DALLAS, March 13 /PRNewswire-FirstCall/ -- Andrew Rosemore, Chairman of the Board, stated, "We are very pleased that we've already sold six of our Amerihost properties during 2006, leaving us with only nine properties. In addition, two others are under firm contracts and are expected to close within the next 30 days. The market remains strong for our properties and additional offers are currently being considered on almost all of the remaining properties. I'm also pleased with the proceeds realized relative to the book value of these assets. Of the 23 properties sold since 2000, our gains were approximately $5.2 million."
Commencing in 1998, PMC Commercial Trust ("PMC") acquired 30 hotel properties from Arlington Hospitality Inc. ("Arlington"), which it then leased back to a subsidiary of Arlington. During 2005, Arlington filed for bankruptcy, resulting in an additional two financed properties being repossessed. In addition, during 2005, we recorded impairments on our hotel properties of approximately $2.2 million.
Arlington operated substantially all of the remaining properties until mid-January when the Bankruptcy Court approved the rejection of the leases and PMC assumed operations through third party management companies.
As part of PMC's proactive sales effort, only nine of the aggregate 32 properties remain, and we anticipate the disposition of all but three of the hotel properties before the end of 2006. During 2005, we sold six Amerihost properties, resulting in gains of approximately $1.3 million. To date in 2006, we sold six additional properties resulting in gains of approximately $1.8 million.
PMC Commercial Trust is a REIT that originates loans to small businesses secured by real estate and owns various hospitality properties.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "anticipates," "will" or words of similar import. Similarly, statements that described the Company's future plans, objectives or goals are also forward- looking statements. Such forward-looking statements can be subject to certain risks and uncertainties, including the financial performance of the Company, real estate conditions and market valuation of its stock, which could cause actual results to differ materially from those currently anticipated. Although the Company believes the expectations reflected in any forward- looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
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