American Financial Realty Repositions: Fool by Numbers

On Feb. 28, American Financial Realty (NYSE: AFR  ) , a financial-services REIT that competes with Alexandria Real Estate (NYSE: ARE  ) and Brandywine Realty Trust (NYSE: BDN  ) , released fourth-quarter and full-year earnings for the period ending Dec. 31.
  • Adjusted funds from operations (FFO), a measure of cash flow, fell to $21 million versus $26 million last year.
  • The company has struggled, and management deemed it necessary to reposition the portfolio. During the quarter, the company sold 27 properties for $917 million, and it plans to sell off another $575 million worth of property to pay down debt.
  • The company's total occupancy was 86.9% at year-end; however, excluding the properties American Financial plans on selling, occupancy was 91.5%.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$109,198

$102,869

6.2%

Net Profit

$45,536

($20,964)

N/A

EPS

$0.35

($0.17)

N/A



Get back to basics with a look at the income statement.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$218,302

$187,133

16.7%

Accounts Rec.

$62,946

$51,435

22.4%

Net Real Estate Investments

$2,320,600

$3,296,026

(29.6%)



Liabilities

Q4 2006

Q4 2005

Change

Total Debt

$2,216,265

$3,084,995

(28.2%)

Book Value

$785,964

$907,843

(13.4%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

EBITDA

$43,490

$45,062

(3.5%)

FFO

($75,447)

$7,423

N/A

Adjusted FFO

$21,413

$26,161

(18.1%)



Find out why Fools always follow the money.

Related Foolishness:

American Financial is a Motley Fool Income Investor recommendation. Try any one of our investing services free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.


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