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JENKINTOWN, PA-The day after announcing an agreement to a $3.4-billion buy-out by Gramercy Capital Corp., American Financial Realty Trust issued its third-quarter financials. The report shows that it has significantly curbed its losses in comparison with the same quarter a year ago.
The company posted a net loss of $22.8 million, compared with $56.2 million for the parallel prior-year quarter. Third-quarter revenue fell to $101.9 million, down from $107.7 million for the year-ago quarter, but up from $100.7 million for the quarter ended June 30, 2007.
AFR also said its board had appointed David Nettina sole president as well as CFO and chief real estate officer. Nettina had been sharing the president's post with Glenn Blumenthal and Edward Matey since the death of former CEO Hal Pote this June. Blumenthal now resumes his positions as EVP and COO, and Matey continues as EVP and general counsel.
Adjusted funds from operations were $17.4 million or $0.13 a share, down from $0.05 a share in this year's second quarter. The decrease reflects a one-time payment of $5 million to Pote's estate plus a $1.7-million expense in discontinued operations. Without those one-time costs, AFFO would have been $0.19 a share, according to the financial report.
In keeping with its strategy of disposing of non-core assets, AFR sold 57 properties and one parcel for an aggregate of $44.2 million during the quarter. It acquired five bank branches for $4.9 million. It leased 118,000 sf at an average rent of $19.47 per sf.
The company's previously scheduled third-quarter conference call was cancelled because of a Nov. 5 joint conference call with Gramercy, announcing the merger agreement. Following the Nov. 6 release of its third-quarter financial report, AFR stock on the NYSE closed at $7.79 a share. This compares with a 52-week high of $12.08 on Dec. 6, 2006; a 52-week low of $6.17 on this Aug. 16, and the approximate value of $8.43 a share in the Gramercy offer.
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