EX-99.2 3 am5157ex992.txt EXHIBIT 99.2 Exhibit 99.2 [LOGO OF AMREIT] -------------------------------------------------------------------------------- SUPPLEMENTAL FINANCIAL INFORMATION DECEMBER 31, 2005 (Unaudited) TABLE OF CONTENTS ----------------- Page # -------- Corporate Profile 1 Consolidated Balance Sheets 2 Consolidated Statements of Operations 3 - 4 Consolidated Statements of Operations - Segments 5 - 6 SUMMARY OF OPERATING RESULTS Funds From Operations 7 Dividends - All Classes of Common Shares 7 Rental Income 8 Real Estate Revenue Allocation 8 Discontinued Operations 9 Interest Expense 9 SUMMARY BALANCE SHEET INFORMATION Common Share Data 10 Capitalization 10 DEBT INFORMATION Outstanding Balances and Terms 11 - 12 Fixed vs. Variable Rate Debt 12 PROPERTY & Tenant Information Property Table 13 - 14 Tenant Diversification 15 Leasing Activity Report 15 Lease Expiration Schedule 16 This Supplemental Financial Information package contains historical information of the Company and is intended to supplement the Company's Annual Report on Form 10-K for the year ended December 31, 2005. 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 an established real estate company that, at its core, is a value creator which has delivered results to our investors for 21 years. Our mission is to build a real estate business that can realize consistent growth year over year regardless of market cycles. We have developed three distinct businesses that provide earnings power from multiple sources: a real estate development and operating business, an asset advisory business and our premium portfolio of Irreplaceable Corners(TM). As a real estate development and operating company, we provide value through offering an array of services to our tenants and properties, to our asset advisory group's portfolios and to third parties. As of December 31, 2005, the Company has over 1.5 million square feet of retail centers in various stages of development or in the pipeline for both our advisory group and for third parties. Our asset advisory group broadens the Company's avenues to capital and raises private equity for a series of merchant development funds. Through these funds, we combine the skills of our asset advisory team with those of our real estate development team to actively manage a blend of value-added acquisition, redevelopment and development projects, which generate both transactional fees and recurring management fees. AmREIT's institutional-grade portfolio of Irreplaceable Corners, our most recognized business, provides a foundation to our FFO growth through a steady stream of rental income. We focus on the acquisition and development of premier retail properties in high-traffic, densely populated high-income areas to hold for long-term value. These properties are primarily high-end grocery anchored and lifestyle shopping centers leased to well-known national and regional tenants. Since AmREIT listed its class A shares on the AMEX in July 2002, our total assets have grown from a book value of $32 million to $315 million and equity within our asset advisory group has grown from $15 million to $61 million. 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:
