It’s been nearly four years since Belo Corporation split in two, with the newspaper side being spun off into a new company, A.H. Belo Corporation. Now the two have finally divided up their real estate holdings.
The two had been 50/50 owners of Belo Investment LLC, a real estate investment company. Effective December 31st, though, the two companies divided up their interests in the LLC’s real estate in downtown Dallas near both Belo’s and A. H. Belo’s operating facilities and near the City of Dallas’ new convention center hotel.
As a result of the division, which was based on independent third-party appraisals, Belo now owns the Belo Building (pictured), a seventeen story office building, and part of a city block adjacent to the new hotel. A. H. Belo now owns three commercial parking lots, each occupying all or part of a full city block, and a public-private plaza covering another city block.
Belo, the TV group owner, said it anticipates that its Q4 2011 financial results will include a modest non-cash gain as a result of the real estate division.
A. H. Belo, the newspaper company, said it anticipates that its Q4 2011 financial results will include a non-cash expense of approximately $4.5 million. The company will also record a liability of $0.8 million for deferred capital improvements to a property retained by Belo Corp.
RBR-TVBR observation: There was also some good news for folks at Belo who still own stock in A.H. Belo from the 2008 split. The newspaper company announced that Q4 EBITDA is going to come in ahead of previous expectations, so it is projecting that full-year 2011 adjusted EBTIDA will surpass $45 million. Q4 newspaper revenues are still expected to be down, but only by 4-5%.