-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LQnFAQMtHnxnDaWU/xeSu3W4clmkJdE/tWONWiTFo/YwPfb0TWMMEhKyECU31X2e txzstUuoL34MXrpL/YESdw== 0000950129-06-000233.txt : 20060112 0000950129-06-000233.hdr.sgml : 20060112 20060112155600 ACCESSION NUMBER: 0000950129-06-000233 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060106 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060112 DATE AS OF CHANGE: 20060112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN SPECTRUM REALTY INC CENTRAL INDEX KEY: 0001121783 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 522258674 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16785 FILM NUMBER: 06527207 BUSINESS ADDRESS: STREET 1: 5850 SAN FELIPE STREET 2: SUITE 450 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 713-706-6200 MAIL ADDRESS: STREET 1: 5850 SAN FELIPE STREET 2: SUITE 450 CITY: HOUSTON STATE: TX ZIP: 77057 8-K 1 h31976e8vk.htm AMERICAN SPECTRUM REALTY, INC. e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) — January 6, 2006
American Spectrum Realty, Inc.
 
(Exact Name of Registrant as Specified in its Charter)
         
Maryland   001-16785   522258674
 
(State or other jurisdiction
of incorporation) 		  (Commission
File Number) 		  (I.R.S. Employer
Identification No.)
5850 San Felipe, Suite 450 Houston, Texas 77057
 
(Address of Principal Executive Offices) (Zip Code)
(713) 706-6200
 
(Registrant’s Telephone Number, Including Area Code)
 
(Former Name or Former Address, If Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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Item 2.01 Completion of Acquisition or Disposition of Assets.
Item 9.01 Financial Statements and Exhibits.
Pro Forma Consolidated Balance Sheet
Pro Forma Consolidated Statement of Operations
Pro Forma Consolidated Statement of Operations
SIGNATURES

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Item 2.01 Completion of Acquisition or Disposition of Assets.
During 2005 and the subsequent interim period through January 6, 2006, American Spectrum Realty, Inc. (the “Company”), as part of its future business plan to exit non-core markets, sold four of its properties for a total sales price of $47.3 million, which represents approximately 25% of the Company’s consolidated assets reported as of December 31, 2004. The Company received net proceeds of $16.5 million, of which $11.1 million is being held in escrow as a source to assist the funding of future acquisitions in tax-deferred exchanges. The sales prices were negotiated amounts between the purchasers, which were unrelated parties, and the Company. The following table provides certain details on each property sold:
                 
Sale   Property       Property    
Date   Name   Location   Type   Purchaser
3/1/2005
   Sorrento I   San Diego, CA   Industrial   Veralliance Properties, Inc.
9/22/2005
   Richardson Plaza   Columbia, SC   Shopping Center   Richardson Station, Inc.
10/27/2005
   The Lakes   Hazelwood, MO   Apartment   KH Lakes Investments, LLC
1/6/06
   Mira Mesa   San Diego, CA   Office   CIP Real Estate

 

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Item 9.01 Financial Statements and Exhibits.
(a)   Financial statements of the business acquired. Not Applicable.
 
(b)   Pro forma information.
The following unaudited pro forma consolidated financial statements are filed with this report:
          Pro Forma Consolidated Balance Sheet as of September 30, 2005
          Pro Forma Consolidated Statements of Operations:
                    Nine Months Ended September 30, 2005
                    Year Ended December 31, 2004
The pro forma consolidated balance sheet presented as of September 30, 2005 reflects the financial position of the Company after giving effect to the sale of the properties assuming the sales occurred on September 30, 2005, and includes adjustments which give effect to events that are directly attributable to the transaction, are factually supportable and have a continuing impact.
The pro forma statements of operations are presented for the year ended December 31, 2004, and the nine months ended September 30, 2005. The pro forma statements of operations present the Company’s operations as if the transactions described in Item 2.01 had occurred on January 1, 2004.

 

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American Spectrum Realty, Inc.
Pro Forma Consolidated Balance Sheet
As of September 30, 2005
                         
            Pro Forma        
(In 000's)   Historical     Adjustments     Pro Forma  
ASSETS
                        
Real estate held for investment
     179,265       (10,089 )(a)     169,176  
Accumulation depreciation
     31,921       (2,450 )(a)     29,471  
     
Real estate held for investment, net
     147,344       (7,639 )     139,705  
Real estate held for sale
     13,453       (13,453 )     —  
Cash and cash equivalents
     848       1,779 (b)     2,627  
Tenant and other receivables, net of allowance for doubtful accounts
     718       —       718  
Deferred rents receivable
     1,688       (161 )(c)     1,527  
Deposits held in escrow
     552       10,609 (d)     11,161  
Investment in management company
     4,000       —       4,000  
Prepaid and other assets, net
     10,234       (359 )(a)     9,875  
     
Total Assets
     178,837       (9,224 )     169,613  
     
LIABILITIES AND STOCKHOLDERS’ EQUITY
                        
Liabilities:
                        