DECEMBER 31, DECEMBER 31, 2005 2004 ------------ ------------ ASSETS Real estate investments at cost Land $ 112,784 $ 68,138 Building 127,094 88,211 Tenant improvements 7,366 4,243 ------------ ------------ 247,244 160,592 Less accumulated depreciation and amortization (5,493) (3,561) ------------ ------------ 241,301 157,031 Real estate held for sale, net 3,569 6,326 Net investment in direct financing leases held for investment 19,212 19,219 Intangible lease cost, net 17,761 10,628 Investment in retail partnerships and other affiliates 2,311 1,979 ------------ ------------ Net real estate investments 284,154 195,183 Cash and cash equivalents 5,915 2,960 Tenant receivables, net 3,132 1,338 Accounts receivable, net 1,807 37 Accounts receivable - related party 4,158 910 Notes receivable - related party 11,232 - Deferred costs 1,487 1,040 Other assets 3,086 1,683 ------------ ------------ TOTAL ASSETS $ 314,971 $ 203,151 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable $ 114,687 $ 105,964 Accounts payable and other liabilities 8,232 4,830 Below market leases, net 2,940 2,504 Security deposits 651 368 ------------ ------------ TOTAL LIABILITIES 126,510 113,666 ------------ ------------ Minority Interest 1,176 1,115 Shareholders' Equity Preferred Shares, $.01 par value, 10,000,000 shares authorized, note issued - - Class A Common shares, $.01 par value, 50,000,000 shares authorized, 6,479,278 and 3,462,767 shares issued, respectively 65 35 Class B Common shares, $.01 par value, 3,000,000 shares authorized, 2,148,649 and 2,246,283 shares issued, respectively 22 22 Class C Common shares, $.01 par value, 4,400,000 shares authorized, 4,119,923 and 4,079,174 shares issued, respectively 41 41 Class D Common shares, $.01 par value, 17,000,000 shares authorized, 11,035,482 and 2,090,765 shares issued, respectively 110 21 Capital in excess of par value 205,859 104,114 Accumulated distributions in excess of earnings (16,736) (15,038) Deferred compensation (1,528) (770) Cost of treasury shares, 77,741 and 9,116 Class A shares, respectively (548) (55) ------------ ------------ TOTAL SHAREHOLDERS' EQUITY 187,285 88,370 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 314,971 $ 203,151 ============ ============
2 CONSOLIDATED STATEMENTS OF OPERATIONS:
THREE MONTHS THREE MONTHS ENDED ENDED DECEMBER 31, DECEMBER 31, 2005 2004 ------------ ------------ Revenue: Rental income from operating leases $ 6,816 $ 3,104 Earned income from direct financing leases 508 507 Real estate fee income 133 353 Real estate fee income - related party 1,219 135 Construction revenues 1,636 - Construction revenues - related party 1,361 - Securities commission income - related party 644 688 Asset management fee income - related party 128 116 Interest and other income 191 35 ------------ ------------ Total revenues 12,636 4,938 ------------ ------------ Expenses: General and administrative 2,553 1,193 Property expense 2,101 630 Construction costs 2,784 - Legal and professional 431 686 Securities commissions 476 530 Depreciation and amortization 1,879 763 ------------ ------------ Total expenses 10,224 3,802 ------------ ------------ Operating income 2,412 1,136 Other income (expense): Income from merchant development funds and affiliates (27) 881 Federal income tax benefit (expense) for TRS 111 (225) Interest expense (1,691) (1,164) Minority interest in income of consolidated joint ventures (20) (54) ------------ ------------ Income before discontinued operations 785 574 Income (loss) from discontinued operations 1,863 (906) Gain on sales of real estate acquired for resale 2,351 68 ------------ ------------ Income (loss) from discontinued operations 4,214 (838) ------------ ------------ Net income (loss) 4,999 (264) Distributions paid to class B,C, and D shareholders (2,897) (1,366) ------------ ------------ Net income (loss) available to class A shareholders $ 2,102 $ (1,630) ============ ============ Net (loss) income per class A common share - basic and diluted Loss before discontinued operations $ (0.33) $ (0.23) Income (loss) from discontinued operations 0.65 (0.24) ------------ ------------ Net income (loss) $ 0.32 $ (0.47) ============ ============ Weighted average class A common shares used to compute net income (loss) per share, basic and diluted 6,446 3,431 ============ ============
