EX-99.2 3 v074157_ex99-2.txt [AMREIT LOGO] -------------------------------------------------------------------------------- Supplemental Financial Information March 31, 2007 (Unaudited) Table of Contents Page # ----------------- ------ Corporate Profile 1 Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 Consolidated Statements of Operations - Segments 4 - 5 Summary of Operating Results Funds From Operations 6 Dividends - All Classes of Common Shares 6 Rental Income 7 Real Estate Revenue Allocation 7 Discontinued Operations 8 Interest Expense 8 Summary Balance Sheet Information Common Share Data 9 Capitalization 9 Portfolio Net Asset Value 9 Debt Information Outstanding Balances and Terms 10 - 11 Fixed vs. Variable Rate Debt 11 Property & Tenant Information Property Table 12- 13 Tenant Diversification 14 Leasing Activity Report 14 Lease Expiration Schedule 15 This Supplemental Financial Information package contains historical information of the Company and is intended to supplement the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2007. All financial information in this Supplemental Financial Information package is shown in thousands, except for per share data and share information. Certain information contained in this Supplemental Financial Information package includes certain forward-looking statements reflecting AmREIT's expectations in the near term that involve a number of risks and uncertainties; however, many factors may materially affect the actual results, including demand for our properties, changes in rental and occupancy rates, changes in property operating costs, interest rate fluctuations, and changes in local and general economic conditions. Accordingly, there is no assurance that AmREIT's expectations will be realized. Corporate Profile: AmREIT (AMEX: AMY) is a growing real estate company focused on the development, acquisition, construction, disposition, brokerage, leasing and management of shopping centers in major metropolitan markets throughout the Southwest and Southeast. The company deploys its broad range of real estate development and operating expertise to grow two distinct businesses within AmREIT. The first is a 1.1 million square foot portfolio of "Irreplaceable Corners TM" - Premier retail properties in high traffic, densely populated areas. The second is an advisory and sponsorship business that had a total of $280 million in assets under management as of March 31, 2007. Founded in 1985, AmREIT is a fully integrated equity real estate investment trust that has been public since 2002. Corporate Office: 8 Greenway Plaza, Suite 1000 Houston, Texas 77046 (800) 888-4400 (713) 850-0498 (fax) www.amreit.com Stock Exchange: American Stock Exchange - AMY 1 Consolidated Balance Sheets:
March 31, December 31, 2007 2006 ------------ ------------ (unaudited) ASSETS Real estate investments at cost: Land $ 133,345 $ 124,751 Buildings 140,360 140,487 Tenant improvements 9,409 9,296 ------------ ------------ 283,114 274,534 Less accumulated depreciation and amortization (11,871) (10,628) ------------ ------------ 271,243 263,906 Net investment in direct financing leases held for investment 19,200 19,204 Intangible lease cost, net 15,278 16,016 Investment in merchant development funds and other affiliates 2,564 2,651 ------------ ------------ Nettreal estate investments 308,285 301,777 Cash and cash equivalents 7,274 3,415 Tenant receivables, net 4,480 4,330 Accounts receivable, net 703 1,772 Accounts receivable - related party 2,482 1,665 Notes receivable - related party 11,269 10,104 Deferred costs 2,247 2,045 Other assets 2,841 3,322 ------------ ------------ TOTAL ASSETS $ 339,581 $ 328,430 ============ ============ LIABILITIES AND SHAREH0LDERS' EQUITY Liabilities: Notes payable $ 161,914 $ 144,453 Accounts payable and other liabilities 4,850 9,162 Below market leases, net 3,822 3,960 Security deposits 678 668 ------------ ------------ TOTAL LIABILITIES 171,264 158,243 ------------ ------------ Minority interest 1,153 1,137 Shareholders' equity: Preferred shares, $.01 par value, 10,000,000 shares authorized, none issue- -- Class A Common shares, $.01 par value, 50,000,000 shares authorized, 6,580,305 and 6,549,950 shares issued, respectively 66 65 Class B Common shares, $.01 par value, 3,000,000 shares authorized, 1,049,825 and 1,080,180 shares issued, respectively 10 11 Class C Common shares, $.01 par value, 4,400,000 shares authorized, 4,167,338 and 4,145,531 shares issued, respectively 42 41 Class D Common shares, $.01 par value, 17,000,000 shares authorized, 11,058,788 and 11,039,803 shares issued, respectively 111 110 Capital in excess of par value 194,462 194,696 Accumulated distributions in excess of earnings (26,236) (23,749) Cost of treasury shares, 177,984 and 292,238 Class A shares, respectively (1,291) (2,124) ------------ ------------ TOTAL SHAREHOLDERS' EQUITY 167,164 169,050 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 339,581 $ 328,430 ============ ============
2 Consolidated Statements of Operations:
2007 2006 ---------- ---------- Revenues: Rental income from operating leases $ 7,082 $ 5,973 Earned income from direct financing leases 507 507 Real estate fee income 694 751 Real estate fee income - related party 713 767 Construction revenues 97 621 Construction revenues - related party 876 1,173 Securities commission income - related party 993 1,391 Asset management fee income - related party 284 158 ---------- ---------- Total revenues 11,246 11,341 ---------- ---------- Expenses: General and administrative 2,210 1,879 Property expense 1,730 1,015 Construction costs 861 1,675 Legal and professional 295 312 Real estate commissions 421 540 Securities commissions 829 1,257 Depreciation and amortization 1,941 2,182 ---------- ---------- Total expenses 8,287 8,860 ---------- ---------- Operating income 2,959 2,481 Other income (expense): Interest and other income - related party 244 235 Income from merchant development funds and other affiliates (12) 98 Federal income tax expense for taxable REIT subsidiary 20 83 Interest expense (2,357) (1,743) Minority interest in income of consolidated joint ventures (36) (36) ---------- ---------- Income (loss) before discontinued operations 999 1,118 Income (loss) from discontinued operations, net of taxes 5 (30) Gain on sales of real estate acquired for resale, net of taxes (1) 5 ---------- ---------- Income from discontinued operations 4 (25) ---------- ---------- Net income 1,003 1,093 Distributions paid to class B, C and D shareholders (2,705) (2,906) ---------- ---------- Net (loss) income available to class A shareholders $ (1,702) $ (1,813) ========== ========== Net (loss) income per class A common share - basic and diluted Loss before discontinued operations $ (0.27) $ (0.28) Income from discontinued operations 0.00 (0.00) ---------- ---------- Net (loss) income $ (0.27) $ (0.28) ========== ========== Weighted average class A common shares used to compute net (loss) income per share, basic and diluted 6,320 6,425 ========== ==========
3 Segmented Statements of Operations:
