/X/
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR
THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2009
OR
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR
THE TRANSITION PERIOD FROM _______________ TO
_________________
|
MARYLAND
(State
or other jurisdiction of incorporation or organization)
|
52-2058165
(I.R.S.
Employer Identification No.)
|
TITLE
OF EACH CLASS
Common
Shares, $.01 par value
|
NAME
OF EACH EXCHANGE ON WHICH REGISTERED
NYSE
Amex
|
PART I
|
FINANCIAL
INFORMATION
|
|
Item 1.
|
Consolidated Financial
Statements
|
|
|
3
|
|
4
|
||
5
|
||
6
|
||
7
|
||
8
|
||
Item 2.
|
35
|
|
Item 4T.
|
52
|
|
PART II
|
||
Item 1.
|
52
|
|
Item 1A.
|
53
|
|
Item 2
|
53
|
|
Item 3.
|
53
|
|
Item 4.
|
53
|
|
Item 5.
|
53
|
|
Item 6.
|
53
|
|
54
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|||||||
FOR
THE NINE MONTHS ENDED SEPTEMBER 30,
|
|||||||
(In
thousands, except per share amounts)
|
|||||||
(Unaudited)
|
|||||||
2009
|
2008
|
||||||
Revenues
|
|||||||
Rental
property revenues
|
$
|
25,772
|
$
|
25,406
|
|||
Community
development-land sales
|
6,992
|
6,457
|
|||||
Homebuilding-home
sales
|
246
|
3,476
|
|||||
Management
and other fees, substantially all from related entities
|
219
|
208
|
|||||
Reimbursement
of expenses related to managed entities
|
177
|
1,106
|
|||||
Total
revenues
|
33,406
|
36,653
|
|||||
Expenses
|
|||||||
Rental
property operating expenses
|
11,454
|
11,497
|
|||||
Cost
of land sales
|
5,196
|
5,218
|
|||||
Cost
of home sales
|
217
|
2,694
|
|||||
General,
administrative, selling and marketing
|
7,304
|
7,380
|
|||||
Depreciation
|
3,829
|
3,855
|
|||||
Expenses
reimbursed from managed entities
|
177
|
1,106
|
|||||
Total
expenses
|
28,177
|
31,750
|
|||||
Operating
Income
|
5,229
|
4,903
|
|||||
Other
income (expense)
|
|||||||
Interest
and other income
|
262
|
497
|
|||||
Equity
in earnings from unconsolidated entities
|
302
|
489
|
|||||
Interest
expense
|
(8,120
|
)
|
(7,460)
|
||||
Loss
before benefit for income taxes
|
(2,327
|
)
|
(1,571)
|
||||
Benefit
for income taxes
|
(1,604
|
)
|
(1,037)
|
||||
Loss
from continuing operations
|
(723)
|
(534)
|
|||||
Income from
discontinued operations
|
|||||||
(less
applicable income taxes of $797 and $44, respectively)
|
1,338
|
224
|
|||||
Gain
on sale of discontinued operations (less applicable income taxes of
$10,453)
|
25,351
|
-
|
|||||
Total
discontinued operations
|
26,689
|
224
|
|||||
Consolidated
net income (loss)
|
25,966
|
(310)
|
|||||
Less:
Net income attributable to noncontrolling interest
|
704
|
1,691
|
|||||
Net income (loss)
attributable to ACPT
|
$
|
25,262
|
$
|
(2,001)
|
|||
Income
(loss) per common share – Basic and Diluted
|
|||||||
Loss
from continuing operations
|
$
|
(0.13
|
)
|
$
|
(0.11)
|
||
Discontinued
operations
|
5.02
|
0.05
|
|||||
Income
attributable to noncontrolling interest
|
(0.13
|
)
|
(0.32)
|
||||
Income
(loss) applicable to common shareholders
|
$
|
4.76
|
$
|
(0.38)
|
|||
Weighted
average common shares outstanding:
|
|||||||
Basic
and diluted
|
5,312
|
5,215
|
|||||
Cash
dividends per common share
|
$
|
-
|
$
|
-
|
|||
The
accompanying notes are an integral part of these consolidated
statements.
|
|
||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||
FOR
THE THREE MONTHS ENDED SEPTEMBER 30,
|
||||||||
(In
thousands, except per share amounts)
|
||||||||
(Unaudited)
|
||||||||
2009
|
2008
|
|||||||
Revenues
|
||||||||
Rental
property revenues
|
$ | 8,600 | $ | 8,526 | ||||
Community
development-land sales
|
3,462 | 460 | ||||||
Homebuilding-home
sales
|
246 | 494 | ||||||
Management
and other fees, substantially all from related entities
|
109 | 68 | ||||||
Reimbursement
of expenses related to managed entities
|
(366 | ) | 344 | |||||
Total
revenues
|
12,051 | 9,892 | ||||||
Expenses
|
||||||||
Rental
property operating expenses
|
3,981 | 3,779 | ||||||
Cost
of land sales
|
2,552 | 493 | ||||||
Cost
of home sales
|
197 | 394 | ||||||
General,
administrative, selling and marketing
|
2,964 | 2,309 | ||||||
Depreciation
|
1,249 | 1,132 | ||||||
Expenses
reimbursed from managed entities
|
(366 | ) | 344 | |||||
Total
expenses
|
10,577 | 8,451 | ||||||
Operating
Income
|
1,474 | 1,441 | ||||||
Other
income (expense)
|
||||||||
Interest
and other income
|
56 | 136 | ||||||
Equity
in earnings from unconsolidated entities
|
96 | 159 | ||||||
Interest
expense
|
(2,614 | ) | (2,465 | ) | ||||
Loss
before benefit for income taxes
|
(988 | ) | (729 | ) | ||||
Benefit
for income taxes
|
(574 | ) | (762 | ) | ||||
(Loss)
income from continuing operations
|
(414 | ) | 33 | |||||
Loss
from discontinued operations
(less
applicable income taxes of $178 and ($370), respectively)
|
(950 | ) | (293 | ) | ||||
Gain
on sale of discontinued operations (less applicable income taxes of
$10,453)
|
25,351 | - | ||||||
Total
discontinued operations
|
24,401 | (293 | ) | |||||
Consolidated
net income (loss)
|
23,987 | (260 | ) | |||||
Less:
Net (loss) income attributable to noncontrolling interest
|
(588 | ) | 370 | |||||
Net
income (loss) attributable to ACPT
|
24,575 | (630 | ) | |||||
Earnings
(loss) per share –Basic and Diluted
|
||||||||
Loss
from continuing operations
|
$ | (0.07 | ) | $ | - | |||
Discontinued
operations
|
4.59 | (0.05 | ) | |||||
(Loss)
income attributable to noncontrolling interest
|
0.11 | (0.07 | ) | |||||
Income
(loss) applicable to common shareholders
|
$ | 4.63 | $ | (0.12 | ) | |||
Weighted
average shares outstanding:
|
||||||||
Basic
and diluted
|
5,312 | 5,222 | ||||||
Cash
dividends per share
|
$ | - | $ | - | ||||
The
accompanying notes are an integral part of these consolidated
statements.
|
(In
thousands, except share and per share amounts)
|
||||||||
As of
September
30,
2009
|
As
of
December
31,
2008
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
ASSETS:
|
||||||||
Investments
in real estate, at cost:
|
||||||||
Operating
real estate, net of accumulated depreciation
|
||||||||
of
$83,007 and $79,379, respectively
|
$
|
80,506
|
$
|
82,918
|
||||
Land
and development costs
|
98,357
|
96,266
|
||||||
Condominiums
under construction
|
1,606
|
1,745
|
||||||
Rental
projects under construction or development
|
24,075
|
4,564
|
||||||
Investments
in real estate, net
|
204,544
|
185,493
|
||||||
Property
and related assets held for sale
|
36,961
|
93,628
|
||||||
Cash
and cash equivalents
|
21,507
|
24,035
|
||||||
Restricted
cash and escrow deposits
|
10,127
|
9,500
|
||||||
Investments
in unconsolidated real estate entities
|
6,363
|
5,121
|
||||||
Receivable
from bond proceeds
|
2,525
|
2,052
|
||||||
Accounts
receivable, net
|
1,183
|
992
|
||||||
Deferred
tax assets
|
28,208
|
28,540
|
||||||
Property
and equipment, net of accumulated depreciation
|
630
|
898
|
||||||
Deferred
charges and other assets, net of amortization of
|
||||||||
$3,823
and $2,764, respectively
|
7,071
|
4,934
|
||||||
Total
Assets
|
$
|
319,119
|
$
|
355,193
|
||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES:
|
||||||||
Non-recourse
debt
|
$
|
180,148
|
$
|
168,221
|
||||
Recourse
debt
|
37,596
|
39,416
|
||||||
Accounts
payable and accrued liabilities
|
20,795
|
19,553
|
||||||
Deferred
income
|
1,561
|
200
|
||||||
Deferred
tax liability
|
2,296
|
|||||||
Accrued
current income tax liability
|
18,301
|
14,754
|
||||||
Liabilities
related to assets held for sale
|
31,304
|
111,812
|
||||||
Total
Liabilities
|
292,001
|
353,956
|
||||||
COMMITMENTS
AND CONTINGENT LIABILITIES (NOTE 5)
|
||||||||
SHAREHOLDERS’
EQUITY
|
||||||||
ACPT’s
shareholders equity:
|
||||||||
Common
shares, $.01 par value, 10,000,000 shares authorized,
|
||||||||
5,622,660
and 5,229,954 shares issued and outstanding
|
||||||||
as
of September 30, 2009 and December 31, 2008
|
56
|
52
|
||||||
Treasury
stock, 67,709 shares at cost
|
(376
|
)
|
(376
|
) | ||||
Additional
paid-in capital
|
19,224
|
18,144
|
||||||
Retained
earnings (deficit)
|
8,783
|
(16,479
|
) | |||||
Total
ACPT shareholders’ equity
|
27,687
|
1,341
|
||||||
Noncontrolling
interests
|
(569
|
)
|
(104)
|
|||||
Total Shareholders’
Equity
|
27,118
|
1,237
|
||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
319,119
|
$
|
355,193
|
||||
The
accompanying notes are an integral part of these consolidated
statements.