3 CONSOLIDATED STATEMENTS OF OPERATIONS, CONT.:
TWELVE TWELVE TWELVE MONTHS MONTHS MONTHS ENDED ENDED ENDED DECEMBER DECEMBER DECEMBER 31, 2005 31, 2004 31, 2004 ------------ ------------ ------------ Revenue: Rental income from operating leases $ 20,484 $ 8,200 $ 2,609 Earned income from direct financing leases 2,030 2,029 2,016 Real estate fee income 485 409 576 Real estate fee income - related party 4,588 1,443 455 Construction revenues 2,302 - - Construction revenues - related party 2,434 - - Securities commission income - related party 1,163 2,742 1,497 Asset management fee income - related party 495 361 240 Interest and other income 705 82 9 ------------ ------------ ------------ Total revenues 34,686 15,266 7,402 ------------ ------------ ------------ Expenses: General and administrative 6,356 4,661 3,117 Property expense 4,860 1,418 388 Construction costs 4,283 - - Legal and professional 1,859 1,646 871 Securities commissions 864 2,081 1,130 Depreciation and amortization 6,046 1,817 522 Deferred merger costs - 1,682 915 ------------ ------------ ------------ Total expenses 24,268 13,305 6,943 ------------ ------------ ------------ Operating income 10,418 1,961 459 Other income (expense): Income from merchant development funds and other affiliates 161 1,121 312 Federal income tax (expense) benefit for TRS (379) (16) 254 Interest expense (6,412) (3,290) (2,080) Minority interest in income of consolidated joint ventures (241) (186) (158) ------------ ------------ ------------ Income (loss) before discontinued operations 3,547 (410) (1,213) Income (loss) from discontinued operations 3,356 (829) 2,425 Gain on sales of real estate acquired for resale 3,223 1,827 787 ------------ ------------ ------------ Income from discontinued operations 6,579 998 3,212 ------------ ------------ ------------ Net income 10,126 588 1,999 Distributions paid to class B,C, and D shareholders (9,245) (4,454) (1,943) ------------ ------------ ------------ Net income (loss) available to class A shareholders $ 881 $ (3,866) $ 56 ============ ============ ============ Net income (loss) per class A common share - basic and diluted Loss before discontinued operations $ (1.09) $ (1.50) $ (1.13) Income from discontinued operations 1.26 0.31 1.15 ------------ ------------ ------------ Net loss $ 0.17 $ (1.19) $ 0.02 ============ ============ ============ Weighted average class A common shares used to compute net income (loss) per share, basic and diluted 5,205 3,251 2,792 ============ ============ ============
4 SEGMENTED STATEMENTS OF OPERATIONS:
ASSET ADVISORY ---------------------------- THREE MONTHS ENDED REAL ESTATE RETAIL DECEMBER 31, 2005 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL ----------------------------------- ------------ ------------ ------------ ------------ ------------ Rental income $ 7,324 $ - $ - $ - $ 7,324 Securities commissions - - 644 - 644 Construction revenues - 2,997 - - 2,997 Real estate fee income - 1,352 - 1,352 Other income 159 32 - 128 319 ------------ ------------ ------------ ------------ ------------ Total revenue 7,483 4,381 644 128 12,636 Securities commission expense - - 476 - 476 Professional fees 290 46 27 - 363 Depreciation and amortization 1,879 - - - 1,879 Property expense 2,051 50 - - 2,101 Construction expense - 2,784 - - 2,784 Real estate commissions - 68 - - 68 General and administrative 1,137 901 494 21 2,553 ------------ ------------ ------------ ------------ ------------ Total expenses 5,357 3,849 997 21 10,224 Interest expense (1,514) (172) (5) - (1,691) Other (expense) income (54) 174 (77) 21 64 Income from discontinued operations 2,738 1,476 - - 4,214 ------------ ------------ ------------ ------------ ------------ Net income $ 3,295 $ 2,011 $ (435) $ 128 $ 4,999