Asset Advisory Business ------------------------------ For the three months Real Estate Merchant ended Development & Securities Development March 31, 2007 Portfolio Operations Operations Funds Total ----------------------------- ------------- ------------- ------------- ------------- ------------- Rental income $ 7,589 $ -- $ -- $ -- $ 7,589 Securities commission income -- -- 993 -- 993 Real estate fee income -- 1,407 -- -- 1,407 Construction revenues -- 973 -- -- 973 Asset management fee income -- -- -- 284 284 ------------- ------------- ------------- ------------- ------------- Total revenues 7,589 2,380 993 284 11,246 General and administrative 435 1,223 486 66 2,210 Property expense 1,694 36 -- -- 1,730 Construction costs -- 861 -- -- 861 Legal and professional 198 87 10 -- 295 Real estate commissions -- 421 -- -- 421 Securities commissions -- -- 829 -- 829 Depreciation and amortization 1,941 -- -- -- 1,941 ------------- ------------- ------------- ------------- ------------- Total expenses 4,268 2,628 1,325 66 8,287 Interest expense (2,229) (125) (3) -- (2,357) Other income/(expense) 217 163 114 (97) 397 Income (loss) from discontinued operations -- 4 -- -- 4 ------------- ------------- ------------- ------------- ------------- Net income (loss) $ 1,309 $ (206) $ (221) $ 121 $ 1,003 ------------- ------------- ------------- ------------- -------------
4
Asset Advisory Business ------------------------------ For the three months Real Estate Merchant ended Development Securities Development March 31, 2006 Portfolio & Operations Operations Funds Total ----------------------------- ------------- ------------- ------------- ------------- ------------- Rental income $ 6,480 $ -- $ -- $ -- $ 6,480 Securities commission income -- -- 1,391 -- 1,391 Real estate fee income -- 1,518 -- -- 1,518 Construction revenues -- 1,794 -- -- 1,794 Asset management fee income -- -- -- 158 158 ------------- ------------- ------------- ------------- ------------- Total revenues 6,480 3,312 1,391 158 11,341 General and administrative 372 1,001 489 17 1,879 Property expense 1,004 11 -- -- 1,015 Construction costs -- 1,675 -- -- 1,675 Legal and professional 242 60 10 -- 312 Real estate commissions -- 540 -- -- 540 Securities commissions -- -- 1,257 -- 1,257 Depreciation and amortization 2,182 -- -- -- 2,182 ------------- ------------- ------------- ------------- ------------- Total expenses 3,800 3,287 1,756 17 8,860 Interest expense (1,579) (161) (3) -- (1,743) Other income/ (expense) 309 58 (10) 23 380 Income from discontinued operations (27) 2 -- -- (25) ------------- ------------- ------------- ------------- ------------- Net income (loss) $ 1,383 $ (76) $ (378) $ 164 $ 1,093 ============= ============= ============= ============= =============
5 AmREIT Summary of Operating Results
Three Months Ended March 31, ------------------------ Funds From Operations: 2007 2006 ---------- ---------- Income - before discontinued operations $ 999 $ 1,118 (Loss) Income - from discontinued operations 4 (25) Plus depreciation of real estate assets - from operations 1,940 2,164 Plus depreciation of real estate assets - from discontinued operations 3 10 Adjustments for nonconsolidated affiliates 17 30 Less class B, C & D distributions (2,705) (2,906) ---------- ---------- Total Funds From Operations available to class A shareholders $ 258 $ 391 ========== ========== Weighted Average Class A Shares Outstanding 6,320 6,425 ========== ========== Funds from Operations per Class A Share $ 0.04 $ 0.06 Dividends: Class A Common share dividends per share $ 0.12 $ 0.12 Class B Common share dividends per share (1) $ 0.19 $ 0.19 Class C Common share dividends per share (2) $ 0.17 $ 0.17 Class D Common share dividends per share (3) $ 0.16 $ 0.16
