SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
December 24, 2001
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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 2001, 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 Purchaser
------------------------------------------------------- ------------ --------- ------------- ---------- ----------------------------
Apartments (dollars in Thousands)
02/08/01 Rockborough Denver, CO 345 Units $16,675 $13,471 0.33% First Pacific Investments, Ltd.
02/28/01 Carriage Park Tampa, FL 46 Units 2,005 663 0.15% The Monroe of Soho, LLC
04/06/01 Kimberly Woods Tucson, AZ 279 Units 8,450 6,052 0.26% Kimberly Woods Limited
Partnership
05/10/01 Place One Tulsa, OK 407 Units 12,935 8,623 0.32% Fairview, Inc.
05/16/01 Shadowood Addison, TX 184 Units 7,125 4,644 0.23% DYVC Corporation
05/18/01 Glenwood Addison, TX 168 Units 6,650 (560) 0.80% CNC Investments, Inc.
05/31/01 Bent Tree Addison, TX 292 Units 12,050 7,081 0.55% BT Court Apartment Partners, LP
07/03/01 Club Mar Sarasota, FL 248 Units 8,500 2,328 0.30% Club Mar Associates, Ltd.
08/16/01 Covered Bridge Gainesville, FL 176 Units 7,900 6,042 0.12% Covered Bridge Apartments, LLC
09/06/01 Crossing at Church Tampa, FL 52 Units 1,880 623 0.14% WISCO, Inc.
09/06/01 Ashford Tampa, FL 56 Units 2,145 (985) 0.36% WISCO, Inc.
09/27/01 Chalet I Topeka, KS 162 Units 5,650 3,952 0.19% Kelcor, Inc.
09/27/01 Chalet II Topeka, KS 72 Units 2,100 434 0.20% Kelcor, Inc.
10/18/01 Nora Pines Indianapolis, IN 254 Units 9,850 6,957 0.21% Nora Pines Partners, LP
11/15/01 Timber Creek Omaha, NE 180 Units 7,500 5,219 0.15% Mercy Timbercreek, LLC
11/27/01 Blackhawk FT. Wayne, IN 209 Units 7,100 5,110 0.20% RLA, Ltd.
12/06/01 Woodstock Dallas, TX 320 Units 9,600 5,184 0.37% Woodstock at Skillman, LP
Commercial
03/14/01 Regency Pointe Jacksonville, FL 67,410 Sq.Ft. 7,350 2,232 0.57% Jacksonville Regency Real
Estate Assoc., Inc.
12/24/01 Executive Court Memphis, TN 41,840 Sq.Ft. 1,970 - 0.16% Transcontinental Realty
Investors, Inc.
Land
01/12/01 Plano Parkway Plano, TX 11.3 Acres 1,445 - 0.17% The Holt Companies
01/16/01 Scoggins Tarrant County, TX 232.8 Acres 2,913 181 0.32% JBM Development Companies
01/16/01 Scout Tarrant County, TX 408.0 Acres 5,087 2,969 0.23% JBM Development Companies
03/04/01 Las Colinas Las Colinas, TX 1.7 Acres 825 539 0.03% GRAE Las Colinas, Ltd.
03/07/01 Katrina Palm Desert, CA 20.0 Acres 2,831 - 0.22% Desert Sports Group, LLC
03/29/01 Frisco Bridges Collin County, TX 27.8 Acres 4,500 25 0.53% Frisco Stonebriar, Ltd.
03/30/01 Tree Farm Dallas County, TX 10.4 Acres 2,888 75 0.33% Mathis Brothers Furniture Co.,
Inc.
04/10/01 Katrina Palm Desert, CA 20.0 Acres 2,940 516 0.22% SGH Partners
05/11/01 Mason Goodrich Houston, TX 22.1 Acres 4,168 2,896 0.13% Dan McGill, Trustee
05/30/01 Plano Parkway Plano, TX 12.0 Acres 740 (991) 0.22% Tradition Trail, LP
06/15/01 Yorktown Harris County, TX 120.4 Acres 5,239 (1,497) 0.81% Canyonlands Partners IV, Ltd.