ASSET ADVISORY ---------------------------- THREE MONTHS ENDED REAL ESTATE RETAIL DECEMBER 31, 2004 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL ----------------------------------- ------------ ------------ ------------ ------------ ------------ Rental income $ 3,611 $ - $ - $ - $ 3,611 Securities commissions - - 688 - 688 Real estate fee income - 488 - - 488 Other income - 35 - 116 151 ------------ ------------ ------------ ------------ ------------ Total revenue 3,611 523 688 116 4,938 Securities commission expense - - 530 - 530 Professional fees 302 76 - - 378 Depreciation and amortization 763 - - - 763 Property expense 627 3 - - 630 Real estate commissions - 308 - - 308 General and administrative 158 636 364 35 1,193 ------------ ------------ ------------ ------------ ------------ Total expenses 1,850 1,023 894 35 3,802 Interest expense (1,108) (56) - - (1,164) Other (expense) income (51) 133 (54) 574 602 Income from discontinued operations (968) 130 - - (838) ------------ ------------ ------------ ------------ ------------ Net (loss) income $ (366) $ (293) $ (260) $ 655 $ (264)
5
ASSET ADVISORY ---------------------------- TWELVE MONTHS ENDED REAL ESTATE RETAIL DECEMBER 31, 2005 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL ----------------------------------- ------------ ------------ ------------ ------------ ------------ Rental income $ 22,514 $ - $ - $ - $ 22,514 Securities commissions - - 1,163 - 1,163 Real estate fee income - 5,073 - - 5,073 Construction revenues - 4,736 - - 4,736 Other income 465 240 - 495 1,200 ------------ ------------ ------------ ------------ ------------ Total revenue 22,979 10,049 1,163 495 34,686 Securities commission expense - - 864 - 864 Depreciation and amortization 6,046 - - - 6,046 Property expense 4,803 57 - - 4,860 Construction costs - 4,283 - - 4,283 Professional fees 1,214 266 112 1 1,593 Real estate commissions - 266 - - 266 General and administrative 1,657 3,595 844 260 6,356 ------------ ------------ ------------ ------------ ------------ Total expenses 13,720 8,467 1,820 261 24,268 Interest expense (5,816) (572) (24) - (6,412) Other (expense) income (196) (259) (60) 56 (459) Income from discontinued operations 4,584 1,995 - - 6,579 ------------ ------------ ------------ ------------ ------------ Net income (loss) $ 7,831 $ 2,746 $ (741) $ 290 $ 10,126
ASSET ADVISORY ---------------------------- TWELVE MONTHS ENDED REAL ESTATE RETAIL DECEMBER 31, 2004 PORTFOLIO OPERATIONS SECURITIES PARTNERSHIPS TOTAL ----------------------------------- ------------ ------------ ------------ ------------ ------------ Rental income $ 10,229 $ - $ - $ - $ 10,229 Securities commissions - - 2,742 - 2,742 Real estate fee income - 1,852 - - 1,852 Other income 46 36 - 361 443 ------------ ------------ ------------ ------------ ------------ Total revenue 10,275 1,888 2,742 361 15,266 Deferred merger expense 1,682 - - - 1,682 Securities commission expense - - 2,081 - 2,081 Depreciation and amortization 1,817 - - - 1,817 Property expense 1,413 5 - - 1,418 Professional expense 917 105 80 - 1,102 Real estate commissions - 544 - - 544 General and administrative 929 1,951 1,680 101 4,661 ------------ ------------ ------------ ------------ ------------ Total Expenses 6,758 2,605 3,841 101 13,305 Interest expense (3,233) (57) - - (3,290) Other (expense) income (187) 594 (79) 591 919 Income from discontinued operations (203) 1,201 - - 998 ------------ ------------ ------------ ------------ ------------ Net income (loss) $ (106) $ 1,021 $ (1,178) $ 851 $ 588
