/X/
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR
THE FISCAL YEAR ENDED DECEMBER 31, 2008
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
|
Page
|
||
PART I
|
||
Item
1.
|
4
|
|
Item
1A.
|
18
|
|
Item
1B.
|
24
|
|
Item
2.
|
24
|
|
Item
3.
|
25
|
|
Item
4.
|
25
|
|
Item
4A.
|
25
|
|
PART
II
|
||
Item
5.
|
26
|
|
Item
6.
|
27
|
|
Item
7.
|
29
|
|
Item
8.
|
43
|
|
Item
9.
|
78
|
|
Item
9A(T).
|
78
|
|
Item
9B.
|
78
|
|
PART
III
|
||
Item
10.
|
79
|
|
Item
11.
|
79
|
|
Item
12.
|
79
|
|
Item
13.
|
79
|
|
Item
14.
|
80
|
|
PART
IV
|
||
Item
15.
|
80
|
|
Signatures
|
Signatures |
84
|
·
|
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.
|
·
|
the
factors referenced in this Annual Report on Form 10-K, including those set
forth under the sections captioned “Risk Factors,” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations;”
|
·
|
changes
in our business and investment
strategy;
|
·
|
default
by our tenants;
|
·
|
availability,
terms and deployment of capital;
|
·
|
general
volatility of the capital markets;
|
·
|
availability
of qualified personnel;
|
·
|
perception
of the real estate industry;
|
·
|
changes
in supply and demand dynamics within the real estate
industry;
|
·
|
environmental
effects;
|
·
|
changes
in interest rates;
|
·
|
the
degree and nature of our
competition;
|
·
|
changes
in applicable laws and regulations;
and
|
·
|
state
of the general economy and the local economy in which our properties are
located.
|
ITEM
1.
|
1.
|
a
100% ownership interest in St. Charles Community LLC ("SCC LLC"), which
holds approximately 3,790 acres of land in St. Charles,
Maryland;
|
2.
|
the
Class B interest in Interstate General Properties Limited Partnership
S.E., a Maryland limited partnership ("IGP"), that represents IGP's rights
to income, gains and losses associated with the balance of the residential
land in our Parque Escorial property in Puerto Rico held by Land
Development Associates, S.E. ("LDA"), a wholly owned subsidiary of
IGP;
|
3.
|
through
November 19, 2008, a 50% interest, through SCC LLC, in a land
development joint venture, St. Charles Active Adult Community, LLC
(“Active Adult Community”). ACPT sold its interest in Active
Adult Community to Lennar Corporation (“Lennar”) in the fourth quarter of
2008; and
|
4.
|
effective
on October 28, 2008, a 50% interest in Surrey Homes, LLC (“Surrey Homes”),
which is a homebuilding company that was created to meet the needs of
developing communities in central Florida with a lot option, low overhead
model.
|
1.
|
a
100% ownership interest in LDA, a Puerto Rico special partnership which
holds 120 acres of land in the planned community of Parque Escorial in
Carolina, Puerto Rico (“Parque Escorial”) and 490 acres of land in
Canovanas, Puerto Rico;
|
2.
|
general
partner interests in nine partnerships, which collectively own and
operate a total of 12 multifamily rental facilities in Puerto Rico (the
“Puerto Rico Apartment Properties”), and a limited partner interest in two
of these partnerships;
|
3.
|
a
100% ownership interest in Escorial Office Building I, Inc. (“EOBI”), and
through LDA and IGP, a 100% ownership interest in a Puerto Rico
corporation that operates a three-story, 56,000 square foot office
building in Carolina, Puerto Rico;
|
4.
|
a
100% ownership interest in ICP, an entity that holds the partnership
interest in El Monte Properties S.E. (“EMP”) which was sold and is
wrapping up operations in 2009;
|
5.
|
a
limited partner interest in ELI, S.E. ("ELI"), an entity that holds a
45.26% share in the future cash flow generated from a 30-year lease of an
office building to the State Insurance Fund of the Government of Puerto
Rico; and
|
6.
|
an
indirect 100% ownership interest, through LDA and IGP, in Torres del
Escorial, Inc. ("Torres"), a Puerto Rico corporation organized
to build 160 condominium units.
|
U.S.
APARTMENT PROPERTIES
|
Number
of
Apartment
Units
|
Percentage
of
Portfolio
|
12/31/2008
Project
Cost (A)
(in
thousands)
|
Occupancy
at
12/31/2008
|
Expiration
Of
Subsidy
Contract
|
Maximum
Subsidy
(in
thousands)
|
||||||||||||||||||
Consolidated
Partnerships
|
||||||||||||||||||||||||
Bannister
– Non-subsidized Apartments
|
167 | 5 | % | $ | 8,981 | 88 | % | N/A | $ | - | ||||||||||||||
Bannister
– Subsidized Apartments
|
41 | 1 | % |
2009
|
536 | |||||||||||||||||||
Coachman's
|
104 | 3 | % | 8,005 | 92 | % | N/A | - | ||||||||||||||||
Crossland
|
96 | 3 | % | 3,483 | 95 | % | N/A | - | ||||||||||||||||
Essex
|
496 | 15 | % | 21,220 | 97 | % |
2009
|
4,672 | ||||||||||||||||
Fox
Chase
|
176 | 5 | % | 8,990 | 95 | % | N/A | - | ||||||||||||||||
Headen
House
|
136 | 4 | % | 8,610 | 97 | % |
2009
|
1,689 | ||||||||||||||||
Huntington
|
204 | 6 | % | 10,134 | 97 | % |
2009
|
2,496 | ||||||||||||||||
Lancaster
|
104 | 3 | % | 6,042 | 87 | % | N/A |
(B)
|
||||||||||||||||
Milford
Station I (D)
|
200 | 6 | % | 13,271 | 90 | % | N/A | - | ||||||||||||||||
Milford
Station II (D)
|
50 | 1 | % | 1,879 | 94 | % | N/A | - | ||||||||||||||||
New
Forest
|
256 | 8 | % | 15,513 | 93 | % | N/A | - | ||||||||||||||||
Nottingham
South (D)
|
85 | 3 | % | 3,070 | 94 | % | N/A | - | ||||||||||||||||
Owings
Chase (D)
|
234 | 7 | % | 15,922 | 91 | % | N/A | - | ||||||||||||||||
Palmer
– Non-subsidized Apartments
|
96 | 3 | % | 9,185 | 94 | % | N/A | - | ||||||||||||||||
Palmer
– Subsidized Apartments
|
56 | 2 | % |
2009
|
732 | |||||||||||||||||||
Prescott
Square (D)
|
73 | 2 | % | 4,788 | 88 | % | N/A | - | ||||||||||||||||
Sheffield
Greens
|
252 | 7 | % | 25,999 | 93 | % | N/A | - | ||||||||||||||||
Village
Lake
|
122 | 3 | % | 7,994 | 96 | % | N/A | - | ||||||||||||||||
Wakefield
Terrace – Non-subsidized Apartments
|
164 | 5 | % | 11,301 | 90 | % | N/A | - | ||||||||||||||||
Wakefield
Terrace – Subsidized Apartments
|
40 | 1 | % |
2011
|
541 | |||||||||||||||||||
Wakefield
Third Age (Brookmont)
|
104 | 3 | % | 5,572 | 96 | % | N/A | - | ||||||||||||||||
Total
Consolidated
|
3,256 | 96 | % | 189,959 | 10,666 | |||||||||||||||||||
Unconsolidated
Partnerships
|
||||||||||||||||||||||||
Brookside
Gardens
|
56 | 2 | % | 2,696 | 96 | % | N/A |
(C)
|
||||||||||||||||
Lakeside
Apartments
|
54 | 2 | % | 4,131 | 100 | % | N/A |
(C)
|
||||||||||||||||
Total
Unconsolidated
|
110 | 4 | % | 6,827 | ||||||||||||||||||||
Total
|
3,366 | 100 | % | $ | 196,786 | $ | 10,666 |
(A)
|
Project
costs represent inception-to-date capitalized costs for each respective
property as per Schedule III “Real Estate and Accumulated Depreciation” in
Item 8 of this Annual Report on Form
10-K.
|
(B)
|
Not
subsidized, however, 54 units are subject to household income restrictions
set by the Maryland Community Development Administration
(“MCDA”).
|
(C)
|
Not
subsidized, but all units are set aside for low to moderate income tenants
over certain age limitations under provisions set by the LIHTC
program.
|
(D)
|
During the first quarter of 2009,
the Company executed purchase agreements for the sale of three of the five
U.S. Apartment Properties in Baltimore, Maryland for $29,200,000.
The Company has received non-binding offers of $6,598,000 and is
negotiating agreements for the remaining two
properties.
|
U.S.
APARTMENT PROPERTIES
|
Number
of Apartment Units
|
Operating
Revenues
|
Operating
Expenses (a)
|
Net
Operating Income
|
Non-Recourse
Mortgage Outstanding
|
Economic
Interest Upon Liquidation (b)
|
|||||||||||||||||||
Consolidated
Partnerships
|
|||||||||||||||||||||||||
Charles
County, Maryland
|
|||||||||||||||||||||||||
Bannister
|
208 | $ | 2,587 | $ | 1,201 | $ | 1,386 | $ | 12,301 | 100.0 | % | ||||||||||||||
Coachman's
|
104 | 1,718 | 665 | 1,053 | 10,740 | 95.0 | % | ||||||||||||||||||
Crossland
|
96 | 1,205 | 598 | 607 | 4,034 | 60.0 | % | ||||||||||||||||||
Fox
Chase
|
176 | 2,286 | 876 | 1,410 | 12,685 | 99.9 | % | ||||||||||||||||||
Headen
House
|
136 | 1,641 | 659 | 982 | 6,828 | 75.5 | % | ||||||||||||||||||
Huntington
|
204 | 2,397 | 1,368 | 1,029 | 9,104 | 50.0 | % | ||||||||||||||||||
Lancaster
|
104 | 1,541 | 671 | 870 | 8,355 | 100.0 | % | ||||||||||||||||||
New
Forest
|
256 | 4,082 | 1,506 | 2,576 | 22,445 | 99.9 | % | ||||||||||||||||||
Palmer
|
152 | 1,912 | 802 | 1,110 | 6,649 | 75.5 | % | ||||||||||||||||||
Sheffield
Greens
|
252 | 4,346 | 1,882 | 2,464 | 26,749 | 100.0 | % | ||||||||||||||||||
Village
Lake
|
122 | 1,589 | 671 | 918 | 9,088 | 95.0 | % | ||||||||||||||||||
Wakefield
Terrace
|
204 | 2,292 | 1,110 | 1,182 | 9,897 | 75.5 | % | ||||||||||||||||||
Wakefield
Third Age (Brookmont)
|
104 | 1,332 | 528 | 804 | 7,180 | 75.5 | % | ||||||||||||||||||
Baltimore
County, Maryland
|
|||||||||||||||||||||||||
Milford
Station I (f)
|
200 | 1,911 | 1,005 | 906 | 10,491 | 100.0 | % | ||||||||||||||||||
Milford
Station II (f)
|
50 | 410 | 271 | 139 | 1,345 | 100.0 | % | ||||||||||||||||||
Nottingham
South (f)
|
85 | 638 | 468 | 170 | 2,543 | 100.0 | % | ||||||||||||||||||
Owings
Chase (f)
|
234 | 2,408 | 1,238 | 1,170 | 12,208 | 100.0 | % | ||||||||||||||||||
Prescott
Square (f)
|
73 | 738 | 431 | 307 | 3,541 | 100.0 | % | ||||||||||||||||||
Henrico
County, Virginia
|
|||||||||||||||||||||||||
Essex
|
496 | 4,482 | 2,239 | 2,243 | 13,766 | 50.0 | % |
(c)
|
|||||||||||||||||
Total
Consolidated
|
3,256 | 39,515 | 18,189 | 21,326 | 189,949 | ||||||||||||||||||||
Unconsolidated
Partnerships
|
|||||||||||||||||||||||||
Charles
County, Maryland
|
|||||||||||||||||||||||||
Brookside
Gardens
|
56 | 325 | 282 | 43 | 1,202 |
(d)
|
|||||||||||||||||||
Lakeside
|
54 | 502 | 284 | 218 | 1,921 |
(e)
|
|||||||||||||||||||
Total
Unconsolidated
|
110 | 827 | 566 | 261 | 3,123 | ||||||||||||||||||||
Grand
Total
|
3,366 | $ | 40,342 | $ | 18,755 | $ | 21,587 | $ | 193,072 |
(a)
|
Amounts
exclude management fees eliminated in
consolidation.
|
(b)
|
Unless
stated otherwise, surplus cash from operations and proceeds from sale or
liquidation are allocated based on the economic
interest.
|
(c)
|
Upon
liquidation, the limited partners have a priority distribution equal to
their unrecovered capital. As of December 31, 2008, the
unrecovered limited partner capital for Essex was
$1,890,000. The Company’s receivable of $2,958,000 is the
second priority of proceeds from the sale or liquidation on the
property. Until the limited partners have recovered their
capital contributions, any surplus cash is distributed first to the
limited partners up to $100,000, then a matching $100,000 to the general
partner, with any remaining split between the general partner and the
limited partners.
|
(d)
|
The
Company’s share of the economic ownership is
immaterial.
|
(e)
|
The
Company is currently eligible to receive $363,000 in distributions related
to the payment of a development fee. This amount receives
priority over return of equity to the partners but is subordinate to a
$3,000 per year preferred return to the minority partners. Upon
settlement of all priority items, balance is split 70% to the Company and
30% to the minority partners.
|
(f)
|
During the first quarter of 2009,
the Company executed purchase agreements for the sale of three of the five
U.S. Apartment Properties in Baltimore, Maryland for $29,200,000.
