Golf Trust of America, Inc. Announces
10% Increase in FFO Per Share For Third Quarter
Charleston, SC, November 10, 1999 – Golf Trust of America, Inc. (AMEX:GTA) a self-administered real estate investment trust (REIT), today reported third quarter 1999 Funds From Operations (FFO) per share of $.65, representing an increase of 10.2% over the same period in 1998. For the quarter ended September 30, 1999, FFO totaled $8.5 million versus $7.8 million or $0.59 per share for the quarter ended September 30, 1998.
FFO totaled $25.1 million, or $1.93 per share, for the nine months ended September 30, 1999 versus $21.9 million, or $1.69 per share, for the same period last year, an increase of 14.2% on a per common share basis.
For the quarter ended September 30, 1999, total revenue increased 17.5% to $14.1 million from $12.0 million for the same quarter last year. For the nine months ended September 30, 1999, total revenues equaled $41.1 million, an increase of 30.9% over the $31.4 million of total revenues for the same period last year.
Income from operations after minority interest and extraordinary items for the quarter totaled $4.7 million, or $.31 per share, versus $4.7 million, or $0.35 per share, for the quarter ended September 30, 1998, a decrease of 11.4% on a per common share basis. Income from operations before minority interest and extraordinary items for the nine months ended September 30, 1999, totaled $13.8 million, or $.98 per common share, versus $14.2 million or $1.08 per common share for the same period last year, a decrease of 9.3% on a per common share basis.
For the third quarter of 1999, same store revenues, average revenues per round, and 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. During the latter part of the third quarter, GTA courses from Virginia to Florida experienced an unusually active hurricane season, which impacted otherwise good third quarter performance.
W. Bradley Blair, II, Chairman and Chief Executive Officer, stated, "Our course portfolio performed extremely well in the third quarter, notwithstanding the significant weather systems that impacted the Southeast. We expect our courses to continue to deliver solid revenue and round growth in future quarters."
As previously reported on September 15, 1999, the Company's Board of Directors declared a first quarter dividend to shareholders of record on September 30, 1999. These dividends were paid on October 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 if to acquire high quality golf courses and lease them to qualified third party lessees, including affiliates of the sellers. The Company currently has interest 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 statement 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/A dated March 31, 1999.
Golf Trust of America, Inc.
Balance Sheet
(in thousands)
(Unaudited)
| September 30, 1999 | December 31, 1998 |
| Net Investment in Golf Courses | $333,467 | $323,500 |
| Mortgage Notes Receivable | $73,005 | $72,252 |
| Total Assets | $434,745 | $411,981 |
|
| Debt | $223,164 | $210,634 |
| Total Liabilities | $234,029 | $225,824 |
| Stockholders' Equity and Minority Interest | $200,716 | $186,157 |
| Total Liabilities and Stockholders' Equity | $434,745 | $411,981 |
Earnings Per Share
(in thousands, except per share data)
(Unaudited)
| Three months ended
September 30 | Nine months ended
September 30 |
| 1999 | 1998 | 1999 | 1998 |
| Net income before minority interest(a) | 4,661 | 4,669 | 13,842 | 14,175 |
| Income applicable to minority interest | (1,785) | (1,890) | (5,335) | (5,676) |
| Preferred dividends | (463) | - | (920) | - |
| Net income available to common shareholders | 2,413 | 2,779 | 7,587 | 8,499 |
| Weighted average number of common shares | 7,735 | 7,638 | 7,715 | 7,634 |
| Basic earnings per share | $0.31 | $0.36 | $0.98 | $1.11 |
Weighted average number of common
shares and common stock equivalents | 7,740 | 7,865 | 7,745 | 7,875 |
| Diluted earnings per share | $0.31 | $0.35 | $0.98 | $1.08 |
(a) Effective with 1Q99 GTA adopted the provisions of the Financial Accounting Standards Board's Emerging Issues Task Force Issue No. 98-9, Accounting For Contingent Rent in Interim Financial Periods, ("EITF 98-9"). Although EITF 98-9 has been withdrawn by the FASB, GTA has continued to account for contingent rent in accordance with EITF 98-9. The sole effect of EITF 98-9 is to adjust the timing of the recognition of percentage rent throughout the year and does not affect the amount of lease payments, including percentage rent. As such EITF 98-9 has no effect on GTA's fiscal year revenues, net income or FFO. As a result of EITF 98-9, no percentage rent or participating interest was recognized in the first three quarters of 1999.
Funds From Operations Per Share
(in thousands, except per share data)
(Unaudited)
| Three months ended
September 30 | Nine months ended
September 30 |
| 1999 | 1998 | 1999 | 1998 |
| Net income before minority interest | 4,661 | 4,669 | 13,842 | 14,175 |
| Preferred dividends | (463) | - (920) | - |
| Preferred distributions | (27) | - | (30) | - |
| Depreciation and amortization for real estate assets | 4,297 | 3,089 | 12,200 | 7,362 |
| Loss on sale of assets | - | | - | 370 |
| Funds from operations | 8,468 7,758 | 25,092 | 21,907 |
| Weighted average number of common shares | 12,963 | 12,829 | 12,986 | 12,738 |
| Basic funds from operations per share and OP unit | $0.65 | $0.61 | $1.93 | $1.72 |
| Weighted average number of common shares, common stock equivalents and OP units | 12,968 | 13,057 | 13,016 | 12,980 |
| Diluted funds from operations per share | $0.65 | $0.59 | $1.93 | $1.69 |
Golf Trust of America, Inc.
Shares and OP Units Outstanding
(Unaudited)
| For the three months ended
September 30, 1999 | For the three months ended
September 30, 1998 |
| Weighted Average |
| Common | 7,735,042 | 59.6% | 7,637,488 | 58.5% |
| Stock Equivalents | 5,079 | 0.0% | 228,237 | 1.7% |
| 7,740,121 | | 7,865,725 | |
|
| OP Units | 5,227,706 | 40.3% | 5,191,375 | 39.8% |
| 12,967,827 | 100.0% | 13,057,100 | 100.0% |
|
| Actual Outstanding |
| Common | 7,735,855 | 59.7% | 7,637,488 | 59.2% |
| OP Units | 5,220,014 | 40.3% | 5,270,970 | 40.8% |
| 12,955,869 | 100.0% | 12,908,458 | 100.0% |
| For the nine months ended
September 30, 1999 | For the nine months ended
September 30, 1998 |
| Weighted Average |
| Common | 7,714,916 | 59.3% | 7,633,774 | 58.8% |
| Stock Equivalents | 29,784 | 0.2% | 241,229 | 1.9% |
| 7,744,700 | | 7,875,003 | |
|
| OP Units | 5,271,528 | 40.5% | 5,104,511 | 39.3% |
| 13,016,228 | 100.0% | 12,979,514 | 100.0% |
|
| Actual Outstanding |
| Common | 7,735,855 | 59.7% | 7,637,488 | 59.2% |
| OP Units | 5,220,014 | 40.3% | 5,270,970 | 40.8% |
| 2,955,869 | 100.0% | 12,908,458 | 100.0% |
|
