Stonehaven Realty Trust and RESoft Incorporated Announce Operating Results For The Fiscal Year Ended December 31, 2000

Significant First Quarter 2001 Activity Also Reported



Apr 02, 2001, 01:00 ET from Stonehaven Realty Trust

    MINNEAPOLIS, April 2 /PRNewswire/ -- Stonehaven Realty Trust (AMEX:   RPP)
 and RESoft Incorporated, its wholly-owned subsidiary, today announced
 operating results for the year ended December 31, 2000.
     Revenues for the 12 months ended December 31, 2000 increased 17.7% to
 $8.1 million from $6.9 million in 1999.  The net loss before preferred share
 dividends was $8.3 million, or $1.86 per diluted share.  The net loss includes
 $6.8 million of non-cash items consisting of depreciation, amortization and
 the disposition of office properties.
     For the fourth quarter, the Company posted total revenue of $2.3 million,
 a 40.6% increase over the same period last year.
 
     Real Estate Operations
     -- Strong Occupancy:  As of December 31, 2000, the Company's real estate
        portfolio was 100% occupied and consisted of the following properties:
        Cold Spring Center, Nicollet Business Center VI, Plymouth Technology
        Park I, Plymouth Technology Park II, Plymouth Technology Park III.
     -- Stable Cash Flow:  For the year ended December 31, 2000, real estate
        portfolio operating cash flow before general and administrative,
        interest, and nonrecurring expenses was $3.3 million.
     -- Thresher Square East and West Disposition:  On December 29, 2000, the
        Company sold the Thresher Square East and West properties in exchange
        for $170,000 in cash, 522,416 Common Shares of the Company and 61,898
        units of the Company's Operating Partnership which were convertible
        into Common Shares of the Company, all of which were cancelled, and the
        release of $6.6 million of debt.
     -- Cold Spring Center:  On March 29, 2001, the Company sold the Cold
        Spring Center in exchange for $8.3 million in cash.  As a result of the
        sale, the Company repaid the debt outstanding on the property of
        $7.3 million.
     -- Capitalization Opportunities:  The Company continues to review and
        analyze valuation and capital appreciation opportunities for its real
        estate portfolio including refinancing, acquisitions, exchanging,
        disposition or other alternatives.
 
     "Our real estate holdings continue to provide stable cash flow to the
 Company," said Duane Lund, CEO.  "This represents the eighth consecutive
 quarter that our portfolio occupancy has been in excess of 95%."
 
     Software Operations
     -- Software Development:  In December of 2000, the Company successfully
        released version 1.0 of REDocs (TM), the first web-based
        content/document management solution designed specifically for the
        needs of real estate owners and managers.  Version 1.5 of REDocs was
        released in March 2001.
     -- New Clients: The release of REDocs led to numerous nationally
        recognized real estate clients for RESoft including AEW Capital
        Management, Ashley Capital, The Rouse Company, Edina Realty, TrizecHahn
        Office Properties, Towle Real Estate Company, Investors Real Estate
        Trust, M&J Wilkow, Ltd., Welsh Companies Inc, LoanAuction Inc., Great
        Lakes REIT, HealthCare Properties, Prentiss Properties, and Panatonni
        Development.
     -- Professional Services:  The Company's Professional Services division
        continues its 10-year track record of delivering information technology
        and document management solutions.  The division currently services
        over 30 clients including The Carlson School of Management, General
        Mills, Robins, Kaplan, Miller and Ciresi and The City of Minneapolis -
        Park and Recreation Board.
     -- Sales and Marketing:  The Company expanded its internal marketing
        efforts and established a formal external reseller and referral
        network.  John Christenson, a 15-year veteran of software sales, joined
        the Company in January to spearhead the internal campaign.  Externally,
        the Company has established sales distribution channels through Venture
        One Real Estate, LLC, Edina Realty, LoanAuction and CCIM, a national
        real estate professional organization with over 6,000 members.  The
        Company's product and services will be featured at various technology
        and real estate trade conferences in Dallas, Las Vegas and Chicago
        during the second quarter of 2001.
     -- Business Development:  The Company initiated a Strategic Alliance
        program during the first quarter 2001 designed to enhance its
        relationships with its existing technology partners and form new
        business partnerships.  Mike Vacanti, a 20-year industry veteran joined
        the Company in March to lead the program.  Current technology
        relationships include Intranet Solutions, Hummingbird Ltd, and iManage
        Incorporated.
     -- Capitalization Opportunities: The Company is aggressively pursuing
        opportunities to expand RESoft through both internal operations as well
        as external financing alternatives.
 
