-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P9/tcUyRM1QVMMYwc+ipxDa+qNEcImhp5g53TczOL4qdQsGnnW8Da5YxzsYb/7jl NPR+kkN7T0NtdsBE8Fv5eg== /in/edgar/work/0000892626-00-000361/0000892626-00-000361.txt : 20001114 0000892626-00-000361.hdr.sgml : 20001114 ACCESSION NUMBER: 0000892626-00-000361 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMLI RESIDENTIAL PROPERTIES TRUST CENTRAL INDEX KEY: 0000914724 STANDARD INDUSTRIAL CLASSIFICATION: [6798 ] IRS NUMBER: 363925916 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-12784 FILM NUMBER: 760311 BUSINESS ADDRESS: STREET 1: 125 S WACKER DR STREET 2: STE 3100 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124431477 FORMER COMPANY: FORMER CONFORMED NAME: AMLI RESIDENTIAL PROPERTIES INC DATE OF NAME CHANGE: 19931112 10-Q 1 0001.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2000 Commission File Number 1-12784 AMLI RESIDENTIAL PROPERTIES TRUST (Exact name of registrant as specified in its charter) Maryland 36-3925916 (State of Organization) (I.R.S. Employer Identification No.) 125 South Wacker Drive, Suite 3100, Chicago, Illinois 60606 (Address of principal executive office) (Zip code) Registrant's telephone number, including area code: (312) 443-1477 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ( X ) No ( ) The number of the Registrant's Common Shares of Beneficial Interest outstanding was 17,828,565 as of September 30, 2000. INDEX PART I FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets as of September 30, 2000 and December 31, 1999 . . . . 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2000 and 1999. . . . . . . . . . . 5 Consolidated Statements of Shareholders' Equity for the nine months ended September 30, 2000. . . . . . . . . . . . . . . 7 Consolidated Statements of Cash Flows for the nine months ended September 30, 2000 and 1999. . . . . . . . . . . 8 Notes to Consolidated Financial Statements . . . . 10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . . . 33 Item 3. Quantitative and Qualitative Disclosures About Market Risk. . . . . . . . . . . . . . . . 42 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 47 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . 48 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2000 AND DECEMBER 31, 1999 (UNAUDITED) (Dollars in thousands, except share data) SEPTEMBER 30, DECEMBER 31, 2000 1999 ------------- ------------ ASSETS: Rental apartments: Land. . . . . . . . . . . . . . . $ 90,442 87,903 Depreciable property. . . . . . . 597,101 566,509 ---------- ---------- 687,543 654,412 Less accumulated depreciation . . (95,587) (82,626) ---------- ---------- 591,956 571,786 Rental properties held for sale, net of accumulated depreciation . -- 19,784 Properties under development. . . . 69,745 47,314 Investments in partnerships . . . . 146,926 107,518 Cash and cash equivalents . . . . . 1,520 2,318 Deferred expenses, net. . . . . . . 3,093 3,377 Security deposits . . . . . . . . . 1,491 1,541 Notes receivable from and advances to Service Companies. . . . . . . 36,336 35,717 Other assets. . . . . . . . . . . . 17,673 15,263 ---------- ---------- Total assets $ 868,740 804,618 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY: LIABILITIES: Debt (note 5) . . . . . . . . . . . $ 398,956 369,541 Accrued interest payable. . . . . . 1,759 1,743 Accrued real estate taxes payable . 10,860 9,999 Construction costs payable. . . . . 2,133 2,068 Security deposits and prepaid rents 2,538 2,807 Other liabilities . . . . . . . . . 3,270 3,606 ---------- ---------- Total liabilities . . . . 419,516 389,764 ---------- ---------- AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED BALANCE SHEETS - CONTINUED SEPTEMBER 30, DECEMBER 31, 2000 1999 ------------- ------------ Commitments and contingencies (note 6) Minority interest . . . . . . . . . 58,130 57,813 ---------- ---------- SHAREHOLDERS' EQUITY: Series A Cumulative Convertible Preferred shares of beneficial interest, $0.01 par value, 1,500,000 authorized, 1,200,000 issued and 350,000 and 850,000 outstanding (aggregate liquidation preference of $7,072 and $17,162, respectively). . . . . . . . . . . 4 9 Series B Cumulative Convertible Preferred shares of beneficial interest, $0.01 par value, 3,125,000 authorized, issued and outstanding (aggregate liquidation preference of $76,469 . . . . . . . . . . . . 31 31 Shares of beneficial interest, $0.01 par value, 145,375,000 authorized, 17,828,565 and 16,996,138 common shares issued and outstanding, respectively. . . 178 170 Additional paid-in capital. . . . . 427,541 421,989 Employees' and Trustees' notes. . . (11,423) (12,000) Dividends paid in excess of earnings. . . . . . . . . . . . (25,237) (53,158) ---------- ---------- Total shareholders' equity. . . . . . . . . 391,094 357,041 ---------- ---------- Total liabilities and shareholders' equity. . $ 868,740 804,618 ========== ========== See accompanying notes to consolidated financial statements. AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (UNAUDITED) (Dollars in thousands, except share data)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 ----------------------- ----------------------- 2000 1999 2000 1999 -------- -------- -------- -------- Revenues: Property: Rental. . . . . . . . . . . . . . . . . . . . $ 26,831 27,928 79,880 81,904 Other . . . . . . . . . . . . . . . . . . . . 1,823 1,813 5,018 5,139 Interest and share of income (loss) from Service Companies. . . . . . . . . . . . 571 594 4,397 2,270 Other interest. . . . . . . . . . . . . . . . . 381 410 990 1,102 Income from partnerships. . . . . . . . . . . . 1,999 1,172 4,516 2,845 Other . . . . . . . . . . . . . . . . . . . . . 2,530 1,934 4,256 4,005 -------- -------- -------- -------- Total revenues. . . . . . . . . . . . . 34,135 33,851 99,057 97,265 -------- -------- -------- -------- Expenses: Personnel . . . . . . . . . . . . . . . . . . . 2,773 2,806 8,322 8,149 Advertising and promotion . . . . . . . . . . . 667 714 1,759 1,984 Utilities . . . . . . . . . . . . . . . . . . . 975 1,110 2,474 3,038 Building repairs and maintenance and services. . . . . . . . . . . . . . . . . 1,548 1,656 4,378 4,500 Landscaping and grounds maintenance . . . . . . 617 639 1,833 1,898 Real estate taxes . . . . . . . . . . . . . . . 3,391 3,492 10,218 10,420 Insurance . . . . . . . . . . . . . . . . . . . 211 198 669 619 Property management fees. . . . . . . . . . . . 714 743 2,120 2,177 Other operating expenses. . . . . . . . . . . . 373 326 1,028 956 Interest. . . . . . . . . . . . . . . . . . . . 6,353 5,821 18,243 16,762 Amortization of deferred costs. . . . . . . . . 101 92 340 300 Depreciation . . . . . . . . . . . . . . . . . 4,638 4,525 14,630 13,709 General and administrative. . . . . . . . . . . 842 1,225 2,700 3,219 -------- -------- -------- -------- Total expenses. . . . . . . . . . . . . 23,203 23,347 68,714 67,731 -------- -------- -------- -------- AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF OPERATIONS - Continued THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 ----------------------- ----------------------- 2000 1999 2000 1999 -------- -------- -------- -------- Income before nonrecurring gains and minority interest . . . . . . . . . . . . . 10,932 10,504 30,343 29,534 Gains on sales of residential properties. . . . . 6,807 -- 37,274 -- -------- -------- -------- -------- Income before minority interest . . . . . . . . . 17,739 10,504 67,617 29,534 Minority interest . . . . . . . . . . . . . . . . 2,497 1,514 10,353 4,175 -------- -------- -------- -------- Net income. . . . . . . . . . . . . . . 15,242 8,990 57,264 25,359 Less income attributable to preferred shares. . . 1,766 1,789 5,424 5,451 -------- -------- -------- -------- Net income attributable to common shares . . . . . . . . . . . . $ 13,476 7,201 51,840 19,908 ======== ======== ======== ======== Net income per common share - basic . . . . . . . $ 0.77 .42 3.02 1.18 ======== ======== ======== ======== Net income per common share - diluted . . . . . . $ 0.71 .42 2.70 1.17 ======== ======== ======== ======== Dividends declared and paid per common share. . . $ 0.47 .45 1.40 1.35 ======== ======== ======== ======== See accompanying notes to consolidated financial statements.
AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2000 (Dollars in thousands)
SHARES OF BENEFICIAL INTEREST EMPLOYEES' DIVIDENDS ---------------------------------- ADDITIONAL AND PAID PREFERRED COMMON PAID-IN TRUSTEES' IN EXCESS SHARES SHARES AMOUNT CAPITAL NOTES OF EARNINGS TOTAL ---------- ---------- ------ --------- ----------- ----------- -------- Balance at December 31, 1999 . . . 3,975,000 16,996,138 $210 421,989 (12,000) (53,158) 357,041 Shares issued in connection with: Executive Share Purchase Plan . . . . -- 5,821 -- 126 -- -- 126 Options exercised . . -- 8,167 -- 168 -- -- 168 Employees' and Trustees' notes, net of repayments . . -- -- -- -- 577 -- 577 Units converted to shares . . . . . . -- 318,439 3 5,437 -- -- 5,440 Preferred shares converted to common shares . . . . (500,000) 500,000 -- -- -- -- -- Reallocation of minority interest . . . -- -- -- (179) -- -- (179) Earnings in excess of dividends paid. . . . . -- -- -- -- -- 27,921 27,921 ---------- ---------- ---- ------- ------- ------- ------- Balance at September 30, 2000. . . 3,475,000 17,828,565 $213 427,541 (11,423) (25,237) 391,094 ========== ========== ==== ======= ======= ======= ======= See accompanying notes to consolidated financial statements.
AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (UNAUDITED) (Dollars in thousands) 2000 1999 -------- -------- Cash flows from operating activities: Net income. . . . . . . . . . . . . . . . $ 57,264 25,359 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization . . . . 14,970 14,009 Cash distributions from partnerships in excess of share of income. . . . 2,497 1,981 Gains on sale of residential properties in 2000 and sale of land parcel in 1999 . . . . . . . . . . . . . . (30,467) (281) Share of partnership gain on sale of residential property. . . . . . . . (6,807) -- (Income) loss from Service Companies. (883) 952 Minority interest . . . . . . . . . . 10,353 4,175 Changes in assets and liabilities: Increase in deferred costs. . . . . . (176) (193) Decrease (increase) in security deposits . . . . . . . . . 50 (377) (Increase) decrease in other assets . (3,103) 968 Increase (decrease) in accrued real estate taxes . . . . . . . . . 774 (221) Increase in accrued interest payable. 16 1,418 (Decrease) increase in tenant security deposits and prepaid rents. . . . . (268) 449 (Decrease) increase in other liabilities . . . . . . . . . . . . (336) 375 -------- ------- Net cash provided by operating activities. . . . . . 43,884 48,614 -------- ------- Cash flows from investing activities: Net cash proceeds from sales of residential properties in 2000 and sale of land parcel in 1999 . . . . . . 64,862 1,451 Investments in partnerships . . . . . . . (34,779) (20,065) Share of partnership net cash proceeds from sale of residential property . . . 5,904 -- Repayments from (advances to) affiliates. 5,300 (13,958) Earnest money deposits. . . . . . . . . . (3,233) (590) Acquisition properties. . . . . . . . . . (43,879) (520) Capital expenditures - rehab properties . (5,641) (4,524) Capital expenditures - other properties . (3,700) (3,365) Properties under development, net of co-investors' share of costs. . . . . . (25,749) (17,680) Increase (decrease) in construction costs payable . . . . . . . . . . . . . 65 (240) -------- ------- Net cash used in investing activities. . . . . . (40,850) (59,491) -------- ------- AMLI RESIDENTIAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED 2000 1999 -------- -------- Cash flows from financing activities: Debt proceeds, net of financing costs . . 331,000 187,970 Debt repayments . . . . . . . . . . . . . (301,585) (145,163) Proceeds from issuance of Executive Share Purchase Plan shares and Option Plan shares, net of Employees' and Trustees' notes . . . . . . . . . . . . 871 575 Distributions to partners . . . . . . . . (4,775) (4,792) Dividends paid. . . . . . . . . . . . . . (29,343) (28,260) -------- ------- Net cash (used in) provided by financing activities. . . . . . (3,832) 10,330 -------- ------- Net decrease in cash and cash equivalents. . . . . . . . . . . . . (798) (547) Cash and cash equivalents at beginning of period . . . . . . . . . . . 2,318 4,546 -------- ------- Cash and cash equivalents at end of period . . . . . . . . . . . . . . $ 1,520 3,999 ======== ======= Supplemental disclosure of cash flow information: Cash paid for mortgage and other interest, net of amounts capitalized. . . . . . . $ 18,227 16,983 ======== ======== See accompanying notes to consolidated financial statements. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2000 AND 1999 (Unaudited) (Dollars in thousands, except share data) 1. ORGANIZATION AND BASIS OF PRESENTATION Organization AMLI Residential Properties Trust (the "Company") commenced operations upon the completion of its initial public offering on February 15, 1994. In the opinion of management, all adjustments, which include only normal recurring adjustments necessary to present fairly the financial position at September 30, 2000 and December 31, 1999 and the results of operations and cash flows for the periods presented, have been made. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 1999 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The results for the three and nine months ended September 30, 2000 are not necessarily indicative of expected results for the entire year. The consolidated financial statements include the accounts of the Company and AMLI Residential Properties, L. P. (the "Operating Partnership" which holds the operating assets of the Company). The Company is the sole general partner and owned an 87% majority interest in the Operating Partnership at September 30, 2000. The limited partners hold Operating Partnership units ("OP Units") which are convertible into shares of the Company on a one-for-one basis, subject to certain limitations. At September 30, 2000, there are 3,249,077 OP Units held by the limited partners and 3,475,000 convertible preferred shares issued and outstanding. The Company's management has made a number of estimates and assumptions relating to the reporting of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the report periods to prepare these financial statements in conformity with generally accepted accounting principles. Actual amounts realized or paid could differ from these estimates. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Real Estate Assets At September 30, 2000, the Company has four communities under rehab namely, AMLI at Riverbend, AMLI at Spring Creek, AMLI at North Dallas and AMLI at Valley Ranch. AMLI's larger properties were built in phases, and the rehabs of these larger properties are being done in phases. AMLI has no current plans to proceed with the rehab of additional phases. Through September 30, 2000, the Company has spent $12,892 on rehab of these four properties. All costs (except costs to routinely paint the interiors of units at turnover) associated with a rehab are capitalized and depreciated over their policy lives. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Properties Under Development Land being planned for development and all apartment homes in a new community or new phase are reported as "Properties under development" until the entire community or new phase is substantially complete and stabilized (generally 95% occupancy). Upon stabilization, all apartment homes in the community or new phase are reported as "Rental properties". Regardless of whether or not 95% occupancy is achieved, a community or new phase will be reported as "Rental properties" no later than six months following substantial completion of construction. At September 30, 2000, the Company's properties under development include parcels of land in the initial phase of development on which physical construction is anticipated to commence in 2001 or 2002. Properties under development are as follows: AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NUMBER NUMBER TOTAL OF OF EXPENDED COMMUNITY LOCATION ACRES UNITS THRU 9/30/00 - --------- -------- ------ ------ ------------ Wholly-Owned: Development Communities (1)(2): AMLI: at Bent Tree II Dallas, TX 10 200 $ 13,040 at Kings Harbor Houston, TX 15 300 6,863 --- ----- -------- Total Development Communities 25 500 19,903 --- ----- -------- Land Held for Development (1): AMLI: at Champions II Houston, TX 14 288 2,931 at Mesa Ridge Ft. Worth, TX 27 520 4,421 at Fossil Lake Ft. Worth, TX 19 324 3,292 at Fossil Lake II Ft. Worth, TX 15 240 2,342 at Prairie Lakes I Noblesville, IN 17 228 1,034 at Prairie Lakes II-IV Noblesville, IN 103 1,100 5,378 at Milton Park Atlanta, GA 21 449 3,968 at Anderson Mill Austin, TX 39 520 4,331 at Downtown Austin Austin, TX 2 218 6,641 at Parmer Park Austin, TX 28 480 3,525 at Vista Ridge City of Lewisville, TX 15 340 3,102 at Westwood Ridge Overland Park, KS 30 428 3,152 at Seven Bridges Woodridge, IL 13 520 5,725 --- ----- -------- Total Land Held for Development 343 5,655 49,842 --- ----- -------- Total Wholly-Owned 368 6,155 69,745 --- ----- -------- AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED NUMBER NUMBER TOTAL OF OF EXPENDED COMMUNITY LOCATION ACRES UNITS THRU 9/30/00 - --------- -------- ------ ------ ------------ Co-Investments (Company Ownership Percentage): Development Communities (2): AMLI: at Mill Creek (25%) Gwinnett County, GA 33 400 12,977 at Lost Mountain (75%) Paulding County, GA 17 164 9,137 at Park Bridge (25%) Atlanta, GA 35 352 21,566 at Peachtree City II (20%) Peachtree City, GA 21 216 4,170 at Monterey Oaks (25%) Austin, TX 26 430 28,803 at St. Charles (25%) St. Charles, IL 25 400 42,398 Creekside (25%) Overland Park, KS 12 224 15,992 at Wynnewood Farms (25%) Overland Park, KS 20 232 18,301 at Regents Crest II (25%) Overland Park, KS 6 108 7,975 at Cambridge Square (30%) Overland Park, KS 21 408 4,155 at Castle Creek (40%) Indianapolis, IN 16 276 20,335 at Summit Ridge (25%) Lee's Summit, MO 24 432 26,095 --- ----- -------- Total Co-Investments 256 3,642 211,904 --- ----- -------- Total Wholly-Owned and Co-Investments 624 9,797 $281,649 === ===== ======== (1) AMLI at Bent Tree II is substantially complete at September 2000 and is anticipated to be substantially leased in the fourth quarter of this year. All other properties, except for AMLI at Prairie Lakes, are anticipated to be developed in partnership with one or more institutional investors. (2) Estimated costs to complete AMLI at Kings Harbor approximate $12,500 at September 30, 2000. Estimated costs to complete the Co-Investment Development Communities of $70,000 at September 30, 2000 relate primarily to AMLI at Mill Creek, AMLI at Peachtree City II and AMLI at Cambridge Square.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Acquisition The table below summarizes the properties acquired by the Company during 1999-2000:
Company Percen- Year tage Number Com- Owner- of pleted Date Purchase Total Community ship Units (1) Acquired Price Debt Equity - --------- -------- -------- -------- -------- -------- ------ -------- WHOLLY-OWNED: AMLI: at StoneHollow Austin, TX (2). 100% 606 1997 02/13/00 $ 36,806 -- 36,806 at Towne Creek Gainesville, GA (2)(3) . . . 100% 150 1989 02/08/00 6,617 -- 6,617 ------ -------- ------ ------- 756 43,423 -- 43,423 ------ -------- ------ ------- CO-INVESTMENTS: AMLI: on Spring Mill . 20% Indianapolis, . (Resi- IN (4). . . . . idual) 400 1999 06/30/99 29,475 -- 29,475 at Prestonwood Hills Dallas, TX. . . 45% 272 1997 08/12/99 17,650 11,649 6,001 at Windward Park Alpharetta, GA. 45% 328 1999 08/26/99 27,485 18,183 9,302 at Oak Bend Lewisville, TX. 40% 426 1997 10/26/99 25,250 18,834 6,416 Midtown Houston, TX . . 45% 419 1998 01/13/00 33,250 21,945 11,305 on Frankford Dallas, TX. . . 45% 582 1998 06/26/00 38,819 25,710 13,109 at Peachtree City I Fayette County, GA (5). . . . . 20% 312 1998 06/29/00 28,630 -- 28,630 AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Company Percen- Year tage Number Com- Owner- of pleted Date Purchase Total Community ship Units (1) Acquired Price Debt Equity - --------- -------- -------- -------- -------- -------- ------ -------- at Scofield Ridge Austin, TX. . . 45% 487 2000 08/16/00 37,300 24,618 12,682 at Breckinridge Point Richardson, TX. 45% 440 1999 09/08/00 33,500 22,110 11,390 ------ -------- ------- ------- 3,666 271,359 143,049 128,310 ------ -------- ------- ------- 4,422 $314,782 143,049 171,733 ====== ======== ======= ======= (1) These acquisitions, coupled with new development and the dispositions of selected older communities, has decreased the weighted average age of AMLI's wholly-owned portfolio of apartment homes. (2) These acquisitions completed a deferred third party exchange for Federal income tax purposes. (3) The Company acquired the 99% interest in the community that it did not already own. (4) The Company paid $1.3 million for the general partnership interest in this partnership. (5) The Company's 20% interest in AMLI at Peachtree City I is a result of the Company's sale of an 80% interest in this property. Disposition The Company selectively sells properties and reinvests the proceeds in new communities to continually improve the quality of its portfolio and increase the potential for growth in net operating income. The gains on sale of residential communities are reported separately in the accompanying Statements of Operations and neither the properties' selling prices nor related gains are included in revenues in the accompanying consolidated Statements of Operations. Incentive compensation in the form of a promoted interest that is paid to the Company from sales proceeds is included in revenues in the accompanying Statements of Operations.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED The table below summarizes the properties sold by the Company during 1999-2000.