|
|
||||||||||||||||||||||||||||
(In
thousands, except share amounts)
|
||||||||||||||||||||||||||||
ACPT
Shareholders’ Equity
|
||||||||||||||||||||||||||||
Common
Shares
|
Additional
|
Non-
|
Total
|
|||||||||||||||||||||||||
Par
|
Treasury
|
Paid-in
|
Retained
|
Controlling
|
Shareholders’
|
|||||||||||||||||||||||
Number
|
Value
|
Stock
|
Capital
|
Deficit
|
Interest
|
Equity
|
||||||||||||||||||||||
Balance
December 31, 2008
|
5,229,954
|
$
|
52
|
$
|
(376
|
)
|
$
|
18,144
|
$
|
(16,479
|
)
|
$
|
(104
|
)
|
$
|
1,237
|
||||||||||||
Net
income attributable to ACPT
|
-
|
-
|
-
|
-
|
25,262
|
-
|
25,262
|
|||||||||||||||||||||
Net
income attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
5,150
|
5,150
|
|||||||||||||||||||||
Dividends
paid to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
(5,615
|
)
|
(5,615
|
)
|
|||||||||||||||||||
Issuance
of common shares
|
392,706
|
4
|
-
|
(4
|
)
|
-
|
-
|
-
|
||||||||||||||||||||
Equity
Compensation
|
-
|
-
|
-
|
1,084
|
-
|
-
|
1,084
|
|||||||||||||||||||||
Balance
September 30, 2009 (unaudited)
|
5,622,660
|
$
|
56
|
$
|
(376
|
)
|
$
|
19,224
|
$
|
8,783
|
$
|
(569
|
)
|
$
|
27,118
|
|||||||||||||
The
accompanying notes are an integral part of these consolidated
statements.
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||
FOR
THE NINE MONTHS ENDED SEPTEMBER 30,
|
||||||||
(In
thousands)
|
||||||||
(Unaudited)
|
||||||||
2009
|
2008
|
|||||||
Cash Flows from Operating
Activities
|
||||||||
Consolidated
net income (loss)
|
$
|
25,966
|
$
|
(310
|
)
|
|||
Adjustments to reconcile consolidated net income (loss) to net cash
provided
|
||||||||
by
(used in) operating activities:
|
||||||||
Depreciation
|
3,829
|
7,511
|
||||||
Provision
(benefit) for deferred income taxes
|
679
|
(703
|
)
|
|||||
Equity
in earnings from unconsolidated entities
|
(174
|
)
|
(489
|
)
|
||||
Distribution
of earnings from unconsolidated entities
|
476
|
490
|
||||||
Cost
of land sales
|
5,196
|
5,251
|
||||||
Cost
of home sales
|
217
|
2,694
|
||||||
Write-down of assets
|
882
|
-
|
||||||
Stock
based compensation expense
|
1,117
|
91
|
||||||
Amortization
of deferred loan costs
|
699
|
633
|
||||||
Gain
on sale of discontinued operations, net of income taxes
|
(23,285
|
)
|
-
|
|||||
Changes
in accounts receivable
|
(281
|
)
|
717
|
|||||
Additions
to land and development costs
|
(10,917
|
)
|
(19,992
|
)
|
||||
Additions
to condominiums under construction
|
(78
|
)
|
(151
|
)
|
||||
Change
in deferred income
|
1,361
|
(197
|
)
|
|||||
Change
in deferred charges and other assets
|
(36
|
)
|
(248
|
)
|
||||
Changes
in accounts payable, accrued liabilities
|
(3,231
|
)
|
(2,265
|
)
|
||||
Net
cash provided by (used in) operating activities
|
2,420
|
(6,968
|
)
|
|||||
Cash
Flows from Investing Activities
|
||||||||
Investment
in rental projects under construction or development
|
(11,411
|
)
|
(2,866
|
)
|
||||
Change
in investments - unconsolidated entities
|
(1,544
|
)
|
51
|
|||||
Net
deposits to restricted cash
|
(554
|
)
|
(191
|
)
|
||||
Additions
to operating real estate, net
|
(2,844
|
)
|
(2,561
|
)
|
||||
Proceeds
received upon sale of discontinued operations
|
7,864
|
-
|
||||||
Net
purchase of other assets
|
(3,565
|
)
|
(91
|
)
|
||||
Net
cash used in investing activities
|
(12,054
|
)
|
(5,658
|
)
|
||||
Cash
Flows from Financing Activities
|
||||||||
Cash
proceeds from debt financing
|
20,019
|
6,386
|
||||||
Payment
of debt
|
(7,541
|
)
|
(2,888
|
)
|
||||
County
Bonds proceeds, net of undisbursed funds
|
243
|
5,106
|
||||||
Payments
of distributions to noncontrolling interests
|
(5,615
|
)
|
(1,587
|
)
|
||||
Net
cash provided by financing activities
|
7,106
|
7,017
|
||||||
Net
Decrease in Cash and Cash Equivalents
|
(2,528
|
)
|
(5,609
|
)
|
||||
Cash
and Cash Equivalents, Beginning of Period
|
24,035
|
24,912
|
||||||
Cash
and Cash Equivalents, End of Period
|
$
|
21,507
|
$
|
19,303
|
||||
The accompanying notes are an
integral part of these consolidated statements.
|
(1)
|
ORGANIZATION
|
(2)
|
BASIS
OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
|
American
Housing Management Company
|
LDA
Group, LLC
|
|
American
Housing Properties L.P.
|
Milford
Station I, LLC
|
|
Bannister
Associates Limited Partnership
|
Milford
Station II, LLC
|
|
Coachman's
Apartments, LLC
|
New
Forest Apartments, LLC
|
|
Crossland
Associates Limited Partnership
|
Nottingham
South, LLC
|
|
Escorial
Office Building I, Inc.
|
Owings
Chase, LLC
|
|
Essex
Apartments Associates Limited Partnership
|
Palmer
Apartments Associates Limited Partnership
|
|
Fox
Chase Apartments, LLC
|
Prescott
Square, LLC
|
|
Gleneagles
Apartments, LLC
|
St.
Charles Community, LLC
|
|
Headen
House Associates Limited Partnership
|
Sheffield
Greens Apartments, LLC
|
|
Huntington
Associates Limited Partnership
|
Torres
del Escorial, Inc.
|
|
Interstate
Commercial Properties, Inc.
|
Village
Lake Apartments, LLC
|
|
IGP
Property Holdings, LLC
|
Wakefield
Terrace Associates Limited Partnership
|
|
Lancaster
Apartments Limited Partnership
|
Wakefield
Third Age Associates Limited Partnership
|
|
Land
Development Associates S.E.
|
·
|
Buildings and improvements are depreciated over five to forty years using
the straight-line or double declining balance methods;
|
·
|
Furniture, fixtures and equipment are depreciated over five to seven years
using the straight-line method;
|
·
|
Leasehold improvements are capitalized and depreciated over the lesser of
the life of the lease or their estimated useful
life; and
|
·
|
Maintenance and other repair costs are charged to operations as
incurred.
