|Years Ended December 31,|
|Net loss attributable to the Company||$||(8,037)||$||(8,272)|
|Depreciation and amortization from discontinued operations||-||456|
|Gain on sale of discontinued operations||4,315||-|
|Deferred income tax benefit||(5,108)||(5,521)|
|Depreciation and amortization attributable to the Company’s owned properties||13,334||14,704|
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 year ended December 31, 2010. Rental revenue for the year ended 2010 increased by $18.6 million, or 56% in comparison to the year ended December 31, 2009. The increase in rental revenue was primarily due to the consolidation of variable interest entities (“VIE”) which resulted in additional rental revenues of approximately $20.0 million. Rental revenue for owned properties decreased by approximately $1.4 million, principally due to an increase in rent concessions. The decrease in rental revenue for owned properties was also attributable to a decrease in occupancy. The weighted average occupancy of the Company’s owned properties decreased from 82% at December 31, 2009 to 81% at December 31, 2010. Third party management and leasing revenue increased $3.5 million for the year ended December 31, 2010 when compared to the year ended December 31, 2009. 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 Company’s net loss attributable to common stockholders for the year ended December 31, 2010 was $8.3 million, or $2.76 per share, compared to a net loss attributable to common stockholders of $8.5 million, or $2.94 per share, for the year ended December 31, 2009. The net loss for 2010 included an impairment charge of $3.4 million and income from discontinued operations of $2.8 million. The Company’s Funds From Operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts, was ($739,000) for the year ended December 31, 2010 as compared to $1,367,000 for the year ended December 31, 2009. The Company’s business is the ownership, operation and management of real estate. It believes that FFO is helpful to investors when measuring operating performance because it excludes various items that are considered in the determination of net income or loss that do not relate to or are not indicative of operating performance, such as gains or losses from sales of operating properties and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. The following table reflects the reconciliation of FFO to net loss attributable to the Company, the most directly comparable Generally Accepted Accounting Principles measure, for the years ended December 31, 2010 and 2009 (in thousands):
The decrease in FFO for the year ended December 31, 2010 compared to the year ended December 31, 2009 was in large part attributable to the Evergreen acquisition, costs associated with the acquisition of 2620-2630 Fountain View and other business development costs.