EX-99.3 21 am5702ex993.htm EXHIBIT 99.3

Exhibit 99.3

Message

 

 

Supplemental Financial Information

March 31, 2006

(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

 

 

 

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 quarter ended March 31, 2006.  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™.

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 March 31, 2006, the Company has over 1.0 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.

As of March 31, 2006, our total assets have a book value of $327 million and our asset advisory group manages an additional $140 million in total assets. 

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,
2006

 

December 31,
2005

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Real estate investments at cost:

 

 

 

 

 

 

 

Land

 

$

122,759

 

$

112,784

 

Buildings

 

 

140,475

 

 

127,094

 

Tenant improvements

 

 

8,648

 

 

7,366

 

 

 

 

 

 

 

 

271,882

 

 

247,244

 

Less accumulated depreciation and amortization

 

 

(7,150

)

 

(5,943

)

 

 

 

 

 

 

 

264,732

 

 

241,301

 

Real estate held for sale, net

 

 

—  

 

 

3,569

 

Net investment in direct financing leases held for investment

 

 

19,210

 

 

19,212

 

Intangible lease cost, net

 

 

18,849

 

 

17,761

 

Investment in merchant development funds and other affiliates

 

 

2,308

 

 

2,311

 

 

 

 

 

Net real estate investments

 

 

305,099

 

 

284,154

 

Cash and cash equivalents

 

 

2,220

 

 

5,915

 

Tenant receivables

 

 

2,890

 

 

3,132

 

Accounts receivable, net

 

 

1,748

 

 

1,807

 

Accounts receivable - related party

 

 

3,346

 

 

4,158

 

Notes receivable - related party

 

 

8,157

 

 

11,232

 

Deferred costs

 

 

1,541

 

 

1,487

 

Other assets

 

 

3,368

 

 

3,086

 

 

 

 

 

TOTAL ASSETS

 

$

328,369

 

$

314,971

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Notes payable

 

$

133,271

 

$

114,687

 

Accounts payable and other liabilities

 

 

4,315

 

 

8,232

 

Below market leases, net

 

 

4,435

 

 

2,940

 

Security deposits

 

 

707

 

 

651

 

 

 

 

 

TOTAL LIABILITIES

 

 

142,728

 

 

126,510

 

 

 

 

 

Minority interest

 

 

1,188

 

 

1,176

 

Shareholders’ equity:

 

 

 

 

 

 

 

Preferred shares, $.01 par value, 10,000,000 shares authorized, none issued

 

 

—  

 

 

—  

 

Class A Common shares, $.01 par value, 50,000,000 shares authorized, 6,514,013 and 6,479,278 shares issued, respectively

 

 

65

 

 

65

 

Class B Common shares, $.01 par value, 3,000,000 shares authorized, 2,113,914 and 2,148,649 shares issued, respectively

 

 

21

 

 

22

 

Class C Common shares, $.01 par value, 4,400,000 shares authorized, 4,145,294 and 4,119,923 shares issued, respectively

 

 

41

 

 

41

 

Class D Common shares, $.01 par value, 17,000,000 shares authorized, 11,063,390 and 11,035,482 shares issued, respectively

 

 

111

 

 

110

 

Capital in excess of par value

 

 

206,291

 

 

205,859

 

Accumulated distributions in excess of earnings

 

 

(19,338

)

 

(16,736

)

Deferred compensation

 

 

(1,927

)

 

(1,528

)

Cost of treasury shares, 113,672 and 77,741 Class A shares, respectively

 

 

(811

)

 

(548

)

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

 

184,453

 

 

187,285

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

328,369

 

$

314,971

 

 

 

 

 

2


Consolidated Statements of Operations:

 

 

Three Months Ended
March 31, 2006

 

Three Months Ended
March 31, 2005

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

Rental income from operating leases

 

$

5,834

 

$

3,962

 

Earned income from direct financing leases

 

 

507

 

 

507

 

Real estate fee income

 

 

751

 

 

236

 

Real estate fee income - related party

 

 

767

 

 

758

 