07/16/01 Elm Fork Denton County, TX 10.0 Acres 1,002 284 0.08% Crosspointe Community Church
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS (Continued)
---------------------------------------------
Sale Units/ Sales Gain/[Loss] % of ARI's
Date Property Location Sq.Ft./Acres Price on Sale Assets Purchaser
-------- ----------------- ------------------- ------------ ----------- ------------- ---------- -----------------------------
(dollars in thousands)
Land - Continued
07/25/01 Chase Oaks Plano, TX 22.3 Acres $ 2,874 $ 870 0.24% Today Chase Oaks, LP
07/25/01 Katrina Palm Desert, CA 6.1 Acres 1,196 570 0.07% State College Business Park
Partners
08/24/01 Nashville Nashville, TN 2.0 Acres 26 (82) 0.01% Metropolitan Government
08/24/01 Nashville Nashville, TN 1.2 Acres 8 (59) 0.01% Metropolitan Government
08/27/01 Rasor Plano, TX 6.6 Acres 350 34 0.04% Collin County Chinese Fellowship
Church
09/14/01 Katrina Palm Desert, CA 2.2 Acres 800 514 0.03% Dutt Hospitality Group
09/21/01 Chase Oaks Plano, TX 4.9 Acres 1,973 1,416 0.05% Fairview Farm Land Company, Ltd.
10/15/01 Katrina Palm Desert, CA 1.4 Acres 284 117 0.02% First American Exchange Company
11/01/01 Santa Clarita Santa Clarita, CA 12.7 Acres 2,100 952 0.12% Public Storage
11/14/01 Santa Clarita Santa Clarita, CA 6.7 Acres 500 (501) 0.06% Princessa Plaza, LLC
11/20/01 Nashville Nashville, TN 4.2 Acres 600 302 0.03% The Villas at Metro Center, LP
12/13/01 Elm Fork Denton County, TX 107.0 Acres 5,600 (2,146) 0.88% First Baptist Church of
Carrollton
--------- -------- -----
$ 188,324 $ 84,054 10.46%
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
-----------------------------------------
Proforma statements of operations are presented for the year ended December 31,
2000, and the nine months ended September 30, 2001. The proforma statement 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 September 30, 2001, is also presented. The proforma balance sheet presents
the property sales described above, as if they had occurred at January 1, 2001.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2001
Nora Timber Santa
Actual/(1)/ Pines/(2)/ Creek/(2)/ Blackhawk(/2)/ Woodstock/(2)/ Katrina/(2)/ Clarita/(2)(3)/
----------- ------------ ----------- -------------- -------------- ----------- ---------------
(dollars in thousands)
Assets
Real estate held for investment .. $ 506,680 $ (4,876) $ (3,583) $ (4,800) $ (6,880) $ -- $ --
Less - accumulated depreciation .. (130,567) 3,263 2,390 3,249 3,982 -- --
---------- --------- --------- --------- ---------- --------- --------
376,113 (1,613) (1,193) (1,551) (2,898) -- --
Real estate held for sale ........ 228,476 -- -- -- -- (152) (2,383)
Notes and interest receivable
Performing ..................... 23,914 -- -- -- -- -- --
Non-performing ................. 7,885 -- -- -- -- -- --
Less - allowance for losses .... (2,577) -- -- -- -- -- --
--------- --------- --------- --------- ---------- --------- -------
29,222 -- -- -- -- -- --
Net pizza parlor equipment ....... 7,384 -- -- -- -- -- --
Net leasehold interest ........... 4,718 -- -- -- -- -- --
Net oilfield equipment ........... 344 -- -- -- -- -- --
Marketable equity securities ..... 108 -- -- -- -- -- --
Investments in equity investees .. 78,046 -- -- -- -- -- --
Cash and cash equivalents ........ 5,014 (5) (8) (1) 10 -- --
Net intangibles .................. 15,883 -- -- -- -- -- --
Other assets ..................... 35,070 (5,329) (4,998) (2,556) (2,767) (9) 2,479
--------- --------- --------- --------- ---------- --------- --------
$ 780,378 $ (6,947) $ (6,199) $ (4,108) $ (5,655) $ (161) $ 96
