Hallwood Realty Partners (AMEX:HRY)
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Hallwood Realty Partners, L.P. Announces 2003 Financial Results
DALLAS, March 9 /PRNewswire-FirstCall/ -- Hallwood Realty Partners, L.P.
("HRP") announced today its financial results for the year ended December 31,
2003. HRP had net income of $2,806,000 ($1.68 per unit) for 2003, as compared
to $6,931,000 ($4.16 per unit) for 2002. The net results included $15,222,000
and $14,897,000 of non-cash depreciation and amortization expense in 2003 and
2002, respectively.
Total revenues decreased $1,283,000, or 1.7%, in 2003 from last year as a result
of a decrease in revenue from construction services of $2,458,000, partially
offset by increased revenue from property operations of $1,175,000. Construction
service revenues decreased due to fewer construction service projects completed
in 2003; by their nature, the demand for and size of construction service
projects and the associated revenues can vary significantly from time to time.
Revenue from property operations includes increases in rental income and tenant
expense recoveries. Rental income was affected by a slight increase in overall
rental rates of 1.9% and a decline in average occupancy between the years from
87.4% to 85.9%.
Total expenses were $7,954,000, or 11.8%, more in 2003 thanin 2002 due to
increases in litigation costs of $7,108,000, general and administrative expenses
of $1,498,000, property operating expenses of $911,000, depreciation and
amortization expense of $325,000, and interest expense of $263,000, partially
offset by a decrease in parking, construction and tenant services expense of
$2,151,000. General and administrative expenses were higher due to increases in
certain professional fees, legal fees, director fees, travel costs, and director
and officer liability insurance. Property operating expenses were higher
primarily due to increases in utilities, real estate taxes, and property and
liability insurance. Depreciation and amortization increased primarily due to
depreciation for the newly completed building at the Executive Park property in
Atlanta, Georgia. Interest expense increased primarily due capitalization of
construction interest in 2002. Construction service expenses decreased due to
fewer construction service projects completed in 2003; by their nature, the
demand for and size of construction service projects and the associated expenses
can vary significantly from time to time.
HRP had net income of $4,250,000 ($2.55 per unit) for the fourth quarter of
2003, compared to net income of $672,000 ($0.40 per unit) for the 2002
comparable fourth quarter. The net results included $3,747,000 and $3,764,000
of non-cash depreciation and amortization expense in 2003 and 2002 fourth
quarters, respectively.
This information contained in this newsrelease has been derived from financial
information to be included in Form 10-K filed with the Securities and Exchange
Commission.
The following table sets forth selected unaudited financial information (in
thousands, except per unit amounts):
Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002
Total revenues $18,059 $18,738 $72,456 $73,739
Total expenses 19,223 18,235 75,399 67,445
Income (loss) before proceeds
from litigation and interest
income (1,164) 503 (2,943) 6,294
Proceeds from litigation (A) 5,123 --- 5,123 ---
Interest income 291 169 626 637
Net income $ 4,250 $ 672 $ 2,806 $ 6,931
Earnings per unit - basic:
Net income $ 2.64 $ 0.42 $ 1.74 $ 4.32
Earnings per unit - assuming
dilution:
Net income $ 2.55 $ 0.40 $ 1.68 $ 4.16
Weighted average units
outstanding -
Basic 1,594 1,590 1,593 1,590
Assuming dilution 1,653 1,649 1,651 1,648
(A) In December 2003, HRP recorded the final judgment in the Gotham
lawsuit. Proceeds from litigation of $5,123,000 represents the
amount allocated to operations. The balance of the judgment was
recorded to partners' capital.
HRP, a publicly traded Delaware limited partnership, is engaged in the
acquisition, ownership and operation of commercial real estate assets.
Certain statements in this news release may constitute "forward-looking
statements" which are subject to known and unknown risks and uncertainties
including, among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual results to
differ materially from results implied by such forward-looking statements. These
risks and uncertainties are described in greater detail in HRP's periodic
filings with the SEC.
DATASOURCE: Hallwood Realty Partners, L.P.
CONTACT: Investor Relations of Hallwood Realty Partners, L.P.,
+1-214-528-5588
Web site: http://www.hallwood.com/hrp