Construction revenues

 

 

621

 

 

—  

 

Construction revenues - related party

 

 

1,173

 

 

—  

 

Securities commission income - related party

 

 

1,391

 

 

—  

 

Asset management fee income - related party

 

 

158

 

 

117

 

Interest and other income

 

 

386

 

 

48

 

 

 

 

 

Total revenues

 

 

11,588

 

 

5,628

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

General and administrative

 

 

2,133

 

 

1,158

 

Property expense

 

 

1,022

 

 

695

 

Construction costs

 

 

1,675

 

 

—  

 

Legal and professional

 

 

842

 

 

584

 

Securities commissions

 

 

1,017

 

 

—  

 

Depreciation and amortization

 

 

2,192

 

 

1,055

 

 

 

 

 

Total expenses

 

 

8,881

 

 

3,492

 

 

 

 

 

Operating income

 

 

2,707

 

 

2,136

 

Other income (expense):

 

 

 

 

 

 

 

Income from merchant development funds and other affiliates

 

 

98

 

 

31

 

Federal income tax expense for taxable REIT subsidiary

 

 

81

 

 

(20

)

Interest expense

 

 

(1,743

)

 

(1,495

)

Minority interest in income of consolidated joint ventures

 

 

(39

)

 

(1

)

 

 

 

 

Income before discontinued operations

 

 

1,104

 

 

651

 

(Loss) income from discontinued operations

 

 

(16

)

 

707

 

Gain on sales of real estate acquired for resale

 

 

5

 

 

—  

 

 

 

 

 

(Loss) income from discontinued operations

 

 

(11

)

 

707

 

 

 

 

 

Net income

 

 

1,093

 

 

1,358

 

Distributions paid to class B, C and D shareholders

 

 

(2,906

)

 

(1,632

)

 

 

 

 

Net loss available to class A shareholders

 

$

(1,813

)

$

(274

)

 

 

 

 

Net (loss) income per class A common share - basic and diluted

 

 

 

 

 

 

 

Loss before discontinued operations

 

$

(0.28

)

$

(0.28

)

Income from discontinued operations

 

 

(0.00

)

 

0.20

 

 

 

 

 

Net loss

 

$

(0.28

)

$

(0.08

)

 

 

 

 

Weighted average class A common shares used to compute net (loss) income per share, basic and diluted

 

 

6,425

 

 

3,471

 

 

 

 

 

3


Segmented Statements of Operations:

 

 

 

 

 

 

 

 

Asset Advisory Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended
March 31, 2006

 

Portfolio

 

Real Estate
Development &
Operations
Company

 

Securities
Operations

 

Merchant
Development
Funds

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

Rental income

 

$

6,341

 

$

—  

 

$

—  

 

$

—  

 

$

—  

 

$

6,341

 

Securities commission income

 

 

—  

 

 

—  

 

 

1,391

 

 

—  

 

 

—  

 

 

1,391

 

Real estate fee income

 

 

—  

 

 

1,518

 

 

—  

 

 

—  

 

 

—  

 

 

1,518

 

Construction fee income

 

 

—  

 

 

1,794

 

 

—  

 

 

—  

 

 

—  

 

 

1,794

 

Other income

 

 

361

 

 

25

 

 

—  

 

 

158

 

 

—  

 

 

544

 

 

 

 

 

 

 

 

 

Total revenue

 

 

6,702

 

 

3,337

 

 

1,391

 

 

158

 

 

—  

 

 

11,588

 

Securities commission expense

 

 

—  

 

 

—  

 

 

1,017

 

 

—  

 

 

—  

 

 

1,017

 

Professional fees

 

 

246

 

 

586

 

 

10

 

 

—  

 

 

—  

 

 

842

 

Depreciation and amortization

 

 

2,192

 

 

—  

 

 

—  

 

 

—  

 

 

—  

 

 

2,192

 

Property expense

 

 

1,003

 

 

19

 

 

—  

 

 

—  

 

 

—  

 

 

1,022

 

Construction expense

 

 

—  

 

 

1,675

 

