WASHINGTON, Aug. 15 /PRNewswire-FirstCall/ -- Bresler & Reiner, Inc. (Pink Sheets: BRER.PK) reported funds from operations for the six months ended June 30, 2008 of $4,417,000 or $0.81 per common share compared to $6,929,000 or $1.27 per common share for the same period in 2007. For the three months ended June 30, 2008, the Company reported funds from operations of $2,502,000 or $0.46 per common share compared to $2,509,000 or $0.46 per common share for the same period in 2007.
The Company reported a net loss of $9,537,000 or ($1.74) per common share on revenues of $47,553,000 for the six months ended June 30, 2008. For the comparable period in 2007, the Company reported net income of $41,000 or $0.01 per common share on revenues of $43,962,000.
For the three months ended June 30, 2008 the Company reported a net loss of $4,532,000 or ($0.83) per common share on revenues of $23,059,000. For the comparable period in 2007, the Company reported a net loss of $3,742,000 or ($0.68) per common share on revenues of $22,196,000.
Sidney M. Bresler, Chief Executive Officer, said the net loss for both the three and six month periods ended June 30, 2008 were due to large amounts of depreciation and amortization expense related to the Company's depreciable properties. Mr. Bresler added that the Company's unrestricted cash and cash equivalents, including investments in principally available-for-sale securities, totaled $31,038,000 as of June 30, 2008.
Funds from operations is defined by the Company as net income computed in accordance with accounting principles generally accepted in the United States, excluding gains and losses, net of tax, on sales of depreciable property, plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The following table reflects the Company's funds from operations for the six months ended June 30, 2008 for each of the Company's reportable segments:
Developed and Residential and Undeveloped Commercial Commercial Land Condominiums Rental Total operating revenues $210,000 $3,514,000 $33,480,000 Cost of development sales (370,000) (3,435,000) Operating expenses (16,074,000) Interest expense (364,000) (391,000) (12,899,000) Income (loss) from investments in joint ventures 459,000 51,000 Minority interest (18,000) (96,000) 122,000 General and administrative expenses and other 6,000 (476,000) Interest income Tax benefit (provision) 209,000 (22,000) 2,900,000 Funds From Operations $(333,000) $35,000 $7,104,000 Residential Rental Hospitality Corporate Total Total operating revenues $8,820,000 $1,382,000 $147,000 $47,553,000 Cost of development sales (3,805,000) Operating expenses (4,786,000) (942,000) (21,802,000) Interest expense (4,160,000) (148,000) (3,222,000) (21,184,000) Income (loss) from investments in joint ventures (862,000) 94,000 (258,000) Minority interest 1,058,000 1,066,000 General and administrative expenses and other 133,000 (3,564,000) (3,901,000) Interest income 545,000 545,000 Tax benefit (provision) 841,000 (48,000) 2,323,000 6,203,000 Funds From Operations $1,044,000 $244,000 $(3,677,000) $4,417,000 About the Company:
Bresler & Reiner, Inc. owns and develops land and residential, commercial and hospitality properties, principally in the Washington, D.C.; Wilmington, Delaware; Philadelphia, Pennsylvania; Houston, Texas; Baltimore, Maryland, Maryland and Delaware Eastern Shore, and the Tampa and Orlando, Florida metropolitan areas.
Supplemental Information:
The Company's Quarterly and Annual Financial Reports are available at http://www.breslerandreiner.com/ or may be requested in e-mail or hard copy formats.
This press release may contain forward-looking statements that are based on current estimates, expectations, forecasts and projections about us, our future performance, the industry in which we operate, our beliefs, and management's assumptions. In addition, other written or oral statements that constitute forward-looking statements may be made by or on behalf of us. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," or "would be," and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. These risks and uncertainties include: our ability to compete effectively; our exposure to the credit risks of our tenants; our ability to recruit and retain key personnel; adverse changes in the local or general economy and market conditions; our ability to obtain necessary governmental permits and approvals; our ability to complete development projects in a timely manner and within budget; our ability to secure tenants for our projects and properties; our ability to sustain occupancy levels at our properties through keeping existing tenants and securing new ones; our ability to secure tenants for the residential and commercial properties that we develop; changes in the interest rate environment which will affect our ability to obtain mortgage financing on acceptable terms; future litigation; and changes in environmental health and safety laws.
