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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): January 4, 2001
ROBERTS REALTY INVESTORS, INC.
(Exact name of Registrant as specified in charter)
GEORGIA 001-13183 56-2122873
----------------------------- ------------------------ ---------------
(State or other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification Number)
8010 ROSWELL ROAD, SUITE 120, ATLANTA, GEORGIA 30350
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(Address of principal executive offices) (Zip Code)
(770) 394-6000
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(Registrant's Telephone Number, including Area Code)
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On January 4, 2001, Roberts Realty Investors, Inc. completed the sale of its
Rosewood Plantation community to Rosewood Plantation Apartments, Inc. for
$14,800,000. Rosewood Plantation is a 152-unit apartment community located in
Norcross, Georgia. Net cash proceeds were $5,818,000 (after deducting prorated
rent of approximately $73,000) after deducting:
o $7,876,000 for the mortgage note payable, which was assumed by the
buyer;
o $366,000 for closing costs and prorations; and
o $740,000 for a partnership profits interest to Roberts Properties,
Inc., a non-owned affiliate, under the terms of the agreement of
limited partnership of Roberts Properties Residential, L.P., through
which Roberts Realty conducts its business.
The purchaser is unaffiliated with Roberts Realty, and the transaction was
negotiated at arms-length. In negotiating the sales price, Roberts Realty
considered, among other factors:
o the Rosewood Plantation community's historical and anticipated cash
flows;
o the condition and location of the community; and
o current market conditions.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Pro Forma Financial Statements
(1) Pro forma condensed consolidated balance sheet as of September
30, 2000 (unaudited).
(2) Pro forma consolidated statements of operations for the nine
months ended September 30, 2000 (unaudited) and for the year
ended December 31, 1999 (unaudited).
(b) Exhibits
99.1 Press Release concerning the sale of Rosewood Plantation.
2
<PAGE>
ROBERTS REALTY INVESTORS, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
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(UNAUDITED)
This unaudited pro forma condensed consolidated balance sheet is presented as if
Roberts Realty had completed the sale of the Rosewood Plantation community on
September 30, 2000. In management's opinion, all adjustments necessary to
reflect the effect of this transaction have been made. This unaudited pro forma
condensed consolidated balance sheet is not necessarily indicative of what the
actual financial position would have been at September 30, 2000, nor does it
purport to represent the future financial position of Roberts Realty.
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS)
PRO FORMA
ADJUSTMENTS THE
FOR THE SALE COMPANY
(A) OF ROSEWOOD PRO FORMA
HISTORICAL PLANTATION CONSOLIDATED
---------- ---------- ------------
ASSETS
<S> <C> <C> <C>
NET REAL ESTATE ASSETS $122,160 $(6,125) (B) $116,035
CASH AND CASH EQUIVALENTS 3,488 5,919 (C) 9,407
RESTRICTED CASH 398 (29) (D) 369
OTHER ASSETS-NET 1,385 1,385
-------- ------ --------
$127,431 $(235) $127,196
======== ====== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Mortgage notes payable $77,762 $(7,901) (E) $69,861
Construction note payable 8,731 8,731
Land note payable 2,000 2,000
Other liabilities 6,147 (29) (F) 6,118
------- ------- -------
Total liabilities 94,640 (7,930) 86,710
MINORITY INTEREST 10,887 2,555 (G) 13,442
SHAREHOLDERS' EQUITY
Common stock 51 51
Additional paid-in capital 23,730 (2,555) (G) 21,175
Treasury stock (1,767) (1,767)
Unamortized deferred compensation (110) (110)
Retained earnings 0 7,695 (H) 7,695
-------- ------ -------
Total shareholders' equity 21,904 5,140 27,044
$127,431 $(235) $127,196
======== ====== ========
</TABLE>
3
<PAGE>
Notes to pro forma condensed consolidated balance sheet (unaudited):
(A) Reflects the unaudited historical consolidated balance sheet of Roberts
Realty as of September 30, 2000.
(B) Reflects a decrease for the net book value as of September 30, 2000 of
Rosewood Plantation that was sold on January 4, 2001.
(C) Reflects the net sales proceeds of $5,890,000 from the sale of Rosewood
Plantation on January 4, 2000 (pro forma as of September 30, 2000) and
$29,000 from the release of previously restricted cash.
(D) Reflects the decrease from the release of restrictions on certain cash
balances as a result of the sale of Rosewood Plantation.
(E) Reflects a decrease for the $7,901,000 mortgage note payable as of
September 30, 2000 that was assumed by the buyer of Rosewood
Plantation.
(F) Reflects the assumption by the buyer of security and pet deposits as a
result of the sale of Rosewood Plantation.
(G) Represents the adjustment necessary to reflect the 33.2% pro forma
minority interest in the aggregate gain of $7,695,000 (pro forma as of
September 30, 2000) on the sale of Rosewood Plantation.
