Golf Trust of America Inc. Reports Second Quarter 1999 Operations
Funds from Operation Per Share Grow 16%
CHARLESTON, SC, Aug. 10, 1999 -- Golf Trust of America, Inc. (AMEX:GTA) a self-administered real estate investment trust (REIT), today reported second quarter Funds from Operations (FFO) of $8.4 million, or $0.64 per diluted share, on revenues of $13.7 million compared to FFO of $7.2 million, or $.55 per share, on revenues of $10.5 million for 1998.
As of June 30, 1999, the Company had an interest in a total of 46 eighteen-hole equivalents compared to 35 courses at June 30, 1998. Since its initial acquisition of ten courses in February 1997, GTA has acquired interests in 36 (eighteen-hole equivalents) golf courses with a total investment in excess of $354.0 million.
For the second quarter of 1999, same store revenues increased 6.4% and average revenues per round increased 7.5%, while total rounds played at GTA golf courses were consistent with the same period in 1998. Same store rounds and revenues are computed for courses owned for the full quarter in 1998 and 1999.
Brad Blair, President and CEO, stated, "We are pleased with several significant achievements taken since the beginning of 1999 which we believe will positively impact our future and continue to fuel our growth. These include the modification to our Credit Facility with Bank of America which increased the facility from $125 million to $200 million (with the opportunity to increase the facility to $225 million), with a three year term, and the addition of a one year $25 million revolving credit facility with Bank of America.
GTA also completed a $20 million private placement of convertible preferred equity securities with AEW Targeted Securities Fund, L.P. (AEW), an investment partnership managed by AEW Capital Management, L.P. The net proceeds from the sale of 800,000 shares of Series A Convertible Preferred Stock to AEW were used to pay down existing company debt.
Our financial results in the second quarter continue to demonstrate the solid performance of our golf course portfolio and the strength of our strategic partners. GTA continues to see a wide array of opportunities in the golf sector in part due to GTA's unique structure and upscale focus."
As previously reported on June 14, 1999, the Company's Board of Directors declared a first quarter dividend to shareholders of record on June 30, 1999. These dividends were paid on July 15, 1999.
Golf Trust of America, Inc., with headquarters in Charleston, South Carolina, is a self-administered REIT formed to capitalize on the consolidation opportunities in the ownership of golf courses in the United States. The Company's business strategy is to acquire high quality golf courses and lease them to qualified third party lessees, including affiliates of the sellers. The Company currently has interests in 47 courses throughout the United States including the following states: Alabama, California, Florida, Georgia, Illinois, Kansas, Kentucky, Michigan, Missouri, Nebraska, New Mexico, North Carolina, Ohio, South Carolina, Texas, Virginia and West Virginia.
Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors including general economic conditions, competition for golf course acquisitions, the availability of equity and debt financing, interest rates and other risk factors as outlined in the Company's SEC reports, including the prospectus dated November 4, 1997 and the annual report on Form 10-K dated March 31, 1998.
GOLF TRUST OF AMERICA, INC.
BALANCE SHEET
(in thousands)
|
| June 30, 1999
(Unaudited) | Dec. 31, 1998 |
| Net Investment in Golf Courses | $ 327,154 | $ 201,131 |
| Mortgage Notes Receivable | $ 72,850 | $ 66,466 |
| Total Assets | $ 419,489 | $ 276,118 |
| | |
| Debt | $ 204,440 | $ 86,474 |
| Total Liabilities | $ 217,069 | $ 89,311 |
| Stockholders' Equity and Minority Interest | $ 202,420 | $ 186,807 |
| Total Liabilities and Stockholders' Equity | $ 419,489 | $ 276,118 |
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