 

—  

 

 

—  

 

 

—  

 

 

1,675

 

General and administrative expense

 

 

387

 

 

1,000

 

 

729

 

 

17

 

 

—  

 

 

2,133

 

 

 

 

 

 

 

 

 

Total expenses

 

 

3,828

 

 

3,280

 

 

1,756

 

 

17

 

 

—  

 

 

8,881

 

Interest expense

 

 

(1,579

)

 

(161

)

 

(3

)

 

—  

 

 

—  

 

 

(1,743

)

Other income/ (expense)

 

 

100

 

 

28

 

 

(10

)

 

22

 

 

—  

 

 

140

 

Income from discontinued operations

 

 

(10

)

 

(1

)

 

—  

 

 

—  

 

 

—  

 

 

(11

)

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,385

 

$

(77

)

$

(378

)

$

163

 

$

—  

 

$

1,093

 

 

 

 

 

 

 

 

 

4


 

 

 

 

 

 

 

 

Asset Advisory Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended
March 31, 2005

 

Portfolio

 

Real Estate
Development &
Operations
Company

 

Securities
Operations

 

Merchant
Development
Funds

 

Eliminations

 

Total

 

 

 

 

 

 

 

 

Rental income

 

$

4,469

 

$

—  

 

$

—  

 

$

—  

 

$

—  

 

$

4,469

 

Securities commission income

 

 

—  

 

 

—  

 

 

2,123

 

 

—  

 

 

(2,123

)

 

—  

 

Real estate fee income

 

 

—  

 

 

994

 

 

—  

 

 

—  

 

 

—  

 

 

994

 

Other income

 

 

2

 

 

46

 

 

—  

 

 

117

 

 

—  

 

 

165

 

 

 

 

 

 

 

 

 

Total revenue

 

 

4,471

 

 

1,040

 

 

2,123

 

 

117

 

 

(2,123

)

 

5,628

 

Securities commission expense

 

 

—  

 

 

—  

 

 

1,633

 

 

—  

 

 

(1,633

)

 

—  

 

Professional fees

 

 

323

 

 

245

 

 

16

 

 

—  

 

 

—  

 

 

584

 

Depreciation and amortization

 

 

1,055

 

 

—  

 

 

—  

 

 

—  

 

 

—  

 

 

1,055

 

Property expense

 

 

695

 

 

—  

 

 

—  

 

 

—  

 

 

—  

 

 

695

 

General and administrative expense

 

 

400

 

 

624

 

 

597

 

 

27

 

 

(490

)

 

1,158

 

 

 

 

 

 

 

 

 

Total expenses

 

 

2,473

 

 

869

 

 

2,246

 

 

27

 

 

(2,123

)

 

3,492

 

Interest expense

 

 

(1,420

)

 

(38

)

 

(26

)

 

(11

)

 

—  

 

 

(1,495

)

Other income/ (expense)

 

 

(48

)

 

60

 

 

(4

)

 

2

 

 

—  

 

 

10

 

Income from discontinued operations

 

 

694

 

 

13

 

 

—  

 

 

—  

 

 

—  

 

 

707

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,224

 

$

206

 

$

(153

)

$

81

 

$

—  

 

$

1,358

 

 

 

 

 

 

 

 

 

5


AmREIT
Summary of Operating Results

 

 

Three Months Ended
March 31,

 

 

 

 

 

 

2006

 

2005

 

 

 

 

 

Funds From Operations:

 

 

 

 

 

 

 

Income – before discontinued operations

 

$

1,104

 

$

651

 

(Loss) Income – from discontinued operations

 

 

(11

)

 

707

 

Plus depreciation of real estate assets – from operations

 

 

1,989

 

 

913

 

Plus depreciation of real estate assets – from discontinued operations

 

 

185

 

 

55

 

Adjustments for nonconsolidated affiliates

 

 

30

 

 

15

 

Less gain on sale of real estate assets acquired for investment

 

 

—  

 

 

(250

)

Less class B, C & D distributions

 

 

(2,906

)

 

(1,632

)

 

 

 

 

Total Funds From Operations available to class A shareholders

 

$

391

 

$

459

 

 

 

 

 

Weighted Average Class A Shares Outstanding

 

 

6,425

 

 

3,471

 

 

 

 

 

Funds from Operations per Class A Share

 

$

0.06

 

$

0.13

 

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 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).