The Company has received non-binding offers of $6,598,000 and is
negotiating agreements for the remaining two
properties.
|
12/31/2008
|
||||||
Number
of
|
Percentage
|
Project
Cost
|
Occupancy
|
Expiration
|
Maximum
|
|
Apartment
|
of
|
(B)
(in
|
at
|
of
Subsidy
|
Subsidy
|
|
Units
|
Portfolio
|
thousands)
|
12/31/2008
|
Contract
|
(in
thousands)
|
|
Consolidated
Partnerships
|
||||||
San
Anton
|
184
|
7%
|
$ 5,643
|
100%
|
2010
|
$ 1,342
|
Monserrate
Associates
|
304
|
11%
|
12,944
|
99%
|
2009
|
2,700
|
Alturas
del Senorial
|
124
|
5%
|
5,191
|
99%
|
2009
|
1,096
|
Jardines
de Caparra
|
198
|
7%
|
8,157
|
99%
|
2010
|
1,662
|
Colinas
de San Juan
|
300
|
11%
|
12,702
|
100%
|
2011
|
2,144
|
Bayamon
Garden
|
280
|
11%
|
14,311
|
100%
|
2011
|
2,085
|
Vistas
del Turabo
|
96
|
4%
|
3,589
|
100%
|
2021
|
726
|
Monserrate
Tower II (A)
|
304
|
11%
|
13,666
|
100%
|
2020
|
2,554
|
Santa
Juana (A)
|
198
|
7%
|
8,230
|
99%
|
2020
|
1,685
|
Torre
De Las Cumbres (A)
|
155
|
6%
|
7,155
|
100%
|
2020
|
1,350
|
De
Diego (A)
|
198
|
8%
|
8,222
|
100%
|
2020
|
1,670
|
Valle
del Sol
|
312
|
12%
|
15,885
|
100%
|
2013
|
2,491
|
Total
|
2,653
|
100%
|
$ 115,695
|
$ 21,505
|
P.R.
APARTMENT PROPERTIES
|
Number
of Apartment Units
|
Operating
Revenues
|
Operating
Expenses (a)
|
Net
Operating Income
|
Non-Recourse
Mortgage Outstanding
|
Economic
Interest Upon Liquidation (b)
|
||||||||||||||||||||||
Consolidated
Partnerships
|
||||||||||||||||||||||||||||
Carolina,
Puerto Rico
|
||||||||||||||||||||||||||||
Monserrate
Associates
|
304 | $ | 2,785 | $ | 1,472 | $ | 1,313 | $ | 6,816 | 52.50 | % | |||||||||||||||||
Monserrate
Tower II (c)
|
304 | 2,637 | 1,420 | 1,217 | 9,861 | 50.00 | % |
(e)
|
||||||||||||||||||||
San
Anton
|
184 | 1,492 | 961 | 531 | 4,091 | 49.50 | % | |||||||||||||||||||||
San
Juan, Puerto Rico
|
||||||||||||||||||||||||||||
Alturas
Del Senorial
|
124 | 1,120 | 643 | 477 | 3,449 | 50.00 | % | |||||||||||||||||||||
Colinas
San Juan
|
300 | 2,164 | 1,072 | 1,092 | 9,380 | 50.00 | % | |||||||||||||||||||||
De
Diego (c)
|
198 | 1,748 | 995 | 753 | 5,457 | 50.00 | % |
(e)
|
||||||||||||||||||||
Torre
de Las Cumbres (c)
|
155 | 1,425 | 777 | 648 | 5,067 | 50.00 | % |
(e)
|
||||||||||||||||||||
Caguas,
Puerto Rico
|
||||||||||||||||||||||||||||
Santa
Juana (c)
|
198 | 1,832 | 1,042 | 790 | 7,036 | 50.00 | % |
(e)
|
||||||||||||||||||||
Vistas
Del Turabo (f) (g)
|
96 | 715 | 398 | 317 | 798 | 52.45 | % |
(d,e)
|
||||||||||||||||||||
Bayamon,
Puerto Rico
|
||||||||||||||||||||||||||||
Bayamon
Garden (f) (g)
|
280 | 2,113 | 1,064 | 1,049 | 9,151 | 50.00 | % | (d,e) | ||||||||||||||||||||
Jardines
De Caparra
|
198 | 1,756 | 964 | 792 | 6,233 | 50.00 | % |
(e)
|
||||||||||||||||||||
Valle
Del Sol (f) (g)
|
312 | 2,522 | 1,052 | 1,470 | 10,430 | 50.00 | % |
(d)
|
||||||||||||||||||||
Total
|
2,653 | $ | 22,309 | $ | 11,860 | $ | 10,449 | $ | 77,769 |
(a)
|
Amounts
exclude management fees eliminated in
consolidation.
|
(b)
|
Surplus
cash from operations and proceeds from sale or liquidation are allocated
based on the economic interest except those identified by additional
description.
|
(c)
|
Owned
by Carolina Associates
|
(d)
|
Upon
liquidation, the limited partners have a priority distribution equal to
their unrecovered capital. As of December 31, 2008, the
unrecovered limited partner capital in Bayamon Garden, Valle Del Sol and
Vistas Del Turabo were $918,000, $445,000, and $618,000,
respectively.
|
(e)
|
In
addition to normal operating receivables between the Company and the
Puerto Rico Apartment Properties, the Company has a receivable for
incentive management fees of $59,000 for Bayamon Gardens, $12,000 for
Jardines de Caparra, $47,000 for Torre de Las Cumbres, $60,000 for De
Diego Apartments, $60,000 for Santa Juana Apartments and $90,000 for
Monserrate Towers II.
|
(f)
|
In
addition to the receivable noted in (e) above, the Company has a notes
receivable from Valle del Sol and Vistas del Turabo amounting to $928,000
and $46,000, respectively. These receivables are the result of
unsecured development cost loans made to the Partnership to cover
acquisition and construction costs of the rental property in excess of the
permanent financing. Pursuant to the terms of the Partnership
agreement, the notes are non-interest bearing and are payable only by
proceeds from mortgage refinancing, partial condemnations, sales of
easements or similar interests or proceeds from sale of the properties,
but only after the payment of the debt and liabilities due to outsiders
and expenses of liquidation.
|
(g)
|
Distributions
from these partnerships are limited to an annual amount of $10,000,
$118,000 and $146,000 for Vistas Del Turabo, and Bayamon Gardens and Valle
del Sol, respectively.
|
Lot
Type
|
Estimated
Number of Lots
|
Approximate
Acreage
|
Entitlements
|
Estimated
Expected Date of Sale
|
Estimated
Aggregate Sales Price
|
|||
SMALLWOOD
VILLAGE
|
||||||||
Commercial,
Retail, Office:
|
||||||||
Henry
Ford Circle
|
Commercial
|
6
|
6.86
|
A
|
2010
- 2011
|
$1.2
- $1.4 million
|
||
Industrial:
|
||||||||
Industrial
Park North Tract 21, Parcel F
|
Light
Industrial
|
1
|
7.67
|
A
|
TBD
|
408K
|
||
Industrial
Park North Tract 23, Parcel A
|
Light
Industrial
|
1
|
2.27
|
A
|
TBD
|
229K
|
||
WESTLAKE
VILLAGE
|
||||||||
Commercial,
Retail, Office:
|
||||||||
Town
Center Parcel A3
|
Restaurant,
Office, Retail
|
3
|
4.37
|
A
|
2009
- 2012
|
$3.6
million
|
||
Parcel
M
|
Office,
Retail
|
1
|
2.61
|
A
|
2009
|
$450,000
|
||
Hampshire
Commercial Parcel Q
|
Commercial
|
1
|
9.94
|
C
|
TBD
|
$1.6
million
|
||
FAIRWAY
VILLAGE
|
||||||||
Residential
Lots:
|
||||||||
Sheffield
Parcel G/M1
|
SF
Detached
|
57
|
15.41
|
A
|
2009
– 2010
|
*
|
||
Sheffield
Parcel J
|
SF
Attached
|
98
|
22.71
|
B
|
2009
|
*
|
||
Gleneagles
Parcel A
|
Multi-Family
|
120
|
12.40
|
B
|
Internal
Use
|
N/A
|
||
Gleneagles
Parcel B
|
Multi-Family
|
184
|
13.00
|
B
|
Internal
Use
|
N/A
|
||
Gleneagles
Parcel D
|
SF
Detached
|
68
|
28.40
|
B
|
2009
- 2011
|
*
|
||
Gleneagles
Parcel E
|
SF
Detached
|
117
|
53.70
|
B
|
2009
- 2011
|
*
|
||
Gleneagles
Parcel C
|
SF
Attached
|
128
|
21.20
|
B
|
2010
- 2011
|
*
|
||
Gleneagles
Parcel F
|
SF
Detached
|
84
|
31.00
|
B
|
2009
- 2010
|
*
|
||
Gleneagles
South Neighborhood
|
SF
Attached
|
194
|
25.00
|
C
|
2011
- 2013
|
*
|
||
Gleneagles
South Neighborhood
|
SF
Detached
|
642
|
224.40
|
C
|
2010
- 2013
|
*
|
||
Gleneagles
South Neighborhood
|
Multi-Family
|
165
|
14.00
|
C
|
Internal
Use
|
N/A
|
||
Commercial,
Retail, Office:
|
||||||||
Middle
Business Park Parcel D
|
Office,
Commercial
|
14
|
22.5
|
B
|
TBD
|
TBD
|
||
Fairway
Village Center
|
Retail,
Commercial
|
1
|
93.90
|
B
|
TBD
|
TBD
|
||
Middle
Business Park Parcel B
|
Office,
Commercial
|
4
|
31.84
|
B
|
TBD
|
TBD
|
||
Middle
Business Park Parcel C
|
Office,
Commercial
|
3
|
15.48
|
B
|
TBD
|
TBD
|
||
VILLAGE
OF WOODED GLEN
|
||||||||
Residential
Parcels
|
TBD
|
7,155
|
1810.40
|
D
|
TBD
|
TBD
|
||
Wooded
Glen Village Center
|
Retail,
Commercial
|
1
|
30.00
|
C
|
TBD
|
TBD
|
||
VILLAGE
OF PINEY REACH
|
||||||||
Residential
Parcels
|
TBD
|
2,921
|
666.60
|
D
|
TBD
|
TBD
|
||
Piney
Reach Village Center
|
Retail,
Commercial
|
1
|
37.30
|
C
|
TBD
|
TBD
|
||
Piney
Reach Industrial Park
|
Industrial
|
1
|
76.18
|
C
|
2010
|
$13.0
million
|
||
Piney
Reach Industrial Park
|
Industrial
|
66
|
506.59
|
C
|
TBD
|
TBD
|
||
TOTAL
|
12,037
|
3,785.73
|
||||||
(A)
Sites are fully developed and ready for sale
|
||||||||
(B)
Completed master plan approval including all entitlements and received
preliminary site plan approval for development
|
||||||||
(C)
Completed master plan approval including all entitlements
|
||||||||
(D)
Completed master plan approval including all entitlements excluding school
allocations
|
||||||||
TBD
means To Be Determined.
|
||||||||
*Price
determined as a percentage of the "Base Selling Price" of the new home
constructed and sold on the lot per the terms of the sales agreement with
Lennar
Corporation.
|
·
|
In
December 2007, the Company executed the second amendment to the Lennar
Agreements (the “December Amendment”) whereby the Company agreed to accept
51 lot settlements in December 2007 in satisfaction of Lennar’s lot
purchase requirement for 2007, resulting in 78 total lots purchased by
Lennar during 2007. In addition, the Company agreed to
temporarily reduce the final lot price for 100 lots (51 purchased in
December 2007 and 49 purchased during the first six months of 2008)
from 30% to 22.5% of the base price of the home sold on the lot, with
guaranteed minimum prices of $78,000 per single family lot and $68,000 per
town home lot.
|
·
|
In
November 2008, the Company entered into the third amendment to the Lennar
Agreements modifying the minimum number of lots that Lennar is required to
purchase annually to 100 units, and increasing the minimum purchase price
for such lots from 22.5% to 25% from January 2009 until December 31,
2011. The amendment ended the exclusive relationship between
Lennar and the Company. With the termination of the exclusive
relationship between Lennar and the Company in November, 2008, we have
executed sales agreements with NVR, Inc., Richmond American Homes of
Maryland, Inc., and Riverview Builders, LLC for the sale of additional
lots in the first quarter of 2009. During 2008, 119 lots were
purchased by Lennar, which comprised 61 single-family lots and 58 town
home lots. All of the 2008 lot purchases were under the
terms of the December Amendment.
|
Current
Zoning
|
Lot
Type
|
Estimated
Number of Units/Parcels
|
Approximate
Acreage
|
Entitlements
|
Expected
Date
of Sale
|
Estimated
Asking
Sales Price
|
||
PARQUE
ESCORIAL
|
||||||||
Office
Park:
|
||||||||
Lot
IV-3b
|
Office
|
Office
|
1
|
2.7
|
A
|
TBD
|
$3.5
million
|
|
Residential:
|
||||||||
Hilltop
Phase I - 220 units
|
Residential
|
Residential
|
220
|
21.19
|
B
|
TBD
|
N/A
|
|
Hilltop
Phase II - 228 units
|
Residential
|
Residential
|
228
|
95.81
|
B
|
TBD
|
N/A
|
|
PARQUE
EL COMANDANTE
|
||||||||
Mixed-use
Lots:
|
||||||||
Phase
I - Quarry Site
|
Residential
|
Mixed-use
commercial
|
TBD
|
50.79
|
C
|
TBD
|
TBD
|
|
Phase
II - Route 66 North
|
Agricultural
|
Mixed-use
|
TBD
|
165.83
|
C
|
TBD
|
TBD
|
|
Residential
Lots:
|
||||||||
Phase
I - Quarry Site
|
Commercial
|
Residential
|
TBD
|
26.11
|
C
|
TBD
|
TBD
|
|
Phase
III - Route 66 South
|
Agricultural
|
Residential
|
TBD
|
209.14
|
C
|
TBD
|
TBD
|
|
Phase
IV - Out-Parcel
|
Agricultural
|
Residential
|
TBD
|
38.85
|
C
|
TBD
|
TBD
|
|
Total
|
610.42
|
|||||||
|
ITEM
1A.
|
ITEM
1B.
|
ITEM
2.
|
ITEM
3.
|
ITEM
4A.
|
Name
|
Age
|
Position
|
J.
