SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 28, 2000
CORNERSTONE REALTY INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 1-12875 54-1589139
(State of (Commission (IRS Employer
incorporation) File Number) Identification No.)
306 East Main Street
Richmond, Virginia 23219
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code:
(804) 643-1761
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CORNERSTONE REALTY INCOME TRUST, INC.
FORM 8-K
Index
Item 5. Other Events.
Item 7. Exhibits.
Exhibits:
99 Press Release dated February 28, 2000 announcing the
entering into of an agreement by Cornerstone Realty Income
Trust, Inc. to sell 16 apartment communities.
<PAGE>
Item 5. Other Events
On February 28, 2000, Cornerstone Realty Income Trust, Inc.
("Cornerstone") issued a Press Release (attached as an Exhibit to this Report)
announcing that it had entered into an agreement under which Cornerstone would
sell 16 apartment communities.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Cornerstone Realty Income Trust, Inc.
Date: February 28, 2000 By: /s/ Stanley J. Olander, Jr.
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Stanley J. Olander, Jr.
Chief Financial Officer
Cornerstone Realty Income Trust, Inc.
<PAGE>
Index to Exhibits
Exhibit No. Exhibit
99 Press Release dated February 28, 2000 announcing the
entering into of an agreement by Cornerstone Realty Income
Trust, Inc. to sell 16 apartment communities.
EXHIBIT 99
CORNERSTONE REALTY INCOME TRUST, INC.
FOR IMMEDIATE RELEASE
CORNERSTONE TO SELL 16 COMMUNITIES AND REDUCE DEBT UNDER 20%
RICHMOND, Virginia, February 28, 2000 - Cornerstone Realty Income Trust
(NYSE:TCR) today announced that it has contracted to sell 16 communities
containing 3,609 apartment homes for approximately $136.5 million. The sale is
expected to close within the next 30 days.
The sale will generate approximately $25 million in gain for
Cornerstone, which the Company expects to defer through a 1031 tax-free
exchange. The net sale proceeds would initially be used to pay down the
Company's existing variable rate line of credit and to fund a previously
announced common stock repurchase program. After the sale, Cornerstone's debt to
total market capitalization would be less than 20%. In addition, over 70% of the
company's total debt will have average maturities exceeding five years and fixed
interest rates averaging approximately 7%.
The sale is part of the Company's strategic decision to sell some of
its older assets. Many of these assets are in smaller markets where the company
does not have significant market concentration. The sale will remove Cornerstone
from the Greenville, SC; Wilmington, NC; Greensboro, NC; Lynchburg, VA and
Augusta, GA markets.
"We believe that this sale will increase shareholder value by capturing
the hidden equity in our mature assets and will allow Cornerstone to reinvest
the net proceeds in assets with a higher growth potential. The sale provides
equity in a challenging capital market environment and significantly reduces our
exposure to short term interest rate fluctuations," said Glade M. Knight,
Chairman and CEO.
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the future results,
performance or achievements of the Company to be materially different from any
forward-looking statements. Although the Company expects the sale and the other
events described above to occur as indicated, they are subject to certain
conditions which could delay or change their completion, or result in the sale
and other events not occurring at all.
Cornerstone Realty Income Trust, Inc. is a fully integrated,
self-managed and self-advised real estate company that has operated as a REIT
since 1993. The Company focuses on the ownership and management of multi-family
properties in select markets in Virginia, North Carolina, South Carolina,
Georgia and Texas. Currently, the Company currently owns 87 multifamily
properties containing 20,965 apartment homes. For additional information please
contact Glade M. Knight, Chairman and Chief Executive Officer, S. J. Olander,
Executive Vice President and Chief Financial Officer, David S. McKenney, Senior
Vice President of Corporate Services or Krissy Gathright, Assistant Vice
President of Corporate Services at (804) 643-1761. Further information on
Cornerstone may be found on our web site at: HTTP://WWW.CORNERSTONEREIT.COM.
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