6 AMREIT SUMMARY OF OPERATING RESULTS
Three Months Ended Twelve Months Ended December 31, December 31, ----------------------- ----------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- FUNDS FROM OPERATIONS: Income (loss) before discontinued operations $ 785 $ 574 $ 3,547 $ (410) Income from discontinued operations 4,214 (838) 6,579 998 Depreciation of real estate assets - operations 2,210 648 5,952 1,674 Depreciation of real estate assets - discontinued operations 177 60 111 297 Adjustments for non consolidated affiliates 35 9 100 29 Gain on sale of real estate acquired for investment (2,805) (52) (3,400) (137) Class B, C, and D common share distributions (2,897) (1,366) (9,245) (4,454) ---------- ---------- ---------- ---------- Total Funds from Operations available to Class A Shareholders $ 1,791 $ (965) $ 3,644 $ (2,003) ========== ========== ========== ========== Weighted average class A shares outstanding 6,446 3,431 5,205 3,251 Funds from operations per class A share $ 0.27 $ (0.28) $ 0.70 $ (0.62) DIVIDENDS: Class A Common share dividends per share $ 0.12 $ 0.12 $ 0.50 $ 0.48 Class B Common share dividends per share (1) $ 0.19 $ 0.19 $ 0.74 $ 0.74 Class C Common share dividends per share (2) $ 0.18 $ 0.18 $ 0.70 $ 0.70 Class D Common share dividends per share (3) $ 0.16 $ 0.16 $ 0.65 $ 0.65
(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 are 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 are callable by the Company beginning in 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 are callable by the Company beginning in 2005, based on the same conversion formula, prorated for the time the shares were outstanding (107.7% of invested capital). 7
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------- ----------------------- RENTAL AND EARNED INCOME: 2005 2004 2005 2004 ------------------------------------------------------------ ---------- ---------- ---------- ---------- Base minimum rent $ 4,425 $ 2,348 $ 14,825 $ 6,638 Earned Income from direct financing leases 508 507 2,030 2,029 Straight line rent 93 43 319 139 Over/Under market rent 31 24 218 44 Percentage rent 71 - 154 65 Tenant reimbursements 2,196 689 4,968 1,314 ---------- ---------- ---------- ---------- Total Rental and Earned Income $ 7,324 $ 3,611 $ 22,514 $ 10,229 ========== ========== ========== ==========
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------- ----------------------- REAL ESTATE OPERATING REVENUE: 2005 2004 2005 2004 ------------------------------------------------------------ ---------- ---------- ---------- ---------- Development and construction management fees Merchant development funds and affiliates $ 183 $ 38 $ 1,243 $ 998 Unrelated third parties 40 - 70 8 Leasing and brokerage commissions Merchant development funds and affiliates 919 171 3,145 378 Unrelated third parties 93 353 415 401 Property management fees Merchant development funds and affiliates 117 (74) 200 67 Unrelated third parties - - - - ---------- ---------- ---------- ---------- Total Real Estate Operating Revenue $ 1,352 $ 488 $ 5,073 $ 1,852 ========== ========== ========== ========== Percent attributable to retail partnerships and affiliates 90% 28% 90% 78% Percent attributable to unrelated third parties 10% 72% 10% 22%
8
