Sizeler Property Investors, Inc. Reports First Quarter 2001 Operating Results

Apr 26, 2001, 01:00 ET from Sizeler Property Investors, Inc.

    NEW ORLEANS, April 26 /PRNewswire/ -- Sizeler Property Investors, Inc.
 (NYSE:   SIZ) today announced its operating results for the three months ended
 March 31, 2001.
     Net operating income for the three months ended March 31, 2001 totalled
 $7.5 million, compared to $7.3 million earned in 2000.  Total operating
 revenues increased 4% to $13.2 million, compared to $12.7 million earned for
 the same period a year ago.  Growth in total operating revenues continues to
 reflect the Company's achievement of strong occupancy levels together with
 market sustained rents in both the retail and apartment segments of the
 portfolio.  At March 31, 2001, the retail shopping center and apartment
 properties in the Company's portfolio were 92% and 98% leased, respectively.
 Partially offsetting the increase in operating revenues was an increase in
 operating expenses, in particular utilities, real estate taxes and property
 insurance costs.
     Basic funds from operations totalled $3.3 million for the three months
 ended March 31, 2001, compared to $3.2 million earned a year ago.  Per share
 basic funds from operations were $0.41 in both 2001 and 2000 as a result of
 the weighted average shares outstanding for the three months ended March 31,
 2001 increasing to 8,107,000, compared to 7,901,000 in 2000.  The increase in
 shares outstanding is due to new shares being issued through the Company's
 direct stock purchase and dividend reinvestment plan.  This plan generated
 approximately $2 million in new equity capital to the Company over the last
 twelve months.
 
     Retail Property Portfolio
     At March 31, 2001, the Company's retail properties accounted for
 approximately 55% of revenues.  Retail revenues for the three months ended
 March 31, 2001 increased approximately 4% to $7.3 million, compared to
 $7.0 million in 2000.  During the first quarter, the Company renewed and
 leased approximately 25,000 s.f. of retail space with a resulting increase in
 rents of 22%.  In February, 2001 the Company purchased an income producing
 property adjoining its Westward Power Shopping Center, in West Palm Beach,
 Florida.  This property is leased to a national tenant.
     The Company's retail portfolio of sixteen properties contains
 approximately 2.7 million s.f. of gross leasable area, consisting of three
 enclosed regional shopping malls, three power shopping centers and ten
 community shopping centers, located in Florida, Louisiana and Texas.
 
     Multi-Family Property Portfolio
     At March 31, 2001 the Company's apartment properties accounted for 45% of
 the Company's revenues.  The previously mentioned high occupancy level of the
 apartment properties together with market sustained rents resulted in a 4%
 increase in apartment operating revenues to $5.9 million for the three months
 ended March 31, 2001, compared to $5.6 million in 2000.  The apartment
 portfolio consists of fourteen properties, which contain approximately 3,400
 units, located in Florida, Alabama and Louisiana.
     Sidney W. Lassen, Chairman and CEO, commented, "the Company's performance
 in both the retail and apartment portfolios was consistent with our
 expectations.  Management's focus continues to be on growth through the
 development of new properties and the redevelopment of existing properties,
 aimed at achieving our primary objective of creating long-term value.  While
 near-term economic conditions have weakened across the country, we remain
 confident in the long-term quality and resiliency of our portfolio."
 
     Company Profile
     Sizeler Property Investors, Inc. is an equity real estate investment
 trust, which focuses on retail and multi-family properties in the southeastern
 region of the United States.  Sizeler currently owns 30 properties, consisting
 of three enclosed regional shopping malls, three power centers, ten community
 shopping centers, and fourteen apartment communities.  Fifteen of the
 Company's properties are located in Louisiana, ten in Florida, four in
 Alabama, and one in Texas.
 
     Funds From Operations Definition:  Funds from operations (FFO) is a
 measurement of financial performance used in the REIT industry and as
 prescribed by the National Association of Real Estate Investment Trusts is
 defined by the Company as net income, excluding gains or losses from sales of
 property and those items defined as extraordinary under accounting principles
 generally accepted in the United States of America (GAAP), plus depreciation
 on real estate assets, and after adjustments for unconsolidated partnerships
 to reflect funds from operations on the same basis.
     Net Operating Income Definition:  Net Operating Income (NOI) is another
 measurement of financial performance utilized by the Company, and is based on
 the operating revenues and operating expenses directly associated with the
 operations of the real estate properties (excluding depreciation and interest
 expense).
 
     Forward-Looking Statements
     Certain statements in this release are forward-looking and as such are
 based upon the Company's current belief as to the outcome and timing of future
 events.  There can be no assurance that future developments affecting the
 Company will be those anticipated by the Company.  These forward-looking
 statements involve risks and uncertainties (some of which are beyond the
 control of the Company) and are subject to change based upon various factors,
 including but not limited to the following risks and uncertainties: changes in
 the real estate industry and in performance of the financial markets; the
 demand for and market acceptance of the Company's properties for rental
 purposes; the amount and growth of the Company's expenses; the continued
 availability of adequate funding sources to the Company; tenant financial
 difficulties; and in general economic conditions, including interest rates, as
 well as economic conditions in those areas where the Company owns properties;
 possible dispositions of mature properties since the Company is continuously
 engaged in the examination of its various lines of business.  Should one or
 more of these risks or uncertainties occur, or should underlying assumptions
 prove incorrect, the Company's results could differ materially from those
 expressed in the forward-looking statements.
 