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited)
|
||||||||
Building
|
$
|
131,192
|
$
|
135,067
|
||||
Building
improvements
|
10,020
|
8,313
|
||||||
Equipment
|
9,892
|
6,912
|
||||||
151,104
|
150,292
|
|||||||
Less: Accumulated
depreciation
|
83,007
|
79,379
|
||||||
68,097
|
70,913
|
|||||||
Land
|
12,409
|
12,005
|
||||||
Operating
properties, net
|
$
|
80,506
|
$
|
82,918
|
||||
Nine
months
|
Three
Months
|
|||||||
Loss
from continuing operations
|
$ | (2,207 | ) | $ | (1,211 | ) | ||
Income
from discontinued operations
|
26,689 | 26,600 | ||||||
Pro
forma net income attributable to ACPT’s shareholders
|
$ | 24,482 | $ | 25,389 | ||||
Basic
and diluted earnings (loss) per common share
|
||||||||
Loss
from continuing operations
|
$ | (0.41 | ) | $ | (0.23 | ) | ||
Income
from discontinued operations
|
5.02 | 5.01 | ||||||
Pro
forma net income attributable to ACPT’s shareholders
|
$ | 4.61 | $ | 4.78 | ||||
(3)
|
INVESTMENT
IN UNCONSOLIDATED REAL ESTATE
ENTITIES
|
Apartment
|
Commercial
|
|||||||||||||||
Properties
|
Property
|
Homebuilding
|
Total
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Summary
of Financial Position
|
||||||||||||||||
Total
Assets
|
||||||||||||||||
September
30, 2009
|
$
|
4,688
|
$
|
27,411
|
$
|
4,035
|
$
|
36,134
|
||||||||
December
31, 2008
|
4,781
|
27,005
|
2,478
|
34,264
|
||||||||||||
Total
Non-Recourse Debt
|
||||||||||||||||
September
30, 2009
|
3,072
|
22,375
|
-
|
25,447
|
||||||||||||
December
31, 2008
|
3,123
|
22,380
|
-
|
25,503
|
||||||||||||
Total
Other Liabilities
|
||||||||||||||||
September
30, 2009
|
984
|
382
|
17
|
1,383
|
||||||||||||
December
31, 2008
|
960
|
153
|
-
|
1,113
|
||||||||||||
Total
Equity
|
||||||||||||||||
September
30, 2009
|
631
|
4,654
|
3,580
|
8,865
|
||||||||||||
December
31, 2008
|
698
|
4,472
|
2,478
|
7,648
|
||||||||||||
Company's
Investment, net (1)
|
||||||||||||||||
September
30, 2009
|
-
|
4,584
|
1,778
|
6,362
|
||||||||||||
December
31, 2008
|
-
|
4,632
|
489
|
5,121
|
||||||||||||
Summary
of Operations
|
||||||||||||||||
Total
Revenue
|
||||||||||||||||
Nine
months ended September 30, 2009
|
623
|
2,587
|
29
|
3,239
|
||||||||||||
Nine
months ended September 30, 2008
|
620
|
2,653
|
-
|
3,273
|
||||||||||||
Three
months ended September 30, 2009
|
206
|
850
|
5
|
1,061
|
||||||||||||
Three
months ended September 30, 2008
|
202
|
864
|
-
|
1,066
|
||||||||||||
Net
Income (Loss)
|
||||||||||||||||
Nine
months ended September 30, 2009
|
(66
|
)
|
1,301
|
(422
|
)
|
813
|
||||||||||
Nine
months ended September 30, 2008
|
(97
|
)
|
1,339
|
-
|
1,242
|
|||||||||||
Three
months ended September 30, 2009
|
(16
|
)
|
425
|
(196
|
)
|
213
|
||||||||||
Three
months ended September 30, 2008
|
(30
|
)
|
430
|
-
|
400
|
|||||||||||
Company's
recognition of equity in Earnings (Loss)
|
||||||||||||||||
Nine
months ended September 30, 2009
|
-
|
513
|
(211
|
)
|
302
|
|||||||||||
Nine
months ended September 30, 2008
|
-
|
490
|
-
|
490
|
||||||||||||
Three
months ended September 30, 2009
|
-
|
157
|
(98
|
)
|
59
|
|||||||||||
Three
months ended September 30, 2008
|
-
|
159
|
-
|
159
|
||||||||||||
Summary
of Cash Flows
|
||||||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Nine
months ended September 30, 2009
|
130
|
1,595
|
(405
|
)
|
1,320
|
|||||||||||
Nine
months ended September 30, 2008
|
61
|
1,627
|
42
|
1,730
|
||||||||||||
Three
months ended September 30, 2009
|
24
|
646
|
(108
|
)
|
562
|
|||||||||||
Three
months ended September 30, 2008
|
11
|
650
|
40
|
701
|
Company's
share of cash flows from operating activities
|
||||||||||||||||
Nine
months ended September 30, 2009
|
1
|
722
|
(202
|
)
|
521
|
|||||||||||
Nine
months ended September 30, 2008
|
1
|
736
|
21
|
758
|
||||||||||||
Three
months ended September 30, 2009
|
-
|
293
|
(103
|
)
|
190
|
|||||||||||
Three
months ended September 30, 2008
|
-
|
294
|
20
|
314
|
||||||||||||
Operating
cash distributions
|
||||||||||||||||
Nine
months ended September 30, 2009
|
1,115
|
-
|
1,115
|
|||||||||||||
Nine
months ended September 30, 2008
|
-
|
1,194
|
-
|
1,194
|
||||||||||||
Three
months ended September 30, 2009
|
-
|
409
|
-
|
409
|
||||||||||||
Three
months ended September 30, 2008
|
-
|
421
|
-
|
421
|
||||||||||||
Company's
share of operating
|
||||||||||||||||
cash
distributions
|
||||||||||||||||
Nine
months ended September 30, 2009
|
524
|
-
|
524
|
|||||||||||||
Nine
months ended September 30, 2008
|
-
|
541
|
-
|
541
|
||||||||||||
Three
months ended September 30, 2009
|
-
|
186
|
-
|
186
|
||||||||||||
Three
months ended September 30, 2008
|
-
|
191
|
-
|
191
|
(1)
|
Represents
the Company's net investment, including assets and accrued liabilities in
the consolidated balance sheet for unconsolidated real estate
entities.
|
|
(4)
|
DEBT
|
Maturity
|
Interest
|
Outstanding
as of
|
||
Dates
|
Rates
|
September
30,
|
December
31,
|
|
From/To
|
From/To
|
2009
|
2008
|
|
(Unaudited)
|
(Audited)
|
|||
Recourse
Debt
|
||||
Community
Development (a)(b)(c)(d)
|
03-31-10/06-01-23
|
3.25%/8%
|
$ 37,483
|
$ 39,232
|
General
obligations (e)
|
02-21-12/03-13-12
|
Non-interest
|
||
bearing/8.55%
|
113
|
184
|
||
Total
Recourse Debt
|
37,596
|
39,416
|
||
Non-Recourse
Debt (f)(g)(h)
|
||||
Investment
Properties
|
12-01-13/07-01-50
|
4.95%/7.33%
|
180,148
|
168,221
|
Held for
Sale – Non-Recourse Debt
|
11-01-14/05-01-16
|
5.3%/5.9%
|
29,889
|
107,899
|
Total
Non-Recourse Debt
|
210,037
|
276,120
|
||
Total
Debt
|
$ 247,633
|
$ 315,536
|
a.
|
As
of September 30, 2009, $25,948,000 of the community development recourse
debt is owed to the Charles County Commissioners and relates to the
general obligation bonds issued by the Charles County government, that
have 15 year amortization of maturities with the earliest occurring in
June, 2019, as described in detail under the heading "Financial
Commitments" in Note 5. As of September 30, 2009, the Company has a
receivable balance related to the bonds of $2,525,000.
|
b.
|
On
April 14, 2006, the Company closed a three year, $14,000,000 revolving
acquisition and development loan (“the Revolver”) secured by a first lien
deed of trust on property located in St. Charles,
Maryland. During the first quarter of 2009, the Company
renegotiated the terms of the agreement. The loan bears
interest at Prime plus 1.25% (4.5% at September 30, 2009) and matures on
March 31, 2010. As of September 30, 2009, $1,946,000 was
outstanding on the Revolver.
|
c.
|
Land
Development Associates, S.E (“LDA”) had a $10,000,000 revolving line of
credit that matured on August 31, 2009 but was extended to December 31,
2010. As part of the extension, the Company agreed to reduce
the overall facility limit to $7,500,000 with the available credit to be
used to fund remaining Hilltop development, certain retainage due
and up to $500,000 to be used to fund future interest payments
due under the facility. In addition, the facility now bears
interest at Prime plus 1.5% but not less than 5.5%. The
outstanding balance of this facility on September 30, 2009, was
$6,247,000.
|
d.