Michael Wilson
|
43
|
Chairman
|
Stephen
K. Griessel
|
49
|
Chief
Executive Officer
|
Matthew
M. Martin
|
33
|
Chief
Financial Officer and Secretary
|
Eduardo
Cruz Ocasio
|
62
|
Senior
Vice President and Assistant Secretary
|
Jorge
Garcia Massuet
|
70
|
Vice
President
|
Harry
Chalstrom
|
48
|
Vice
President
|
Mark
L. MacFarland
|
39
|
Vice
President
|
Rafael
Velez
|
52
|
Vice
President
|
Price
Range of ACPT Shares
|
Dividends
|
|||||||
High
|
Low
|
Declared
|
||||||
2008
|
Quarter
|
|||||||
Fourth
|
$ 10.20
|
$ 3.10
|
$ 0.10
|
|||||
Third
|
14.25
|
10.20
|
-
|
|||||
Second
|
19.01
|
13.45
|
-
|
|||||
First
|
20.00
|
14.50
|
-
|
|||||
2007
|
Quarter
|
|||||||
Fourth
|
$ 25.75
|
$ 17.50
|
$ -
|
|||||
Third
|
27.59
|
19.22
|
0.10
|
|||||
Second
|
20.33
|
18.58
|
0.10
|
|||||
First
|
19.47
|
17.64
|
0.10
|
ITEM
6.
|
Year
Ended December 31,
|
||||||||||||||||||||
2008
|
2007
(1)
|
2006
(2)
|
2005
|
2004
|
||||||||||||||||
(In
thousands, except per share and operating data)
|
||||||||||||||||||||
Income
Statement Data:
|
||||||||||||||||||||
Total
operating revenues
|
$ | 82,914 | $ | 85,376 | $ | 98,163 | $ | 62,313 | $ | 49,011 | ||||||||||
Total
operating expenses
|
75,558 | 69,294 | 73,168 | 51,207 | 40,932 | |||||||||||||||
Operating
income
|
7,356 | 16,082 | 24,995 | 11,106 | 8,079 | |||||||||||||||
(Loss)
income before provision (benefit) for income taxes
|
(10,503 | ) | (848 | ) | 7,485 | 6,855 | 4,331 | |||||||||||||
Income
tax provision (benefit)
|
853 | (307 | ) | 2,894 | (690 | ) | 1,500 | |||||||||||||
Net
(loss) income
|
(11,356 | ) | (541 | ) | 4,591 | 7,545 | 2,831 | |||||||||||||
Earnings
(loss) per share
|
||||||||||||||||||||
Basic
|
$ | (2.18 | ) | $ | (0.10 | ) | $ | 0.88 | $ | 1.45 | $ | 0.55 | ||||||||
Diluted
|
$ | (2.18 | ) | $ | (0.10 | ) | $ | 0.88 | $ | 1.45 | $ | 0.55 | ||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Total
assets
|
$ | 355,193 | $ | 360,724 | $ | 346,699 | $ | 217,085 | $ | 184,027 | ||||||||||
Recourse
debt
|
39,416 | 25,589 | 29,351 | 32,818 | 27,192 | |||||||||||||||
Non-recourse
debt
|
276,120 | 279,981 | 270,720 | 119,865 | 98,879 | |||||||||||||||
Other
liabilities
|
38,316 | 42,708 | 30,774 | 29,912 | 29,065 | |||||||||||||||
Total
liabilities
|
353,852 | 348,278 | 330,845 | 182,595 | 155,136 | |||||||||||||||
Shareholders'
equity
|
1,341 | 12,446 | 15,854 | 34,490 | 28,891 | |||||||||||||||
Cash
dividends declared and paid per common share
|
$ | 0.10 | $ | 0.30 | $ | 0.83 | $ | 0.40 | $ | 0.35 | ||||||||||
Operating
Data:
|
||||||||||||||||||||
Rental
apartment units managed at end of period
|
7,225 | 7,225 | 7,693 | 7,491 | 7,406 | |||||||||||||||
Residential
lots sold
|
119 | 78 | 135 | 94 | 70 | |||||||||||||||
Residential
lots transferred to homebuilding
|
- | - | - | - | 160 | |||||||||||||||
Residential
lots transferred to joint venture
|
- | - | - | - | 352 | |||||||||||||||
Joint
venture lots delivered
|
- | 48 | 61 | 25 | - | |||||||||||||||
Residential
lots transferred to investment property division
|
- | - | - | 252 | - | |||||||||||||||
Commercial
and business park acres sold
|
4 | 12 | 15 | 11 | 3 | |||||||||||||||
Homes
sold
|
15 | 29 | 78 | 32 | 55 | |||||||||||||||
Net
operating income (3):
|
||||||||||||||||||||
U.S.
Operating Real Estate segment
|
21,326 | 19,181 | 16,433 | 11,766 | 10,478 | |||||||||||||||
Puerto
Rico Operating Real Estate segment (5)
|
11,216 | 10,873 | 10,561 | - | - | |||||||||||||||
Funds
from Operations (4):
|
||||||||||||||||||||
U.S.
Operating Real Estate segment
|
6,757 | 7,588 | 7,147 | 6,420 | 4,451 | |||||||||||||||
Puerto
Rico Operating Real Estate segment (5)
|
2,335 | 1,940 | 1,199 | - | - |
U.S.
Operating Real Estate Segment
|
||||||||||||||||||||
Net
income
|
$ | 675 | $ | 1,996 | $ | 2,538 | $ | 2,593 | $ | 1,239 | ||||||||||
Depreciation
|
6,082 | 5,592 | 4,609 | 3,827 | 3,212 | |||||||||||||||
FFO
|
$ | 6,757 | $ | 7,588 | $ | 7,147 | $ | 6,420 | $ | 4,451 | ||||||||||
Puerto
Rico Operating Real Estate Segment (5)
|
||||||||||||||||||||
Net
loss
|
$ | (1,434 | ) | $ | (254 | ) | $ | (2,416 | ) | - | - | |||||||||
Depreciation and
unconsolidated partnership adjustment
|
3,769 | 2,194 | 3,615 | - | - | |||||||||||||||
FFO
|
$ | 2,335 | $ | 1,940 | $ | 1,199 | - | - |
(1)
|
The
financial statements as of and for the year ended December 31, 2007
reflect the adoption of Financial Accounting Standards Board
Interpretation No. 48 “Account for Uncertainty in Income Taxes” (“FIN 48”)
on January 1, 2007 (Refer to Note 3 and 11 of our Consolidated
Financial Statements contained in Item 8 of this Annual Report on Form
10-K).
|
(2)
|
The
financial statements as of and for the year ended December 31, 2006
reflect the adoption of Emerging Issues Task Force 04-05, “Determining Whether a General
Partner as a Group Controls a Limited Partnership or Similar Entity When
The Limited Partners Have Certain Rights” (“EITF 04-05”) on January
1, 2006 (Refer to Note 3 of our Consolidated Financial Statements in Item
8 of this Annual Report on Form 10-K
).
|
(3)
|
Net
Operating Income (“NOI”), defined as real estate rental revenue less real
estate operating expenses, is the primary performance measure we use to
assess the results of our operations. When considered with the
financial statements prepared in accordance with principles of accounting
generally accepted in the United States (“GAAP”), it is helpful to
investors in understanding our performance because it captures the
performance of our real estate operations in a measure that is comparable
with other entities that have different capitalization. We
provide NOI as a supplement to operating income and net income calculated
in accordance with GAAP. NOI does not represent operating
income or net income calculated in accordance with GAAP. As
such, it should not be considered an alternative to operating income or
net income as an indication of our operating performance. See “Results of Operations” for the U.S. and
Puerto Rican Real Estate Operating segments for a reconciliation of NOI to
operating income.
|
(4)
|
FFO
is a non-GAAP financial measure that we believe, when considered with the
financial statements prepared in accordance with GAAP, is helpful to
investors in understanding our performance because it captures features
particular to real estate performance by recognizing that real estate
generally appreciates over time or maintains residual value to a much
greater extent than do other depreciable assets such as machinery,
computers or other personal property. We compute FFO in
accordance with the Board of Governors of the National Association of Real
Estate Investment Trusts, or NAREIT, which defines FFO as net income
(loss), computed in accordance with GAAP, excluding gains (or losses) from
sales of depreciable property, plus depreciation and amortization, and
after adjustments for unconsolidated partnerships and joint
ventures.
|
(5)
|
Puerto
Rico rental property operations were unconsolidated for the years ended
December 31, 2004 and 2005.
|
For the years ended | ||||||||
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating revenues
|
$ | 39,515 | $ | 38,416 | ||||
Operating expenses
|
18,189 | 19,235 | ||||||
Net
operating income
|
21,326 | 19,181 | ||||||
Management and other fees, substantially all from related
entities
|
157 | 194 | ||||||
General,
administrative, selling and marketing
|
(1,441 | ) | (2,252 | ) | ||||
Impairment
charges
|
(1,256 | ) | - | |||||
Depreciation
and amortization
|
(6,082 | ) | (5,592 | ) | ||||
Operating
income
|
12,704 | 11,531 | ||||||
Other
expenses
|
(10,405 | ) | (9,998 | ) | ||||
Income
before benefit for income taxes
|
2,299 | 1,533 | ||||||
Provision
(benefit) for income taxes
|
1,624 | (463 | ) | |||||
Net income
|
$ | 675 | $ | 1,996 | ||||
Depreciation
|
6,082 | 5,592 | ||||||
FFO
|
$ | 6,757 | $ | 7,588 |
For the years ended | ||||||||
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating revenues
|
$ | 22,728 | $ | 22,306 | ||||
Operating expenses
|
11,512 | 11,433 | ||||||
Net
operating income
|
11,216 | 10,873 | ||||||
Management
and other fees, substantially all from related entities
|
624 | 635 | ||||||
General,
administrative, selling and marketing
|
(3,631 | ) | (3,159 | ) | ||||
Depreciation
and amortization
|
(3,769 | ) | (3,694 | ) | ||||
Operating
income
|
4,440 | 4,655 | ||||||
Other
expenses
|
(5,837 | ) | (4,536 | ) | ||||
(Loss)
income before benefit for income taxes
|
(1,397 | ) | 119 | |||||
Provision
for income taxes
|
37 | 373 | ||||||
Net
loss
|
$ | (1,434 | ) | $ | (254 | ) | ||
Depreciation
and unconsolidated entity adjustment
|
3,769 | 2,194 | ||||||
FFO
|
$ | 2,335 | $ | 1,940 |
For the years ended | ||||||||
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$ | 14,726 | $ | 14,486 | ||||
Management
and other fees, substantially all from related entities
|
- | 142 | ||||||
Total
revenues
|
14,726 | 14,628 | ||||||
Operating
expenses
|
||||||||
Cost
of land sales
|
9,572 | 11,169 | ||||||
General,
administrative, selling and marketing
|
3,558 | 2,734 | ||||||
Depreciation
and amortization
|
5 | 5 | ||||||
Total
expenses
|
13,135 | 13,908 | ||||||
Operating
income
|
1,591 | 720 | ||||||
Other
expenses
|
(2,584 | ) | (2,056 | ) | ||||
Loss
before benefit for income taxes
|
(993 | ) | (1,336 | ) | ||||
Benefit
for income taxes
|
(406 | ) | (654 | ) | ||||
Net
loss
|
$ | (587 | ) | $ | (682 | ) |
|
Gross
Margin on Land Sales
|
For the years ended | ||||||||
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$ | 3,730 | $ | 7,580 | ||||
Operating
expenses
|
||||||||
Cost
of home sales
|
2,898 | 5,549 | ||||||
General,
administrative, selling and marketing
|
341 | 503 | ||||||
Impairment
charges
|
6,200 | - | ||||||
Total
expenses
|
9,439 | 6,052 | ||||||
Operating
income
|
(5,709 | ) | 1,528 | |||||
Other
income
|
698 | 1,085 | ||||||
(Loss)
Income before benefit for income taxes
|
(5,011 | ) | 2,613 | |||||
Provision
for income taxes
|
- | - | ||||||
Net
(loss) income
|
$ | (5,011 | ) | $ | 2,613 |
·
|
For
certain subsidiaries, losses were experienced in 2008, 2007, and
2006. As indicated above, in making the assessment of the
realizability of deferred tax assets the Company assessed reversing
temporary differences, available tax planning strategies and estimates of
future taxable income. The recent financial operating losses of
certain subsidiaries was heavily weighted and, accordingly, as of December
31, 2008 there was little or no weight to subjectively determine
projections of future taxable income exclusive of reversing temporary
differences for certain subsidiaries in cumulative loss situation.