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------- ----------------------- DISCONTINUED OPERATIONS: 2005 2004 2005 2004 ------------------------------------------------------------ ---------- ---------- ---------- ---------- Rental revenue and earned income from DFL $ 398 $ 474 $ 1,805 $ 2,095 Gain on sale of real estate held for investment 2,805 52 3,400 137 Interest and other income - - 146 936 Gain on sale of real estate held for resale - - 3,223 1,827 ---------- ---------- ---------- ---------- Total revenues 3,203 526 8,574 4,995 Property expense (192) (109) (382) (355) General and administrative (266) (4) (272) (76) Federal income tax expense (237) 113 (340) (521) Legal and professional (4) - (2) (2) Depreciation and amortization (177) (60) (111) (297) Minority interest (328) (16) (597) (182) Interest expense (27) (56) (182) (161) Debt prepayment penalty (109) (109) - Impairment charge - (1,300) - (2,403) ---------- ---------- ---------- ---------- Total expenses (1,340) (1,432) (1,995) (3,997) Income (loss) from discontinued operations $ 1,863 $ (906) $ 6,579 $ 998 ========== ========== ========== ========== Basic and diluted income (loss) from discontinued operations per class A common share $ 0.29 $ (0.26) $ 1.26 $ 0.31 ========== ========== ========== ==========
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ----------------------- ----------------------- INTEREST EXPENSE: 2005 2004 2005 2004 ------------------------------------------------------------ ---------- ---------- ---------- ---------- Interest paid - floating rate $ 8 $ 237 $ 626 $ 716 Interest paid - fixed rate 1,692 906 5,792 2,457 Loan cost amortization 50 45 221 165 Out-of-market debt amortization (59) (24) (227) (48) ---------- ---------- ---------- ---------- Total Interest Expense $ 1,691 $ 1,164 $ 6,412 $ 3,290 ---------- ---------- ---------- ----------
9 AMREIT SUMMARY BALANCE SHEET INFORMATION DECEMBER 31, DECEMBER 31, 2005 2004 ------------ ------------ CLASS A COMMON SHARE DATA: Closing market price $ 6.90 $ 8.05 Dividend yield 7.24% 5.96% 90-Day average trading volume 25,095 2,659 TOTAL CAPITALIZATION: Debt $ 114,687 $ 105,964 Class A common shares at market 44,171 27,802 Class B common shares as converted 14,826 18,083 Class C common shares as converted 45,319 44,871 Class D common shares as converted 118,852 22,518 ------------ ------------ Total Capitalization $ 337,855 $ 219,238 ============ ============ Debt to Total Capitalization 33.9% 48.3% 10 AMREIT DEBT INFORMATION
AMOUNT AMOUNT OUTSTANDING OUTSTANDING INTEREST ANNUAL DEBT MATURITY DESCRIPTION 12-31-2005 12-31-2004 RATE SERVICE DATE ------------------------------ ------------ ------------ ------------ ------------ ------------ Credit Facility (1) $ - $ 38,014 5.61% $ - 11/4/2005 ------------ ------------ 2005 Maturities $ - $ 38,014 MacArthur Park $ 13,410 $ 13,410 6.17% $ 827 12/1/2008 ------------ ------------ 2008 Maturities $ 13,410 $ 13,410 Merger Notes (2) $ 760 $ 760 5.47% $ 43 7/23/2010 ------------ ------------ 2010 Maturities $ 760 $ 760 Sugarland IHOP $ 1,196 $ 1,233 8.25% $ 138 3/1/2011 Sugar Land Plaza 2,313 2,336 7.60% 203 11/1/2011 ------------ ------------ 2011 Maturities $ 3,509 $ 3,569 Albuquerque IHOP $ 692 $ 712 7.82% $ 75 4/24/2012 Baton Rouge IHOP 1,143 1,176 7.82% 124 4/24/2012 Beaverton IHOP 811 834 7.82% 88 4/16/2012 Charlottesville IHOP 576 593 7.82% 62 4/24/2012 El Paso #1934 IHOP 695 715 7.82% 75 4/16/2012 Rochester IHOP 870 894 7.82% 94 4/16/2012 Shawnee IHOP 686 706 7.82% 74 4/18/2012 5115 Buffalo Spdwy 2,761 2,789 7.58% 241 5/11/2012 Salem IHOP 567 585 7.82% 61 5/17/2012 Springfield IHOP 944 971 7.82% 102 6/21/2012 Roanoke IHOP 654 673 7.89% 71 7/26/2012 Centerville IHOP 1,145 1,176 7.89% 124 7/26/2012 Memphis #4462 IHOP 1,237 1,271 7.89% 134 7/19/2012 Alexandria IHOP 660 679 7.89% 71 7/19/2012 El Paso #1938 IHOP 826 849 7.89% 89 8/23/2012 La Verne IHOP 688 707 7.89% 74 8/23/2012 Memphis #4482 IHOP 717 737 7.89% 77 8/23/2012 Parker IHOP 772 793 7.89% 83 8/23/2012 ------------ ------------ 2012 Maturities $ 16,444 $ 16,861
