SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
August 30, 2002
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Date of Report (Date of Earliest Event Reported)
AMERICAN REALTY INVESTORS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Nevada 1-15663 75-2847135
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(State of Incorporation) (Commission (IRS Employer
File No.) Identification No.)
1800 Valley View Lane, Suite 300, Dallas, TX 75234
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (469) 522-4200
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
In 2002, American Realty Investors, Inc. ("ARI") has sold a significant amount
of its properties, as follows:
Sale Units/ Sales Gain/(Loss) % of ARI's
Date Property Location Sq.Ft./Acres Price on Sale Assets
--------- ------------------- --------------------- --------------- ---------- ------------ -----------
Apartments (dollars in Thousands)
01/18/02 Villas Plano, TX 208 Units $ 8,525 $ 5,615 0.29%
03/20/02 Mallard Lake Greensboro, NC 336 Units 14,400 --/(1)/ 0.42%
05/02/02 Stonebridge Florissant, MO 100 Units 4,340 3,081 0.14%
06/13/02 Oak Hill Tallahassee, FL 92 Units 3,200 527 0.28%
06/24/02 Regency on Kennedy Tampa, FL 78 Units 3,200 (1,458) 0.54%
07/11/02 Woodsong Smyrna, GA 190 Units 9,200 7,028 0.17%
07/31/02 Valley Hi Tallahassee, FL 54 Units 1,452 435 0.11%
07/31/02 White Pines Tallahassee, FL 85 Units 764 (48) 0.09%
08/30/02 Morning Star Tallahassee, FL 82 Units 2,217 641 0.18%
08/30/02 Stonegate Tallahassee, FL 83 Units 1,785 (120) 0.23%
Commercial
03/08/02 Oaktree Village Lubbock, TX 45,623 Sq.Ft. 912 -- 0.21%
06/26/02 Centura Tower Farmers Branch, TX 410,901 Sq.Ft. 50,000 -- 6.01%
Land
01/11/02 Thompson II Dallas County, TX 0.2 Acres 21 (11) 0.00%
02/26/02 Katrina Palm Desert, CA 2.1 Acres 1,323 978 0.03%
03/08/02 Lakeshore Villas Harris County, TX 16.9 Acres 1,499 -- 0.17%
03/08/02 Rasor Plano, TX 24.5 Acres 1,211 -- 0.16%
03/08/02 Vista Ridge Lewisville, TX 10.0 Acres 1,525 401 0.13%
04/10/02 Mason Goodrich Houston, TX 7.9 Acres 672 269 0.05%
05/03/02 Mason Goodrich Houston, TX 10.3 Acres 1,444 895 0.06%
06/13/02 Hollywood Casino Farmers Branch, TX 42.8 Acres 16,987 -- 1.25%
06/26/02 Marine Creek Ft. Worth, TX 54.2 Acres 3,700 -- 0.31%
06/26/02 Mason Goodrich Houston, TX 18.0 Acres 2,790 -- 0.11%
06/26/02 Monterrey Riverside, CA 65.0 Acres 4,625 -- 0.60%
06/26/02 Nashville Nashville, TN 16.6 Acres 1,890 -- 0.12%
08/07/02 Elm Fork Denton County, TX 14.5 Acres 2,745 1,615 0.12%
08/16/02 Elm Fork Denton County, TX 14.2 Acres 1,526 491 0.12%
--------- -------- -----
$ 141,953 $ 20,339 11.90%
========= ======== =====
Sale
Date Purchaser
--------- ----------------------------------------------------------
Apartments
01/18/02 First Guaranty Exchange Company
03/20/02 Grand Lagoon Associates, Ltd., Park Avenue Associates,
Ltd., Governor's Square Associates, Ltd., IG Ashford
Regency Partners, L.P.; ISV Greenbriar Associates,
Ltd., ART Westwood Associates, Ltd.
05/02/02 Florissant Townhomes, Inc.
