According to the company's first-quarter financials filed with the Securities and Exchange Commission for the period ended March 31, 2003, Roberts Realty Investors lost $887,000--or a net loss of 17 cents per share--versus a net loss of $733,000--or a loss of 15 cents per share--in the same 2002 period.

Roberts' CFO Charles R. Elliott tells the SEC the net loss was due to depreciation, a non-cash expense, recorded on the company's real estate assets as required by GAAP accounting.

Revenue, expenses and net operating income each increased about 10% during the first quarter. Elliott says the increase in revenue and NOI is due to the completion of the leaseups at the company's Veranda Chase and Addison Place apartment communities. Veranda Chase was 91% leased at the end of the first quarter; Addison Place was 94% leased.

Funds from operations decreased 26.4% from $708,000, or 10 cents per share, to $521,000, or 7 cents per share. Elliott says the decline in FFO was due to interest expense at Veranda Chase "as a result of interest costs being fully expensed during the first quarter of 2003 compared to interest costs being capitalized during the first quarter of 2002 when Veranda Chase was under construction."

Elliott says the first three months of this year "was another difficult quarter for the Atlanta apartment market, which was reflected in our first-quarter financial results." Still, he says, "we are pleased that our physical occupancy showed a slight increase from 91.38% to 91.6%, although our same-property revenue, NOI and average monthly rent posted a modest decline."