Total revenue for the quarter reached $109.2 million, up from $102.9 million at the same time a year ago. The company trimmed full-year FFO losses to $20.6 million in 2006, compared with an FFO loss of $93.6 million in 2005.
Harold Pote, who was named chairman and CFO in August, authored the strategy, which called for the sale of up to $2 billion in assets, decreased debt, cost reductions and increased transparency in financial reporting. During a fourth-quarter conference call he said that, following an asset-by-asset review, 237 in the held-for-sale category, are expected to be sold by year end, although 125 of the sales will not be executed until the last half of 2007. The sales are valued at an aggregate of $575 million.
Of the 911 properties not held for sale, Pote said 646 are core, either fully triple-net leased or more than 90% occupied. Forty-six are vacant branches, which, if not leased within a reasonable time, will also be sold.
"We have turned into a true asset management model," he said. The challenge and opportunity rests with vacancies in the remaining properties, where asset managers have been assigned responsibility to "do whatever it takes to move the bottom line." Of those, 26 are larger properties that aggregate more than one million sf, which accounts for "half of the upside opportunity," he said.
During fourth quarter, AFR sold 27 properties for an aggregate of $917.2 million. It acquired 43 properties for $55.8 million. Among them was a 179,000-sf Sterling Bank portfolio, fully leased to the bank. The Sterling deal, Pote said, is the kind of triple-net sale/leaseback acquisitions on which AFR plans to build.
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