06/13/02 Oak Hill Apartments, LLC
06/24/02 Regency Property Group, LLC
07/11/02 Woodsong Apartments Partners, L.P.
07/31/02 Villas San Carlo, LLC
07/31/02 Villas San Carlo, LLC
08/30/02 Villas San Carlo II, LLC
08/30/02 Villas San Carlo II, LLC
Commercial
03/08/02 Transcontinental Realty Investors, Inc. ("TCI")
06/26/02 TCI
Land
01/11/02 City of Dallas, Texas
02/26/02 BP West Coast Products, LLC
03/08/02 TCI
03/08/02 TCI
03/08/02 Lewisville Independent School District
04/10/02 Glen R. Ginter, DDS
05/03/02 Metropolitan Transit Authority
06/13/02 TCI
06/26/02 TCI
06/26/02 TCI
06/26/02 TCI
06/26/02 TCI
08/07/02 Lewisville Independent School District
08/16/02 Alta Carrollton, L.P.
(1) The accounting treatment of this transaction has been changed from that
described in the March 31, 2002 and June 30, 2002 ARI Quarterly Reports on
Form 10-Q, eliminating the gain. Both Quarterly Reports on Form 10-Q will
be amended.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Proforma statements of operations are presented for the year ended December 31,
2001, and the six months ended June 30, 2002. The proforma statements of
operations present ARI's operations as if the transactions described above had
occurred at January 1 of each of the periods presented. A proforma balance sheet
as of June 30, 2002, is also presented. The proforma balance sheet presents the
property sales described above, as if they had occurred at January 1, 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET
JUNE 30, 2002
White Morning
Actual/(1)/ Woodsong/(2)/ Valley Hi/(2)/ Pines/(2)/ Star/(2)/
----------- ------------- -------------- ---------- ----------
(dollars in thousands)
Assets
Real estate held for investment ................... $ 442,583 $ (4,703) $ (926) $ (748) $ (1,346)
Less - accumulated depreciation ................... (112,614) 3,455 94 72 152
---------- ---------- --------- --------- ---------
329,969 (1,248) (832) (676) (1,194)
Real estate held for sale ......................... 195,881 -- -- -- --
Notes and interest receivable
Performing ..................................... 28,206 -- -- -- --
Non-performing ................................. 7,516 -- -- -- --
Less - allowance for losses .................... (2,577) -- -- -- --
---------- ---------- --------- --------- ---------
33,145 -- -- -- --
Net pizza parlor equipment ........................ 7,373 -- -- -- --
Marketable equity securities, at market value ..... 90 -- -- -- --
Cash and cash equivalents ......................... 2,631 (39) (4) (3) 3
Investments in equity investees ................... 81,170 -- -- -- --
Intangibles, net of accumulated amortization ...... 15,565 -- -- -- --
Other assets ...................................... 36,839 (9,408) 783 650 (183)
---------- ---------- --------- --------- ---------
$ 702,663 $ (10,695) $ (53) $ (29) $ (1,374)
========== ========== ========= ========= =========
Elm
Stonegate/(2)/ Fork/(2)/ Proforma
--------------- ----------- ----------
Assets
Real estate held for investment ................... $ (1,886) $ -- $ 432,974
Less - accumulated depreciation ................... 180 -- (108,661)
--------- --------- ---------
(1,706) -- 324,313
Real estate held for sale ......................... -- (1,850) 194,031
Notes and interest receivable
Performing ..................................... -- -- 28,206
Non-performing ................................. -- -- 7,516
Less - allowance for losses .................... -- -- (2,577)
--------- --------- ---------
-- -- 33,145
Net pizza parlor equipment ........................ -- -- 7,373
Marketable equity securities, at market value ..... -- -- 90
Cash and cash equivalents ......................... (3) -- 2,585
Investments in equity investees ................... -- -- 81,170
Intangibles, net of accumulated amortization ...... -- -- 15,565
Other assets ...................................... 603 12 29,296
