Net Income (Loss)
Net loss for the quarter ended September 30, 2012 was $556,606, an improvement of 87% compared to a loss of $4,217,992 during the same quarter in 2011. Our results in the quarter benefited from the approximately $615,000 increase in revenues and a reduction in direct cost of revenues of $102,918 or 6%. Our general and administrative costs increased 52% or $636,372 due to a legal reserve of $611,691 and a one-time separation payment to a retiring senior executive of $145,000. Excluding these charges, our general and administrative costs would have declined $120,319. Our net loss for the quarter and net income for the nine months ended September 30, 2012, included non-cash stock compensation expenses of $446,678 and $870,303, respectively. Net income for the nine months ended September 30, 2012, increased to $537,381 equivalent to $0.09 per share, compared to a net loss of $4,158,115, or a $0.73 loss per share, during the same period in 2011.
Real Estate Portfolio Update
Property AcquisitionIn September, we acquired a 1.53- acre land parcel in Phoenix, Arizona, for $1.8 million, which had a 15-year ground lease for a new corporately owned Buffalo Wild Wings restaurant. At September 30, 2012, the Company owned 25 single-tenant properties, with an average remaining lease term of approximately 10.2 years. In addition, the Company owns 2 self-developed multi-tenant properties, with a weighted average occupancy of 85%. Semi-Annual Dividend At its regular meeting of the Board of Directors on October 24, 2012, the Company declared a semi-annual dividend of $0.02 per share, payable on November 28, 2012, to shareholders of record as of November 9, 2012. The Company has paid a dividend every year since 1976. CEO Comments on Operating Results John P. Albright, president and chief executive officer, stated, “We are encouraged by our continual improvement in our operations during the quarter and the addition of an income asset to our portfolio.” Mr. Albright further noted, “Although we experienced a net loss in the quarter, which resulted from a legal reserve recorded in connection with litigation commenced in 2010, non-cash stock compensation expenses for equity award grants to our recently hired senior executive team and a non-recurring expense related to separation costs for a retiring senior executive, we remain cash flow positive.”