The company reported a net loss allocable to common stockholders of $5.2 million, or $0.44 loss per share, which includes depreciation and amortization of $8.7 million, compared to a net loss allocable to common of $5.4 million, or $0.44 loss per share, for the second quarter of 2002, which included depreciation and amortization of $7.9 million.

For the six-month period, revenues were $57 million, which included a loss of $0.9 million from unconsolidated affiliates, down from revenues of $66.2 million in the prior period, which included $9.7 million in gains on sales from unconsolidated affiliates. The six-month net was a loss allocable to common of $4.1 million, or $0.35 loss per share, including depreciation and amortization of $15.9 million, versus a net profit allocable to common of $3.0 million, or $0.25 per share, in the prior period, which included depreciation and amortization of $14.6 million. Friedman also noted that the second-quarter and six-month losses were lower than the non-cash depreciation and amortization charges for the same periods. Depreciation and amortization in the first half of 2003 increased by $1.8 million due to completion of several development properties and write- offs of deferred borrowing costs in connection with loan refinancings.

Same-store Investment Division net operating income fell 6% from the prior quarter, to $11.2 million, and fell 4% for the six-month period, to $22.5 million, due mostly to increased marketing, leasing and weather-related expenses. Investment Division same-store funds from operations declined 12% for the quarter, to $3.9 million, and fell 5% for the six-month period to $8.6 million, due primarily to higher write-offs of deferred borrowing costs and prepayment penalties related to refinancings.

Tarragon has a current backlog of 320 contracts and reservations, representing over $170 million in sales.

It's been a busy summer for Tarragon, which controls approximately 16,000 apartments and 1.5 million sf of commercial space, valued at more than $1 billion. First, the company closed on a $104 million first mortgage pool financing with GE Real Estate, secured by seven apartment properties in Texas, Tennessee and Florida. In late June, it purchased Tuscany on the Intracoastal, a recently completed 286-unit luxury apartment community on the water in Boynton Beach, FL, for $45.5 million from Altman Development Co. And in July, Tarragon acquired Guardian Equities Inc. based in Orlando, FL, and a controlling interest in nine affiliated investment and development partnerships, from Guardian founder and national real estate developer Alan Ginsburg.

Earlier this year, Tarragon made a number of executive appointments to expand activities in it three divisions--investment, development and for-sale housing. While Tarragon maintains its core emphasis with concentrations in Florida, Connecticut and Texas, the company is making inroads into new market areas including New Jersey.