Net Operating Income in Twelve Company Months Percen- Costs Immediately tage Year Before Prior to Owner- Number Acquired/ Date Depre- Sale Net Date of Community ship of Units Developed Sold ciation Price Proceeds Gain Sale - --------- -------- -------- --------- -------- -------- -------- -------- -------- ----------- WHOLLY-OWNED: AMLI at: Park Sheridan Chicago, IL 100% 253 1989 10/12/99 $11,186 23,500 23,088 15,102 1,586 Crown Colony Topeka, KS 100% 220 1994/1997 10/14/99 10,239 11,288 11,194 1,959 1,027 Sherwood Topeka, KS 100% 300 1994 10/14/99 14,130 14,962 14,832 2,434 1,560 Sope Creek Marietta, GA (1) 100% 695 1982/83/95 02/03/00 27,604 42,500 42,105 22,316 4,014 Peachtree City I Fayette County, GA (2) 100% 312 1998 06/29/00 16,062 22,904 22,878 8,151 2,084 ----- ------- ------- ------- ------- ------- 1,780 79,221 115,154 114,097 49,962 10,271 ----- ------- ------- ------- ------- ------- Net Operating Income in Twelve Company Months Percen- Costs Immediately tage Year Before Prior to Owner- Number Acquired/ Date Depre- Sale Net Date of Community ship of Units Developed Sold ciation Price Proceeds Gain (4) Sale - --------- -------- -------- --------- -------- -------- -------- -------- -------- ----------- CO-INVESTMENTS: AMLI at: Park Place Austin, TX 25% 588 1994 12/15/99 21,419 25,750 24,832 6,001 2,396 Prairie Court Chicago, IL 1% 125 1987 08/16/99 9,129 13,500 12,850 6,717 911 Pleasant Hill Atlanta, GA (3) 40% 502 1996 09/28/00 26,445 39,104 37,983 13,846 3,382 ----- -------- ------- ------- ------- ------- 1,215 56,993 78,354 75,665 26,564 6,689 ----- -------- ------- ------- ------- ------- 2,995 $136,214 193,508 189,762 76,526 16,960 ===== ======== ======= ======= ======= ======= (1) The net proceeds from this sale were used to acquire AMLI at StoneHollow and AMLI at Towne Creek in completion of a deferred third party exchange for Federal income tax purposes. (2) Costs, sale price, net proceeds and gain are stated at 80%, which represents the Company's ownership percentage that was sold to a co-investment partnership. The Company contributed its remaining ownership in the property for which it received a 20% partnership interest. (3) The Company's $6,807 share of the gain is included in "Gains on sales of residential properties" in the accompanying consolidated statements of operations. Incentive compensation of $1,181 in the form of a promoted interest was paid to the Company from the sales proceeds and is included in "Other income" in the accompanying consolidated statements of operation. (4) Gains on sales of co-investment properties are shown net of disposition fees paid to the Company by the co-investment partnerships.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED In addition, on April 28, 1999, the Company completed the sale of a 19.7 acre land parcel for cash of $1,477, resulting in a gain on sale of $281. AMLI had originally planned to build an additional phase to an existing apartment community on this land. AMLI subsequently determined that value would be maximized through the sale of the vacant land. Interest Rate Limitation Contracts In order to eliminate its exposure to changes in Treasury rates with respect to a ten year debt financing of the acquisition of a recently- constructed apartment community (which acquisition is scheduled to close on February 1, 2001), the Company, on behalf of a co-investment partnership, acquired a Treasury Lock fixing the ten year Treasury rate for $29,500 notional principal at approximately 6.34%. At September 30, 2000, the cost to terminate this interest rate hedge would have approximated $1,206. The Company intends to complete the acquisition as scheduled. The Company has used interest rate caps and swaps to limit its exposure to increases in interest rates on its floating rate debt. The Company does not use them for trading purposes. At September 30, 2000, the Company was a party to seven interest rate swap agreements which require the Company to pay to or receive from counterparties on a monthly basis the amounts, if any, by which the Company's interest costs on the fixed rate basis differs from the interest payments required on certain floating rate debt. The Company is exposed to credit losses in the event of nonperformance by the counterparties to its interest rate swaps. The Company does not obtain collateral or other security to support financial instruments subject to credit risk but monitors the credit standing of counterparties. The Company anticipates, however, that the counterparties will be able to fully satisfy their obligations under the contracts. The following summarizes certain information pursuant to interest rate swap contracts at September 30, 2000. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Approximate Value or Cumulative (Liability) at Notional Fixed Term of Contract Cash September 30, Amount Rate(1) Contract Maturity Paid, Net 2000 (2) - -------- ------- -------- --------- ---------- ------------- $ 75,000 7.112% 1 year 05/10/01 $136 (242) 10,000 6.216% 5 years 11/01/02 167 53 10,000 6.029% 5 years 11/01/02 114 91 20,000 6.145% 5 years 02/15/03 269 148 10,000 6.070% 5 years 02/18/03 115 91 15,000 6.405% 5 years 09/20/04 46 55 10,000 6.438% 5 years 10/04/04 30 27 - -------- ---- ----- $150,000 $877 223 ======== ==== ===== (1) The fixed rate for the swaps includes the swap spread (the risk component added to the Treasury yield to determine a fixed rate) and excludes lender's spread. (2) Represents the approximate amount which the Company would have received or paid as of September 30, 2000 if these contracts were terminated. This amount is not recorded as an asset or a liability in the accompanying balance sheet as of September 30, 2000. Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," as clarified by Statement of Financial Accounting Standards No. 138 on the same subject, became effective for all fiscal quarters for fiscal years beginning after June 15, 2000. Among other things, the new statement requires that the values of the derivative contracts be included as assets or liabilities in the balance sheet, that changes in the values of these contracts be included in comprehensive income, and that any portion of such change in values which is not an effective hedge be included in net income. The Company has determined that the $150,000 notional amount of interest rate swaps were, except for $6, effective hedges of interest rate risk in the three months ended September 30, 2000. Statement No. 133 is not expected to have a material impact on the Company's financial statements.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED PER SHARE DATA A reconciliation of the numerator and denominator of the basic earnings per share computation to the numerator and denominator of the diluted earnings per share computation is as follows:
Three Months Ended Nine Months Ended September 30, September 30, ------------------------- ------------------------- 2000 1999 2000 1999 ---------- ----------- ---------- ---------- Net income. . . . . . . . . . . . . $ 15,242 8,990 57,264 25,359 Less income attributable to preferred shares. . . . . . . . . (1,766) (1,789) (5,424) (5,451) ---------- ---------- ---------- ---------- Income before extraordinary item attributable to common shares - Basic . . . . . . . . . . . . . $ 13,476 7,201 51,840 19,908 ========== ========== ========== ========== Income before extraordinary items - - Diluted . . . . . . . . . . . . $ 15,242 8,990 57,264 25,359 ========== ========== ========== ========== Weighted average common shares - Basic . . . . . . . . . . . . . 17,538,488 16,982,763 17,240,591 16,900,265 ========== ========== ========== ========== Dilutive Options and Other Plan shares. . . . . . . . . . . . . . 247,308 62,207 147,444 59,259 Convertible preferred shares. . . . 3,757,609 N/A (1) 3,902,007 N/A (1) ---------- ---------- ---------- ---------- Weighted average common shares - Dilutive. . . . . . . . . . . . 21,543,405 17,044,970 21,290,042 16,959,524 ========== ========== ========== ========== Earnings per share before extra- ordinary items: Basic . . . . . . . . . . . . . $ .77 .42 3.02 1.18 Diluted . . . . . . . . . . . . $ .71 .42 2.70 1.17 ========== ========== ========== ========== (1) In 1999, convertible preferred shares were anti-dilutive.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 3. INVESTMENTS IN PARTNERSHIPS AND SERVICE COMPANIES INVESTMENTS IN PARTNERSHIPS At September 30, 2000, the Operating Partnership is a general partner in various co-investment partnerships. The Operating Partnership and the Service Companies receive various fees for services provided to these co- investment partnerships, including development fees, construction fees, acquisition fees, property management fees, asset management fees, financing fees, administrative fees and disposition fees. The Operating Partnership is entitled to shares of cash flow or liquidation proceeds in excess of its stated ownership percentages, in most cases based on returns to its partners in excess of specified rates. The Operating Partnership has received cash flow and has recorded operating income in excess of its ownership percentages of $668 for the nine months ended September 30, 2000. Investments in partnerships at September 30, 2000 and the Company's 2000 share of income or loss for the nine months then ended from each are summarized as follows: AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Equity Total Company's Company's Company's ------------------ Company's Net Share of Share of Percentage Total Company's Investment Income Net Income Deprecia- Community Ownership Assets Total Share (1) (1) (Loss) (Loss) tion - --------- ---------- ------- ----- --------- ---------- ----- ---------- ---------- AMLI: at Greenwood Forest 15% $ 15,886 4,065 622 592 31 5 49 at Champions Park 15% 11,698 2,745 412 412 45 7 39 at Champions Centre 15% 8,826 2,035 305 305 (72) (11) 29 at Windbrooke 15% 16,184 4,435 665 665 363 54 50 at Willeo Creek 30% 13,920 4,187 1,256 1,256 220 66 117 at Barrett Lakes 35% 24,878 7,979 2,792 2,898 685 240 239 at Chevy Chase 33% 41,949 12,861 4,271 4,271 1,453 516 324 at Willowbrook 40% 34,970 10,774 4,309 4,227 860 344 354 at River Park 40% 13,808 4,885 1,954 1,910 606 242 133 at Fox Valley 25% 22,989 22,529 5,632 5,811 949 237 140 at Fossil Creek 25% 20,348 19,758 4,940 5,030 1,131 283 136 at Danada Farms 10% 45,365 20,086 2,009 2,000 1,302 130 103 at Verandah 35% 22,730 5,300 1,898 1,955 (59) 18 296 at Northwinds 35% 52,400 17,378 6,082 5,924 1,330 466 466 at Regents Crest 25% 32,258 16,215 4,054 4,135 165 104 169 at Oakhurst North 25% 41,882 41,115 10,279 10,280 840 210 256 at Wells Branch 25% 33,452 32,470 8,117 7,566 1,841 460 216 on the Parkway 25% 15,186 4,262 1,063 761 92 25 108 on Timberglen 40% 10,532 3,687 1,494 56 (28) 24 144 at Castle Creek 40% 20,466 19,955 7,981 8,140 (36) (14) 153 at Lake Clear- water 25% 16,081 15,359 3,840 3,893 161 40 92 Creekside 25% 15,996 15,764 3,941 4,067 (122) (31) 71 at Deerfield 25% 17,253 4,347 1,084 894 (254) (68) 110 at Wynnewood Farms 25% 18,220 17,732 4,433 4,474 (48) (12) 84 AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Equity Total Company's Company's Company's ------------------- Company's Net Share of Share of Percentage Total Company's Investment Income Net Income Deprecia- Community Ownership Assets Total Share (1) (1) (Loss) (Loss) tion - --------- ---------- ------- ------ --------- ---------- ----- ---------- ---------- at Monterey Oaks 25% 29,080 26,571 6,643 6,744 205 51 53 at St. Charles 25% 41,850 38,627 9,657 9,663 560 140 194 at Park Bridge 25% 21,553 18,999 4,750 4,843 (117) (29) 33 at Mill Creek 25% 12,978 12,476 3,119 3,218 (26) (6) 1 at Lost Mountain 75% 10,076 671 719 824 (188) (141) 83 on Spring Mill 20% (Residual) 29,609 28,774 -- 1,282 1,070 -- -- at Prestonwood Hills 45% 17,971 6,013 2,727 2,721 140 95 162 at Windward Park 45% 27,797 9,323 4,055 4,209 275 164 248 at Summit Ridge 25% 26,145 5,173 1,293 1,096 (368) (75) 49 at Oak Bend 40% 25,581 6,059 2,370 2,370 144 78 198 Midtown 45% 34,209 11,511 5,457 5,225 395 258 281 on Frankford 45% 40,483 13,763 6,377 6,249 96 74 148 at Peachtree City I 20% 29,574 29,247 5,849 3,784 441 88 34 at Peachtree City II 20% 4,527 1,000 200 154 -- -- -- at Scofield Ridge 45% 38,723 13,363 6,069 6,044 74 47 55 at Breckinridge Point 45% 34,922 12,014 5,461 5,439 44 26 29 at Cambridge Square 30% 4,165 4,077 1,223 1,200 -- -- -- -------- ------- ------- ------- ------- ------ ------ 996,520 547,584 149,402 146,587 14,200 4,105 5,446 Other 929 719 359 364 15,763 411 252 -------- ------- ------- ------- ------- ------ ------ $997,449 548,303 149,761 146,951 29,963 4,516 5,698 ======== ======= ======= ======= ======= ====== ======
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (1) The Company's investment in partnerships differs from the Company's share of co-investment partnerships' equity primarily due to capitalized interest on its investments in properties under development, purchase price basis differences and the elimination of the Company's share of development fee income. These items are amortized over 40 years using the straight-line method. All but two debt financings have been obtained at fixed rates from various insurance companies on behalf of these co-investment partnerships. At September 30, 2000, the Company's share of co-investment's debt totaled $143,822. The following summarizes co-investment debt at September 30, 2000: Total Outstanding Interest Community Commitment at 9/30/00 Rate Maturity - --------- ---------- ----------- -------- -------- AMLI: at Champions Centre $ 6,700 6,467 8.93% January 2002 at Champions Park 9,500 8,593 7.49% January 2002 at Windbrooke 11,500 11,219 9.24% February 2002 at Greenwood Forest 11,625 11,359 8.95% May 2002 at Peachtree City II 19,170 3,256 L+1.875% June 2002 at Summit Ridge 18,954 18,954 L+1.75% December 2002 at Chevy Chase 29,767 27,991 6.67% April 2003 at Willeo Creek 10,000 9,427 6.77% May 2003 at Willowbrook 24,500 23,286 7.785% May 2003 at Regents Crest 16,500 15,542 7.50% December 2003 at Verandah 16,940 16,597 7.55% April 2004 on Timberglen 6,770 6,551 7.70% June 2004 at Prestonwood Hills 11,649 11,535 7.17% August 2006 at Windward Park 18,183 18,009 7.27% August 2006 at Oak Bend 18,834 18,713 7.81% December 2006 at Deerfield 12,600 12,524 7.56% January 2007 Midtown 21,945 21,812 7.52% January 2007 at Danada Farms 24,500 24,143 7.33% March 2007 on Frankford 25,710 25,683 8.25% June 2007 at Breckinridge Point 22,110 22,110 7.57% July 2007 at Scofield Ridge 24,618 24,618 7.70% August 2007 at River Park 9,100 8,793 7.75% June 2008 on the Parkway 10,800 10,507 6.75% January 2009 at Barrett Lakes 16,680 16,318 8.50% December 2009 at Northwinds 33,800 33,800 8.25% October 2010 at Lost Mountain 10,252 8,349 6.84% November 2040 -------- -------- $442,707 416,156 ======== ======== In general, these loans provide for monthly payments of principal and interest based on a 25 or 27 year amortization schedule and a balloon payment at maturity. Some loans provide for payments of interest only for an initial period, with principal amortization commencing generally within two years. Investments in Service Companies Summarized combined financial information of the Service Companies at and for the nine months ended September 30, 2000 and 1999 follows: AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 2000 1999 ------- ------- Income (1) $15,303 12,015 General and adminis- trative expenses (8,916) (8,715) ------- ------- EBITDA 6,387 3,300 Interest (3,206) (2,438) Depreciation (1,438) (1,142) Income taxes (672) (39) ------- ------- Income (loss) (2)(3) $ 1,071 (319) ======= ======= Total assets $49,709 45,927 ======= ======= (1) Net of construction and landscaping costs. (2) Net of tax effect includes $311 in amortization of goodwill in both years. (3) The Company's share of income in 2000 (including the recognition of $379 of intercompany profit previously eliminated) includes $2,708 in after tax gains from sales of non-multi-family residential land. Substantially all interest expense of the Service Companies results from notes payable to the Company at interest rates ranging from 9.5% to 13.0%. Interest and share of income from Service Companies as included in the accompanying Consolidated Statements of Operations is reconciled below: September 30, ------------------ 2000 1999 ------ ------ Intercompany interest expensed . . . . . . $ 3,206 2,438 Intercompany interest capitalized. . . . . 308 784 Income (loss). . . . . . . . . . . . . . . 1,071 (319) Intercompany eliminations and minority interests, net. . . . . . . . . (188) (633) ------- ------ $ 4,397 2,270 ======= ====== 4. RELATED PARTY TRANSACTIONS During the nine months ended September 30, 2000 and 1999, the Company accrued or paid to its affiliates fees and other costs and expenses as follows: 2000 1999 ------ ----- Management fees $2,120 2,177 General contractor fees 176 265 Interest expense 411 413 Landscaping and grounds maintenance 1,568 1,751 ====== ===== In addition, at September 30, 2000 and December 31, 1999, the Company owed Amli Residential Construction, Inc. $2,133 and $2,068, respectively, for construction costs of communities under development. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED During the nine months ended September 30, 2000 and 1999, the Company earned or received from its affiliates fees and other income as follows: 2000 1999 ------ ----- Development fees $1,353 2,228 Acquisition fees 708 149 Asset management fees 441 453 Disposition fee (1) 412 354 Promoted interest (2) 1,181 529 Accounting and administrative fees -- 4 Interest on advances to other affiliates 214 384 Interest on notes and advances to Service Companies 3,514 3,222 ====== ===== (1) Fees from sales of AMLI at Pleasant Hill and AMLI at Prairie Court in 2000 and 1999, respectively, net of intercompany eliminations. (2) The Company's share of net sale proceeds representing incentive compensation in the form of promoted interest in AMLI at Pleasant Hill and AMLI at Prairie Court in 2000 and 1999, respectively. In addition, during the nine months ended September 30, 2000 and 1999, total revenues of $1,954 and $1,573, respectively, were generated from leases to AMLI Corporate Homes ("ACH"), a division of one of the Service Companies. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 5. DEBT The table below summarizes certain information relating to the indebtedness of the Company.
