Attached files
Exhibit 99.1
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
Presidential Realty Corporation, a real estate investment trust whose shares are
traded on the NYSE AMEX LLC (PDLB) and the over the counter market (PDNLA), is
engaged principally in the ownership of income-producing real estate and in the
holding of notes and mortgages secured by real estate or interests in real
estate.
Results of operations for the three months ended December 31, 2009:
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The Company's net loss for the three months ended December 31, 2009 was $.31 per
share compared to a net loss of $.78 per share for the three months ended
December 31, 2008.
Continuing Operations:
Loss from continuing operations was $.34 per share for the three months ended
December 31, 2009 compared to a loss of $.79 per share for the three months
ended December 31, 2008. This decreased loss of $.45 per share was primarily
attributable to the nonrecurring 2008 write-off of the Company's $1,000,000
($.29 per share) investment in an investment capital fund as a result of the
decline in the value of the investment portfolio held by the fund. In addition,
the Company recorded a $.15 per share additional gain during the three months
ended December 31, 2009 in connection with the settlement of several joint
venture loans. As more fully described in the Company's Form 10-K for the year
ended December 31, 2009, the Company entered into a settlement agreement on
February 27, 2009 with its joint venture partners with respect to defaults by
the joint ventures on three of the Company's mezzanine loans.
Discontinued Operations:
The total income from discontinued operations was $.03 per share for the three
months ended December 31, 2009 compared to total income of $.01 per share for
the three months ended December 31, 2008. The three months ended December 31,
2009 included a gain of $.04 per share from the sale of a cooperative apartment
unit in Riverdale, New York.
Results of operations for the year ended December 31, 2009:
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The Company's net income for the year ended December 31, 2009 was $.88 per share
compared to a net loss of $.28 per share for the year ended December 31, 2008.
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
Continuing Operations:
Loss from continuing operations was $.08 per share for the year ended December
31, 2009 compared to a loss of $1.10 per share for the year ended December 31,
2008. This decrease in loss of $1.02 per share was primarily attributable to a
$1.32 per share gain recorded during the year ended December 31, 2009 in
connection with the settlement of several joint venture loans. In addition, in
the 2008 period, the Company had written off its $1,000,000 ($.27 per share)
investment in an investment capital fund as a result of the decline in the value
of the investment portfolio held by the fund. These decreases in loss were
partially offset by a $.13 per share decrease in interest income earned on notes
receivable, a $.26 per share increase in general and administrative expenses,
and an $.18 per share increase in the Company's share of the loss from joint
ventures.
Interest income earned on notes receivable decreased by $.13 per share primarily
as a result of repayments of notes receivable during the year ended December 31,
2008.
General and administrative expenses increased by $.26 per share primarily as a
result of the impact of the $.24 per share reversal in 2008 of interest expense
previously accrued in accordance with an income tax accounting standard. The
Company had accrued interest related to tax positions for which the Company may
have been required to pay a deficiency dividend to its shareholders and recorded
this interest expense in general and administrative expenses. When the statute
of limitations with respect to these tax positions lapsed in September, 2008,
the Company reversed the interest accrual at that time and therefor general and
administrative expenses were reduced by such reversal.
The $.18 per share increase in the Company's share of the loss from joint
ventures included a $.19 per share loss from the operations of a property in
Puerto Rico in which the Company has a 50% interest.
Discontinued Operations:
The total income from discontinued operations was $.96 per share for the year
ended December 31, 2009 compared to $.82 per share for the year ended December
31, 2008.
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
The year ended December 31, 2009 included a gain of $.95 per share from the sale
of the Crown Court property in New Haven, Connecticut and a gain of $.03 per
share from the sale of a cooperative apartment unit in Riverdale, New York. The
year ended December 31, 2008 included a gain of $.76 per share from the sale of
a package of 42 cooperative apartment units at Towne House in New Rochelle, New
York and a gain of $.02 per share from the sale of a cooperative apartment unit
in New Haven, Connecticut.
Annual Meeting of Stockholders
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As the Company has previously disclosed, it has considered various strategic
alternatives in an effort to maximize shareholder value, including a merger,
consolidation or sale of all or substantially all of the Company's assets in a
single transaction followed by a liquidation of the Company. To date, no
appropriate opportunity has been identified, although the Board of Directors and
management continue to seek and consider potential strategic transactions. At
this time, the Board of Directors expects to request the approval of its
shareholders at the Company's 2010 Annual Meeting, currently scheduled for June
16, 2010, for the sale of all or substantially all of the Company's assets in
one or a series of transactions and the adoption of a plan of liquidation.
