-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AjVCJ5VNrqFH8WeH1BeDv6ATbEkNQuV07R7oVzm35quMoyDMTkWOXU6LiSkWLEQj Lu4IUtsj3rKoSIxGpflOZQ== 0000950152-00-001160.txt : 20000217 0000950152-00-001160.hdr.sgml : 20000217 ACCESSION NUMBER: 0000950152-00-001160 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20000216 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS CENTRAL INDEX KEY: 0000037008 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 346513657 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06249 FILM NUMBER: 547305 BUSINESS ADDRESS: STREET 1: 55 PUBLIC SQUARE STREET 2: STE 1900 CITY: CLEVELAND STATE: OH ZIP: 44113 BUSINESS PHONE: 2167814030 MAIL ADDRESS: STREET 1: 55 PUBLIC SQUARE SUITE 1910 CITY: CLEVELAND STATE: OH ZIP: 44113 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION REALTY DATE OF NAME CHANGE: 19691012 8-K 1 FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INV. 1 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 --------------------------------- Date of Report February 16, 2000 ----------------- First Union Real Estate Equity and Mortgage Investments - -------------------------------------------------------------------------------- (Exact name of Registrant as Specified in Its Charter) Ohio 1-6249 34-6513657 - ---------------------------- ------------------------ ------------------- (State or Other Jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation) Identification No.) Suite 1900, 55 Public Square Cleveland, Ohio 44113-1937 - ---------------------------------------- ------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (216) 781-4030 ------------------- - -------------------------------------------------------------------------------- Former Name or Former Address, if Changed Since Last Report. Total number of pages in report: 3. 2 ITEM 5. OTHER EVENTS The registrant has announced its intention to spin-off Imperial Parking Corporation (Impark) to its shareholders. Impark is owned by First Union Management, Inc. (FUMI) whose shares are held in trust for the benefit of the shareholders of the registrant. The spin-off is expected to occur in the first half of 2000. As part of this transaction, the registrant will repay Impark's bank credit facility of approximately $22 million, contribute approximately $7 million in cash to Impark, contribute the 14 parking properties that it owns in Canada to Impark and fund up to $6 million for a parking development to be owned by Impark. Additionally, the registrant will provide a secured $8 million line of credit to Impark. Prior to the spin-off, Ventek International, Inc. (Ventek), a subsidiary of Impark, will be sold to FUMI. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS a) Financial Statements of Businesses Acquired ------------------------------------------- Not applicable. b) Pro Forma Financial Information ------------------------------- Pro Forma Combined Balance Sheet as of September 30, 1999. Pro Forma Combined Statement of Operations for the Nine Months Ended September 30, 1999. Pro Forma Combined Statement of Operations for the Twelve Months Ended December 31, 1998. The Pro Forma Combined Balance Sheet of the registrant as of September 30, 1999, has five adjustment columns; a $29.6 million second mortgage loan obtained in October 1999 on the St. Cloud shopping mall, the sale of six southwestern malls which occurred in December 1999, the spin-off of Impark (including the 14 parking properties contributed by the registrant), the purchase of Ventek by First Union Management, Inc., the repayment of Impark's bank debt and $7 million cash contributed to Impark by the registrant at the time of spin-off and the $6 million parking development facility. The Pro Forma Combined Statements of Operations for the twelve months ended December 31, 1998 and for the nine months ended September 30, 1999 has six adjustment columns; the sale of properties prior to September 30, 1999, a $29.6 million second mortgage loan obtained in October 1999 on the St. Cloud shopping mall, the sale of six southwestern malls which occurred in December 1999, the spin-off of Impark (including the 14 parking properties contributed by the registrant), the purchase of Ventek by First Union Management, Inc., the repayment of Impark's bank debt and $7 million cash contributed to Impark by the registrant at the time of spin-off and the $6 million parking development facility. The Pro Forma Combined Statements of Operations assume that the transactions occurred on the first day of the respective periods; while the Pro Forma Combined Balance Sheet as of September 30, 1999 assumes that the transactions occurred on the last day of the period. The Pro Forma Combined Statements of Operations for the twelve months ended December 31, 1998 and for the nine months ended September 30, 1999 are not necessarily indicative of the actual results that would have occurred had the transaction been consummated on the first day of the respective periods or of future operations of the registrant. The Pro Forma Financial Statements do not take into consideration the increase in the registrant's liquidity or possible uses of the funds. 