-----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, FSWyjl9xgJC97IMN8VwbZGioj0wdAeHqOWmFcJm6k7aS6iWk3QraeTA0N4+c+8fN YM7NZZZSSAL1hK7GeJ6RHw== 0000950152-99-003275.txt : 19990416 0000950152-99-003275.hdr.sgml : 19990416 ACCESSION NUMBER: 0000950152-99-003275 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990415 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990415 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: 99594413 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 & MORTGAGE 8-K 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 April 15, 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, one office building and eight apartment complexes. The registrant has sold a shopping center in February 1999 and two office buildings in March 1999 and April 1999. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS --------------------------------- a) Financial Statements -------------------- 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 the sale of nine shopping centers, eight apartment complexes and an office building which are under contract to be sold and the completed sales of two office buildings and a shopping center. 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 liquidity 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: April 15, 1999 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 Proforma Combined Balance Sheets as of December 31, 1998 (in thousands)
1998 1998 Adjustments Proforma ---- ----------- -------- ASSETS Investments in real estate Land $ 130,340 (31,549) $ 98,791 Buildings and improvements 676,519 (250,391) 426,128 --------- -------- --------- 806,859 (281,940) 524,919 Less - Accumulated depreciation (165,357) 97,368 (67,989) --------- -------- --------- Total investments in real estate 641,502 (184,572)(a) 456,930 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 (718)(a) 7,040 Other 6,312 -- 6,312 --------- -------- --------- Total assets $ 786,684 (185,290) $ 601,394 ========= ======== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Mortgage loans $ 345,042 (52,956)(a) $ 292,086 Notes payable 94,996 (60,327)(a) 34,669 Senior notes 12,538 -- (a) 12,538 Bank loans 125,821 (101,000)(a) 24,821 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 (214,283) 420,658 --------- -------- --------- 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 28,993(a) 118,653 Foreign currency translation adjustment (2,117) (2,117) --------- -------- --------- Total shareholders' equity 150,696 28,993 179,689 --------- -------- --------- $ 786,684 -- $ 601,394 ========= ======== =========
(a) To reflect the registrant's sale of two office buildings and a shopping center and the potential sales of nine additional shopping malls, one office building and eight apartment complexes which are under contract to be sold. The net proceeds after closing costs, mortgage prepayment fees and mortgage prepayments would be $161.3 million. For the purposes of the historical balance sheet, the remaining proceeds are used to repay $60.3 million of Notes payable and $101 million of Bank loans. The sale of the two office buildings and a shopping center resulted in gross proceeds of $27.2 million which represents 3% of the registrant's December 31, 1998 total assets. EX-99.2 3 EXHIBIT 99.2 1 EXHIBIT 99.2 FIRST UNION REAL ESTATE INVESTMENTS PROFORMA COMBINED STATEMENTS OF OPERATIONS For the Twelve months Ended December 31, 1998 (in thousands)
1998 REVENUES 1998 Adjustments Proforma --------- ----------- -------- Rents $ 320,592 $ 48,972 (a) $ 271,620 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 48,972 275,554 --------- -------- --------- EXPENSES Property operating 223,667 17,133 (a) 206,534 Real estate taxes 12,453 4,888 (a) 7,565 Depreciation and amortization 33,389 10,025 (a) 23,364 Interest-mortgages 29,032 4,037 (b) 24,995 Senior notes 5,856 3,256 (b) 2,600 Bank loans 12,214 7,753 (b) 4,461 Notes payable 3,757 2,511 (b) 1,246 General and administrative 37,577 150 (c) 37,427 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 49,753 366,238 --------- -------- --------- NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS $ (91,465) $ 781 $ (90,684) --------- -------- --------- Preferred Dividend (2,999) (2,999) --------- --------- Net loss before extraordinary loss and capital gains $ (94,464) $ (93,683) ========= ========= Per share data NET LOSS BEFORE EXTRAORDINARY LOSS AND CAPITAL GAINS, BASIC AND DILUTED $ (3.07) $ (3.04) ========= ========= Adjusted shares of beneficial interest, basic 30,772 30,772 Adjusted shares of beneficial interest, diluted 31,015 31,015
(a) To reflect the registrant's sales of 2 office buildings and a shopping mall and contracts to sell one additional office building, nine shopping malls, and eight apartment complexes. (b) To reflect the use of proceeds from the sale of the properties, net of mortgage debt on the properties. For purposes of the proforma combined statements of operations, $60.3 million of Senior Notes are assumed to be repaid as the Notes payable were used to repay $88.5 million of Senior Notes in August 1988. (c) To reflect the reduction of general and administrative expenses resulting from the sale of the registrant's apartment division. -----END PRIVACY-ENHANCED MESSAGE-----