American Spectrum Realty, Inc. (NYSE MKT: AQQ) – a real estate investment, management and leasing company – announced today its financial results for the third quarter and nine months period ended September 30, 2013.
Rental revenue decreased by 11% approximately $1.2 million for the three months ended September 30, 2013 compared to the three months ended September 30, 2012. The decrease in rental revenue was primarily due the deconsolidation of Variable Interest Entities (VIE), which resulted in a reduction in rental revenue of approximately $0.4 million. Rental revenue from properties consolidated for the full three months ended September 30, 2013 and 2012 decreased by approximately $0.7 million. This decrease was primarily attributable to our owned properties. The weighted average occupancy of our owned properties was 84% at September 30, 2013. The weighted average occupancy of all consolidated properties was 88% at September 30, 2013.
Third party management and leasing revenue decreased by approximately $0.1 million for the three months ended September 30, 2013 compared to the three months ended September 30, 2012. A reduction of $0.1 million was primarily due to the impact of reduced insurance income which was the result of the non-renewal of insurance policies for lost properties and also reduced third party management fees due to the loss of residential contracts. In April 2013, we were assigned the management of 20 additional self-storage properties. The self-storage properties total over 1.5 million square feet. The assignment is expected to increase the Company’s third party management revenue by approximately $1.0 million annually.
Corporate general and administrative expenses decreased approximately 20% by $0.5 million for the third quarter of 2013 compared to the third quarter of 2012. The decrease was primarily due to a reduction in corporate personnel costs. The decrease was also attributable to other cost cutting measures implemented by management.