Balance Balance Original at Interest Maturity at Encumbered Communities Amount 9/30/00 Rate Date 12/31/99 - ---------------------- -------- -------- -------- -------- -------- BOND FINANCING: Tax-Exempt Unsecured (1) $ 40,750 40,750 Rate+1.23% 10/1/24 40,750 Tax-Exempt AMLI at Poplar Creek 9,500 9,500 Rate+1.15% 2/1/24 9,500 -------- ------- ------- Total Bonds 50,250 50,250 50,250 -------- ------- ------- MORTGAGE NOTES PAYABLE TO FINANCIAL INSTITUTIONS: AMLI at Conner Farms 13,275 12,305 7.00% 6/15/03 12,498 AMLI at Riverbend 31,000 28,875 7.30% 7/1/03 29,307 AMLI in Great Hills 11,000 10,250 7.34% 7/1/03 10,402 AMLI at Valley Ranch 11,500 10,036 7.625% 7/10/03 10,229 AMLI at Nantucket 7,735 7,484 7.70% 6/1/04 7,573 AMLI at Bishop's Gate 15,380 14,594 (2) 8/1/05 14,803 AMLI at Regents Center 20,100 19,312 (3) 9/1/05 19,463 AMLI on the Green/AMLI of North Dallas (4) 43,234 40,588 7.789% 5/1/06 41,120 AMLI at Clairmont 12,880 12,778 6.95% 2/15/08 12,880 AMLI at Park Creek 10,322 10,234 7.875% 12/1/38 10,266 -------- ------- -------- Total Mortgage Notes Payable 176,426 166,456(5) 168,541 -------- ------- -------- AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Balance Balance Original at Interest Maturity at Encumbered Properties Amount 9/30/00 Rate Date 12/31/99 - --------------------- -------- -------- -------- -------- -------- OTHER NOTES PAYABLE: Unsecured line of credit (6)(7) 250,000 176,500 L+1.05% 10/11/02 145,000 Note payable to Service Company 5,000 5,000 10.00% 1/1/03 5,000 Unsecured note payable to Service Company 750 750 4.00% Demand 750 -------- ------- --------- ------- ------- Total Other Notes Payable 255,750 182,250 150,750 -------- ------- ------- Total $482,426 398,956 369,541 ======== ======= ======= (1) The terms of these tax-exempt bonds require that a portion of the apartment units be leased to individuals who qualify based on income levels specified by the U.S. Government. The bonds bear interest at a variable rate that is adjusted weekly based upon the remarketing rate for these bonds (4.39% for AMLI at Spring Creek and 4.44% for AMLI at Poplar Creek at October 26, 2000). The credit enhancement for the AMLI at Spring Creek bonds was provided by a $41,297 letter of credit from Wachovia Bank which expires on October 11, 2002 and the credit enhancement for the AMLI at Poplar Creek bonds was provided by a $9,617 letter of credit from LaSalle National Bank that expires December 18, 2002. (2) This original $14,000 mortgage note bears interest at 9.1%. For financial reporting purposes, this mortgage note was valued at $15,380 to reflect a 7.25% market rate of interest when assumed in connection with the acquisition of AMLI at Bishop's Gate on October 17, 1997. The unamortized premium at September 30, 2000 is $890. (3) $13,800 at 8.73% and $6,300 at 9.23%. (4) These two properties secure the FNMA loan that was sold at a discount of $673. At September 30, 2000, the unamortized discount amount is $376. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (5) All but $20,812 of the total is non-recourse to the partners of the Operating Partnership. (6) The Company has used interest rate swaps on $150,000 of the outstanding amount to fix its base interest rate (before current lender's spread) at an average of 6.67%. (7) The Company's unsecured line of credit has been provided by a group of eight banks led by Wachovia Bank, N.A. and Bank One, N.A. In October 1999, the Company increased the line of credit by $50,000 to $250,000, expandible to $300,000, and extended the maturity of the line of credit by one year to October 2002 with two one- year renewal options. In addition, the interest rate, which is based in part on the credit rating assigned to unsecured borrowings, increased to LIBOR plus 1.05% from LIBOR plus 0.90%. The Company is in the process of modifying and extending the maturity of this line of credit. This unsecured line of credit requires that the Company meet various covenants typical of such an arrangement, including minimum net worth, minimum debt service coverage and maximum debt to equity percentage. The unsecured line of credit is used for acquisition and development activities and working capital needs.
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED As of September 30, 2000, the scheduled maturities of the Company's debt are as follows:
FIXED RATE MORTGAGE NOTES NOTES PAYABLE UNSECURED PAYABLE TO BOND TO FINANCIAL LINES SERVICE FINANCINGS INSTITUTIONS OF CREDIT COMPANIES TOTAL ---------- ------------- --------- ----------- ---------- 2000. . . . . . . . . . . . . . . . . $ -- 725 -- 750 1,475 2001. . . . . . . . . . . . . . . . . -- 3,039 -- -- 3,039 2002. . . . . . . . . . . . . . . . . 50,250 3,273 176,500 -- 230,023 2003. . . . . . . . . . . . . . . . . -- 60,117 -- 5,000 65,117 2004. . . . . . . . . . . . . . . . . -- 8,933 -- -- 8,933 Thereafter. . . . . . . . . . . . . . -- 90,369 -- -- 90,369 ------- ------- ------- ------- ------- $50,250 166,456 176,500 5,750 398,956 ======= ======= ======= ======= =======
AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED 6. COMMITMENTS AND CONTINGENCIES The limited partnership Agreements of AMLI at Verandah L.P. and AMLI on Timberglen provide for the redemption (at an amount determined by formula) by the partnerships of the limited partner's entire interest, in their sole discretion, at any time after March 25, 2002 and December 16, 2003, or at any time that there is a designated event of default on related indebtedness of the partnerships, which event of default remains uncured and unwaived to the time of notice of redemption election. The redemption amount may be paid in cash or Company shares of beneficial interest, or any combination thereof, in the sole discretion of the Company. 7. SEGMENT REPORTING The revenues, net operating income, FFO and assets for the Company's reportable segment are summarized as follows: Nine Months Ended September 30, ------------------------ 2000 1999 ---------- ---------- Multifamily segment revenues (1). . . . . . . $ 174,861 150,523 ========== ========== Multifamily segment net operating income (1). $ 106,628 91,794 Reconciling items to FFO: Reduce co-investment net operating income to Company's share (2). . . . . . . . . . (44,317) (32,034) Interest income and share of income (loss) from Service Companies. . . . . . . . . . 4,708 2,581 Other interest income . . . . . . . . . . . 990 1,102 Other revenues. . . . . . . . . . . . . . . 4,256 4,005 General and administrative expenses . . . . (2,700) (3,219) Interest expense and loan cost amortization (18,583) (17,062) ---------- ---------- Consolidated FFO before minority interest . . 50,982 47,167 ---------- ---------- Reconciling items to net income: Depreciation - wholly owned properties. . . (14,630) (13,709) Depreciation - share of co-investment properties. . . . . . . . . . . . . . . . (5,698) (3,613) Share of Service Company's goodwill amortization. . . . . . . . . . . . . . . (311) (311) Gain on sale of residential property. . . . 37,274 -- ---------- ---------- Income before minority interest and extraordinary items . . . . . . . . . . . . 67,617 29,534 Minority interest . . . . . . . . . . . . . . 10,353 4,175 ---------- ---------- Net income. . . . . . . . . . . . . . . . . . $ 57,264 25,359 ========== ========== September 30, December 31, 2000 1999 ------------- ------------ Segment assets (1) (3). . . . . . . . . . . . $1,600,075 1,462,051 ========== ========== (1) In 2000, represents all properties in which the Company has an ownership interest; in 1999, excludes AMLI at Prairie Court and AMLI at Towne Creek, in which the Company had a 1% GP interest. AMLI RESIDENTIAL PROPERTIES TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (2) Represents amount required to reduce co-investment properties' net operating income to the Company's share of net operating income from partnerships. (3) Represents original acquisition costs of wholly owned and co- investment properties. The Company derives no consolidated revenues from foreign countries nor has any major customers that individually account for 10% or more of the Company's consolidated revenues. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA) The following discussion is based primarily on the consolidated financial statements of Amli Residential Properties Trust (the "Company") as of September 30, 2000 and December 31, 1999 and for the three and nine months ended September 30, 2000 and 1999. This information should be read in conjunction with the accompanying unaudited consolidated financial statements and notes thereto. These financial statements include all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. As of September 30, 2000, the Company owned an 87% general partnership interest in AMLI Residential Properties, L.P. (the "Operating Partnership"), which holds the operating assets of the Company. The limited partners hold Operating Partnership units ("OP Units") that are convertible into common shares of the Company on a one-for-one basis, subject to certain limitations. On August 22, 2000, 500,000 Series A Preferred shares were converted to common shares leaving 350,000 Series A Preferred shares outstanding at September 30, 2000. At September 30, 2000, the Company owned 21,303,565 OP Units and the limited partners owned 3,249,077 OP Units. The Company has qualified, and anticipates continuing to qualify, as a real estate investment trust ("REIT") for Federal income tax purposes. RESULTS OF OPERATIONS During the period from January 1, 1999 through September 30, 2000, the decrease in property revenues and property operating expenses resulted from dispositions of communities owned as of January 1, 1999, offset in part by revenues and operating expenses from communities acquired and from the communities newly-constructed since January 1, 1999. Since January 1, 1999, the Company has sold five stabilized communities containing a total of 1,780 apartment homes. During the same period, the Company has acquired a total of 756 units in two stabilized communities (AMLI at StoneHollow and AMLI at Towne Creek) and developed and begun rental operations on 200 apartment homes of one community (AMLI at Bent Tree II). Property operations from wholly-owned assets for the nine months ended September 30, 2000 and 1999 are summarized as follows: Increase 2000 1999 (Decrease) ------- ------ --------- Total Wholly-Owned Property Revenues - ------------------ Same Communities . . . . . . . $75,052 73,591 1,461 New Communities. . . . . . . . 1,896 1,056 840 Development and/or Lease-up Communities . . . . . . . . . 768 -- 768 Acquisition Communities. . . . 4,872 -- 4,872 Communities Contributed to Ventures/Sold. . . . . . . 2,311 12,395 (10,084) ------- ------- ------- Total . . . . . . . . . . . $84,899 87,042 (2,143) ======= ======= ======= Increase 2000 1999 (Decrease) ------- ------ --------- Total Wholly-Owned Property Operating Expenses - --------------------------- Same Communities . . . . . . . $29,109 28,870 239 New Communities. . . . . . . . 600 557 43 Development and/or Lease-up Communities . . . . . . . . . 495 -- 495 Acquisition Communities. . . . 1,867 -- 1,867 Communities Contributed to Ventures/Sold. . . . . . . 708 4,312 (3,604) ------- ------- ------- Total . . . . . . . . . . . $32,779 33,739 (960) ======= ======= ======= Total Wholly-Owned Property Net Operating Income - ----------------------------- Same Communities . . . . . . . $ 45,943 44,721 1,222 New Communities. . . . . . . . 1,296 499 797 Development and/or Lease-up Communities . . . . . . . . . 273 -- 273 Acquisition Communities . . . 3,005 -- 3,005 Communities Contributed to Ventures/Sold. . . . . . . 1,603 8,083 (6,480) ------- ------- ------- Total . . . . . . . . . . . $52,120 53,303 (1,183) ======= ======= ======= The term "New Communities" refers to completed properties owned since the beginning of the earliest period for which comparative financial information is presented. Property Net Operating Income is computed before interest, taxes, depreciation and amortization. This performance measure is not intended as a replacement for net income determined in accordance with generally accepted accounting principles ("GAAP"). Since January 1999, the Company has invested in eight co-investment partnerships which acquired eight stabilized communities containing a total of 3,266 units: AMLI at Prestonwood Hills, a 272-unit community, AMLI at Windward Park, a 328-unit community, AMLI at Oak Bend, a 426-unit community, AMLI Midtown, a 419-unit community, AMLI on Frankford, a 582- unit community, AMLI at Peachtree City I, a 312-unit community, AMLI at Scofield Ridge, a 487-unit community, and AMLI at Breckinridge Point, a 440-unit community. In addition, the Company in joint venture with institutional investors, completed the development or has under development and begun rental operations of nine new communities and one additional phase to an existing stabilized community, that contain a total of 2,834 apartment homes (AMLI at St. Charles, AMLI at Lake Clearwater, AMLI at Castle Creek, AMLI Creekside, AMLI at Wynnewood, AMLI at Monterey Oaks, AMLI at Park Bridge, AMLI at Lost Mountain, AMLI at Summit Ridge and AMLI at Regents Crest II). Property operations for all co-investment properties for the nine months ended September 30, 2000 and 1999 are summarized as follows: Increase 2000 1999 (Decrease) ------- ------- --------- Total Co-investment Property Revenues - ------------------------------------- Same Communities . . . . . . . $42,525 41,349 1,176 New Communities. . . . . . . . 18,967 13,471 5,496 Development and/or Lease-up Communities . . . . . . . . . 8,016 139 7,877 Acquisition Communities. . . . 16,679 2,110 14,569 Communities Contributed to Ventures/Sold. . . . . . . 4,804 8,876 (4,072) ------- ------- ------- Total . . . . . . . . . . . $90,991 65,945 25,046 ======= ======= ======= Company's share of co-invest- ment total revenues . . . . . $26,563 17,894 8,669 ======= ======= ======= Total Co-investment Property Operating Expenses - --------------------------- Same Communities . . . . . . . $15,505 15,370 135 New Communities. . . . . . . . 7,132 5,444 1,688 Development and/or Lease-up Communities . . . . . . . . . 4,609 294 4,315 Acquisition Communities. . . . 6,366 944 5,422 Communities Contributed to Ventures/Sold. . . . . . . 1,595 3,676 (2,081) ------- ------- ------- Total . . . . . . . . . . . $35,207 25,728 9,479 ======= ======= ======= Company's share of co-invest- ment property operating expenses. . . . . . . . . . . $10,167 6,892 3,275 ======= ======= ======= Total Co-investment Property Net Operating Income - ---------------------------- Same Communities . . . . . . . $27,020 25,979 1,041 New Communities. . . . . . . . 11,835 8,027 3,808 Development and/or Lease-up Communities . . . . . . . . . 3,407 (155) 3,562 Acquisition Communities . . . . . . . . . 10,313 1,166 9,147 Communities Contributed to Ventures/Sold . . . . . . . . 