EX-99.3 19 am6761ex993.htm EXHIBIT 99.3

Exhibit 99.3

Message

Supplemental Financial Information

June 30, 2006

(Unaudited)

Table of Contents		Page #

Corporate Profile		1
Consolidated Balance Sheets		2
Consolidated Statements of Operations		3
Consolidated Statements of Operations - Segments		4 - 7

Summary of Operating Results
	Funds From Operations	8
	Dividends – All Classes of Common Shares	8
	Rental Income	9
	Real Estate Revenue Allocation	9
	Discontinued Operations	10
	Interest Expense	10

Summary Balance Sheet Information
	Common Share Data	11
	Capitalization	11

Debt Information
	Outstanding Balances and Terms	12 - 13
	Fixed vs. Variable Rate Debt	13

Property & Tenant Information
	Property Table	14 - 15
	Tenant Diversification	16
	Leasing Activity Report	16
	Lease Expiration Schedule	17

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 and six months ended June 30, 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 potential 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 June 30, 2006, the Company has over 1.3 million square feet of retail centers in various stages of development or in the pipeline for both our advisory business and for third parties.

Our asset advisory business 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 $48 million to $331 million and equity within our asset advisory group has grown from $15 million to $85 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

Consolidated Balance Sheets:

	June 30 2006			December 31, 2005

	(unaudited)
ASSETS
Real estate investments at cost:
Land	$	122,055		$	112,784
Buildings		140,000			127,094
Tenant improvements		8,601			7,366

		270,656			247,244
Less accumulated depreciation and amortization		(8,148	)		(5,943	)

		262,508			241,301
Real estate held for sale, net		—			3,569
Net investment in direct financing leases held for investment		19,208			19,212
Intangible lease cost, net		17,644			17,761
Investment in merchant development funds and other affiliates		2,383			2,311

Net real estate investments		301,743			284,154
Cash and cash equivalents		3,140			5,915
Tenant receivables		3,532			3,132
Accounts receivable, net		1,582			1,807
Accounts receivable - related party		1,903			4,158
Notes receivable - related party		13,762			11,232
Deferred costs		1,916			1,487
Other assets		3,068			3,086

TOTAL ASSETS	$	330,646		$	314,971

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Notes payable	$	136,741		$	114,687
Accounts payable and other liabilities		5,973			8,232
Below market leases, net		4,251			2,940
Security deposits		667			651

TOTAL LIABILITIES		147,632			126,510

Minority interest		1,147			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, 6,528,411 and 6,479,278 shares issued, respectively		65			65
Class B Common shares, $.01 par value, 3,000,000 shares authorized, 2,099,516 and 2,148,649 shares issued, respectively		21			22
Class C Common shares, $.01 par value, 4,400,000 shares authorized, 4,161,562 and 4,119,923 shares issued, respectively		42			41
Class D Common shares, $.01 par value, 17,000,000 shares authorized, 11,103,118 and 11,035,482 shares issued, respectively		111			110
Capital in excess of par value		204,977			204,331
Accumulated distributions in excess of earnings		(21,787	)		(16,736	)
Cost of treasury shares, 214,572 and 77,741 Class A shares, respectively		(1,562	)		(548	)

TOTAL SHAREHOLDERS’ EQUITY		181,867			187,285

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	330,646		$	314,971

Consolidated Statements of Operations:

	Quarter ended June 30,						Year to date June 30,

	2006			2005			2006			2005

Revenues:
Rental income from operating leases	$	7,487		$	4,482		$	13,460		$	8,393
Earned income from direct financing leases		508			508			1,015			1,015
Real estate fee income		—			58			751			294
Real estate fee income - related party		910			957			1,677			1,715
Construction revenues		319			124			940			124
Construction revenues - related party		2,623			341			3,796			341
Securities commission income - related party		1,227			271			2,618			271
Asset management fee income - related party		186			120			344			237