Tax planning strategies have not been a necessary consideration
historically and, in certain cases, have not been employed in the current
analysis. The
Company does not record a deferred tax valuation allowance relating to the
net unrealized losses on limited partnership investments because it is
more likely than not that these losses would reverse or be used in future
periods through tax planning strategies that could be implemented by the
subsidiary.
|
·
|
For
other certain subsidiaries which were not in a cumulative loss situations,
but for which benefits were recorded for NOL and tax credit carryforwards,
the Company assessed the reversing of temporary
differences. Not all of these subsidiaries could reasonably
predict future taxable income in the near term nor were tax planning
strategies an option.
|
Years
Ended December 31,
|
|||||||||
2008
|
2007
|
||||||||
Operating
Activities
|
$ | (7,319 | ) | $ | (5,466 | ) | |||
Investing
Activities
|
(4,773 | ) | (7,350 | ) | |||||
Financing
Activities
|
11,215 | 10,269 | |||||||
Net
Decrease in Cash
|
$ | (877 | ) | $ | (2,547 | ) |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Revenues
|
||||||||
Rental
property revenues
|
$ | 62,243 | $ | 60,722 | ||||
Community
development-land sales
|
14,726 | 14,486 | ||||||
Homebuilding-home
sales
|
3,730 | 7,580 | ||||||
Management
and other fees, substantially all from related entities
|
754 | 941 | ||||||
Reimbursement
of expenses related to managed entities
|
1,461 | 1,647 | ||||||
Total
revenues
|
82,914 | 85,376 | ||||||
Expenses
|
||||||||
Rental
property operating expenses
|
29,679 | 30,644 | ||||||
Cost
of land sales
|
9,572 | 11,169 | ||||||
Cost
of home sales
|
2,898 | 5,549 | ||||||
General,
administrative, selling and marketing
|
14,483 | 10,847 | ||||||
Depreciation
and amortization
|
10,009 | 9,438 | ||||||
Impairment
charges
|
7,456 | - | ||||||
Expenses
reimbursed from managed entities
|
1,461 | 1,647 | ||||||
Total
expenses
|
75,558 | 69,294 | ||||||
Operating
Income
|
7,356 | 16,082 | ||||||
Other
income (expense)
|
||||||||
Interest
and other income
|
623 | 1,392 | ||||||
Equity
in earnings from unconsolidated entities
|
657 | 2,192 | ||||||
Interest
expense
|
(17,405 | ) | (18,726 | ) | ||||
Minority
interest in consolidated entities
|
(1,734 | ) | (1,788 | ) | ||||
Loss
before provision (benefit) for income taxes
|
(10,503 | ) | (848 | ) | ||||
Provision
(benefit) for income taxes
|
853 | (307 | ) | |||||
Net
loss
|
$ | (11,356 | ) | $ | (541 | ) | ||
Loss
per share –Basic and Diluted
|
$ | (2.18 | ) | $ | (0.10 | ) | ||
Weighted
average shares outstanding:
|
||||||||
Basic
and Diluted
|
5,217 | 5,207 | ||||||
Cash
dividends per share
|
$ | 0.10 | $ | 0.30 | ||||
The
accompanying notes are an integral part of these consolidated
statements.
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(In
thousands, except share and per share amounts)
|
||||||||
As
of
December
31, 2008
|
As
of
December
31, 2007
|
|||||||
ASSETS
|
||||||||
ASSETS:
|
||||||||
Investments
in real estate:
|
||||||||
Operating
real estate, net of accumulated depreciation
|
||||||||
of
$159,202 and $150,292, respectively
|
$ | 156,728 | $ | 164,352 | ||||
Land
and development costs
|
96,266 | 84,911 | ||||||
Condominiums
under construction
|
1,745 | 4,460 | ||||||
Rental
projects under construction or development
|
4,564 | 853 | ||||||
Investments
in real estate, net
|
259,303 | 254,576 | ||||||
Cash
and cash equivalents:
|
||||||||
Cash
and cash equivalents – Direct Control
|
12,257 | 13,935 | ||||||
Cash
and cash equivalents – Multifamily Apartment Entities
|
11,778 | 10,977 | ||||||
Cash
and cash equivalents
|
24,035 | 24,912 | ||||||
Restricted
cash and escrow deposits
|
20,599 | 20,223 | ||||||
Investments
in unconsolidated real estate entities
|
5,121 | 6,528 | ||||||
Receivable
from bond proceeds
|
2,052 | 5,404 | ||||||
Accounts
receivable, net
|
1,445 | 2,676 | ||||||
Deferred
tax assets
|
32,799 | 34,075 | ||||||
Property
and equipment, net of accumulated depreciation
|
920 | 1,045 | ||||||
Deferred
charges and other assets, net of amortization of
|
||||||||
$3,611
and $2,764, respectively
|
8,919 | 11,285 | ||||||
Total
Assets
|
$ | 355,193 | $ | 360,724 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES:
|
||||||||
Non-recourse
debt
|
$ | 276,120 | $ | 279,981 | ||||
Recourse
debt
|
39,416 | 25,589 | ||||||
Accounts
payable and accrued liabilities
|
23,361 | 24,874 | ||||||
Deferred
income
|
200 | 3,214 | ||||||
Accrued
current income tax liability
|
14,755 | 14,620 | ||||||
Total
Liabilities
|
353,852 | 348,278 | ||||||
SHAREHOLDERS'
EQUITY
|
||||||||
Common
shares, $.01 par value, 10,000,000 shares authorized,
|
||||||||
5,229,954
shares issued and outstanding
|
||||||||
as
of December 31, 2008 and December 31, 2007
|
52 | 52 | ||||||
Treasury
stock, 67,709 shares at cost
|
(376 | ) | (376 | ) | ||||
Additional
paid-in capital
|
18,144 | 17,377 | ||||||
Retained
(deficit) earnings
|
(16,479 | ) | (4,607 | ) | ||||
Total
Shareholders' Equity
|
1,341 | 12,446 | ||||||
Total
Liabilities and Shareholders' Equity
|
$ | 355,193 | $ | 360,724 |
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||||||||||||||||||
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
(In
thousands, except share amounts)
|
||||||||||||||||||||||||
Common Shares
|
Additional
|
Retained
|
||||||||||||||||||||||
Par
|
Treasury
|
Paid-in
|
(Deficit)
|
|||||||||||||||||||||
Number
|
Value
|
Stock
|
Capital
|
Earnings
|
Total
|
|||||||||||||||||||
Balance
December 31, 2006
|
5,229,954 | $ | 52 | $ | (376 | ) | $ | 17,238 | $ | (1,060 | ) | $ | 15,854 | |||||||||||
Net loss
|
- | - | - | - | (541 | ) | (541 | ) | ||||||||||||||||
Dividends Paid
|
- | - | - | - | (1,548 | ) | (1,548 | ) | ||||||||||||||||
Cumulative effect of change in accounting for FIN 48
|
- | - | - | - | (1,458 | ) | (1,458 | ) | ||||||||||||||||
Vesting of restricted trustee shares
|
- | - | - | 139 | - | 139 | ||||||||||||||||||
Balance
December 31, 2007
|
5,229,954 | 52 | (376 | ) | 17,377 | (4,607 | ) | 12,446 | ||||||||||||||||
Net loss
|
- | - | - | - | (11,356 | ) | (11,356 | ) | ||||||||||||||||
Dividends paid
|
- | - | - | - | (516 | ) | (516 | ) | ||||||||||||||||
Equity Compensation
|
- | - | - | 767 | - | 767 | ||||||||||||||||||
Balance
December 31, 2008
|
5,229,954 | $ | 52 | $ | (376 | ) | $ | 18,144 | $ | (16,479 | ) | $ | 1,341 | |||||||||||
The
accompanying notes are an integral part of these consolidated
statements.
|
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
loss
|
$ | (11,356 | ) | $ | (541 | ) | ||
Adjustments
to reconcile net loss to net cash used in
|
||||||||
operating
activities:
|
||||||||
Depreciation
and amortization
|
10,009 | 9,438 | ||||||
Distribution
to minority interests in excess of basis
|
1,587 | 1,988 | ||||||
Benefit
for deferred income taxes
|
1,276 | (6,044 | ) | |||||
Equity
in earnings-unconsolidated entities
|
(657 | ) | (2,191 | ) | ||||
Distribution
of earnings from unconsolidated entities
|
737 | 692 | ||||||
Cost
of land sales
|
9,572 | 11,169 | ||||||
Cost
of home sales
|
2,898 | 5,549 | ||||||
Impairment
charges
|
7,456 | - | ||||||
Stock
based compensation expense
|
500 | 12 | ||||||
Amortization
of deferred loan costs
|
863 | 920 | ||||||
Changes
in notes and accounts receivable
|
1,231 | 1,644 | ||||||
Additions
to community development assets
|
(27,127 | ) | (30,087 | ) | ||||
Right
of way easement
|
- | 2,000 | ||||||
Homebuilding-construction
expenditures
|
(183 | ) | (744 | ) | ||||
Deferred
income-joint venture
|
(3,014 | ) | (377 | ) | ||||
Changes
in accounts payable, accrued liabilities
|
(1,111 | ) | 1,106 | |||||
Net
cash used in operating activities
|
(7,319 | ) | (5,466 | ) | ||||
Cash
Flows from Investing Activities
|
||||||||
Investment
in rental property construction
|
(3,711 | ) | (598 | ) | ||||
Change
in investments - unconsolidated entities
|
1,327 | 1,562 | ||||||
Cash
from newly consolidated properties
|
- | - | ||||||
Change
in restricted cash
|
(376 | ) | (546 | ) | ||||
Additions
to rental operating properties, net
|
(3,337 | ) | (7,542 | ) | ||||
Other
assets
|
1,324 | (226 | ) | |||||
Net
cash used in investing activities
|
(4,773 | ) | (7,350 | ) | ||||
Cash
Flows from Financing Activities
|
||||||||
Cash
proceeds from debt financing
|
12,395 | 24,957 | ||||||
Payment
of debt
|
(3,896 | ) | (21,129 | ) | ||||
County
Bonds proceeds, net of undisbursed funds
|
4,819 | 9,977 | ||||||
Payments
of distributions to minority interests
|
(1,587 | ) | (1,988 | ) | ||||
Dividends
paid to shareholders
|
(516 | ) | (1,548 | ) | ||||
Net
cash provided by financing activities
|
11,215 | 10,269 | ||||||
Net
Decrease in Cash and Cash Equivalents
|
(877 | ) | (2,547 | ) | ||||
Cash
and Cash Equivalents, Beginning of Year
|
24,912 | 27,459 | ||||||
Cash
and Cash Equivalents, End of Year
|
$ | 24,035 | $ | 24,912 |
(1)
|
ORGANIZATION
|
1.
|
a
100% ownership interest in St. Charles Community LLC ("SCC LLC"), which
holds approximately 3,790 acres of land in St. Charles,
Maryland;
|
2.
|
the
Class B interest in Interstate General Properties Limited Partnership
S.E., a Maryland limited partnership ("IGP"), that represents IGP's rights
to income, gains and losses associated with the balance of the residential
land in our Parque Escorial property in Puerto Rico held by Land
Development Associates, S.E. ("LDA"), a wholly owned subsidiary of
IGP;
|
3.
|
through
November 19, 2008, a 50% interest, through SCC LLC, in a land
development joint venture, St. Charles Active Adult Community, LLC
(“Active Adult Community”). ACPT sold its interest in Active
Adult Community to Lennar Corporation (“Lennar”) in the fourth quarter
2008; and
|
4.
|
effective
on October 28, 2008, a 50% interest in Surrey Homes, LLC (“Surrey Homes”),
which is a homebuilding company that was created to meet the needs of
developing communities in central Florida with a lot option, low overhead
model.
|
1.
|
a
100% ownership interest in LDA, a Puerto Rico special partnership which
holds 120 acres of land in the planned community of Parque Escorial in
Carolina, Puerto Rico (“Parque Escorial”) and 490 acres of land in
Canovanas, Puerto Rico;
|
2.
|
general
partner interests in nine partnerships, which collectively own and operate
a total of 12 multifamily rental facilities in Puerto Rico (the
“Puerto Rico Apartment Properties”), and a limited partner interest in two
of these partnerships;
|
3.
|
a
100% ownership interest in Escorial Office Building I, Inc. (“EOBI”), and,
through LDA and IGP, a 100% ownership interest in a Puerto Rico
corporation that operates a three-story, 56,000 square foot office
building in Carolina Puerto Rico;
|
4.
|
a
100% ownership interest in ICP, an entity that holds the partnership
interest in El Monte Properties S.E.
(“EMP”);
|
5.
|
a
limited partner interest in ELI, S.E. ("ELI"), an entity that holds a
45.26% share in the future cash flow generated from a 30-year lease of an
office building to the State Insurance Fund of the Government of Puerto
Rico; and
|
6.
|
an
indirect 100% ownership interest, through LDA and IGP, in Torres del
Escorial, Inc. ("Torres"), a Puerto Rico corporation organized to build
160 condominium units.
|
(2)
|
LIQUIDITY
RESOURCES AND DEBT MATURITIES
|
(3)
|
BASIS
OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
|
Alturas
del Senorial Associates Limited Partnership
|
Land
Development Associates S.E.
|
|
American
Housing Management Company
|
LDA
Group, LLC
|
|
American
Housing Properties L.P.
|
Milford
Station I, LLC
|
|
Bannister
Associates Limited Partnership
|
Milford
Station II, LLC
|
|
Bayamon
Garden Associates Limited Partnership
|
Monserrate
Associates Limited Partnership
|
|
Carolina
Associates Limited Partnership S.E.
|
New
Forest Apartments, LLC
|
|
Coachman's
Apartments, LLC
|
Nottingham
South, LLC
|
|
Colinas
de San Juan Associates Limited Partnership
|
Owings
Chase, LLC
|
|
Crossland
Associates Limited Partnership
|
Palmer
Apartments Associates Limited Partnership
|
|
Escorial
Office Building I, Inc.
|
Prescott
Square, LLC
|
|
Essex
Apartments Associates Limited Partnership
|
St.
