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American Spectrum Realty, Inc. (NYSE MKT: AQQ) (“the Company”), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today its results for the quarter ended June 30, 2013.
Corporate general and administrative expenses decreased by approximately $0.4 million for the second quarter of 2013 compared to the second quarter of 2012. The decrease was primarily due to a reduction in corporate personnel costs. In 2012, the Company relocated its accounting department from Irvine, California to Houston, Texas, thereby reducing annual costs. This restructuring has allowed the Company to reduce redundancy between its two corporate office locations and provide more efficient service to third-party management clients. The decrease was also attributable to other cost cutting measures implemented by management.
Third party management and leasing revenue increased by approximately $0.1 million for three months ended June 30, 2013 in comparison to the three months ended June 30, 2012. The increase was primarily due to an increase in third party management contracts. In April 2013, we were assigned the management of an additional 20 self-storage properties. The self-storage properties total over 1.5 million square feet and are located across seven states. The assignment is expected to increase the Company’s third party management revenue by approximately $1.0 million annually.
Rental revenue decreased by approximately $1.2 million for the three months ended June 30, 2013 compared to the three months ended June 30, 2012. The decrease in rental revenue was primarily due the deconsolidation of VIEs, which resulted in a reduction in rental revenue of approximately $1.4 million. Rental revenue from properties consolidated for the full three months ended June 30, 2013 and 2012 increased by approximately $0.2 million compared to the three months ended June 30, 2012. This increase was primarily attributable to our owned properties. The weighted average occupancy of our owned properties was 84% at June 30, 2013. The weighted average occupancy of all properties consolidated was 88% at June 30, 2013.