--------- --------- ---------
$ (1,106) $ (1,838) $ 687,568
========= ========= =========
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET - Continued
JUNE 30, 2002
White Morning
Actual/(1)/ Woodsong/(2)/ Valley Hi/(2)/ Pines/(2)/ Star/(2)/
----------- ------------- -------------- ---------- ---------
(dollars in thousands)
Liabilities and Equity
Notes and interest payable ................ $ 532,557 $ (8,302) $ -- $ -- $ (1,199)
Margin borrowings ......................... 26,005 -- -- -- --
Other liabilities ......................... 58,087 (82) (23) (16) (49)
---------- --------- --------- ------- ---------
616,649 (8,384) (23) (16) (1,248)
Minority interest ......................... 22,193 -- -- -- --
Stockholders' Equity
Preferred stock ........................... 4,950 -- -- -- --
Common stock .............................. 114 -- -- -- --
Paid-in capital ........................... 112,184 -- -- -- --
Accumulated (deficit) ..................... (56,161) (2,311) (30) (13) (126)
Accumulated other comprehensive income .... 2,734 -- -- -- --
---------- --------- --------- ------- ---------
63,821 (2,311) (30) (13) (126)
---------- --------- --------- ------- ---------
$ 702,663 $ (10,695) $ (53) $ (29) $ (1,374)
========== ========= ========= ======= =========
Elm
Stonegate/(2)/ Fork/(2)/ Proforma
-------------- --------- --------
Liabilities and Equity
Notes and interest payable ................ $ (1,036) $ (3,498) $ 518,522
Margin borrowings ......................... -- -- 26,005
Other liabilities ......................... (42) -- 57,875
----------- --------- ---------
(1,078) (3,498) 602,402
Minority interest ......................... -- -- 22,193
Stockholders' Equity
Preferred stock ........................... -- -- 4,950
Common stock .............................. -- -- 114
Paid-in capital ........................... -- -- 112,184
Accumulated (deficit) ..................... (28) 1,660 (57,009)
Accumulated other comprehensive income .... -- -- 2,734
---------- --------- ---------
(28) 1,660 62,973
---------- --------- ---------
$ (1,106) $ (1,838) $ 687,568
========== ========= =========
____________________
(1) Includes properties sold prior to June 30, 2002. Reflects the change in
accounting treatment of the Mallard Lake transaction. See ITEM 2.
"ACQUISITION OR DISPOSITION OF ASSETS."
(2) Assumes sale by ARI on January 1, 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS /(1)(2)/
SIX MONTHS ENDED JUNE 30, 2002
Actual/(3)/ Apartments/(4)/ Commercial/(5)/ Land/(6)/ Proforma
----------- --------------- --------------- --------- ---------
Property revenue (dollars in thousands)
Rents .............................. $ 56,842 $ (2,682) $ (3,116) $ -- $ 51,044
Property operations expenses ....... 39,800 (1,226) (1,812) (1,973) 34,789
-------- -------- -------- -------- --------
17,042 (1,456) (1,304) 1,973 16,255
Land operations
Sales .............................. 20,701 -- -- 4,270 24,971
Cost of sales ...................... 17,338 -- -- 2,164 19,502
-------- -------- -------- -------- --------
3,363 -- -- 2,106 5,469
Pizza parlor operations
Sales .............................. 18,276 -- -- -- 18,276
Cost of sales ...................... 14,747 -- -- -- 14,747
-------- -------- -------- -------- --------
3,529 -- -- -- 3,529
Income from operations ............... 23,934 (1,456) (1,304) 4,079 25,253
Other income
Interest and other ................. 1,397 -- 47 (45) 1,399
Equity in loss of investees ........ (9,233) -- -- -- (9,233)
Loss on sale of investments in
equity investees ................. (531) -- -- -- (531)
Other .............................. 326 -- -- -- 326
-------- -------- -------- -------- --------
(8,041) -- 47 (45) (8,039)
Other expense
Interest ........................... 36,269 (1,032) (3,553) (4,124) 27,560
Depreciation and amortization ...... 7,909 (258) (1,282) -- 6,369
General and administrative ......... 6,481 -- -- (4) 6,477
