Sizeler Reports Minimal Storm Damage From Hurricane Katrina
06 September 2005 - 3:15PM
PR Newswire (US)
- Substantially All Properties Fully Operational - NEW ORLEANS,
Sept. 6 /PRNewswire-FirstCall/ -- Sizeler Property Investors, Inc.
(NYSE:SIZ) today reported that substantially all of its properties
are not damaged by Hurricane Katrina. Based on the information
currently available to Sizeler, none of its properties has
sustained any flood or other major storm-related damage. Due to the
current conditions in New Orleans and surrounding communities,
governmental authorities have prevented Sizeler's inspection of
properties representing less than 11% of the gross leasable area of
Sizeler's retail properties and less than 15% of Sizeler's
apartment units available for rent. Two of Sizeler's three enclosed
malls are fully operational, and the third will be by mid-week. All
other properties outside the immediate New Orleans area are fully
operational. The Company has previously disclosed in its Annual
Report on Form 10-K that it believes it maintains adequate
insurance on its property portfolio. Based on the information
currently in its possession, Sizeler believes that its losses from
actual damages and storm clean-up resulting from Hurricane Katrina
will be covered by insurance policies in place, subject to
deductibles under its insurance policies. In this regard, Sizeler
notes that none of its properties, to its knowledge, has sustained
any flood, storm surge, or rising water damage, for which insurance
coverage may not be available in all cases. Sizeler Property
Investors, Inc. is an equity real estate investment trust (REIT)
that invests in retail and apartment properties in the southeastern
United States. The Company currently owns a total of thirty
properties -- sixteen in Louisiana, ten in Florida and four in
Alabama. Forward-Looking Statements Investors and potential
investors in our securities are cautioned that a number of factors
could adversely affect our Company and cause actual results to
differ materially from those in forward-looking statements or
forecasts made herein or in prior Company statements, including,
but not limited to (a) the inability to lease current or future
vacant space in our properties; (b) decisions by tenants and anchor
tenants who own their space to close stores at our properties, as
the result of individual operating decisions, internal
reorganization, or other factors; (c) the inability of tenants to
pay rent and other expenses or other tenant financial difficulties;
(d) disruption of tenant operations or uninsured repair costs as
the result of hurricanes in the southeastern U.S. or other adverse
weather conditions or forces of nature; (e) general economic and
world conditions, including threats to the United States homeland
from unfriendly factions; (f) decreases in rental rates available
from tenants; (g) increases in operating costs at our properties;
(h) increases in corporate operating costs associated with new
regulatory requirements; (i) lack of availability of financing for
acquisition, development and rehabilitation of properties by us;
(j) force majeure as it relates to construction and renovation
projects; (k) possible dispositions of mature properties because we
are continuously engaged in the examination of our various lines of
business; (l) increases in interest rates; (m) a general economic
downturn resulting in lower retail sales and causing downward
pressure on occupancies and rents at retail properties; (n) the
adverse tax consequences if we were to fail to qualify as a REIT in
any taxable year; and (o) inability to purchase or sell properties
in the amount and at the times expected or forecast by management;
(p) increases in market prices for properties such that the Company
would be required to purchase properties at lower cap rates or at
lower revenue run rates; (q) inability of our Company to implement
its strategic initiatives or achieve previously forecasted
operating performance for the foregoing reasons, due to the effects
of Hurricane Katrina, or for other reasons. In addition, the full
effects of Hurricane Katrina cannot be fully assessed at this time,
and have resulted in various uncertainties for Sizeler, in addition
to those disclosed above, and for the storm-affected areas in
general, among others: (i) the full extent of storm damage and
related conditions within the New Orleans metropolitan area and
other areas affected by the storm and the uncertainty of when
appropriate responses will be put into place, including repairs to
utilities, public water and sewer systems, and other key parts of
the infrastructure; (ii) the near- term and longer-term economic
effect of Hurricane Katrina on the economies in markets affected by
the storm and resulting effects on demands for retail and apartment
space and valuations for properties in these asset classes; (iii)
the impact of Hurricane Katrina on the claims-paying ability of the
Company's insurers, as well as actions that may be taken by the
insurance industry to limit payments for certain types of damages.
