EX-99 3 exh_99.txt EXHIBIT 99 ---------- AMLI RESIDENTIAL ------------------------------------------------------------ FIRST QUARTER 2002 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI at Park Meadows - Denver, Colorado. A co-investment community purchased in April 2002." ] AMLI RESIDENTIAL PROPERTIES TRUST 125 South Wacker Drive Suite 3100 Chicago, Illinois 60606 Phone: (312) 443-1477 Fax: (312) 443-0909 www.amli.com ------------ 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 this table 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. AMLI RESIDENTIAL TABLE OF CONTENTS Page ---- SUMMARY INFORMATION Company Description and Investor Information. . . . . . . . 1 Earnings Release. . . . . . . . . . . . . . . . . . . . . . 2 Selected Financial and Operating Information. . . . . . . . 5 Funds From Operations . . . . . . . . . . . . . . . . . . . 11 Statements of Operations. . . . . . . . . . . . . . . . . . 12 Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . 14 DEBT AND PREFERRED SHARES Debt and Preferred Shares Summary . . . . . . . . . . . . . 16 Debt Maturities . . . . . . . . . . . . . . . . . . . . . . 20 SAME STORE AND NOI DATA Quarterly Comparison of Same Store Communities. . . . . . . 22 Quarterly Comparison of Components of NOI . . . . . . . . . 24 OTHER DATA Co-Investment Compensation. . . . . . . . . . . . . . . . . 27 Service Companies Financial Information . . . . . . . . . . 28 PORTFOLIO Stabilized Communities. . . . . . . . . . . . . . . . . . . 30 Development Summary . . . . . . . . . . . . . . . . . . . . 34 Communities in Planning . . . . . . . . . . . . . . . . . . 37 AMLI RESIDENTIAL COMPANY DESCRIPTION INVESTOR INFORMATION AMLI Residential (or AMLI) is an integrated, self-managed real estate operating company, which was formed in February 1994 to continue and expand the multifamily property business previously conducted by AMLI Realty Co. (ARC), AMLI's predecessor company, which has been in business since 1980. AMLI is structured as an UPREIT, or umbrella partnership real estate investment trust, and we own interests in properties and conduct our business through AMLI Residential Properties, L.P., (the Operating Partnership or OP). The sole general partner of the OP is AMLI Residential Properties Trust, a public company whose shares of beneficial interest are traded on the NYSE under the symbol "AML." Our business is the development, acquisition and management of upscale apartment communities in the Southeast, Southwest, Midwest and Mountain regions of the United States. We also serve as an institutional advisor and asset manager for domestic and international, tax-exempt and taxable investors in connection with our joint venture co-investment business. A summary schedule of our investment communities is included in this Supplement. We operate all of our communities under the AMLI brand name, representing our commitment to high quality, exceptional service and superior value. We have corporate offices in Atlanta, Dallas, Indianapolis and Kansas City, in addition to our main office in Chicago. We employ approximately 875 people who are dedicated to our mission ... TO PROVIDE AN OUTSTANDING LIVING ENVIRONMENT FOR OUR RESIDENTS. For additional information on AMLI, please visit our website at www.amli.com. The following information is presented as a supplement to our other public reporting, including our Form 10-Q and Form 10-K, both or which can be found on our website or through the SEC's EDGAR database. We hope that the information contained herein is helpful to you. We encourage your feedback and any suggestions, which you believe will help us provide better disclosure to you. Please contact either of: Robert Chapman Executive Vice President & CFO 312.984.6845 rchapman@amli.com Sue Bersh Vice President - Corporate Communications 312.984.2607 sbersh@amli.com Thank you for your interest in AMLI Residential. AML LISTED NYSE First Quarter 2002 Page 1 Supplemental Information AMLI Residential Properties Trust AMLI Residential 125 South Wacker Drive Chicago, Illinois 60606 Phone: 312.443.1477 Fax: 312.443.0909 www.amli.com PRESS RELEASE For Immediate Release For More Information, Contact: April 30,2002 Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES FIRST QUARTER 2002 OPERATING RESULTS AND DECLARES DIVIDEND AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the first quarter ended March 31, 2002. FUNDS FROM OPERATIONS, NET INCOME AND OPERATING EPS --------------------------------------------------- Funds From Operations ("FFO") for the first quarter 2002 were $15,828,000, or $0.61 per common share, compared to $15,231,000, or $0.61 per common share, for the first quarter 2001. FFO is in line with First Call's current estimate and $0.01 higher than the Company's previous guidance. "We were satisfied with property operations this quarter, particularly expense savings, in a challenging economic environment," commented Allan J. Sweet, AMLI President. "Although we did not complete any major transactions during the first quarter, we began the second quarter by welcoming a new co-investment partner and adding a beautiful community to our Denver portfolio. We expect additional transactions during the second quarter." Net income for the quarter ended March 31, 2002 was $6,660,000, as compared to $6,405,000 in the year earlier period. Diluted Earnings Per Share ("EPS") for the quarter ended March 31, 2002 was $0.26, compared to $0.27 for the comparable period of 2001, a decrease of 3.7%. Additionally, Operating EPS was $0.26 per diluted share for the quarter ended March 31, 2002 as compared to $0.27 per diluted share for the quarter ended March 31, 2001. SAME COMMUNITY RESULT --------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended March 31, 2002 versus the prior year's quarter, total property revenues decreased 1.3%, operating expenses increased 0.2%, and net operating income ("N0I") decreased 2.2%. Weighted average occupancy, quarter over comparable quarter, decreased from 91.6% to 90.7%, while the weighted average rental rate decreased by 0.8%. OTHER OPERATING RESULTS ----------------------- Total property revenues, including both wholly-owned communities and co-investment communities (at 100%) were $69,175,000 for the quarter ended March 31, 2002, as compared with $68,807,000 for the comparable period in 2001, an increase of 0.5%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter ended March 31, 2002 were $21,774,000, a slight decrease from the same period last year. Excluding the Company's share of co-investment partnerships' interest expense, which has historically been included in the Company's disclosure, EBITDA for the quarter ended March 31, 2002 was $25,232,000, representing a decrease of 0.6% from same period last