     "With the successful completion of our product and infrastructure
 development phase, RESoft can now focus on numerous growth phase initiatives,"
 said Duane Lund, CEO.  "Web-based document management software is becoming
 increasing popular as organizations focus on bottom-line technology
 initiatives, and RESoft is positioned to capture market share and expand on
 its ten-year track record of delivering document management solutions."
 
     About Stonehaven Realty Trust
     Stonehaven Realty Trust is a real estate and technology company separated
 into two business segments: a commercial real estate segment which acquires,
 owns and operates commercial real estate and a technology segment which
 provides information technology consulting and document management solutions.
 
     Certain matters discussed within this press release may be deemed to be
 forward looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  Although Stonehaven Realty Trust believes the
 expectations reflected in such forward looking statements are based on
 reasonable assumptions, it can give no assurance that its expectations will be
 attained.   Factors that could cause actual results to differ materially from
 current expectations include, but are not limited to, changes in general
 economic conditions, changes in interest rates, legislative and regulatory
 changes, changes in monetary and fiscal policies of the U.S. government,
 including policies of the U.S. Treasury and the Federal Reserve Board, changes
 in local real estate conditions (including rental rates and competing
 properties), changes in industries in which the Company's principal tenants
 compete, the failure to timely lease unoccupied space, the failure to timely
 re-lease occupied space upon expiration of leases, the inability to generate
 sufficient revenues to meet debt service payments and operating expenses, the
 unavailability of equity and debt financing, unanticipated costs associated
 with the Company's acquisitions, potential liability under environmental or
 other laws and regulations, expanding a new line of business, customer demand
 for online services and products, uncertainty of emerging online services,
 ability to meet competition, loss of existing key personnel, ability to hire
 and retain future personnel, the failure of the Company to manage its growth
 effectively and other risks detailed from time to time in the company's SEC
 reports and filings, including its annual report on Form 10-K, quarterly
 reports on Form 10-Q and periodic reports on Form 8-K. The Company assumes no
 obligation to update or supplement forward-looking statements that become
 untrue because of subsequent events.
 
 
                    Stonehaven Realty Trust and Subsidiaries
                      Condensed Consolidated Balance Sheet
 
                                               As of December 31,
                                                     2000
     Assets:
     Investments in real estate, net              $19,724,205
 
     Cash, cash equivalents and restricted cash     2,669,950
     Other assets                                   5,749,892
     Total Assets                                 $28,144,047
 
     Liabilities and Shareholders Equity:
     Liabilities:
       Mortgage loans and notes payable           $13,914,873
       Other liabilities                            3,688,429
     Total Liabilities                             17,603,302
     Minority interest                                 66,325
     Total Shareholders' Equity                    10,474,420
     Total Liabilities and Shareholders' Equity   $28,144,047
 
 
                    Stonehaven Realty Trust and Subsidiaries
                Condensed Consolidated Statements of Operations
 
