Amrep Sells Its Palm Coast Fulfillment Services Business
April 26 2019 - 4:56PM
AMREP Corporation (NYSE: AXR) (the “Company”) today reported that
it has sold its Fulfillment Services business operated by Palm
Coast Data to Studio Membership Services, LLC, a subsidiary of
Irish Studio LLC. The closing of the sale occurred on April 26,
2019.
The buyer paid the Company $1.0 million in cash
on the closing and entered into two long-term triple net leases as
tenant for the Company’s owned facilities in Palm Coast, Florida,
which facilities aggregate approximately 204,000 square feet. The
aggregate annual base rent for the ten year leases starts at $1.9
million in the first year, subject to a one-month waiver of base
rent during the first year, and escalates to $2.5 million in the
tenth year. Prior to the sale, Palm Coast Data distributed to
the Company $3.1 million of cash during the fourth quarter of
fiscal year 2019.
“With the sale of the magazine subscription fulfillment
business, AMREP has completed its exit from the media services
business. We are now focused squarely on our real estate
business to drive shareholder value,” said Edward B. Cloues, II,
Chairman of the Company. “The cash we receive in connection with
the transaction, including under the two leases, will help grow
that business over the next several years.”
Additional details on the sale transaction are
provided in the Company’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on April 26,
2019.
About AMREP – AMREP Corporation, through its
subsidiaries, is a major holder of land and leading developer of
real estate in New Mexico.
Forward-Looking Statements – The Private
Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements made by or on behalf of the Company. The
Company and its representatives may from time to time make written
or oral statements that are “forward-looking”, including statements
contained in this news release. All statements that express
expectations, estimates, forecasts or projections are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. In addition, other
written or oral statements, which constitute forward-looking
statements, may be made by or on behalf of the Company. Words such
as “expects”, “anticipates”, “intends”, “plans”, “believes”,
“seeks”, “estimates”, “projects”, “forecasts”, “may”, “should”,
variations of such words and similar expressions are intended to
identify such forward-looking statements. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and contingencies that are difficult to predict. All
forward-looking statements speak only as of the date of this news
release or, in the case of any document incorporated by reference,
the date of that document. All subsequent written and oral
forward-looking statements attributable to the Company or any
person acting on behalf of the Company are qualified by the
cautionary statements in this section. Many of the factors that
will determine the Company’s future results are beyond the ability
of management to control or predict. Therefore, actual outcomes and
results may differ materially from what is expressed or forecasted
in or suggested by such forward-looking statements. The
forward-looking statements contained in this news release include,
but are not limited to, the use of the Company’s assets in the
future and the expected focus of the Company in the future. The
Company undertakes no obligation to update or publicly release any
revisions to forward-looking statements to reflect events,
circumstances or changes in expectations after the date of such
forward-looking statement, or to make any other forward-looking
statements, whether as a result of new information, future events
or otherwise.
*****
CONTACT: James McMonagle
Vice President and Chief Financial Officer
(610) 487-0904
AMREP (NYSE:AXR)
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