Roberts Realty Investors, Inc. Issues Earnings Guidance
ATLANTA, Sept. 17 /PRNewswire-FirstCall/ -- Roberts Realty Investors, Inc. (AMEX:RPI) announces that it incurred a loss from operations in August 2004 and
anticipates operating losses to continue for the remainder of 2004 and at least
the first three quarters of 2005. Mr. Greg M. Burnett, the company's CFO,
stated: "We believe the loss of income from the sale of five income-producing
apartment communities in June and the sale of the St. Andrews at the Polo Club
apartment community in July will result in operating losses through the third
quarter of 2005. The cash flow generated from our remaining newer assets is
not currently sufficient to cover our overhead. We intend to use our cash
reserves to fund the operating losses." The company's current portfolio of 722 apartment units consists of Ballantyne
Place in Charlotte, NC, which is in its lease-up phase with 90 of 319 units
leased; and Addison Place, a 403-unit community in Alpharetta, GA. The company
also owns a 39,907 square foot office building in lease-up; a 42,090 square
foot retail center currently under construction; and a 10.9-acre site currently
in the planning and design phase on which it plans to build a 220-unit
apartment community.
Mr. Burnett added: "We expect our performance to improve as we rebuild our
portfolio by redeploying the cash proceeds generated from the sale of the
company's St. Andrews community into existing communities and land that we will
develop; complete the lease-up of our Ballantyne Place community, our office
building and the retail center; and complete the previously announced
refinancing of the second phase of Addison Place in May 2005 which will
increase the company's cash flow." 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
continue to be adversely affected by local economic and market conditions in
the company's markets in Atlanta and Charlotte; the company's markets may
become overbuilt with multifamily apartments; construction costs of a new
community may exceed original estimates; construction and lease-up of the
company's new properties in Atlanta and Charlotte may not be completed on
schedule; the company may not be able to redeploy the net proceeds from the
sale of St. Andrews at the Polo Club to complete a Section 1031 tax-deferred
exchange as it intends; the company may fail to close the Addison Place
refinancing as anticipated; and financing for future development and
construction may not be available or, if available, may not be on favorable
terms. For more information about some of these risks and uncertainties,
please see the section in Roberts Realty's most recent quarterly report on Form
10-Q entitled Management's Discussion and Analysis of Financial Condition and
Results of Operations - Disclosure Regarding Forward-Looking Statements. DATASOURCE: Roberts Realty Investors, Inc.
CONTACT: Greg M. Burnett, Chief Financial Officer of Roberts Realty Investors, Inc., +1-770-394-6000, or Fax, +1-770-551-5914
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