Total revenues		13,260			6,861			24,601			12,390

Expenses:
General and administrative		2,250			1,346			4,128			2,505
Property expense		2,162			937			3,185			1,630
Construction costs		2,609			302			4,284			302
Legal and professional		278			461			576			891
Real estate commissions		—			13			540			166
Securities commissions		1,082			236			2,339			236
Depreciation and amortization		2,391			1,324			4,573			2,360

Total expenses		10,772			4,619			19,625			8,090

Operating income		2,488			2,242			4,976			4,300
Other income (expense):
Interest and other income		232			107			467			156
Income from merchant development funds and other affiliates		208			82			306			113
Federal income tax (expense) benefit for taxable REIT subsidiary		180			(147	)		263			(157	)
Interest expense		(2,090	)		(1,480	)		(3,833	)		(2,975	)
Minority interest in income of consolidated joint ventures		(38	)		(34	)		(80	)		(73	)

Income before discontinued operations		980			770			2,099			1,364
Income from discontinued operations		266			96			234			859
Gain on sales of real estate acquired for resale		7			871			12			872

Income from discontinued operations		273			967			246			1,731

Net income		1,253			1,737			2,345			3,095
Distributions paid to class B, C and D shareholders		(2,914	)		(2,047	)		(5,820	)		(3,679	)

Net loss available to class A shareholders	$	(1,661	)	$	(310	)	$	(3,475	)	$	(584	)

Net (loss) income per class A common share - basic and diluted
Loss before discontinued operations	$	(0.30	)	$	(0.29	)	$	(0.59	)	$	(0.59	)
Income from discontinued operations		0.04			0.22			0.04			0.44

Net loss	$	(0.26	)	$	(0.07	)	$	(0.55	)	$	(0.15	)

Weighted average class A common shares used to compute net (loss) income per share, basic and diluted		6,348			4,435			6,339			3,956

Segmented Statements of Operations:

	Asset Advisory Business

For the six months ended June 30, 2006	Portfolio			Real Estate Development & Operations			Securities Operations			Merchant Development Funds		Eliminations		Total

Rental income	$	14,475		$	—		$	—		$	—	$	—	$	14,475
Securities commission income		—			—			2,618			—		—		2,618
Real estate fee income		—			2,428			—			—		—		2,428
Construction revenues		—			4,736			—			—		—		4,736
Other income		—			—			—			344		—		344

Total revenue		14,475			7,164			2,618			344		—		24,601
Securities commissions		—			—			1,903			—		—		1,903
Legal and professional		477			615			24			—		—		1,116
Depreciation and amortization		4,573			—			—			—		—		4,573
Property expense		3,147			38			—			—		—		3,185
Construction costs		—			4,284			—			—		—		4,284
General and administrative		590			2,354			1,539			81		—		4,564

Total expenses		8,787			7,291			3,466			81		—		19,625
Interest expense		(3,558	)		(250	)		(25	)		—		—		(3,833	)
Other income/ (expense)		508			125			136			187		—		956
Income (loss) from discontinued operations		273			(27	)		—			—		—		246

Net income (loss)	$	2,911		$	(279	)	$	(737	)	$	450	$	—	$	2,345

	Asset Advisory Business

For the six monthsended June 30, 2006	Portfolio			Real Estate Development & Operations			Securities Operations			Merchant Development Funds		Eliminations			Total

Rental income	$	9,408		$	—		$	—		$	—	$	—		$	9,408
Securities commission income		—			—			5,797			—		(5,526	)		271
Real estate fee income		—			2,009			—			—		—			2,009
Construction revenues		—			465			—			—		—			465
Other income		—			—			—			237		—			237

Total revenue		9,408			2,474			5,797			237		(5,526	)		12,390
Securities commissions		—			—			4,464			—		(4,255	)		209
Legal and professional		625			353			79			—		—			1,057
Depreciation and amortization		2,360			—			—			—		—			2,360
Property expense		1,617			13			—			—		—			1,630
Construction costs		—			302			—			—		—			302
General and administrative		910			1,384			1,426			83		(1,271	)		2,532