11
AMOUNT AMOUNT OUTSTANDING OUTSTANDING INTEREST ANNUAL DEBT MATURITY DESCRIPTION 12-31-2005 12-31-2004 RATE SERVICE DATE ------------------------------ ------------ ------------ ------------ ------------ ------------ Cinco Ranch $ 8,430 $ 8,555 5.60% $ 601 7/10/2013 Plaza in the Park 17,817 18,081 5.60% 1,270 7/10/2013 ------------ ------------ 2013 Maturities $ 26,247 $ 26,635 Uptown Park $ 49,000 $ - 5.37% $ 2,631 6/1/2015 ------------ ------------ 2015 Maturities $ 49,000 $ - Bakery Square $ 4,211 $ 4,435 8.00% $ 571 2/10/2017 ------------ ------------ 2017 Maturities $ 4,211 $ 4,435 ------------ ------------ Total Maturities (3) $ 113,581 $ 104,631 ============ ============
---------- (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 ($0 as of December 31, 2005) remains constant through maturity. (2) The Merger Notes were paid off subsequent to December 31, 2005. (3) Total maturities above are $1.1 million and $1.2 million less than total debt as reported in our consolidated financial statements as of December 31, 2005 and 2004, respectively, due to the premium recorded on above-market debt assumed in conjunction with certain of our property acquisitions. FIXED VS. VARIABLE DECEMBER 31, % OF DECEMBER 31, % OF RATE DEBT: 2005 TOTAL 2004 TOTAL ------------ -------- ------------ -------- Variable rate $ - -% $ 38,014 35.9% Fixed rate 114,687 100.0% 67,950 64.1% ------------ ------------ $ 114,687 $ 105,964 ------------ ------------ 12 AMREIT PROPERTY & Tenant Information
ANNUALIZED BASE RENT AS MULTI-TENANT DATE OF DECEMBER % SHOPPING CENTERS MAJOR TENANTS CITY STATE ACQUIRED GLA 31, 2005 LEASED --------------------- ----------------------- ------------- ----- ------------- -------- ------------ ------ Uptown Park Ann Taylor, McCormick & Houston TX 06/01/05 169,110 $ 4,067,373 85% Schmick's Southbank - Riverwalk Hard Rock Cafe San Antonio TX 09/30/05 46,673 $ 1,351,495 96% MacArthur Park Kroger Dallas TX 12/04 & 12/05 237,381 3,982,955 98% Plaza in the Park Kroger Houston TX 07/01/04 139,971 2,529,012 97% Cinco Ranch Kroger Houston TX 07/01/04 97,297 1,245,833 100% Bakery Square Walgreens & Houston TX 07/21/04 34,614 849,460 100% Bank of America Uptown Plaza CVS/pharmacy Houston TX 12/10/03 28,000 1,236,646 100% Woodlands Plaza FedEx/Kinkos & The Woodlands TX 06/03/98 20,018 373,317 100% Rug Gallery Sugarland Plaza Mattress Giant Sugarland TX 07/01/98 16,750 349,545 100% Terrace Shops Starbucks Houston TX 12/15/03 16,395 385,342 100% Baptist Memorial Baptist Memorial & Auto Memphis TN 07/23/02 15,000 222,643 100% Medical Plaza Zone Courtyard at Post Oak Verizon Wireless Houston TX 06/15/04 13,597 477,361 100% San Felipe and Winrock (1) (2) (1) (2) Houston TX 11/17/03 8,400 (1) (1) -------- ------------ ------ Multi-Tenant Shopping Centers Total 843,211 17,070,982 97%
ANNUALIZED BASE RENT AS DATE OF DECEMBER % SINGLE TENANT (GROUND LEASES) CITY STATE ACQUIRED GLA 31, 2005 LEASED ----------------------------- -------------- ----- ------------- -------- ------------ ------ CVS Corporation Houston TX 01/10/03 13,824 $ 327,167 100% Darden Restaurants Peachtree City GA 12/18/98 6,867 79,366 100% Carlson Restaurants Hanover MD 09/16/03 6,802 150,421 100% Citibank (1) San Antonio TX 12/17/04 4,439 (6) 100% Comerica Bank (1) Houston TX 04/30/04 4,277 (6) 100% Washington Mutual Houston TX 12/11/96 3,685 98,160 100% Washington Mutual The Woodlands TX 09/23/96 3,685 61,060 100% -------- ------------ ------ Single Tenant (Ground Leases) Total 43,579 716,174 100%
