Tarragon Realty Investors Reports Fourth-Quarter, Fiscal 2002 Year End ResultsRevenues Increase 14 Percent Year-to-Year, While EPS Jump From $0.04 to $0.39; Company Provides Fiscal Year 2003 Guidance
PR NEWSWIRE - March 14, 2003 07:35
NEW YORK, Mar 14, 2003 /PRNewswire-FirstCall via COMTEX/ -- Tarragon Realty Investors Inc. (Nasdaq: TARR), a real estate investor and developer of for-sale housing and rental communities, today announced strong results for its fiscal year ended December 31, 2002. Total annual revenues increased 14 percent over fiscal 2001, from $116.0 million to $132.0 million. During the same period net income rose nearly fivefold, from $1.2 million to $5.5 million, translating into a jump in fully diluted earnings per share from $0.04 in fiscal 2001 to $0.39 in fiscal 2002, an increase of 875 percent.
Commenting on these results, Tarragon's President and Chief Executive Officer William S. Friedman stated, "Creativity in marketing, intense focus on tenant services and cost controls are driving our continuing growth in FFO and property-level net operating income both on a same-store basis and for the Investment Division as a whole. In addition, we have grown the Development and For-Sale pipeline to almost $1 billion in projects nearly complete, under construction or in planning or development. For example, our flagship Las Olas River House luxury high-rise condominium project in Ft. Lauderdale has pre-sold 65 percent of its units with deposits, representing total sales value of $132 million to date. Looking ahead, we expect to see sales of seasoned properties from our investment portfolio and home sales in our For-Sale Housing Division to have an increasingly positive impact on our operating results."
Investment Division net operating income rose 34 percent for the year, from $43.2 million to $57.7 million; same-store apartment NOI rose 5 percent, from $22.7 million to $23.8 million. Investment Division funds from operations for the year likewise rose 34 percent, from $12.0 million to $16.2 million, while same-store apartment FFO posted a 26 percent rise, from $7.6 million to $9.6 million, reflecting the benefit of lower interest rates, higher rents and expense discipline.
Tarragon's balance sheet benefited from these strong operating results, with cash and equivalents of $18.0 million against $9.0 million at December 31, 2001. The Company's estimated net asset value per fully diluted share rose 6 percent to $20.85, up from $19.65 at December 31, 2001. Net asset value per share is calculated based upon third-party appraisals and brokers' opinions of value in the case of stabilized properties, with land and projects under development valued at cost.
In addition, Tarragon provided guidance for fiscal 2003 financial results; the Company is currently estimating fiscal 2003 revenues of $135-140 million, Investment Division FFO of approximately $16-18 million, and diluted EPS in the range of $1.00 to $1.25.
Tarragon's business model increasingly reflects contributions to profits from its For-Sale Housing and Development Divisions. In addition to Las Olas River House, For-Sale Housing highlights include the Pinecrest Village Condominium project, with 72 percent of units sold with deposits for approximately $21 million of sales value; plans to break ground in the second quarter of 2003 on the 131-unit Alta Mar Condominium and Marina project on the Ft. Myers, FL waterfront; and plans to break ground in the third quarter of 2003 on the first, 159-unit phase of the Hoboken, NJ Condominium project. Finally, due to the overwhelming demand at Las Olas, the Company and its joint venture partner are now in zoning approval process for a second, 25-story tower on the Las Olas property, featuring amenities to match those of the original tower, along with 40,000 square feet of high-end retail and restaurant space.
In the Development Division, Tarragon is completing construction and lease-up of the 296-unit Vintage at Vista Lakes in Orlando; and is completing lease-up of the 390-unit Vintage at Abacoa in Jupiter, FL, the 216-unit Vintage at Fenwick Plantation in Charleston, SC and the 342-unit Villa Tuscany, also in Orlando. |