|
On
April 2, 2008, the Company secured a two-year, $3,600,000 construction
loan for the construction of a commercial restaurant/office building
within the O’Donnell Lake Restaurant Park. The facility is
secured by the land along with any improvements constructed and bears
interest at Wall Street Journal published Prime Rate (3.25% at September
30, 2009). At the end of the two-year construction period, the
Company may convert the loan to a 5-year permanent loan, amortized over a
30-year period at a fixed interest rate to be determined. As of
September 30, 2009, $3,342,000 was outstanding under this facility leaving
$258,000 available to fund completion of the building. However,
the lender requested that the outstanding balance of the loan be reduced
to 80% of the “as-is” value of the building, requesting a reduction of
$782,000 before November 20, 2009.
|
e.
|
The
general recourse debt outstanding as of September 30, 2009 is made up of
various capital leases outstanding within our U.S. and Puerto Rico
operations, as well as installment loans for vehicles and other
miscellaneous equipment.
|
f.
|
The
non-recourse debt related to the investment properties is collateralized
by the multifamily rental properties and the office building in Parque
Escorial. As of September 30, 2009, approximately $76,279,000
of this debt was secured by the Federal Housing Administration ("FHA") or
the Maryland Housing Fund.
|
g.
|
On
May 12, 2008, IGP agreed to provide a fixed charge and debt service
guarantee related to the Escorial Office Building I, Inc. (“EOB”)
mortgage. The fixed charge and debt service guarantee requires
IGP Group to contribute capital in cash in such amounts required to cause
EOB to comply with the related financial covenants. The
guarantee will remain in full force until EOB has complied with the
financial covenants for four consecutive
quarters.
|
h.
|
On
January 28, 2009, the Company completed the initial closing of a 6.9%,
$25,045,000 non-recourse construction loan to fund the construction costs
for a new apartment property in St. Charles' Fairway Village (“Fairway
Village”). As of September 30, 2009, the balance on the loan was
$13,654,000.
|
(5)
|
COMMITMENTS
AND CONTINGENT LIABILITIES
|
(6)
|
RELATED
PARTY TRANSACTIONS
|
CONSOLIDATED STATEMENT OF
INCOME:
|
Nine
months Ended
September
30,
|
Three
Months Ended
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||||
Management and Other Fees
|
|||||||||||||||||
Unconsolidated
subsidiaries with third party partners
|
(A)
|
$ | 31 | $ | 32 | $ | 10 | $ | 11 | ||||||||
Rental Property Revenues
|
(B)
|
$ | - | $ | 36 | $ | - | $ | 6 | ||||||||
Interest and Other Income
|
|||||||||||||||||
Unconsolidated
real estate entities with third party partners
|
$ | 7 | $ | 6 | $ | 2 | $ | 2 | |||||||||
General and Administrative
Expense
|
|||||||||||||||||
Reserve
additions (reductions) and other write-offs-
|
|||||||||||||||||
Unconsolidated
real estate entities with third party partners
|
(A)
|
$ | 5 | $ | (2 | ) | $ | (3 | ) | $ | 7 | ||||||
Reimbursement
to IBC for ACPT's share of J. Michael Wilson's salary
|
318 | 311 | 106 | 104 | |||||||||||||
Reimbursement
of administrative costs-
|
|||||||||||||||||
Affiliates
of J. Michael Wilson, Chairman
|
(11 | ) | (14 | ) | (3 | ) | (4 | ) | |||||||||
Consulting
Fees-
|
|||||||||||||||||
James
J. Wilson, IGC Chairman and Director
|
(C1)
|
-- | 150 | -- | 50 | ||||||||||||
Thomas
J. Shafer, Trustee
|
(C2)
|
5 | 45 | -- | 15 | ||||||||||||
$ | 317 | $ | 490 | $ | 100 | $ | 172 |
BALANCE
SHEET:
|
Balance
September
30, 2009
|
Balance
December 31, 2008
|
|||||||
Other Assets
|
|||||||||
Receivables
– All unsecured and due on demand
|
|||||||||
Unconsolidated
subsidiaries
|
$ | 3 | $ | 10 | |||||
Affiliate
of J. Michael Wilson, Chairman
|
3 | 2 | |||||||
Total
|
$ | 6 | $ | 12 | |||||
Additional
Paid-in Capital
|
(C3)
|
$ | 354 | $ | 95 |
(A)
|
Management and Other
Services
|
(B)
|
Rental Property
Revenue
|
(C)
|
Other
|
1)
|
Represents
fees paid to James J. Wilson pursuant to a consulting and retirement
agreement. At Mr. Wilson's request, payments are made to
Interstate Waste Technologies, Inc. (“IWT”).
|
2)
|
Represents
fees paid to Thomas J. Shafer, a Trustee, pursuant to a consulting
agreement.
|
3)
|
A
primary shareholder of the Company agreed in principle to provide the
Company’s Chief Executive Officer with the economic benefit of 185,550
shares of their common stock as of October 1, 2008 in accordance with the
five-year vesting schedule. According to FASB ASC 718, any share-based
payments awarded to an employee of the reporting entity by a related party
for services provided to the entity are share-based payment transactions
unless the transfer is clearly for a purpose other than compensation for
services to the reporting entity. Therefore, in essence, the
economic interest holder makes a capital contribution to the reporting
entity, and the reporting entity makes a share-based payment to its
employee in exchange for services rendered. The Company
recognized $354,000 and $95,000 in compensation expense in the nine and
three months ended September 30, 2009, respectively, related to this
grant.
|
(7)
|
INCOME
TAXES
|
Unrecognized tax benefit at
December 31, 2008
|
$
|
15,543
|
||
Change
attributable to tax positions taken during a prior period
|
(1,600
|
)
|
||
Change
attributable to tax positions taken during the current
period
|
-
|
|||
Decrease attributable to
settlements with taxing authorities
|
-
|
|||
Decrease attributable to lapse of
statute of limitations
|
(23)
|
|||
Unrecognized tax benefit at
September 30, 2009
|
$
|
13,920
|
(8)
|
HELD
FOR SALE ASSETS
|
For the nine months ended
September 30,
|
2009
|
2008
|
||||||
Revenues
|
||||||||
Rental
property revenues
|
$
|
19,794
|
$
|
21,267
|
||||
Management
and other fees
|
273
|
360
|
||||||
Total
revenues
|
20,067
|
21,627
|
||||||
Expenses
|
||||||||
Rental
property operating expenses
|
9,756
|
10,794
|
||||||
General,
administrative, selling, and marketing
|
1,153
|
1,590
|
||||||
Write-down
of assets
|
882
|
-
|
||||||
Depreciation
expense
|
-
|
3,656
|
||||||
Total
expenses
|
11,791
|
16,040
|
||||||
Operating
income
|
8,276
|
5,587
|
||||||
Other
income (expense)
|
||||||||
Gain
on sale of discontinued operations (less applicable taxes of
$10,453)
|
25,351
|
-
|
||||||
Other
expenses
|
(4,914
|
)
|
(5,319
|
)
|
||||
Total income (expense)
|
20,437
|
(5,319
|
)
|
|||||
Income before
provision for income taxes
|
28,713
|
268
|
||||||
Provision
for income taxes
|
797
|
44
|
||||||
Income from
discontinued operations
|
27,916
|
224
|
||||||
Noncontrolling
interest in consolidated entities
|
(1,227)
|
(1,306
|
)
|
|||||
Income
(loss) from discontinued operations attributable to ACPT
|
$
|
26,689
|
$
|
(1,082
|
)
|
For the three months ended
September 30,
|
2009
|
2008
|
||||||
Revenues
|
||||||||
Rental
property revenues
|
$
|
5,388
|
$
|
7,210
|
||||
Management
and other fees
|
30
|
119
|
||||||
Total
revenues
|
5,418
|
7,329
|
||||||
Expenses
|
||||||||
Rental
property operating expenses
|
2,812
|
3,595
|
||||||
General,
administrative, selling, and marketing
|
584
|
611
|
||||||
Write-down
of assets
|
43
|
-
|
||||||
Depreciation
expense
|
-
|
1,337
|
||||||
Total
expenses
|
3,439
|
5,543
|
||||||
Operating
Income
|
1,979
|
1,786
|
||||||
Other
income (expense)
|
||||||||
Gain
on sale of discontinued operations (less applicable income taxes
of
$10,453)
|
25,351
|
-
|
||||||
Other
expenses
|
(1,524
|
)
|
(1,760
|
)
|
||||
Total other income (expense)
|
23,827
|
(1,760
|
)
|
|||||
Income before
provision for income taxes
|
25,806
|
26
|
||||||
Provision
for income taxes
|
178
|
319
|
||||||
Income
(loss) from discontinued operations
|
25,628
|
(293
|
)
|
|||||
Noncontrolling
interest in consolidated entities
|
(1,227
|
)
|
(370
|
)
|
||||
Income
(loss) from discontinued operations attributable to ACPT
|
$
|
24,401
|
$
|
(663
|
)
|
(9)
|
SEGMENT
INFORMATION
|
For
the nine months ended
|
||||||||
U.S.
