-----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, I+Hl2618Zb6c1vQS/r45A4HIil5cbjE/VxcaUXlYoiY33tqlQCjWEJHA1I2f1RT/ ii12bJZdtR3lpJia0RqNdg== 0000950152-99-002610.txt : 19990330 0000950152-99-002610.hdr.sgml : 19990330 ACCESSION NUMBER: 0000950152-99-002610 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990329 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990329 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: 99576255 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 AND EXCHANGE ACT OF 1934 --------------------------------- Date of Report March 29, 1999 --------------- 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 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 2. 2 ITEM 5. OTHER EVENTS ------------ The registrant has entered into contracts to sell nine shopping centers and two office buildings. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- a) Financial Statements of Businesses Acquired ------------------------------------------- Not applicable b) Proforma Financial Information ------------------------------ The Proforma Combined Balance Sheet of the registrant as of December 31, 1998, attached hereto as Exhibit 99.1, and the Proforma Combined Statement of Operations for the year ended December 31, 1998, attached hereto as Exhibit 99.2, reflects proforma adjustments to the registrant's historical financial statements assuming certain properties were not owned by the registrant during that time as explained in the Notes to the Proforma Financial Statements. The Proforma Combined Statement of Operations for the year ended December 31, 1998 is not necessarily indicative of the actual results that would have occurred had the property sales been consummated at the beginning of the respective periods or of future operations of the registrant. The Proformas do not take into consideration the increase in the registrant's liqudity or possible uses of those funds. These statements should be read in conjunction with the Notes to Proforma Financial Statements. c) Exhibits 99.1) Proforma Combined Balance Sheet as of December 31, 1998 99.2) Proforma Combined Statement of Operations for the Twelve Months Ended December 31, 1998 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: March 29, 1999 By: /s/ Gregory C. Scott -------------- ---------------- Gregory C. Scott Controller 3 FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS ------------------------------------------------------- PROFORMA COMBINED STATEMENT OF OPERATIONS For the Twelve months Ended December 31, 1998 (in thousands)
(Audited) 1998 1998 Adjustments Proforma --------- ----------- -------- REVENUES Rents $ 320,592 $ 31,919 (a) $ 288,673 Interest - Mortgage loans 1,211 - 1,211 - Short-term investments 1,337 - 1,337 - Investments 302 - 302 Joint venture income and fees 501 - 501 Other 583 - 583 --------- --------- --------- 324,526 31,919 292,607 --------- --------- --------- EXPENSES Property operating 223,667 10,957 (a) 212,710 Real estate taxes 12,453 3,914 (a) 8,539 Depreciation and amortization 33,389 9,220 (a) 24,169 Interest-mortgages 29,032 1,219 (b) 27,813 Senior notes 5,856 5,856 (b) - Bank loans 12,214 869 (b) 11,345 Notes payable 3,757 3,746 (b) 11 General and administrative 37,577 - 37,577 Litigation and Proxy expenses 4,848 - 4,848 Foreign currency loss 2,198 - 2,198 Unrealized loss on carrying value of assets identified for disposition and impaired assets 51,000 - 51,000 --------- --------- --------- 415,991 35,781 380,210 --------- --------- --------- NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS $ (91,465) $ 3,862 $ (87,603) Preferred dividend (2,999) - (2,999) --------- --------- NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAIN $ (94,464) $ (90,602) ========= ========= Per share data NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS, BASIC AND DILUTED $ (3.07) $ (2.94) ========= ========= Adjusted shares of beneficial interest, basic 30,772 30,772 Adjusted shares of beneficial interest, diluted 31,015 31,115
(a) To reflect the registrant's contracts to sell two office buildings and nine shopping malls. Adjustment column also reflects the completed sales of an office building and shopping center in the first quarter of 1999. (b) To reflect the use of proceeds from the sale of the properties net of mortgage debt on the properties. 4 FIRST UNION REAL ESTATE EQUITY and MORTGAGE INVESTMENTS ------------------------------------------------------- Proforma Combined Balance Sheet as of December 31, 1998 (in thousands)
(Audited) 1998 1998 Adjustments Proforma ---------- ----------- --------- ASSETS Investments in real estate Land $ 130,340 (18,955) $ 111,385 Buildings and improvements 676,519 (169,978) 506,541 ---------- -------- --------- 806,859 (188,933) 617,926 Less - Accumulated depreciation (165,357) 81,717 (83,640) ---------- -------- --------- Total investments in real estate 641,502 (107,216) 534,286 (a) Investment in joint venture 1,722 1,722 Mortgage loans and notes receivable 5,508 5,508 Other assets Cash and cash equivalents - unrestricted 28,649 28,649 - restricted 16,526 16,526 Accounts receivable and prepayments 21,809 21,809 Investments 5 5 Inventory 2,798 2,798 Goodwill, net 45,379 45,379 Management and lease agreements, net 1,852 1,852 Deferred charges and other, net 6,864 6,864 Unamortized debt issue costs 7,758 (371) 7,387 (a) Other 6,312 6,312 ---------- -------- --------- Total assets $ 786,684 (107,587) $ 679,097 ========== ======== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Mortgage loans $ 345,042 (15,225) $ 329,817 (a) Notes payable 94,996 (90,000) 4,996 (a) Senior notes 12,538 (12,538) 0 (a) Bank loans 125,821 (10,999) 114,822 (a) Accounts payable and accrued liabilities 42,659 42,659 Deferred obligations 10,602 10,602 Deferred capital gains and other deferred income 3,283 3,283 ---------- -------- --------- Total liabilities 634,941 (128,762) 506,179 ---------- -------- --------- Minority interest 1,047 1,047 Shareholders' equity Preferred shares of beneficial interest, $25 liquidation preference, 2,300,000 shares authorized and 1,349,000 outstanding 31,737 31,737 Shares of beneficial interest, $1 par, unlimited authorization, outstanding 31,416 31,416 Paid-in capital 89,660 21,175 110,835 Foreign currency translation adjustment (2,117) (2,117) ---------- -------- --------- Total shareholders' equity 150,696 21,175 171,871 (a) ---------- -------- --------- $ 786,684 (107,587) $ 679,097 ========== ======== =========
(a) To reflect the registrant's potential sales of nine additional shopping malls and two office buildings which are under contract and the sale of an office building and shopping center in the first quarter of 1999. The sale of the office building and shopping center resulted in gross proceeds of $23.4 million which represents 3% of the registrant's December 31, 1998 total assets. The net proceeds after closing costs, mortgage prepayment fees and mortgage prepayments would be $113.5 million for both consummated asset sales and the properties under contract to sell. For the purposes of the historical balance sheet, the remaining proceeds are used to repay the $90 million Note Payable $12.5 million Senior Notes and $11.0 million of bank loans. -----END PRIVACY-ENHANCED MESSAGE-----