American Land Lease, Inc. Reports Limited Damage from Hurricane Charley; Limited Impact on Projected FY04 Earnings
17 August 2004 - 1:44AM
PR Newswire (US)
American Land Lease, Inc. Reports Limited Damage from Hurricane
Charley; Limited Impact on Projected FY04 Earnings CLEARWATER,
Fla., Aug. 16 /PRNewswire-FirstCall/ -- American Land Lease, Inc.
(NYSE:ANL) reported that five of its 29 manufactured housing
communities were subject to the damage as a result of Hurricane
Charley, but that all residents and personnel are safe, no homes
were lost, and the impact on the communities appears to be limited
to the loss of home amenities such as carports and screened
porches, and certain damage to common area facilities as described
below. The Company's Blue Heron Pines Community located in Punta
Gorda, Charlotte County, Florida suffered the most damage. All
homes survived the storm, although about 25% sustained damage to
their carports and/or screened-in porches. The community also
suffered extensive damage to its landscaping with numerous downed
trees as well as damage to its clubhouse and equipment storage
facilities. Blue Heron Pines is a golf course community and the
golf course suffered the loss of more than one half of its
maintenance equipment. The Company has already begun its cleanup
efforts on Sunday -- and expects that work will continue throughout
the coming months. Once assessments are made of the damage to the
common areas and facilities, reconstruction will begin on those
structures as well. Residents' own insurance would be used for
damage to homes and home amenities such as carports and screened-in
porches. The Company will bear the cost of restoring other
facilities and equipment. Blue Heron Pines has represented 12% of
the Company's sales volume and as a consequence of Hurricane
Charley, the Company does not expect to close any new home sales at
this community until 1Q05. Until that time all homebuilding and
construction assets in the area are expected to be dedicated to
rebuilding the losses suffered throughout the region. In addition,
the next phase of development at Blue Heron Pines had been forecast
for new home sales in Q105 and the Company currently expects a
six-month delay in the opening of that phase, with home sales in
Q305. As no homes were lost during the storm, the Company does not
foresee an interruption in lease revenues. The Company does carry a
business interruption insurance policy that replaces lost lease
revenue as a result of an event such as a hurricane for a period of
up to five years, but does not expect to utilize that policy for
this incident. The Company expects that revenues from the golf
course located at Blue Heron Pines will be lower as a result of the
damage caused by Hurricane Charley as well as the impact of the
storm on the region. Much less significant incidents of damage to
both residents' homes and community facilities were reported at the
Company's Cypress Greens (Lake Alfred, FL), Gulfstream Harbor
(Orlando, FL), Royal Palm (Haines City, FL), and Serendipity (Ft.
Myers, FL) communities. Management and community response teams are
working on repairing common area facilities and working with
residents to repair damage suffered to the homes. Additional
capital replacement costs to the company of restoring facilities
and equipment damaged or destroyed as a result of the storm is
preliminarily estimated in the range of $150,000 to $250,000, or an
additional $0.02 to $0.03 per share. Substantially all of these
costs will be incurred this quarter. The Company still expects to
generate FFO and AFFO within the annual target ranges stated in the
August 5, 2004 Second Quarter Earnings Release. Bob Blatz,
President of American Land Lease commented, "I am extremely
grateful that the American Land Lease communities and their
residents were able to survive Hurricane Charley without
significant injuries or the loss of any homes. The sound
construction and installation of the homes within our communities
is a tribute to the partnerships that we have with home
manufacturers and our installation crews -- who share our
commitment to quality and excellence. Their high standards, and
that of our on-site management teams, resulted in the high quality
of homes that survived the storm. "We expect to bring all of our
communities back to their high standards of appearance and
functionality, as we take this opportunity to evaluate our current
plans so that we can improve our communities wherever practical. I
am particularly proud of our community staffs that have responded
in such an outstanding fashion to this challenge. During my visit
to Blue Heron Pines this past Saturday, I was impressed by the
can-do attitude of our homeowners as they began to work with us to
clean up the community and they recounted how many of them felt
perfectly safe in their homes as they waited out the hurricane. All
are as committed as we are to returning the community to its
pre-eminent place among Florida retirement communities. Management
made similar observations as they toured our other affected
communities. The future is as bright as ever for American Land
Lease and our residents." American Land Lease, Inc. is a REIT that
holds interests in 29 manufactured home communities with 6,754
operational home sites, 976 developed expansion sites, 1,268
undeveloped expansion sites and 129 recreational vehicle sites.
DATASOURCE: American Land Lease CONTACT: Robert G. Blatz,
President, or Shannon E. Smith, Chief Financial Officer, both of
American Land Lease, Inc., +1-727-726-8868 Web site:
http://www.americanlandlease.com/
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