========= ========= ========= ========= ========== ========= ========
Elm Executive
Nashville/(2)/ Fork/(2)/ Court/(2)/ Proforma
-------------- ----------- -------------- ----------
Assets
Real estate held for investment .. $ -- $ -- $ (3,113) $ 483,428
Less - accumulated depreciation .. -- -- 1,867 (115,816)
---------- --------- --------- ---------
-- -- (1,246) 367,612
Real estate held for sale ........ (7,146) (16,648) -- 202,147
Notes and interest receivable
Performing ..................... -- -- -- 23,914
Non-performing ................. -- -- -- 7,885
Less - allowance for losses -- -- -- (2,577)
---------- --------- --------- ---------
-- -- -- 29,222
Net pizza parlor equipment ....... -- -- -- 7,384
Net leasehold interest ........... -- -- -- 4,718
Net oilfield equipment ........... -- -- -- 344
Marketable equity securities ..... -- -- -- 108
Investments in equity investees .. -- -- -- 78,046
Cash and cash equivalents ........ -- -- (1) 5,009
Net intangibles .................. -- -- -- 15,883
Other assets ..................... 4,103 10,408 931 37,332
---------- --------- --------- ---------
$ (3,043) $ (6,240) $ (316) $ 747,805
========== ========= ========= =========
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED CONSOLIDATED BALANCE SHEET - Continued
SEPTEMBER 30, 2001
Nora Timber
Actual/(1)/ Pines/(2)/ Creek/(2)/ Blackhawk/(2)/ Woodstock/(2)/ Katrina(2)
------------- ------------ ------------ --------------- ---------------- ------------
(dollars in thousands)
Liabilities and Equity
Notes and interest payable ........ $582,139 $ (5,624) $ (4,563) $ (4,074) $(4,690) $ (249)
Margin borrowings ................. 28,703 -- -- -- -- --
Other liabilities ................. 44,513 (177) (175) (166) (263) --
-------- -------- -------- -------- ------- ------
655,355 (5,801) (4,738) (4,240) (4,953) (249)
Minority interest ................. 37,634 -- -- -- -- --
Redeemable Preferred Stock ........ 3,969 -- -- -- -- --
Stockholders' Equity
Preferred stock ................... 4,950 -- -- -- -- --
Common stock ...................... 118 -- -- -- -- --
Paid-in capital ................... 112,195 -- -- -- -- --
Accumulated (deficit) ............. (33,827) (1,146) (1,461) 132 (702) 88
Treasury stock .................... (16) -- -- -- -- --
-------- -------- -------- -------- ------- ------
83,420 (1,146) (1,461) 132 (702) 88
-------- -------- -------- -------- ------- ------
$780,378 $ (6,947) $ (6,199) $ (4,108) $(5,655) $ (161)
======== ======== ======== ======== ======= ======
Santa Elm Executive
Clarita/(2)(3)/ Nashville/(2)/ Fork/(2)/ Court/(2)/ Proforma
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Liabilities and Equity
Notes and interest payable ........ $ -- $ (6,472) $ (7,533) $ -- $ 548,934
Margin borrowings ................. -- -- -- -- 28,703
Other liabilities ................. (2) (364) (63) (30) 43,273
----- -------- -------- ------ ---------
(2) (6,836) (7,596) (30) 620,910
Minority interest ................. -- -- -- -- 37,634
Redeemable Preferred Stock ........ -- -- -- -- 3,969
Stockholders' Equity
Preferred stock ................... -- -- -- -- 4,950
Common stock ...................... -- -- -- -- 118
Paid-in capital ................... -- -- -- -- 112,195
Accumulated (deficit) ............. 98 3,793 1,356 (286) (31,955)
Treasury stock .................... -- -- -- -- (16)
----- -------- -------- ------ ---------
98 3,793 1,356 (286) 85,292
----- -------- -------- ------ ---------
$ 96 $ (3,043) $ (6,240) $ (316) $ 747,805
===== ======== ======== ====== =========
__________________
(1) Includes properties sold prior to September 30, 2001.
(2) Assumes sale by ARI on January 1, 2001.