6


 

 

Three Months Ended
March 31,

 

 

 

 

 Rental and Earned Income:

 

2006

 

2005

 

 

 

 

Base minimum rent

 

$

4,732

 

$

3,018

 

Earned Income from direct financing leases

 

 

507

 

 

507

 

Straight line rent

 

 

40

 

 

64

 

Over/Under market rent

 

 

1

 

 

67

 

Percentage rent

 

 

136

 

 

83

 

Tenant reimbursements

 

 

924

 

 

730

 

 

 

 

 

Total Rental and Earned Income

 

$

6,341

 

$

4,469

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

 

 Real Estate Operating Revenue:

 

2006

 

2005

 

 

 

 

Development and construction management fees

 

 

 

 

 

 

 

Merchant development funds and affiliates

 

$

164

 

$

171

 

Unrelated third parties

 

 

—  

 

 

14

 

Leasing and brokerage commissions

 

 

 

 

 

 

 

Merchant development funds and affiliates

 

 

501

 

 

565

 

Unrelated third parties

 

 

751

 

 

222

 

Property management fees

 

 

 

 

 

 

 

Merchant development funds and affiliates

 

 

102

 

 

22

 

Unrelated third parties

 

 

—  

 

 

—  

 

 

 

 

 

Total Real Estate Operating Revenue

 

$

1,518

 

$

994

 

 

 

 

 

Percent attributable to merchant development funds and affiliates

 

 

51

%

 

76

%

Percent attributable to unrelated third parties

 

 

49

%

 

24

%

7


 

 

Three Months Ended
March 31,

 

 

 

 

Discontinued operations:

 

2006

 

2005

 

 

 

 

Rental revenue and earned income from DFL

 

$

9

 

$

475

 

Gain on sale of real estate held for investment

 

 

—  

 

 

250

 

Interest and other income

 

 

—  

 

 

140

 

Gain on sale of real estate held for resale

 

 

5

 

 

—  

 

 

 

 

 

Total revenues

 

 

14

 

 

865

 

Property expense

 

 

(5

)

 

(50

)

General and administrative

 

 

—  

 

 

(3

)

Federal income tax expense

 

 

2

 

 

(14

)

Legal and professional

 

 

(18

)

 

—  

 

Depreciation and amortization

 

 

—  

 

 

(55

)

Minority interest

 

 

3

 

 

(13

)

Interest expense

 

 

(7

)

 

(23

)

Debt prepayment penalty

 

 

—  

 

 

 

 

Impairment charge

 

 

—  

 

 

—  

 

 

 

 

 

Total expenses

 

 

(25

)

 

(158

)

Income (loss) from discontinued operations

 

$

(11

)

$

707

 

 

 

 

 

Basic and diluted income (loss) from discontinued operations per class A common share

 

$

(0.00

)

$

0.20

 

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

 

Interest Expense:

 

2006

 

2005

 

 

 

 

Interest paid – floating rate

 

$

120

 

$

425

 

Interest paid – fixed rate

 

 

1,622

 

 

1,073

 

Loan cost amortization

 

 

58

 

 

52

 

Out-of-market debt amortization

 

 

(57

)

 

(55

)

 

 

 

 

Total Interest Expense

 

$

1,743

 

$

1,495

 

 

 

 

 

8


AmREIT
Summary Balance Sheet Information

 

 

March 31,
2006

 

December 31,
2005

 

 

 

 

 

Class A Common Share Data:

 

 

 

 

 

 

 

Closing market price

 

$

7.60

 

$

6.90

 

Dividend yield

 

 

6.54

%

 

7.24

%

90-day average trading volume

 

 

14,411

 

 

25,095

 

Total Capitalization:

 

 

 

 

 

