FORWARD LOOKING STATEMENTS
Certain portions of this report, and particularly the Management's Discussion and Analysis of Financial Condition and Results of Operations, contain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933, as amended, and Sections 21E of the Securities Exchange Act of 1934, as amended, which represent the Company's expectations or beliefs concerning future events. The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: the ability of the Company to generate adequate amounts of cash; the collectability of the excess of straight-line over contractual rents when due over the terms of the long-term leases; tenant default under one or more of the leases; the commencement of additional long-term land leases; changes in economic conditions that may affect either the current or future development on the Company's parcels; the impact of the COVID-19 pandemic on the economy, parking operations, and the Company's financial performance and exposure to remediation and other costs associated with its former operation of the petroleum storage facility. The Company does not undertake the obligation to update forward-looking statements in response to new information, future events or otherwise.
1.
Overview:
Critical accounting policies:
The Company believes that its revenue recognition policy for long-term leases
with scheduled rent increases meets the definition of a critical accounting
policy which is discussed in the Company's Form 10-K for the year ended
2.
Liquidity and capital resources:
Historically, the Company has had adequate liquidity to fund its operations.
Cash and cash commitments:
At
To date, all tenants have paid their monthly rent in accordance with their lease
agreements except for Metropark, the tenant that operates public parking on the
Company's undeveloped parcels other than Parcel 6C. The Company continues to
report revenue from Metropark on a cash basis as the move by many companies to a
hybrid workplace model has reduced demand for parking spaces. At
For the three months ended
The Terminal Sale Agreement and related documentation provides that the Company
is required to secure an approved remediation plan and to remediate
contamination caused by a leak in 1994 from a storage tank at the Terminal. At
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The Terminal Sale Agreement also contained a cost sharing provision for a
breasting dolphin whereby any construction costs in excess of the contract cost
of construction would be borne equally by Sprague and the Company subject to
certain limitations, including, in the Company's opinion, a 20% cap on the
increase from the initial estimate subject to the sharing arrangement. In
The declaration of future dividends will depend on future earnings and financial performance.
3. Results of operations:
Three months ended
Leasing revenue increased
Operating expenses decreased
General and administrative expense decreased
For the three months ended
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