 
                              SELECTED FINANCIAL DATA
                                    (unaudited)
 
                                                Quarter Ended March 31
                                                 2001             2000
     Funds from operations                   $ 3,336,000      $ 3,249,000
     Diluted funds from operations (A)       $ 4,634,000      $ 4,547,000
     Net income                              $   663,000      $   626,000
 
     Per share:
       Basic Funds from operations           $      0.41      $     0 .41
       Diluted funds from operations (A)     $      0.36      $      0.36
       Net income                            $      0.08      $      0.08
 
     Weighted average shares outstanding       8,107,000        7,901,000
     Operating Revenue                       $13,156,000      $12,665,000
     Net Operating Income                    $ 7,478,000      $ 7,326,000
     Interest Expense                        $ 3,982,000      $ 3,931,000
     Depreciation and amortization           $ 2,833,000      $ 2,769,000
     Dividends paid                          $ 1,871,000      $ 1,738,000
 
 
                                                      March 31
                                                2001             2000
     Total assets                           $284,049,000     $284,319,000
     Real estate investments at cost        $351,156,000     $341,782,000
     Convertible subordinated debentures    $ 61,878,000     $ 61,878,000
     Shareholders' equity                   $ 66,791,000     $ 69,693,000
 
     (A)  Funds from operations (FFO) is a measurement of financial performance
          used in the REIT industry, and is defined by the Company as net
          income, excluding gains or losses from sales of property and those
          items defined as extraordinary under accounting principles generally
          accepted in the United States of America (GAAP), plus depreciation on
          real estate assets, and after adjustments for unconsolidated
          partnerships to reflect funds from operations on the same basis.  A
          hypothetical calculation of diluted FFO has been made reflecting the
          potential dilution that could occur if the Company's convertible
          subordinated debentures were to convert into common stock and then
          participate in the earnings of the Company.  However, the conversion
          price for the Company's convertible subordinated debentures is $13.00
          per share, which is significantly above the current market price and,
          accordingly, does not require a dilution calculation under GAAP.
 
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SOURCE Sizeler Property Investors, Inc.
    NEW ORLEANS, April 26 /PRNewswire/ -- Sizeler Property Investors, Inc.
 (NYSE:   SIZ) today announced its operating results for the three months ended
 March 31, 2001.
     Net operating income for the three months ended March 31, 2001 totalled
 $7.5 million, compared to $7.3 million earned in 2000.  Total operating
 revenues increased 4% to $13.2 million, compared to $12.7 million earned for
 the same period a year ago.  Growth in total operating revenues continues to
 reflect the Company's achievement of strong occupancy levels together with
 market sustained rents in both the retail and apartment segments of the
 portfolio.  At March 31, 2001, the retail shopping center and apartment
 properties in the Company's portfolio were 92% and 98% leased, respectively.
 Partially offsetting the increase in operating revenues was an increase in
 operating expenses, in particular utilities, real estate taxes and property
 insurance costs.
     Basic funds from operations totalled $3.3 million for the three months
 ended March 31, 2001, compared to $3.2 million earned a year ago.  Per share
 basic funds from operations were $0.41 in both 2001 and 2000 as a result of
 the weighted average shares outstanding for the three months ended March 31,
 2001 increasing to 8,107,000, compared to 7,901,000 in 2000.  The increase in
 shares outstanding is due to new shares being issued through the Company's
 direct stock purchase and dividend reinvestment plan.  This plan generated
 approximately $2 million in new equity capital to the Company over the last
 twelve months.
 
     Retail Property Portfolio
     At March 31, 2001, the Company's retail properties accounted for
 approximately 55% of revenues.  Retail revenues for the three months ended
 March 31, 2001 increased approximately 4% to $7.3 million, compared to
 $7.0 million in 2000.  During the first quarter, the Company renewed and
 leased approximately 25,000 s.f. of retail space with a resulting increase in
 rents of 22%.  In February, 2001 the Company purchased an income producing
 property adjoining its Westward Power Shopping Center, in West Palm Beach,
 Florida.  This property is leased to a national tenant.
     The Company's retail portfolio of sixteen properties contains
 approximately 2.7 million s.f. of gross leasable area, consisting of three
 enclosed regional shopping malls, three power shopping centers and ten
 community shopping centers, located in Florida, Louisiana and Texas.
 