                                  Three Months               Year End
                            Ended December 31, 2000      December 31, 2000
                                  (Unaudited)
                              2000          1999         2000          1999
     Revenues              $2,301,898    $1,637,613   $8,116,064    $6,896,557
     Expenses:
       Operating expenses   2,649,581     1,582,157    9,753,640     6,410,203
       Depreciation and
        amortization          913,320       241,287    2,582,297     1,210,404
       Nonrecurring expenses   90,100            --      408,415     3,563,383
         Total expenses     3,653,001     1,823,444   12,744,352    11,183,990
     Loss from operations
      before equity in
      income of
      unconsolidated
      subsidiary and loss
      (income) allocated to
      minority interest    (1,351,103)     (185,831)  (4,628,288)   (4,287,433)
     Equity in income of
      unconsolidated
      subsidiary                   --         3,118        2,912        10,269
     Loss (income)
      allocated to
      minority interest       257,578      (221,368)     571,333     2,721,695
     Loss from operations  (1,093,525)     (404,081)  (4,054,043)   (1,555,469)
     Gain (loss) on sales
      of investments in
      real estate          (4,260,910)      686,716   (4,260,910)      686,716
     Income (loss) before
      extraordinary loss
      and cumulative effect
      of change in accounting
      principles           (5,354,435)      282,635   (8,314,953)     (868,753)
     Extraordinary loss            --      (104,625)          --      (482,272)
     Cumulative effect of
      change in accounting
      principle                    --            --           --       (35,565)
     Net income (loss)     (5,354,435)      178,010   (8,314,953)   (1,386,590)
     Preferred Share dividends     --            --     (643,558)           --
     Net income (loss)
      available to Common
      Shareholders        $(5,354,435)     $178,010  $(8,958,511)  $(1,386,590)
     Net income (loss)
      available to Common
      Shareholders per
      Common Share: Basic      $(1.08)       $ 0.13       $(2.01)       $(0.64)
     Net income (loss)
      available to Common
      Shareholders per
      Common Share: Diluted    $(1.08)       $ 0.05       $(2.01)       $(0.64)
 
 
     For more information, contact Robert Bauer of BlueFire Partners,
 612-344-1016, rbauer@bluefirepartners.com , for Stonehaven Realty Trust
 and RESoft, Incorporated, or Duane Lund of RESoft, Inc., 763-398-1125,
 duane@resoftinc.com
 
 

SOURCE Stonehaven Realty Trust
    MINNEAPOLIS, April 2 /PRNewswire/ -- Stonehaven Realty Trust (AMEX:   RPP)
 and RESoft Incorporated, its wholly-owned subsidiary, today announced
 operating results for the year ended December 31, 2000.
     Revenues for the 12 months ended December 31, 2000 increased 17.7% to
 $8.1 million from $6.9 million in 1999.  The net loss before preferred share
 dividends was $8.3 million, or $1.86 per diluted share.  The net loss includes
 $6.8 million of non-cash items consisting of depreciation, amortization and
 the disposition of office properties.
     For the fourth quarter, the Company posted total revenue of $2.3 million,
 a 40.6% increase over the same period last year.
 
     Real Estate Operations
     -- Strong Occupancy:  As of December 31, 2000, the Company's real estate
        portfolio was 100% occupied and consisted of the following properties:
        Cold Spring Center, Nicollet Business Center VI, Plymouth Technology
        Park I, Plymouth Technology Park II, Plymouth Technology Park III.
     -- Stable Cash Flow:  For the year ended December 31, 2000, real estate
        portfolio operating cash flow before general and administrative,
        interest, and nonrecurring expenses was $3.3 million.
     -- Thresher Square East and West Disposition:  On December 29, 2000, the
        Company sold the Thresher Square East and West properties in exchange
        for $170,000 in cash, 522,416 Common Shares of the Company and 61,898
        units of the Company's Operating Partnership which were convertible
        into Common Shares of the Company, all of which were cancelled, and the
        release of $6.6 million of debt.
     -- Cold Spring Center:  On March 29, 2001, the Company sold the Cold
        Spring Center in exchange for $8.3 million in cash.  As a result of the
        sale, the Company repaid the debt outstanding on the property of
        $7.3 million.
     -- Capitalization Opportunities:  The Company continues to review and
        analyze valuation and capital appreciation opportunities for its real
        estate portfolio including refinancing, acquisitions, exchanging,
        disposition or other alternatives.
 