(3) Includes two sales transactions.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS /(1)(2)/
NINE MONTHS ENDED SEPTEMBER 30, 2001
Actual Apartments/(3)/ Commercial/(4)/ Land/(5)/ Proforma
----------- --------------- --------------- ----------- ------------
Property revenue (dollars in thousands)
Rents ................................... $ 98,748 $ (11,025) $ (570) $ (93) $ 87,060
Property operations expenses ............ 71,246 (6,637) (208) (2,777) 61,624
----------- --------- ------- -------- -----------
27,502 (4,388) (362) 2,684 25,436
Land operations
Sales ................................... 41,806 -- -- 9,084 50,890
Cost of sales ........................... 33,546 -- -- 10,360 43,906
----------- --------- ------- -------- -----------
8,260 -- -- (1,276) 6,984
Pizza parlor operations
Sales ................................... 25,282 -- -- -- 25,282
Cost of sales ........................... 20,715 -- -- -- 20,715
----------- --------- ------- -------- -----------
4,567 -- -- -- 4,567
Oil and gas operations
Sales ................................... 97 -- -- -- 97
Operating expenses ...................... 186 -- -- -- 186
----------- --------- ------- -------- -----------
(89) -- -- -- (89)
Income from operations ....................... 40,240 (4,388) (362) 1,408 36,898
Other income
Interest and other ...................... 2,055 (28) (17) (199) 1,811
Equity in income of investees ........... 9,157 -- -- -- 9,157
Gain on sale of real estate ............. 54,600 22,470 -- -- 77,070
----------- --------- ------- -------- -----------
65,812 22,442 (17) (199) 88,038
Other expense
Interest ................................ 56,242 (5,057) (134) (8,569) 42,482
Depreciation ............................ 13,169 (714) (106) -- 12,349
Advisory fees ........................... 4,971 (113) (18) (148) 4,692
Net income fee .......................... 638 181 (18) 1,475 2,276
Incentive fees .......................... 7,477 802 -- -- 8,279
General and administrative .............. 9,083 -- -- (13) 9,070
Minority interest ....................... 2,483 -- -- -- 2,483
----------- --------- ------- -------- -----------
94,063 (4,901) (276) (7,255) 81,631
Net income (loss) ............................ 11,989 22,955 (103) 8,464 43,305
Preferred dividend requirement ............... (1,868) -- -- -- (1,868)
----------- --------- ------- -------- -----------
Net income (loss) applicable to
Common shares ........................... $ 10,121 $ 22,955 $ (103) $ 8,464 $ 41,437
=========== ========= ======= ======== ===========
Basic and diluted earnings per share
Net income .............................. $ 1.00 $ 4.09
=========== ===========
Weighted average Common shares
used in computing earnings
per share ............................... 10,141,840 10,141,840
=========== ===========
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AMERICAN REALTY INVESTORS, INC.
NOTES TO PROFORMA COMBINED
STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 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
from January 1 to their respective date of sale.
(3) Includes the Rockborough and Carriage Park Apartments sold in February
2001; Kimberly Woods Apartments sold in April 2001; Place One, Shadowood,
Glenwood and Bent Tree Apartments sold in May 2001; Club Mar Apartments
sold in July 2001; Covered Bridge Apartments sold in August 2001; Ashford,
Crossing at Church Street, Chalet I and Chalet II Apartments sold in
September 2001; Nora Pines Apartments sold in October 2001; Timbercreek and
Blackhawk Apartments sold in November 2001; and Woodstock Apartments sold
in December 2001.
(4) Includes the Regency Point Shopping Center sold in March 2001 and the
Executive Court Office Building sold in December 2001.
(5) Includes the sale of the Scoggins land parcel and the partial sale of the
Plano Parkway and Scout land parcels in January 2001; the sale of the Tree
Farm land parcel and the partial sale of the Las Colinas, Katrina and
Frisco Bridges land parcels in March 2001; the partial sale of the Katrina
land parcel in April 2001; the sale of the Plano Parkway land parcel and
the partial sale of the Mason/Goodrich land parcel in May 2001; the sale of
the Yorktown land parcel in June 2001; the partial sale of the Elm Fork,
Chase Oaks and Katrina land parcels in July 2001; the partial sale of the
Nashville and Rasor land parcels in August 2001; the partial sale of the
Katrina and Chase Oaks land parcels in September 2001; the partial sale of
the Katrina land parcel in October 2001; the sale of the Santa Clarita land
parcel and the partial sale of the Nashville land parcel in November 2001;
and the partial sale of the Elm Fork land parcel in December 2001.
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AMERICAN REALTY INVESTORS, INC.