Charles Community, LLC
|
|
Fox
Chase Apartments, LLC
|
San
Anton Associates S.E.
|
|
Gleneagles
Apartments, LLC
|
Sheffield
Greens Apartments, LLC
|
|
Headen
House Associates Limited Partnership
|
Torres
del Escorial, Inc.
|
|
Huntington
Associates Limited Partnership
|
Turabo
Limited Dividend Partnership
|
|
Interstate
Commercial Properties, Inc.
|
Valle
del Sol Associates Limited Partnership
|
|
Interstate
General Properties Limited Partnership, S.E.
|
Village
Lake Apartments, LLC
|
|
Jardines
de Caparra Associates Limited Partnership
|
Wakefield
Terrace Associates Limited Partnership
|
|
Lancaster
Apartments Limited Partnership
|
Wakefield
Third Age Associates Limited
Partnership
|
·
|
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.
|
December
31,
|
||||||||
2008
|
2007
|
|||||||
Building
|
$ | 266,071 | $ | 265,115 | ||||
Building
improvements
|
10,599 | 10,414 | ||||||
Equipment
|
13,749 | 13,603 | ||||||
290,419 | 289,132 | |||||||
Less: Accumulated
depreciation
|
159,202 | 150,292 | ||||||
131,217 | 138,840 | |||||||
Land
|
25,511 | 25,512 | ||||||
Operating
properties, net
|
$ | 156,728 | $ | 164,352 |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Net
loss
|
$ | (11,356 | ) | $ | (541 | ) | ||
Weighted
average shares outstanding:
|
||||||||
Basic
and Diluted
|
5,217 | 5,207 | ||||||
Loss
per share:
|
||||||||
Basic
and Diluted
|
$ | (2.18 | ) | $ | (0.10 | ) |
(4)
|
INVESTMENT
IN UNCONSOLIDATED REAL ESTATE
ENTITIES
|
Land | ||||||||||||||||
Apartment
|
Commercial
|
Development/
|
||||||||||||||
Properties
|
Property
|
Homebuilding
|
Total
|
|||||||||||||
(in
thousands)
|
||||||||||||||||
Summary
Financial Position:
|
||||||||||||||||
Total
Assets
|
||||||||||||||||
December
31, 2008
|
$ | 4,781 | $ | 27,005 | $ | 2,478 | $ | 34,264 | ||||||||
December
31, 2007
|
4,980 | 27,379 | 12,397 | 44,756 | ||||||||||||
Total
Non-Recourse Debt
|
||||||||||||||||
December
31, 2008
|
3,123 | 22,380 | - | 25,503 | ||||||||||||
December
31, 2007
|
3,189 | 22,960 | 4,722 | 30,871 | ||||||||||||
Total
Other Liabilities
|
||||||||||||||||
December
31, 2008
|
960 | 153 | - | 1,113 | ||||||||||||
December
31, 2007
|
976 | 147 | 741 | 1,864 | ||||||||||||
Total
Equity
|
||||||||||||||||
December
31, 2008 (2)
|
698 | 4,472 | 2,478 | 7,648 | ||||||||||||
December
31, 2007 (2)
|
815 | 4,272 | 6,934 | 12,021 | ||||||||||||
Company's
Investment, net (1)
|
||||||||||||||||
December
31, 2008
|
- | 4,632 | 489 | 5,121 | ||||||||||||
December
31, 2007
|
(1 | ) | 4,701 | 1,828 | 6,528 |
Summary
of Operations:
|
||||||||||||||||
Total
Revenue
|
||||||||||||||||
Year
Ended December 31, 2008
|
827 | 3,567 | 1,626 | 6,020 | ||||||||||||
Year
Ended December 31, 2007
|
811 | 3,636 | 4,983 | 9,430 | ||||||||||||
Net
Income (Loss)
|
||||||||||||||||
Year
Ended December 31, 2008
|
(118 | ) | 1,826 | (22 | ) | 1,686 | ||||||||||
Year
Ended December 31, 2007
|
(141 | ) | 1,869 | - | 1,728 | |||||||||||
Company's
recognition of equity in
|
||||||||||||||||
Earnings
(Loss)
|
||||||||||||||||
Year
Ended December 31, 2008
|
(1 | ) | 669 | (11 | ) | 657 | ||||||||||
Year
Ended December 31, 2007
|
(1 | ) | 692 | - | 691 | |||||||||||
Summary
of Cash Flows:
|
||||||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Year
Ended December 31, 2008
|
90 | 1,814 | 1,576 | 3,480 | ||||||||||||
Year
Ended December 31, 2007
|
101 | 1,864 | 3,977 | 5,942 | ||||||||||||
Company's
share of cash flows from
|
||||||||||||||||
operating
activities
|
||||||||||||||||
Year
Ended December 31, 2008
|
1 | 821 | 788 | 1,610 | ||||||||||||
Year
Ended December 31, 2007
|
1 | 844 | 1,989 | 2,834 | ||||||||||||
Operating
cash distributions
|
||||||||||||||||
Year
Ended December 31, 2008
|
- | 1,625 | - | 1,625 | ||||||||||||
Year
Ended December 31, 2007
|
- | 1,641 | - | 1,641 | ||||||||||||
Company's
share of operating
|
||||||||||||||||
cash
distributions
|
||||||||||||||||
Year
Ended December 31, 2008
|
- | 737 | - | 737 | ||||||||||||
Year
Ended December 31, 2007
|
- | 754 | - | 754 |
(1)
|
Represents
the Company's net investment, including assets and accrued liabilities in
the consolidated balance sheet for unconsolidated real estate
entities.
|
(2)
|
In
December 2007, the Company made a $300,000 equity contribution to Lakeside
which was used by Lakeside to pay an equal portion of the Development Fee
owed to the Company. The Company both contributed and received
the cash, and accordingly, the Company did not recognize fee income nor
change its investment balance in
Lakeside.
|
(5)
|
DEBT
|
Maturity
|
Interest
|
Outstanding
as of
|
||||||||||||||
Dates
|
Rates
|
December
31,
|
December
31,
|
|||||||||||||
From/To
|
From/To
|
2008
|
2007
|
|||||||||||||
Recourse
Debt
|
||||||||||||||||
Community
Development (a)(b)(c)(d)
|
04-15-09/03-01-23
|
3.25%/8% | $ | 39,232 | $ | 25,490 | ||||||||||
General
obligations (e)
|
06-01-09/03-13-12
|
Non-interest
|
||||||||||||||
bearing/8.55%
|
184 | 99 | ||||||||||||||
Total
Recourse Debt
|
39,416 | 25,589 | ||||||||||||||
Non-Recourse
Debt
|
||||||||||||||||
Investment
Properties (f)(g)
|
04-30-09/08-01-47
|
4.95%/10%
|
276,120 | 279,981 | ||||||||||||
Total
Non-Recourse Debt
|
276,120 | 279,981 | ||||||||||||||
Total
debt
|
$ | 315,536 | $ | 305,570 |
a)
|
As
of December 31, 2008, $25,232,000 of the community development recourse
debt is owed to Charles County Commissioners and relates to the general
obligation bonds issued by the Charles County government, with 15 year
amortization of maturities, with the earliest in June 2019, as
described in detail under the heading "Financial Commitments" in Note
6. As of December 31, 2008, the Company has a receivable balance
related to the bonds of $2,052,000.
|
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, MD. The
maximum amount of the loan at any one time is $14,000,000, bears interest
at Prime plus 0.75% (4.00% at December 31, 2008) and was set to mature on April 14, 2009 but has
been extended to March 31, 2010. The facility includes
various sub-limits on a revolving basis for amounts to finance apartment
project acquisitions and land development in St. Charles. The
terms require certain financial covenants to be calculated annually as of
December 31, including a tangible net worth to senior debt ratio for ALD
and a minimum net worth test for ACPT. As of December 31, 2008,
$6,571,000 was outstanding on the Revolver. During the first quarter of
2009, the Company renegotiated the terms of the agreement. See
Note 2 for further discussion.
|
c)
|
LDA
has a $10,000,000 revolving line of credit facility that bears interest at
a fluctuating rate equivalent to the LIBOR Rate plus 225 basis points
(4.1% as of December 31, 2008) and matures on August 31,
2009. The facility is to be used to fund the development of
infrastructure of Parque Escorial and Parque El Comandante. The
outstanding balance of this facility on December 31, 2008, was
$4,327,000. See Note 2 for further
discussion.
|
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 December
31, 2008). 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
December 31, 2008, $3,102,000 was outstanding under this facility leaving
$498,000 available to fund completion of the building. As of
December 31, 2008, the building was substantially
complete.
|
e)
|
The
general recourse debt outstanding as of December 31, 2008, 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 December 31, 2008, approximately $73,642,000 of
this debt is secured by the Federal Housing Administration ("FHA") or the
Maryland Housing Fund. $10,732,000 of the non-recourse debt
balance is due in 2009.
|
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 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.
|
2009
|
$ | 23,307 | ||
2010
|
9,039 | |||
2011
|
6,290 | |||
2012
|
6,653 | |||
2013
|
17,836 | |||
Thereafter
|
252,411 | |||
$ | 315,536 |
December
31,
|
||||||||
2008
|
2007
|
|||||||
Expensed
|
$ | 17,405 | $ | 18,726 | ||||
Capitalized
|
2,776 | 1,451 | ||||||
$ | 20,181 | $ | 20,177 |
(6)
|
COMMITMENTS
AND CONTINGENT LIABILITIES
|
(7)
|
LEASES
|
Operating
|
||||
Obligations
|
||||
2009
|
$ | 358 | ||
2010
|
250 | |||
2011
|
42 | |||
2012
|
3 | |||
Total
minimum lease payments
|
$ | 653 |
Lease
|
||||
Income
|
||||
2009
|
$ | 788 | ||
2010
|
841 | |||
2011
|
674 | |||
2012
|
632 | |||
2013
|
644 | |||
Thereafter
|
1,007 | |||
Total
minimum lease payments
|
$ | 4,586 |
(8)
|
RELATED
PARTY TRANSACTIONS
|
CONSOLIDATED
STATEMENT OF INCOME:
|
||||||||
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Management and Other
Fees (A)
|
||||||||
Unconsolidated
subsidiaries with third party partners
|
$ | 43 | $ | 42 | ||||
Affiliates
of J. Michael Wilson, Chairman
|
- | 43 | ||||||
$ | 43 | $ | 85 | |||||
Rental Property
Revenues (B)
|
$ | 36 | $ | 57 | ||||
Interest and Other Income
|
||||||||
Unconsolidated
real estate entities with third party partners
|
$ | 8 | $ | 8 |
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
|||||||||||
General and Administrative
Expense
|
||||||||||||
Reserve
additions and other write-offs-
|
||||||||||||
Unconsolidated
real estate entities with third party partners
|
(A)
|
$ | (16 | ) | $ | 43 | ||||||
Reimbursement
to IBC for ACPT's share of
|
||||||||||||
J.
Michael Wilson's compensation
|
415 | 390 | ||||||||||
Reimbursement
of administrative costs-
|
||||||||||||
Affiliates
of J. Michael Wilson, Chairman
|
(18 | ) | (23 | ) | ||||||||
Legal
fees paid to J. Michael Wilson’s attorney
|
(C3 | ) | - | 225 | ||||||||
Consulting
Fees -
|
||||||||||||
James
J. Wilson, IWT Chairman
|
(C1 | ) | 150 | 200 | ||||||||
Thomas
J. Shafer, Trustee
|
(C2 | ) | 60 | 60 | ||||||||
$ | 591 | $ | 895 |
BALANCE
SHEET:
|
Balance
|
Balance
|
|||||||
December
31,
|
December
31,
|
||||||||
2008
|
2007
|
||||||||
Other Assets
|
|||||||||
Receivables
- All unsecured and due on demand
|
|||||||||
Unconsolidated
subsidiaries
|
$ | 10 | $ | - | |||||
Affiliate
of J. Michael Wilson, Chairman
|
2 | 5 | |||||||
$ | 12 | $ | 5 | ||||||
Additional
Paid-in Capital
|
(C4)
|
$ | 562 | $ | - |
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)
|
The
Independent Trustees concluded that certain legal fees and expenses
incurred by J. Michael Wilson in connection with the preliminary work
being done in seeking a strategic partner to recapitalize the Company are
in the best interest of the Company and the minority
shareholders. Accordingly, the Independent Trustees authorized
the Company to fund up to $225,000 of such costs, all of which have been
incurred as of December 31, 2007.