year. First Quarter 2002 Page 2 Supplemental Information AMLI Residential Properties Trust OUTLOOK ------- AMLI's current expectation for full year 2002 FFO per share remains consistent with prior guidance in the range of $2.60 to $2.66. Although property operations may be weaker than we anticipated three months ago, the company is currently anticipating that fee activity from its co-investments and other factors will improve to maintain the guidance amount. AMLI anticipates that full year Operating EPS for 2002 will be in the range of $1.15 to $1.20. Additionally, the Company currently expects full year 2003 FFO per share to be in the range of $2.75 to $2.85 and full year 2003 Operating EPS to be in the range of $1.20 to $1.30. DIVIDEND -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on May 21, 2002 to all common shareholders of record as of May 10, 2002 and is based on an annual dividend rate of $1.92 per common share. CONFERENCE CALL --------------- AMLI will hold a conference call on Wednesday, May 1, 2002 at 2:30 p.m. ET to review these results. The call may be joined by calling 877-601-5719 - Passcode: AMLI. A live webcast and replay of the call can be accessed at www.amli.com/company_info or at www.streetevents.com. SUPPLEMENTAL INFORMATION ------------------------ AMLI produces Quarterly Supplemental Information that provides detailed information regarding the Company's activities during the quarter. The First Quarter Supplemental Information is available on AMLI's website at www.amli.com/company_info/share_report.html. ABOUT AMLI ---------- The AMLI portfolio currently includes 71 apartment communities containing 27,738 apartment homes, with an additional 2,537 apartment homes under development or in lease-up in seven locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain Regions areas of the U.S. AMLI Residential also serves as institutional advisor and asset manager for large pension funds, tax-exempt foundations and other financial institutions through AMLI's co-investment business. AMLI employs approximately 875 people who are dedicated to achieving AMLI's mission--Provide An Outstanding Living Environment For Our Residents. More Information on AMLI is available at www.amli.com. FORWARD LOOKING STATEMENTS -------------------------- Certain matters discussed in this press release are forward looking statements within the meaning of Federal Securities Law. Although the Company believes expectations reflected in such forward looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking statements can be identified by the Company's use of the words "project," "believe," "expect," "anticipate," "intend," "estimate," "assume," and other similar expressions that predict or indicate future events, achievements or trends or that do not relate to historical matters. First Quarter 2002 Page 3 Supplemental Information AMLI Residential Properties Trust The Company does not assure the future results or outcome of the matters described in forward-looking statements; rather, these statements merely reflect the Company's current expectations of the approximate outcomes of the matters discussed. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control. The reader is cautioned to make his/her own judgement with regard to the statements discussed in this press release and the assumption noted by the Company herein. The Company is making forward-looking statements because it believes investors, analysts and others, many of whom prepare models and projections of the Company's performance, are interested in the Company's current estimates of its future activities. The Company advises such parties to make their own determination of any relevant or material assumption used by them. Many factors may cause the Company's actual performance in any period or periods to differ materially from the anticipated future performance expressed or implied by these forward-looking statements. Certain of the factors that could cause the Company's actual performance to differ materially from those expressed or implied by these forward-looking statements include, but are not limited to, general economic conditions, local real estate conditions, the timely development and lease-up of communities, other risks detailed from time to time in the Company's SEC reports, including the annual report on Form 10-K for the year ended December 31, 2001. # # # # First Quarter 2002 Page 4 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------- March 31, Dec. 31, Sept. 30, June 30, March 31, 2002 2001 2001 2001 2001 ---------- ---------- ---------- ---------- ---------- REVENUES -------- TOTAL REVENUES Consolidated (a). . . . . . . . . . . . . $ 31,395 32,097 34,298 32,449 31,328 Combined, including share of partnerships (b). . . . . . . . . . . . 42,976 45,254 42,938 44,428 42,701 COMBINED TOTAL PROPERTY REVENUES Consolidated. . . . . . . . . . . . . . . 28,645 28,563 29,120 28,823 28,335 Combined, including share of partnerships. . . . . . . . . . . . . . 41,731 41,830 42,842 42,681 41,488 Combined, including partnerships at 100% . . . . . . . . . . . . . . . . 69,175 69,382 71,298 70,976 68,807 EARNINGS -------- EBITDA Consolidated. . . . . . . . . . . . . . 21,774 20,911 23,826 22,823 21,794 Combined, including share of partnerships. . . . . . . . . . . . . 25,232 24,471 27,391 26,530 25,390 FFO . . . . . . . . . . . . . . . . . . . 15,828 14,901 16,848 16,162 15,231 AFFO. . . . . . . . . . . . . . . . . . . 14,601 13,635 15,452 13,474 14,022 Operating earnings. . . . . . . . . . . . 7,598 6,660 8,792 7,561 7,345 Net income. . . . . . . . . . . . . . . . 6,660 5,872 19,244 14,225 6,405 Dividends (c) . . . . . . . . . . . . . . 12,286 11,985 11,751 11,686 11,740 PER SHARE DATA - DILUTED ------------------------ FFO . . . . . . . . . . . . . . . . . . . $ 0.61 0.58 0.67 0.65 0.61 AFFO. . . . . . . . . . . . . . . . . . . 0.56 0.53 0.61 0.54 0.56 Operating earnings. . . . . . . . . . . . 0.26 0.21 0.33 0.28 0.27 Net income allocable to common shares . . 0.26 0.21 0.89 0.67 0.27 Common dividends. . . . . . . . . . . . . 0.48 0.48 0.47 0.47 0.47 FFO payout ratio (based on per share amounts). . . . . . . . . . . . . 78.8% 82.8% 70.3% 72.8% 76.9% AFFO payout ratio (based on per share amounts). . . . . . . . . . . . . 85.6% 90.6% 76.5% 87.4% 83.5% 5 AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Unaudited (Dollars in thousands, except for share data) Quarter Ended ------------------------------------------------------------- March 31, Dec. 31, Sept. 30, June 30, March 31, 2002 2001 2001 2001 2001 ---------- ---------- ---------- ---------- ---------- DEBT SERVICE (h) ---------------- INTEREST EXPENSE Consolidated. . . . . . . . . . . . . . . 5,800 5,858 6,824 6,352 6,427 Combined, including share of partnerships. . . . . . . . . . . . . . 9,213 9,352 10,341 10,012 9,968 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . 1,054 981 1,100 1,047 973 Combined, including share of partnerships. . . . . . . . . . . . . . 1,072 1,004 1,145 1,072 992 SCHEDULED PRINCIPAL PAYMENTS (normal amortization) Consolidated. . . . . . . . . . . . . . . 1,183 1,166 1,014 753 739 Combined, including share of partnerships. . . . . . . . . . . . . . 2,653 1,704 1,501 1,313 1,217 See notes on following pages. 6
