Two Merging REITs Report Latest Earnings

SAN DIEGO-Excel Legacy Corp. and Price Enterprises Inc., which hope to complete a merger next month, have released second-quarter earnings.

Locally based Excel Legacy reported earnings for the quarter ended June 30 of $3 million, compared to $2.5 million for the quarter ended June 30, 2000. Net income for the quarter was $900,000 compared to a net loss of $200,000 for the year-earlier quarter.

The results were influenced by increased income from Price Enterprises due to real estate acquisitions and were offset by expenses relating to the proposed merger, according to the companies.

Total assets at the quarter’s end were $348.7 million. Legacy owns 91.3% of the common stock of Price Enterprises and manages Price Enterprises’ property portfolio.

Price Enterprises reported funds from operations for the quarter ended June 30 of $3.9 million compared to $2.7 million for the quarter ended June 30, 2000.

The companies in March announced a proposed merger to form Price Legacy Corp., along with a $100 million investment by Warburg Pincus, the global private equity firm.

Price Enterprises also announced today the acquisition of two open-air shopping centers located in Mesa and Tempe, AZ. The Groves in Tempe was purchased for approximately $23.9 million by assuming $13.9 million in mortgage debt and the balance in cash.

The Groves has anchor tenants of Circuit City, J.C. Penney, Office Max and Designer Shoe Warehouse. Wal-Mart is also an anchor tenant in the center but was not included in the purchase.

The second property, Mesa Pavilions in Mesa, AZ, was purchased for about $31.4 million by assuming $21.2 million in mortgage debt and the balance in cash.