3,209 5,200 (1,991) ------- ------- ------- Total . . . . . . . . . . . $55,784 40,217 15,567 ======= ======= ======= Company's share of co-invest- ment property NOI. . . . . . . $17,359 11,231 6,128 ======= ======= ======= For the nine months ended September 30, 2000, total revenues were $99,057 and net income was $57,264 including gains of $37,274 from sales of AMLI at Sope Creek, 80% of the Company's ownership interest in AMLI at Peachtree City I and share of gain on sale of AMLI at Pleasant Hill. For the nine months ended September 30, 1999, total revenues were $97,265 and net income was $25,359. For the nine months ended September 30, 2000, diluted earnings per common share included gains from sales of these three communities ($1.50 per diluted share) and increased to $2.70 from $1.17 for the nine months ended September 30, 1999. Basic earnings per common share for the nine months ended September 30, 2000 increased to $3.02 ($1.21 excluding the gain) from $1.18 for the nine months ended September 30, 1999. On a "same community" basis, weighted average occupancy of the apartment homes owned wholly by the Company decreased slightly to 91.8% for the nine months ended September 30, 2000 from 92.8% in the prior year. Weighted average collected rental rates increased by 2.4% to $757 from $740 per unit per month for the nine months ended September 30, 2000 and 1999, respectively. Including Co-Investment Communities, weighted average occupancy of the Company's apartment homes decreased to 92.6% for the nine months ended September 30, 2000 from 93.3% in the prior year, and weighted average collected rental rates increased by 2.2% to $791 from $775 per unit per month for the nine months ended September 30, 2000 and 1999, respectively. COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2000 TO NINE MONTHS ENDED SEPTEMBER 30, 1999. Income before minority interest increased to $67,167 for the nine months ended September 30, 2000 from $29,534 for the nine months ended September 30, 1999. This increase was primarily attributable to a $37,274 in gains on sales of residential properties, a $1,792 increase in total revenues and a $940 decrease in property operating expenses, reduced by a $1,481 increase in interest expense and a $921 increase in depreciation. The increase in total revenues was largely from the Company's share of after tax gains of $2,708 from sales of six land parcels by a Service Company and the $1,181 of incentive compensation the Company received from the sale of a co-investment community. The decrease in property operating expenses was a result of reduced utilities expense resulting from full implementation of the Company's program to transfer the liability for utility costs to its residents. Net income for the nine months ended September 30, 2000 and 1999 was $57,264 and $25,359, respectively. Total property revenues decreased by $2,145 or 2.7%. This decrease in property revenues was primarily from the 1,780 apartment homes sold during 2000 and 1999. This decrease was offset in part by increases resulting from 756 apartment homes acquired during 2000. In addition, the Company commenced leasing 200 apartment homes under development during 1999 and 2000. Furthermore, moderate increases in rental rates were achieved, offset by a decline in weighted average occupancy as discussed in the preceding paragraph. Other property revenues include increases in various fees charged to residents. On the same community basis total property revenues increased by $1,460 or 2.0% and property operating income increased by $1,222 or 2.7%. The Company operates, owns and manages apartments in seven metropolitan areas. During 2000, the supply/demand characteristics in the suburban Austin and Chicago markets have enabled the Company to increase rents at a rate in excess of the rate of inflation. Supply and demand is generally in balance in Atlanta. A combination of a moderate over-supply of rental apartments in Dallas, Houston, Indianapolis and Kansas City coupled with increased vacancy rates attributable to the Company's rehabs of four wholly-owned communities in Atlanta, Dallas and Indianapolis, has contributed to overall growth in collected rents at less than the rate of inflation. Interest and share of income from Service Companies increased 93.7% to $4,397 from $2,270 primarily as a result of $2,708 in after tax gains from the Service Companies' sales of six land parcels in 2000, offset by approximately $400 in after-tax expenses related to third party assessment of business processes and related information technology initiatives. The Service Companies have made an investment of $300 in a computer software company which has developed software to assist in pricing rentals. This investment is carried at cost. The Service Company is in the process of implementing this software for a number of its managed properties. Income from partnerships increased to $4,516 from $2,845, or 58.7%. This increase was a result of the acquisition of eight stabilized communities containing a total of 3,266 units through eight new co- investment partnerships. In addition, ten new co-investment partnerships have invested in nine development communities and a second phase to an existing stabilized community, which have a total of 2,834 apartment homes that began rental operations in late 1999 and 2000. On the same community basis, total property revenues increased by $1,176 or 2.8% and net operating income increased by $1,041 or 4.0%. Other income increased to $4,256 from $4,005, or 6.3%. This increase is primarily due to $1,181 in incentive compensation in the form of a promoted interest received by the Company from the sale of AMLI at Pleasant Hill in 2000, reduced by lower development fees as the Company's development activities have moderated in Dallas and Kansas City. For the nine months ended September 30, 2000, the Company has included $161 of a $230 settlement from a legal action involving siding at two of its properties in other income. In 1999, other income includes a $281 gain on sale of a land parcel. Property operating expenses decreased by $940, or 2.8%. This decrease is principally due to the decrease in utilities expense described above. On the same community basis, property operating expenses increased by $239 or 0.8%. Interest expense, net of the amounts capitalized, increased to $18,243 from $16,762 or 8.8%, primarily due to increased indebtedness incurred in conjunction with investments in joint ventures which own stabilized properties, to increased short-term borrowing rates, and to payments on interest rate swap contracts associated with hedging an additional $75,000 of the Company's floating rate debt in 2000. General and administrative expenses decreased to $2,700 for the nine months ended September 30, 2000 from $3,219 for the nine months ended September 30, 1999. Bonuses for the nine months ended September 30, 2000 were $177 less than in the same period in 1999, primarily because of a special bonus award in 1999 following the sale of AMLI at Prairie Court. Costs attributable to abandoned projects that were written off and lower shareholder service expenses also contributed to the decrease. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2000, the Company had $1,520 in cash and cash equivalents and $73,500 in availability under its $250,000 unsecured line of credit. The Company is in the process of modifying and extending the maturity of this line of credit. At September 30, 2000, nineteen of the Company's wholly-owned stabilized communities were unencumbered. There are no fixed rate loans on wholly-owned communities with maturity dates prior to July 2003. Net cash flows provided by operating activities for the nine months ended September 30, 2000 decreased to $43,884 from $48,614 for the nine months ended September 30, 1999. The decrease is primarily due to an increase in notes receivable from an affiliate of a Service Company, additional escrow for infrastructure construction and advances to partnerships, offset in part by increased revenues from communities acquired and developed in 1999 and 2000. Cash flows used in investing activities for the nine months ended September 30, 2000 decreased to $40,850 from $59,491 for the nine months ended September 30, 1999. The decrease consisted primarily of net proceeds from the sales of rental communities offset in part by increased expenditures for acquisitions and development costs and increased investments in partnerships. Net cash flows used in financing activities for the nine months ended September 30, 2000 were $3,832, which reflect net proceeds of additional borrowings and dividend payments. Funds from operations ("FFO") is defined as net income (computed in accordance with GAAP), excluding extraordinary gains (losses) from debt restructuring and gains (losses) from sales of depreciable operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and other affiliates. Adjustments for unconsolidated partnerships, joint ventures and other affiliates are calculated to reflect FFO on the same basis. FFO does not represent cash flows from operations, as defined by GAAP; is not indicative that cash flows are adequate to fund all cash needs; and is not to be considered an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or the Company's cash flows or liquidity as defined by GAAP. FFO is widely accepted in measuring the performance of equity REITs. An understanding of the Company's FFO will enhance the reader's comprehension of the Company's results of operations and cash flows as presented in the financial statements and data included elsewhere herein. FFO for the nine months ended September 30, 2000 and 1999 is summarized as follows: September 30, ----------------------- 2000 1999 ------- ------- Net income before minority interest $67,617 29,534 Depreciation 14,630 13,709 Share of co-investment partner- ships' depreciation 5,698 3,613 Share of Service Company's goodwill amortization 311 311 Gains on sales of residential properties (37,274) -- ------- ------ FFO $50,982 47,167 ======= ====== Weighted average shares and units including dilutive shares 24,692 24,546 ======= ====== The Company expects to pay quarterly dividends from cash available for distribution. Until distributed, funds available for distribution will be invested in short-term investment-grade securities or used to temporarily reduce balances outstanding on the Company's revolving lines of credit. The Company intends to finance the majority of its future development activities by co-investing these developments with institutional partners. The Company expects to meet its short-term liquidity requirements by using its working capital and any portion of net cash flow from operations not distributed currently. The Company is of the opinion that its future net cash flows will be adequate to meet operating requirements in both the short and the long term and provide for payment of dividends by the Company in accordance with REIT requirements. The Company qualifies as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. A REIT will generally not be subject to Federal income taxation on that portion of its income that qualifies as REIT taxable income to the extent that it distributes at least 95% of its taxable income to its shareholders and complies with certain other requirements. In 1999, the Company distributed approximately 90% of its taxable income and will designate a portion of its dividends being paid during 2000 as a throw back dividend to 1999. The Company's current dividend payment level equals an annual rate of $1.88 per common share, increased on July 31, 2000 from an annual rate of $1.84 per common share. The Company anticipates that all dividends paid in 2000 will be fully taxable. The Company has recorded no deferred taxes on gains for financial reporting purposes that have been deferred for income tax reporting purposes because the Company intends to distribute to its shareholders any deferred tax gain upon ultimate realization for income tax reporting purposes. The Company expects to meet certain long-term liquidity requirements such as scheduled debt maturities, repayment of loans for construction, development, and acquisition activities through the issuance of long-term secured and unsecured debt and additional equity securities of the Company (or OP Units). Through September 30, 2000, the Company has issued preferred and common shares for an aggregate issuance price of $128,467 leaving a balance of $71,533 in shares that the Company may issue in the future under its shelf registration statement. COMPANY INDEBTEDNESS The Company's debt as of September 30, 2000 includes $166,456 (41.7% of the total) which is secured by first mortgages on eleven of the wholly- owned communities and is summarized as follows: SUMMARY DEBT TABLE ------------------ Type of Weighted Average Outstanding Percent Indebtedness Interest Rate Balance of Total - ------------ ---------------- ----------- -------- Fixed Rate Mortgages 7.6% $166,456 41.7% Tax-Exempt Tax-Exempt Rate + 1.23% 50,250 12.6% Bonds (1) Tax-Exempt Rate + 1.15% Lines of Credit (2) LIBOR + 1.05% 176,500 44.2% Notes payable to Service Companies Various 5,750 1.5% -------- ------ Total $398,956 100.0% ======== ====== - -------------------- (1) The tax-exempt bonds bear interest at a variable tax-exempt rate that is adjusted weekly based on the re-marketing of these bonds (4.39% for AMLI at Spring Creek and 4.44% for AMLI at Poplar Creek at October 26, 2000). The AMLI at Spring Creek bonds mature on October 1, 2024 and the related credit enhancement expires on October 15, 2002. The AMLI at Poplar Creek bonds mature on February 1, 2024 and the related credit enhancement expires on December 18, 2002. (2) Amounts borrowed under lines of credit are due in 2002. The interest rate on $150,000 has been fixed pursuant to interest rate swap contracts. DEVELOPMENT ACTIVITIES At September 30, 2000, the Company has made capital contributions totaling $161,953 to its existing co-investment partnerships and anticipates funding substantially all of its remaining commitment of $17,346 during 2000 to complete the 3,642 apartment homes being developed by co-investment partnerships. Currently 500 apartment homes in two wholly-owned communities are under development. At September 30, 2000, the Company expects to incur $13,197 in 2000 and 2001 to complete construction of these communities. The Company owns land for the development of an additional 5,655 apartment homes in Ft. Worth, Houston and Austin, Texas; Indianapolis, Indiana; Kansas City, Kansas, Atlanta, Georgia and Chicago, Illinois. The Company has earnest money deposits of $5,070 for eight land parcels anticipated to be acquired in 2000 or 2001 for development. CAPITAL EXPENDITURES Capital expenditures are those made for assets having a useful life in excess of one year and include replacements (including carpeting and appliances) and betterments, such as unit upgrades, enclosed parking facilities and similar items. In conjunction with acquisitions of existing properties, it is the Company's policy to provide in its acquisition budgets adequate funds to complete any deferred maintenance items and to otherwise make the properties acquired competitive with comparable newly-constructed properties. In some cases, the Company will provide in its acquisition budget additional funds to upgrade or otherwise improve new acquisitions. REHAB EXPENDITURES In September 1998, AMLI initiated its first community rehab since its initial public offering. Rehab is a capital improvement program involving significant repairs, replacements and improvements at an aggregate cost of at least the greater of $3 per apartment home or 5% of the value of the entire apartment community. All costs (except costs to routinely paint the interiors of units at turnover) associated with a rehab will be capitalized and depreciated over their policy lives. AMLI's larger properties were built in phases, and the rehabs of these larger properties are being done in phases. AMLI has no current plans to proceed with the rehab of additional phases. At September 30, 2000, four communities were under rehab and have incurred costs (primarily in 1999 and 2000) as follows: AMLI: at Riverbend $ 5,678 at Spring Creek 3,011 at North Dallas 2,842 at Valley Ranch 1,361 ------- $12,892 ======= The Company anticipates incurring approximately $3,200 (primarily during the fourth quarter) to complete the first phases currently under rehab. INFLATION Virtually all apartment leases at the wholly-owned communities and co- investment communities are for six or twelve months' duration. This enables the Company to pass along inflationary increases in its operating expenses on a timely basis. Because the Company's property operating expenses (exclusive of depreciation and amortization) average approximately 38.6% of rental and other property revenue, increased inflation typically results in comparable increases in income before interest and general and administrative expenses, so long as rental market conditions allow increases in rental rates while maintaining stable occupancy. An increase in general price levels may immediately precede, or accompany, an increase in interest rates. The Company's exposure (including the Company's proportionate share of its co-investment partnerships' expense) to rising interest rates is mitigated by the existing debt level of approximately 40% of the Company's total market capitalization at September 30, 2000 (48% including the Company's share of co-investment partnerships' debt), the high percentage of intermediate term fixed rate debt (42% of total debt), and the use of interest rate swaps to effectively fix the interest rate on $75 million of floating rate debt through May 2001, $20 million through November 2002, $30 million through February 2003, $15 million through September 2004 and $10 million through October 2004 (37.6% of total debt). As a result, for the foreseeable future, increases in interest expense resulting from increasing inflation are anticipated to be less than future increases in income before interest and general and administrative expenses. OTHER MATTERS Statement of Financial Accounting Standards No. 133 "Accounting for Derivative Instruments and Hedging Activities," as clarified by Statement of Financial Accounting Standards No. 138 on the same subject, became effective for all fiscal quarters for fiscal years beginning after June 15, 2000. Among other things, the new statement requires that the values of the derivative contracts be included as assets or liabilities in the balance sheet, that changes in the values of these contracts be included in comprehensive income, and that any portion of such change in values which is not an effective hedge be included in net income. Statement No. 133 is not expected to have a material impact on the Company's financial statements. "Accounting for Certain Transactions involving Stock Compensation," an interpretation of APB No. 25, became effective July 1, 2000 and is not currently expected to have a material impact on the Company's financial statements. The Service Companies recorded a pre-tax charge against earnings of $42,000 for the three months ended September 30, 2000 as a result of implementing this statement. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Certain statements set forth herein or incorporated by reference herein from the Company's filings under the Securities Exchange Act of 1934, as amended, contain forward-looking statements, including, without limitation, statements relating to the timing and anticipated capital expenditures of the Company's development programs. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the actual results may differ materially from that set forth in the forward-looking statements. Certain factors that might cause such differences include general economic conditions, local real estate conditions, construction delays due to the unavailability of construction materials, weather conditions or other delays beyond the control of the Company. Consequently, such forward- looking statements should be regarded solely as reflections of the Company's current operating and development plans and estimates. These plans and estimates are subject to revision from time to time as additional information becomes available, and actual results may differ from those indicated in the referenced statements. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK As disclosed in ITEM 2, the Company has in 2000 been limited in its ability to raise rents and increase occupancies at many of its wholly-owned properties because of relative weak demand (in Dallas, Indianapolis and Kansas City in particular) and because of the rehabs in process at its three largest properties. With the conclusion of the rehab program early in 2001, the Company anticipates bringing occupancies of its rehab properties back up to a more normal level. The Company is of the opinion that an existing slow down in the rate of new construction in Dallas, Indianapolis and Kansas City will soon permit the Company to again raise rents at least at the rate of inflation. Since December 31, 1999, there have been no significant changes in the Company's exposure to interest rate changes or other market risks. OCCUPANCY The following is a listing of approximate physical occupancy levels by quarter for the Company's Wholly-Owned Communities and Co-Investment Communities:
2000 1999 LOCATION/COMMUNITY COMPANY'S NUMBER ---------------------------------------------------- - ------------------ PERCENTAGE OF AT AT AT AT AT AT AT AT WHOLLY-OWNED COMMUNITIES OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 - ------------------------ ---------- ------- ----- ----- ----- ------ ----- ----------- ------ DALLAS/FT. WORTH, TEXAS AMLI: at AutumnChase . . . . . . 690 93% 91% 88% 92% 91% 91% 91% at Bent Tree . . . . . . . 300 91% 97% 95% 92% 92% 93% 93% at Bishop's Gate . . . . . 266 93% 92% 91% 93% 96% 93% 94% at Chase Oaks. . . . . . . 250 94% 93% 95% 97% 93% 92% 92% at Gleneagles. . . . . . . 590 95% 95% 92% 94% 95% 95% 94% on the Green . . . . . . . 424 92% 97% 95% 94% 95% 94% 93% at Nantucket . . . . . . . 312 95% 97% 94% 97% 95% 95% 94% of North Dallas. . . . . . 1,032 93% 90% 90% 90% 91% 90% 92% on Rosemeade . . . . . . . 236 95% 95% 96% 95% 97% 95% 95% at Valley Ranch. . . . . . 460 97% 95% 97% 95% 96% 96% 91% ------ ----- ----- ----- ----- ----- ----- ----- ----- 4,560 94% 93% 92% 93% 93% 93% 93% ------ ----- ----- ----- ----- ----- ----- ----- ----- AUSTIN, TEXAS AMLI: at the Arboretum . . . . . 231 98% 94% 95% 96% 91% 96% 97% in Great Hills . . . . . . 344 95% 97% 97% 97% 94% 97% 93% at Lantana Ridge . . . . . 354 97% 93% 94% 94% 97% 92% 92% at Martha's Vineyard . . . 360 94% 97% 98% 96% 96% 98% 96% at StoneHollow . . . . . . 606 97% 97% 98% N/A N/A N/A N/A ------ ----- ----- ----- ----- ----- ----- ----- ----- 1,895 96% 96% 97% 96% 95% 96% 94% ------ ----- ----- ----- ----- ----- ----- ----- ----- ATLANTA, GEORGIA AMLI: at Clairmont. . . . . . . . 288 93% 96% 97% 96% 96% 95% 94% lease lease at Killian Creek. . . . . . 256 95% 96% 97% 98% 96% up up at Park Creek . . . . . . . 200 95% 91% 95% 88% 90% 95% 88% at Peachtree City . . . . . N/A N/A N/A 94% 94% 93% 97% 94% at Sope Creek . . . . . . . N/A N/A N/A N/A 96% 95% 92% 93% on Spring Creek . . . . . . 1,180 90% 92% 90% 92% 93% 91% 91% at Vinings. . . . . . . . . 360 96% 95% 89% 94% 92% 96% 96% at West Paces . . . . . . . 337 90% 95% 92% 91% 94% 95% 94% at Towne Creek. . . . . . . 150 93% 93% 93% N/A N/A N/A N/A ------ ----- ----- ----- ----- ----- ----- ----- ----- 2,771 92% 93% 92% 94% 94% 93% 93% ------ ----- ----- ----- ----- ----- ----- ----- ----- 2000 1999 COMPANY'S NUMBER ---------------------------------------------------- PERCENTAGE OF AT AT AT AT AT AT AT AT LOCATION/COMMUNITY OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 - ------------------ ---------- ------- ----- ----- ----- ------ ----- ----------- ------ EASTERN KANSAS AMLI: at Alvamar . . . . . . . . 152 92% 92% 86% 86% 99% 95% 93% at Centennial Park . . . . 170 81% 89% 84% 85% 92% 94% 89% at Crown Colony. . . . . . N/A N/A N/A N/A N/A 87% 92% 91% at Lexington Farms . . . . 404 87% 90% 91% 84% 89% 94% 91% at Regents Center. . . . . 424 87% 89% 92% 89% 94% 97% 97% at Sherwood. . . . . . . . N/A N/A N/A N/A N/A 93% 92% 91% at Town Center . . . . . . 156 87% 87% 83% 83% 88% 92% 96% ------ ----- ----- ----- ----- ----- ----- ----- ----- 1,306 87% 89% 89% 86% 92% 94% 93% ------ ----- ----- ----- ----- ----- ----- ----- ----- INDIANAPOLIS, INDIANA AMLI: at Conner Farms. . . . . . 300 93% 94% 94% 95% 94% 95% 96% at Eagle Creek . . . . . . 240 93% 93% 94% 91% 91% 91% 94% at Riverbend . . . . . . . 996 89% 84% 79% 77% 79% 91% 87% ------ ----- ----- ----- ----- ----- ----- ----- ----- 1,536 90% 87% 84% 83% 84% 92% 90% ------ ----- ----- ----- ----- ----- ----- ----- ----- CHICAGO, ILLINOIS AMLI: at Park Sheridan . . . . . N/A N/A N/A N/A N/A 96% 96% 93% at Poplar Creek. . . . . . 196 96% 93% 99% 92% 93% 96% 90% ------ ----- ----- ----- ----- ----- ----- ----- ----- 196 96% 93% 99% 92% 94% 96% 92% ------ ----- ----- ----- ----- ----- ----- ----- ----- 12,264 92.5% 92.5% 91.7% 91.5% 92.2% 93.3% 92.4% ====== ===== ===== ===== ===== ===== ===== ===== ===== CO-INVESTMENT COMMUNITIES: - -------------------------- ATLANTA, GA AMLI: at Barrett Lakes . . . . . 35% 446 96% 95% 96% 95% 95% 94% 94% lease lease lease at Northwinds. . . . . . . 35% 800 94% 96% 96% 93% up up up at Pleasant Hill . . . . . N/A N/A N/A 97% 97% 98% 95% 93% 90% at River Park. . . . . . . 40% 222 98% 98% 93% 96% 95% 95% 93% at Towne Creek . . . . . . N/A N/A N/A N/A N/A 95% 96% 96% 86% at Willeo Creek. . . . . . 30% 242 96% 92% 95% 93% 96% 99% 91% at Windward Park . . . . . 45% 328 93% 93% 93% 95% 95% N/A N/A at Peachtree City. . . . . 20% 312 96% 92% N/A N/A N/A N/A N/A ------ ----- ----- ----- ----- ----- ----- ----- ----- 2,350 95% 95% 95% 95% 95% 95% 91% ------ ----- ----- ----- ----- ----- ----- ----- ----- 2000 1999 COMPANY'S NUMBER ---------------------------------------------------- PERCENTAGE OF AT AT AT AT AT AT AT AT LOCATION/COMMUNITY OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 - ------------------ ---------- ------- ----- ----- ----- ------ ----- ----------- ------ CHICAGO, IL AMLI: at Chevy Chase . . . . . . 33% 592 97% 95% 97% 92% 96% 97% 96% at Danada Farms. . . . . . 10% 600 95% 95% 93% 96% 93% 94% 96% at Fox Valley. . . . . . . 25% 272 95% 97% 92% 91% 88% 92% 94% at Prairie Court . . . . . N/A N/A N/A N/A N/A N/A N/A 97% 95% at Willowbrook . . . . . . 40% 488 95% 96% 90% 90% 91% 96% 95% at Windbrooke. . . . . . . 15% 236 98% 95% 98% 99% 98% 97% 99% lease lease lease lease lease at Oakhurst North. . . . . 25% 464 91% 94% up up up up up ------- ----- ----- ----- ----- ----- ----- ----- ----- 2,652 95% 95% 94% 93% 93% 96% 96% ------- ----- ----- ----- ----- ----- ----- ----- ----- INDIANAPOLIS, IN AMLI: on Spring Mill . . . . . . 20% lease lease lease lease residual 400 85% 91% up up up up N/A lease lease lease lease lease at Lake Clearwater . . . . 25% 216 96% up up up up up N/A ------- ----- ----- ----- ----- ----- ----- ----- ----- 616 89% 91% 0% 0% 0% 0% 0% ------- ----- ----- ----- ----- ----- ----- ----- ----- EASTERN KANSAS AMLI: at Regents Crest . . . . . 25% 368 86% 87% 86% 87% 92% 93% 93% ------- ----- ----- ----- ----- ----- ----- ----- ----- DALLAS, TX AMLI: lease lease lease at Deerfield . . . . . . . 25% 240 92% 82% 93% 98% up up up at Fossil Creek. . . . . . 25% 384 92% 97% 94% 95% 95% 96% 91% at Oak Bend. . . . . . . . 40% 426 94% 92% 90% 93% N/A N/A N/A on the Parkway . . . . . . 25% 240 92% 94% 95% 93% 89% 92% 95% at Prestonwood Hills . . . 45% 272 95% 92% 93% 92% 93% N/A N/A on Timberglen. . . . . . . 40% 260 96% 96% 94% 94% 97% 95% 92% at Verandah. . . . . . . . 35% 538 93% 95% 95% 97% 95% 93% 95% on Frankford . . . . . . . 45% 582 94% 90% N/A N/A N/A N/A N/A at Breckinridge Point. . . 45% 440 91% N/A N/A N/A N/A N/A N/A ------- ----- ----- ----- ----- ----- ----- ----- ----- 3,382 93% 92% 93% 95% 94% 94% 94% ------- ----- ----- ----- ----- ----- ----- ----- ----- 2000 1999 COMPANY'S NUMBER ---------------------------------------------------- PERCENTAGE OF AT AT AT AT AT AT AT AT LOCATION/COMMUNITY OWNERSHIP UNITS 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 - ------------------ ---------- ------- ----- ----- ----- ------ ----- ----------- ------ AUSTIN, TX AMLI: at Park Place. . . . . . . N/A N/A N/A N/A N/A N/A 95% 96% 96% lease at Wells Branch. . . . . . 25% 576 94% 93% 94% 92% 93% 89% up at Scofield Ridge. . . . . 45% 487 93% N/A N/A N/A N/A N/A N/A ------- ----- ----- ----- ----- ----- ----- ----- ----- 1,063 93% 93% 94% 92% 94% 92% 96% ------- ----- ----- ----- ----- ----- ----- ----- ----- HOUSTON, TX AMLI: at Champions Centre. . . . 15% 192 94% 93% 94% 93% 93% 92% 92% at Champions Park. . . . . 15% 246 87% 93% 96% 94% 91% 95% 85% at Greenwood Forest. . . . 15% 316 92% 96% 94% 95% 92% 96% 93% Midtown. . . . . . . . . . 45% 419 97% 96% 94% N/A N/A N/A N/A ------- ----- ----- ----- ----- ----- ----- ----- ----- 1,173 93% 95% 94% 94% 92% 94% 90% ------- ----- ----- ----- ----- ----- ----- ----- ----- Total Co-Investment Communities . . . . . . . . 11,604 93.5% 93.8% 93.9% 93.8% 93.8% 94.4% 93.6% ------- ----- ----- ----- ----- ----- ----- ----- ----- TOTAL . . . . . . . . . . . . 23,868 93.0% 93.1% 92.6% 92.4% 92.8% 93.7% 92.8% ======= ===== ===== ===== ===== ===== ===== ===== =====
PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K No reports on Form 8-K have been filed during the quarter ended September 30, 2000. The Exhibits filed as part of this report are listed below. EXHIBIT NO. DOCUMENT DESCRIPTION 27. Financial Data Schedule 99. Financial and Operating Data furnished to Shareholders and Analysts SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AMLI RESIDENTIAL PROPERTIES TRUST Date: November 13, 2000 By: /s/ CHARLES C. KRAFT ----------------------------------- Charles C. Kraft Principal Accounting Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Date: November 13, 2000 By: /s/ GREGORY T. MUTZ ----------------------------------- Gregory T. Mutz Chairman of the Board of Trustees Date: November 13, 2000 By: /s/ ALLAN J. SWEET ----------------------------------- Allan J. Sweet President and Trustee Date: November 13, 2000 By: /s/ ROBERT J. CHAPMAN ----------------------------------- Robert J. Chapman Principal Financial Officer Date: November 13, 2000 By: /s/ CHARLES C. KRAFT ----------------------------------- Charles C. Kraft Principal Accounting Officer EX-27 2 0002.txt
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE REGISTRANT'S FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS INCLUDED IN SUCH REPORT. 9-MOS DEC-31-2000 SEP-30-2000 1,520 0 0 0 0 0 757,288 95,587 868,740 0 398,956 0 35 178 391,881 868,740 0 99,057 0 68,714 0 0 18,243 57,264 0 57,264 0 0 0 57,264 3.02 2.70
EX-99 3 0003.txt EXHIBIT 99 - ---------- AMLI RESIDENTIAL PROPERTIES TRUST FINANCIAL AND OPERATING DATA September 30, 2000 1. Funds from Operations 2. Statements of Operations 3. Balance Sheets 4. Selected Financial Information 5. Debt 6. Debt Maturities 7. Same Community Comparison - Wholly-Owned - three months ended September 30, 2000 and 1999 8. Same Community Comparison - Wholly-Owned and Co-Investments - three months ended September 30, 2000 and 1999 9. Property Information 10. Property EBITDA - three months ended September 30, 2000 11. Development Activities AMLI RESIDENTIAL PROPERTIES TRUST FUNDS FROM OPERATIONS Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ---------- REVENUES - -------- Property revenues: Rental. . . . . . . . . . . . . . . . . . . . . $ 26,831 27,928 79,880 81,904 Other . . . . . . . . . . . . . . . . . . . . . 1,823 1,813 5,018 5,139 -------- -------- -------- -------- Total Property Revenues . . . . . . . . . 28,654 29,741 84,898 87,043 -------- -------- -------- -------- Property operating expenses . . . . . . . . . . . (10,555) (10,941) (30,681) (31,564) Property management fees. . . . . . . . . . . . . (714) (743) (2,120) (2,177) -------- -------- -------- -------- Property expenses . . . . . . . . . . . . (11,269) (11,684) (32,801) (33,741) Operating expense ratio . . . . . . . . . . . . . 39.3% 39.3% 38.6% 38.8% -------- -------- -------- -------- Net operating income. . . . . . . . . . . 17,385 18,057 52,097 53,302 -------- -------- -------- -------- OTHER INCOME - ------------ Share of Service Cos. FFO (1)(2). . . . . . . . (428) (422) 1,194 (641) Interest from Service Companies (3) . . . . . . 1,103 1,120 3,514 3,222 Other interest. . . . . . . . . . . . . . . . . 381 410 990 1,102 Share of partnerships FFO (4) . . . . . . . . . 4,129 2,409 10,214 6,458 Fee income - acquisitions, dispositions and financing . . . . . . . . . . . . . . . . . . 645 503 1,120 503 Fee income - developments . . . . . . . . . . . 398 749 1,353 2,228 Fee income - asset management . . . . . . . . . 145 151 441 453 Fee income - promote. . . . . . . . . . . . . . 1,181 529 1,181 529 Other . . . . . . . . . . . . . . . . . . . . . 161 2 161 292 -------- -------- -------- -------- Total other income. . . . . . . . . . . . 7,715 5,451 20,168 14,146 General and administrative. . . . . . . . . . . . (842) (1,225) (2,700) (3,219) -------- -------- -------- -------- EBITDA. . . . . . . . . . . . . . . . . . . . . . 24,258 22,283 69,565 64,229 -------- -------- -------- -------- Interest expense. . . . . . . . . . . . . . . . . (6,353) (5,821) (18,243) (16,762) Amortization of deferred costs. . . . . . . . . . (101) (92) (340) (300) -------- -------- -------- -------- FUNDS FROM OPERATIONS (FFO) . . . . . . . . . . . $ 17,804 16,370 50,982 47,167 ======== ======== ======== ======== AMLI RESIDENTIAL PROPERTIES TRUST FUNDS FROM OPERATIONS - CONTINUED Unaudited - Dollars in thousands except per share data THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ---------- Capital expenditures paid from FFO (5). . . . . . (1,717) (1,043) (3,700) (3,349) Other - share of Co-investments Cap yexp. . . . . . . . . . . . . . . . . . . . . . . (240) (96) (488) (312) -------- -------- -------- -------- Funds available for distribution (FAD). . . . . . $ 15,847 15,231 46,794 43,506 ======== ======== ======== ======== FFO per share . . . . . . . . . . . . . . . . . . $ 0.72 0.67 2.07 1.92 FAD per share . . . . . . . . . . . . . . . . . . $ 0.64 0.62 1.90 1.77 Dividend per share. . . . . . . . . . . . . . . . $ 0.47 0.46 1.40 1.36 Dividend as a % of FFO. . . . . . . . . . . . . . 65.5% 69.1% 67.8% 70.8% Dividend as a % of FAD. . . . . . . . . . . . . . 73.5% 74.3% 73.7% 76.8% ======== ======== ======== ======== NOTES: (1) Reflects share of income before goodwill amortization of $311 in each of the nine months ended September 2000 and 1999. (2) Includes $2,708 of after tax gains on sales of non-residential land by a Service Company subsidiary for the nine months ended September 30, 2000. (3) Interest on 13% notes receivable and working capital advances. (4) Reflects share of income before share of depreciation of $5,698 and $3,613 for the nine months ended September, 2000 and 1999, respectively. (5) Rehab costs of approximately $5,641 and $4,519 for the nine months ended September 30, 2000 and 1999, respectively, are not reflected in cap ex paid from FFO.