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------ March 31, Dec. 31, Sept. 30, June 30, March 31, 2002 2001 2001 2001 2001 ---------- ---------- ---------- ---------- ---------- CAPITALIZATION -------------- REAL ESTATE AT COST, BEFORE DEPRECIATION Consolidated. . . . . . . . . . . . . . . $ 745,906 744,411 743,111 696,346 696,302 Combined, including share of partnerships. . . . . . . . . . . . . . 1,116,239 1,114,576 1,105,640 1,074,009 1,073,501 Combined, including partnerships at 100% . . . . . . . . . . . . . . . . 1,864,965 1,862,901 1,832,040 1,822,852 1,821,441 TOTAL ASSETS Consolidated. . . . . . . . . . . . . . . 914,347 919,002 912,987 915,048 890,174 Combined, including share of partnerships. . . . . . . . . . . . . . 1,111,304 1,120,158 1,111,033 1,121,990 1,074,400 DEBT Consolidated. . . . . . . . . . . . . . . 405,126 399,309 408,475 429,489 412,242 Combined, including share of partnerships. . . . . . . . . . . . . . 592,300 586,137 595,174 625,061 608,153 Combined, including share of Service Companies . . . . . . . . . . . 606,300 600,137 609,174 639,061 622,153 EQUITY Operating Partnerships Units (d). . . . . 67,339 68,186 69,658 66,272 67,039 Preferred Shares. . . . . . . . . . . . . 95,343 100,362 81,218 81,218 81,218 Common Equity (e) . . . . . . . . . . . . 325,602 323,202 327,903 318,002 311,353 ---------- ---------- ---------- ---------- ---------- $ 488,284 491,750 478,779 465,492 459,610 ========== ========== ========== ========== ========== 7 AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Unaudited (Dollars in thousands, except for share data) Quarter Ended ------------------------------------------------------------ March 31, Dec. 31, Sept. 30, June 30, March 31, 2002 2001 2001 2001 2001 ---------- ---------- ---------- ---------- ---------- SHARE INFORMATION Shares and units Outstanding (f). . . . . 25,800,055 25,779,764 25,007,264 24,891,232 24,873,832 Weighted average shares and units outstanding . . . . . . . . . . . . . . 25,707,991 25,465,180 24,960,829 24,876,109 24,813,456 Share price, end of period. . . . . . . . $ 25.22 25.22 23.60 24.60 22.30 NUMBER OF APARTMENT HOMES ------------------------- STABILIZED COMMUNITIES Wholly-owned. . . . . . . . . . . . . . . 12,247 12,247 12,247 12,079 12,519 Partnerships. . . . . . . . . . . . . . . 15,011 15,011 14,579 15,067 15,067 ---------- ---------- ---------- ---------- ---------- 27,258 27,258 26,826 27,146 27,586 ---------- ---------- ---------- ---------- ---------- COMMUNITIES UNDER DEVELOPMENT AND/OR LEASE-UP Wholly-owned. . . . . . . . . . . . . . . 322 322 322 -- -- Partnerships. . . . . . . . . . . . . . . 2,615 2,615 2,737 2,217 2,217 ---------- ---------- ---------- ---------- ---------- 2,937 2,937 3,059 2,217 2,217 ---------- ---------- ---------- ---------- ---------- Total . . . . . . . . . . . . . . . . 30,195 30,195 29,885 29,363 29,803 ========== ========== ========== ========== ========== See notes on following pages. 8
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------ March 31, Dec. 31, Sept. 30, June 30, March 31, 2002 2001 2001 2001 2001 ---------- ---------- ---------- ---------- ---------- OPERATIONAL RATIOS ------------------ EBITDA, AS PERCENT OF TOTAL MARKET CAPITALIZATION Consolidated. . . . . . . . . . . . . . . 8.2% 8.0% 9.5% 8.8% 9.0% Combined, including share of partnerships and Service Companies. . . 8.0% 7.8% 9.1% 8.5% 8.5% INTEREST COVERAGE Consolidated. . . . . . . . . . . . . . . 3.8 3.6 3.5 3.6 3.4 Combined, including share of partnerships. . . . . . . . . . . . . . 2.7 2.6 2.6 2.7 2.5 FIXED CHARGE COVERAGE (g) Consolidated. . . . . . . . . . . . . . . 2.4 2.3 2.5 2.6 2.5 Combined, including share of partnerships. . . . . . . . . . . . . . 1.9 2.5 2.3 2.4 2.0 FINANCIAL RATIOS ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated. . . . . . . . . . . . . . . 38.4% 38.0% 40.9% 41.2% 42.6% Combined, including share of partnerships. . . . . . . . . . . . . . 48.2% 48.0% 50.8% 51.1% 53.4% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated. . . . . . . . . . . . . . . 44.3% 43.5% 44.7% 46.9% 46.3% Combined, including share of partnerships. . . . . . . . . . . . . . 53.3% 52.3% 53.6% 55.7% 56.6% SECURED DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated. . . . . . . . . . . . . . . 33.9% 33.9% 34.3% 34.3% 19.6% Combined, including share of partnerships. . . . . . . . . . . . . . 44.8% 44.5% 45.0% 45.4% 34.5% 9 AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Unaudited (Dollars in thousands, except for share data) Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. (c) Includes dividends paid on all common and preferred shares. (d) Represents Minority Interest on the Company's Balance Sheet. (e) Represents Shareholders' Equity on the Company's Balance Sheet less Preferred Shares (f) Includes all preferred shares convertible to common shares. (g) Includes interest expense and preferred dividends. (h) Excludes amortization of deferred and other financing costs. 10
AMLI RESIDENTIAL FUNDS FROM OPERATIONS Unaudited (Dollars in thousands, except for share data) Three Months Ended March 31 ----------------------- 2002 2001 ---------- ---------- WHOLLY-OWNED COMMUNITIES' NOI (a) . . . . . $ 17,696 17,519 ---------- ---------- Partnership communities' NOI at 100% (a). . 24,625 25,069 Partners' share of partnership communities' NOI and Other (e). . . . . . (16,270) (16,482) ---------- ---------- COMPANY'S SHARE OF PARTNERSHIP EBITDA . . . 8,355 8,587 ---------- ---------- Interest from and share of Service Companies' FFO (b). . . . . . . . . . . . (230) (299) Other interest and Other. . . . . . . . . . 364 477 Co-investment fee income (c). . . . . . . . 587 624 General and administrative. . . . . . . . . (1,540) (1,518) ---------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) . . 25,232 25,390 ---------- ---------- INTEREST EXPENSE (d) Wholly owned communities and portfolio debt. . . . . . . . . . . . . . . . . . . (5,946) (6,563) Share of partnership communities. . . . . . (3,458) (3,596) ---------- ---------- (9,404) (10,159) ---------- ---------- FUNDS FROM OPERATIONS (FF0) . . . . . . . . 15,828 15,231 CAPITAL EXPENDITURES PAID FROM FFO Wholly-owned communities. . . . . . . . . . (1,005) (999) Share of partnership communities. . . . . . (222) (210) ---------- ---------- (1,227) (1,209) ---------- ---------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . . . $ 14,601 14,022 ========== ========== Notes: (a) See page 26. (b) Includes share of income before goodwill amortization of $104 for the quarter ended March 31,2001. See page 28. (c) See page 27. (d) Includes amortization of deferred and other financing costs. (e) See footnote (f) on page 26. 11 AMLI RESIDENTIAL STATEMENTS OF OPERATIONS Three Months Ended March 31 (Unaudited dollars in thousands)