|
4)
|
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. According to SFAS 123(R), 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 under SFAS123(R) 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 has recognized $562,000 in compensation expense in 2008 related to this grant. |
(9)
|
SHARE
GRANTS AND APPRECIATION RIGHTS
|
(10)
|
RETIREMENT
AND PROFIT SHARING PLANS
|
(11)
|
INCOME
TAXES
|
December
31,
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
%
of
|
%
of
|
|||||||||||||||
Amount
|
Income
|
Amount
|
Income
|
|||||||||||||
Taxes
at statutory U.S. federal
|
||||||||||||||||
income tax rate
|
$ | (3,676 | ) |
35.0
|
% | $ | (297 | ) | 35.0 | % | ||||||
State
income taxes, net of
|
||||||||||||||||
federal tax benefit
|
(213 | ) |
2.0
|
% | (128 | ) | 15.1 | % | ||||||||
Income
only subject to foreign tax
|
384 | (3.7 | )% | (118 | ) | 14.0 | % | |||||||||
Permanent
differences
|
(8 | ) | 0.1 | % | 112 | (13.2 | )% | |||||||||
Net
change in uncertain tax positions
|
44 | (0.4 | )% | 231 | 27.3 | % | ||||||||||
Losses
not recognized
|
2,042 | (19.4 | )% | - | - | |||||||||||
Investment
basis adjustment
|
(1,725 | ) | 16.4 | % | - | - | ||||||||||
Equity
compensation
|
226 | (2.1 | )% | - | - | |||||||||||
Foreign
tax credit
|
345 | (3.3 | )% | - | - | |||||||||||
Net
change in valuation allowance
|
3,403 | (32.4 | )% | - | - | |||||||||||
Other
|
31 | (0.3 | )% | (107 | ) | 12.6 | % | |||||||||
Income
tax provision (benefit)
|
$ | 853 | (8.1 | )% | $ | (307 | ) | 36.2 | % |
Years
Ended December 31,
|
||||||||
2008
|
2007
|
|||||||
Current:
|
||||||||
United
States
|
$ | (419 | ) | $ | 4,439 | |||
Puerto
Rico
|
(4 | ) | 376 | |||||
(423 | ) | 4,815 | ||||||
Deferred:
|
||||||||
United
States
|
1,628 | (5,664 | ) | |||||
Puerto
Rico
|
(352 | ) | 542 | |||||
1,276 | (5,122 | ) | ||||||
Income
tax provision (benefit)
|
$ | 853 | $ | (307 | ) |
At
December 31,
|
||||||||
2008
|
2007
|
|||||||
Deferred
income related to long-term receivables from
partnerships operating in Puerto Rico
|
$ | 282 | $ | 282 | ||||
Receivables
from partnerships operating in United States
|
1,189 | 1,189 | ||||||
Tax
benefit on equity in earnings of partnerships operating in Puerto
Rico
|
(6,935 | ) | (6,875 | ) | ||||
Tax
benefit on equity in earnings of partnerships operating in United
States
|
(8,882 | ) | (9,428 | ) | ||||
Tax
on deferred income
|
(1,020 | ) | (1,217 | ) | ||||
Tax
on land development costs capitalized for book purposes but deducted
currently for tax purposes
|
(15,132 | ) | (12,804 | ) | ||||
Tax
on differences in basis related to joint venture in United
States
|
- | (705 | ) | |||||
Tax
on differences in basis related to land in United States
|
(2,538 | ) | (2,574 | ) | ||||
Tax
on differences in basis related to land in Puerto Rico
|
(19 | ) | (66 | ) | ||||
Tax
on basis difference for Puerto Rico commercial venture
|
1,188 | 1,337 | ||||||
Allowance
for doubtful accounts
|
(300 | ) | (294 | ) | ||||
Accrued
expenses
|
(2,946 | ) | (2,395 | ) | ||||
Net
operating losses
|
(612 | ) | - | |||||
Alternative
minimum tax credits
|
(197 | ) | (150 | ) | ||||
Other
|
(280 | ) | (375 | ) | ||||
Net
deferred tax asset before valuation allowance
|
(36,202 | ) | (34,075 | ) | ||||
Valuation
allowance
|
3,403 | - | ||||||
Net
deferred tax asset
|
$ | (32,799 | ) | $ | (34,075 | ) |
Unrecognized
tax benefit at beginning of period (December 31, 2007)
|
$ | 14,869 | ||
Change
attributable to tax positions taken during a prior period
|
1,277 | |||
Change
attributable to tax positions taken during the current
period
|
- | |||
Decrease
attributable to settlements with taxing authorities
|
(577 | ) | ||
Decrease
attributable to lapse of statute of limitations
|
(26 | ) | ||
Unrecognized
tax benefit at end of period (December 31, 2008)
|
$ | 15,543 |
(12)
|
FAIR
VALUE OF FINANCIAL INSTRUMENTS
|
Reconciliation
for the year ended December 31, 2008
|
||||
(in
thousands)
|
||||
Fair
value as of January 1, 2008
|
$ | 311,988 | ||
Purchases,
issuances, and
|
||||
settlements
|
(3 | ) | ||
Unrealized gains
|
31,091 | |||
Fair
value as of December 31, 2008
|
$ | 343,076 |
(13)
|
SEGMENT
INFORMATION
|
For the years ended | ||||||||
U.S. Operating Real Estate:
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating revenues
|
$ | 39,515 | $ | 38,416 | ||||
Operating expenses
|
18,189 | 19,235 | ||||||
Net
operating income
|
21,326 | 19,181 | ||||||
Management
and other fees, substantially all from related entities
|
157 | 194 | ||||||
General,
administrative, selling and marketing
|
(1,441 | ) | (2,252 | ) | ||||
Impairment
charges
|
(1,256 | ) | - | |||||
Depreciation
and amortization
|
(6,082 | ) | (5,592 | ) | ||||
Operating
income
|
12,704 | 11,531 | ||||||
Other
expense
|
(10,405 | ) | (9,998 | ) | ||||
Income
before provision (benefit) for income taxes
|
2,299 | 1,533 | ||||||
Provision
(benefit) for income taxes
|
1,624 | (463 | ) | |||||
Net
income
|
$ | 675 | $ | 1,996 |
As
of
|
As
of
|
|||||||
U.S. Operating Real Estate Balance Sheet: |
December 31, 2008
|
December 31,
2007
|
||||||
ASSETS
|
||||||||
Investments
in real estate, net
|
$ | 110,412 | $ | 115,479 | ||||
Cash
and cash equivalents
|
7,008 | 12,139 | ||||||
Restricted
cash and escrow deposits
|
7,763 | 8,359 | ||||||
Deferred
tax assets
|
7,807 | 10,131 | ||||||
Deferred
charges and other assets, net of amortization
|
54,256 | 49,872 | ||||||
Total
Assets
|
$ | 187,246 | $ | 195,980 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-recourse
debt
|
$ | 189,951 | $ | 192,274 | ||||
Recourse
debt
|
257 | 152 | ||||||
Other
liabilities
|
7,770 | 9,160 | ||||||
Accrued
income tax liability-current
|
(1,047 | ) | (474 | ) | ||||
Total
Liabilities
|
196,931 | 201,112 | ||||||
Total
Shareholders' Equity
|
(9,685 | ) | (5,132 | ) | ||||
Total
Liabilities and Shareholders' Equity
|
$ | 187,246 | $ | 195,980 |
For the years ended
|
||||||||
Puerto
Rican Operating Real Estate:
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating
revenues
|
$ | 22,728 | $ | 22,306 | ||||
Operating
expenses
|
11,512 | 11,433 | ||||||
Net
operating income
|
11,216 | 10,873 | ||||||
Management
and other fees, substantially all from related entities
|
624 | 635 | ||||||
General,
administrative, selling and marketing
|
(3,631 | ) | (3,159 | ) | ||||
Depreciation
and amortization
|
(3,769 | ) | (3,694 | ) | ||||
Operating
income
|
4,440 | 4,655 | ||||||
Other
expense
|
(5,837 | ) | (4,536 | ) | ||||
(Loss
) income before provision for income taxes
|
(1,397 | ) | 119 | |||||
Provision
for income taxes
|
37 | 373 | ||||||
Net
loss
|
$ | (1,434 | ) | $ | (254 | ) |
As
of
|
As
of
|
|||||||
Puerto Rican Operating Real Estate Balance Sheet: |
December 31, 2008
|
December 31,
2007
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$ | 48,042 | $ | 50,601 | ||||
Cash
and cash equivalents
|
6,825 | 5,120 | ||||||
Restricted
cash and escrow deposits
|
10,434 | 10,771 | ||||||
Investments
in unconsolidated real estate entities
|
6,819 | 13,583 | ||||||
Deferred
charges and other assets, net of amortization
|
19,632 | 21,683 | ||||||
Total
Assets
|
$ | 91,752 | $ | 101,758 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-recourse
debt
|
$ | 86,170 | $ | 87,707 | ||||
Recourse
debt
|
5,215 | 6,455 | ||||||
Other
liabilities
|
5,291 | 5,402 | ||||||
Accrued
income tax liability-current
|
(1 | ) | 3 | |||||
Total
Liabilities
|
96,675 | 99,567 | ||||||
Total
Shareholders' Equity
|
(4,923 | ) | 2,191 | |||||
Total
Liabilities and Shareholders' Equity
|
$ | 91,752 | $ | 101,758 |
For the years ended | ||||||||
U.S.
Land Development Operations:
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating
revenues
|
||||||||
Community
development - land sales
|
$ | 14,726 | $ | 14,486 | ||||
Management
and other fees, substantially all from related entities
|
- | 142 | ||||||
Total
revenues
|
14,726 | 14,628 | ||||||
Operating
expenses
|
||||||||
Cost
of land sales
|
9,572 | 11,169 | ||||||
General,
administrative, selling and marketing
|
3,558 | 2,734 | ||||||
Depreciation
and amortization
|
5 | 5 | ||||||
Total
expenses
|
13,135 | 13,908 | ||||||
Operating
income
|
1,591 | 720 | ||||||
Other
expense
|
(2,584 | ) | (2,056 | ) | ||||
(Loss)
income before benefit for income taxes
|
(993 | ) | (1,336 | ) | ||||
Benefit
for income taxes
|
(406 | ) | (654 | ) | ||||
Net
loss
|
$ | (587 | ) | $ | (682 | ) |
As of
|
As of
|
|||||||
U.S. Land Development Balance Sheet: |
December 31, 2008
|
December 31,
2007
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$ | 81,821 | $ | 64,236 | ||||
Cash
and cash equivalents
|
10,140 | 7,416 | ||||||
Restricted
cash and escrow deposits
|
2,399 | 1,087 | ||||||
Deferred
tax assets
|
19,151 | 18,493 | ||||||
Deferred
charges and other assets, net of amortization
|
(37,176 | ) | (22,178 | ) | ||||
Total
Assets
|
$ | 76,335 | $ | 69,054 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-recourse
debt
|
$ | - | $ | - | ||||
Recourse
debt
|
37,542 | 27,556 | ||||||
Other
liabilities
|
13,383 | 17,331 | ||||||
Accrued
income tax liability-current
|
15,803 | 15,013 | ||||||
Total
Liabilities
|
66,728 | 59,900 | ||||||
Total
Shareholders' Equity
|
9,607 | 9,154 | ||||||
Total
Liabilities and Shareholders' Equity
|
$ | 76,335 | $ | 69,054 |
For the years ended | ||||||||
Puerto
Rican Land Development Operations:
|
December 31, 2008
|
December 31,
2007
|
||||||
Operating
revenues
|
||||||||
Homebuilding
– home sales
|
$ | 3,730 | $ | 7,580 | ||||
Operating
expenses
|
||||||||
Cost
of home sales
|
2,898 | 5,549 | ||||||
General,
administrative, selling and marketing
|
341 | 503 | ||||||
Impairment
charges
|
6,200 | - | ||||||
Total
expenses
|
9,439 | 6,052 | ||||||
Operating
(loss) income
|
(5,709 | ) | 1,528 | |||||
Other
income
|
698 | 1,085 | ||||||
(Loss)
income before provision for income taxes
|
(5,011 | ) | 2,613 | |||||
Provision
for income taxes
|
- | - | ||||||
Net
income
|
$ | (5,011 | ) | $ | 2,613 |
Puerto
Rican Land Development Balance Sheet:
|
December 31, 2008
|
December 31,
2007
|
||||||
ASSETS
|
||||||||
Investments
in real estate
|
$ | 20,310 | $ | 25,741 | ||||
Cash
and cash equivalents
|
61 | 236 | ||||||
Restricted
cash and escrow deposits
|
3 | 6 | ||||||
Investments
in unconsolidated real estate entities
|
14,234 | 15,983 | ||||||
Deferred
charges and other assets, net of amortization
|
(1,556 | ) | (1,498 | ) | ||||
Total
Assets
|
$ | 33,052 | $ | 40,468 | ||||
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
||||||||
LIABILITIES
|
||||||||
Recourse
debt
|
$ | 4,327 | $ | 1,725 | ||||
Accounts
payable and accrued liabilities
|
9,348 | 10,915 | ||||||
Total
Liabilities
|
13,675 | 12,640 | ||||||
Total
Shareholders' Equity
|
19,377 | 27,828 | ||||||
Total Liabilities and
Shareholders' Equity
|
$ | 33,052 | $ | 40,468 |
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income
Before Provision (Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Net
Income (Loss)
|
||||||||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||||||||||
U.S.
|
$ | 40,164 | $ | 27,460 | $ | 12,704 | $ | (10,405 | ) | $ | 2,299 | $ | 1,624 | $ | 675 | |||||||||||||
P.R.
|
24,321 | 19,881 | 4,440 | (5,837 | ) | (1,397 | ) | 37 | (1,434 | ) | ||||||||||||||||||
Total
Operating Real Estate
|
64,485 | 47,341 | 17,144 | (16,242 | ) | 902 | 1,661 | (759 | ) | |||||||||||||||||||
Land
Development
|
||||||||||||||||||||||||||||
U.S.
|
14,726 | 13,135 | 1,591 | (2,584 | ) | (993 | ) | (406 | ) | (587 | ) | |||||||||||||||||
P.R.
|
3,730 | 9,439 | (5,709 | ) | 698 | (5,011 | ) | - | (5,011 | ) | ||||||||||||||||||
Total
Land Development
|
18,456 | 22,574 | (4,118 | ) | (1,886 | ) | (6,004 | ) | (406 | ) | (5,598 | ) | ||||||||||||||||
Corporate
|
- | 6,941 | (6,941 | ) | (574 | ) | (7,515 | ) | (413 | ) | (7,102 | ) | ||||||||||||||||
Intersegment
|
(27 | ) | (1,298 | ) | 1,271 | 843 | 2,114 | 11 | 2,103 | |||||||||||||||||||
$ | 82,914 | $ | 75,558 | $ | 7,356 | $ | (17,859 | ) | $ | (10,503 | ) | $ | 853 | $ | (11,356 | ) |
Revenues
|
Expenses
|
Operating
Income
|
Other
Income/
(Expense)
|
Income
Before Provision (Benefit) for Income Taxes
|
Provision
(Benefit) for Income Taxes
|
Net
Income (Loss)
|
||||||||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||||||||||
U.S.
|
$ | 39,250 | $ | 27,719 | $ | 11,531 | $ | (9,998 | ) | $ | 1,533 | $ | (463 | ) | $ | 1,996 | ||||||||||||
P.R.
|
23,948 | 19,293 | 4,655 | (4,536 | ) | 119 | 373 | (254 | ) | |||||||||||||||||||
Total
Operating Real Estate
|
63,198 | 47,012 | 16,186 | (14,534 | ) | 1,652 | (90 | ) | 1,742 | |||||||||||||||||||
Land
Development
|
||||||||||||||||||||||||||||
U.S.
|
14,628 | 13,908 | 720 | (2,056 | ) | (1,336 | ) | (654 | ) | (682 | ) | |||||||||||||||||
P.R.
|
7,580 | 6,052 | 1,528 | 1,085 | 2,613 | - | 2,613 | |||||||||||||||||||||
Total
Land Development
|
22,208 | 19,960 | 2,248 | (971 | ) | 1,277 | (654 | ) | 1,931 | |||||||||||||||||||
Corporate
|
- | 3,712 | (3,712 | ) | 2,122 | (1,590 | ) | 453 | (2,043 | ) | ||||||||||||||||||
Intersegment
|
(30 | ) | (1,390 | ) | 1,360 | (3,547 | ) | (2,187 | ) | (16 | ) | (2,171 | ) | |||||||||||||||
$ | 85,376 | $ | 69,294 | $ | 16,082 | $ | (16,930 | ) | $ | (848 | ) | $ | (307 | ) | $ | (541 | ) |
Investment
in Real Estate
|
Total
Assets
|
Recourse
Debt
|
Non-recourse
Debt
|
Total
Liabilities
|
||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||
U.S.
|
$ | 110,412 | $ | 187,246 | $ | 257 | $ | 189,950 | $ | 196,931 | ||||||||||
P.R.