(H) Represents a gain of $7,695,000 (pro forma as of September 30, 2000) on
the sale of Rosewood Plantation.
4
<PAGE>
ROBERTS REALTY INVESTORS, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
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The accompanying unaudited pro forma consolidated statement of operations is
presented as if Roberts Realty had completed the sale of both the Rosewood
Plantation and Ivey Brook communities on January 1, 2000. In management's
opinion, all adjustments necessary to reflect the effect of these transactions
have been made. This unaudited pro forma consolidated statement of operations is
not necessarily indicative of what the actual results of operations would have
been for the nine months ended September 30, 2000, nor does it purport to
represent the results of operations for future periods.
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS) (C)
(B) PRO FORMA
PRO FORMA ADJUSTMENTS
ADJUSTMENTS FOR SALE OF THE COMPANY
(A) FOR SALE OF ROSEWOOD PRO FORMA
HISTORICAL IVEY BROOK PLANTATION CONSOLIDATED
---------- ---------- ---------------- ---------------
OPERATING REVENUES:
<S> <C> <C> <C> <C>
Rental operations $14,009 $ (804) $ (1,284) $11,921
Other operating income 1,063 (86) (72) 905
---------- --------- --------- -------
Total operating revenues 15,072 (890) (1,356) 12,826
---------- --------- --------- -------
OPERATING EXPENSES:
Personnel 1,445 (98) (130) 1,217
Utilities 957 (67) (63) 827
Repairs, maintenance and
landscaping 937 (55) (66) 816
Real estate taxes 1,205 (61) (95) 1,049
Marketing, insurance and other 625 (37) (43) 545
General and administrative
expenses 1,579 0 0 1,579
Depreciation of real estate assets 4,005 (209) (266) 3,530
---------- ---------- ---------- ----------
Total operating expenses 10,753 (527) (663) 9,563
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 4,319 (363) (693) 3,263
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSES):
Interest income 170 (2) (3) 165
Interest expense (3,803) 213 394 (3,196)
Loss on disposal of assets (79) 12 1 (66)
Amortization of deferred
financing costs (163) 7 9 (147)
Other amortization expense 0 0 0 0
----------- ----------- ---------- ----------
Total other expense (3,875) 230 401 (3,244)
----------- ----------- ---------- ----------
5
<PAGE>
INCOME BEFORE
MINORITY INTEREST, GAINS
ON SALE OF REAL ESTATE
ASSET AND
EXTRAORDINARY ITEMS 444 (133) (292) 19
MINORITY INTEREST OF
UNITHOLDERS IN THE
OPERATING PARTNERSHIP (149) 45 99 (5)
---------- ---------- ---------- ----------
INCOME BEFORE GAIN
ON SALE OF REAL ESTATE
ASSET AND
EXTRAORDINARY ITEM 295 (88) (193) 14
GAIN ON SALE OF REAL ESTATE
ASSET, net of minority interest
of unitholders in the operating
partnership 2,284 (2,284) 0 0
----- ------- ----- -----
INCOME BEFORE
EXTRAORDINARY ITEM 2,579 (2,372) (193) 14
EXTRAORDINARY ITEM-loss on
early extinguishment of debt, net
of minority interest of unitholders
in the operating partnership (68) 68 0 0
------ ------- ------ -----
NET INCOME $2,511 $(2,304) $(193) $14
====== ======= ====== =====
INCOME PER COMMON SHARE - BASIC AND DILUTED:
Income before
extraordinary item $0.52 $(0.48) $(0.04) $0.00
Extraordinary items (0.01) 0.01 0.00 0.00
----- ------ ------- -------
Net income $0.51 ($0.47) $(0.04) $0.00
===== ====== ======= =======
Weighted average common
shares - basic 4,885,844 4,885,844 4,885,844 4,885,844
Weighted average common
shares - diluted 7,391,467 7,391,467 7,391,467 7,391,467
</TABLE>
Notes to pro forma consolidated statement of operations (unaudited):
(A) Reflects the unaudited historical consolidated statement of operations
of Roberts Realty for the nine months ended September 30, 2000.
(B) Reflects the historical statement of operations for the Ivey Brook
community for the period January 1, 2000 through June 23, 2000, the
date the community was sold.
(C) Reflects the historical statement of operations for Rosewood Plantation
for the nine months ended September 30, 2000.
6
<PAGE>
ROBERTS REALTY INVESTORS, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
(UNAUDITED)
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The accompanying unaudited pro forma consolidated statement of operations is
presented as if Roberts Realty had completed the sale of the Rosewood
Plantation, Ivey Brook, and Bentley Place communities on January 1, 1999. In
management's opinion, all adjustments necessary to reflect the effect of these
transactions have been made. This unaudited pro forma consolidated statement of
operations is not necessarily indicative of what the actual results of
operations would have been for the year ended December 31, 1999, nor does it
purport to represent the results of operations for future periods.
