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COPYRIGHT 2006 PR Newswire Association LLC
HOUSTON, Feb. 28 /PRNewswire-FirstCall/ -- AmREIT , a Houston- based real estate development and operating company, reaffirms and narrows 2005 guidance and announces 2006 guidance estimates and assumptions.
2005 Recap:
AmREIT reaffirms and narrows its previously reported 2005 guidance from $0.68 to $0.72 per class A common share to $0.68 to $0.70 per class A common share. AmREIT will report its 2005 year end and fourth quarter financial results on March 15, 2006, followed by an earnings webcast on March 16, 2006 at 10:00 A.M. Central Time. A link to the webcast is available on the Company's website at http://www.amreit.com/ . During the year, AmREIT acquired three multi-tenant centers valued at approximately $111 million: Uptown Park in Houston, Texas; The Southbank in San Antonio, Texas; and the MacArthur Pad Sites in Dallas, Texas. To fund these acquisitions, the Company raised approximately $109 million in public and private equity.
2006 Estimates and Assumptions:
AmREIT announces 2006 annual FFO estimates of $0.71 to $0.77 per class A share and FFO estimates for the first quarter of 2006 of $0.02 to $0.05 per class A share. A reconciliation of income (loss) to FFO is included in the financial tables accompanying this press release.
AmREIT's business model, and therefore its FFO and financial results are broken down into three distinct businesses. First and foremost, as a real estate development and operating company we construct, develop, acquire, dispose of, broker, lease and manage properties every day for a variety of constituents. Second, we have a portfolio of Irreplaceable Corners(TM), which provides a steady stream of rental income. Finally, we have an asset advisory group that has historically raised private capital for our merchant development partnership funds. These three segments collectively contribute to our overall financial growth and earnings. Our portfolio generates predictable quarterly revenue streams while our development and asset advisory groups have potential for higher returns and growth, but are more volatile and less predictable from quarter to quarter. We anticipate that, as we increase activity within our development and advisory groups over the next year to two years, quarter to quarter earnings and results will be volatile. This quarter to quarter volatility should smooth out as our portfolio equity and our equity under management in our asset advisory group reach a critical mass of around $300 million and $250 million, respectively.
"There will be times, as is the case for the first quarter, where our transactional activities are light and the G&A from our development and asset advisory groups creates a loss for these groups, and reduces our quarterly FFO," said Chad Braun,...
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