Rouse Co., BTR Realty post improved operating results

November 17, 1992|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Two of the state's biggest real estate companies reported higher earnings yesterday, as the Rouse Co. of Columbia and BTR Realty Inc. of Linthicum each said operating results from already-developed properties improved in the third quarter.

Each company said that tracking the operating property earnings and cash flow give a truer picture of the state of its business than does net income, which is affected by depreciation rules that don't allow for the actual ebb and flow of real estate values.

Rouse said it lost $6.3 million on a net income basis during the quarter, which ended Sept. 30. That was larger than the $4.2 million it lost in the same quarter of 1991.

BTR said it lost $1.2 million, slightly more than its loss of $1.1 million in the third quarter of last year.

But BTR said its operating earnings from existing properties -- that is, completed office buildings and shopping centers -- rose 39 percent during the first nine months of the year and 95 percent in the quarter.

In the quarter, the company lost about $100,000 on overall

operations, BTR said, compared with the $70,441 it lost on operations in last year's third quarter. Overall operating performance worsened because BTR sold off less land than it did a year ago, offsetting the improved performance of existing properties, BTR said.

BTR said the results were consistent with its strategy to ride out the real estate recession by cutting back on development and concentrating on managing existing properties and

boosting its cash reserves by selling undeveloped land and other assets.

"The three month loss was exacerbated by the loss of $142,910 on the sale of an income producing asset [a small shopping center] in Arizona," BTR President F. Patrick Hughes said. "However, this sale generated in excess of $1.6 million in cash."

Rouse said its operating earnings rose 37 percent for the quarter, with especially strong performance from the company's retail centers. Rouse Chairman Mathias DeVito said Rouse was confident the company's full-year earnings performance would be better than last year's, but does not expect operating property performance to improve as sharply in the fourth quarter as it did in the third.

Rouse Co.

' Three months ended 9/30

.. .. .. .. Revenue .. .. Net .. .. .. .. .. Share

'92 .. ..150,195,000 ..(6,284,000) .. .. (0.13)

'91 .. .. 141,623,000 .. (4,153,000) .. .. (0.09)

% change .. .. +6.1 .. .. .. -- .. .. .. .. ..--

Nine months ended 9/30

.. .. .. .. .. Revenue .. .. .. .. Net .. .. .. .. Share

'92 .. .. .. ..428,491,000 .. (14,942,000) .. .. (0.31)

'91 .. .. .. .. 415,324,000 .. .. 884,000 .. .. .. 0.02

% change .. .. .. .. +3.2 .. .. .. .. -- .. .. .. .. --

BTR Realty Inc.

' Three months ended 9/30

.. .. .. Revenue .. .. Net .. .. .. Share

'92 .. 5,273,951 .. (1,170,589) .. (0.14)

'91 .. 5,400,762 .. (1,102,360) .. (0.13)

% change ..-2.0 .. .. .. .. -- .. .. --

Nine months ended 9/30

.. .. .. .. Revenue .. .. .. .. Net .. .. .. Share

'92 .. ..17,207,487 .. (1,802,241) .. ..(0.21)

'91 .. .. 16,884,831 .. (2,375,492) .. .. (0.28)

% change .. .. +1.9 .. .. .. .. -- .. .. .. .. --

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