Except as required under federal securities laws and the rules and
regulations of the SEC, we do not have any intention or obligation
to update or revise any forward-looking statements made herein,
whether as a result of new information, future events, changes in
assumptions or otherwise. PROXY SOLICITATION Because Sizeler is
currently in a proxy contest, it is required to make the following
disclosures to its stockholders: SIZELER PROPERTY INVESTORS, INC.
AND ITS DIRECTORS, INCLUDING THOSE DIRECTORS WHO ARE ALSO EXECUTIVE
OFFICERS, MAY BE DEEMED TO BE PARTICIPANTS IN THE SOLICITATION OF
PROXIES FOR THE 2005 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON
OCTOBER 27, 2005. A LISTING OF THE SIZELER DIRECTORS AND CERTAIN
OTHER INFORMATION REGARDING THEIR DIRECT AND INDIRECT INTERESTS IN
THE SOLICITATION IS INCLUDED IN EXHIBIT A TO THE COMPANY'S
PRELIMINARY PROXY STATEMENT ON SCHEDULE 14A FILED ON AUGUST 22,
2005. SIZELER WILL ALSO BE FILING A DEFINITIVE PROXY STATEMENT,
FORM OF PROXY SOLICITED BY SIZELER'S BOARD OF DIRECTORS AND OTHER
RELEVANT DOCUMENTS WITH THE SECURITIES AND EXCHANGE COMMISSION IN
CONNECTION WITH ITS 2005 ANNUAL MEETING. STOCKHOLDERS OF SIZELER
ARE ADVISED TO READ, WHEN AVAILABLE, SIZELER'S DEFINITIVE PROXY
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED BY SIZELER WITH
THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH SIZELER'S
SOLICITATION OF PROXIES FOR THE 2005 ANNUAL MEETING TO BE HELD ON
OCTOBER 27, 2005 BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT
INFORMATION. STOCKHOLDERS OF SIZELER AND OTHER INTERESTED PARTIES
MAY OBTAIN FREE OF CHARGE, WHEN AVAILABLE, COPIES OF THE DEFINITIVE
PROXY STATEMENT AND ANY OTHER DOCUMENTS FILED BY SIZELER WITH THE
SECURITIES AND EXCHANGE COMMISSION (INCLUDING THE PRELIMINARY PROXY
STATEMENT ON SCHEDULE 14A FILED ON AUGUST 22, 2005), AT THE SEC'S
INTERNET WEBSITE http://www.sec.gov/ AND ALSO ON SIZELER'S INTERNET
WEBSITE http://www.sizeler.net/ WHEN SERVICE TO THE WEBSITE HAS
BEEN RESTORED. THE PRELIMINARY PROXY STATEMENT ON SCHEDULE 14A
FILED AUGUST 22, 2005, AND, WHEN AVAILABLE, THE DEFINITIVE PROXY
STATEMENT AND FORM OF PROXY SOLICITED BY SIZELER'S BOARD OF
DIRECTORS FOR THE 2005 ANNUAL MEETING TO BE HELD ON OCTOBER 27,
2005 ALSO MAY BE OBTAINED FREE OF CHARGE BY CONTACTING MORROW &
CO., INC., WHICH IS ASSISTING SIZELER IN THE SOLICITATION OF
PROXIES, AT (800) 654-2468 OR (212) 754-8000 (COLLECT). Contact:
Andrea Calise / Adam Weiner Kekst and Company (212) 521-4800
DATASOURCE: Sizeler Property Investors, Inc. CONTACT: Andrea Calise
or Adam Weiner, both for Kekst and Company, +1-212-521-4800
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