Roberts Realty Investors, Inc. Announces FFO Per Share Up 23.0% For First Quarter

Apr 24, 2001, 01:00 ET from Roberts Realty Investors, Inc.

    ATLANTA, April 24 /PRNewswire Interactive News Release/ -- Roberts Realty
 Investors, Inc. (Amex:   RPI) announces Funds From Operations ("FFO") on a per
 share basis increased 23.0% during the first quarter compared to the same
 period last year.  FFO was $1,669,000 or $0.23 per share for the first quarter
 ended March 31, 2001 compared to $1,382,000 or $0.19 per share for the quarter
 ended March 31, 2000.
     The company's first quarter operating performance was driven by excellent
 same-property financial results, which included a 9.9% increase in same-
 property revenue and a 13.3% increase in same-property net operating income
 ("NOI").  The company's same-property NOI margin improved 2.1% from 66.2% to
 68.3%.  Average physical occupancy increased 4.2% from 93.5% to 97.7%, while
 the average monthly rent per apartment home increased 3.4% from $944 to $976
 per month.  Mr. Charles R. Elliott, the company's CFO, stated,, "Each of our
 stabilized properties posted higher revenue, NOI, occupancy, and rent growth
 during the first quarter when compared to the same period last year and we
 expect continued growth in revenue and cash flow from our existing properties
 during the second quarter."
     The following table compares the company's same-property financial
 highlights for the quarter ended March 31, 2001 to the same period a year ago.
 
                                        For The Three Months Ended
                                Mar 31, 2001    Mar 31, 2000     % Increase
 
 
     Operating Revenues           $4,128,000      $3,757,000          9.9%
     Operating Expenses           $1,309,000      $1,269,000          3.2%
     NOI                          $2,819,000      $2,488,000         13.3%
     NOI Margin                        68.3%           66.2%          2.1%
     Physical Occupancy                97.7%           93.5%          4.2%
     Average Monthly Rent               $976            $944          3.4%
 
 
     The following table compares the company's financial highlights for the
 quarter ended March 31, 2001 to the same period a year ago.
 
                                          For The Three Months Ended
                                Mar 31, 2001    Mar 31, 2000      % Change
 
 
     Operating Revenues           $4,805,000      $4,975,000        (3.4%)
     Operating Expenses           $1,568,000      $1,724,000        (9.0%)
     NOI                          $3,237,000      $3,251,000        (0.4%)
     Funds From Operations        $1,669,000      $1,382,000         20.8%
     FFO Per Share                     $0.23           $0.19         23.0%
     NOI Margin                        67.4%           65.3%          2.1%
     Average Shares and Units
       Outstanding                 7,265,003       7,405,986         (1.9%)
 
 
     During the past twelve months, the company sold two of its smaller
 apartment communities, Ivey Brook (146 units) in June 2000 and Rosewood
 Plantation (152 units) in January 2001.  The company sold both properties on
 8.25% capitalization rates and is redeploying the cash proceeds into new
 properties.  As a result, operating revenue during the first quarter declined
 3.4% from $4,975,000 during the quarter ended March 31, 2000 to $4,805,000
 during the quarter ended March 31, 2001.  Operating expenses declined 9.0%,
 which produced a slight decline of only 0.4% in NOI.  Mr. Elliott stated, "We
 are very pleased with our first quarter financial results.  Even though we
 sold two communities during the past year, our first quarter NOI is basically
 unchanged, which is due to our strong same-property financial results."
     The company expects to complete construction of its 285-unit second phase
 of Addison Place by the end of the second quarter.  The second phase is 43%
 leased and should be fully stabilized by the end of the third quarter.  In
 looking ahead to the remainder of 2001, Mr. Elliott stated, "Even though we
 sold two properties during the past year, we expect our FFO per share for 2001
 to be comparable to the $0.85 per share we achieved in 2000.  This is based on
 the continued strong performance of our existing properties and increasing
 cash flow from our newest property, Addison Place."
     This press release contains forward-looking statements within the meaning
 of the securities laws.  Although the company believes the expectations
 reflected in the forward-looking statements are based on reasonable
 assumptions, the company's actual results could differ materially from those
 anticipated in the forward-looking statements.  Certain factors that might
 cause such a difference include, but are not limited to, the following:
 occupancy rates and rents may be adversely affected by local economic and
 market conditions in Atlanta and Charlotte; the Atlanta and Charlotte markets
 may become overbuilt with multifamily apartments; construction costs of a new
 community may exceed original estimates; construction and lease-up of new
 communities in Atlanta and Charlotte may not be completed on schedule; and
 financing may not be available or, if available, not on favorable terms.
 