Total expenses		5,512			2,052			5,969			83		(5,526	)		8,090
Interest expense		(2,783	)		(171	)		(21	)		—		—			(2,975	)
Other income/ (expense)		(90	)		125			(16	)		20		—			39
Income from discontinued operations		1,405			326			—			—		—			1,731

Net income (loss)	$	2,428		$	702		$	(209	)	$	174	$	—		$	3,095

	Asset Advisory Business

For the six months ended June 30, 2006	Portfolio			Real Estate Development & Operations			Securities Operations			Merchant Development Funds		Eliminations		Total

Rental income	$	7,995		$	—		$	—		$	—	$	—	$	7,995
Securities commission income		—			—			1,227			—		—		1,227
Real estate fee income		—			910			—			—		—		910
Construction revenues		—			2,942			—			—		—		2,942
Other income		—			—			—			186		—		186

Total revenue		7,995			3,852			1,227			186		—		13,260
Securities commissions		—			—			886			—		—		886
Legal and professional		235			28			15			—		—		278
Depreciation and amortization		2,391			—			—			—		—		2,391
Property expense		2,142			20			—			—		—		2,162
Construction costs		—			2,609			—			—		—		2,609
General and administrative		220			1,354			810			62		—		2,446

Total expenses		4,988			4,011			1,711			62		—		10,772
Interest expense		(1,815	)		(250	)		(25	)		—		—		(2,090	)
Other income/ (expense)		199			72			146			165		—		582
Income (loss) from discontinued operations		299			(26	)		—			—		—		273

Net income (loss)	$	1,690		$	(363	)	$	(363	)	$	289	$	—	$	1,253

	Asset Advisory Business

For the six months ended June 30, 2006	Portfolio			Real Estate Development & Operations			Securities Operations			Merchant Development Funds		Eliminations			Total

Rental income	$	4,990		$	—		$	—		$	—	$	—		$	4,990
Securities commission income		—			—			3,674			—		(3,403	)		271
Real estate fee income		—			1,015			—			—		—			1,015
Construction revenues		—			465			—			—		—			465
Other income		—			—			—			120		—			120

Total revenue		4,990			1,480			3,674			120		(3,403	)		6,861
Securities commissions		—			—			2,831			—		(2,622	)		209
Legal and professional		303			108			63			—		—			474
Depreciation and amortization		1,324			—			—			—		—			1,324
Property expense		926			11			—			—		—			937
Construction costs		—			302			—			—		—			302
General and administrative		502			796			811			45		(781	)		1,373

Total expenses		3,055			1,217			3,705			45		(3,403	)		4,619
Interest expense		(1,370	)		(97	)		(13	)		—		—			(1,480	)
Other income/ (expense)		(44	)		45			(11	)		18		—			8
Income (loss) from discontinued operations		680			287			—			—		—			967

Net income (loss)	$	1,201		$	498		$	(55	)	$	93	$	—		$	1,737

AmREIT
Summary of Operations Results

	Three Months Ended June 30,						Six Months Ended June 30,

	2006			2005			2006			2005

Funds From Operations:
Income – before discontinued operations	$	980		$	770		$	2,099		$	1,364
(Loss) Income – from discontinued operations		273			967			246			1,731
Plus depreciation of real estate assets – from operations		2,425			1,178			4,589			2,072
Plus depreciation of real estate assets – from discontinued operations		6			62			16			136
Adjustments for nonconsolidated affiliates		39			29			69			44
Less gain on sale of real estate assets acquired for investment		(293	)		(344	)		(286	)		(595	)
Less class B, C & D distributions		(2,914	)		(2,047	)		(5,820	)		(3,679	)

Total Funds From Operations available to class A shareholders	$	516		$	615		$	913		$	1,073

Weighted Average Class A Shares Outstanding		6,348			4,435			6,339			3,956

Funds from Operations per Class A Share	$	0.08		$	0.14		$	0.14		$	0.27
Dividends:
Class A Common share dividends per share	$	0.12		$	0.12		$	0.24		$	0.24
Class B Common share dividends per share (1)	$	0.19		$	0.19		$	0.38		$	0.38
Class C Common share dividends per share (2)	$	0.17		$	0.17		$	0.34		$	0.34
Class D Common share dividends per share (3)	$	0.16		$	0.16		$	0.32		$	0.32


	(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 are 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).