Advisory fee to affiliate .......... 3,252 (21) (32) (17) 3,182
Minority interest .................. 1,560 -- -- -- 1,560
-------- -------- -------- -------- --------
55,471 (1,311) (4,867) (4,145) 45,148
-------- -------- -------- -------- --------
Net income (loss) from continuing
operations ......................... (39,578) (145) 3,610 8,179 (27,934)
Discontinued operations:
Income (loss) from operations ...... (42) 59 (17) -- --
Gain on sale of real estate ........ 7,765 7,939 -- -- 15,704
Equity in gain on sale of real
estate by equity investees ....... 8,280 -- -- -- 8,280
-------- -------- -------- -------- --------
Net income (loss) from
discontinued operations ............ 16,003 7,998 (17) -- 23,984
Net income (loss) .................... (23,575) 7,853 3,593 8,179 (3,950)
Preferred dividend requirement ....... (1,200) -- -- -- (1,200)
-------- -------- -------- -------- --------
Net income (loss) applicable to
Common shares ...................... $(24,775) $ 7,853 $ 3,593 $ 8,179 $ (5,150)
======== ======== ======== ======== ========
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS - Continued /(1)(2)/
SIX MONTHS ENDED JUNE 30, 2002
Actual/(3)/ Apartments/(4)/ Commercial/(5)/ Land/(6)/ Proforma
----------- --------------- --------------- ---------- --------
(dollars in thousands)
Earnings per share
Net loss from continued operations ........ $ (3.58) $ (2.56)
Discontinued operations ................... 1.40 2.11
----------- ----------
Net loss................................... $ (2.18) $ (.45)
=========== ==========
Weighted average Common shares
used in computing earnings per share ...... 11,375,127 11,375,127
=========== ==========
____________
(1) The Proforma Combined Statement of Operations assumes that each property was
sold by ARI on January 1, 2002.
(2) Operating results for sold properties are their actual operating results
from January 1 to their respective date of sale.
(3) Reflects the change in accounting treatment of the Mallard Lake transaction.
See ITEM 2. "ACQUISITION OR DISPOSITION OF ASSETS."
(4) Includes the Villas Apartments sold in January 2002; Mallard Lakes
Apartments sold in March 2002; Stonebridge Apartments sold in May 2002; Oak
Hill and Regency on Kennedy Apartments sold in June 2002; Woodsong, Valley
Hi and White Pines Apartments sold in July 2002; and Morning Star and
Stonegate Apartments sold in August 2002.
(5) Includes the Oaktree Village Shopping Center sold in March 2002 and the
Centura Tower Office Building sold in June 2002.
(6) Includes the partial sale of the Thompson II land parcel in January 2002;
the partial sale of the Katrina land parcel in February 2002; the sale of
the Rasor land parcel and the partial sale of the Lakeshore Villas and Vista
Ridge land parcels in March 2002; the partial sale of the Mason Goodrich
land parcel in April 2002; the partial sale of the Mason Goodrich land
parcel in May 2002; the sale of the Hollywood Casino, Marine Creek and
Monterrey land parcels and the partial sale of the Mason Goodrich and
Nashville land parcels in June 2002; and the partial sale of the Elm Fork
land parcel in August 2002.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS /(1)(2)/
YEAR ENDED DECEMBER 31, 2001
Actual Apartments/(3)/ Commercial/(4)/ Land/(5)/ Proforma
----------- ----------------- --------------- ----------- -----------
Property revenue dollars in thousands)
Rents ............................ $ 129,300 $ (8,296) $ (4,473) $ -- $ 116,531
Property operations expenses ..... 93,185 (4,263) (3,473) (2,656) 82,793
----------- -------- -------- -------- -----------
36,115 (4,033) (1,000) 2,656 33,738
Land operations
Sales ............................ 45,290 -- -- 41,569 86,859
Cost of sales .................... 36,083 -- -- 36,931 73,014
----------- -------- -------- -------- -----------
9,207 -- -- 4,638 13,845
Pizza parlor operations