 

 

Debt

 

$

133,271

 

$

114,687

 

Class A common shares at market

 

 

48,652

 

 

44,171

 

Class B common shares as converted

 

 

16,330

 

 

14,826

 

Class C common shares as converted

 

 

45,598

 

 

45,319

 

Class D common shares as converted

 

 

119,153

 

 

118,852

 

 

 

 

 

Total Capitalization

 

$

363,004

 

$

337,855

 

 

 

 

 

Debt to Total Capitalization

 

 

36.7

%

 

33.9

%

9


AmREIT
Debt Information

Description

 

Amount
Outstanding
03-31-2006

 

Amount
Outstanding
12-31-2005

 

Interest
Rate

 

Annual Debt
Service

 

Maturity
Date

 

 

 

 

 

 

 

Credit Facility (1)

 

$

19,689

 

$

—  

 

 

6.43

%

$

1,265

 

 

11/4/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2007 Maturities

 

$

19,689

 

$

—  

 

 

 

 

 

 

 

 

 

 

MacArthur Park

 

$

13,410

 

$

13,410

 

 

6.17

%

$

827

 

 

12/1/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2008 Maturities

 

$

13,410

 

$

13,410

 

 

 

 

 

 

 

 

 

 

Merger Notes (2)

 

$

—  

 

$

760

 

 

5.47

%

$

43

 

 

7/23/2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010 Maturities

 

$

—  

 

$

760

 

 

 

 

 

 

 

 

 

 

Sugarland IHOP

 

$

1,186

 

$

1,196

 

 

8.25

%

$

138

 

 

3/1/2011

 

Sugar Land Plaza

 

 

2,305

 

 

2,313

 

 

7.60

%

 

203

 

 

11/1/2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 Maturities

 

$

3,491

 

$

3,509

 

 

 

 

 

 

 

 

 

 

Albuquerque IHOP

 

$

686

 

$

692

 

 

7.82

%

$

75

 

 

4/24/2012

 

Baton Rouge IHOP

 

 

1,134

 

 

1,143

 

 

7.82

%

 

124

 

 

4/24/2012

 

Beaverton IHOP

 

 

804

 

 

811

 

 

7.82

%

 

88

 

 

4/16/2012

 

Charlottesville IHOP

 

 

572

 

 

576

 

 

7.82

%

 

62

 

 

4/24/2012

 

El Paso #1934 IHOP

 

 

690

 

 

695

 

 

7.82

%

 

75

 

 

4/16/2012

 

Rochester IHOP

 

 

862

 

 

870

 

 

7.82

%

 

94

 

 

4/16/2012

 

Shawnee IHOP

 

 

681

 

 

686

 

 

7.82

%

 

74

 

 

4/18/2012

 

5115 Buffalo Spdwy.

 

 

2,753

 

 

2,761

 

 

7.58

%

 

241

 

 

5/11/2012

 

Salem IHOP

 

 

564

 

 

567

 

 

7.82

%

 

61

 

 

5/17/2012

 

Springfield IHOP

 

 

937

 

 

944

 

 

7.82

%

 

102

 

 

6/21/2012

 

Roanoke IHOP

 

 

649

 

 

654

 

 

7.89

%

 

71

 

 

7/26/2012

 

Centerville IHOP

 

 

1,136

 

 

1,145

 

 

7.89

%

 

124

 

 

7/26/2012

 

Memphis #4462 IHOP

 

 

1,228

 

 

1,237

 

 

7.89

%

 

134

 

 

7/19/2012

 

Alexandria IHOP

 

 

655

 

 

660

 

 

7.89

%

 

71

 

 

7/19/2012

 

El Paso #1938 IHOP

 

 

820

 

 

826

 

 

7.89

%

 

89

 

 

8/23/2012

 

La Verne IHOP

 

 

683

 

 

688

 

 

7.89

%

 

74

 

 

8/23/2012

 

Memphis #4482 IHOP

 

 

712

 

 

717

 

 

7.89

%

 

77

 

 

8/23/2012

 

Parker IHOP

 

