NEW YORK, April 26, 2011 (GLOBE NEWSWIRE) -- Reis, Inc. (Nasdaq:REIS) ("Reis" or the "Company"), a leading provider of commercial real estate market information and analytical tools, today announced that it has completed the sale of the last remaining property in its residential development segment. The 119 residual lots in a subdivision known as The Orchards, in East Lyme, Connecticut, were sold in one bulk transaction for $1.8 million, plus recovery of approximately $791,000 of road and development bonding with the municipality. Cash of approximately $2.6 million was received at closing, after selling expenses and closing adjustments. The Company expects to record a modest gain in the second quarter of 2011 from this transaction. In addition, as a result of the sale, the Company realized a tax loss of approximately $14.9 million, which amount will be available to offset future consolidated taxable income of the Company without limitation. The sale also eliminates nearly $400,000 of annual property operating expenditures from Reis's cost structure in its residential development segment.
Lloyd Lynford, Chief Executive Officer of Reis, stated, "As our stockholders are aware, we have, for several years, been focused on our real estate information business. At the same time, my management team has worked to sell our legacy real estate properties in a way that delivers value to shareholders, and we are elated to be able to announce today's transaction. This sale further strengthens our balance sheet by immediately generating 24 cents per share in cash and providing us with significant NOLs to shelter future taxable income that may be generated by our core Reis Services business. It also allows us to present a cleaner picture of our business. All of management's focus can now be singularly directed toward continuing to grow our real estate information assets."
Reis, through its flagship institutional product, Reis SE , and through its new small business product, ReisReports , provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing evaluations. Depending on the product, users have access to trend and forecast analysis at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis's products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, and equity investors. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.
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Cautionary Statement Regarding Forward-Looking Statements
This press release may contain certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the Company's or management's outlook or expectations for the Company's business, operations or performance. Forward-looking statements reflect management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Please refer to the company's annual, quarterly and periodic reports on file with the SEC for a more detailed discussion of various risks that could cause results to differ materially.
CONTACT: Press/Investor Relations Contact: Mark P. Cantaluppi Reis, Inc. Vice President, Chief Financial Officer (212) 921-1122