<TABLE>
<CAPTION>
(DOLLARS IN THOUSANDS) (B) (D)
PRO FORMA (C) PRO FORMA
ADJUSTMENTS PRO FORMA ADJUSTMENTS
FOR SALE OF ADJUSTMENTS FOR SALE OF THE COMPANY
(A) BENTLEY FOR SALE OF ROSEWOOD PRO FORMA
HISTORICAL PLACE IVEY BROOK PLANTATION CONSOLIDATED
---------- ----- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Rental operations $18,163 $(675) $(1,682) $(1,641) $14,165
Other operating income 1,221 (27) (140) (60) 994
---------- ---------- ---------- ---------- -----------
Total operating revenues 19,384 (702) (1,822) (1,701) 15,159
---------- --------- ---------- ---------- -----------
OPERATING EXPENSES:
Personnel 1,785 (74) (170) (144) 1,397
Utilities 1,301 (28) (125) (81) 1,067
Repairs, maintenance and
landscaping 1,180 (61) (63) (80) 976
Real estate taxes 1,574 (61) (128) (128) 1,257
Marketing, insurance and other 848 (30) (65) (59) 694
General and administrative
expenses 1,964 0 0 0 1,964
Depreciation of real estate assets 5,529 (189) (498) (368) 4,474
---------- ---------- ---------- ---------- ----------
Total operating expenses 14,181 (443) (1,049) (860) 11,829
---------- --------- ---------- ---------- ----------
INCOME FROM OPERATIONS 5,203 (259) (773) (841) 3,330
---------- --------- ----------- ---------- -----------
OTHER INCOME (EXPENSES):
Interest income 159 (2) (4) (5) 148
Interest expense (5,244) 184 447 531 (4,082)
Loss on disposal of assets (81) 5 6 1 (69)
Amortization of deferred
financing costs (219) 8 15 13 (183)
Other amortization expense (11) 0 0 0 (11)
---------- --------- ---------- --------- -----------
Total other expense (5,396) 195 464 540 (4,197)
---------- --------- ---------- --------- -----------
7
<PAGE>
INCOME (LOSS) BEFORE
MINORITY INTEREST,
GAINS ON SALE OF REAL
ESTATE ASSET AND
EXTRAORDINARY ITEMS (193) (64) (309) (301) (867)
MINORITY INTEREST OF
UNITHOLDERS IN THE
OPERATING PARTNERSHIP 70 23 112 108 313
-------- -------- ------ ------ ------
INCOME (LOSS) BEFORE GAIN
ON SALE OF REAL ESTATE
ASSET AND
EXTRAORDINARY ITEM (123) (41) (197) (193) (554)
GAIN ON SALE OF REAL
ESTATE ASSET, net of
minority interest of unitholders
in the operating partnership 1,023 (1,023) 0 0 0
----- ------- ------ ----- -----
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 900 (1,064) (197) (193) (554)
EXTRAORDINARY ITEM-loss on
early extinguishment of debt,
net of minority interest of
unitholders in the operating
partnership (184) 184 0 0 0
------ ------- ------ ----- -----
NET INCOME (LOSS) $716 $(880) $(197) $(193) $(554)
====== ======= ======= ===== =====
INCOME PER COMMON SHARE - BASIC AND DILUTED:
Income (loss) before
extraordinary item $0.19 $(0.23) $(0.04) $(0.04) $(0.12)
Extraordinary item (0.04) 0.04 0.00 0.00 0.00
-------- ------- ------- ------- -------
Net income (loss) $0.15 ($0.19) $(0.04) $(0.04) $(0.12)
======== ======= ======= ======= =======
Weighted average common
shares - basic 4,737,008 4,737,008 4,737,008 4,737,008 4,737,008
Weighted average common
shares - diluted 7,448,757 7,448,757 7,448,757 7,448,757 7,448,757
</TABLE>
Notes to pro forma consolidated statement of operations (unaudited):
A. Reflects the unaudited historical consolidated statement of operations
of Roberts Realty for the twelve months ended December 31, 1999.
B. Reflects the historical statement of operations for the Bentley Place
community for the period January 1, 1999 through August 23, 1999, the
date the community was sold.
C. Reflects the historical statement of operations for Ivey Brook for the
twelve months ended December 31, 1999.
D. Reflects the historical statement of operations for Rosewood Plantation
for the twelve months ended December 31, 1999.
8
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be filed on its behalf by the
undersigned hereunto duly authorized.
ROBERTS REALTY INVESTORS, INC.
Dated: January 19, 2001 By: /s/ Charles R. Elliott
----------------------
Charles R. Elliott
Chief Financial Officer
9
<PAGE>
Exhibit Index
Exhibit No. Description
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99.1 Press Release concerning the sale of Rosewood Plantation.
10