	Three Months Ended June 30,				Six Months Ended June 30,

	2006		2005		2006		2005

Rental and Earned Income:
Base minimum rent	$	5,439	$	3,321	$	10,309	$	6,250
Earned income from direct financing leases		508		508		1,015		1,015
Straight line rent		91		77		132		148
Over/Under market rent		33		64		35		131
Percentage rent		38		—		174		84
Tenant reimbursements		1,886		1,020		2,810		1,780

Total Rental and Earned Income	$	7,995	$	4,990	$	14,475	$	9,408

	Three Months Ended June 30,						Six Months Ended June 30,

:	2006			2005			2006			2005

Real Estate Operating Revenue:
Development and construction management fees
Merchant development funds and affiliates	$	112		$	122		$	276		$	293
Unrelated third parties		—			6			—			20
Leasing and brokerage commissions
Merchant development funds and affiliates		718			807			1,219			1,372
Unrelated third parties		—			52			751			274
Property management fees
Merchant development funds and affiliates		80			28			182			50
Unrelated third parties		—			—			—			—

Total Real Estate Operating Revenue	$	910		$	1,015		$	2,428		$	2,009

Percent attributable to merchant development funds and affiliates		100	%		94	%		69	%		85	%
Percent attributable to unrelated third parties		0	%		6	%		31	%		15	%

	Three Months Ended June 30,						Six Months Ended June 30,

Discontinued operations:	2006			2005			2006			2005

Rental revenue and earned income from DFL	$	25		$	541		$	52		$	1,067
Gain on sale of real estate held for investment		293			344			286			595
Interest and other income		—			6			—			145
Gain on sale of real estate held for resale		7			871			12			872

Total revenues		325			1,762			350			2,679

Property expense		(111	)		(101	)		(114	)		(154	)
General and administrative		3			(3	)		(12	)		(6	)
Federal income tax expense		19			(151	)		19			(176	)
Legal and professional		(12	)		(11	)		(34	)		(12	)
Depreciation and amortization		(6	)		(62	)		(16	)		(136	)
Minority interest		55			(389	)		60			(365	)
Interest expense		—			(78	)		(7	)		(99	)

Total expenses		(52	)		(795	)		(104	)		(948	)

Income (loss) from discontinued operations		273			967		$	246		$	1,731

Basic and diluted income (loss) from discontinued operations per class A common share	$	0.04		$	0.22		$	0.04		$	0.44

	Three Months Ended June 30,						Six Months Ended June 30,

Interest Expense:		2006			2005			2005			2004

Interest paid – floating rate	$	249		$	192		$	287		$	616
Interest paid – fixed rate		1,838			1,288			3,542			2,362
Loan cost amortization		61			56			119			109
Out-of-market debt amortization		(58	)		(56	)		(115	)		(112	)

Total Interest Expense	$	2,090		$	1,480		$	3,833		$	2,975

AmREIT
Summary Balance Sheet Information

	June 30, 2006			December 31, 2005

Class A Common Share Data:
Closing market price	$	7.18		$	6.90
Dividend yield		6.92	%		7.24	%
90-day average trading volume		10,619			25,095
Total Capitalization:
Debt	$	136,741		$	114,687
Class A common shares at market		45,333			44,171
Class B common shares as converted		15,075			14,826
Class C common shares as converted		45,777			45,319
Class D common shares as converted		119,581			118,852

Total Capitalization	$	362,507		$	337,855

Debt to Total Capitalization		37.7	%		33.9	%

AmREIT
Debt Information

Description	Amount Outstanding 06-30-2006		Amount Outstanding 12-31-2005		Interest Rate			Annual Debt Service		Maturity Date