Consolidated (a) Combined (b) ----------------------- ----------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- REVENUES Property revenues . . . . . . . . . . . . . . . . . . $ 28,645 28,335 41,731 41,488 Interest and share of income (loss) from the Service Companies . . . . . . . . . . . . . . . . . (230) (403) (230) (403) Other interest and Other (c). . . . . . . . . . . . . 364 477 887 992 Income from partnerships. . . . . . . . . . . . . . . 2,029 2,295 -- -- Co-investment fee income. . . . . . . . . . . . . . . 587 624 587 624 ---------- ---------- ---------- ---------- 31,395 31,328 42,976 42,701 ---------- ---------- ---------- ---------- EXPENSES Property operating expenses . . . . . . . . . . . . . 10,949 10,816 16,204 15,897 Interest and amortization of deferred and other financing costs . . . . . . . . . . . . . . . 5,946 6,563 9,404 10,159 Depreciation. . . . . . . . . . . . . . . . . . . . . 5,362 5,086 8,230 7,782 General and administrative. . . . . . . . . . . . . . 1,540 1,518 1,540 1,518 ---------- ---------- ---------- ---------- 23,797 23,983 35,378 35,356 ---------- ---------- ---------- ---------- INCOME BEFORE DISCONTINUED OPERATIONS AND MINORITY INTEREST. . . . . . . . . . . . . . . . . . 7,598 7,345 7,598 7,345 Discontinued operations . . . . . . . . . . . . . . . -- -- -- -- ---------- ---------- ---------- ---------- INCOME BEFORE MINORITY INTEREST . . . . . . . . . . . 7,598 7,345 7,598 7,345 Minority interest . . . . . . . . . . . . . . . . . . 938 940 938 940 ---------- ---------- ---------- ---------- NET INCOME. . . . . . . . . . . . . . . . . . . . . . 6,660 6,405 6,660 6,405 Net income attributable to preferred shares . . . . . 2,082 1,633 2,082 1,633 ---------- ---------- ---------- ---------- NET INCOME ATTRIBUTABLE TO COMMON SHARES. . . . . . . 4,578 4,772 4,578 4,772 ADD: Minority interest . . . . . . . . . . . . . . . . . . 938 940 938 940 Discontinued operations . . . . . . . . . . . . . . . -- -- -- -- ---------- ---------- ---------- ---------- 12 AMLI RESIDENTIAL STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended March 31 (Dollars in thousands) Consolidated (a) Combined (b) ----------------------- ----------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- OPERATING EARNINGS. . . . . . . . . . . . . . . . . . 7,598 7,345 7,598 7,345 ADD: Depreciation Wholly-owned communities. . . . . . . . . . . . . . 5,362 5,086 5,362 5,086 Share of partnership communities. . . . . . . . . . 2,868 2,696 2,868 2,696 Gains on sales of rental properties . . . . . . . . . -- -- -- -- Share of Service Companies' amortization of goodwill. -- 104 -- 104 ---------- ---------- ---------- ---------- FUNDS FROM OPERATIONS . . . . . . . . . . . . . . . . $ 15,828 15,231 15,828 15,231 ========== ========== ========== ========== Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. (c) Combined includes other items of partnership operations such as interest income on invested funds, legal, audit and other costs of partnership administration including asset management fees paid to the Company, compensation received in the form of cash flow preference and share of income in excess of the Company's ownership percentage. 13
AMLI RESIDENTIAL BALANCE SHEETS (Unaudited, dollars in thousands)
Consolidated (a) Combined (b) ------------------------- ------------------------- March 31, December 31, March 31, December 31, 2002 2001 2002 2001 ---------- ------------ ---------- ------------ ASSETS Rental apartments Land. . . . . . . . . . . . . . . . . . . . $ 99,784 99,784 150,081 150,187 Depreciable property. . . . . . . . . . . . 646,122 644,627 966,158 964,389 ---------- ---------- ---------- ---------- 745,906 744,411 1,116,239 1,114,576 Less: Accumulated depreciation . . . . . . . (112,501) (107,139) (143,282) (135,052) ---------- ---------- ---------- ---------- 633,405 637,272 972,957 979,524 Rental property held for sale, net of accumulated depreciation. . . . . . . . . . -- -- -- -- Rental apartments under development . . . . . 13,254 10,392 47,327 41,477 Land held for development or sale . . . . . . 43,160 47,611 43,160 47,611 Investment in partnerships. . . . . . . . . . 186,330 184,270 -- -- Cash and cash equivalents . . . . . . . . . . 2,417 5,892 8,530 14,093 Investment in and receivables from the Service Companies . . . . . . . . . . . . . 19,048 15,161 18,914 14,824 Other assets and deferred costs, net. . . . . 16,733 18,404 20,415 22,629 ---------- ---------- ---------- ---------- $ 914,347 919,002 1,111,303 1,120,158 ========== ========== ========== ========== 14 AMLI RESIDENTIAL BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ------------------------- ------------------------- March 31, December 31, March 31, December 31, 2002 2001 2002 2001 ---------- ------------ ---------- ------------ LIABILITIES Debt. . . . . . . . . . . . . . . . . . . . . $ 405,126 399,309 592,300 586,137 Accrued expenses and other liabilities. . . . 20,937 27,943 30,906 42,272 ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . . . . . . . . . . . . . 426,063 427,252 623,206 628,408 ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . . . . . . 93,287 93,287 93,287 93,287 Minority interest . . . . . . . . . . . . . . 67,339 68,186 67,339 68,186 Total Shareholders' Equity. . . . . . . . . . 327,658 330,277 327,658 330,277 ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . . . . . $ 914,347 919,002 1,111,490 1,120,158 ========== ========== ========== ========== Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. 15
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY March 31, 2002 (Unaudited, dollars in thousands)
