NEW YORK, June 8, 2015 /PRNewswire/ -- Regency
Affiliates, Inc. (OTC Pink: RAFI) ("Regency") today announced that
it will pay a quarterly dividend of $.055 per common share on July 7, 2015 to shareholders of record at the
close of trading on June 30,
2015.
Management Comments
"We are pleased to declare our quarterly dividend of
$0.055 per share which will include
the 10% increase initiated in October
2014," 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. The mortgage balance
will be amortized to approximately $35
million on June 30, 2015, down
from $98.5 million at the lease
commencement on June 24, 2003. We
anticipate that the mortgage will be amortized by more than
$6.8 million in 2015."
"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 $2.7 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 approximately $11.2
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 and businesses 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.
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SOURCE Regency Affiliates, Inc.