Operating Real Estate:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
$
|
25,022
|
$
|
25,107
|
||||
Operating
expenses
|
10,943
|
11,034
|
||||||
Net
operating income
|
14,079
|
14,073
|
||||||
Management
and other fees, substantially all from related entities
|
58
|
117
|
||||||
General,
administrative, selling and marketing
|
(1,346
|
)
|
(1,063
|
)
|
||||
Depreciation
|
(3,534
|
)
|
(3,734
|
)
|
||||
Operating
income
|
9,257
|
9,393
|
||||||
Other
expense
|
(6,452
|
)
|
(5,944
|
)
|
||||
Income
before provision for income taxes
|
2,805
|
3,449
|
||||||
Provision
for income taxes
|
131
|
366
|
||||||
Income from
continuing operations
|
2,674
|
3,083
|
||||||
Discontinued
operations
|
(533
|
)
|
(357
|
) | ||||
Net
income
|
$
|
2,141
|
$
|
2,726
|
For
the three months ended
|
||||||||
U.S.
Operating Real Estate:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
$
|
8,295
|
$
|
8,423
|
||||
Operating
expenses
|
3,795
|
3,612
|
||||||
Net
operating income
|
4,500
|
4,811
|
||||||
Management
and other fees, substantially all from related entities
|
10
|
38
|
||||||
General,
administrative, selling and marketing
|
(487
|
)
|
(334
|
)
|
||||
Depreciation
|
(1,204
|
)
|
(1,205
|
)
|
||||
Operating
income
|
2,819
|
3,310
|
||||||
Other
expense
|
(2,255
|
)
|
(2,075
|
)
|
||||
Income
before benefit for income taxes
|
564
|
1,235
|
||||||
Benefit
for income taxes
|
(212
|
)
|
(81
|
)
|
||||
Income from
continuing operations
|
776
|
1,316
|
||||||
Discontinued
operations
|
29
|
(108
|
)
|
|||||
Net
income
|
$
|
805
|
$
|
1,208
|
As
of
|
As
of
|
|||||||
U.S.
Operating Real Estate Balance Sheet:
|
September
30,
2009
|
December
31, 2008
|
||||||
ASSETS
|
||||||||
Investments
in real estate, net
|
$
|
93,275
|
$
|
75,120
|
||||
Cash
and cash equivalents
|
4,773
|
7,008
|
||||||
Restricted
cash and escrow deposits
|
8,215
|
6,996
|
||||||
Deferred
tax assets
|
7,905
|
8,743
|
||||||
Deferred
charges and other assets, net of amortization
|
53,817
|
53,049
|
||||||
Property
and related assets, held for sale
|
36,961
|
37,498
|
||||||
Total
Assets
|
$
|
204,946
|
$
|
188,414
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-recourse
debt
|
$
|
171,822
|
$
|
159,822
|
||||
Recourse
debt
|
247
|
257
|
||||||
Other
liabilities
|
12,780
|
6,589
|
||||||
Accrued
income tax liability-current
|
(573
|
)
|
(1,047
|
)
|
||||
Liabilities
related to assets held for sale
|
31,304
|
31,310
|
||||||
Total
Liabilities
|
215,580
|
196,931
|
||||||
Total
Shareholders' Equity
|
(10,634
|
)
|
(8,517
|
)
|
||||
Total
Liabilities and Shareholders' Equity
|
$
|
204,946
|
$
|
188,414
|
|
For
the nine months ended
|
|||||||
Puerto
Rican Operating Real Estate:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
$
|
750
|
$
|
299
|
||||
Operating
expenses
|
511
|
479
|
||||||
Net
operating income
|
239
|
(180
|
)
|
|||||
Management
and other fees, substantially all from related entities
|
164
|
111
|
||||||
General,
administrative, selling and marketing
|
(443
|
)
|
(754
|
)
|
||||
Depreciation
|
(171
|
)
|
(170
|
)
|
||||
Operating
loss
|
(211
|
)
|
(993
|
)
|
||||
Other
expense
|
(207
|
)
|
(458
|
)
|
||||
Loss
before benefit for income taxes
|
(418
|
)
|
(1,451
|
)
|
||||
Benefit
from income taxes
|
-
|
(14
|
) | |||||
Loss
from continuing operations
|
(418
|
)
|
(1,437
|
)
|
||||
Discontinued
operations
|
1,871
|
581
|
||||||
Gain
on sale of discontinued operations, net of income taxes
|
25,351
|
-
|
||||||
Total
discontinued operations
|
27,222
|
581
|
||||||
Net
income (loss)
|
$
|
26,804
|
$
|
(856
|
)
|
For
the three months ended
|
||||||||
Puerto
Rican Operating Real Estate:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
$
|
305
|
$
|
103
|
||||
Operating
expenses
|
175
|
173
|
||||||
Net
operating income
|
130
|
(70
|
)
|
|||||
Management
and other fees, substantially all from related entities
|
88
|
37
|
||||||
General,
administrative, selling and marketing
|
3
|
(192
|
)
|
|||||
Depreciation
|
(2
|
)
|
(57
|
)
|
||||
Operating
income (loss)
|
219
|
(282
|
)
|
|||||
Other
income (expense)
|
96
|
(150
|
)
|
|||||
Income
(loss) before provision (benefit) for income taxes
|
315
|
(432
|
)
|
|||||
Provision
(benefit) for income taxes
|
612
|
(292
|
)
|
|||||
Loss from
continuing operations
|
(297
|
)
|
(140
|
)
|
||||
Discontinued
operations
|
(979
|
)
|
(185
|
) | ||||
Gain
on sale of discontinued operations, net of income taxes
|
25,351
|
-
|
||||||
Total
discontinued operations
|
24,372
|
(185
|
) | |||||
Net
income (loss)
|
$
|
24,075
|
$
|
(325
|
)
|
As
of
|
As
of
|
|||||||
Puerto
Rican Operating Real Estate Balance Sheet:
|
September
30,
2009
|
December
31, 2008
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$
|
9,353
|
$
|
9,524
|
||||
Cash
and cash equivalents
|
12,788
|
6,825
|
||||||
Restricted
cash and escrow deposits
|
8
|
103
|
||||||
Investments
in unconsolidated real estate entities
|
17,522
|
17,311
|
||||||
Deferred
charges and other assets, net of amortization
|
19,051
|
16,613
|
||||||
Property
and related assets, held for sale
|
-
|
45,636
|
||||||
Total
Assets
|
$
|
58,722
|
$
|
96,012
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-recourse
debt
|
$
|
8,326
|
$
|
8,399
|
||||
Other
liabilities
|
19,031
|
6,801
|
||||||
Accrued
income tax liability-current
|
4,074
|
4,259
|
|
|||||
Liabilities
related to assets held for sale
|
-
|
80,502
|
||||||
Total
Liabilities
|
31,431
|
99,961
|
||||||
Total
Shareholders' Equity
|
27,291
|
(3,949
|
)
|
|||||
Total
Liabilities and Shareholders' Equity
|
$
|
58,722
|
$
|
96,012
|
For the nine months ended
|
||||||||
U.S.
Land Development Operations:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$
|
6,992
|
$
|
6,457
|
||||
Operating
expenses
|
||||||||
Cost
of land sales
|
5,195
|
5,218
|
||||||
General,
administrative, selling and marketing
|
2,619
|
2,541
|
||||||
Depreciation
|
7
|
4
|
||||||
Total
expenses
|
7,821
|
7,763
|
||||||
Operating
loss
|
(829
|
)
|
(1,306
|
)
|
||||
Other
expense
|
(1,762
|
)
|
(1,940
|
)
|
||||
Loss
before benefit for income taxes
|
(2,591
|
)
|
(3,246
|
)
|
||||
Benefit
for income taxes
|
(1,611
|
)
|
(1,396
|
)
|
||||
Net
loss
|
$
|
(980
|
)
|
$
|
(1,850
|
)
|
For
the three months ended
|
||||||||
U.S.
Land Development Operations:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$
|
3,462
|
$
|
460
|
||||
Operating
expenses
|
||||||||
Cost
of land sales
|
2,551
|
493
|
||||||
General,
administrative, selling and marketing
|
844
|
909
|
||||||
Depreciation
|
3
|
1
|
||||||
Total
expenses
|
3,398
|
1,403
|
||||||
Operating
income (loss)
|
64
|
(943
|
)
|
|||||
Other
expense
|
(515
|
)
|
(581
|
)
|
||||
Loss
before benefit for income taxes
|
(451
|
)
|
(1,524
|
)
|
||||
Benefit
for income taxes
|
(690
|
)
|
(569
|
)
|
||||
Net
income (loss)
|
$
|
239
|
$
|
(955
|
)
|
As
of
|
As
of
|
|||||||
U.S.
