Drive Shack Inc (DSHK)

[Enterprising Investor]

Drive Shack Inc. Announces Fourth Quarter and Full Year 2016 Results and Declares First Quarter 2017 Preferred Stock Dividends (2/28/17)

NEW YORK--(BUSINESS WIRE)--Drive Shack Inc. (NYSE:DS; the “Company”) today reported the following information for the quarter and full year ended December 31, 2016.

FULL YEAR 2016 FINANCIAL HIGHLIGHTS

• GAAP Income of $71 million, or $1.07 per basic share*

• Depreciation and amortization of $37 million, or $0.55 per basic share*

• Core Earnings of $47 million, or $0.71 per basic share**

• AFFO of $108 million, or $1.62 per basic share**

FOURTH QUARTER 2016 FINANCIAL HIGHLIGHTS

• GAAP Loss of $(21) million, or $(0.32) per basic share*

• Depreciation and amortization of $10 million, or $0.15 per basic share*

• Core Earnings of $7 million, or $0.10 per basic share**

• Adjusted Funds from Operations (“AFFO”) of $(11) million, or $(0.17) per basic share**

FULL YEAR 2016 BUSINESS HIGHLIGHTS

• American Golf – As of December 31, 2016, the Company owned, leased and managed 78 golf properties across 13 states, over 75% of which were located in the top 20 Metropolitan Statistical Areas (MSAs). ? On a same store basis, excluding managed courses, the golf business ended the year with 8,545 full golf private members, an increase of 34 members over the prior year, and over 36,000 Players Club members for public properties, an increase of approximately 17,000 members over the prior year.

• Drive Shack – The Company began developing its inaugural site in Orlando, Florida, which is targeted to open in 9 to 12 months. The Company also continued to advance development of additional Drive Shack venues, and is actively working through a pipeline of sites across the U.S. and abroad.

• Real Estate Debt Portfolio – During the year, the Company monetized $139 million of principal recovery of non-agency assets, including $110 million in repayment of a resort-related loan, $10 million from the sale of NCT CDO V bonds, $10 million from the sale of CDO VI Class IMM-2, $8 million from the sale of a real estate mezzanine loan and $1 million from the sale of other assets.

FIRST QUARTER 2017 DIVIDENDS

Drive Shack Inc.’s Board of Directors declared dividends on the Company's preferred stock for the period beginning February 1, 2017 and ending April 30, 2017. The dividends are payable on April 28, 2017 to shareholders of record on March 10, 2017. The Company will pay dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively.

The Board of Directors elected not to pay a common stock dividend in the first quarter of 2017 to retain capital for growth. All future dividend distributions will be made at the discretion of our Board of Directors and will depend upon, among other things, our earnings, investment strategy, financial condition and liquidity, and such other factors as the Board of Directors deems relevant.

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ADDITIONAL INFORMATION

For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of the Company’s website, www.driveshack.com. For consolidated investment portfolio information, please refer to the Company’s most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, which are available on the Company’s website, www.driveshack.com.

EARNINGS CONFERENCE CALL

The Company’s management will host a conference call on Tuesday, February 28, 2017 at 8:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of Drive Shack Inc.’s website, www.driveshack.com.

All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-866-393-1506 (from within the U.S.) or 1-706-634-0623 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference “Drive Shack Fourth Quarter and Full Year 2016 Earnings Call.”

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.driveshack.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:59 P.M. Eastern Time on Tuesday, March 14, 2017 by dialing 1-855-859-2056 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference access code “73274066.”

ABOUT DRIVE SHACK INC.

Drive Shack Inc. is a leading owner and operator of golf-related leisure and entertainment businesses. Drive Shack Inc. is managed by an affiliate of Fortress Investment Group LLC, a global investment management firm.

http://www.businesswire.com/news/home/20170228005672/en/Drive-Shack-Announces-Fourth-Quarter-Full-Year