American Land Lease (NYSE:ANL)
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American Land Lease, Inc. Reports Limited Damage from Hurricane
Charley; Limited Impact on Projected FY04 Earnings
CLEARWATER, Fla., Aug. 16 /PRNewswire-FirstCall/ -- American Land Lease, Inc.
(NYSE:ANL) reported that five of its 29 manufactured housing communities were
subject to the damage as a result of Hurricane Charley, but that all residents
and personnel are safe, no homes were lost, and the impact on the communities
appears to be limited to the loss of home amenities such as carports and
screened porches, and certain damage to common area facilities as described
below.
The Company's Blue Heron Pines Community located in Punta Gorda, Charlotte
County, Florida suffered the most damage. All homes survived the storm,
although about 25% sustained damage to their carports and/or screened-in
porches. The community also suffered extensive damage to its landscaping with
numerous downed trees as well as damage to its clubhouse and equipment storage
facilities. Blue Heron Pines is a golf course community and the golf course
suffered the loss of more than one half of its maintenance equipment.
The Company has already begun its cleanup efforts on Sunday -- and expects that
work will continue throughout the coming months. Once assessments are made of
the damage to the common areas and facilities, reconstruction will begin on
those structures as well. Residents' own insurance would be used for damage to
homes and home amenities such as carports and screened-in porches. The Company
will bear the cost of restoring other facilities and equipment.
Blue Heron Pines has represented 12% of the Company's sales volume and as a
consequence of Hurricane Charley, the Company does not expect to close any new
home sales at this community until 1Q05. Until that time all homebuilding and
construction assets in the area are expected to be dedicated to rebuilding the
losses suffered throughout the region. In addition, the next phase of
development at Blue Heron Pines had been forecast for new home sales in Q105
and the Company currently expects a six-month delay in the opening of that
phase, with home sales in Q305.
As no homes were lost during the storm, the Company does not foresee an
interruption in lease revenues. The Company does carry a business interruption
insurance policy that replaces lost lease revenue as a result of an event such
as a hurricane for a period of up to five years, but does not expect to utilize
that policy for this incident. The Company expects that revenues from the golf
course located at Blue Heron Pines will be lower as a result of the damage
caused by Hurricane Charley as well as the impact of the storm on the region.
Much less significant incidents of damage to both residents' homes and
community facilities were reported at the Company's Cypress Greens (Lake
Alfred, FL), Gulfstream Harbor (Orlando, FL), Royal Palm (Haines City, FL), and
Serendipity (Ft. Myers, FL) communities. Management and community response
teams are working on repairing common area facilities and working with
residents to repair damage suffered to the homes.
Additional capital replacement costs to the company of restoring facilities and
equipment damaged or destroyed as a result of the storm is preliminarily
estimated in the range of $150,000 to $250,000, or an additional $0.02 to $0.03
per share. Substantially all of these costs will be incurred this quarter.
The Company still expects to generate FFO and AFFO within the annual target
ranges stated in the August 5, 2004 Second Quarter Earnings Release.
Bob Blatz, President of American Land Lease commented, "I am extremely grateful
that the American Land Lease communities and their residents were able to
survive Hurricane Charley without significant injuries or the loss of any
homes. The sound construction and installation of the homes within our
communities is a tribute to the partnerships that we have with home
manufacturers and our installation crews -- who share our commitment to quality
and excellence. Their high standards, and that of our on-site management
teams, resulted in the high quality of homes that survived the storm.
"We expect to bring all of our communities back to their high standards of
appearance and functionality, as we take this opportunity to evaluate our
current plans so that we can improve our communities wherever practical. I am
particularly proud of our community staffs that have responded in such an
outstanding fashion to this challenge. During my visit to Blue Heron Pines
this past Saturday, I was impressed by the can-do attitude of our homeowners as
they began to work with us to clean up the community and they recounted how
many of them felt perfectly safe in their homes as they waited out the
hurricane. All are as committed as we are to returning the community to its
pre-eminent place among Florida retirement communities. Management made
similar observations as they toured our other affected communities. The future
is as bright as ever for American Land Lease and our residents."
American Land Lease, Inc. is a REIT that holds interests in 29 manufactured
home communities with 6,754 operational home sites, 976 developed expansion
sites, 1,268 undeveloped expansion sites and 129 recreational vehicle sites.
DATASOURCE: American Land Lease
CONTACT: Robert G. Blatz, President, or Shannon E. Smith, Chief
Financial Officer, both of American Land Lease, Inc., +1-727-726-8868
Web site: http://www.americanlandlease.com/