continuing the entitlement process for residential development of
 our 166-acre Fife, Washington property.  Our final Environmental Impact
 Statement has been files and we are in negotiations for the preliminary plat
 with the City of Fife.
     "Centex Homes has extended the closing date to acquire the remainder of
 the Bloomfield master planned community in Rosemount, Minn.
     "We have entered into an option to purchase contract to sell our 14-acre
 property in Bozeman, Montana to the Bozeman Public Library for $2.25 million.
 This sale is scheduled to close in the second half of 2001."
 
     Management's discussion and analysis of financial condition and results of
 operations in this press release contain certain statements that may
 constitute "forward-looking statements" within the meaning of the Private
 Securities Litigation Reform Act of 1995.  Such forward-looking statements
 involve known and unknown risks, uncertainties and other important factors
 that could cause the actual results, performance or achievement of results to
 differ materially from any future results, performance, or achievements
 expressed or implied by such forward-looking statements.
     Heartland Partners is a Chicago-based real estate partnership with
 properties in 14 states, primarily in the upper Midwest and northern United
 States.  CMC Heartland is a subsidiary of Heartland Partners, L.P.  In
 addition to existing industrial and residential projects in Chicago, Ill. and
 southern Wisconsin, CMC has retail, residential and industrial projects in
 Chicago, Ill.; Milwaukee, Wis.; Fife, Wash.; Bozeman, Mont.; and Rosemount,
 Minn.  CMC Heartland is the exclusive home builder for Longleaf Country Club
 in Southern Pines/ Pinehurst, NC.  CMC is the successor to the Milwaukee Road
 Railroad, founded in 1847.
 
 
                            HEARTLAND PARTNERS, L.P.
                               FINANCIAL SUMMARY
                  (amounts in thousands, except per unit data)
                                   (audited)
 
                            Consolidated Operations
 
                                           Quarter Ended    Twelve Months Ended
                                         December 31, 2000   December 31, 2000
                                            2000     1999      2000      1999
 
     Operating income (loss)               $1,463   $(719)    $8,436   $(5,010)
     Total Other income                       640     586      1,408     1,253
       Net income (loss)                   $2,103   $(133)    $9,844   $(3,757)
 
     Net income per
       Class A Unit (a)                     $0.98     $--      $2.76       $--
 
 
                                          December 31, 2000   December 31, 1999
 
     Properties, net                            $38,916             50,751
     Cash and other assets                        8,668              6,505
       Total assets                              47,584             57,256
       Total liabilities (b)                     32,088             51,604
       Partners' equity                         $15,496              5,652
 
     a) Net income per Class A Unit is complied by dividing net income, after
        deducting the General Partners' return and the return of the Class B
        Interest, by 2, 142, 438 Class A Units outstanding.
     b) Total liabilities include an allowance for claims totaling $4.5 million
        and $2.8 million at December 31, 2000, and 1999, respectively.
 
 SOURCE  Heartland Partners, L.P.