3 c) Exhibits --------- 99.1) Pro Forma Combined Balance Sheet as of September 30, 1999. 99.2) Pro Forma Combined Statement of Operations for the Nine Months Ended September 30, 1999. 99.3) Pro Forma Combined Statement of Operations for the Twelve Months Ended December 31, 1998. 99.4) Notes to Pro Forma Financial Statements. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. First Union Real Estate Equity and Mortgage Investments ------------------------ (Registrant) Date: February 16, 2000 By:/S/ Gregory C. Scott ----------------- Gregory C. Scott Controller EX-99.1 2 EXHIBIT 99.1 1 EXHIBIT 99.1
FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS Pro Forma Combined Balance Sheets as of September 30, 1999 (in thousands) St. Cloud Sold Southwestern September 30, 1999 Refinancing Retail Properties ------------------- ------------------ ------------------ ASSETS Investments in real estate Land $ 97,854 (38,070) Buildings and improvements 428,059 (156,471) --------------- ------------------ ---------------- 525,913 -- (194,541) Less - Accumulated depreciation (82,056) 9,336 --------------- ------------------ ---------------- Total investments in real estate 443,857 -- (185,205) Investment in joint venture 1,704 Mortgage loans and notes receivable 8,426 Other assets Cash and cash equivalents - unrestricted 49,120 28,611 32,706 - restricted 29,254 (11,091) Accounts receivable and prepayments 10,942 Inventory 3,438 Goodwill, net 43,982 Management and lease agreements, net 735 Deferred charges and other, net 3,227 (341) Unamortized debt issue costs 5,253 974 (2,568) Other 5,064 ----------------- ------------------ ---------------- Total assets $ 605,002 29,585 (166,499) ================= ================== ================ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Mortgage loans $ 326,825 29,585 (160,992) Notes payable 125 Senior notes 12,538 Bank loans 21,394 Accounts payable and accrued liabilities 33,725 Deferred obligations 10,585 Deferred income 1,967 ----------------- ------------------ ---------------- Total liabilities 407,159 29,585 (160,992) ----------------- ------------------ ---------------- Minority interest 436 - Shareholders' equity Preferred shares of beneficial interest, $25 liquidation preference, 2,300,000 shares authorized and 1,349,000 outstanding 31,737 Shares of beneficial interest, $1 par, unlimited authorization, outstanding 42,477 Paid-in capital 125,148 (5,507) Foreign currency translation adjustment (1,955) ----------------- ------------------ ---------------- Total shareholders' equity 197,407 (5,507) ----------------- ------------------ ---------------- $ 605,002 29,585 (166,499) ================= ================== ================ Repayment of Impark Bank Debt and Impark and Canadian Cash Contributed Real Estate by Registrant September 30, 1999 Subsidiaries Ventek to Impark Pro Forma ----------------- ----------------- ----------------- ------------------ ASSETS Investments in real estate Land (7,012) $ 52,772 Buildings and improvements (1,695) 269,893 --------------- ----------------- ----------------- ----------------- (8,707) -- -- 322,665 Less - Accumulated depreciation 103 (72,617) --------------- ----------------- ----------------- ----------------- Total investments in real estate (8,604) -- -- 250,048 Investment in joint venture 1,704 Mortgage loans and notes receivable (2,962) 5,464 Other assets Cash and cash equivalents - unrestricted (2,633) 38 (20,000) 87,842 - restricted (15,000) 3,163 Accounts receivable and prepayments (6,636) 1,172 5,478 Inventory (3,438) 2,498 2,498 Goodwill, net (43,982) -- Management and lease agreements, net (735) -- Deferred charges and other, net 2,886 Unamortized debt issue costs (34) 3,625 Other (5,064) 243 243 ---------------- ----------------- ----------------- ----------------- Total assets (74,088) 3,951 (35,000) $ 362,951 ================ ================= ================= ================= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Mortgage loans $ 195,418 Notes payable 125 Senior notes 12,538 Bank loans (21,394) -- Accounts payable and accrued liabilities (18,923) 675 15,477 Deferred obligations 10,585 Deferred income (958) 1,009 ---------------- ----------------- ----------------- ----------------- Total liabilities (41,275) 675 0 235,152 ---------------- ----------------- ----------------- ----------------- Minority interest (436) -- -- Shareholders' equity Preferred shares of beneficial interest, $25 liquidation preference, 2,300,000 shares authorized and 1,349,000 outstanding 31,737 Shares of beneficial interest, $1 par, unlimited authorization, outstanding 42,477 Paid-in capital (34,332) 3,276 (35,000) 53,585 Foreign currency translation adjustment 1,955 - ---------------- ----------------- ----------------- ----------------- Total shareholders' equity (32,377) 3,276 (35,000) 127,799 ---------------- ----------------- ----------------- ----------------- (74,088) 3,951 (35,000) $ 362,951 ================ ================= ================= =================
EX-99.2 3 EXHIBIT 99.2 1 EXHIBIT 99.2 FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS PRO FORMA COMBINED STATEMENTS OF INCOME For the nine months Ended September 30, 1999 Unaudited
Properties sold First Union prior to (Historical) September 30, 1999 ---------------------------- ------------------------------ REVENUES Rents $ 225,109 (18,009) Interest - Mortgage loans 355 - Short-term investments 1,368 (48) - Investments Joint venture income and fees 228 Other 730 ---------------------------- ------------------------------ 227,790 (18,057) ---------------------------- ------------------------------ EXPENSES Property operating 161,955 (7,158) Real estate taxes 7,978 (1,772) Depreciation and amortization 22,831 (6,413) Interest-mortgages 20,959 (1,272) - Notes payable 4,201 (4,193) - Senior notes 835 - Bank loans and other 5,793 (3,253) General and administrative 12,856 (159) Realized currency gain (863) Unrealized loss on carrying value of assets held for disposition 9,000 ---------------------------- ------------------------------ 245,545 (24,220) INCOME/ (LOSS) BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND $ (17,755) 6,163 ============================ ============================== Per share data LOSS BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND, BASIC AND DILUTED $ (0.50) ============================ Adjusted shares of beneficial interest,basic 35,520 Adjusted shares of beneficial interest, diluted 35,524 St. Cloud Sold Southwestern Refinancing Retail Properties ------------------------------- ---------------------------------- REVENUES Rents (26,603) Interest - Mortgage loans - Short-term investments - Investments Joint venture income and fees Other ------------------------------- ---------------------------------- - (26,603) ------------------------------- ---------------------------------- EXPENSES Property operating (10,169) Real estate taxes (1,488) Depreciation and amortization (3,540) Interest-mortgages (7,881) - Notes payable 3,326 - Senior notes - Bank loans and other General and administrative (178) Realized currency gain Unrealized loss on carrying value of assets held for disposition ------------------------------- ---------------------------------- 3,326 (23,256) INCOME/ (LOSS) BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND (3,326) (3,347) =============================== ================================== Per share data LOSS BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND, BASIC AND DILUTED Adjusted shares of beneficial interest,basic Adjusted shares of beneficial interest, diluted Repayment of Impark Bank Debt and Impark and Canadian Cash Contributed Real Estate by Registrant Subsidiaries Ventek to Impark ------------------- --------------------------- ----------------------------- REVENUES Rents (139,473) 3,152 Interest - Mortgage loans (8) - Short-term investments (5) (1,315) - Investments Joint venture income and fees Other (8) ------------------- --------------------------- ----------------------------- (139,494) 3,152 (1,315) ------------------- --------------------------- ----------------------------- EXPENSES Property operating (133,057) 3,727 Real estate taxes Depreciation and amortization (3,480) 50 Interest-mortgages - Notes payable - Senior notes - Bank loans and other (1,356) 6 General and administrative (3,945) Realized currency gain 863 Unrealized loss on carrying value of assets held for disposition ------------------- --------------------------- ----------------------------- (140,975) 3,783 - ------------------- --------------------------- ----------------------------- INCOME/ (LOSS) BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND 1,481 (631) (1,315) =================== =========================== ============================= Per share data LOSS BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND, BASIC AND DILUTED Adjusted shares of beneficial interest,basic Adjusted shares of beneficial interest, dilute Pro Forma -------------------- REVENUES Rents $ 44,176 Interest - Mortgage loans 347 - Short-term investments - - Investments - Joint venture income and fees 228 Other 722 -------------------- 45,473 -------------------- EXPENSES Property operating 15,298 Real estate taxes 4,718 Depreciation and amortization 9,448 Interest-mortgages 11,806 - Notes payable 3,334 - Senior notes 835 - Bank loans and other 1,190 General and administrative 8,574 Realized currency gain - Unrealized loss on carrying value - of assets held for disposition 9,000 -------------------- 64,203 -------------------- INCOME/ (LOSS) BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND $ (18,730) ==================== Per share data LOSS BEFORE CAPITAL GAINS AND PREFERRED DIVIDEND, BASIC AND DILUTED $ (0.53) ==================== Adjusted shares of beneficial interest,basic 35,520 Adjusted shares of beneficial interest, diluted 35,524
EX-99.3 4 EXHIBIT 99.3 1 EXHIBIT 99.3
FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS Pro Forma Combined Statements of Income For the twelve months Ended December 31, 1998 Unaudited Properties sold First Union prior to St. Cloud Sold Southwestern (Historical) September 30, 1999 Refinancing Retail Properties ----------- ----------------- ------------ ----------------- REVENUES Rents $ 320,592 (47,931) (37,095) Interest - Mortgage loans 1,211 - Short-term investments 1,337 - Investments 302 Joint venture income and fees 501 Other 583 --------- --------- ------ ------- 324,526 (47,931) -- (37,095) --------- --------- ------ ------- EXPENSES Property operating 223,667 (16,521) (14,395) Real estate taxes 12,453 (4,834) (1,965) Depreciation and amortization 33,389 (11,760) (4,737) Interest-mortgages 29,032 (4,037) 4,435 (13,731) - Notes payable 3,757 (3,757) - Senior notes 5,856 (4,765) - Bank loans and other 12,214 (7,938) General and administrative 37,577 (150) (411) Realized currency loss 2,198 Litigation and Proxy expenses 4,848 Unrealized loss on carrying value of assets held for disposition 51,000 9,000 --------- --------- ------ ------- 415,991 (53,762) 4,435 (26,239) --------- --------- ------ ------- INCOME/(LOSS) BEFORE CAPITAL GAIN, EXTRAORDINARY LOSS AND PREFERRED DIVIDEND $ (91,465) 5,831 (4,435) (10,856) ========= ========= ====== ======= Per share data LOSS BEFORE CAPITAL GAIN, EXTRAORDINARY LOSS AND PREFERRED DIVIDEND, BASIC AND DILUTED $ (2.97) ========= Adjusted shares of beneficial interest,basic 30,772 Adjusted shares of beneficial interest, diluted 31,015 Repayment of Impark Bank Debt and Impark and Canadian Cash Contributed Real Estate by Registrant Subsidiaries Ventek to Impark Pro Forma ------------ ------ --------- --------- REVENUES Rents (181,634) 5,170 $ 59,102 Interest - Mortgage loans 1,211 - Short-term investments (1,337) -- - Investments 302 Joint venture income and fees 501 Other 583 -------- ------ ------- --------- (181,634) 5,170 (1,337) 61,699 -------- ------ ------- --------- EXPENSES Property operating (175,702) 7,008 24,057 Real estate taxes 5,654 Depreciation and amortization (5,832) 46 11,106 Interest-mortgages 15,699 - Notes payable -- - Senior notes 1,091 - Bank loans and other (2,684) 23 1,615 General and administrative (9,497) 27,519 Realized currency loss (2,198) -- Litigation and Proxy expenses 4,848 Unrealized loss on carrying value -- of assets held for disposition 60,000 -------- ------ ------- --------- (195,913) 7,077 -- 151,589 -------- ------ ------- --------- INCOME/(LOSS) BEFORE CAPITAL GAIN, EXTRAORDINARY LOSS AND PREFERRED DIVIDEND 14,279 (1,907) (1,337) $ (89,890) ======== ====== ======= ========= Per share data LOSS BEFORE CAPITAL GAIN, EXTRAORDINARY LOSS AND PREFERRED DIVIDEND, BASIC AND DILUTED $ (2.92) ========= Adjusted shares of beneficial interest,basic 30,772 Adjusted shares of beneficial interest, diluted 31,015
EX-99.4 5 EXHIBIT 99.4 1
