American Spectrum Realty Reports Third Quarter Results
American Spectrum Realty, Inc. (AMEX: AQQ) (“the Company”), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today its results for the quarter ended September 30, 2010.
Total revenue for the three months ended September 30, 2010 increased by $1,323,000, or 16.3%, in comparison to the three months ended September 30, 2009. The increase was due to increases in both third party management and leasing revenues and rental revenue.
Third party management and leasing revenue increased by $902,000 for the three months ended September 30, 2010, compared to the three months ended September 30, 2009. Third Party management and leasing revenue for September 30, 2010 was $973,000 compared to September 30, 2009 of $71,000. Third party management and leasing revenue increased by $3,096,000 for the nine months ended September 30, 2010. Third Party management and leasing revenue for the nine months ending September 30, 2010 was $3,208,000 compared to the nine months ending September 30, 2009 of $112,000. The increase was due to an increase in third party management and leasing revenues attributable to the Company’s third party management and leasing contracts.
The impact of the acquisition and expansion of the third party management business of the Company is a dramatic shift that results and will result in an increase in the fee income and other income not dependent on ownership of real property. Specifically, the square footage under management has increased from 3,221,670 square feet in 2009 to 15,466,130 square feet in the first nine months of 2010. In making this shift, the Company has incurred start-up expenses and additional general and administrative expenses that should not be recurring. The Company has taken steps to reduce costs and eliminate duplication that is expected to reduce operating expenses by approximately $350,000 per month.Rental revenue increased $291,000 for the three months ended September 30, 2010 in comparison to the three months ended September 30, 2009. The increase was primarily due to $660,000 in revenue generated from real estate assets acquired in 2010. The increase was in large part offset by an increase in rent concessions and by a decrease in occupancy from properties owned for the full three months ended September 30, 2010 and September 30, 2009. Occupancy, on a weighted average basis, was 83% for the third quarter 2009 compared to 82% for the third quarter 2010.
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