 

767

 

 

772

 

 

7.89

%

 

83

 

 

8/23/2012

 

 

 

 

 

 

 

 

2012 Maturities

 

$

16,335

 

$

16,444

 

 

 

 

 

 

 

 

 

 

Cinco Ranch

 

$

8,398

 

$

8,430

 

 

5.60

%

$

601

 

 

7/10/2013

 

Plaza in the Park

 

 

17,748

 

 

17,817

 

 

5.60

%

 

1,270

 

 

7/10/2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 Maturities

 

$

26,146

 

$

26,247

 

 

 

 

 

 

 

 

 

 

10


Description

 

Amount
Outstanding
03-31-2006

 

Amount
Outstanding
12-31-2005

 

Interest
Rate

 

Annual Debt
Service

 

Maturity
Date

 

 

 

 

 

 

 

Uptown Park

 

$

49,000

 

$

49,000

 

 

5.37

%

$

2,631

 

 

06/1/2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015 Maturities

 

$

49,000

 

$

49,000

 

 

 

 

 

 

 

 

 

 

Bakery Square

 

$

4,151

 

$

4,211

 

 

8.00

%

$

571

 

 

02/10/2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 Maturities

 

$

4,151

 

$

4,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Maturities (3)

 

$

132,223

 

$

113,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 ($19.7 million as of March 31, 2006) remains constant through maturity.

 

(2) The Merger Notes were paid off during the quarter ended March 31, 2006.

 

(3) Total maturities above are $1.0 million and $1.1 million less than total debt as reported in our consolidated financial statements as of March 31, 2006 and December 31, 2005, 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,
2006

 

% of
Total

 

December 31,
2005

 

% of
Total

 

 

 

 

 

 

 

Variable rate

 

$

19,689

 

 

14.8

%

$

—  

 

 

0.0

%

Fixed rate

 

 

113,582

 

 

85.2

%

 

114,687

 

 

100.0

%

 

 

 

 

 

 

 

 

$

133,271

 

 

100.0

%

$

114,687

 

 

100.0

%

11


AmREIT
Property & Tenant Information

Multi-Tenant Shopping Centers

 

Major Tenants

 

City

 

State

 

Date
Acquired

 

GLA

 

Annualized
Base Rent as
of March 31,
2006

 

%
Leased

 

 

 

 

 

 

 

 

 

Uptown Park - Phase I and II

 

 

Ann Taylor, McCormick & Schmick’s

 

 

Houston

 

 

TX

 

 

06/1/2005

 

 

169,110

 

$

4,185,018

 

 

87

%

Southbank - Riverwalk

 

 

Hard Rock Café

 

 

San Antonio

 

 

TX

 

 

09/30/2005

 

 

46,673

 

 

1,434,915

 

 

96

%

MacArthur Park and Pad Sites

 

 

Kroger

 

 

Irving

 

 

TX

 

 

12/04 &12/05

 

 

237,381

 

 

3,799,305

 

 

96

%

Plaza in the Park

 

 

Kroger

 

 

Houston

 

 

TX

 

 

07/1/2004

 

 

139,971

 

 

2,529,012

 

 

96

%

Cinco Ranch

 

 

Kroger

 

 

Houston

 

 

TX

 

 

07/1/2004

 

 

97,302

 

 

1,246,376

 

 

100

%

Bakery Square

 

 

Walgreens & Bank of America

 

 

Houston

 

 

TX

 

 

07/21/2004

 

 

34,614

 

 

849,460

 

 

100

%

Uptown Plaza

 

 

CVS/pharmacy

 

 

Houston

 

 

TX

 

 

12/10/2003

 

 

28,000

 

 

1,236,646

 

 

100

%

Woodlands Plaza

 

 

FedEx/Kinkos & Rug Gallery

 

 

The Woodlands

 

 

TX

 

 

06/3/1998

 

 

20,018

 

 

373,317

 

 

100

%

Sugarland Plaza

 

 

Mattress Giant

 

 

Sugarland

 

 

TX

 

 

07/1/1998

 