EXHIBIT 99.4 Notes to Pro Forma Combined Financial Statements 1) Proceeds from Property Sales (In thousands) USE OF PROCEEDS --------------------------------- NET PROCEEDS MORTGAGE NET PROCEEDS BANK AFTER COSTS DEBT ASSUMED AFTER DEBT NOTE CREDIT PROPERTY DATE SOLD AND PRORATIONS OR REPAID ASSUMPTION PAYABLE FACILITY CASH -------- --------- -------------- --------- ---------- ------- -------- ---- Offices Beck (a) March 23, 1999 $ 1,772 $ 1,772 $ 1,772 Sutter Buttes(a) April 1, 1999 3,627 3,627 3,627 Apartments (a),(b) May 12, 1999 83,523 $37,520 46,688 15,703 $30,985 Parking Facility Magic Mile (a) May 17, 1999 1,894 1,894 1,894 Retail Woodland Commons (a) February 17, 1999 20,789 11,469 9,320 9,320 Northwest properties May 5, 1999 36,075 36,075 2,675 33,400 (a),(c) Fingerlakes Mall (a) June 1, 1999 2,168 2,168 2,168 Ft. Dodge and Kandi June 10, 1999 21,722 21,722 122 21,600 Malls(a),(d) Mountaineer Mall (a) July 1, 1999 9,928 3,619 6,309 6,309 Fairgrounds Mall (a) July 28, 1999 24,019 24,019 5,872 $18,147 Southwestern Shopping December 15, 1999 182,606 160,990 21,615 21,615 Malls(e)
(a)Properties were sold during the first seven months of 1999 and the transactions have been recorded in the September 30, 1999 Combined Balance Sheet. For purposes of the Pro Forma Combined Statement of Operations, the transactions are assumed to have occurred on the first day of each period. (b)The apartment portfolio, which was sold to one purchaser, consisted of the following properties: Somerset Lakes in Indianapolis, IN, Steeplechase and Hunter's Creek, both in Cincinnati, OH, Beechlake in Durham, NC, Walden Village in Atlanta, GA, Briarwood in Fayetteville, NC and Windgate Place and Woodfield Gardens, both in Charlotte, NC. (c)The Northwest Malls, which were sold to one purchaser, consisted of the following properties: Valley Mall in Yakima, WA, Valley North Mall in Wenatchee, WA and Mall 205 and Plaza 205, both in Portland, OR. (d) Both malls were sold to one purchaser. (e)The six Southwestern Shopping Malls consist of the following properties: Alexandria Mall in Alexandria, LA, Brazos Mall in Lake Jackson, TX, Killeen Mall in Killeen, TX, Mesilla Valley Mall in Las Cruces, NM, Shawnee Mall in Shawnee, OK and Villa Linda Mall in Santa Fe, NM. Net proceeds reflect a $5.5 million prepayment penalty for the Park Plaza Mall in Little Rock, AR, which was not be sold in this transaction but is cross collateralized with the aforementioned malls. The Pro Forma Financial Statements also assume that the debt associated with Park Plaza of approximately $36.8 million was repaid with net proceeds from the sale of the Southwestern Shopping Malls at 1.25 times the balance outstanding (approximately $46 million). The amount of the repayment of the Park Plaza debt in excess of the balance outstanding at September 30, 1999 (approximately $9.2 million) was used to reduce the mortgage balances assumed on the six Southwestern Shopping Malls. Consequently, the debt assumed by the purchaser is approximately $161 million. Additionally, approximately $11.1 million of cash as of September 30, 1999, which is additional collateral for the mortgages securing these malls, was reclassified from restricted to unrestricted cash upon the sale. 2) The registrant, in October 1999, obtained a $29.6 million non-recourse second mortgage on its shopping mall in St. Cloud, MN. The second mortgage loan bears interest at 15% and matures in 2004 with an extension permitted by the registrant to 2009. As part of the terms of the second mortgage loan, the registrant has provided the lender an option to purchase the property on or before May 2002 for $2.5 million above the balance of the first and second mortgage loans on the property. 3) The registrant intends to repay Impark's outstanding bank balance of approximately $22 million in exchange for common shares of Impark. Additionally, the registrant intends to contribute $7 million in cash to Impark and a $6 million investment in a parking facility in exchange for additional equity in Impark. The $15 million deposit made by the registrant to secure Impark's credit facility is returned after the bank facility is repaid. 2
Mortgage Debt at September 30, 1999 ------------------------------------ Property (In thousands) Six Malls Sold Park Plaza Repaid Total Repaid -------------- ----------------- ------------ Alexandria $21,075 Brazos 15,465 Killeen 27,807 Mesilla Valley 24,197 Shawnee 11,367 Park Plaza $36,833 Villa Linda 24,248 Required repayment of Park Plaza Mortgage at 1.25 times outstanding balance at payoff (9,208) 9,208 -------- ------- -------- $114,951 $46,041 $160,992 ======== ======= ========
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