(1) The class B common shares receive a cumulative preferred dividend, fixed at 8%, payable quarterly. The shares are currently convertible on a one for one basis into our class A common shares, and became callable by the Company beginning in July 2005 on a one for one basis, or $10.18 in cash at the holders option. (2) The class C common shares receive a preferred dividend, fixed at 7%, payable monthly. The shares are convertible into our class A common shares based on 110% of invested capital (i.e. $1,000 in class C common shares will convert into $1,100 in class A common shares) after the seventh anniversary of issuance (beginning in 2010). The class C common shares became callable by the Company beginning in August 2006, based on the same conversion formula (110% of invested capital). (3) The class D common shares receive a fixed 6.5% annual dividend, payable monthly. The shares are convertible into our class A common shares based on 107.7% of invested capital (i.e. $1,000 in class C common shares will convert into $1,077 in class A common shares) after the seventh anniversary of issuance (beginning in 2011). The class D common shares became callable by the Company beginning in July 2005, based on the same conversion formula, prorated for the time the shares were outstanding (107.7% of invested capital). 6 Three Months Ended March 31, ------------------- Rental and Earned Income: 2007 2006 -------- -------- Base minimum rent $ 5,222 $ 4,697 Earned income from direct financing leases 507 507 Straight line rent 146 68 Over/Under market rent 31 1 Percentage rent -- 136 Tenant reimbursements 1,683 920 Lease termination fees -- 151 -------- -------- Total Rental and Earned Income $ 7,589 $ 6,480 ======== ========
Three Months Ended March 31, -------------------- Real Estate Operating Revenue: 2007 2006 -------- -------- Development and construction management fees Merchant development funds and affiliates $ 408 $ 164 Unrelated third parties 66 -- Leasing and brokerage commissions Merchant development funds and affiliates 98 501 Unrelated third parties 628 751 Property management fees Merchant development funds and affiliates 207 102 Unrelated third parties -- -- -------- -------- Total Real Estate Operating Revenue $ 1,407 $ 1,518 ======== ======== Percent attributable to merchant development funds and affiliates 51% 51% Percent attributable to unrelated third parties 49% 49%
7 Three Months Ended Discontinued operations: March 31, -------------------- 2007 2006 -------- -------- Rental revenue and earned income from DFL $ 24 $ 28 Gain on sale of real estate held for investment -- (7) Interest and other income -- -- Gain on sale of real estate held for resale -- 5 -------- -------- Total revenues 24 26 -------- -------- Property expense -- (12) General and administrative (1) (15) Federal income tax expense (4) -- Legal and professional (1) (8) Depreciation and amortization (3) (10) Minority interest (6) -- Interest expense (5) (6) -------- -------- Total expenses (20) (51) -------- -------- Income (loss) from discontinued operations 4 (25) ======== ======== Basic and diluted income (loss) from discontinued operations per class A common share $ 0.00 $ 0.00 ======== ======== Three Months Ended March 31, -------------------- Interest Expense: 2007 2006 -------- -------- Interest paid - floating rate $ 357 $ 120 Interest paid - fixed rate 1,992 1,622 Loan cost amortization 67 58 Out-of-market debt amortization (59) (57) -------- -------- Total Interest Expense $ 2,357 $ 1,743 ======== ======== 8 AmREIT Summary Balance Sheet Information
March 31, 2007 December 31, 2006 ------------------ ------------------ Class A Common Share Data: Closing market price $ 8.79 $ 8.33 Dividend yield 5.69% 6.00% 90-day average trading volume 23,211 16,474 Total Capitalization: Debt $ 161,914 $ 144,453 Class A common shares at market 56,276 52,127 Class B common shares as converted 9,228 8,998 Class C common shares as converted 45,841 45,601 Class D common shares as converted 119,103 118,899 ------------------ ------------------ Total Capitalization $ 392,362 $ 370,078 ================== ================== Debt to Total Capitalization 41.3% 39.0%