     Multi-Family Property Portfolio
     At March 31, 2001 the Company's apartment properties accounted for 45% of
 the Company's revenues.  The previously mentioned high occupancy level of the
 apartment properties together with market sustained rents resulted in a 4%
 increase in apartment operating revenues to $5.9 million for the three months
 ended March 31, 2001, compared to $5.6 million in 2000.  The apartment
 portfolio consists of fourteen properties, which contain approximately 3,400
 units, located in Florida, Alabama and Louisiana.
     Sidney W. Lassen, Chairman and CEO, commented, "the Company's performance
 in both the retail and apartment portfolios was consistent with our
 expectations.  Management's focus continues to be on growth through the
 development of new properties and the redevelopment of existing properties,
 aimed at achieving our primary objective of creating long-term value.  While
 near-term economic conditions have weakened across the country, we remain
 confident in the long-term quality and resiliency of our portfolio."
 
     Company Profile
     Sizeler Property Investors, Inc. is an equity real estate investment
 trust, which focuses on retail and multi-family properties in the southeastern
 region of the United States.  Sizeler currently owns 30 properties, consisting
 of three enclosed regional shopping malls, three power centers, ten community
 shopping centers, and fourteen apartment communities.  Fifteen of the
 Company's properties are located in Louisiana, ten in Florida, four in
 Alabama, and one in Texas.
 
     Funds From Operations Definition:  Funds from operations (FFO) is a
 measurement of financial performance used in the REIT industry and as
 prescribed by the National Association of Real Estate Investment Trusts is
 defined by the Company as net income, excluding gains or losses from sales of
 property and those items defined as extraordinary under accounting principles
 generally accepted in the United States of America (GAAP), plus depreciation
 on real estate assets, and after adjustments for unconsolidated partnerships
 to reflect funds from operations on the same basis.
     Net Operating Income Definition:  Net Operating Income (NOI) is another
 measurement of financial performance utilized by the Company, and is based on
 the operating revenues and operating expenses directly associated with the
 operations of the real estate properties (excluding depreciation and interest
 expense).
 
     Forward-Looking Statements
     Certain statements in this release are forward-looking and as such are
 based upon the Company's current belief as to the outcome and timing of future
 events.  There can be no assurance that future developments affecting the
 Company will be those anticipated by the Company.  These forward-looking
 statements involve risks and uncertainties (some of which are beyond the
 control of the Company) and are subject to change based upon various factors,
 including but not limited to the following risks and uncertainties: changes in
 the real estate industry and in performance of the financial markets; the
 demand for and market acceptance of the Company's properties for rental
 purposes; the amount and growth of the Company's expenses; the continued
 availability of adequate funding sources to the Company; tenant financial
 difficulties; and in general economic conditions, including interest rates, as
 well as economic conditions in those areas where the Company owns properties;
 possible dispositions of mature properties since the Company is continuously
 engaged in the examination of its various lines of business.  Should one or
 more of these risks or uncertainties occur, or should underlying assumptions
 prove incorrect, the Company's results could differ materially from those
 expressed in the forward-looking statements.
 
 
                              SELECTED FINANCIAL DATA
                                    (unaudited)
 
                                                Quarter Ended March 31
                                                 2001             2000
     Funds from operations                   $ 3,336,000      $ 3,249,000
     Diluted funds from operations (A)       $ 4,634,000      $ 4,547,000
     Net income                              $   663,000      $   626,000
 
     Per share:
       Basic Funds from operations           $      0.41      $     0 .41
       Diluted funds from operations (A)     $      0.36      $      0.36
       Net income                            $      0.08      $      0.08
 
     Weighted average shares outstanding       8,107,000        7,901,000
     Operating Revenue                       $13,156,000      $12,665,000
     Net Operating Income                    $ 7,478,000      $ 7,326,000
     Interest Expense                        $ 3,982,000      $ 3,931,000
     Depreciation and amortization           $ 2,833,000      $ 2,769,000
     Dividends paid                          $ 1,871,000      $ 1,738,000
 
 
                                                      March 31
                                                2001             2000
     Total assets                           $284,049,000     $284,319,000
     Real estate investments at cost        $351,156,000     $341,782,000
     Convertible subordinated debentures    $ 61,878,000     $ 61,878,000
     Shareholders' equity                   $ 66,791,000     $ 69,693,000
 
     (A)  Funds from operations (FFO) is a measurement of financial performance
          used in the REIT industry, and is defined by the Company as net
          income, excluding gains or losses from sales of property and those
          items defined as extraordinary under accounting principles generally
          accepted in the United States of America (GAAP), plus depreciation on
          real estate assets, and after adjustments for unconsolidated
          partnerships to reflect funds from operations on the same basis.  A
          hypothetical calculation of diluted FFO has been made reflecting the
          potential dilution that could occur if the Company's convertible
          subordinated debentures were to convert into common stock and then
          participate in the earnings of the Company.  However, the conversion
          price for the Company's convertible subordinated debentures is $13.00
          per share, which is significantly above the current market price and,
          accordingly, does not require a dilution calculation under GAAP.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87882615
 
 SOURCE  Sizeler Property Investors, Inc.