 
     CONSOLIDATED BALANCE SHEETS
 
     ROBERTS REALTY INVESTORS, INC.
 
                                                   (unaudited)
                                                     March 31,   December 31,
                                                         2001           2000
 
     Assets
 
     Operating real estate assets, net            $99,981,000    $99,619,000
     Construction in progress                      25,613,000     28,439,000
     Cash and cash equivalents                      1,897,000      1,495,000
     Restricted cash                                6,243,000        388,000
     Other assets, net                              4,785,000      1,588,000
 
     Total assets                                $138,519,000   $131,529,000
 
 
 
     Liabilities and Shareholders' Equity
 
     Mortgage notes payable                       $73,955,000    $77,538,000
     Construction loan payable                     17,783,000     14,152,000
     Land notes payable                             2,000,000      2,000,000
     Other liabilities                              7,384,000      5,795,000
 
     Total liabilities                           $101,122,000    $99,485,000
 
 
     Minority interest of unitholders
       in the operating partnership                12,341,000     10,607,000
 
 
     Shareholders' Equity
       Common stock                                    52,000         52,000
       Additional paid-in capital                  24,078,000     23,891,000
       Unamortized restricted stock compensation     (151,000)      (146,000)
       Repurchase of Units                           (150,000)      (150,000)
       Treasury stock                              (2,620,000)    (2,210,000)
       Accumulated other comprehensive income        (768,000)             0
       Retained earnings                            4,615,000              0
 
         Total shareholders' equity                25,056,000     21,437,000
 
     Total liabilities and shareholders' equity  $138,519,000   $131,529,000
 
 
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
 
     ROBERTS REALTY INVESTORS, INC.
 
                                                           (unaudited)
                                                        Three Months Ended
                                                            March 31,
                                                         2001          2000
 
 
 
     Operating revenues                            $4,805,000     $4,975,000
     Less: operating expenses                      (1,568,000)    (1,724,000)
 
     Net operating income                           3,237,000      3,251,000
 
     Other income (expenses)
     Interest income                                  111,000         46,000
     Interest expense                              (1,174,000)    (1,373,000)
     General and administrative                      (465,000)      (485,000)
     Loss on disposal of assets                       (16,000)       (39,000)
     Depreciation and amortization                 (1,318,000)    (1,418,000)
 
     Total other income (expenses)                 (2,862,000)    (3,269,000)
 
     Income (loss) before minority interest,
     gain on sale of real estate asset, and
     extraordinary items                              375,000        (18,000)
     Minority interest of unitholders                (124,000)         6,000
 
     Income (loss) before gain on sale of real
     estate asset and extraordinary item              251,000        (12,000)
     Gain on sale of real estate asset (net
     of minority interest)                          5,188,000              0
 
     Income (loss) before extraordinary items       5,439,000        (12,000)
     Loss on early extinguishment of debt
     (net of minority interest)                      (291,000)             0
 
     Net income                                    $5,148,000       $(12,000)
 
 
     PER SHARE DATA:
 