CONSOLIDATED DEBT (a) --------------------- Weighted Average Years to Type of Percent Interest Maturity Variable of Indebtedness Balance of Total Rate (c) (d) Secured Unsecured Fixed (e) --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages . . . . . $300,876 74.3% 7.1% 7.0 300,876 -- 300,876 -- Construction financing . . . . . -- 0% 0% 0.0 -- -- Tax-exempt debt . . . 50,250 12.4% 2.5% 0.6 9,500 40,750 -- 50,250 Credit facilities (f) . . . . . . . . 54,000 13.3% 7.3% 1.6 -- 54,000 -- 54,000 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $405,126 100.0% 6.6% 5.4 310,376 94,750 300,876 104,250 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 76.6% 23.4% 74% 26% ======= ======= ======= ======= COMBINED DEBT, INCLUDING SHARE OF PARTNERSHIPS (b) -------------------------------------------------- Weighted Average Years to Type of Percent Interest Maturity Variable of Indebtedness Balance of Total Rate (c) (d) Secured Unsecured Fixed (e) --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages . . . . . $483,734 81.7% 7.3% 7.0 483,734 -- 483,734 -- Construction financing . . . . . 4,316 0.7% 3.8% 0.0 4,316 -- 4,316 Tax-exempt debt . . . 50,250 8.5% 2.5% 0.6 9,500 40,750 -- 50,250 Credit facilities (f) . . . . . . . . 54,000 9.1% 7.3% 1.6 -- 54,000 -- 54,000 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $592,300 100.0% 6.8% 5.9 497,550 94,750 483,734 108,566 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 84.0% 16.0% 82% 18% ======= ======= ======= ======= See notes on the following page. 16
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY March 31, 2002 (Unaudited, dollars in thousands)
PREFERRED SHARES ---------------- Number of Out- Current Date Original Shares at standing Dividend Liquidation Security of Issue Issue Issuance Shares Rate Preference ---------------------- --------- -------- --------- -------- -------- ----------- Convertible Preferred Series A 1/30/96 $ 20,000 1,200,000 100,000 (g) 2,021 Convertible Preferred Series B (h) 75,000 3,125,000 3,125,000 (i) 76,500 Convertible Preferred Series D (j) 10/31/01 20,000 800,000 800,000 (k) 20,433 Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. (c) The Weighted Average Interest Rate for variable rate debt reflects (i) the variable rate in effect on the last day of the period (ii) the effective fixed interest rates on swaps and (iii) each financing's respective lender credit spread. (d) Years to Maturity reflects the expiration date of the credit enhancements, not the actual maturity dates of the bond, which are in 2024. 17
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED March 31, 2002 (Unaudited, dollars in thousands) (e) The following summarizes interest rate limitation and swap contracts associated with the Credit Facilities:
Fixed Rate, Excluding Lender Type of Notional Credit Term of Contract Counterparty Amount Spread Contract -------- ------------ -------- ----------- --------------- Swap Merrill Lynch Capital Services, Inc. 10,000 6.216% 11/2/97 - 11/1/02 Swap Merrill Lynch Capital Services, Inc. 10,000 6.029% 11/2/97 - 11/1/02 Swap Merrill Lynch Capital Services, Inc. 20,000 6.145% 2/16/98 - 2/15/03 Swap Wachovia Bank, N.A. 10,000 6.070% 2/19/98 - 2/18/03 Swap Harris Trust & Savings Bank 15,000 6.405% 9/21/99 - 9/20/04 Swap Harris Trust & Savings Bank 10,000 6.438% 3/3/99 - 10/2/04 ------- 75,000 ------- The following summarizes interest rate swap contracts associated with construction financing of AMLI at Seven Bridges, in which the Company owns a 20% interest: 18
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED March 31, 2002 (Unaudited, dollars in thousands)
Fixed Rate, Excluding Lender Type of Notional Credit Term of Contract Counterparty Amount Spread Contract -------- ------------ -------- ----------- ---------------- Swap PNC Bank, N.A. $30,000 4.670% 1/10/03 - 7/10/03 Swap PNC Bank, N.A. 50,000 4.670% 7/10/03 - 8/01/04 (f) The Credit Facilities provide for one additional one-year extension option. The Company's unconsolidated subsidiaries have $14,000 borrowed under the Credit Facilities, which is not reflected in the amount above. Such borrowings are guaranteed by the Company and reduce total availability under the line of credit. (g) The dividend per share is equal to the common share dividend. (h) Funded in three installments of $25 million each on 3/9/98, 6/30/98 and 9/30/98. (i) The dividend per share is the greater of an annualized (i) $1.84 per share or (ii) the amount payable on the common shares. (j) 800,000 preferred shares were issued at $25 per share. These shares may be converted to 720,721 common shares, reflecting a conversion price of $27.75 per common share. (k) The dividend per share is the greater of an annualized (i) $2.1625 per share or (ii) the amount payable on the common shares. 19
AMLI RESIDENTIAL DEBT MATURITIES March 31, 2002 (Unaudited, dollars in thousands)
CONSOLIDATED DEBT (a) --------------------- Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt ---------- ------------ ----------- ----------- ----------- ------------ 2002 $ 3,679 -- 3,679 0.9% 0.0% 2003 4,367 111,447(c) 115,814 28.6% 7.3% 2004 3,775 6,970 10,745 2.7% 7.7% 2005 3,806 31,006 34,812 8.6% 8.2% 2006 2,751 35,372 38,123 9.4% 7.8% Thereafter 21,493 180,460(d) 201,953 49.8% 6.7% -------- ------- ------- ------ ----- Total $ 39,871 365,255 405,126 100.0% 6.6% ======== ======= ======= ====== ===== Percent to Total 9.8% 90.2% 100.0% ======== ======= ======= COMBINED DEBT, INCLUDING SHARE OF PARTNERSHIPS (b) -------------------------------------------------- Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt ---------- ------------ ----------- ----------- ----------- ------------ 2002 $ 5,309 4,904 10,213 1.7% 5.6% 2003 6,497 126,450(c) 132,947 22.5% 7.2% 2004 5,767 14,863 20,630 3.5% 7.6% 2005 5,894 32,090 37,984 6.4% 8.1% 2006 5,026 66,793 71,819 12.1% 7.6% Thereafter 32,715 285,992(d) 318,707 53.8% 7.0% -------- ------- ------- ------ ----- Total $ 61,208 531,092 592,300 100.0% 6.8% ======== ======= ======= ====== ===== Percent to Total 10.3% 89.7% 100.0% ======== ======= ======= 20 AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED March 31, 2002 (Unaudited, dollars in thousands) Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. (c) The Company's primary unsecured line of credit, which has a current maturity of November, 2003, provides for one additional one-year extension option. (d) Includes Bonds which mature in 2024. The credit enhancements on $40,750 and $9,500 expire on October 15, 2002 and on December 18, 2002, respectively. 21
AMLI RESIDENTIAL SAME STORE COMMUNITIES FIRST QUARTER COMPARISONS
OCCUPANCY AND RENTAL RATES -------------------------- Weighted Average Occupancy Weighted Average Rental Rate -------------------------------- -------------------------------- Apartment Percent Percent Market Homes 2002 2001 Change 2002 2001 Change ------ --------- -------- -------- -------- -------- -------- -------- Dallas 7,216 91.6% 92.9% -1.4% $ 790 777 1.7% Atlanta 5,285 90.8% 93.4% -2.8% 861 871 -1.2% Austin 2,797 91.7% 88.7% 3.4% 839 917 -8.5% Houston 1,871 91.8% 91.8% 0.0% 908 851 6.7% Indianapolis 1,752 90.4% 86.9% 4.1% 732 722 1.3% Kansas City 2,086 90.0% 87.1% 3.3% 811 853 -5.0% Chicago 2,760 87.1% 94.8% -8.1% 1,063 1,063 0.0% Denver 414 89.4% 87.3% 2.4% 1,109 1,155 -4.0% ------- ------ ------ ------ ------ ------ ------ Total 24,181 90.7% 91.6% -1.0% 854 861 -0.8% ======= ====== ====== ====== ====== ====== ====== 22