AMLI RESIDENTIAL PROPERTIES TRUST STATEMENT OF OPERATIONS Unaudited - Dollars in thousands except per share data
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ---------- REVENUES - -------- Property revenues: Rental. . . . . . . . . . . . . . . . . . . . . $ 26,831 27,928 79,880 81,904 Other . . . . . . . . . . . . . . . . . . . . . 1,823 1,813 5,018 5,139 Interest and share of income (loss) from Service Cos. . . . . . . . . . . . . . . . 571 594 4,397 2,270 Other interest. . . . . . . . . . . . . . . . . . 381 410 990 1,102 Share of income from co-investment partnerships . 1,999 1,172 4,516 2,845 Fees from co-investment partnerships & other. . . 2,530 1,934 4,256 4,005 -------- -------- -------- -------- Total revenues. . . . . . . . . . . . . . 34,135 33,851 99,057 97,265 -------- -------- -------- -------- EXPENSES - -------- Personnel . . . . . . . . . . . . . . . . . . . . 2,773 2,806 8,322 8,149 Advertising and promotion . . . . . . . . . . . . 667 714 1,759 1,984 Utilities . . . . . . . . . . . . . . . . . . . . 975 1,110 2,474 3,038 Building repairs and maintenance. . . . . . . . . 1,548 1,656 4,378 4,500 Landscaping and grounds maintenance . . . . . . . 617 639 1,833 1,898 Real estate taxes . . . . . . . . . . . . . . . . 3,391 3,492 10,218 10,420 Insurance . . . . . . . . . . . . . . . . . . . . 211 198 669 619 Other operating expenses. . . . . . . . . . . . . 373 326 1,028 956 Property management fees. . . . . . . . . . . . . 714 743 2,120 2,177 Interest, net of capitalized. . . . . . . . . . . 6,353 5,821 18,243 16,762 Amortization of deferred costs. . . . . . . . . . 101 92 340 300 Depreciation of real property . . . . . . . . . . 3,284 3,225 10,336 10,038 Depreciation of personal property . . . . . . . . 1,354 1,300 4,294 3,671 General and administrative. . . . . . . . . . . . 842 1,225 2,700 3,219 -------- -------- -------- -------- Total expenses. . . . . . . . . . . . . . 23,203 23,347 68,714 67,731 -------- -------- -------- -------- AMLI RESIDENTIAL PROPERTIES TRUST STATEMENT OF OPERATIONS - CONTINUED Unaudited - Dollars in thousands except per share data THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ---------- Non-recurring item - gains on sale of properties (1). . . . . . . . . . . . . . . . . 6,807 -- 37,274 -- -------- -------- -------- -------- Income before taxes, minority interest and extraordinary item. . . . . . . . . . . . . 17,739 10,504 67,617 29,534 Minority interest . . . . . . . . . . . . . . . . 2,497 1,514 10,353 4,175 -------- -------- -------- -------- Income before extraordinary items . . . . . . . . 15,242 8,990 57,264 25,359 Extraordinary items, net of minority interest . . -- -- -- -- -------- -------- -------- -------- Net income. . . . . . . . . . . . . . . . . . . . $ 15,242 8,990 57,264 25,359 Net income allocable to preferred shares. . . . . 1,766 1,789 5,424 5,451 -------- -------- -------- -------- Net income allocable to common shares . . . . . . $ 13,476 7,201 51,840 19,908 ======== ======== ======== ======== INCOME PER COMMON SHARE: - ----------------------- Before extraordinary items. . . . . . . . . . . . $ 0.77 0.42 3.02 1.18 Extraordinary item. . . . . . . . . . . . . . . . $ 0.00 0.00 0.00 0.00 Income per common share . . . . . . . . . . . . . $ 0.77 0.42 3.02 1.18 Income per common share - diluted . . . . . . . . $ 0.71 0.42 2.70 1.17 ======== ======== ======== ======== FUNDS FROM OPERATIONS - --------------------- Income before taxes, minority interest and extraordinary item. . . . . . . . . . . . . . . $ 17,739 10,504 67,617 29,534 -------- -------- -------- -------- Depreciation of real property . . . . . . . . . . 3,284 3,225 10,336 10,038 Depreciation of personal property . . . . . . . . 1,354 1,300 4,294 3,671 Non-recurring item - gains on sale of properties. (6,807) -- (37,274) -- Share of Co-investments depreciation. . . . . . . 2,130 1,237 5,698 3,613 Share of Service Company amortization of goodwill. . . . . . . . . . . . . . . . . . . . 104 104 311 311 -------- -------- -------- -------- Funds from operations (FFO) . . . . . . . . . . . $ 17,804 16,370 50,982 47,167 FFO per share . . . . . . . . . . . . . . . . . . $ 0.72 0.67 2.07 1.92 ======== ======== ======== ======== AMLI RESIDENTIAL PROPERTIES TRUST STATEMENT OF OPERATIONS - CONTINUED Unaudited - Dollars in thousands except per share data THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 -------------------------- -------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ---------- Capital expenditures paid from FFO. . . . . . . . (1,717) (1,043) (3,700) (3,349) Other - Share Co-investments Cap exp. . . . . . . (240) (96) (488) (312) -------- -------- -------- -------- Funds available for distribution (FAD). . . . . . $ 15,847 15,231 46,794 43,506 FAD per share . . . . . . . . . . . . . . . . . . $ 0.64 0.62 1.90 1.77 -------- -------- -------- -------- Dividends per share . . . . . . . . . . . . . . . $ 0.47 0.46 1.40 1.36 ======== ======== ======== ======== Dividends as a % of FFO . . . . . . . . . . . . . 65.5% 69.1% 67.8% 70.8% Dividends as a % of FAD . . . . . . . . . . . . . 73.5% 74.3% 73.7% 76.8% ======== ======== ======== ======== (1) 2000 includes gain on sale of Sope Creek of $22,316, gain on sale of 80% interest in Peachtree City of $8,151 and share of gain on sale of Pleasant Hill of $6,807.
AMLI RESIDENTIAL PROPERTIES TRUST CONDENSED BALANCE SHEETS Unaudited - Dollars in thousands except per share data
SEPT. 30, DEC. 31, 2000 1999 -------- -------- ASSETS - ------ Rental apartments Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,442 87,903 Depreciable property. . . . . . . . . . . . . . . . . . . . . 597,101 566,509 -------- -------- 687,543 654,412 Less accumulated depreciation . . . . . . . . . . . . . . . . (95,587) (82,626) -------- -------- 591,956 571,786 Rental apartments held for sale, net of accumulated depreciation -- 19,784 Properties under development (1). . . . . . . . . . . . . . . . 69,745 47,314 Investments in partnerships . . . . . . . . . . . . . . . . . . 146,926 107,518 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . 1,520 2,318 Security deposits . . . . . . . . . . . . . . . . . . . . . . . 1,491 1,541 Deferred costs, net . . . . . . . . . . . . . . . . . . . . . . 3,093 3,377 Notes receivable and advances to Service Companies. . . . . . . 36,336 35,717 Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . 17,673 15,263 -------- -------- Total assets. . . . . . . . . . . . . . . . . . . . . . $868,740 804,618 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $398,956 369,541 Accrued interest payable. . . . . . . . . . . . . . . . . . . . 1,759 1,743 Accrued real estate taxes . . . . . . . . . . . . . . . . . . . 10,860 9,999 Construction costs payable. . . . . . . . . . . . . . . . . . . 2,133 2,068 Security deposits and prepaid rents . . . . . . . . . . . . . . 2,538 2,807 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . 3,270 3,606 -------- -------- Total liabilities . . . . . . . . . . . . . . . . . . . $419,516 389,764 -------- -------- AMLI RESIDENTIAL PROPERTIES TRUST CONDENSED BALANCE SHEETS - CONTINUED Unaudited - Dollars in thousands except per share data SEPT. 30, DEC. 31, 2000 1999 -------- -------- Minority interest . . . . . . . . . . . . . . . . . . . . . . . $ 58,130 57,813 -------- -------- Shareholders' equity Preferred shares, $.01 par value. . . . . . . . . . . . . . . 35 40 Shares of beneficial interest, $.01 par value . . . . . . . . 178 170 Additional paid-in capital. . . . . . . . . . . . . . . . . . 427,541 421,989 Employees and trustees notes. . . . . . . . . . . . . . . . . (11,423) (12,000) Retained earnings . . . . . . . . . . . . . . . . . . . . . . 157,598 100,334 Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . (182,835) (153,492) -------- -------- Total shareholders' equity. . . . . . . . . . . . . . . 391,094 357,041 -------- -------- Total liabilities and shareholders' equity. . . . . . . $868,740 804,618 ======== ======== (1) Includes $49,842 and $37,163 of land parcels that are in development planning stage at September 30, 2000 and December 31, 1999, respectively.
AMLI RESIDENTIAL PROPERTIES TRUST SELECTED QUARTERLY FINANCIAL INFORMATION September 30, 2000 (dollars in thousands except for share data)
Quarter Ending -------------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2000 2000 2000 1999 1999 1999 1999 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Debt $ 398,956 393,168 398,867 369,541 410,177 382,320 380,475 Debt including share of Co-invest- ment debt $ 542,778 520,597 510,230 468,609 502,770 458,682 454,348 Total Shares and Units Outstanding (1) 24,552,642 24,544,475 24,544,475 24,538,654 24,529,449 24,524,849 24,464,805 Value per Common Share - end of quarter $ 24.00 23.5625 20.50 20.1875 21.00 22.375 20.625 Total Equity (Market Value) - end of quarter $ 589,263 578,329 503,162 495,374 515,118 548,743 504,587 Market Capitaliza- tion $ 988,219 971,497 902,029 864,915 925,295 931,063 885,062 Market Capitaliza- tion including share of Co- investment debt $1,132,041 1,098,926 1,013,392 963,983 1,017,888 1,007,425 958,935 Market Capitaliza- tion including Co-investment at completed cost $1,905,589 1,826,661 1,678,237 1,610,307 1,679,212 1,554,018 1,431,730 ========== ========== ========== ========== ========== ========== ========== AMLI RESIDENTIAL PROPERTIES TRUST SELECTED QUARTERLY FINANCIAL INFORMATION - CONTINUED September 30, 2000 (dollars in thousands except for share data) Quarter Ending -------------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2000 2000 2000 1999 1999 1999 1999 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Revenues (2)$ 34,135 34,097 30,825 31,843 33,851 32,961 30,453 EBITDA (3) $ 24,258 24,156 21,151 21,961 22,283 22,044 19,902 FFO $ 17,804 17,787 15,391 16,412 16,370 16,322 14,475 FAD $ 15,847 16,442 14,505 15,275 15,232 14,857 13,418 Dividends Paid $ 11,537 11,290 11,290 11,287 11,038 11,011 11,004 Debt service (net of capitalized interest) $ 7,065 6,947 6,316 6,075 6,497 6,280 5,995 Interest Expense $ 6,353 6,248 5,642 5,439 5,821 5,625 5,316 G & A Expense $ 842 930 928 823 1,225 948 1,046 Total Shares and Units Outstanding - Wtd. Avg. 24,546,254 24,544,475 24,541,971 24,534,912 24,527,610 24,467,931 24,455,709 ========== ========== ========== ========== ========== ========== ========== AMLI RESIDENTIAL PROPERTIES TRUST SELECTED QUARTERLY FINANCIAL INFORMATION - CONTINUED September 30, 2000 (dollars in thousands except for share data) Quarter Ending -------------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2000 2000 2000 1999 1999 1999 1999 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest Coverage Ratio 3.82 3.87 3.75 4.04 3.83 3.92 3.74 Debt as % of Total Market Capitalization 40.37% 40.47% 44.22% 42.73% 44.33% 41.06% 42.99% Debt (incl. Share of Co-investment debt) as % of Total Market Cap 47.95% 47.37% 50.35% 48.61% 49.39% 45.53% 47.38% EBITDA as % of Total Market Capitalization 9.82% 9.95% 9.38% 10.16% 9.63% 9.47% 8.99% FFO as % of Total Market Equity 12.09% 12.30% 12.24% 13.25% 12.71% 11.90% 11.47% G&A as % of Total Market Capitalization 0.34% 0.38% 0.41% 0.38% 0.53% 0.41% 0.47% G&A as % of Total Revenues 2.47% 2.73% 3.01% 2.58% 3.62% 2.88% 3.43% Dividends as % of FFO (4) 65.5% 65.2% 73.5% 68.9% 69.1% 67.7% 76.2% Dividends as % of FAD (4) 73.5% 70.6% 78.0% 74.0% 74.3% 74.3% 82.2% ========== ========== ========== ========== ========== ========== ========== AMLI RESIDENTIAL PROPERTIES TRUST SELECTED QUARTERLY FINANCIAL INFORMATION - CONTINUED September 30, 2000 (dollars in thousands except for share data) Quarter Ending -------------------------------------------------------------------------------- Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 2000 2000 2000 1999 1999 1999 1999 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Apartment Units - In Operation Wholly Owned 12,264 12,264 12,576 12,515 13,288 13,032 13,032 Co-investments 11,604 10,963 9,205 8,936 8,058 7,583 7,007 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 23,868 23,227 21,781 21,451 21,346 20,615 20,039 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Apartment Units - Under Development or in lease up Wholly Owned 500 500 200 200 200 416 1,246 Co-investments 3,642 3,234 4,098 4,098 5,138 4,306 3,136 ---------- ---------- ---------- ---------- ---------- ---------- ---------- 4,142 3,734 4,298 4,298 5,338 4,722 4,382 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total Units 28,010 26,961 26,079 25,749 26,684 25,337 24,421 ========== ========== ========== ========== ========== ========== ========== (1) At September 30, 2000, the total includes 3,475,000 preferred shares convertible to common shares. (2) Excluding gains on sales of completed rental properties. (3) Includes other income, net of G & A expenses. (4) Based on per share amounts.
AMLI RESIDENTIAL PROPERTIES TRUST PORTFOLIO INDEBTEDNESS SUMMARY September 30, 2000 (Dollars in thousands)
Weighted Avg. Percent of Interest Years to Type of Indebtedness Balance Total Interest Rate Maturity - -------------------- -------- ----------- ---------- --------- ---------- Conventional Fixed Rate $166,456 41.7% Fixed 7.63% 6.4 Tax-exempt Variable Rate (1) 50,250 12.6% Variable 6.79% 2.1 Credit Facilities (2) 176,500 44.2% Variable 7.87% 2.0 Service Companies 5,750 1.5% Fixed 9.22% 2.0 -------- ------ ----- --- Total $398,956 100.0% 7.65% 3.9 ======== ====== ===== === Weighted Balance including Avg. share of Co- Percent of Interest Years to Type of Indebtedness investment debt(3) Total Interest Rate Maturity - -------------------- ----------------- ----------- ---------- --------- ---------- Conventional Fixed Rate $310,278 57.2% Fixed 7.58% 6.8 Tax-exempt Variable Rate (1) 50,250 9.2% Variable 6.79% 2.1 Credit Facilities (2) 176,500 32.5% Variable 7.87% 2.0 Service Companies 5,750 1.1% Fixed 9.22% 2.0 -------- ------ ----- --- Total $542,778 100.0% 7.64% 4.7 ======== ====== ===== === (1) Maturity Date shown is expiration date of Credit Enhancement. Bonds mature in 2024. (2) $150,000 has been swapped to a fixed rate ($20,000 maturing in November 2002, $30,000 maturing in February 2003, $25,000 maturing in September 2004 and $75,000 maturing in May 2001.) Effective interest rate includes swap costs. (3) Co-Investment debt represents Amli Residential's pro rata share of debt. Interest rate and maturity reflect average numbers based on Amli's pro rata share. (4) Weighted average interest rate reflects rate in effect of the last day of the quarter.
AMLI RESIDENTIAL PROPERTIES TRUST DEBT MATURITIES SEPTEMBER 30, 2000 Unaudited - dollars in thousands
There- % to 2000 2001 2002 2003 2004 after Total Total -------- -------- -------- -------- -------- -------- -------- ------- Fixed Rate Mortgages $ 725 3,039 3,273 60,117 8,933 90,369 166,456 41.7% Tax Exempt Bonds* 50,250 50,250 12.6% Wachovia/First Chicago Line of Credit** 176,500 176,500 44.2% Other 750 5,000 5,750 1.5% -------- -------- -------- -------- -------- -------- -------- ------- Total Loans $ 1,475 3,039 230,023 65,117 8,933 90,369 398,956 100.0% ======== ======== ======== ======== ======== ======== ======== ======= Percent to Total 0.4% 0.8% 57.7% 16.3% 2.2% 22.6% 100.0% 73.5% ======== ======== ======== ======== ======== ======== ======== ======= SHARE OF CO-INVESTMENT DEBT - --------------------------- Nationwide Life Ins. - Greenwood Forest (15%) 5 20 1,679 0 0 0 1,704 1.2% Lincoln National Ins. - Champions Park (15%) 6 24 1,259 0 0 0 1,289 0.9% Prudential Ins. - Champions Centre (15%) 3 12 955 0 0 0 970 0.7% Allstate Life Ins. - Windbrooke (15%) 5 20 1,658 0 0 0 1,683 1.2% CIGNA - Chevy Chase (33%) 48 202 217 8,770 0 0 9,237 6.4% Northwestern Mutual Life Ins. - Willowbrook (40%) 42 175 190 8,907 0 0 9,314 6.5% Phoenix Mutual - Willeo Creek (30%) 15 61 66 2,686 0 0 2,828 2.0% Northwestern Mutual Life Ins. - Barrett Lakes (35%) 20 84 91 99 108 5,309 5,711 4.0% Erie Insurance - River Park (40%) 12 52 56 60 65 3,272 3,517 2.4% Prudential Ins. - Amli at Danada (10%) 6 27 29 31 33 2,288 2,414 1.7% Phoenix Home Life - Amli at Verandah (35%) 23 94 102 110 5,480 0 5,809 4.0% AMLI RESIDENTIAL PROPERTIES TRUST DEBT MATURITIES - CONTINUED There- % to 2000 2001 2002 2003 2004 after Total Total -------- -------- -------- -------- -------- -------- -------- ------- Northwestern Mutual Life Ins. - Northwinds (35%) 15 95 103 112 121 11,384 11,830 8.2% Northwestern Mutual Life Ins. - Regents Crest (25%) 18 76 82 3,710 0 0 3,886 2.6% Northwestern Mutual Life Ins. - Parkway (25%) 12 49 52 56 60 2,398 2,627 1.8% Jackson National Life Ins. - Timberglen (40%) 11 45 49 52 2,463 0 2,620 1.8% Northwestern Mutual Life - Deerfield (25%) 8 30 33 36 39 2,985 3,131 2.2% AMI Capital, Inc. - Lost Mountain (75%) 3 38 41 44 47 6,089 6,262 4.4% Amli Residential - Summit Ridge (25%) 0 0 4,739 0 0 0 4,739 3.3% Northwestern Mutual Life Ins. - Preston- wood Hills (45.3%) 14 57 61 65 71 4,956 5,224 3.6% Northwestern Mutual Life Ins. - Windward Park (45.3%) 22 87 94 101 108 7,752 8,164 5.7% FNMA - Oakbend (40%) 17 71 76 83 89 7,149 7,485 5.2% Northwestern Mutual Life Ins. - Midtown (45.3%) 24 98 106 114 125 9,423 9,890 6.9% Northwestern Mutual Life Ins. - Frankford (45.3%) 24 96 104 113 123 11,188 11,648 8.0% PNC Bank - Peachtree City II (20%) 0 0 651 0 0 0 651 0.5% Northwestern Mutual Life Ins. - Scofield (45.3%) 25 101 109 118 129 10,682 11,164 7.8% Northwestern Mutual Life Ins. - Breckinridge (45.3%) 87 98 106 114 123 9,497 10,025 7.0% -------- -------- -------- -------- -------- -------- -------- ------- Total Share of Co-Investments Loans $ 465 1,712 12,708 25,381 9,184 94,372 143,822 100.0% ======== ======== ======== ======== ======== ======== ======== ======= Percent to Total 0.3% 1.2% 8.8% 17.7% 6.4% 65.6% 100.0% 26.5% ======== ======== ======== ======== ======== ======== ======== ======= AMLI RESIDENTIAL PROPERTIES TRUST DEBT MATURITIES - CONTINUED There- % to 2000 2001 2002 2003 2004 after Total Total -------- -------- -------- -------- -------- -------- -------- ------- Total Including Share of Co-Investment Debt $ 1,940 4,751 242,731 90,498 18,117 184,741 542,778 100.0% ======== ======== ======== ======== ======== ======== ======== ======= Percent to Total 0.4% 0.9% 44.7% 16.7% 3.3% 34.0% 100.0% 100.0% ======== ======== ======== ======== ======== ======== ======== ======= * The Spring Creek Bonds mature in October 2024, but the credit enhancement expires on October 15, 2002. * The Poplar Creek Bonds mature in February 2024, but credit enhancement expires December 18, 2002. ** The Unsecured Line of Credit, which has a current maturity of October 2002, is in the process of being extended to November 2003, with one additional year extension option.