     Net income (loss) per common share                 $1.06          $0.00
 
     FFO per share                                      $0.23         $ 0.19
 
     Weighted average common shares-basic           4,867,447      4,844,337
 
     Weighted average common shares-diluted         7,265,003      7,405,986
 
 
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SOURCE Roberts Realty Investors, Inc.
    ATLANTA, April 24 /PRNewswire Interactive News Release/ -- Roberts Realty
 Investors, Inc. (Amex:   RPI) announces Funds From Operations ("FFO") on a per
 share basis increased 23.0% during the first quarter compared to the same
 period last year.  FFO was $1,669,000 or $0.23 per share for the first quarter
 ended March 31, 2001 compared to $1,382,000 or $0.19 per share for the quarter
 ended March 31, 2000.
     The company's first quarter operating performance was driven by excellent
 same-property financial results, which included a 9.9% increase in same-
 property revenue and a 13.3% increase in same-property net operating income
 ("NOI").  The company's same-property NOI margin improved 2.1% from 66.2% to
 68.3%.  Average physical occupancy increased 4.2% from 93.5% to 97.7%, while
 the average monthly rent per apartment home increased 3.4% from $944 to $976
 per month.  Mr. Charles R. Elliott, the company's CFO, stated,, "Each of our
 stabilized properties posted higher revenue, NOI, occupancy, and rent growth
 during the first quarter when compared to the same period last year and we
 expect continued growth in revenue and cash flow from our existing properties
 during the second quarter."
     The following table compares the company's same-property financial
 highlights for the quarter ended March 31, 2001 to the same period a year ago.
 
                                        For The Three Months Ended
                                Mar 31, 2001    Mar 31, 2000     % Increase
 
 
     Operating Revenues           $4,128,000      $3,757,000          9.9%
     Operating Expenses           $1,309,000      $1,269,000          3.2%
     NOI                          $2,819,000      $2,488,000         13.3%
     NOI Margin                        68.3%           66.2%          2.1%
     Physical Occupancy                97.7%           93.5%          4.2%
     Average Monthly Rent               $976            $944          3.4%
 
 
     The following table compares the company's financial highlights for the
 quarter ended March 31, 2001 to the same period a year ago.
 
                                          For The Three Months Ended
                                Mar 31, 2001    Mar 31, 2000      % Change
 
 
     Operating Revenues           $4,805,000      $4,975,000        (3.4%)
     Operating Expenses           $1,568,000      $1,724,000        (9.0%)
     NOI                          $3,237,000      $3,251,000        (0.4%)
     Funds From Operations        $1,669,000      $1,382,000         20.8%
     FFO Per Share                     $0.23           $0.19         23.0%
     NOI Margin                        67.4%           65.3%          2.1%
     Average Shares and Units
       Outstanding                 7,265,003       7,405,986         (1.9%)
 
 
     During the past twelve months, the company sold two of its smaller
 apartment communities, Ivey Brook (146 units) in June 2000 and Rosewood
 Plantation (152 units) in January 2001.  The company sold both properties on
 8.25% capitalization rates and is redeploying the cash proceeds into new
 properties.  As a result, operating revenue during the first quarter declined
 3.4% from $4,975,000 during the quarter ended March 31, 2000 to $4,805,000
 during the quarter ended March 31, 2001.  Operating expenses declined 9.0%,
 which produced a slight decline of only 0.4% in NOI.  Mr. Elliott stated, "We
 are very pleased with our first quarter financial results.  Even though we
 sold two communities during the past year, our first quarter NOI is basically
 unchanged, which is due to our strong same-property financial results."
     The company expects to complete construction of its 285-unit second phase
 of Addison Place by the end of the second quarter.  The second phase is 43%
 leased and should be fully stabilized by the end of the third quarter.  In
 looking ahead to the remainder of 2001, Mr. Elliott stated, "Even though we
 sold two properties during the past year, we expect our FFO per share for 2001
 to be comparable to the $0.85 per share we achieved in 2000.  This is based on
 the continued strong performance of our existing properties and increasing
 cash flow from our newest property, Addison Place."
     This press release contains forward-looking statements within the meaning
 of the securities laws.  Although the company believes the expectations
 reflected in the forward-looking statements are based on reasonable
 assumptions, the company's actual results could differ materially from those
 anticipated in the forward-looking statements.  Certain factors that might
 cause such a difference include, but are not limited to, the following:
 occupancy rates and rents may be adversely affected by local economic and
 market conditions in Atlanta and Charlotte; the Atlanta and Charlotte markets
 may become overbuilt with multifamily apartments; construction costs of a new
 community may exceed original estimates; construction and lease-up of new
 communities in Atlanta and Charlotte may not be completed on schedule; and
 financing may not be available or, if available, not on favorable terms.
 