Notes payable, net of premiums
     134,835       (8,997 )(a)     125,838  
Notes payable, litigation settlement
     9,512       —       9,512  
Liabilities related to real estate held for sale
     11,969       (11,969 )(b)    
Accounts payable
     2,734       —       2,734  
Deferred tax liability
     1,109       —       1,109  
Accrued and other liabilities
     6,764       (463 )(a)     6,301  
     
Total Liabilities
     166,923       (21,429 )     145,494  
Minority Interest
     4,913       1,587 (e)     6,500  
Commitments and Contingencies:
                        
Stockholders’ Equity:
                        
Preferred stock
     —       —       —  
Common stock
     16       —       16  
Additional paid in capital
     46,055       —       46,055  
Accumulated deficit
     (36,428 )     10,618 (e)     (25,810 )
Receivable from principal stockholders
     (950 )     —       (950 )
Treasury stock
     (1,692 )     —       (1,692 )
     
Total Stockholders’ Equity
     7,001       10,618       17,619  
Total Liabilities and Stockholders’ Equity
     178,837       (9,224 )     169,613  
     
 
(a)   To eliminate the assets sold and the liabilities assumed or paid at closing for those assets. Based on amounts included in the consolidated balance sheet on September 30, 2005.
 
(b)   To eliminate the assets sold and liabilities paid for those assets classified as held for sale.
 
(c)   Cash received from property sales (net of deposits held in escrow, assumption of debt, repayments of debt and sales costs).
 
(d)   Proceeds from property sales held in escrow which are anticipated to be used for future acquisitions in tax-deferred exchanges.
 
(e)   Assumes sale of properties occurred on September 30, 2005.

 

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American Spectrum Realty, Inc.
Pro Forma Consolidated Statement of Operations
For the Nine Months Ended September 30, 2005
                         
            Pro Forma        
(In 000’s)   Historical     Adj’s (a)     Pro Forma  
REVENUES:
                        
Rental revenue
     17,955       (1,041 )     16,914  
Interest and other income
     334       —       334  
     
Total revenues
     18,289       (1,041 )     17,248  
                         
EXPENSES:
                          
Property operating
     7,791       (614 )     7,177  
General and administrative
     2,745       —       2,745  
Depreciation and amortization
     7,791       (730 )     7,061  
Interest expense
     8,004       (604 )     7,400  
     
Total expenses
     26,331       (1,948 )     24,383  
                         
Net (loss) income before minority interest
     (8,042 )     907       (7,135 )
                         
Minority interest
     555       (113 )     442  
                         
Net (loss) income from continuing operations
     (7,487 )     794       (6,693 )
     
                         
Basic per share data:
                        
Net (loss) income from continuing operations
     (5.08 )     0.53       (4.55 )
     
Number of shares used
     1,472,549       1,472,549       1,472,549  
     
 
(a)   To eliminate the results of operations for the properties sold for the entire period.

 

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American Spectrum Realty, Inc.
Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2004
                         
            Pro Forma        
(In 000's)   Historical     Adj's (a)     Pro Forma  
 
                        
REVENUES:
                        
Rental revenue
     26,923       (4,544 )     22,379  
Interest and other income
     235       —       235  
     
Total revenues
     27,158       (4,544 )     22,614  
 
                        
EXPENSES:
                        
Property operating
     10,582       (2,388 )     8,194  
General and administrative
     4,438       —       4,438  
Depreciation and amortization
     10,433       (1,800 )     8,633  
Interest expense
     11,996       (1,695 )     10,301  
     
Total expenses
     37,449       (5,883 )     31,566  
 
                        
OTHER INCOME (LOSS):
                        
Net loss on extinguishment of debt
     (729 )     613       (116 )
     
Total other income (loss)
     (729 )     613       (116 )
 
                        
Net (loss) income before income tax benefit, minority interest and discontinued operations
     (11,020 )     1,952       (9,068 )
 
                        
Income tax benefit
     2,222       —       2,222  
 
                        
Net (loss) income before minority interest and discontinued operations
     (8,798 )     1,952       (6,846 )
 
                        
Minority interest
     1,299       (244 )     1,055  
     
 
                        
Net (loss) income from continuing operations
     (7,499 )     1,708       (5,791 )
 
                        
Gain on sale of properties (b)
     —       15,543       15,543  
     
Net (loss) income from continuing operations and gain on sale of properties
     (7,499 )     17,251       9,752  
 
                        
Basic per share data:
                        
Net (loss) income from continuing operations
     (4.83 )     1.10       (3.73 )
Gain on sale of properties
     —       10.02       10.02  
     
Net (loss) income from continuing operations and gain on sale of properties
     (4.83 )     11.12       6.29  
     
Number of shares used
     1,551,189       1,551,189       1,551,189  
     
 
                        
 
(a)   To eliminate the results of operations for the properties sold for the entire period.
 
(b)   Assumes the sales of the properties occurred on January 1, 2004. Gain lower than expected to be reported due to the higher basis in the properties, ie depreciation taken from January 1, 2004 through the date of the sales reflected in the pro forma.

 

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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  AMERICAN SPECTRUM REALTY, INC.
 		  
  By:   /s/ William J. Carden    
    Name:   William J. Carden   
    Title:   Chairman of the Board, President, Acting Chief Financial Officer and Chief Executive Officer   
 
Date: January 12, 2006

 

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