|
48,042 | 91,752 | 5,215 | 86,170 | 96,675 | |||||||||||||||
Total
Operating Real Estate
|
158,454 | 278,998 | 5,472 | 276,120 | 293,606 | |||||||||||||||
Land
Development
|
||||||||||||||||||||
U.S.
|
81,821 | 76,335 | 37,542 | - | 66,728 | |||||||||||||||
P.R.
|
20,310 | 33,052 | 4,327 | - | 13,675 | |||||||||||||||
Total
Land Development
|
102,131 | 109,387 | 41,869 | - | 80,403 | |||||||||||||||
Corporate
|
- | 12,663 | - | - | - | |||||||||||||||
Intersegment
|
(1,282 | ) | (45,855 | ) | (7,925 | ) | - | (20,157 | ) | |||||||||||
$ | 259,303 | $ | 355,193 | $ | 39,416 | $ | 276,120 | $ | 353,852 |
Investment
in Real Estate
|
Total
Assets
|
Recourse
Debt
|
Non-recourse
Debt
|
Total
Liabilities
|
||||||||||||||||
Operating
Real Estate
|
||||||||||||||||||||
U.S.
|
$ | 115,479 | $ | 195,980 | $ | 152 | $ | 192,274 | $ | 201,112 | ||||||||||
P.R.
|
50,601 | 102,324 | 6,455 | 87,707 | 99,567 | |||||||||||||||
Total
Operating Real Estate
|
166,080 | 298,304 | 6,607 | 279,981 | 300,679 | |||||||||||||||
Land
Development
|
||||||||||||||||||||
U.S.
|
64,236 | 69,054 | 27,556 | - | 59,900 | |||||||||||||||
P.R.
|
25,741 | 40,468 | 1,725 | - | 12,640 | |||||||||||||||
Total
Land Development
|
89,977 | 109,522 | 29,281 | - | 72,540 | |||||||||||||||
Corporate
|
- | 12,924 | - | - | 77 | |||||||||||||||
Intersegment
|
(1,481 | ) | (60,026 | ) | (10,299 | ) | - | (25,018 | ) | |||||||||||
$ | 254,576 | $ | 360,724 | $ | 25,589 | $ | 279,981 | $ | 348,278 |
(14)
|
SUPPLEMENTAL
CASH FLOW INFORMATION
|
2008
|
2007
|
|||||||
Interest
paid
|
$ | 17,400 | $ | 18,124 | ||||
Income
taxes paid
|
$ | 1,267 | $ | 3,901 |
(15)
|
SUBSEQUENT
EVENTS
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||||||||||||||||||||||||||||
SCHEDULE
III
|
||||||||||||||||||||||||||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
||||||||||||||||||||||||||||||||||
AS
OF DECEMBER 31, 2008
|
||||||||||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||||||||||
Initial
and Subsequent Costs and Encumbrances
|
Total
Capitalized Costs and Accumulated Depreciation
|
|||||||||||||||||||||||||||||||||
Date
|
||||||||||||||||||||||||||||||||||
Bldgs.
&
|
Subsequent
|
Bldgs.
&
|
Accumulated
|
Constructed
|
Depreciable
|
|||||||||||||||||||||||||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Land
|
Improvements
|
Total
|
Depreciation
|
or
Acquired
|
Life
|
||||||||||||||||||||||||
Consolidated Partnerships
|
||||||||||||||||||||||||||||||||||
U.S.
Partnerships
|
||||||||||||||||||||||||||||||||||
Bannister
Apartments
|
$ | 12,301 | $ | 410 | $ | 4,180 | $ | 4,391 | $ | 410 | $ | 8,571 | $ | 8,981 | $ | 5,683 |
11/30/1976
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||||||||||
Brookmont
Apartments
|
7,180 | 162 | 2,677 | 2,733 | 162 | 5,410 | 5,572 | 3,911 |
5/18/1979
|
Bldg-40
Yrs
|
||||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||||||||||
Coachman's
|
10,740 | 572 | 6,421 | 1,012 | 572 | 7,433 | 8,005 | 3,326 |
9/5/1989
|
Bldg-40
Yrs
|
||||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||||||||||
Crossland
Apartments
|
4,034 | 350 | 2,697 | 436 | 350 | 3,133 | 3,483 | 2,302 |
1/13/1978
|
Bldg-40
Yrs
|
||||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||||||||||
Essex
Village Apts.
|
13,766 | 2,667 | 21,381 | (2,828 | ) | 2,667 | 18,553 | 21,220 | 16,782 |
1/31/1982
|
Bldg-40
Yrs
|
|||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
Richmond,
VA
|
||||||||||||||||||||||||||||||||||
Fox
Chase Apartments
|
12,685 | 745 | 7,014 | 1,231 | 745 | 8,245 | 8,990 | 4,117 |
3/31/1987
|
Bldg-40
Yrs
|
||||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||||||||||
Headen
House
|
6,828 | 205 | 4,765 | 3,640 | 205 | 8,405 | 8,610 | 6,001 |
10/30/1980
|
Bldg-40
Yrs
|
||||||||||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||||||||||
St.
Charles, MD
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
|||||||||||
SCHEDULE
III
|
|||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
|||||||||||
AS
OF DECEMBER 31, 2008
|
|||||||||||
(In
thousands)
|
|||||||||||
Initial
and Subsequent Costs and Encumbrances
|
Total
Capitalized Costs and Accumulated Depreciation
|
||||||||||
Date
|
|||||||||||
Bldgs.
&
|
Subsequent
|
Bldgs.
&
|
Accumulated
|
Constructed
|
|||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Land
|
Improvements
|
Total
|
Depreciation
|
or
Acquired
|
Depreciable
Life
|
|
Huntington
Apartments
|
9,104
|
350
|
8,513
|
1,271
|
350
|
9,784
|
10,134
|
6,166
|
10/7/1980
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||
St.
Charles, MD
|
|||||||||||
Lancaster
Apartments
|
8,355
|
484
|
4,292
|
1,266
|
484
|
5,558
|
6,042
|
3,355
|
12/31/1985
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||
St.
Charles, MD
|
|||||||||||
Milford
Station I
|
10,491
|
2,659
|
9,878
|
734
|
2,659
|
10,612
|
13,271
|
995
|
5/1/2006
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
|||||||||
Baltimore,
MD
|
|||||||||||
Milford
Station II
|
1,345
|
455
|
1,350
|
74
|
455
|
1,424
|
1,879
|
1284
|
5/1/2006
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
|||||||||
Baltimore,
MD
|
|||||||||||
New
Forest Apartments
|
22,445
|
1,229
|
12,102
|
2,182
|
1,229
|
14,284
|
15,513
|
7,047
|
6/28/1988
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||
St.
Charles, MD
|
|||||||||||
Nottingham
South
|
2,543
|
359
|
2,586
|
125
|
359
|
2,711
|
3,070
|
653
|
5/23/2005
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
|||||||||
Baltimore,
MD
|
|||||||||||
Owings
Chase
|
12,208
|
1,691
|
13,428
|
803
|
1,691
|
14,231
|
15,922
|
1,226
|
10/29/2004
|
Bldg-40
Yrs
|
|
Garden
Apartments
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
|||||||||
Baltimore,
MD
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||||||||||||||||||||
SCHEDULE
III
|
||||||||||||||||||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
||||||||||||||||||||||||||
AS
OF DECEMBER 31, 2008
|
||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||
Initial
and Subsequent Costs and Encumbrances
|
Total
Capitalized Costs and Accumulated Depreciation
|
|||||||||||||||||||||||||
Date
|
||||||||||||||||||||||||||
Bldgs.
&
|
Subsequent
|
Bldgs.
&
|
Accumulated
|
Constructed
|
||||||||||||||||||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Land
|
Improvements
|
Total
|
Depreciation
|
or
Acquired
|
Depreciable
Life
|
||||||||||||||||
Palmer
Apartments
|
6,649 | 471 | 4,788 | 3,926 | 471 | 8,714 | 9,185 | 6,175 |
3/31/1980
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||
Prescott
Square
|
3,541 | 470 | 3,867 | 451 | 470 | 4,318 | 4,788 | 744 |
10/29/2004
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Baltimore,
MD
|
||||||||||||||||||||||||||
Sheffield
Greens
|
26,749 | 3,562 | 22,292 | 145 | 3,562 | 22,437 | 25,999 | 1,255 |
1/31/2007
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||
Terrace
Apartments
|
9,897 | 497 | 5,377 | 5,427 | 497 | 10,804 | 11,301 | 7,495 |
11/1/1979
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||
Village
Lake
|
9,088 | 824 | 6,858 | 312 | 824 | 7,170 | 7,994 | 2,764 |
10/1/1993
|
Bldg-40
Yrs
|
||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
St.
Charles, MD
|
||||||||||||||||||||||||||
Puerto
Rico Partnerships
|
||||||||||||||||||||||||||
Alturas
Del Senorial
|
3,450 | 345 | 4,185 | 661 | 345 | 4,846 | 5,191 | 3,592 |
11/17/1979
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Rio
Piedras, PR
|
||||||||||||||||||||||||||
Bayamon
Garden
|
9,151 | 1,153 | 12,050 | 1,108 | 1,153 | 13,158 | 14,311 | 9,250 |
7/6/1981
|
Bldg-40
Yrs
|
||||||||||||||||
Walk-up
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Bayamon,
PR
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
||||||||||||||||||||||||||
SCHEDULE
III
|
||||||||||||||||||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
||||||||||||||||||||||||||
AS
OF DECEMBER 31, 2008
|
||||||||||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||||
Initial
and Subsequent Costs and Encumbrances
|
Total
Capitalized Costs and Accumulated Depreciation
|
|||||||||||||||||||||||||
Date
|
||||||||||||||||||||||||||
Bldgs.
&
|
Subsequent
|
Bldgs.
&
|
Accumulated
|
Constructed
|
||||||||||||||||||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Land
|
Improvements
|
Total
|
Depreciation
|
or
Acquired
|
Depreciable
Life
|
||||||||||||||||
Colinas
De San Juan
|
9,380 | 900 | 10,742 | 1,060 | 900 | 11,802 | 12,702 | 8,433 |
3/20/1981
|
Bldg-40
Yrs
|
||||||||||||||||
Walk-up
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
San
Juan, PR
|
||||||||||||||||||||||||||
De
Diego
|
5,457 | 601 | 6,718 | 903 | 601 | 7,621 | 8,222 | 5,412 |
3/20/1980
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Rio
Piedras, PR
|
||||||||||||||||||||||||||
Escorial
Office
|
8,400 | 1,596 | 8,202 | 478 | 1,596 | 8,680 | 10,276 | 750 |
9/1/2005
|
Bldg-40
Yrs
|
||||||||||||||||
Building
I, Inc.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Puerto
Rico
|
||||||||||||||||||||||||||
Jardines
De Caparra
|
6,233 | 546 | 5,719 | 1,892 | 546 | 7,611 | 8,157 | 5,410 |
4/1/1980
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Bayamon,
PR
|
||||||||||||||||||||||||||
Monserrate
I
|
6,816 | 543 | 10,436 | 1,965 | 543 | 12,401 | 12,944 | 9,159 |
5/1/1979
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Carolina,
PR
|
||||||||||||||||||||||||||
Monserrate
II
|
9,862 | 731 | 11,172 | 1,763 | 731 | 12,935 | 13,666 | 9,261 |
1/30/1980
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Carolina,
PR
|
||||||||||||||||||||||||||
San
Anton
|
4,091 | 313 | 3,525 | 1,805 | 313 | 5,330 | 5,643 | 4,151 |
12/10/1974
|
Bldg-40
Yrs
|
||||||||||||||||
Highrise
Apts.
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
||||||||||||||||||||||||
Carolina,
PR
|
AMERICAN
COMMUNITY PROPERTIES TRUST
|
|||||||||||||||||||||||||||
SCHEDULE
III
|
|||||||||||||||||||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
|||||||||||||||||||||||||||
AS
OF DECEMBER 31, 2008
|
|||||||||||||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||||||||
Initial
and Subsequent Costs and Encumbrances
|
Total
Capitalized Costs and Accumulated Depreciation
|
||||||||||||||||||||||||||
Bldgs.
&
|
Subsequent
|
Bldgs.
&
|
Accumulated
|
Date
Constructed
|
|||||||||||||||||||||||
Description
|
Encumbrances
|
Land
|
Improvements
|
Costs
|
Land
|
Improvements
|
Total
|
Depreciation
|
or
Acquired
|
Depreciable
Life
|
|||||||||||||||||
Santa
Juana
|
7,036 | 487 | 6,748 | 995 | 487 | 7,743 | 8,230 | 5,544 |
2/8/1980
|
Bldg-40
Yrs
|
|||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
Caguas,
PR
|
|||||||||||||||||||||||||||
Torre
De Las Cumbres
|
5,067 | 466 | 5,954 | 735 | 466 | 6,689 | 7,155 | 4,930 |
12/6/1979
|
Bldg-40
Yrs
|
|||||||||||||||||
Highrise
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
Rio
Piedras, PR
|
|||||||||||||||||||||||||||
Valle
Del Sol
|
10,430 | 992 | 14,017 | 876 | 992 | 14,893 | 15,885 | 9,899 |
3/15/1983
|
Bldg-40
Yrs
|
|||||||||||||||||
Highrise
and
Walk-up
Apts.
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
Bayamon,
PR
|
|||||||||||||||||||||||||||
Vistas
Del Turabo
|
798 | 354 | 2,508 | 727 | 354 | 3,235 | 3,589 | 2,130 |
12/30/1983
|
Bldg-40
Yrs
|
|||||||||||||||||
Walk-up
Apts.
|
Acquired
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
Caguas,
PR
|
|||||||||||||||||||||||||||
Total
Consolidated Properties
|
276,120 | 27,189 | 246,442 | 42,299 | 27,189 | 288,741 | 315,930 | 159,202 | |||||||||||||||||||
Unconsolidated Partnerships
|
|||||||||||||||||||||||||||
Brookside
Gardens Apartments
|
1,241 | 156 | 2,487 | 53 | 156 | 2,540 | 2,696 | 1,296 |
11/10/1994
|
Bldg-40
Yrs
|
|||||||||||||||||
Garden
Shared Housing
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
St.