Portfolio Net Asset Value Calculation: Annual Property NOI $ 23,327,750 Average Property Cap Rate 6.25% 6.50% Property Gross Value 373,244,000 358,888,000 Notes Receivable 11,269,000 11,269,000 Cash, Receivables, Other 17,483,000 17,483,000 ------------- ------------- Total Asset Value 401,996,000 387,640,000 Notes Payable (157,761,000) (157,761,000) Security Deposits & A/P (5,528,000) (5,528,000) ------------- ------------- Total Liabilities (163,289,000) (163,289,000) Minority Interest (1) (2,083,000) (2,083,000) Total Net Asset Value (NAV) 236,624,000 222,268,000 NAV - Non Traded Shares (2) 165,908,000 165,908,000 NAV - class A common shares (2) 70,716,000 56,360,000 NAV - Per Class A common (2) $ 11.05 $ 8.80 (1) Includes the portion of the net asset value that is owned by third parties or management, such as management's ownership interest in AAA CTL. (2) NAV and NAV per share represent only the portfolio value and other liquid assets. We have not valued the asset advisory business or any of our general partner back end interests in the above analysis. -------------------------------------------------------------------------------- 9 AmREIT Debt Information
Amount Amount Outstanding Outstanding Interest Annual Debt Maturity Description 03-31-2007 12-31-2006 Rate Service Date -------------------- ------------- ------------- ------------- ------------- ------------- Credit Facility (1) $ 9,855 $ 11,929 7.82% $ 771 11/4/2007 ------------- ------------- 2007 Maturities $ 9,855 $ 11,929 MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008 ------------- ------------- 2008 Maturities $ 13,410 $ 13,410 Sugarland IHOP $ 1,144 $ 1,155 8.25% $ 138 3/1/2011 Sugar Land Plaza 2,279 2,286 7.60% 203 11/1/2011 ------------- ------------- 2011 Maturities $ 3,423 $ 3,441 Albuquerque IHOP $ 664 $ 670 7.82% $ 75 4/24/2012 Baton Rouge IHOP 1,098 1,107 7.82% 124 4/24/2012 Beaverton IHOP 779 785 7.82% 88 4/16/2012 Charlottesville IHOP 553 558 7.82% 62 4/24/2012 El Paso #1934 IHOP 668 673 7.82% 75 4/16/2012 Rochester IHOP 835 842 7.82% 94 4/16/2012 Shawnee IHOP 659 665 7.82% 74 4/18/2012 5115 Buffalo Spdwy 2,723 2,731 7.58% 241 5/11/2012 Salem IHOP 547 551 7.82% 61 5/17/2012 Springfield IHOP 907 915 7.82% 102 6/21/2012 Roanoke IHOP 629 635 7.89% 71 7/26/2012 Centerville IHOP 1,101 1,110 7.89% 124 7/26/2012 Memphis #4462 IHOP 1,190 1,199 7.89% 134 7/19/2012 Alexandria IHOP 635 640 7.89% 71 7/19/2012 El Paso #1938 IHOP 795 802 7.89% 89 8/23/2012 La Verne IHOP 662 668 7.89% 74 8/23/2012 Memphis #4482 IHOP 690 696 7.89% 77 8/23/2012 Parker IHOP 743 749 7.89% 83 8/23/2012 ------------- ------------- 2012 Maturities $ 15,878 $ 15,996 Cinco Ranch $ 8,264 $ 8,298 5.60% $ 601 7/10/2013 Plaza in the Park 17,466 17,538 5.60% 1,270 7/10/2013 ------------- ------------- 2013 Maturities $ 25,730 $ 25,836
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Amount Amount Annual Outstanding Outstanding Interest Debt Maturity Description 09-30-2006 12-31-2005 Rate Service Date ---------------------- ------------- ------------- ------------- ------------- ------------- Uptown Park $ 49,000 $ 49,000 5.37% $ 2,631 6/1/2015 ------------- ------------- 2015 Maturities $ 49,000 $ 49,000 Southbank - Riverwalk $ 20,000 $ -- 5.91% $ 1,182 6/1/2016 ------------- ------------- 2016 Maturities $ 20,000 $ -- Bakery Square $ 3,903 $ 3,967 8.00% $ 571 2/10/2017 Uptown Plaza Dallas $ 19,900 $ -- 5.64% $ 1,122 4/1/2017 ------------- ------------- 2017 Maturities $ 23,803 $ 3,967 ------------- ------------- Total Maturities (2) $ 161,099 $ 143,579 ============= =============