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED FIRST QUARTER COMPARISONS
REVENUES EXPENSES AND NET OPERATING INCOME (dollars in thousands) ------------------------------------------ Revenues Expenses Net Operating Income ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent Market 2002 2001 Change 2002 2001 Change 2002 2001 Change ------ -------- -------- -------- -------- -------- -------- -------- -------- -------- Dallas $ 16,503 16,390 0.7% 6,934 6,793 2.1% 9,568 9,598 -0.3% Atlanta 13,059 13,677 -4.5% 4,526 4,728 -4.3% 8,533 8,949 -4.7% Austin 6,840 7,169 -4.6% 2,831 2,866 -1.2% 4,009 4,303 -6.8% Houston 4,948 4,590 7.8% 2,085 2,037 2.4% 2,863 2,554 12.1% Indianapolis 3,664 3,538 3.6% 1,362 1,305 4.4% 2,302 2,233 3.1% Kansas City 4,897 4,797 2.1% 1,714 1,713 0.0% 3,183 3,084 3.2% Chicago 8,344 8,857 -5.8% 2,999 2,939 2.0% 5,346 5,919 -9.7% Denver 1,284 1,309 -1.9% 346 380 -9.0% 938 930 0.9% -------- -------- -------- -------- -------- -------- -------- -------- -------- Total $ 59,539 60,328 -1.3% 22,797 22,761 0.2% 36,742 37,570 -2.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: Information shown is Combined, including share of partnership communities at 100%. 23
AMLI RESIDENTIAL COMPONENTS OF NOI QUARTERLY COMPARISONS (Dollars in thousands)
Partnership Communities Wholly-Owned Communities Combined (e) at 100% -------------------------- -------------------------- -------------------------- Percent Percent Percent Market 2002 2001 Change 2002 2001 Change 2002 2001 Change ------ -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (a). . . . 25,592 25,474 0.5% 36,504 36,696 -0.5% 33,948 34,854 -2.6% New communities (b) . . 0 0 0.0% 763 644 18.4% 2,623 2,166 21.1% Communities under development and lease-up . . . . . . . 0 0 0.0% 412 40 921.3% 1,633 162 911.1% Acquisition communities (c). . . . 3,053 618 394.3% 4,051 1,264 220.7% 1,453 940 54.7% Communities sold/ contributed to ventures (d) . . . . . 0 2,244 -100.0% -- 2,844 -100.0% 874 2,350 -62.8% -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . 28,645 28,336 1.1% 41,731 41,488 0.6% 40,531 40,472 0.1% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (a). . . . 9,685 9,739 -0.6% 13,917 13,936 -0.1% 13,111 13,020 0.7% New communities (b) . . 0 0 0.0% 268 270 -1.0% 915 927 -1.3% Communities under development and lease-up . . . . . . . 0 0 0.0% 237 63 279.3% 942 250 276.8% Acquisition communities (c). . . . 1,264 174 626.3% 1,642 385 325.6% 550 308 78.6% Communities sold/ contributed to ventures (d) . . . . . 0 904 -100.0% -- 1,095 -100.0% 388 898 -56.8 -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . 10,949 10,817 1.2% 16,064 15,749 2.0% 15,906 15,403 3.3% ======== ======== ======== ======== ======== ======== ======== ======== ======== 24 AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTERLY COMPARISONS (Dollars in thousands) Partnership Communities Wholly-Owned Communities Combined (e) at 100% -------------------------- -------------------------- -------------------------- Percent Percent Percent Market 2002 2001 Change 2002 2001 Change 2002 2001 Change ------ -------- -------- -------- -------- -------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (a). . . . 15,907 15,735 1.1% 22,587 22,760 -0.8% 20,837 21,834 -4.6% New communities (b) . . 0 0 0.0% 495 374 32.4% 1,708 1,239 37.9% Communities under development and lease-up . . . . . . . 0 0 0.0% 175 (22) -892.5% 691 (88) -881.8% Acquisition communities (c). . . . 1,789 444 303.5% 2,412 878 174.6% 903 632 43.0% Communities sold/ contributed to ventures (d) . . . . . 0 1,340 -100.0% -- 1,749 -100.0% 486 1,452 -66.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . 17,696 17,519 1.0% 25,669 25,739 -0.3% 24,625 25,069 -1.8% ======== ======== ======== ======== ======== ======== ======== Cash flow preference and promote (e). . . . 622 537 -------- -------- COMPANY'S SHARE OF NOI (f). . . . . . 26,291 26,276 ======== ======== COMPANY'S PERCENTAGE OF PARTNERSHIPS' NOI: Before cash flow preferences (e). . . . 60.7% 60.4% Including cash flow preferences (f). . . . 62.1% 61.7% ======== ======== 25 AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTERLY COMPARISONS (Dollars in thousands) Note (a) Same store communities are communities that have had stabilized operations and were owned by the Company as of January 1, 2001. (b) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2001. (c) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2001. (d) Reflects operations through the date of sale. Prior to the date of contribution of the community to a joint venture, the operating results of such communities were disclosed under wholly-owned communities. (e) The terms of certain partnership agreements provide that the Company is entitled to an additional share of such partnership's NOI in addition to the Company's proportionate ownership percentage. See page 24. (f) Based on Company's ownership share of each partnership's NOI. Reflect only property operations. Excludes other items of partnership operations such as interest income on invested funds, legal, accounting, audit and other costs of partnership administration, including asset management fees paid to the Company. see page 24. (g) Company's 100% interest in wholly-owned communities plus the Company's share of partnership communities. 26
AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION (Dollars in thousands) Three Months Ended March 31, ----------------------- 2002 2001 ---------- ---------- FEE INCOME (a) Acquisition fees (a). . . . . . . . . . . . . $ -- 118 Asset management fees (b) . . . . . . . . . . 129 143 Disposition fees (c). . . . . . . . . . . . . -- -- Debt/equity placement fees. . . . . . . . . . -- 113 Development fees (a). . . . . . . . . . . . . 458 251 ---------- ---------- 587 624 ---------- ---------- SHARE OF CASH FLOW (d) Promoted interest from operating cash flow. . 106 26 Cash flow preferences (e) . . . . . . . . . . 516 511 ---------- ---------- 622 537 ---------- ---------- Promoted interest from sale or refinancing. . 110 -- ---------- ---------- TOTAL . . . . . . . . . . . . . . . . . . $ 1,319 1,161 ========== ========== Notes: (a) Acquisition, debt/equity placement and development fees are shown net of elimination of Company's share. Property management, construction and certain asset management fees are earned by the Company's subsidiaries. See page 28. (b) Asset management fees are shown at 100%. The Company's share of partnerships' EBITDA is reduced by its share of this fee. (c) Disposition fees are shown at 100% as reported gains on sale have been reduced for this cost. (d) See page 25. (e) The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. 