NEW YORK, Sept. 10, 2014 /PRNewswire/ -- Regency
Affiliates, Inc. (OTC Pink: RAFI) ("Regency") today announced that
it will issue a quarterly dividend of $.055 per common share payable on
October 7, 2014 to shareholders of
record at the close of trading on September
30, 2014.
Management Comments
"We are pleased to announce a 10% increase in our quarterly
dividend to $0.055 per share",
commented Laurence Levy, Chairman
and Chief Executive of Regency. "After a review of our cash flow
and growth we believe we will be able to support this dividend both
currently and in the future."
"Our Security West investment represents a 50% indirect interest
in real estate occupied by the United States Social Security
Administration under a lease expiring in 2018. This lease has paid
the mortgage on the property down from $98.5
million at the lease commencement on June 24, 2003, to $40.9
million as of August 15, 2014.
We anticipate that the mortgage will be amortized by more than
$6.5 million in 2014. Additionally,
Regency owns an indirect 50% interest in Mobile Energy which owns
and operates an energy facility located in Mobile, Alabama. The facility supplies
co-generated steam and electricity for use in Kimberly-Clark's mill operations under a 15
year agreement signed in 2004. This investment currently generates
in excess of $2.5 million of cash
distributions per annum for Regency. Since our investment in
Mobile Energy, the debt on that entity has been amortized from
$28.5 million on the date of our
investment on April 30, 2004 to the
current balance of $13.6
million."
"We are continuing to review and evaluate further investment
opportunities for Regency, and intend to grow the company by
investing in other attractive long term assets that meet our
business characteristics and valuation criteria. Our cash resources
and value per share continue to grow based on our existing
investments. In order to facilitate efficient processing of the
dividend, management strongly suggests all shareholders with shares
held in certificate form contact our transfer agent,
TransferOnline, Inc. at (503) 227-2950 and confirm that the
registration information is correct."
About Regency Affiliates
Regency Affiliates, Inc. invests in assets that generate
attractive, predictable and sustainable returns on capital. We
currently own two assets:
- An indirect 50% interest in the 717,000 square foot facility
Security West complex located on 34.3 acres in Woodlawn, Maryland. The facility is occupied
under a lease expiring in 2018 by the United States Social Security
Administration; and
- An indirect 50% interest in Mobile Energy which owns and
operates an energy facility located on approximately 11 acres of
land in Mobile, Alabama. The
facility supplies up to 61 megawatts of co-generated steam and
electricity for use in the Kimberly-Clark's mill's operations under a 15
year agreement signed in 2004.
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements are statements that are predictive in
nature or depend on or refer to future events and can be identified
by the words "may," "might," "will," "should," "anticipate,"
"believe," "expect," "intend," "estimate," "hope," or similar
expressions. Forward-looking statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with
accuracy or are otherwise beyond our control and some of which
might not even be anticipated. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date they are made. Future events and actual results,
affecting our strategic plan as well as our financial position,
results of operations and cash flows, could differ materially from
those described in or contemplated by the forward-looking
statements. Important factors that contribute to such risks
include, but are not limited to, the effect of the economic
downturn in our markets; a default or catastrophe involving the
properties in which we invest, our ability to use tax loss and
credit carryforwards or changes in amounts allocated to us from our
Security Land investment for tax purposes and competition for
business opportunities. We undertake no obligation to update or
revise any forward looking statement, whether as a result of new
information, future events or otherwise.
For a more detailed description of these uncertainties and other
factors, please see the Regency website at
www.regencyaffiliates.com.
SOURCE Regency Affiliates, Inc.