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
RESULTS OF OPERATIONS
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2009 2008 2009 2008
Gross revenues (excluding revenues from
discontinued operations) $1,350,000 $1,301,000 $5,512,000 $6,032,000
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Loss from continuing operations ($1,247,000) ($2,689,000) ($543,000) ($4,067,000)
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Income (loss) from discontinued operations (26,000) 26,000 (67,000) 148,000
Net gain from sales of discontinued operations 121,000 - 3,329,000 2,893,000
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Total income from discontinued operations 95,000 26,000 3,262,000 3,041,000
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Net income (loss) (1,152,000) (2,663,000) 2,719,000 (1,026,000)
Add: Net loss from noncontrolling interest 94,000 - 265,000 -
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Net Income (Loss) attributable to
Presidential Realty Corporation ($1,058,000) ($2,663,000) $2,984,000 ($1,026,000)
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Per share of common stock attributable to
Presidential Realty Corporation (basic and diluted):
Loss from continuing operations ($0.34) ($0.79) ($0.08) ($1.10)
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Income (loss) from discontinued operations (0.01) 0.01 (0.02) 0.04
Net gain from sales of discontinued operations 0.04 - 0.98 0.78
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Total income from discontinued operations 0.03 0.01 0.96 0.82
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Net Income (Loss) per Common Share - basic and diluted ($0.31) ($0.78) $0.88 ($0.28)
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Average shares outstanding - basic and diluted 3,382,929 3,422,350 3,381,237 3,683,283
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Cash distributions per common share $ - $0.08 $ - $0.56
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
Additional Information
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In connection with its 2010 Annual Meeting of Stockholders, Presidential Realty
Corporation will file a notice of annual meeting and proxy statement with the
Securities and Exchange Commission ("SEC"). BEFORE MAKING ANY VOTING OR
INVESTMENT DECISION REGARDING THE ANNUAL MEETING, PRESIDENTIAL STOCKHOLDERS ARE
URGED TO READ THE NOTICE OF ANNUAL MEETING AND PROXY STATEMENT AND ANY OTHER
RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION ABOUT PRESIDENTIAL AND THE 2010 ANNUAL
MEETING OF STOCKHOLDERS. Stockholders can obtain free copies of the notice of
annual meeting and proxy statement and other documents filed by Presidential
with the SEC, including the proxy card, when they become available by contacting
Presidential at 180 South Broadway, White Plains, NY 10605, Attention:
Secretary. In addition, documents filed with the SEC by Presidential are
available free of charge at the SEC's website at www.sec.gov. Our proxy
materials will also be available at www.proxyvote.com.
Presidential Realty Corporation, its directors, executive officers and other
employees may be deemed to be participants in the solicitation of Presidential's
security holders in connection with its 2010 Annual Meeting of Stockholders.
Stockholders may obtain information regarding the names, affiliations and
interests of such individuals in Presidential's Annual Report on Form 10-K for
the year ended December 31, 2009 and its proxy statement when it becomes
available.
Forward Looking Statements
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Certain statements in this release that are not historical fact may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including the expectation of the Board of
Directors that it will request the approval of the Company's shareholders for
the sale of all or substantially all of the Company's assets and the adoption of
a plan of liquidation. These statements are based on management's current
expectations and beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. The following factors, among
others, could cause actual results to differ materially from those described in
the forward-looking statements:
o continuing generally adverse economic and business conditions, which,
among other things, (a) affect the demand for residential, retail,
industrial and office space at properties owned by the Company or which
are security for loans made by the Company, (b) affect the availability
and creditworthiness of prospective tenants and the rental rates
obtainable at the properties, and (c) affect consumer demand for the
products offered by the tenants at the malls owned by the joint venture
in which the Company is a member, which adversely affects the operating
results and valuations of such malls;
o continuing adverse changes in the real estate markets, including a
severe tightening of the availability of credit, which adversely affect
the ability of the Company or the joint ventures in which the Company
is a member to sell, or refinance the mortgages on, their properties
and which may also affect the ability of prospective tenants to rent
space at these properties;
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Presidential Realty Corporation
180 South Broadway
White Plains, N.Y. 10605 (914) 948-1300
NEWS
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FOR IMMEDIATE RELEASE
White Plains, New York
March 30, 2010
o the risk that the Board of Directors may not seek shareholder approval
of the sale of all or substantially all of the Company's assets and the
adoption of a plan of liquidation, and if such approval is sought, it
is not obtained;
o general risks of real estate ownership and operation;
o governmental actions and initiatives;
o environmental and safety requirements; and
o failure to comply with continuing listing standards of the NYSE AMEX.
Additional factors that could cause Presidential's results to differ materially
from those described in the forward-looking statements can be found in the
Company's 2009 Annual Report on Form 10-K. Except as required by law, the
Company expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statements contained herein to
reflect any changes in the Company's expectations with regard thereto or change
in events, conditions or circumstances on which any such statement is based.
For further information contact:
Jeffrey F. Joseph, President
Presidential Realty Corporation
at the above address and telephone number