Land Development Balance Sheet:
|
September
30,
2009
|
December
31, 2008
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$
|
80,144
|
$
|
81,821
|
||||
Cash
and cash equivalents
|
3,469
|
10,140
|
||||||
Restricted
cash and escrow deposits
|
1,651
|
2,399
|
||||||
Deferred
tax assets
|
19,948
|
19,151
|
||||||
Deferred
charges and other assets, net of amortization
|
2,966
|
1,129
|
||||||
Total
Assets
|
$
|
108,178
|
$
|
114,640
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Recourse
debt
|
$
|
32,587
|
$
|
37,542
|
||||
Other
liabilities
|
9,857
|
13,383
|
||||||
Payable
to U.S. operating real estate segment
|
40,646
|
38,305
|
||||||
Accrued
income tax liability-current
|
14,608
|
15,803
|
||||||
Total
Liabilities
|
97,698
|
105,033
|
||||||
Total
Shareholders' Equity
|
10,450
|
9,607
|
||||||
Total
Liabilities and Shareholders' Equity
|
$
|
108,178
|
$
|
114,640
|
For
the nine months ended
|
||||||||
Puerto
Rican Land Development Operations:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$ | 246 | $ | 3,476 | ||||
Operating
expenses
|
||||||||
Cost
of home sales
|
217 | 2,694 | ||||||
General,
administrative, selling and marketing
|
289 | 251 | ||||||
Total
expenses
|
506 | 2,945 | ||||||
Operating
(loss) income
|
(260 | ) | 531 | |||||
Other
income
|
484 | 537 | ||||||
Income
before benefit for income taxes
|
224 | 1,068 | ||||||
Benefit
for income taxes
|
(124 | ) | - | |||||
Net
income
|
$ | 348 | $ | 1,068 |
For
the three months ended
|
||||||||
Puerto
Rican Land Development Operations:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$
|
246
|
$
|
494
|
||||
Operating
expenses
|
||||||||
Cost
of home sales
|
197
|
394
|
||||||
General,
administrative, selling and marketing
|
101
|
69
|
||||||
Total
expenses
|
298
|
463
|
||||||
Operating
(loss) income
|
(52
|
)
|
31
|
|||||
Other
income
|
174
|
120
|
||||||
Income
before benefit for income taxes
|
122
|
151
|
||||||
Benefit
for income taxes
|
(124
|
)
|
-
|
|||||
Net
income
|
$
|
246
|
$
|
151
|
As
of
|
As
of
|
|||||||
Puerto
Rican Land Development Balance Sheet:
|
September
30,
2009
|
December
31,
2008
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$
|
24,134
|
$
|
20,310
|
||||
Cash
and cash equivalents
|
478
|
64
|
||||||
Investments
in unconsolidated real estate entities
|
14,789
|
14,234
|
||||||
Deferred
charges and other assets, net of amortization
|
13,255
|
13,863
|
||||||
Total
Assets
|
$
|
52,656
|
$
|
48,471
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Recourse
debt
|
$
|
6,247
|
$
|
4,327
|
||||
Accrued
income tax liability – current
|
(162
|
)
|
-
|
|||||
Accrued
income tax liability – deferred
|
2,296
|
(644
|
)
|
|||||
Accounts
payable and accrued liabilities
|
26,743
|
24,767
|
||||||
Total
Liabilities
|
35,124
|
28,450
|
||||||
Total
Shareholders' Equity
|
17,532
|
20,021
|
||||||
Total Liabilities and
Shareholders' Equity
|
$
|
52,656
|
$
|
48,471
|
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income Before Provision
(Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Income
(Loss)
from Continuing Operations
|
Discontinued
Operations
|
Consolidated
Net Income (Loss)
|
||||||||||||||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||||||||||||||||||
U.S.
|
$
|
25,257
|
$
|
16,000
|
$
|
9,257
|
$
|
(6,452
|
)
|
$
|
2,805
|
$
|
131
|
$
|
2,674
|
$
|
(533
|
)
|
$
|
2,141
|
||||||||||||||||
P.R.
|
914
|
1,125
|
(211
|
)
|
(207
|
)
|
(418
|
)
|
-
|
(418
|
)
|
27,222
|
26,804
|
|||||||||||||||||||||||
Total
Operating Real Estate
|
26,171
|
17,125
|
9,046
|
(6,659
|
)
|
2,387
|
131
|
2,256
|
26,689
|
28,945
|
||||||||||||||||||||||||||
Land
Development
|
||||||||||||||||||||||||||||||||||||
U.S.
|
6,992
|
7,821
|
(829
|
)
|
(1,762
|
)
|
(2,591
|
)
|
(1,611
|
)
|
(980
|
)
|
-
|
(980
|
)
|
|||||||||||||||||||||
P.R.
|
246
|
506
|
(260
|
)
|
484
|
224
|
(124
|
)
|
348
|
-
|
348
|
|||||||||||||||||||||||||
Total
Land Development
|
7,238
|
8,327
|
(1,089
|
)
|
(1,278
|
)
|
(2,367
|
)
|
(1,735
|
)
|
(632
|
)
|
(632
|
)
|
||||||||||||||||||||||
Corporate
|
-
|
3,459
|
(3,459
|
)
|
1,480
|
(1,979
|
)
|
-
|
(1,979
|
)
|
-
|
(1,979
|
)
|
|||||||||||||||||||||||
Intersegment
|
(3
|
)
|
(734
|
)
|
731
|
(1,099
|
)
|
(368
|
)
|
-
|
(368
|
)
|
-
|
(368
|
)
|
|||||||||||||||||||||
$
|
33,406
|
$
|
28,177
|
$
|
5,229
|
$
|
(7,556
|
)
|
$
|
(2,327
|
)
|
$
|
(1,604
|
)
|
$
|
(723
|
)
|
$
|
26,689
|
$
|
25,966
|
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income Before
Provision (Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Income
(Loss)
from Continuing Operations
|
Discontinued
Operations
|
Consolidated
Net Income (Loss)
|
||||||||||||||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||||||||||||||||||
U.S.
|
$
|
25,602
|
$
|
16,209
|
$
|
9,393
|
$
|
(5,944
|
)
|
$
|
3,449
|
$
|
366
|
$
|
3,083
|
$
|
(357
|
)
|
$
|
2,725
|
||||||||||||||||
P.R.
|
1,138
|
2,131
|
(993
|
)
|
(458
|
)
|
(1,451
|
)
|
(14)
|
(1,437
|
)
|
581
|
(855
|
)
|
||||||||||||||||||||||
Total
Operating Real Estate
|
26,740
|
18,340
|
8,400
|
(6,402
|
)
|
1,998
|
352
|
1,646
|
224
|
1,870
|
||||||||||||||||||||||||||
Land
Development
|
||||||||||||||||||||||||||||||||||||
U.S.
|
6,457
|
7,763
|
(1,306
|
)
|
(1,940
|
)
|
(3,246
|
)
|
(1,396
|
)
|
(1,850
|
)
|
-
|
(1,850
|
)
|
|||||||||||||||||||||
P.R.
|
3,476
|
2,945
|
531
|
537
|
1,068
|
-
|
1,068
|
-
|
1,068
|
|||||||||||||||||||||||||||
Total
Land Development
|
9,933
|
10,708
|
(775)
|
(1,403
|
)
|
(2,178
|
)
|
(1,396
|
)
|
(782)
|
(782
|
)
|
||||||||||||||||||||||||
Corporate
|
-
|
3,825
|
(3,825
|
)
|
(1,491
|
)
|
(5,316
|
)
|
(117
|
)
|
(5,199
|
)
|
-
|
(5,199
|
)
|
|||||||||||||||||||||
Intersegment
|
(20
|
)
|
(1,123
|
)
|
1,103
|
2,822
|
3,925
|
124
|
3,801
|
-
|
3,801
|
|||||||||||||||||||||||||
$
|
36,653
|
$
|
31,750
|
$
|
4,903
|
$
|
(6,474
|
)
|
$
|
(1,571
|
)
|
$
|
(1,037
|
)
|
$
|
(534
|
)
|
$
|
224
|
$
|
(310
|
)
|
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income
Before Provision (Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Income
(Loss)
from Continuing Operations
|
Discontinued
Operations
|
Consolidated
Net Income (Loss)
|
||||||||||||||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||||||||||||||||||
U.S.
|
$
|
8,349
|
$
|
5,530
|
$
|
2,819
|
$
|
(2,255
|
)
|
$
|
564
|
$
|
(212
|
)
|
$
|
776
|
$
|
29
|
$
|
805
|
||||||||||||||||
P.R.