     "Our real estate holdings continue to provide stable cash flow to the
 Company," said Duane Lund, CEO.  "This represents the eighth consecutive
 quarter that our portfolio occupancy has been in excess of 95%."
 
     Software Operations
     -- Software Development:  In December of 2000, the Company successfully
        released version 1.0 of REDocs (TM), the first web-based
        content/document management solution designed specifically for the
        needs of real estate owners and managers.  Version 1.5 of REDocs was
        released in March 2001.
     -- New Clients: The release of REDocs led to numerous nationally
        recognized real estate clients for RESoft including AEW Capital
        Management, Ashley Capital, The Rouse Company, Edina Realty, TrizecHahn
        Office Properties, Towle Real Estate Company, Investors Real Estate
        Trust, M&J Wilkow, Ltd., Welsh Companies Inc, LoanAuction Inc., Great
        Lakes REIT, HealthCare Properties, Prentiss Properties, and Panatonni
        Development.
     -- Professional Services:  The Company's Professional Services division
        continues its 10-year track record of delivering information technology
        and document management solutions.  The division currently services
        over 30 clients including The Carlson School of Management, General
        Mills, Robins, Kaplan, Miller and Ciresi and The City of Minneapolis -
        Park and Recreation Board.
     -- Sales and Marketing:  The Company expanded its internal marketing
        efforts and established a formal external reseller and referral
        network.  John Christenson, a 15-year veteran of software sales, joined
        the Company in January to spearhead the internal campaign.  Externally,
        the Company has established sales distribution channels through Venture
        One Real Estate, LLC, Edina Realty, LoanAuction and CCIM, a national
        real estate professional organization with over 6,000 members.  The
        Company's product and services will be featured at various technology
        and real estate trade conferences in Dallas, Las Vegas and Chicago
        during the second quarter of 2001.
     -- Business Development:  The Company initiated a Strategic Alliance
        program during the first quarter 2001 designed to enhance its
        relationships with its existing technology partners and form new
        business partnerships.  Mike Vacanti, a 20-year industry veteran joined
        the Company in March to lead the program.  Current technology
        relationships include Intranet Solutions, Hummingbird Ltd, and iManage
        Incorporated.
     -- Capitalization Opportunities: The Company is aggressively pursuing
        opportunities to expand RESoft through both internal operations as well
        as external financing alternatives.
 
     "With the successful completion of our product and infrastructure
 development phase, RESoft can now focus on numerous growth phase initiatives,"
 said Duane Lund, CEO.  "Web-based document management software is becoming
 increasing popular as organizations focus on bottom-line technology
 initiatives, and RESoft is positioned to capture market share and expand on
 its ten-year track record of delivering document management solutions."
 
     About Stonehaven Realty Trust
     Stonehaven Realty Trust is a real estate and technology company separated
 into two business segments: a commercial real estate segment which acquires,
 owns and operates commercial real estate and a technology segment which
 provides information technology consulting and document management solutions.
 
     Certain matters discussed within this press release may be deemed to be
 forward looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  Although Stonehaven Realty Trust believes the
 expectations reflected in such forward looking statements are based on
 reasonable assumptions, it can give no assurance that its expectations will be
 attained.   Factors that could cause actual results to differ materially from
 current expectations include, but are not limited to, changes in general
 economic conditions, changes in interest rates, legislative and regulatory
 changes, changes in monetary and fiscal policies of the U.S. government,
 including policies of the U.S. Treasury and the Federal Reserve Board, changes
 in local real estate conditions (including rental rates and competing
 properties), changes in industries in which the Company's principal tenants
 compete, the failure to timely lease unoccupied space, the failure to timely
 re-lease occupied space upon expiration of leases, the inability to generate
 sufficient revenues to meet debt service payments and operating expenses, the
 unavailability of equity and debt financing, unanticipated costs associated
 with the Company's acquisitions, potential liability under environmental or
 other laws and regulations, expanding a new line of business, customer demand
 for online services and products, uncertainty of emerging online services,
 ability to meet competition, loss of existing key personnel, ability to hire
 and retain future personnel, the failure of the Company to manage its growth
 effectively and other risks detailed from time to time in the company's SEC
 reports and filings, including its annual report on Form 10-K, quarterly
 reports on Form 10-Q and periodic reports on Form 8-K. The Company assumes no
 obligation to update or supplement forward-looking statements that become
 untrue because of subsequent events.
 