 

16,750

 

 

349,545

 

 

100

%

Terrace Shops

 

 

Starbucks

 

 

Houston

 

 

TX

 

 

12/15/2003

 

 

16,395

 

 

469,947

 

 

100

%

584 N. Germantown Pkwy. (Baptist Memorial Medical Plaza)

 

 

Auto Zone & Baptist Memorial

 

 

Memphis

 

 

TN

 

 

07/23/2002

 

 

15,000

 

 

222,643

 

 

100

%

Courtyard on Post Oak

 

 

Verizon Wireless

 

 

Houston

 

 

TX

 

 

06/15/2004

 

 

13,597

 

 

477,361

 

 

100

%

Uptown Plaza - Dallas

 

 

Grotto, Century Bank, Pei Wei

 

 

Dallas

 

 

TX

 

 

03/30/2006

 

 

38,872

 

 

399,550

 

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Tenant Shopping Centers Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

873,683

 

 

17,573,095

 

 

97

%

Single Tenant (Ground Leases)

 

City

 

State

 

Date Acquired

 

GLA

 

Annualized Base Rent as of March 31, 2006

 

%
Leased

 

 

 

 

 

 

 

 

CVS Corporation

 

 

Houston

 

 

TX

 

 

01/10/2003

 

 

13,824

 

$

327,167

 

 

100

%

Darden Restaurants

 

 

Peachtree City

 

 

GA

 

 

12/18/1998

 

 

6,867

 

 

79,366

 

 

100

%

Carlson Restaurants

 

 

Hanover

 

 

MD

 

 

09/16/2003

 

 

6,802

 

 

141,674

 

 

100

%

Citibank

 

 

San Antonio

 

 

TX

 

 

12/17/2004

 

 

4,439

 

 

155,000

 

 

100

%

Comerica Bank

 

 

Houston

 

 

TX

 

 

04/30/2004

 

 

4,277

 

 

Note (6

)

 

100

%

Washington Mutual

 

 

Houston

 

 

TX

 

 

12/11/1996

 

 

3,685

 

 

98,160

 

 

100

%

Washington Mutual

 

 

The Woodlands

 

 

TX

 

 

9/23/1996

 

 

3,685

 

 

61,060

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Tenant (Ground Leases) Total

 

 

 

 

 

 

 

 

 

 

 

43,579

 

 

862,427

 

 

100

%

12


Single Tenant (Fee Simple)

 

City

 

State

 

Date Acquired

 

GLA

 

Annualized Base
Rent as of
March 31, 2006

 

%
Leased

 

 

 

 

 

 

 

 

Energy Wellness

 

 

Sugarland

 

 

TX

 

 

07/23/2002

 

 

15,000

 

$

187,857

 

 

33

%

Golden Corral

 

 

Houston

 

 

TX

 

 

07/23/2002

 

 

12,000

 

 

182,994

 

 

100

%

Golden Corral

 

 

Humble

 

 

TX

 

 

07/23/2002

 

 

12,000

 

 

181,688

 

 

100

%

Carlson Restaurants

 

 

Houston

 

 

TX

 

 

07/23/2005

 

 

8,500

 

 

200,000

 

 

100

%

#1483 IHOP Corporation

 

 

Sugarland

 

 

TX

 

 

09/22/1999

 

 

4,020

 

 

189,000

 

 

100

%

#1737 IHOP Corporation (5)

 

 

Centerville

 

 

UT

 

 

07/25/2002

 

 

4,020

 

 

162,360

 

 

100

%

#4462 IHOP Corporation (5)

 

 

Memphis

 

 

TN

 

 

08/23/2002

 

 

4,020

 

 

178,560

 

 

100

%

#5318 IHOP Corporation

 

 

Topeka

 

 

KS

 

 

09/30/1999

 

 

4,020

 

 

158,208

 

 

100

%

AFC, Inc.

