Tarragon Realty Reports 2001 Fourth Quarter and Year-End Results
NEW YORK, April 8 /PRNewswire-FirstCall/ -- Tarragon Realty Investors Inc (Nasdaq: TARR - news), a developer, owner and manager of multi-family and single-family living units, said today that 2001 was a pivotal year for the Company, one in which development activities increased substantially. Revenue for the year was $118.6 million, an increase of 8 percent over the $110 million reported for 2000. Net income for the year ended December 31, 2001, was $1.2 million or $0.08 per common share, down from $7.0 million or $0.81 per share for 2000, principally due to a single gain on sale of a development property to an affiliated partnership.
Chairman & CEO William S Friedman commented, ``Tarragon is engaged in three lines of business, the newest of which is the development and sale of high-end condominiums and single-family homes. We have also stepped up the monetization of some of the properties in our investment portfolio to provide liquidity for development. The Net Asset Value of our Company at the end of 2001 was $275 million, based on appraisals by lenders and opinions of value by Marcus & Millichap for completed properties and the cost of properties under development; that pencils out to about $36 per common share, up from $31.70 at December 31m 2000. This gives us a strong backlog of assets to redeploy as the need arises.''
During 2001 the Company generated $11.6 million in Funds From Operations in its Investment Division, compared to $6.4 million in 2000. Going forward, the Company anticipates that sales of properties of its seasoned investment portfolio will yield more significant profits than in the recent past. That planned redeployment will also fund the increased emphasis on development, such as the 1.2 million square foot, 42-story, Las Olas River House Luxury Condominium and mixed-use development in downtown Fort Lauderdale. During 2001, Tarragon invested $110 million in new development activities, with a planned increase during 2002 to more than $130 million.
Tarragon achieved significant balance sheet improvements during 2001 with notes payable had declined by $26 million. Unrestricted cash and cash equivalents increased to $9 million at year end 2001 from $4.1 million December 31, 2000.
Tarragon's consolidated income statement for 2001 reflects a non-cash charge for depreciation and amortization of $23 million. Tarragon has a $47 million net operating loss carryforward, the value of which is not reflected on its balance sheet. Tarragon's planned property sales and homebuilding activities are expected to monetize the value of the NOL's in future periods. So far in 2002, Tarragon has sold three apartment properties and 40 condominium units, realizing gains in excess of $11.3 million. |