Credit Facility (1)	$	3,505	$	—		7.58	%	$	266		11/4/2007

2007 Maturities	$	3,505	$	—
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	$	1,176	$	1,196		8.25	%	$	138		3/1/2011
Sugar Land Plaza		2,299		2,313		7.60	%		203		11/1/2011

2011 Maturities	$	3,475	$	3,509
Albuquerque IHOP	$	681	$	692		7.82	%	$	75		4/24/2012
Baton Rouge IHOP		1,125		1,143		7.82	%		124		4/24/2012
Beaverton IHOP		798		811		7.82	%		88		4/16/2012
Charlottesville IHOP		567		576		7.82	%		62		4/24/2012
El Paso #1934 IHOP		685		695		7.82	%		75		4/16/2012
Rochester IHOP		856		870		7.82	%		94		4/16/2012
Shawnee IHOP		676		686		7.82	%		74		4/18/2012
5115 Buffalo Spdwy.		2,746		2,761		7.58	%		241		5/11/2012
Salem IHOP		560		567		7.82	%		61		5/17/2012
Springfield IHOP		930		944		7.82	%		102		6/21/2012
Roanoke IHOP		645		654		7.89	%		71		7/26/2012
Centerville IHOP		1,127		1,145		7.89	%		124		7/26/2012
Memphis #4462 IHOP		1,218		1,237		7.89	%		134		7/19/2012
Alexandria IHOP		650		660		7.89	%		71		7/19/2012
El Paso #1938 IHOP		814		826		7.89	%		89		8/23/2012
La Verne IHOP		678		688		7.89	%		74		8/23/2012
Memphis #4482 IHOP		707		717		7.89	%		77		8/23/2012
Parker IHOP		761		772		7.89	%		83		8/23/2012

2012 Maturities	$	16,225	$	16,444
Cinco Ranch	$	8,365	$	8,430		5.60	%	$	601		7/10/2013
Plaza in the Park		17,679		17,817		5.60	%		1,270		7/10/2013

2013 Maturities	$	26,044	$	26,247

Description	Amount Outstanding 06-30-2006		Amount Outstanding 12-31-2005		Interest Rate			Annual Debt Service		Maturity 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	%	$	591		6/1/2016

2016 Maturities	$	20,000	$	—
Bakery Square	$	4,091	$	4,211		8.00	%	$	571		2/10/2017

2017 Maturities	$	4,091	$	4,211

Total Maturities (3)	$	135,750	$	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 and the interest rate as of June 30, 2006 remain constant through maturity.

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

(3) Total maturities above are $991 thousand and $1.1 million less than total debt as reported in our consolidated financial statements as of June 30, 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:

		June 30, 2006	% of Total			December 31, 2005	% of Total

Variable rate	$	3,505	2.6	%	$	—	0.0	%
Fixed rate		133,236	97.4	%		114,687	100.0	%

	$	136,741	100.0	%	$	114,687	100.0	%

AmREIT
Property & Tenant Information

Multi-Tenant Shopping Centers	Major Tenants		City		State		Date Acquired		GLA		Annualized Base Rent as of June 30, 2006		Leased

Uptown Park - Phase I and II		Ann Taylor, McCormick & Schmick’s		Houston		TX		6/1/2005		169,110	$	4,185,018		92	%
Southbank - Riverwalk		Hard Rock Café		San Antonio		TX		9/30/2005		46,673	$	1,434,915		96	%
MacArthur Park and Pad Sites		Kroger		Irving		TX		12/04 &12/05		237,381	$	3,764,089		96	%
Plaza in the Park		Kroger		Houston		TX		7/1/2004		139,971		2,424,626		95	%
Cinco Ranch		Kroger		Houston		TX		7/1/2004		97,302		1,256,297		100	%
Bakery Square		Walgreens & Bank of America		Houston		TX		7/21/2004		34,614		849,460		100	%
Uptown Plaza		CVS/pharmacy		Houston		TX		12/10/2003		28,000		1,236,646		90	%
Woodlands Plaza		FedEx/Kinkos & Rug Gallery		The Woodlands		TX		6/3/1998		20,018		373,317		100	%
Sugarland Plaza		Mattress Giant		Sugarland		TX		7/1/1998		16,750		349,612		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		7/23/2002		15,000		291,039		75	%
Courtyard on Post Oak		Verizon Wireless		Houston		TX		6/15/2004		13,597		477,361		100	%
Uptown Plaza - Dallas		Grotto, Century Bank, Pei Wei		Dallas		TX		3/30/2006		38,872		1,124,781		86	%

