1011109--3/28/2007--ROBERTS_REALTY_INVESTORS

related topics

{loan, real, estate}

{tax, income, asset}

{debt, indebtedness, cash}

{condition, economic, financial}

{cost, contract, operation}

{loss, insurance, financial}

{investment, property, distribution}

{regulation, change, law}

{stock, price, operating}

{cost, regulation, environmental}

{stock, price, share}

{provision, law, control}

{personnel, key, retain}

{interest, director, officer}

{operation, natural, condition}

{control, financial, internal}

We face leasing risks in our planned development and construction program. We are currently concentrated in metropolitan Atlanta, and adverse changes in economic or market conditions in Atlanta could negatively affect our financial performance and condition. We face conflicts of interest because of our business dealings with our Chief Executive Officer and his affiliates. Favorable conditions for purchasing residential properties could adversely affect our revenues from our residential communities. Changes in market or economic conditions may affect our business negatively. Terrorism could impair our business. Our commercial and office tenants may go bankrupt or be unable to make lease payments. Real estate properties are illiquid and may be difficult to sell, particularly in a poor market environment. Losses from natural catastrophes may exceed our insurance coverage. Our business depends on key personnel. If we are unable to lease up our Addison Place Shops and our Northridge office building as we intend, our financial performance and condition could suffer. We may not be able to obtain the debt and equity we need to carry out our planned development and construction program. We may be unable to refinance our existing debt or we may only be able to do so on unfavorable terms. Rising interest rates could materially and adversely affect the cost of our indebtedness. Increased debt and leverage could affect our financial position and impair our ability to make distributions to our investors. If we are unable to reinvest sales or refinancing proceeds as quickly as we expect, our financial condition may be adversely affected. If we incur additional debt, the agreements covering those debts could contain various covenants that limit our discretion in the operation of our business. Our interest rate hedging activities may not effectively protect us from fluctuations in interest rates. Our company may fail to qualify for REIT status under federal income tax laws. Our operating partnership may fail to be treated as a partnership for federal income tax purposes. We may have liability under environmental laws. We face risks related to mold and asbestos. We may acquire properties that are subject to liabilities for which we have no recourse, or only limited recourse, against the seller. We face risks in complying with Section 404 of the Sarbanes-Oxley Act of 2002. Failure to comply with the Americans with Disabilities Act or other similar laws could result in substantial costs. We do not pay regular quarterly dividends, and we do not anticipate making any distributions to investors for the indefinite future, other than possibly to preserve our REIT status if so required. The market price of our stock is subject to fluctuation as a result of our operating results, the operating results of other REITs and changes in the stock market in general. Additional issuances of equity securities may dilute the investment of our current shareholders. Restrictions on changes of control could prevent a beneficial takeover for investors. A redemption of units is taxable.

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1011109--3/28/2007--ROBERTS_REALTY_INVESTORS_INC