(1) Our revolving credit facility is a variable-rate debt instrument, and its outstanding balance fluctuates throughout the year based on our liquidity needs. Annual Debt Service on this debt instrument assumes that the amount outstanding and the interest rate as of March 31, 2007 remain constant through maturity. (2) Total maturities above are $815 thousand and $874 thousand less than total debt as reported in our consolidated financial statements as of March 31, 2007 and December 31, 2006, respectively, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions. Fixed vs. Variable Rate Debt: March 31, % of December 31, % of 2007 Total 2006 Total ------------ ------------ ------------ ------------ Variable rate $ 9,855 6.1% $ 11,929 8.3% Fixed rate 152,059 93.9% 132,524 91.7% ------------ ------------ ------------ ------------ $ 161,914 100.0% $ 144,453 100.0% 11 AmREIT Property & Tenant Information
Date Multi-Tenant Shopping Centers Major Tenants City State Acquired GLA ----------------------------------- --------------------- ------------- ----- ------------ ---------- Uptown Park - Phase I and II Ann Taylor, McCormick & Schmick's Houston TX 6/1/2005 169,110 Southbank - Riverwalk Hard Rock Cafe San Antonio TX 9/30/2005 46,673 MacArthur Park and Pad Sites Kroger Irving TX 12/04 &12/05 237,381 Plaza in the Park Kroger Houston TX 7/1/2004 144,062 Cinco Ranch Kroger Houston TX 7/1/2004 97,297 Bakery Square Walgreens & Bank of America Houston TX 7/21/2004 34,614 Uptown Plaza CVS/pharmacy Houston TX 12/10/2003 28,000 Woodlands Plaza FedEx/Kinkos & Rug Gallery The Woodlands TX 6/3/1998 20,018 Sugarland Plaza Mattress Giant Sugarland TX 7/1/1998 16,750 Terrace Shops Starbucks Houston TX 12/15/2003 16,395 584 N. Germantown Pkwy Auto Zone & (Baptist Memorial Medical Plaza) Baptist Memorial Memphis TN 7/23/2002 15,000 Courtyard on Post Oak Verizon Wireless Houston TX 6/15/2004 13,597 Grotto, Century Bank, Uptown Plaza - Dallas Pei Wei Dallas TX 3/30/2006 33,840 ---------- Multi-Tenant Shopping Centers Total 872,737 Annualized Base Rent as of March 31, Multi-Tenant Shopping Centers 2007 % Leased ----------------------------------- ---------- ---------- Uptown Park - Phase I and II $4,520,617 94% Southbank - Riverwalk 1,513,352 100% MacArthur Park and Pad Sites 3,886,451 96% Plaza in the Park 2,642,150 98% Cinco Ranch 1,228,515 99% Bakery Square 823,484 97% Uptown Plaza 1,236,646 100% Woodlands Plaza 373,317 100% Sugarland Plaza 349,612 100% Terrace Shops 440,628 93% 584 N. Germantown Pkwy (Baptist Memorial Medical Plaza) 194,026 75% Courtyard on Post Oak 477,361 100% Uptown Plaza - Dallas 1,619,902 100% ---------- Multi-Tenant Shopping Centers Total 19,306,061
Annualized Base Rent Single Tenant Date as of (Ground Leases) City State Acquired GLA March 31, 2007 % Leased ----------------------------------- -------------- ----- ---------- ---------- --------------- ---------- CVS Corporation Houston TX 1/10/2003 13,824 $ 327,167 100% Darden Restaurants Peachtree City GA 12/18/1998 6,867 79,366 100% Carlson Restaurants Hanover MD 9/16/2003 6,802 141,674 100% Citibank San Antonio TX 12/17/2004 4,439 155,000 100% Washington Mutual Houston TX 12/11/1996 3,685 98,155 100% Washington Mutual The Woodlands TX 9/23/1996 3,685 63,996 100% Woodlands Ring Road - Ground Leases The Woodlands TX 2/1/2007 66,349 596,093 100% ---------- --------------- Single Tenant (Ground Leases) Total 105,651 1,461,451