|
393
|
174
|
219
|
96
|
315
|
612
|
(297
|
)
|
24,372
|
24,075
|
||||||||||||||||||||||||||
Total
Operating Real Estate
|
8,742
|
5,704
|
3,038
|
(2,159
|
)
|
879
|
400
|
479
|
24,401
|
24,880
|
||||||||||||||||||||||||||
Land
Development
|
||||||||||||||||||||||||||||||||||||
U.S.
|
3,462
|
3,398
|
64
|
(515
|
)
|
(451
|
)
|
(690
|
)
|
239
|
-
|
239
|
||||||||||||||||||||||||
P.R.
|
246
|
298
|
(52
|
)
|
174
|
122
|
(124
|
)
|
246
|
-
|
246
|
|||||||||||||||||||||||||
Total
Land Development
|
3,708
|
3,696
|
12
|
(341
|
)
|
(329
|
)
|
(814
|
)
|
485
|
-
|
485
|
||||||||||||||||||||||||
Corporate
|
(409
|
)
|
1,341
|
(1,750
|
)
|
1,746
|
(4
|
)
|
(120
|
)
|
116
|
-
|
116
|
|
||||||||||||||||||||||
Intersegment
|
10
|
(164
|
)
|
174
|
(1,708
|
)
|
(1,534
|
)
|
(40
|
)
|
(1,494
|
)
|
-
|
(1,494
|
)
|
|||||||||||||||||||||
$
|
12,051
|
$
|
10,577
|
$
|
1,474
|
$
|
(2,462
|
)
|
$
|
(988
|
)
|
$
|
(574
|
)
|
$
|
(414
|
)
|
$
|
24,401
|
$
|
23,987
|
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income
Before Provision (Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Income
(Loss)
from Continuing Operations
|
Discontinued
Operations
|
Consolidated
Net Income (Loss)
|
|||||||||||||||||||||||||
Operating
Real Estate
|
|||||||||||||||||||||||||||||||||
U.S.
|
$
|
8,577
|
$
|
5,267
|
$
|
3,310
|
$
|
(2,075
|
)
|
$
|
1,235
|
$
|
(81
|
)
|
$
|
1,316
|
$
|
(108
|
)
|
$
|
1,208
|
||||||||||||
P.R.
|
368
|
650
|
(282
|
)
|
(150
|
)
|
(432
|
)
|
(292
|
)
|
(140
|
)
|
(185
|
)
|
(325)
|
||||||||||||||||||
Total
Operating Real Estate
|
8,945
|
5,917
|
3,028
|
(2,225
|
)
|
803
|
(373
|
)
|
1,176
|
(293
|
)
|
883
|
|||||||||||||||||||||
Land
Development
|
|||||||||||||||||||||||||||||||||
U.S.
|
460
|
1,403
|
(943
|
)
|
(581
|
)
|
(1,524
|
)
|
(569
|
)
|
(955
|
)
|
-
|
(955)
|
|||||||||||||||||||
P.R.
|
494
|
463
|
31
|
120
|
151
|
-
|
151
|
-
|
151
|
||||||||||||||||||||||||
Total
Land Development
|
954
|
1,866
|
(912
|
)
|
(461
|
)
|
(1,373
|
)
|
(569
|
)
|
(804
|
)
|
-
|
(804)
|
|||||||||||||||||||
Corporate
|
-
|
1,147
|
(1,147
|
)
|
301
|
(846
|
)
|
22
|
(868
|
)
|
-
|
(868)
|
|||||||||||||||||||||
Intersegment
|
(7
|
)
|
(479
|
)
|
472
|
215
|
687
|
158
|
529
|
-
|
529
|
||||||||||||||||||||||
$
|
9,892
|
$
|
8,451
|
$
|
1,441
|
$
|
(2,170
|
)
|
$
|
(729
|
)
|
$
|
(762
|
)
|
$
|
33
|
$
|
(293
|
)
|
$
|
(260)
|
Investment
in Real Estate
|
Total
Assets
|
Recourse
Debt
|
Non-recourse
Debt
|
Total
Liabilities
|
||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||
U.S.
|
$
|
93,275
|
$
|
204,946
|
$
|
247
|
$
|
171,822
|
$
|
215,580
|
||||||||||
P.R.
|
9,353
|
58,722
|
-
|
8,326
|
31,431
|
|||||||||||||||
Total
Operating Real Estate
|
102,628
|
263,668
|
247
|
180,148
|
247,011
|
|||||||||||||||
Land
Development
|
||||||||||||||||||||
U.S.
|
80,144
|
108,178
|
32,587
|
-
|
97,698
|
|||||||||||||||
P.R.
|
24,134
|
52,656
|
6,247
|
-
|
35,124
|
|||||||||||||||
Total
Land Development
|
104,278
|
160,834
|
38,834
|
-
|
132,822
|
|||||||||||||||
Corporate
|
-
|
19,715
|
-
|
-
|
1,731
|
|||||||||||||||
Intersegment
|
(2,362
|
)
|
(162,059
|
)
|
(1,485
|
)
|
-
|
(120,867
|
)
|
|||||||||||
Held
for sale
|
-
|
36,961
|
-
|
-
|
31,304
|
|||||||||||||||
$
|
204,544
|
$
|
319,119
|
$
|
37,596
|
$
|
180,148
|
$
|
292,001
|
Investment
in Real Estate
|
Total
Assets
|
Recourse
Debt
|
Non-recourse
Debt
|
Total
Liabilities
|
||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||
U.S.
|
$
|
75,120
|
$
|
150,916
|
$
|
257
|
$
|
159,822
|
$
|
165,621
|
||||||||||
P.R.
|
9,524
|
35,623
|
-
|
8,399
|
15,199
|
|||||||||||||||
Total
Operating Real Estate
|
84,644
|
186,539
|
257
|
168,221
|
180,820
|
|||||||||||||||
Land
Development
|
||||||||||||||||||||
U.S.
|
81,821
|
114,640
|
37,542
|
-
|
105,033
|
|||||||||||||||
P.R.
|
20,310
|
48,471
|
4,327
|
-
|
28,450
|
|||||||||||||||
Total
Land Development
|
102,131
|
163,111
|
41,869
|
-
|
133,483
|
|||||||||||||||
Corporate
|
-
|
12,663
|
-
|
-
|
-
|
|||||||||||||||
Intersegment
|
(1,282
|
)
|
(100,748
|
)
|
(2,710
|
)
|
-
|
(72,159
|
)
|
|||||||||||
Held
for Sale
|
-
|
93,628
|
-
|
-
|
111,812
|
|||||||||||||||
$
|
185,493
|
$
|
355,193
|
$
|
39,416
|
$
|
168,221
|
$
|
353,956
|
(10)
|
SUPPLEMENTAL
CASH FLOW INFORMATION
|
2009
|
2008
|
|||||||
Interest
paid, net of amounts capitalized of $1,020,000 and
$1,246,000
|
$
|
9,999
|
$
|
9,194
|
||||
Income
taxes paid
|
$
|
107
|
$
|
96
|
||||
Non-cash
investing activity:
|
||||||||
Purchases
of rental projects under construction or development included in accounts
payable and accrued liabilities
|
$
|
4,472
|
$
|
1,216
|
(11)
|
SHARE
GRANTS AND APPRECIATION RIGHTS
|
(12)
|
EARNINGS
PER SHARE
|
(13)
|
SUBSEQUENT
EVENTS
|
·
|
our business and investment strategy;
|
·
|
our projected results of
operations;
|
·
|
our ability to manage our anticipated growth;
|
·
|
our ability to obtain future financing
arrangements;
|
·
|
our estimates relating to, and our ability to pay, future
distributions;
|
·
|
our understanding of our competition and our ability to compete
effectively;
|
·
|
real estate market and industry trends in the United States, and
particularly in the St. Charles, Maryland marketplace and its surrounding
areas, and Puerto Rico;
|
·
|
projected capital and operating
expenditures;
|
·
|
availability and creditworthiness of current and prospective
tenants;
|
·
|
interest rates; and
|
·
|
lease rates and terms.
|
For
the nine months ended
|
||||||||
U.S.
Operating Real Estate:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
$
|
25,022
|
$
|
25,107
|
||||
Operating
expenses
|
10,943
|
11,034
|
||||||
Net
operating income
|
14,079
|
14,073
|
||||||
Management
and other fees, substantially all from related entities
|
58
|
117
|
||||||
General,
administrative, selling and marketing
|
(1,346
|
)
|
(1,063
|
)
|
||||
Depreciation
|
(3,534
|
)
|
(3,734
|
)
|
||||
Operating
income
|
9,257
|
9,393
|
||||||
Other
expense
|
(6,452
|
)
|
(5,944
|
)
|
||||
Income
before provision for income taxes
|
2,805
|
3,449
|
||||||
Provision
for income taxes
|
131
|
366
|
||||||
Income from
continuing operations
|
2,674
|
3,083
|
||||||
Discontinued
operations
|
(533
|
)
|
(357)
|
|||||
Net income
|
$
|
2,141
|
$
|
2,726
|
||||
Depreciation
|
3,534
|
4,564
|
||||||
FFO
|
$
|
5,675
|
$
|
7,790
|
For
the three months ended
|
||||||||
U.S.