13
ANNUALIZED BASE RENT AS DATE OF DECEMBER % SINGLE TENANT (FEE SIMPLE) CITY STATE ACQUIRED GLA 31, 2005 LEASED ----------------------------- -------------- ------- ------------- -------- ------------ ------ Energy Wellness Sugarland TX 07/23/02 15,000 187,857 100% Golden Corral Houston TX 07/23/02 12,000 182,994 100% Golden Corral Humble TX 07/23/02 12,000 181,688 100% Carlson Restaurants Houston TX 07/23/02 8,500 200,000 100% IHOP Corporation Sugarland TX 09/22/99 4,020 188,664 100% IHOP Corporation(5) Centerville UT 07/25/02 4,020 161,707 100% IHOP Corporation (5) Memphis TN 08/23/02 4,020 177,780 100% IHOP Corporation Topeka KS 09/30/99 4,020 157,892 100% AFC, Inc. Atlanta GA 07/23/02 2,583 119,279 100% Advance Auto (1)(2)(3)(4) Various Various Various 21,000 107,414 (1) -------- ------------ ------ Single Tenant (Fee Simple) Total 87,163 1,665,275 100%
ANNUALIZED BASE RENT AS DATE OF DECEMBER % SINGLE TENANT (LEASEHOLD) CITY STATE ACQUIRED GLA 31, 2005 LEASED ----------------------------- -------------- ------- ------------- --------- ------------ ------ IHOP Corporation (5) Various Various Various 60,300 $ 1,562,922 100% --------- ------------ ------ Company Total GLA/% Leased 1,034,253 $ 21,015,353 96%
---------- (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 Corporation, one of our affiliated retail partnerships, and 1.4% of which is owned by unaffiliated third parties. (6) These properties are 100% leased; however, rent does not commence until first quarter of 2006. 14 Top 10 Tenants by revenue concentration for the twelve months ended December 31, 2005: % OF TOTAL RENTAL OPERATING TENANT INCOME REVENUE ----------------------------- ------------ ------------ Kroger $ 2,899 8.36% IHOP 2,249 6.48% CVS/pharmacy 1,060 3.06% Linens 'N Things 716 2.06% Barnes & Noble 466 1.34% Landry's 445 1.28% Golden Corral Corporation 432 1.25% Hallmark 428 1.23% Carlson Restaurants Worldwide 350 1.01% Champps Americana 333 0.96% ------------ ------------ Total $ 9,378 27.04% LEASING ACTIVITY FOR THE QUARTER ENDED DECEMBER 31, 2005:
RENT PER SQ. FT. # OF TOTAL ----------------------- LEASES SQ. FT. NEW RENT OLD RENT % CHANGE ---------- ---------- ---------- ---------- ---------- New leases 2 4,126 28.97 N/A N/A Expired/ cancelled leases: Lease renewals 1 1,720 18.50 18.00 2.78% Non-renewals 1 4,512 N/A 22.00 N/A Cancelled leases 2 4,418 N/A 27.72 N/A
15 LEASE EXPIRATIONS BY YEAR: NUMBER OF LEASES SQUARE PERCENT EXPIRATION YEAR EXPIRING FOOTAGE OF TOTAL -------------------- ------------ ------------ ------------ 2006 ............... 13 30,747 3.26% 2007 ............... 18 49,769 5.27% 2008 ............... 23 67,199 7.12% 2009 ............... 33 94,467 10.01% 2010 ............... 34 129,419 13.71% 2011 ............... 38 166,337 17.62% 2012 ............... 6 21,851 2.31% 2013 ............... 6 25,373 2.69% 2014 ............... 8 28,504 3.02% 2015 ............... - - - 2016 ............... 1 5,969 0.63% 2017 ............... - - - 2018 ............... - - - 2019 ............... 1 4,020 0.43% 2020 ............... 4 75,991 8.05% 2021 ............... 3 79,806 8.45% 2022 ............... 1 4,020 0.43% 2023 ............... 1 63,373 6.71% 2024 ............... 3 21,864 2.32% 2025 ............... 6 32,100 3.40% 2026 ............... 4 16,080 1.70% 2027 ............... 3 12,060 1.28% 2056 ............... 1 15,120 1.60% ------------ ------------ ------------ Totals 207 944,069 100.00% 16