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) THREE MONTHS ENDED SEPTEMBER 30, 2000 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1999 (Excludes all properties acquired or stabilized after 1/1/99)
7/1/00-9/30/00 7/1/99-9/30/99 No. of --------------------------------- % -------------------------------- Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- -------- ---------- ------ ---------- -------- --------- WEIGHTED AVG. OCCUPANCY - ------------- Dallas 4,560 93.8% 0.4% 93.4% Atlanta 2,365 93.1% 0.0% 93.1% Austin 1,289 95.4% -0.7% 96.1% Indianapolis 1,536 90.1% 0.2% 90.0% Kansas 1,306 90.3% -3.8% 93.8% Chicago 196 94.4% -2.4% 96.8% ------ ----- ----- ----- Weighted Average 92.9% -0.4% 93.3% ===== ===== ===== Total 11,252 ====== WEIGHTED AVG. RENTAL RATE - ------------- Dallas $ 724 0.3% $722 Atlanta $ 818 3.0% $794 Austin $ 795 8.5% $732 Indianapolis $ 688 1.8% $676 Kansas $ 819 0.8% $813 Chicago $1,036 4.6% $991 ------ ---- ---- Weighted Average $ 763 2.2% $747 ====== ==== ==== TOTAL PROPERTY REVENUES Per Month Per Month - --------------- ---------- ---------- Dallas $ 9,907,823 $ 724 $ 0.83 1.4% $ 9,773,480 $ 714 $ 0.82 Atlanta $ 5,743,135 $ 809 $ 0.86 3.1% $ 5,567,844 $ 785 $ 0.83 Austin $ 3,212,333 $ 831 $ 1.07 10.4% $ 2,910,997 $ 753 $ 0.97 Indianapolis $ 3,104,619 $ 674 $ 0.76 4.6% $ 2,968,927 $ 644 $ 0.73 Kansas $ 3,100,670 $ 791 $ 0.80 -2.1% $ 3,168,349 $ 809 $ 0.82 Chicago $ 613,381 $1,043 $ 1.15 4.5% $ 586,905 $ 998 $ 1.10 ----------- ------ ------ ----- ----------- ------ ------ Total $25,681,961 $ 761 $ 0.85 2.8% $24,976,501 $ 740 $ 0.83 =========== ====== ===== ===== =========== ====== ====== AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED 7/1/00-9/30/00 7/1/99-9/30/99 --------------------------------- % -------------------------------- Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- ---------- ------ ---------- -------- --------- PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED) - --------------------------- ------------ ------------ Dallas $ 4,139,327 $3,631 $4.18 0.7% $ 4,109,291 $3,605 $4.15 Atlanta $ 2,068,458 $3,498 $3.71 -2.4% $ 2,120,264 $3,586 $3.80 Austin $ 1,223,326 $3,796 $4.89 5.7% $ 1,157,022 $3,590 $4.63 Indianapolis $ 1,230,389 $3,204 $3.62 2.6% $ 1,198,953 $3,122 $3.52 Kansas $ 1,137,513 $3,484 $3.51 -2.0% $ 1,160,241 $3,554 $3.58 Chicago $ 304,140 $6,207 $6.82 0.7% $ 302,111 $6,166 $6.77 ------------ ------ ----- ----- ----------- ------ ----- Total $ 10,103,153 $3,592 $4.03 0.6% $10,047,882 $3,572 $4.01 ============ ====== ===== ===== =========== ====== ===== Operating Efficiency 39.3% 40.2% ============ ===========
PER MONTH PER MONTH --------- ---------- NOI 2000% 1999% - --- ----- ----- Dallas 58.2% 58.0% $ 5,768,497 $422 $0.49 1.8% $ 5,664,189 $414 $0.48 Atlanta 64.0% 61.9% $ 3,674,677 $518 $0.55 6.6% $ 3,447,580 $486 $0.51 Austin 61.9% 60.3% $ 1,989,007 $514 $0.66 13.4% $ 1,753,974 $454 $0.58 Indianapolis60.4% 59.6% $ 1,874,229 $407 $0.46 5.9% $ 1,769,974 $384 $0.43 Kansas 63.3% 63.4% $ 1,963,157 $501 $0.51 -2.2% $ 2,008,108 $513 $0.52 Chicago 50.4% 48.5% $ 309,241 $526 $0.58 8.6% $ 284,794 $484 $0.53 ----- ----- ------------ ---- ----- ----- ----------- ---- ----- Total 60.7% 59.8% $ 15,578,808 $462 $0.52 4.4% $14,928,619 $442 $0.50 ===== ===== ============ ==== ===== ===== =========== ==== ===== Operating Margin 60.7% 59.8% ============ =========== CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED) - -------------------- ------------ ------------- Dallas $ 888,293 $ 779 $0.90 142.5% $ 366,317 $ 321 $0.37 Atlanta $ 269,504 $ 456 $0.48 38.7% $ 194,377 $ 329 $0.35 Austin $ 148,838 $ 462 $0.60 -33.8% $ 224,797 $ 698 $0.90 Indianapolis $ 100,530 $ 262 $0.30 87.7% $ 53,570 $ 140 $0.16 Kansas $ 118,996 $ 364 $0.37 125.0% $ 52,890 $ 162 $0.16 Chicago $ 105,747 $2,158 $2.37 390.0% $ 21,582 $ 440 $0.48 ------------ ------ ----- ------ ---------- ------ ----- Total $ 1,631,908 $ 580 $0.65 78.6% $ 913,532 $ 325 $0.36 ============ ====== ===== ====== ========== ====== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED PROPERTIES) - CONTINUED
7/1/00-9/30/00 7/1/99-9/30/99 --------------------------------- % -------------------------------- Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- ---------- ------ ---------- -------- --------- REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED) - ----------------------- ------------ ------------ Dallas $ 530,097 $ 465 $0.54 1.2% $ 523,579 $ 459 $0.53 Atlanta $ 392,822 $ 664 $0.70 -2.1% $ 401,162 $ 678 $0.72 Austin $ 123,747 $ 384 $0.49 -8.2% $ 134,745 $ 418 $0.54 Indianapolis $ 216,427 $ 564 $0.64 13.3% $ 190,981 $ 497 $0.56 Kansas $ 115,752 $ 355 $0.36 -6.8% $ 124,135 $ 380 $0.38 Chicago $ 41,005 $ 837 $0.92 38.3% $ 29,644 $ 605 $0.66 ------------ ------ ----- ------ ---------- ------ ----- Total $ 1,419,849 $ 505 $0.57 1.1% $1,404,246 $ 499 $0.56 ============ ====== ===== ====== ========== ====== ===== REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED) - ----------------- ------------ ------------ Dallas $ 1,431,698 $1,256 $1.45 -3.1% $1,476,744 $1,295 $1.49 Atlanta $ 404,726 $ 685 $0.72 -11.3% $ 456,063 $ 771 $0.82 Austin $ 445,475 $1,382 $1.78 4.9% $ 424,800 $1,318 $1.70 Indianapolis $ 306,540 $ 798 $0.90 -0.7% $ 308,601 $ 804 $0.91 Kansas $ 286,476 $ 877 $0.88 -9.5% $ 316,635 $ 970 $0.98 Chicago $ 136,076 $2,777 $3.05 -15.1% $ 160,200 $3,269 $3.59 ------------ ------ ----- ----- ---------- ------ ----- Total $ 3,010,990 $1,070 $1.20 -4.2% $3,143,043 $1,117 $1.25 ============ ====== ===== ===== ========== ====== =====
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES) THREE MONTHS ENDED SEPTEMBER 30, 2000 VERSUS THREE MONTHS ENDED SEPTEMBER 30, 1999 (Includes new properties at 7/1/99 - Wells Branch & Fox Valley)
7/1/00 - 9/30/00 7/1/99 - 9/30/99 No. of --------------------------------- % -------------------------------- Apts. Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- -------- ---------- ------ ---------- -------- --------- WEIGHTED AVG. OCCUPANCY - ------------- Dallas 5,982 93.7% -0.1% 93.8% Atlanta 3,275 93.7% -0.3% 93.9% Austin 1,865 95.4% 0.2% 95.2% Houston 754 92.1% -1.3% 93.3% Indianapolis 1,536 90.1% 0.2% 90.0% Kansas 1,674 89.5% -4.7% 93.9% Chicago 2,384 95.5% 0.9% 94.7% ------ ----- ----- ----- Weighted Average 93.3% -0.4% 93.7% ===== ===== ===== Total 17,470 ====== WEIGHTED AVG. RENTAL RATE - ------------- Dallas $ 727 0.6% $723 Atlanta $ 840 3.3% $814 Austin $ 823 8.0% $762 Houston $ 715 -4.7% $751 Indianapolis $ 688 1.8% $676 Kansas $ 808 0.6% $804 Chicago $1,032 3.5% $997 ------ ---- ---- Weighted Average $ 804 2.2% $786 ====== ==== ==== TOTAL PROPERTY REVENUES Per Month Per Month - --------------- ---------- ---------- Dallas $13,105,136 $ 730 $ 0.84 1.2% $12,952,866 $ 722 $ 0.83 Atlanta $ 8,289,925 $ 844 $ 0.86 3.7% $ 7,995,664 $ 814 $ 0.83 Austin $ 4,798,710 $ 858 $ 1.02 10.1% $ 4,357,103 $ 779 $ 0.93 Houston $ 1,570,282 $ 694 $ 0.75 -6.6% $ 1,680,359 $ 743 $ 0.80 Indianapolis $ 3,104,619 $ 674 $ 0.75 4.6% $ 2,968,927 $ 644 $ 0.72 Kansas $ 3,893,927 $ 775 $ 0.79 -3.4% $ 4,031,484 $ 803 $ 0.82 Chicago $ 7,762,226 $1,085 $ 1.24 6.9% $ 7,261,600 $1,015 $ 1.16 ----------- ------ ------ ----- ----------- ------ ------ $42,524,824 $ 811 $ 0.90 3.1% $41,248,004 $ 787 $ 0.87 =========== ====== ====== ===== =========== ====== ====== AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES) - CONTINUED 7/1/00 - 9/30/00 7/1/99 - 9/30/99 --------------------------------- % -------------------------------- Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- ---------- ------ ---------- -------- --------- PROPERTY OPERATING EXPENSES (ANNUALIZED) (ANNUALIZED) - --------------------------- ------------ ------------ Dallas $ 5,583,263 $3,733 $4.32 1.9% $ 5,481,683 $3,665 $4.24 Atlanta $ 2,722,009 $3,325 $3.38 -9.6% $ 3,011,533 $3,678 $3.74 Austin $ 1,841,320 $3,949 $4.71 1.2% $ 1,819,358 $3,902 $4.66 Houston $ 751,880 $3,989 $4.31 3.5% $ 726,589 $3,855 $4.17 Indianapolis $ 1,230,389 $3,204 $3.56 2.6% $ 1,198,953 $3,122 $3.47 Kansas $ 1,464,720 $3,500 $3.56 -0.8% $ 1,476,032 $3,527 $3.59 Chicago $ 2,696,258 $4,524 $5.18 17.7% $ 2,290,709 $3,843 $4.40 ------------ ------ ----- ----- ----------- ------ ----- Total $ 16,289,839 $3,730 $4.13 1.8% $16,004,856 $3,665 $4.06 ============ ====== ===== ===== =========== ====== ===== Operating Efficiency 38.3% 38.8% ============ ==========
PER MONTH PER MONTH --------- ---------- NOI 2000% 1999% - --- ----- ----- Dallas 57.4% 57.7% $ 7,521,873 $419 $0.48 0.7% $ 7,471,182 $416 $0.48 Atlanta 67.2% 62.3% $ 5,567,916 $567 $0.58 11.7% $ 4,984,131 $507 $0.52 Austin 61.6% 58.2% $ 2,957,390 $529 $0.63 16.5% $ 2,537,746 $454 $0.54 Houston 52.1% 56.8% $ 818,403 $362 $0.39 -14.2% $ 953,770 $422 $0.46 Indianapolis60.4% 59.6% $ 1,874,229 $407 $0.45 5.9% $ 1,769,974 $384 $0.43 Kansas 62.4% 63.4% $ 2,429,207 $484 $0.49 -4.9% $ 2,555,453 $509 $0.52 Chicago 65.3% 68.5% $ 5,065,967 $708 $0.81 1.9% $ 4,970,891 $695 $0.80 ----- ----- ------------ ---- ----- ----- ----------- ---- ----- Total 61.7% 61.2% $ 26,234,985 $501 $0.55 3.9% $25,243,148 $482 $0.53 ===== ===== ============ ==== ===== ===== =========== ==== ===== Operating Margin 61.7% 61.2% ============ ===========
AMLI RESIDENTIAL PROPERTIES L.P. - "SAME COMMUNITY COMPARISON" (WHOLLY-OWNED AND CO-INVESTMENT PROPERTIES) - CONTINUED
7/1/00 - 9/30/00 7/1/99 - 9/30/99 --------------------------------- % -------------------------------- Amount/% Per Unit Per Sq Ft Change Amount/% Per Unit Per Sq Ft -------- -------- ---------- ------ ---------- -------- --------- CAPITAL EXPENDITURES (ANNUALIZED) (ANNUALIZED) - -------------------- ------------ ------------ Dallas $ 992,428 $ 664 $0.77 128.8% $ 433,755 $ 290 $0.34 Atlanta $ 327,873 $ 400 $0.41 49.7% $ 219,078 $ 268 $0.27 Austin $ 148,838 $ 319 $0.38 -33.8% $ 224,797 $ 482 $0.58 Houston $ 38,334 $ 203 $0.22 31.5% $ 29,144 $ 155 $0.17 Indianapolis $ 100,530 $ 262 $0.29 87.7% $ 53,570 $ 140 $0.16 Kansas $ 258,921 $ 619 $0.63 341.3% $ 58,666 $ 140 $0.14 Chicago $ 363,052 $ 609 $0.70 133.0% $ 155,803 $ 261 $0.30 ------------ ------ ----- ------ ---------- ------ ----- Total $ 2,229,976 $ 511 $0.57 89.8% $1,174,813 $ 269 $0.30 ============ ====== ===== ====== ========== ====== ===== REPAIRS AND MAINTENANCE (ANNUALIZED) (ANNUALIZED) - ----------------------- ------------ ------------ Dallas $ 701,095 $ 469 $0.54 1.3% $ 692,307 $ 463 $0.54 Atlanta $ 496,396 $ 606 $0.62 -1.5% $ 503,856 $ 615 $0.63 Austin $ 166,391 $ 357 $0.43 -17.8% $ 202,519 $ 434 $0.52 Houston $ 62,204 $ 330 $0.36 41.9% $ 43,830 $ 233 $0.25 Indianapolis $ 216,427 $ 564 $0.63 13.3% $ 190,981 $ 497 $0.55 Kansas $ 147,436 $ 352 $0.36 -1.2% $ 149,263 $ 357 $0.36 Chicago $ 381,934 $ 641 $0.73 7.3% $ 355,847 $ 597 $0.68 ------------ ------ ----- ------ ---------- ------ ----- Total $ 2,171,883 $ 497 $0.55 1.6% $2,138,603 $ 490 $0.54 ============ ====== ===== ====== ========== ====== ===== REAL ESTATE TAXES (ANNUALIZED) (ANNUALIZED) - ----------------- ------------ ------------ Dallas $ 1,945,451 $1,301 $1.50 0.1% $1,942,570 $1,299 $1.50 Atlanta $ 416,677 $ 509 $0.52 -39.8% $ 691,752 $ 845 $0.86 Austin $ 707,975 $1,518 $1.81 5.2% $ 672,855 $1,443 $1.72 Houston $ 280,161 $1,486 $1.61 -10.9% $ 314,568 $1,669 $1.80 Indianapolis $ 306,540 $ 798 $0.89 -0.7% $ 308,601 $ 804 $0.89 Kansas $ 370,596 $ 886 $0.90 -7.9% $ 402,393 $ 962 $0.98 Chicago $ 942,113 $1,581 $1.81 38.8% $ 678,901 $1,139 $1.31 ------------ ------ ----- ------ ---------- ------ ----- Total $ 4,969,512 $1,138 $1.26 -0.8% $5,011,640 $1,147 $1.27 ============ ====== ===== ====== ========== ====== =====
AMLI RESIDENTIAL PROPERTIES TRUST PROPERTY INFORMATION As of September 30, 2000
Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- WHOLLY OWNED PROPERTIES - ------------ DALLAS/FT. WORTH, TX - ---------- Amli: at Autumn Chase Carrollton, TX 87/96/99 690 598,128 867 733 $0.85 91.7% at Bent Tree Dallas, TX 1996 300 282,774 943 840 0.89 95.9% at Bishop's Gate West Plano, TX 1997 266 292,094 1,098 1,016 0.92 90.9% at Chase Oaks Plano, TX 1986 250 193,736 775 701 0.90 93.9% at Gleneagles Dallas, TX 87/97 590 520,357 882 714 0.81 93.6% on the Green Ft. Worth, TX 90/93 424 358,560 846 700 0.83 95.3% at Nantucket Dallas, TX 1986 312 222,208 712 571 0.80 94.5% of North Dallas Dallas, TX 85/86 1,032 906,808 879 684 0.78 91.6% on Rosemeade Dallas, TX 1987 236 205,334 870 689 0.79 96.0% at Valley Ranch Irving, TX 1985 460 389,940 848 726 0.86 96.6% ----- --------- --- ---- ----- ------ Subtotal-Dallas/ Ft. Worth, TX 4,560 3,969,939 871 724 $0.83 93.5% ----- --------- --- ---- ----- ------ ATLANTA, GA - ----------- Amli: at Clairmont Atlanta, GA 1988 288 229,335 796 840 1.05 95.8% at Killian Farms Snellville, GA 1999 256 262,785 1,027 811 0.79 97.1% at Park Creek Gainesville, GA 1998 200 195,146 976 780 0.80 94.1% at Spring Creek Dunwoody, GA 85/86/ 87/89 1,180 1,080,568 916 778 0.85 91.3% at Vinings Atlanta, GA 1985 360 374,240 1,040 839 0.81 97.0% at West Paces Atlanta, GA 1992 337 353,700 1,050 938 0.89 93.5% at Towne Creek Gainesville, GA 1989 150 121,722 811 681 0.84 96.2% ------ --------- ----- ---- ----- ------ Subtotal- Atlanta, GA 2,771 2,617,496 945 810 0.86 93.8% ------ --------- ----- ---- ----- ------ Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- AUSTIN, TEXAS - ------------- Amli: at the Arboretum Austin, TX 1983 231 178,116 771 782 1.01 97.1% in Great Hills Austin, TX 1985 344 257,984 750 780 1.04 97.7% at Lantana Ridge Austin, TX 1997 354 311,857 881 902 1.02 96.5% at Martha's Vineyard Austin, TX 1986 360 260,380 723 711 0.98 97.5% at StoneHollow Austin, TX 1997 606 524,660 866 852 0.98 97.2% ----- --------- --- ---- ----- ----- Subtotal- Austin, TX 1,895 1,532,997 809 813 1.00 97.2% ----- --------- --- ---- ----- ----- KANSAS - ------ Amli: at Alvamar Lawrence, KS 1989 152 125,800 828 714 0.86 