8-K

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

May 8, 2006

Date of Report (Date of earliest event reported)

American Spectrum Realty, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-16785	52-2258674
(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):

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

On May 8, 2006, American Spectrum Realty, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1.

Item 9.01  Financial Statements and Exhibits.

(c) Exhibits.

Exhibit	Description
99.1	Press Release dated May 8, 2006

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 and Chief Executive Officer

Date: May 8, 2006

EX-99.1

Exhibit 99.1

AMERICAN SPECTRUM REALTY, INC. William J. Carden, Chairman, President and CEO 713-706-6200 FOR IMMEDIATE RELEASE

AMERICAN SPECTRUM REALTY REPORTS FIRST QUARTER RESULTS

Net Income of $17.2 Million Generated

Rental Revenue Increased 12.3% for Quarter

Houston, TX, May 8, 2006 - American Spectrum Realty, Inc. (“the Company”) (AMEX:AQQ), a real estate investment and management company located in Houston, Texas, announced today its results for the first quarter of 2006.

Net income for the quarter ended March 31, 2006 was $17.2 million, or $12.37 per share, compared to a net loss of $199,000, or $.13 per share, for the first quarter of 2005. The net income recorded during the three months ended March 31, 2006 was primarily attributable to income from discontinued operations of $19.3, which included a gain on the sale of three properties. The three sales consisted of the Company’s two remaining properties located in San Diego, California, an office and an industrial property. The third sale was an office property located in Palatine, Illinois. During the three months ended March 31, 2005, income from discontinued operations amounted to $1.7 million, which was primarily due to a gain recognized on the sale of Sorrento I in San Diego, California. Sorrento I was unoccupied at the time of the sale.

Rental revenue increased 12.3% for the quarter ended March 31, 2006 compared to the same quarter in the prior year. This increase was attributable to $484,000 in revenue generated from four office properties acquired during the quarter, in addition to $126,000 in higher revenues from properties owned on March 31, 2006 and March 31, 2005 (“Same Properties”). This increase in Same Properties revenue was primarily due to higher rental rates. The weighted average occupancy of properties held for investment by the Company was 87% at March 31, 2006 and March 31, 2005.

Net proceeds of $11.3 million (net of debt repayments and sales costs) were generated as a result of the three first quarter sales. Approximately $4.3 million of these proceeds were used to assist with the funding of one of the Company’s first quarter acquisitions. The Company acquired a total of four office properties during the first quarter of 2006. All four properties are located in Houston, Texas, one of the Company’s core-markets. As of March 31, 2006, the Company had deposits of approximately $4.5 million held in escrow in which the Company anticipates the majority will be used as a source of funding for future acquisitions.

Results for the first quarter 2006 and 2005 reflect the following non-cash items (in thousands). These amounts include non-cash items from discontinued operations, which are reported separately on the Company’s consolidated statements of operations.

	Three Months Ended March 31,
	2006			2005
Non-Cash Charges:
Depreciation and amortization	$	2,536		$	2,792
Minority interest		2,647			-
Deferred rental expense		11			-
Stock-based compensation		8			-
Deferred compensation expense		-			19
Total Non-Cash Charges		5,202			2,811
Non-Cash Items:
Amortization of loan premiums		(114	)		(133	)
Deferred rental income		-			(50	)
Minority interest		-			(29	)
Interest on receivable from principal stockholders		-			(13	)
Total Non-Cash Items		(114	)		(225	)

American Spectrum Realty, Inc. is a real estate investment and management company that owns 23 office, industrial and retail properties aggregating approximately 1.9 million square feet in California, Texas, Arizona, South Carolina and the Midwest. Publicly traded on the American Stock Exchange since November 2001, American Spectrum Realty’s business plan focuses on expansion of office and industrial property investments in California, Texas and Arizona.

Certain matters discussed in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company’s past and current filings with the U.S. Securities and Exchange Commission.

- Financial Tables Follow -

AMERICAN SPECTRUM REALTY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

	Three Months Ended March 31,
	2006			2005
REVENUES:
Rental revenue	$                            5,577			$                            4,967
Interest and other income	74			49
Total revenues		5,651			5,016
EXPENSES:
Property operating expense		2,496			1,962
General and administrative		920			920
Depreciation and amortization		2,461			2,032
Interest expense		2,185			2,248
Total expenses		8,062			7,162
Net loss before minority interest		(2,411	)		(2,146	)
Minority interest (share from continuing operations)		321			29
Net loss from continuing operations		(2,090	)		(1,878	)
Discontinued operations:
Loss from discontinued operations		(65	)		(542	)
Gain on sale of discontinued operations		22,349			2,460
Minority interest		(2,968	)		(239	)
Income from discontinued operations		19,316			1,679
Net income (loss)	$	17,226		$	(199	)
Basic and diluted per share data:
Net loss from continuing operations	$	(1.50	)	$	(1.25	)
Income from discontinued operations		13.87			1.12
Net income (loss)	$	12.37		$	(0.13	)
Basic weighted average shares used		1,392,089			1,499,419

	March 31, 2006		December 31,  2005
Real estate held for investment, net of accumulated depreciation	$	162,136	$	126,711
Cash		1,215		300
Total assets		183,256		169,185
Notes payable, net of premiums		141,812		114,543
Total liabilities		149,193		155,035
Total stockholders’ equity		26,280		9,014