Charles, MD
|
|||||||||||||||||||||||||||
Lakeside
Apartments
|
1,952 | 440 | 3,649 | 42 | 440 | 3,691 | 4,131 | 1,138 |
7/1/1996
|
Bldg-40
Yrs
|
|||||||||||||||||
Garden
Apartments
|
Constructed
|
Bldg
Equip-5/7 Yrs
|
|||||||||||||||||||||||||
St.
Charles, MD
|
|||||||||||||||||||||||||||
Total
Unconsolidated Properties
|
3,193 | 596 | 6,136 | 95 | 596 | 6,231 | 6,827 | 2,434 | |||||||||||||||||||
Total
Properties
|
$ | 279,313 | 27,785 | 252,578 | 42,394 | 27,785 | 294,972 | 322,757 | 161,636 | ||||||||||||||||||
(1) Operating
real estate shown on the Consolidated Balance Sheets includes real estate
assets of $164,352 net of accumulated depreciation of
$150,292.
|
|||||||||||||||||||||||||||
The
aggregate cost, net of depreciation and amortization, for federal income
tax purposes for U.S. and P.R. properties is $128,693.
(Unaudited)
|
SCHEDULE
III
|
||||||||||||
REAL
ESTATE AND ACCUMULATED DEPRECIATION
|
||||||||||||
AS
OF DECEMBER 31, 2008 AND 2007
|
||||||||||||
(In
thousands)
|
||||||||||||
Consolidated
|
Unconsolidated
|
|||||||||||
Partnerships
|
Partnerships
|
Total
|
||||||||||
Real
Estate at January 1, 2007
|
$ | 284,504 | $ | 6,824 | $ | 291,328 | ||||||
Additions
for 2007:
|
||||||||||||
Improvements
|
31,430 | 22 | 31,452 | |||||||||
Deductions
for 2007:
|
||||||||||||
Dispositions
|
1,290 | 22 | 1,312 | |||||||||
Real
Estate at December 31, 2007
|
314,644 | 6,824 | 321,468 | |||||||||
Additions
for 2008:
|
||||||||||||
Improvements
|
3,337 | 28 | 3,365 | |||||||||
Deductions
for 2008:
|
||||||||||||
Dispositions
|
2,051 | 25 | 2,076 | |||||||||
Real
Estate at December 31, 2008
|
$ | 315,930 | $ | 6,827 | $ | 322,757 | ||||||
Accumulated
depreciation at January 1, 2007
|
$ | 142,458 | $ | 2,070 | $ | 144,528 | ||||||
Additions
for 2007:
|
||||||||||||
Depreciation
expense
|
9,124 | 206 | 9,330 | |||||||||
Deductions
for 2007:
|
||||||||||||
Dispositions
|
1,290 | 22 | 1,312 | |||||||||
Accumulated
depreciation at December 31, 2007
|
150,292 | 2,254 | 152,546 | |||||||||
Additions
for 2008:
|
||||||||||||
Depreciation
expense
|
9,705 | 205 | 9,910 | |||||||||
Impairment
|
1,256 | - | 1,256 | |||||||||
Deductions
for 2008:
|
||||||||||||
Dispositions
|
2,051 | 25 | 2,076 | |||||||||
Accumulated
depreciation at December 31, 2008
|
$ | 159,202 | $ | 2,434 | $ | 161,636 |
ITEM
9A(T).
|
ITEM
9B.
|
ITEM
11.
|
ITEM
12.
|
|
The
following consolidated financial statements of American Community
Properties Trust are filed as part of this report on Form 10-K under Item
8 - Financial Statements and Supplementary
Data:
|
|
Report
of Independent Registered Public Accounting
Firm
|
|
Consolidated
Statements of Income for the years ended December 31, 2008 and
2007
|
|
Consolidated
Balance Sheets as of December 31, 2008 and
2007
|
|
Consolidated
Statements of Changes in Shareholders' Equity for the years ended December
31, 2008 and 2007
|
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2008 and
2007
|
|
Notes
to Consolidated Financial Statements for the years ended December 31, 2008
and 2007
|
|
Schedule
III -- Real Estate and Accumulated Depreciation as of December 31,
2008
|
|
Exhibits
required by Securities and Exchange Commission Section 601 of Regulation
S-K.
|
Exhibit
No.
|
Description
of Exhibit
|
Reference
|
|
3.1
|
Form
of Restated Declaration of Trust of the Company
|
Exhibit
3.1 to Form S-11
|
|
3.2
|
|
Filed
herewith
|
|
4.1
|
Form
of Common Share Certificate
|
Exhibit
4.1 to Form S-11
|
10.1
|
Employment
Agreement, dated May 12, 2004, between Interstate General Properties
Limited Partnership S.E. and Jorge Garcia Massuet*
|
Exhibit
10.1 to Form 10-Q for the quarter ended March 31, 2004
|
10.2
|
Form
of Consulting Agreement, dated August 24, 1998, between the Company and
James J. Wilson*
|
Exhibit
10.4 to Form S-11
|
10.3
|
Employment
and Consulting Agreement for Carlos R. Rodriguez *
|
Exhibit
10.1 to Form 10-Q for quarter ended June 30, 2006
|
10.4
|
Consulting
Agreement between St. Charles Community, LLC and Thomas J. Shafer dated
January 1, 1998*
|
Exhibit
10.14 to 1998 Form 10-K
|
10.5
|
Amendment
to Consulting Agreement between St. Charles Community, LLC and Thomas J.
Shafer dated January 28, 2002*
|
Exhibit
10.15 to 2001 Form 10-K
|
10.6
|
Indemnification
Agreement between American Community Properties Trust and Antonio Ginorio
dated August 30, 2006*
|
Exhibit
10.1 to Form 8-K filed on August 31, 2006
|
10.7
|
Indemnification
Agreement between American Community Properties Trust
and Thomas S. Condit dated August 30, 2006*
|
Exhibit
10.2 to Form 8-K filed on August 31, 2006
|
10.8
|
Indemnification
Agreement between American Community Properties Trust and T. Michael Scott
dated August 30, 2006*
|
Exhibit
10.3 to Form 8-K filed on August 31, 2006
|
10.9
|
Indemnification
Agreement between American Community Properties Trust
and Thomas J. Shafer dated August 30, 2006 *
|
Exhibit
10.4 to Form 8-K filed on August 31, 2006
|
10.10
|
Settlement
Agreement dated July 22, 2002 between the County Commissioners of Charles
County, Maryland and St. Charles Associates Limited Partnership,
Interstate General Company, St. Charles Community LLC
|
Exhibit
10.1 to Form 10-Q for the quarter ended June 30, 2002
|
10.11
|
Consent
Judgment dated July 22, 2002
|
Exhibit
10.2 to Form 10-Q for the quarter ended June 30, 2002
|
10.12
|
Indenture
dated July 22, 2002 between St. Charles Associates Limited Partnership,
Interstate General Company, St. Charles Community LLC and the County
Commissioners of Charles County
|
Exhibit
10.3 to Form 10-Q for the quarter ended June 30, 2002
|
10.13
|
Amended
Order to Docket #90 dated July 22, 2002
|
Exhibit
10.2 to Form 10-Q for the quarter ended September 30,
2002
|
10.14
|
Certificate
of Limited Partnership of Village Lake Apartments Limited Partnership
dated May 17, 1991
|
Exhibit
10.37 to 2002 Form 10-K
|
10.15
|
First
Amendment to Certificate of Limited Partnership of Village Lake Apartments
Limited Partnership dated May 13, 1992
|
Exhibit
10.38 to 2002 Form 10-K
|
10.16
|
Second
Amendment to Certificate and Agreement of Limited Partnership
of Village Lake Apartments Limited Partnership dated January
23, 2003
|
Exhibit
10.39 to 2002 Form 10-K
|
10.17
|
Limited
Partnership Agreement and Amended and Restated Limited Partnership
Certificate of Coachman's Limited Partnership dated June 2,
1988
|
Exhibit
10.40 to 2002 Form 10-K
|
10.18
|
Assignment
of Partnership Interest and Amendment to the Certificate of Limited
Partnership of Coachman's Limited Partnership dated June 30,
1997
|
Exhibit
10.41 to 2002 Form 10-K
|
10.19
|
Assignment
of Partnership Interest and Amendment to the Certificate of Limited
Partnership of Coachman's Limited Partnership dated September 28,
2001
|
Exhibit
10.42 to 2002 Form 10-K
|
10.20
|
Third
Amendment to Limited Partnership Agreement and Amended and Restated
Limited Partnership Certificate of Coachman's Limited Partnership dated
January 23, 2003
|
Exhibit
10.43 to 2002 Form 10-K
|
10.21
|
Purchase
Agreement between St. Charles Community, LLC and Lennar Corporation dated
March 4, 2004
|
Exhibit
10.1 to Form 8-K filed on January 4, 2008
|
10.22
|
Development
Agreement between St. Charles Community, LLC and Lennar Corporation dated
March 4, 2004
|
Exhibit
10. 2 to Form 8-K filed on January 4, 2008
|
10.23
|
First
Amendment to Purchase Agreement between St. Charles Community, LLC and
Lennar Corporation dated June 20, 2006
|
Exhibit
10.3 to Form 8-K filed on January 4, 2008
|
10.24
|
Second
Amendment to Purchase Agreement between St. Charles Community, LLC and
Lennar Corporation dated December 31, 2007
|
Exhibit
10.4 to Form 8-K filed on January 4, 2008
|
10.25
|
Third
Amendment to Purchase Agreement between St. Charles Community, LLC and
Lennar Corporation dated November 19, 2008
|
Exhibit
10.1 to Form 8-K filed on November 25, 2008
|
10.26
|
Multifamily
Note dated October 29, 2004 in the amount of $3,640,000 from Prescott
Square, LLC to Prudential Multifamily Mortgage, Inc.
|
Exhibit
10.47 to Form 10-K for fiscal year ended December 31,
2004
|
10.27
|
Multifamily
Note dated October 29, 2004 in the amount of $12,550,000 from Owings
Chase, LLC to Prudential Multifamily Mortgage, Inc.
|
Exhibit
10.48 to Form 10-K for fiscal year ended December 31,
2004
|
10.28
|
Deed
of Trust Note for Sheffield Greens Apartments, LLC payable to GMAC
Commercial Mortgage Bank for principal sum of $27,008,400 dated August 11,
2005
|
Exhibit
10.1 to Form 10-Q for the quarter ended September 30,
2005
|
10.29
|
Deed
of Trust for Sheffield Greens Apartments, LLC payable to GMAC Commercial
Mortgage Bank for principal sum of $27,008,400 dated August 11,
2005
|
Exhibit
10.2 to Form 10-Q for quarter ended September 30, 2005
|
10.30
|
Security
Agreement signed on August 11, 2005 between Sheffield Greens Apartment,
LLC and GMAC Commercial Mortgage Bank
|
Exhibit
10.3 to Form 10-Q for quarter ended September 30, 2005
|
10.31
|
Legal
Description attached to the survey entitled “Plat of Survey, Sheffield
Greens Apartments” dated August 10, 2005
|
Exhibit
10.4 to Form 10-Q for quarter ended September 30, 2005
|
10.32
|
Lease,
dated as of September 1, 2006, by and between the Company and Caribe Waste
Technologies, Inc.
|
Exhibit
10.1 to Form 10-Q for quarter ended September 30, 2006
|
10.33
|
Deed
of Trust Note for New Forest Apartments, LLC
Payable
to Wells Fargo Bank, N.A. for principal sum of $23,000,000 dated November
1, 2007
|
Exhibit
10.33 to 2006 Form 10-K
|
10.34
|
Employment
Agreement, dated September 26, 2008, between the Company and Steve
Griessel*
|
Exhibit
10.1 to Form 10-Q for the quarter ended September 30,
2008
|
10.35
|
|
Filed
herewith
|
10.36
|
|
Filed
herewith
|
10.37
|
|
Filed
herewith
|
21
|
|
Filed
herewith
|
23
|
233
|
Filed
herewith
|
31.1
|
|
Filed
herewith
|
31.2
|
|
Filed
herewith
|
32.1
|
|
Filed
herewith
|
32.2
|
|
Filed
herewith
|
*Denotes
management agreement or compensatory plan or
arrangement.
|
(b)
|
Exhibits
See
15(a) 3, above.
|
|
(c)
|
Financial
Statement Schedules
See
15(a) 2, above.
|
AMERICAN COMMUNITY PROPERTIES
TRUST
|
|
(Registrant)
|
|
Dated: March
31, 2009
|
By: /s/
Stephen K.
Griessel
|
Stephen
K. Griessel
Chief
Executive Officer
(Principal
Executive Officer)
|
|
Dated: March
31, 2009
|
By: /s/
Matthew M. Martin
|
Martin
M. Martin
Chief
Financial Officer
(Principal
Financial and Accounting Officer)
|
|
|
|
Signature
|
Title
|
Date
|
/s/
J. Michael Wilson
J.
Michael Wilson
|
Chairman
and Trustee
|
March
31, 2009
|
/s/
Stephen
K. Griessel
Stephen
K. Griessel
|
Chief
Executive Officer and Trustee
|
March
31, 2009
|
/s/
Matthew
M. Martin
Matthew
M. Martin
|
Chief
Financial Officer
|
March
31, 2009
|
/s/
Thomas J. Shafer
Thomas
J. Shafer
|
Trustee
|
March
31, 2009
|
/s/Michael
Williamson
Michael
Williamson
|
Trustee
|
March
31, 2009
|
/s/
Antonio Ginorio
Antonio
Ginorio
|
Trustee
|
March
31, 2009
|
/s/
Donald
J. Halldin
Donald
J. Halldin
|
Trustee
|
March
31, 2009
|
/s/
Thomas
E. Green
Thomas
E. Green
|
Trustee
|
March
31, 2009
|
/s/
Ross
B. Levin
Ross
B. Levin
|
Trustee
|
March
31,
2009
|