 
     CONSOLIDATED BALANCE SHEETS
 
     ROBERTS REALTY INVESTORS, INC.
 
                                                   (unaudited)
                                                     March 31,   December 31,
                                                         2001           2000
 
     Assets
 
     Operating real estate assets, net            $99,981,000    $99,619,000
     Construction in progress                      25,613,000     28,439,000
     Cash and cash equivalents                      1,897,000      1,495,000
     Restricted cash                                6,243,000        388,000
     Other assets, net                              4,785,000      1,588,000
 
     Total assets                                $138,519,000   $131,529,000
 
 
 
     Liabilities and Shareholders' Equity
 
     Mortgage notes payable                       $73,955,000    $77,538,000
     Construction loan payable                     17,783,000     14,152,000
     Land notes payable                             2,000,000      2,000,000
     Other liabilities                              7,384,000      5,795,000
 
     Total liabilities                           $101,122,000    $99,485,000
 
 
     Minority interest of unitholders
       in the operating partnership                12,341,000     10,607,000
 
 
     Shareholders' Equity
       Common stock                                    52,000         52,000
       Additional paid-in capital                  24,078,000     23,891,000
       Unamortized restricted stock compensation     (151,000)      (146,000)
       Repurchase of Units                           (150,000)      (150,000)
       Treasury stock                              (2,620,000)    (2,210,000)
       Accumulated other comprehensive income        (768,000)             0
       Retained earnings                            4,615,000              0
 
         Total shareholders' equity                25,056,000     21,437,000
 
     Total liabilities and shareholders' equity  $138,519,000   $131,529,000
 
 
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
 
     ROBERTS REALTY INVESTORS, INC.
 
                                                           (unaudited)
                                                        Three Months Ended
                                                            March 31,
                                                         2001          2000
 
 
 
     Operating revenues                            $4,805,000     $4,975,000
     Less: operating expenses                      (1,568,000)    (1,724,000)
 
     Net operating income                           3,237,000      3,251,000
 
     Other income (expenses)
     Interest income                                  111,000         46,000
     Interest expense                              (1,174,000)    (1,373,000)
     General and administrative                      (465,000)      (485,000)
     Loss on disposal of assets                       (16,000)       (39,000)
     Depreciation and amortization                 (1,318,000)    (1,418,000)
 
     Total other income (expenses)                 (2,862,000)    (3,269,000)
 
     Income (loss) before minority interest,
     gain on sale of real estate asset, and
     extraordinary items                              375,000        (18,000)
     Minority interest of unitholders                (124,000)         6,000
 
     Income (loss) before gain on sale of real
     estate asset and extraordinary item              251,000        (12,000)
     Gain on sale of real estate asset (net
     of minority interest)                          5,188,000              0
 
     Income (loss) before extraordinary items       5,439,000        (12,000)
     Loss on early extinguishment of debt
     (net of minority interest)                      (291,000)             0
 
     Net income                                    $5,148,000       $(12,000)
 
 
     PER SHARE DATA:
 
     Net income (loss) per common share                 $1.06          $0.00
 
     FFO per share                                      $0.23         $ 0.19
 
     Weighted average common shares-basic           4,867,447      4,844,337
 
     Weighted average common shares-diluted         7,265,003      7,405,986
 
 
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 SOURCE  Roberts Realty Investors, Inc.