PROFORMA COMBINED STATEMENT OF OPERATIONS /(1)(2)/
YEAR ENDED DECEMBER 31, 2000
Actual Apartments/(3)/ Commercial/(4)/ Land/(5)/ Proforma
------ -------------- --------------- --------- --------
(dollars in thousands)
Property revenue
Rents.................................. $ 138,160 $ (21,275) $ (1,584) $ (192) $ 115,109
Property operations expenses).......... 94,081 (11,598) (524) (3,298) 78,661
------------ ------------ ---------- --------- ------------
44,079 (9,677) (1,060) 3,106 36,448
Land operations
Sales.................................. 119,384 -- -- 50,890 170,274
Cost of sales.......................... 90,383 -- -- 43,906 134,289
------------ ------------ ---------- --------- ------------
29,001 -- -- 6,984 35,985
Pizza parlor operations
Sales.................................. 32,551 -- -- -- 32,551
Cost of sales.......................... 26,767 -- -- -- 26,767
------------ ------------ ---------- --------- ------------
5,784 -- -- -- 5,784
Income from operations.................... 78,864 (9,677) (1,060) 10,090 78,217
Other income
Interest and other..................... 2,039 -- 47 (74) 2,012
Equity in income of investees.......... 5,246 -- -- -- 5,246
Gain on sale of real estate............ 67,727 74,838 2,232 -- 144,797
------------ ------------ ---------- --------- ------------
75,012 74,838 2,279 (74) 152,055
Other expense
Interest............................... 76,702 (4,671) (178) (10,546) 61,307
Depreciation........................... 16,879 (1,883) (317) -- 14,679
Advisory fees.......................... 5,049 (613) (81) (288) 4,067
Net income fee......................... -- 6,908 435 1,859 9,202
Incentive fee.......................... 1,646 8,163 116 -- 9,925
General and administrative............. 17,973 -- -- (14) 17,959
Provision for loss..................... 2,248 -- -- -- 2,248
Minority interest...................... 30,700 -- -- -- 30,700
------------ ------------ ---------- --------- ------------
151,197 7,904 (25) (8,989) 150,087
Net income (loss)......................... 2,679 57,257 1,244 19,005 80,185
Preferred dividend requirement............ (2,327) -- -- -- (2,327)
------------ ------------ ---------- --------- ------------
Net income (loss) applicable to
Common shares.......................... $ 352 $ 57,257 $ 1,244 $ 19,005 $ 77,858
============ ============ ========== ========= ============
Basic and diluted earnings per share
Net income............................. $ .03 $ 7.49
============ ============
Weighted average Common shares
used in computing earnings
per share.............................. 10,399,890 10,399,890
============ ============
________________________________
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AMERICAN REALTY INVESTORS, INC.
NOTES TO PROFORMA COMBINED
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(1) The Proforma Combined Statement of Operations assumes that each property
was sold by ARI on January 1, 2000.
(2) Operating results for sold properties are their actual operating results
for the year ended December 31, 2000.
(3) Includes the Rockborough and Carriage Park Apartments sold in February
2001; Kimberly Woods Apartments sold in April 2001; Place One, Shadowood,
Glenwood and Bent Tree Apartments sold in May 2001; Club Mar Apartments
sold in July 2001; Covered Bridge Apartments sold in August 2001; Ashford,
Crossing at Church Street, Chalet I and Chalet II Apartments sold in
September 2001; Nora Pines Apartments sold in October 2001; Timbercreek and
Blackhawk Apartments sold in November 2001; and Woodstock Apartments sold
in December 2001.
(4) Includes the Regency Point Shopping Center sold in March 2001 and the
Executive Court Office Building sold in December 2001.
(5) Includes the sale of the Scoggins land parcel and the partial sale of the
Plano Parkway and Scout land parcels in January 2001; the sale of the Tree
Farm land parcel and the partial sale of the Las Colinas, Katrina and
Frisco Bridges land parcels in March 2001; the partial sale of the Katrina
land parcel in April 2001; the sale of the Plano Parkway land parcel and
the partial sale of the Mason/Goodrich land parcel in May 2001; the sale of
the Yorktown land parcel in June 2001; the partial sale of the Elm Fork,
Chase Oaks and Katrina land parcels in July 2001; the partial sale of the
Nashville and Rasor land parcels in August 2001; the partial sale of the
Katrina and Chase Oaks land parcels in September 2001; the partial sale of
the Katrina land parcel in October 2001; the sale of the Santa Clarita land
parcel and the partial sale of the Nashville land parcel in November 2001;
and the partial sale of the Elm Fork land parcel in December 2001.
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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: January 8, 2002 By: /s/ Brent Horak
----------------------- -------------------------------
Brent Horak
Vice President and
Chief Financial Officer
(Principal Financial Officer)
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