Mid-Atlantic reports its operational income rose 4.5% REITs

July 25, 1996|By Kevin L. McQuaid | Kevin L. McQuaid,SUN STAFF

Mid-Atlantic Realty Trust yesterday reported that its operational income rose slightly to $3.9 million in the first half of 1996, boosted by new retail projects in Owings Mills and Delaware.

The Linthicum-based real estate investment trust's 4.5 percent jump in funds from operations to 64 cents per share through June 30 also occurred because of project sales in Arizona and fewer common shares outstanding. MART's revenues in the six-month period increased 9.2 percent to $13.4 million. Under a company stock-buyback plan, MART has spent $2.3 million and removed more than 285,000 shares -- or 3.4 percent of its outstanding stock -- from the market compared with a year ago.

"Our properties are 95 percent leased and performing as expected," said MART President and Chief Executive F. Patrick Hughes. "We wish we could raise our prices faster to boost earnings, but in reality, we feel as if we have good properties and we're continuing to take steps to make them perform."

MART, which owns 31 community retail and office projects totaling 3.1 million square feet and valued at $182.5 million, generated operational income of $1.8 million, 30 cents a share, in the second quarter. The quarterly performance represented a 2.8 percent increase from the comparable period last year. Revenue in the quarter jumped 11.4 percent to $6.7 million.

In addition to a new $14 million village center in Owings Mills and the Brandywine Commons shopping center in Wilmington, which MART bought in November for $12.2 million, the REIT expects renovations and expansions to its flagship Harford Mall and York Road Plaza project to add to earnings in the second half of the year.

"They've consistently hit their numbers, and now all they have to do is get new projects in the development pipeline, which it appears they're doing," said William Acheson, a REIT analyst with Smith Barney Inc. in New York.

Pub Date: 7/25/96

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