94.0% at Centennial Overland Park, KS 1998 170 204,858 1,205 952 0.79 89.5% at Lexington Farms Overland Park, KS 1998 404 392,693 972 804 0.83 90.4% at Regents Center Overland Park, KS91/95/97 424 398,674 940 768 0.82 91.3% at Town Center Overland Park, KS 1997 156 176,914 1,134 957 0.84 86.5% ----- --------- ----- ----- ----- ----- Subtotal - Kansas 1,306 1,298,939 995 819 0.82 90.5% ----- --------- ----- ----- ----- ----- INDIANAPOLIS, IN - ---------------- Amli: at Conner Farms Indianapolis, IN 1993 300 327,396 1,091 841 0.77 96.5% at Eagle Creek Indianapolis, IN 1998 240 233,432 973 769 0.79 93.1% at Riverbend Indianapolis, IN 83/85 996 820,712 824 623 0.76 88.1% ----- --------- ----- ---- ----- ----- Subtotal -Indianapolis, IN 1,536 1,381,540 899 688 0.77 90.5% ----- --------- ----- ---- ----- ----- Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- CHICAGO, IL - ------------ Amli: at Poplar Creek Schaumburg, IL 1985 196 177,630 906 1,025 1.13 95.8% ----- ---------- ----- ----- ----- ----- Subtotal -Chicago, IL 196 177,630 906 1,025 1.13 95.8% ------ ---------- ----- ----- ----- ----- TOTAL WHOLLY OWNED PROPERTIES 12,264 10,978,541 895 768 0.86 93.5% ====== ========== ===== ===== ===== ===== Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- CO-INVESTMENT PROPERTIES - -------------- ATLANTA, GA Amli: at Barrett Lakes Cobb County, GA 1997 446 462,368 1,037 885 0.85 97.2% at Peachtree City Fayette County, GA 1998 312 305,756 980 945 0.96 96.6% at River Park Norcross, GA 1997 222 226,632 1,021 952 0.93 95.9% at Willeo Creek Rosewell, GA 1989 242 297,302 1,229 875 0.71 93.8% at Northwinds (1) Alpharetta, GA 1999 800 818,432 1,023 914 0.89 96.2% at Windward Park Alpharetta, GA 1999 328 354,900 1,082 909 0.84 93.9% ----- --------- ----- ---- ----- ------ Subtotal- Atlanta, GA 2,350 2,465,390 1,049 911 0.87 95.9% ----- --------- ----- ---- ----- ------ CHICAGO, IL - ----------- Amli: at Chevy Chase Buffalo Grove, IL 1988 592 480,820 812 1,075 1.32 96.1% at Danada Wheaton, IL 89/91 600 521,499 869 999 1.15 97.0% at Fox Valley Aurora, IL 1998 272 269,237 990 973 0.98 94.0% at Oakhurst North Aurora, IL 2000 464 470,094 1,013 949 0.94 92.4% at Willowbrook Willowbrook, IL 1987 488 418,404 857 1,016 1.18 97.5% at Windbrooke Buffalo Grove, IL 1987 236 213,160 903 1,102 1.22 98.4% ----- ---------- ----- ----- ----- ----- Subtotal- Chicago, IL 2,652 2,373,214 895 1,017 1.14 95.9% ----- ---------- ----- ----- ----- ----- INDIANAPOLIS, IN - ---------------- AMLI: at Lake Clearwater Indianapolis, IN 1999 216 218,006 1,009 816 0.81 88.4% on Spring Mill Carmel, IN 1997 400 406,640 1,017 833 0.82 87.9% ----- --------- ----- ----- ----- ------ Subtotal- Indianapolis, IN 616 624,646 1,014 827 0.82 88.1% ----- --------- ----- ----- ----- ----- Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- EASTERN KANSAS - -------------- AMLI: at Regents Crest Overland Park, KS 1997 368 346,632 942 769 0.82 86.5% ----- --------- ----- ---- ----- ----- DALLAS/FT. WORTH - ---------------- AMLI: at Breckinridge Point Richardson, TX 1999 440 467,934 1,063 661 0.62 88.4% at Deerfield Ft. Worth, TX 1999 240 238,972 996 842 0.85 89.8% at Fossil Creek Ft. Worth, TX 1998 384 384,358 1,001 822 0.82 93.9% at Frankford Dallas, TX 1998 582 517,344 889 855 0.96 94.7% at Oakbend Lewisville, TX 1997 426 382,690 898 767 0.85 94.4% on the Parkway Dallas, TX 1999 240 225,248 939 859 0.92 93.7% at Prestonwood Hills Dallas, TX 1997 272 245,696 903 839 0.93 93.6% on Timberglen Dallas, TX 1985 260 201,198 774 624 0.81 95.1% at Varandah Arlington, TX 86/91 538 394,304 733 672 0.92 97.0% ----- ---------- --- ---- ----- ----- Subtotal - Dallas/ Ft. Worth, TX 3,382 3,057,744 904 766 0.85 93.6% ----- ---------- --- ---- ----- ----- AUSTIN, TX - ---------- AMLI: at Scofield Ridge Austin, TX 2000 487 433,077 889 920 1.03 95.4% at Wells Branch Austin, TX 1999 576 554,582 963 887 0.92 96.8% ----- ---------- --- ---- ----- ----- Subtotal - Austin, TX 1,063 987,659 929 902 0.97 96.2% ----- ---------- --- ---- ----- ----- Qtr ended Sept. 30, 2000 Approx- Average Qtr ended imate Rental Rates Sept. 30, Number Rentable Average ------------- 2000 Year of Area Unit Size Per Per Average PROPERTIES Location Completed Units (Sq Ft) (Sq Ft) Unit Sq Ft Occupancy - ---------- -------- --------- ------ --------- --------- ---- ----- ----------- HOUSTON, TX - ----------- Amli: at Champions Centre Houston, TX 1994 192 164,480 857 677 0.79 93.4% at Champions Park Houston, TX 1991 246 221,986 902 710 0.79 88.7% at Greenwood Forest Houston, TX 1995 316 310,844 984 743 0.76 93.9% at Midtown Houston, TX 1998 419 368,818 880 984 1.12 98.0% ------ ---------- --- ---- ----- ----- Subtotal- Houston, TX 1,173 1,066,128 909 811 0.89 94.2% ------ ---------- ---- ---- ----- ----- TOTAL CO-INVESTMENT PROPERTIES 11,604 10,921,413 941 873 0.93 94.4% ====== ========== === ==== ===== ===== TOTAL WHOLLY OWNED AND CO-INVESTMENT PROPERTIES 23,868 21,899,954 918 819 0.89 93.9% ====== ========== === ==== ===== =====
AMLI RESIDENTIAL PROPERTIES TRUST COMPONENTS OF PROPERTY EBITDA
WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100% ---------------------------- -------------------------- -------------------------- THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, ---------------------------- -------------------------- -------------------------- % % % 2000 1999 Change 2000 1999 Change 2000 1999 Change ------- ------- ------ ------- ------- ------ ------- ------- ------- PROPERTY REVENUES - ----------------- RENTAL INCOME - ------------- Same Store Communities (1) . . .$24,032 23,560 2.0% 15,590 15,225 2.4% 39,622 38,785 2.2% New Communities (2). . 605 507 19.3% 3,875 2,986 29.7% 4,480 3,494 28.2% Development and/ or Lease-up Communities (3) . . . 393 0 4,196 116 4,589 116 Acquisition Communities (4) . . . 1,801 0 4,497 1,447 6,298 1,447 Communities Sold/ Contributed to Ventures (5). . . . . 0 3,860 2,020 2,687 2,020 6,547 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . .$26,831 27,928 -3.9% 30,177 22,461 34.4% 57,008 50,388 13.1% ======= ======= ======= ======= ======= ======= ======= ======= ======= OTHER REVENUES - -------------- Same Store Communities . . . . .$ 1,650 1,416 16.5% 1,253 1,047 19.7% 2,903 2,463 17.9% New Communities. . . . 43 33 28.9% 351 250 40.5% 394 283 39.2% Development and/ or Lease-up Communities . . . . . 33 0 436 24 469 24 Acquisition Communities . . . . . 94 0 339 98 433 98 340.6% Communities Sold/ Contributed to Ventures. . . . . . . 4 364 151 223 155 586 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . .$ 1,823 1,813 0.6% 2,530 1,641 54.2% 4,353 3,454 26.0% ======= ======= ======= ======= ======= ======= ======= ======= ======= AMLI RESIDENTIAL PROPERTIES TRUST COMPONENTS OF PROPERTY EBITDA - CONTINUED WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100% ---------------------------- -------------------------------------------------------- THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, ---------------------------- -------------------------------------------------------- % % % 2000 1999 Change 2000 1999 Change 2000 1999 Change ------- ------- ------ ------- ------- ------ ------- ------- ------- TOTAL PROPERTY REVENUES - --------------- Same Store Communities . . . . .$25,682 24,977 2.8% 16,843 16,272 3.5% 42,525 41,248 3.1% New Communities. . . . 648 540 19.9% 4,226 3,236 30.6% 4,873 3,776 29.0% Development and/ or Lease-up Communities . . . . . 426 0 4,632 139 5,057 139 Acquisition Communities . . . . . 1,895 0 4,836 1,545 6,731 1,545 Communities Sold/Contri- buted to Ventures . . 4 4,224 2,171 2,909 2,175 7,134 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . .$28,655 29,741 -3.7% 32,707 24,102 35.7% 61,362 53,843 14.0% ======= ======= ======= ======= ======= ======= ======= ======= ======= Company's share of Co-investment total revenues . . . . . . . 10,221 6,635 54.1% ======= ======= ======= TOTAL OPERATING EXPENSES - --------------- Same Store Communities . . . . .$10,103 10,048 0.6% 6,187 5,957 3.9% 16,290 16,005 1.8% New Communities. . . . 204 230 -11.0% 1,549 1,295 19.6% 1,753 1,524 15.0% Development and/ or Lease-up Communities . . . . . 207 0 2,241 286 2,448 286 Acquisition Communities . . . . . 728 0 1,906 601 2,634 601 Communities Sold/Contri- buted to Ventures . . 19 1,406 683 1,222 702 2,629 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . .$11,262 11,684 -3.6% 12,565 9,362 34.2% 23,827 21,045 13.2% ======= ======= ======= ======= ======= ======= ======= ======= ======= Company's share of Co-investment total operating expenses . . 3,864 2,550 51.5% ======= ======= ======= AMLI RESIDENTIAL PROPERTIES TRUST COMPONENTS OF PROPERTY EBITDA - CONTINUED WHOLLY-OWNED CO-INVESTMENTS AT 100% COMBINED AT 100% ---------------------------- -------------------------------------------------------- THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, ---------------------------- -------------------------------------------------------- % % % 2000 1999 Change 2000 1999 Change 2000 1999 Change ------- ------- ------ ------- ------- ------ ------- ------- ------- PROPERTY EBITDA - --------------- Same Store Communities . . . . .$15,579 14,929 4.4% 10,656 10,315 3.3% 26,235 25,243 3.9% New Communities. . . . 443 311 42.7% 2,677 1,942 37.9% 3,120 2,252 38.5% Development and/ or Lease-up Communities . . . . . 218 0 2,391 -147 2,609 -147 Acquisition Communities . . . . . 1,167 0 2,930 944 4,097 944 Communities Sold/ Contributed to Ventures. . . . . . . -15 2,818 1,488 1,687 1,473 4,505 ------- ------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . .$17,393 18,057 -3.7% 20,142 14,740 36.6% 37,535 32,797 14.4% ======= ======= ======= ======= ======= ======= ======= ======= ======= Company's share of Co-investment EBITDA (incl. share of cash flow in excess of ownership %) . . . . . 6,926 4,177 65.8% 6,926 4,177 65.8% ======= ======= ======= ======= ======= ======= Percent of Co-investment EBITDA . . . . . . . . 34% 28% 18% 13% ======= ======= ======= ======= (1) Stabilized Communities at 7/1/99. (2) Development Communities stabilized after 7/1/99 but before 7/1/00. (3) Development Communities not yet stabilized. (4) Stabilized Communities acquired after 7/1/99. (5) Communities sold or contributed to co-investment ventures.
AMLI RESIDENTIAL PROPERTIES TRUST DEVELOPMENT ACTIVITIES Third Quarter 2000
Construc- Percent Percent tion First Comple- Stabili- Construc- Leased Community Number Costs Percent Start Units tion zation tion as of Name of Units (millions) Ownership Date Occupied Date Date Complete 10/23/00 - ---------- -------- ---------- --------- --------- -------- ------- -------- --------- -------- Under Construc- tion and/or In Initial Lease Up - ---------------- ATLANTA, GEORGIA - ---------------- AMLI at Mill Creek 400 $27.1 25% 3Q/99 3Q/00 3Q/01 2Q/02 37% 4% at Park Bridge 352 $24.6 25% 2Q/99 2Q/00 1Q/01 3Q/01 83% 66% at Peacktree City Phase II 216 $20.2 20% 3Q/00 3Q/01 1Q/02 2Q/02 7% N/A at Lost Mountain 164 $11.4 74% 2Q/99 2Q/00 3Q/00 1Q/01 100% 81% DALLAS/FORT WORTH, TEXAS - ------------------ AMLI at Bent Tree II 200 $13.9 100% 4Q/98 4Q/99 2Q/00 4Q/00 100% 93% AUSTIN, TEXAS - ------------- AMLI at Monterey Oaks 430 $30.4 25% 4Q/98 1Q/00 4Q/00 1Q/01 94% 96% HOUSTON, TEXAS - -------------- AMLI at Kings Harbour 300 $19.2 100% 2Q/00 1Q/01 3Q/01 2Q/02 28% N/A CHICAGO (METRO), ILLINOIS - ---------------- AMLI at St. Charles 400 $43.4 25% 3Q/98 3Q/99 3Q/00 1Q/01 100% 90% AMLI RESIDENTIAL PROPERTIES TRUST DEVELOPMENT ACTIVITIES - CONTINUED Construc- Percent Percent tion First Comple- Stabili- Construc- Leased Community Number Costs Percent Start Units tion zation tion as of Name of Units (millions) Ownership Date Occupied Date Date Complete 10/23/00 - ---------- -------- ---------- --------- --------- -------- ------- -------- --------- -------- OVERLAND PARK, KANSAS - -------------- AMLI at Wynnewood Farms 232 $18.6 25% 2Q/98 4Q/99 3Q/00 4Q/00 100% 89% at Regents Crest II 108 $ 7.7 25% 2Q/98 3Q/99 2Q/00 4Q/00 100% 89% Creekside 224 $16.2 25% 2Q/98 4Q/99 2Q/00 4Q/00 100% 90% at Cambridge Square 408 $32.2 30% 3Q/00 3Q/01 2Q/02 1Q/03 3% N/A LEE'S SUMMIT, MISSOURI - ------------- AMLI at Summit Ridge 432 $29.3 25% 2Q/99 2Q/00 4Q/00 1Q/02 89% 51% INDIANAPOLIS, INDIANA - ------------- AMLI at Castle Creek 276 $20.7 40% 3Q/98 3Q/99 3Q/00 4Q/00 100% 84% ----- ------ TOTAL 4,142 $314.9 ===== ======
AMLI RESIDENTIAL PROPERTIES TRUST DEVELOPMENT ACTIVITIES (continued) PLANNING STAGES Number Community Name of Units - -------------- ---------- ATLANTA, GA - ----------- AMLI: at Milton Park 449 INDIANAPOLIS, IN - ---------------- AMLI at Prairie Lakes 228 at Prairie Lakes (phases II-IV) 1,100 WOODRIDGE, IL - ------------- AMLI at Seven Bridges 520 AUSTIN, TX - ---------- AMLI at Anderson Mill 520 Downtown Austin - Block 20 218 Parmer Park 480 DALLAS/FT WORTH, TX - ------------------- AMLI at Mesa Ridge (Fossil Creek II) 520 Fossil Lake 324 Fossil Creek IV-A 240 at Vista Ridge 340 HOUSTON, TX - ----------- AMLI at Champions II 288 OVERLAND PARK, KS - ----------------- AMLI at Westwood Ridge 428 The following is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. The projections contained in the table above that are not historical facts are forward-looking statements. Risks associated with the Company's development, construction and lease-up activities, which could impact the forward-looking statements may include: development opportunities may be abandoned; construction costs of a community may exceed original estimates, possibly making the community uneconomical; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs; estimates of the costs of improvements to bring an acquired property up to the standards established for the market position intended for that property may prove inaccurate. -----END PRIVACY-ENHANCED MESSAGE-----