 

 

Atlanta

 

 

GA

 

 

07/23/2002

 

 

2,583

 

 

119,279

 

 

100

%

Advance Auto (1)(2)(3)(4)

 

 

Various

 

 

Various

 

 

Various

 

 

21,000

 

 

Note (1

)

 

Note (1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Single Tenant (Fee Simple) Total

 

 

 

 

 

 

 

 

 

 

 

87,163

 

 

1,559,946

 

 

93

%

Single Tenant (Leasehold)

 

 

City

 

 

State

 

 

Date Acquired

 

 

GLA

 

 

Annualized Base
Rent as of
March 31, 2006

 

 

%
Leased

 

 

 

 

 

 

 

 

IHOP Corporation (5)

 

 

Various

 

 

Various

 

 

Various

 

 

60,300

 

$

1,561,080

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Total GLA % Leased

 

 

1,064,725

 

$

21,556,548

 

 

95

%

(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 merchant development funds, and 1.4% of which is owned by unaffiliated third parties.

(6)

This property is 100% leased; however, rent does not commence until after March 31, 2006.

13


Top Tenants by revenue concentration for the three months ended March 31, 2006:

Tenant

 

Rental
Income

 

% of Total
Operating
Revenue

 

 

 

 

Kroger

 

$

570

 

 

4.92

%

IHOP

 

 

562

 

 

4.85

%

CVS/pharmacy

 

 

247

 

 

2.13

%

Golden Corral Corporation

 

 

167

 

 

1.44

%

Hard Rock Café International

 

 

153

 

 

1.32

%

Landry’s

 

 

128

 

 

1.10

%

Linens ’N Things #632

 

 

116

 

 

1.00

%

 

 

 

 

Total

 

$

1,943

 

 

16.77

%

Leasing Activity for the quarter ended March 31, 2006:

 

 

 

 

 

 

 

 

Rent per sq. ft.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

# of leases

 

Total sq. ft.

 

New Rent

 

Old Rent

 

% Change

 

 

 

 

 

 

 

 

New leases

 

 

3

 

 

9,950

 

 

24.76

 

 

N/A

 

 

N/A

 

Activity on Existing Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease renewals

 

 

6

 

 

7,736

 

 

25.32

 

 

19.92

 

 

27.10

%

Non-renewals

 

 

0

 

 

—  

 

 

N/A

 

 

N/A

 

 

N/A

 

Expired/Cancelled leases

 

 

5

 

 

22,779

 

 

N/A

 

 

19.84

 

 

N/A

 

14


Lease Expirations by Year:

Expiration Year

 

Number of Leases Expiring

 

Square
Footage

 

Percent
of Total

 

 

 

 

 

2006

 

 

8

 

 

17,191

 

 

1.34

%

2007

 

 

17

 

 

34,769

 

 

2.72

%

2008

 

 

24

 

 

73,078

 

 

5.71

%

2009

 

 

32

 

 

79,467

 

 

6.21

%

2010

 

 

35

 

 

344,552

 

 

26.93

%

2011

 

 

43

 

 

190,793

 

 

14.91

%

2012

 

 

9

 

 

49,276

 

 

3.85

%

2013

 

 

6

 

 

25,373

 

 

1.98

%

2014

 

 

8

 

 

28,504

 

 

2.23

%

2015

 

 

1

 

 

3,000

 

 

0.23

%

2016

 

 

3

 

 

16,900

 

 

1.32

%

2019

 

 

2

 

 

38,020

 

 

2.97

%

2020

 

 

4

 

 

75,991

 

 

5.94

%

2021

 

 

3

 

 

92,723

 

 

7.25

%

2022

 

 

1

 

 

4,020

 

 

0.31

%

2023

 

 

1

 

 

63,373

 

 

4.95

%

2024

 

 

4

 

 

66,864

 

 

5.23

%

2025

 

 

6

 

 

32,100

 

 

2.51

%

2026

 

 

4

 

 

16,080

 

 

1.26

%

2027

 

 

3

 

 

12,060

 

 

0.94

%

2056

 

 

1

 

 

15,120

 

 

1.18

%

 

 

 

 

 

Totals

 

 

215

 

 

1,279,254

 

 

100.00

%

15