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Annualized Base Date Rent as of Single Tenant (Fee Simple) City State Acquired GLA March 31, 2007 % Leased -------------------------------- ----------- -------- ---------- ---------- --------------- ---------- Golden Corral Houston TX 7/23/2002 12,000 182,994 100% Golden Corral Humble TX 7/23/2002 12,000 181,688 100% Carlson Restaurants Houston TX 7/23/2005 8,500 200,000 100% #1483 IHOP Corporation Sugarland TX 9/22/1999 4,020 189,516 100% #1737 IHOP Corporation (5) Centerville UT 7/25/2002 4,020 163,380 100% #4462 IHOP Corporation (5) Memphis TN 8/23/2002 4,020 179,376 100% #5318 IHOP Corporation Topeka KS 9/30/1999 4,020 158,748 100% AFC, Inc. Atlanta GA 7/23/2002 2,583 119,279 100% Advance Auto (1)(2)(3)(4) Various Various Various 14,000 Note (1) Note (1) ---------- --------------- Single Tenant (Fee Simple) Total 65,163 1,374,981
Annualized Base Date Rent as of Single Tenant (Leasehold) City State Acquired GLA March 31, 2007 % Leased -------------------------------- ----------- -------- ---------- ---------- --------------- ---------- IHOP Corporation (5) Various Various Various 60,300 $ 1,558,056 100% ---------- --------------- ---------- Company Total GLA % Leased 1,103,851 $ 23,700,549 97%
--------------------------------------------------------------------------- (1) Under Development (GLA represents proposed leaseable square footage). (2) Held for Sale (3) Held in joint venture of which we are the managing 50% owner. (4) Advance Auto properties are located in MO and IL. Each of the properties has a proposed GLA of 7,000 square feet. (5) IHOP properties are located in NM, LA, OR, VA, TX, CA, TN, CO, VA, NY, OR, KS, UT and MO. Each of the properties has a GLA of 4,020 square feet. These properties are held by a consolidated subsidiary, 79.0% of which is owned by AmREIT,19.6% of which is owned by AmREIT Income & Growth Fund, one of our affiliated merchant development funds, and 1.4% of which is owned by unaffiliated third parties. We have assigned to management approximately 50% of our back-end participation interest in this entity as part of our long-term incentive compensation program. Accordingly, approximately half of the future net cash flows from such participation interest are owned by management. 13 Top Tenants by revenue concentration for the three months ended March 31, 2007: % of Total Operating Tenant Rental Income Revenue ---------------------------- ------------- ------------- Kroger $ 585 5.20% IHOP Corporation 562 5.00% Landry's 261 2.32% CVS/Pharmacy 242 2.15% Hard Rock Cafe International 178 1.58% Cosniac Restaurant Group 154 1.37% Champps Entertainment, Inc. 138 1.23% Starbucks 135 1.20% Linens `N Things 120 1.07% McCormick & Schmicks 117 1.04% ------------- ------------- Total $ 2,492 22.16% ============= ============= Leasing Activity for the quarter ended March 31, 2007:
Rent per sq. ft. --------------------------- # of leases Total sq. ft. New Rent Old Rent % Change ------------ ------------ ------------ ------------ ------------ New leases 6 9,519 32.16 N/A N/A Activity on Existing Leases: Lease renewals 2 3,773 24.14 20.32 18.77% Non-renewals 1 1,200 N/A 26.00 N/A Expired/Cancelled leases 2 2,827 N/A 26.51 N/A
14 Lease Expirations by Year: Number of Leases Square Percent Expiration Year Expiring Footage of Total --------------- ---------- ---------- ---------- 2007 10 24,874 2.37% 2008 23 69,186 6.60% 2009 33 93,252 8.90% 2010 32 129,476 12.36% 2011 51 191,675 18.29% 2012 9 29,942 2.86% 2013 8 34,308 3.27% 2014 6 26,237 2.50% 2015 2 7,251 0.69% 2016 11 53,168 5.07% 2017 3 40,661 3.88% 2019 1 4,020 0.38% 2020 4 75,991 7.25% 2021 3 89,676 8.56% 2022 1 4,020 0.38% 2023 1 63,373 6.05% 2024 3 21,864 2.09% 2025 7 45,597 4.35% 2026 4 16,080 1.53% 2027 3 12,060 1.15% 2056 1 15,120 1.47% --------------- ---------- ---------- ---------- Totals 216 1,047,831 100.00% 15