27 AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS ------------------------------------------- Three Months Ended March 31, ----------------------- 2002 2001 ---------- ---------- REVENUES Property management fees (a). . . . . . . . . $ 2,691 2,502 General contract revenue, net (b) . . . . . . 633 515 Gross profit - corporate homes (c). . . . . . 346 305 Other income. . . . . . . . . . . . . . . . . 122 190 ---------- ---------- 3,792 3,512 OPERATING EXPENSES Property management . . . . . . . . . . . . . 2,508 2,414 Corporate homes . . . . . . . . . . . . . . . 242 227 General contractor. . . . . . . . . . . . . . 550 506 Other expenses. . . . . . . . . . . . . . . . -- -- ---------- ---------- 3,300 3,147 EBITDA. . . . . . . . . . . . . . . . . . . . 492 365 Gain (loss) on land sales . . . . . . . . . . (73) -- Interest expense. . . . . . . . . . . . . . . (409) (698) Depreciation and amortization . . . . . . . . (716) (575) Taxes . . . . . . . . . . . . . . . . . . . . 268 345 ---------- ---------- NET INCOME (LOSS) . . . . . . . . . . . . . . (438) (563) Eliminations, interest and other. . . . . . . 208 160 ---------- ---------- SHARE OF INCOME (LOSS) FROM SERVICE COMPANIES (D) . . . . . . . . . . . (230) (403) ========== ========== Notes: (a) Includes a 3% fee from wholly-owned communities. (b) General contractor revenues are shown net of gross billings and payments to subcontractors. (c) Gross revenues from customers less payments to communities and cost of sales. (d) See Company's Consolidated Statements of Operations. 28 AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED FINANCIAL POSITION ------------------------------------- March 31, December 31, 2002 2001 ---------- ------------ ASSETS: Receivables (a) . . . . . . . . . . . . . $ 7,771 9,136 Land held for sale (b). . . . . . . . . . 8,005 4,951 Building and equipment, net (c) . . . . . 11,298 10,847 Other . . . . . . . . . . . . . . . . . . 10,625 9,911 ---------- ---------- TOTAL ASSETS. . . . . . . . . . . . . $ 37,699 34,845 ========== ========== LIABILITIES Due to the Company. . . . . . . . . . . . $ 21,692 17,311 Bank debt . . . . . . . . . . . . . . . . 14,000 14,000 Other . . . . . . . . . . . . . . . . . . 4,348 5,733 ---------- ---------- TOTAL LIABILITIES . . . . . . . . . . $ 40,040 37,044 ========== ========== EQUITY (DEFICIT). . . . . . . . . . . . . $ (2,341) (2,199) Eliminations and other. . . . . . . . . . (303) 49 Due to Company (above). . . . . . . . . . 21,692 17,311 ---------- ---------- Investment in and receivables from the Service Companies . . . . . . . . . $ 19,048 15,161 ========== ========== Notes: (a) Primarily fee income from affiliates. (b) Represents non-apartment land holdings. (c) Includes $8,384 in capitalized computer hardware and software cost, of which approximately $6,500 (including $800 of internal costs) was incurred in 2001. Amounts are generally amortized over five years. 29 AMLI RESIDENTIAL STABILIZED March 31, 2002
Percent AMLI's Number of of Ownership Year Year Apartment Portfolio Components Market/Community Percentage Location Acquired Completed Homes (a) of NOI ---------------- ---------- -------- ---------- --------- --------- --------- ---------- DALLAS/ FT. WORTH, TX ------------- AMLI: at Bent Tree 100% Dallas, TX 1997 1996/2000 500 Same Store at Bishop's Gate 100% Plano, TX 1997 1997 266 Same Store at Breckinridge Point 45% Richardson, TX 2000 1999 440 Same Store at Chase Oaks 100% Plano, TX 1994 1986 250 Same Store at Deerfield 25% Plano, TX Developed 2000 240 Same Store at Fossil Creek 25% Ft. Worth, TX Developed 1998 384 Same Store on Frankford 45% Dallas, TX 2000 1998 582 Same Store at Gleneagles 100% Dallas, TX 1998 1987/97 590 Same Store on the Green 100% Ft. Worth, TX 1994 1990/93 424 Same Store at Nantucket 100% Dallas, TX 1988 1986 312 Same Store of North Dallas 100% Dallas, TX 1989/90 1985/86 1,032 Same Store at Oak Bend 40% Dallas, TX 1999 1997 426 Same Store on the Parkway 25% Dallas, TX Developed 1999 240 Same Store at Prestonwood Hills 45% Dallas, TX 1999 1997 272 Same Store at Shadow Ridge 100% Flower Mount, TX 2001 2000 222 Acquisition Community at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 Acquisition Community on Timberglen 40% Dallas, TX 1990 1985 260 Same Store at Valley Ranch 100% Irving, TX 1990 1985 460 Same Store at Verandah 35% Arlington, TX 1997 1986/91 538 Same Store ------ 7,688 28.2% ------ 30 AMLI RESIDENTIAL STABILIZED - CONTINUED (Dollars in thousands) Percent AMLI's Number of of Ownership Year Year Apartment Portfolio Components Market/Community Percentage Location Acquired Completed Homes (a) of NOI ---------------- ---------- -------- ---------- --------- --------- --------- ---------- ATLANTA, GA ------------ AMLI: at Barrett Lakes 35% Kennesaw, GA Developed 1997 446 Same Store at Clairmont 100% Atlanta, GA 1988 1988 288 Same Store at Killian Creek 100% Snellville, GA Developed 1999 256 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 Same Store at Northwinds 35% Alpharetta, GA Developed 1999 800 Same Store at Park Bridge 25% Alpharetta, GA Developed 2000 352 New Community at Park Creek 100% Gainesville, GA Developed 1998 200 Same Store at Peachtree City 20% Fayette County, GA Developed 1998 312 Same Store at River Park 40% Norcross, GA Developed 1997 222 Same Store at Spring Creek 100% Atlanta, GA Developed 1985/86 /87/89 1,180 Same Store at Towne Creek 100% Gainesville, GA Developed 1989 150 Same Store at Vinings 100% Smyrma, GA 1992/97 1985 360 Same Store at West Paces 100% Atlanta, GA 1993 1992 337 Same Store at Willeo Creek 30% Roswell, GA 1995 1989 242 Same Store at Windward Park 45% Alpharetta, GA 1999 1999 328 Same Store ------ 5,637 20.7% ------ CHICAGO, IL ----------- AMLI: at Chevy Chase 33% Buffalo Grove, IL 1996 1988 592 Same Store at Danada Farms 10% Wheaton, IL 1997 1989/91 600 Same Store at Fox Valley 25% Aurora, IL Developed 1998 272 Same Store at Oakhurst North 25% Aurora, IL Developed 2000 464 Same Store at Osprey Lake 69% Gurnee, IL 2001 1997/99 483 Acquisition Community at Poplar Creek 100% Schaumburg, IL 1997 1985 196 Same Store at St. Charles 25% St. Charles, IL Developed 2000 400 Same Store at Windbrooke 15% Buffalo Grove, IL 1995 1987 236 Same Store ------ 3,243 11.9% ------ 31 AMLI RESIDENTIAL STABILIZED - CONTINUED (Dollars in thousands) Percent AMLI's Number of of Ownership Year Year Apartment Portfolio Components Market/Community Percentage Location Acquired Completed Homes (a) of NOI ---------------- ---------- -------- ---------- --------- --------- --------- ---------- AUSTIN, TX ---------- AMLI: in Great Hills 100% Austin, TX 1991 1985 344 Same Store at Lantana Ridge 100% Austin, TX 1997 1997 354 Same Store at Monterey Oaks 25% Austin, TX Developed 2000 430 Same Store at Scofield Ridge 45% Austin, TX 