 
                    Stonehaven Realty Trust and Subsidiaries
                      Condensed Consolidated Balance Sheet
 
                                               As of December 31,
                                                     2000
     Assets:
     Investments in real estate, net              $19,724,205
 
     Cash, cash equivalents and restricted cash     2,669,950
     Other assets                                   5,749,892
     Total Assets                                 $28,144,047
 
     Liabilities and Shareholders Equity:
     Liabilities:
       Mortgage loans and notes payable           $13,914,873
       Other liabilities                            3,688,429
     Total Liabilities                             17,603,302
     Minority interest                                 66,325
     Total Shareholders' Equity                    10,474,420
     Total Liabilities and Shareholders' Equity   $28,144,047
 
 
                    Stonehaven Realty Trust and Subsidiaries
                Condensed Consolidated Statements of Operations
 
                                  Three Months               Year End
                            Ended December 31, 2000      December 31, 2000
                                  (Unaudited)
                              2000          1999         2000          1999
     Revenues              $2,301,898    $1,637,613   $8,116,064    $6,896,557
     Expenses:
       Operating expenses   2,649,581     1,582,157    9,753,640     6,410,203
       Depreciation and
        amortization          913,320       241,287    2,582,297     1,210,404
       Nonrecurring expenses   90,100            --      408,415     3,563,383
         Total expenses     3,653,001     1,823,444   12,744,352    11,183,990
     Loss from operations
      before equity in
      income of
      unconsolidated
      subsidiary and loss
      (income) allocated to
      minority interest    (1,351,103)     (185,831)  (4,628,288)   (4,287,433)
     Equity in income of
      unconsolidated
      subsidiary                   --         3,118        2,912        10,269
     Loss (income)
      allocated to
      minority interest       257,578      (221,368)     571,333     2,721,695
     Loss from operations  (1,093,525)     (404,081)  (4,054,043)   (1,555,469)
     Gain (loss) on sales
      of investments in
      real estate          (4,260,910)      686,716   (4,260,910)      686,716
     Income (loss) before
      extraordinary loss
      and cumulative effect
      of change in accounting
      principles           (5,354,435)      282,635   (8,314,953)     (868,753)
     Extraordinary loss            --      (104,625)          --      (482,272)
     Cumulative effect of
      change in accounting
      principle                    --            --           --       (35,565)
     Net income (loss)     (5,354,435)      178,010   (8,314,953)   (1,386,590)
     Preferred Share dividends     --            --     (643,558)           --
     Net income (loss)
      available to Common
      Shareholders        $(5,354,435)     $178,010  $(8,958,511)  $(1,386,590)
     Net income (loss)
      available to Common
      Shareholders per
      Common Share: Basic      $(1.08)       $ 0.13       $(2.01)       $(0.64)
     Net income (loss)
      available to Common
      Shareholders per
      Common Share: Diluted    $(1.08)       $ 0.05       $(2.01)       $(0.64)
 
 
     For more information, contact Robert Bauer of BlueFire Partners,
 612-344-1016, rbauer@bluefirepartners.com , for Stonehaven Realty Trust
 and RESoft, Incorporated, or Duane Lund of RESoft, Inc., 763-398-1125,
 duane@resoftinc.com
 
 SOURCE  Stonehaven Realty Trust