Sales ............................ 34,211 -- -- -- 34,211
Cost of sales .................... 27,934 -- -- -- 27,934
----------- -------- -------- -------- -----------
6,277 -- -- -- 6,277
Oil and gas operations
Sales ............................ 59 -- -- -- 59
Operating expenses ............... 269 -- -- -- 269
----------- -------- -------- -------- -----------
(210) -- -- -- (210)
Income from operations .............. 51,389 (4,033) (1,000) 7,294 53,650
Other income
Interest and other ............... 2,448 (160) (2) -- 2,286
Equity in loss of investees ...... 8,803 -- -- -- 8,803
Gain on sale of real estate ...... 74,207 15,701 -- -- 89,908
----------- -------- -------- -------- -----------
85,458 15,541 (2) -- 100,997
Other expense
Interest ......................... 77,048 (2,502) (5,958) (11,915) 56,673
Depreciation and amortization .... 17,707 (677) (2,431) -- 14,599
General and administrative ....... 12,743 -- -- (5) 12,738
Advisory fee to affiliate ........ 6,715 (254) (384) (187) 5,890
Net income fee to affiliate ...... 166 1,494 777 1,940 4,377
Incentive fees to affiliate ...... 3,827 485 (470) -- 3,842
Litigation settlement ............ 100 -- -- -- 100
Provision for loss ............... 2,500 -- -- -- 2,500
Minority interest ................ 972 -- -- -- 972
----------- -------- -------- -------- -----------
121,778 (1,454) (8,466) (10,167) 101,691
----------- -------- -------- -------- -----------
Net income .......................... 15,069 12,962 7,464 17,461 52,956
Preferred dividend requirement ...... (2,485) -- -- -- (2,485)
----------- -------- -------- -------- -----------
Net income applicable to Common
shares ............................. $ 12,584 $ 12,962 $ 7,464 $ 17,461 $ 50,471
=========== ======== ======== ======== ===========
Earnings per share
Net income ....................... $ 1.07 $ 4.31
=========== ===========
Weighted average Common shares used
in computing earnings per share .. 11,714,374 11,714,374
=========== ===========
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AMERICAN REALTY INVESTORS, INC.
NOTES TO PROFORMA COMBINED
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(1) The Proforma Combined Statement of Operations assumes that each property was
sold by ARI on January 1, 2001.
(2) Operating results for sold properties are their actual operating results
for 2001.
(3) Includes the Villas Apartments sold in January 2002; Mallard Lakes
Apartments sold in March 2002; Stonebridge Apartments sold in May 2002; Oak
Hill and Regency on Kennedy Apartments sold in June 2002; Woodsong, Valley
Hi and White Pines Apartments sold in July 2002; and Morning Star and
Stonegate Apartments sold in August 2002.
(4) Includes the Oaktree Village Shopping Center sold in March 2002 and the
Centura Tower Office Building sold in June 2002.
(5) Includes the partial sale of the Thompson II land parcel in January 2002;
the partial sale of the Katrina land parcel in February 2002; the sale of
the Rasor land parcel and the partial sale of the Lakeshore Villas and Vista
Ridge land parcels in March 2002; the partial sale of the Mason Goodrich
land parcel in April 2002; the partial sale of the Mason Goodrich land
parcel in May 2002; the sale of the Hollywood Casino, Marine Creek and
Monterrey land parcels and the partial sale of the Mason Goodrich and
Nashville land parcels in June 2002; and the partial sale of the Elm Fork
land parcel in August 2002.
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SIGNATURE
---------
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 hereto duly authorized.
AMERICAN REALTY INVESTORS, INC.
Date: October 10, 2002 By: /s/ Ronald E. Kimbrough
------------------- -----------------------------------
Ronald E. Kimbrough
Executive Vice President and Chief
Financial Officer (Principal
Financial and Accounting Officer and
Acting Principal Executive Officer)
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