Net Income (Loss)
Net income for the year-ended December 31, 2012, was approximately $600,000, an improvement of 112.7% compared to a loss of approximately $4.7 million in 2011. Our results in 2012 benefited from approximately $3.3 million or 23.2% in increased revenues and a reduction in direct cost of revenues of approximately $950,000 or 12.0%. Our general and administrative costs increased 21.8% or $1.2 million in 2012 due to a non-cash legal reserve of $723,058, a one-time separation payment to a retiring senior executive of $167,000 and increased stock compensation costs of $794,000. Excluding the non-recurring charges and the increase in non-cash stock compensation costs, our general and administrative costs totaled $4.9 million. Net income for the quarter-ended December 31, 2012, was $61,821, equivalent to $0.01 per share, compared to a net loss of $548,076, or ($0.10) per share, during the same period in 2011.
Income Property Portfolio Update
Property AcquisitionsIn November, we acquired 0.6 acres of property leased to JPMorgan Chase Bank, N.A., pursuant to a ground lease in Chicago for $3.8 million with a remaining term of 28 years and rental rate escalations every 5 years, utilizing $3.7 million of proceeds received in the May 2012 sale of a property in Asheville, North Carolina. In December, we acquired five properties for $12.8 million, leased for an initial term of 15 years to Bank of America, N.A., in Orange County, California. At December 31, 2012, the Company owned 31 single-tenant properties in seven states, with an average remaining lease term of approximately 10.6 years. In addition, the Company owns 2 self-developed multi-tenant properties, with a weighted average occupancy of approximately 86%. Semi-Annual Dividend The Company paid dividends of $0.04 per share in 2012, which was unchanged from 2011. The Company has paid a dividend every year since 1976.