Operating Real Estate:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
$
|
8,295
|
$
|
8,423
|
||||
Operating
expenses
|
3,795
|
3,612
|
||||||
Net
operating income
|
4,500
|
4,811
|
||||||
Management
and other fees, substantially all from related entities
|
10
|
38
|
||||||
General,
administrative, selling and marketing
|
(487
|
)
|
(334
|
)
|
||||
Depreciation
|
(1,204
|
)
|
(1,205
|
)
|
||||
Operating
income
|
2,819
|
3,310
|
||||||
Other
expense
|
(2,255
|
)
|
(2,075
|
)
|
||||
Income
before benefit for income taxes
|
564
|
1,235
|
||||||
Benefit
for income taxes
|
(212
|
)
|
(81
|
)
|
||||
Income from
continuing operations
|
776
|
1,316
|
||||||
Discontinued
operations
|
29
|
(108
|
)
|
|||||
Net income
|
$
|
805
|
$
|
1,208
|
||||
Depreciation
|
1,203
|
1,485
|
||||||
FFO
|
$
|
2,008
|
$
|
2,693
|
|
For
the nine months ended
|
|||||||
Puerto
Rican Operating Real Estate:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
$
|
750
|
$
|
299
|
||||
Operating
expenses
|
511
|
479
|
||||||
Net
operating income
|
239
|
(180
|
)
|
|||||
Management
and other fees, substantially all from related entities
|
164
|
111
|
||||||
General,
administrative, selling and marketing
|
(443
|
)
|
(754
|
)
|
||||
Depreciation
|
(171
|
)
|
(170
|
)
|
||||
Operating
loss
|
(211
|
)
|
(993
|
)
|
||||
Other
expense
|
(207
|
)
|
(458
|
)
|
||||
Loss
before provision for income taxes
|
(418
|
)
|
(1,451
|
)
|
||||
Provision
for income taxes
|
-
|
(14
|
) | |||||
Loss
from continuing operations
|
(418
|
)
|
(1,437
|
)
|
||||
Discontinued
operations
|
1,871
|
581
|
||||||
Gain
on sale of discontinued operations
|
25,351
|
-
|
||||||
Total
discontinued operations
|
27,222
|
581
|
||||||
Net
income (loss)
|
$
|
26,804
|
$
|
(856
|
)
|
|||
Gain
on sale of discontinued operations
|
(25,351
|
)
|
||||||
Depreciation
|
243
|
2,827
|
||||||
FFO
|
$
|
1,696
|
$
|
(1,971
|
) |
For
the three months ended
|
||||||||
Puerto
Rican Operating Real Estate:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
$
|
305
|
$
|
103
|
||||
Operating
expenses
|
175
|
173
|
||||||
Net
operating income
|
130
|
(70
|
)
|
|||||
Management
and other fees, substantially all from related entities
|
88
|
37
|
||||||
General,
administrative, selling and marketing
|
3
|
(192
|
)
|
|||||
Depreciation
|
(2
|
)
|
(57
|
)
|
||||
Operating
income (loss)
|
219
|
(282
|
)
|
|||||
Other
income (expense)
|
96
|
(150
|
)
|
|||||
Income
(loss) before provision (benefit) for income taxes
|
315
|
(432
|
)
|
|||||
Provision
(benefit) for income taxes
|
612
|
(292
|
)
|
|||||
Income
(loss) from continuing operations
|
(297
|
)
|
(140
|
)
|
||||
Discontinued
operations
|
(979
|
)
|
(185
|
) | ||||
Gain
on sale of discontinued operations
|
25,351
|
-
|
||||||
Total
discontinued operations
|
24,372
|
(185
|
) | |||||
Net
income (loss)
|
$
|
24,075
|
$
|
(325
|
)
|
|||
Gain
on sale of discontinued operations
|
(25,351
|
)
|
-
|
|||||
Depreciation
|
2
|
944
|
||||||
FFO
|
$
|
(1,274
|
)
|
$
|
619
|
For
the nine months ended
|
||||||||
U.S.
Land Development Operations:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$
|
6,992
|
$
|
6,457
|
||||
Operating
expenses
|
||||||||
Cost
of land sales
|
5,195
|
5,218
|
||||||
General,
administrative, selling and marketing
|
2,619
|
2,541
|
||||||
Depreciation
|
7
|
4
|
||||||
Total
expenses
|
7,821
|
7,763
|
||||||
Operating
loss
|
(829
|
)
|
(1,306
|
)
|
||||
Other
expense
|
(1,762
|
)
|
(1,940
|
)
|
||||
Loss
before benefit for income taxes
|
(2,591
|
)
|
(3,246
|
)
|
||||
Benefit
for income taxes
|
(1,611
|
)
|
(1,396
|
)
|
||||
Net
loss
|
$
|
(980
|
)
|
$
|
(1,850
|
)
|
For
the three months ended
|
||||||||
U.S.
Land Development Operations:
|
September
30,
2009
|
September
30,
2008
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$
|
3,462
|
$
|
460
|
||||
Operating
expenses
|
||||||||
Cost
of land sales
|
2,551
|
493
|
||||||
General,
administrative, selling and marketing
|
844
|
909
|
||||||
Depreciation
|
3
|
1
|
||||||
Total
expenses
|
3,398
|
1,403
|
||||||
Operating
income
|
64
|
(943
|
)
|
|||||
Other
expense
|
(515
|
)
|
(581
|
)
|
||||
Loss
before benefit for income taxes
|
(451
|
)
|
(1,524
|
)
|
||||
Benefit
for income taxes
|
(690
|
)
|
(569
|
)
|
||||
Net
income (loss)
|
$
|
239
|
$
|
(955
|
)
|
For
the nine months ended
|
||||||||
Puerto
Rican Land Development Operations:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$ | 246 | $ | 3,476 | ||||
Operating
expenses
|
||||||||
Cost
of home sales
|
217 | 2,694 | ||||||
General,
administrative, selling and marketing
|
289 | 251 | ||||||
Total
expenses
|
506 | 2,945 | ||||||
Operating
(loss) income
|
(260 | ) | 531 | |||||
Other
income
|
484 | 537 | ||||||
Income
before provision for income taxes
|
224 | 1,068 | ||||||
Provision
for income taxes
|
(124 | ) | - | |||||
Net
income
|
$ | 348 | $ | 1,068 |
For
the three months ended
|
||||||||
Puerto
Rican Land Development Operations:
|
September
30, 2009
|
September
30, 2008
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$
|
246
|
$
|
494
|
||||
Operating
expenses
|
||||||||
Cost
of home sales
|
197
|
394
|
||||||
General,
administrative, selling and marketing
|
101
|
69
|
||||||
Total
expenses
|
298
|
463
|
||||||
Operating
(loss) income
|
(52
|
)
|
31
|
|||||
Other
income
|
174
|
120
|
||||||
Income
before benefit for income taxes
|
122
|
151
|
||||||
Benefit
for income taxes
|
(124
|
)
|
-
|
|||||
Net
income
|
$
|
246
|
$
|
151
|
Nine
months Ended
September
30,
|
||||||||
2009
|
2008
|
|||||||
Operating
Activities
|
$
|
2,420
|
$
|
(6,968
|
)
|
|||
Investing
Activities
|
(12,054
|
)
|
(5,658
|
)
|
||||
Financing
Activities
|
7,106
|
7,017
|
||||||
Net
Decrease in Cash
|
$
|
(2,528
|
)
|
$
|
(5,609
|
)
|
ITEM
4(T).
|
PART
II
|
|||
ITEM
1.
|
ITEM
1A.
|
ITEM
3.
|
ITEM
5.
|
ITEM
6.
|
(A)
|
Exhibits
|
2.1*
|
Agreement
and Plan of Merger, dated as of September 25, 2009, among FCP Fund I, LLP,
FCP/ACPT Acquisition Company, Inc. and American Community Properties
Trust.
|
31.1
|
|
31.2
|
|
32.1
|
|
32.2
|
|
*Incorporated
by reference from the Company’s Current Report of Form 8-K, filed on
September 28, 2009.
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||
(Registrant)
|
||||
Dated: November
16, 2009
|
By:
|
/s/
Stephen Griessel
|
||
Stephen
Griessel
Chief
Executive Officer
|
||||
Dated: November
16, 2009
|
By:
|
/s/
Matthew M. Martin
|
||
Matthew
M. Martin
Chief
Financial Officer
|