2000 2000 487 Same Store at StoneHollow 100% Austin, TX 2000 1997 606 Same Store at Wells Branch 25% Austin, TX Developed 1999 576 Same Store ------ 2,797 10.3% ------ KANSAS CITY, KS --------------- AMLI: at Centennial Park 100% Overland Park, KS 1998 1997 170 Same Store Creekside 25% Overland Park, KS Developed 2000 224 Same Store at Lexington Farms 100% Overland Park, KS 1998 1998 404 Same Store at Regents Center 100% Overland Park, KS 1994 1991/95 /97 424 Same Store at Regents Crest 25% Overland Park, KS 1997 1997/2000 476 Same Store at Summit Ridge 30% Lees Summit, MO Developed 2001 432 New Community at Town Center 100% Overland Park, KS 1997 1997 156 Same Store at Wynnewood Farms 25% Overland Park, KS Developed 2000 232 Same Store ------ 2,518 9.2% ------ INDIANAPOLIS, IN ---------------- AMLI: at Castle Creek 40% Indianapolis, IN Developed 2000 276 New Community at Conner Farms 100% Fishers, IN 1997 1993 300 Same Store at Eagle Creek 100% Indianapolis, IN 1998 1998 240 Same Store at Lake Clearwater 25% Indianapolis, IN Developed 1999 216 Same Store at Riverbend 100% Indianapolis, IN 1992/93 1983/85 996 Same Store at Spring Mill (residual) 20% Carmel, IN 1999 1999 400 Other ------ 2,428 8.9% ------ 32 AMLI RESIDENTIAL STABILIZED - CONTINUED (Dollars in thousands) Percent AMLI's Number of of Ownership Year Year Apartment Portfolio Components Market/Community Percentage Location Acquired Completed Homes (a) of NOI ---------------- ---------- -------- ---------- --------- --------- --------- ---------- HOUSTON, TX ----------- AMLI: at Champions Centre* 15% Houston, TX 1994 1994 192 Same Store at Champions Park* 15% Houston, TX 1994 1991 246 Same Store at Greenwood Forest* 15% Houston, TX 1995 1995 316 Same Store at the Medical Center 100% Houston, TX 2001 2000 334 Acquisition Community Midtown 45% Houston, TX 2000 1998 419 Same Store Towne Square 45% Houston, TX 2000 1999 380 Same Store at Western Ridge 100% Houston, TX 2000 2000 318 Same Store ------ 2,205 8.1% ------ DENVER, CO ---------- AMLI: at Lowry Estates 50% Denver, CO 2000 2000 414 Same Store at Gateway Park 100% Denver, CO 2000 2000 328 Acquisition ------ Community 742 2.7% ------ ------ TOTAL 27,258 100.0% ====== ====== Note: (a) Based on number of apartment homes. 33
AMLI RESIDENTIAL DEVELOPMENT SUMMARY March 31, 2002 (Dollars in thousands)
Number Percen- of Con- Anti- Anti- Number of tage of Apart- struc- First pated pated Apartment Percent Percent Owner- ment tion Units Comple- Stabil- Homes Complete Leased Market/Community Submarket ship Homes Started Occupied tion ization Delivered (a) (b) ---------------- --------- ------- ------ ------- -------- ------- ------- --------- -------- ------- ATLANTA, GA ----------- AMLI: at Mill Creek Gwinnett County, GA 25% 400 3Q/99 3Q/00 4Q/01 2Q/02 400 100% 100% at Kedron Village Peachtree City, GA 20% 216 3Q/00 3Q/01 2Q/02 4Q/02 158 97% 47% at Milton Park Alpharetta, GA 25% 461 4Q/00 1Q/02 1Q/03 4Q/03 38 46% 9% at Barrett Walk Kennesaw, GA 25% 310 4Q/01 4Q/02 2Q/03 1Q/04 0 11% N/A HOUSTON, TX ----------- AMLI at Kings Harbor Lake Houston, TX 25% 300 2Q/00 1Q/01 4Q/01 3Q/02 300 100% 81% KANSAS CITY, KS --------------- AMLI at Cambridge Square Overland Park, KS 30% 408 3Q/00 3Q/01 2Q/02 2Q/03 198 90% 38% INDIANAPOLIS, IN ---------------- AMLI Carmel Center Carmel, IN 100% 322 2Q/01 2Q/02 2Q/03 3Q/03 -- 35% N/A CHICAGO, IL ----------- AMLI at Seven Bridges Woodridge, IL 20% 520 3Q/01 4Q/02 4Q/03 4Q/04 -- 25% N/A ----- Total 2,937 ===== 34
AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED March 31, 2002 (Dollars in thousands)
Joint Venture Company's Share of Required Equity Capital Partners' -------------------------------------------- Total Fully Equity Development Funded Capital Funded Balance Market/Community Costs (c) Debt (d) (e) Total to Date of 2002 2003 ---------------- ----------- ---------- --------- -------- -------- ---------- -------- ATLANTA, GA ----------- AMLI: at Mill Creek $ 25,800 18,000(e) 5,850 1,950 6,450 (4,500) at Kedron Village 20,200 -- 16,160 4,040 200 3,840(f) 600 at Milton Park 35,000 -- 26,250 8,750 4,900 3,250 600 at Barrett Walk 22,500 -- 16,875 5,625 1,400 2,125 2,100 HOUSTON, TX ----------- AMLI at Kings Harbor 19,800 -- 14,850 4,950 4,900 50 KANSAS CITY, KS --------------- AMLI at Cambridge Square 32,200 -- (g) 22,540 9,660 9,270 390 INDIANAPOLIS, IN ---------------- AMLI Carmel Center 28,400 -- -- 28,400 13,250 10,250 4,900 CHICAGO, IL AMLI at Seven Bridges 82,200 60,000(h) 22,560 5,640 3,220 -- 2,420 -------- ------- ------- ------- ------- ------- ------- TOTAL $266,100 78,000 125,085 69,015 43,590 15,405 10,620 ======== ======= ======= ======= ======= ======= ======= 35 AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED March 31, 2002 (Dollars in thousands) Notes: (a) Represents costs to date divided by Total Development Costs. (b) Represents number of leased apartments (not necessarily occupied) divided by the Number of Apartment Homes Delivered. (c) Includes anticipated costs of development and initial lease-up, of which certain amounts may not be capitalized. (d) Represents anticipated fully funded permanent loan, which will encumber the property upon completion and stabilization. (e) Subsequent to the end of the quarter, the partnership funded a 6.4%, 7-year permanent loan. (f) Property is currently subject to a construction financing, which is anticipated to be paid off at completion. (g) Upon stabilization, the partnership will obtain a permanent loan for approximately 65% of total costs. (h) The partnership has obtained a commitment to fund a 7.25%, 7-year permanent loan upon completion of development. The following is a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995 and Section 21 E of the Securities Exchange Act of 1934. The projections contained in this table 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 of improvements to bring an acquired property up to the standards established for the market position intended for that property may prove inaccurate. 36
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE Number of Apartment Market/Community Submarket Homes ---------------- --------- --------- INDIANAPOLIS, IN ---------------- AMLI: at Prairie Lakes Noblesville 228 at Prairie Lakes (Phase II-IV) Noblesville 1,100 AUSTIN, TX ---------- AMLI at Anderson Mill Northwest Austin 520 Downtown Austin - Block 20 CBD 220 AMLI at Parmer Park North Austin 480 FORT WORTH, TX -------------- AMLI at Mesa Ridge North Fort Worth 460 DALLAS, TX ---------- AMLI at Vista Ridge Lewisville, TX 340 HOUSTON, TX ----------- AMLI at Champions II Northwest Houston 288 KANSAS CITY, KS --------------- AMLI: at Lexington Farms - Phase II Overland Park 104 at Westwood Ridge Overland Park 428 ------ Total 4,168 ====== 37