Multi-Tenant Shopping Centers Total										873,683		18,237,108		95	%

Single Tenant (Ground Leases)	City		State		Date Acquired		GLA		Annualized Base Rent as of June 30, 2006			% 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	%
Comerica Bank		Houston		TX		4/30/2004		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	%

Single Tenant (Fee Simple)	City		State		Date Acquired		GLA		Annualized Base Rent as of June 30, 2006			% 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		189,120			100	%
#1737 IHOP Corporation (5)		Centerville		UT		7/25/2002		4,020		162,696			100	%
#4462 IHOP Corporation (5)		Memphis		TN		8/23/2002		4,020		178,848			100	%
#5318 IHOP Corporation		Topeka		KS		9/30/1999		4,020		158,340			100	%
AFC, Inc.		Atlanta		GA		7/23/2002		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								72,163		1,372,965			100	%

Single Tenant (Leasehold)

City

State

Date Acquired

GLA

Annualized
Base Rent as of
June 30, 2006

%
Leased

IHOP Corporation (5)

Various

60,300

1,560,360

100

Company Total GLA % Leased

1,049,725

22,032,861

(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 June 30, 2006.

Top Tenants by revenue concentration for the six months ended June 30, 2006:

Tenant	Rental Income		% of Total Operating Revenue

Kroger	$	822		3.34	%
IHOP Corporation		563		2.29	%
CVS/pharmacy		218		0.89	%
Linens ‘N Things		236		0.96	%
Hard Rock Café International		146		0.59	%
Champps Entertainment, Inc.		146		0.59	%
Landry’s		133		0.54	%
Golden Corral Corporation		91		0.37	%
Starbuck’s Coffee		144		0.59	%
McCormick & Schmicks		116		0.47	%

Total	$	2,615		10.63	%

Leasing Activity for the quarter ended June 30, 2006:

					Rent per sq. ft.

	# of leases		Total sq. ft.		New Rent		Old Rent		% Change

New leases		4		16,953		30.32		N/A		N/A
Activity on Existing Leases:
Lease renewals		3		5,442		27.65		26.11		5.89	%
Non-renewals		1		3,250		N/A		33.4		N/A
Expired/Cancelled leases		0		—		N/A		—		N/A

Lease Expirations by Year:

Expiration Year	Number of Leases Expiring		Square Footage		Percent of Total

2006		5		8,995.00		0.74	%
2007		16		33,269.00		2.72	%
2008		23		70,170.00		5.74	%
2009		32		77,939.00		6.38	%
2010		33		303,937.00		24.86	%
2011		50		188,749.00		15.44	%
2012		8		46,849.00		3.83	%
2013		6		25,373.00		2.08	%
2014		8		28,504.00		2.33	%
2015		1		3,000.00		0.25	%
2016		7		32,150.00		2.63	%
2019		2		38,020.00		3.11	%
2020		4		75,991.00		6.22	%
2021		3		79,806.00		6.53	%
2022		1		4,020.00		0.33	%
2023		1		63,373.00		5.18	%
2024		4		66,864.00		5.47	%
2025		6		32,100.00		2.63	%
2026		4		16,080.00		1.32	%
2027		3		12,060.00		0.99	%
2056		1		15,120.00		1.24	%

Totals		218		1,222,369		100.00	%