-----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, GMJtu19YkBfmLm2Woa2VyXq9aHWF4EKNXuf4wtNdbfhTWG6JtEzx8tYKnrKMJvWm i2LHi7NbrBWoYneYl2d8Vg== 0000892626-03-000288.txt : 20030729 0000892626-03-000288.hdr.sgml : 20030729 20030729164617 ACCESSION NUMBER: 0000892626-03-000288 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030729 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMLI RESIDENTIAL PROPERTIES TRUST CENTRAL INDEX KEY: 0000914724 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 363925916 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12784 FILM NUMBER: 03809110 BUSINESS ADDRESS: STREET 1: 125 S WACKER DR STREET 2: STE 3100 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124431477 MAIL ADDRESS: STREET 1: 125 S WACKER DR STREET 2: STE 3100 CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: AMLI RESIDENTIAL PROPERTIES INC DATE OF NAME CHANGE: 19931112 8-K 1 aml_4349.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): July 29, 2003 AMLI RESIDENTIAL PROPERTIES TRUST ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Maryland ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-12784 36-3925916 ------------------------ ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) 125 South Wacker Drive, Suite 3100, Chicago, Illinois 60606 - ---------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) (312) 443-1477 ---------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Not Applicable ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1 News Release, dated July 29, 2003 incorporated herein by reference. 99.2 Second Quarter 2003 Supplemental Operating and Financial Data. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION (PROVIDED UNDER "ITEM 9. REGULATION FD DISCLOSURE") The information required by Item 12 is being provided under Item 9 pursuant to SEC interim filing guidance provided in SEC press release No. 2003-41. The information contained in this Form 8-K is furnished under "Item 12. Results of Operations and Financial Condition" in accordance with SEC Release 33-8216. The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. On July 29, 2003, AMLI Residential Properties Trust ("AMLI") issued a News Release announcing its earnings for the second quarter of 2003. A copy of the News Release is attached as Exhibit 99.1 to this Report. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMLI RESIDENTIAL PROPERTIES TRUST Dated: July 29, 2003 By: /s/ ROBERT J. CHAPMAN ----------------------------- Robert J. Chapman Chief Financial Officer 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ------ ----------- 99.1 News Release, dated July 29, 2003 incorporated herein by reference. 99.2 Second Quarter 2003 Supplemental Operating and Financial Data. 4 EX-99.1 3 exh_991.txt EXHIBIT 99.1 - ------------ 125 South Wacker Drive AMLI RESIDENTIAL Suite 3100 Chicago, Illinois 60606 Phone: 312.443.1477 Fax: 312.443.0909 www.amli.com PRESS RELEASE FOR IMMEDIATE RELEASE For More Information, Contact: July 29, 2003 Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES SECOND QUARTER 2003 OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the second quarter ended June 30, 2003. EARNINGS - -------- Funds From Operations ("FFO") for the second quarter 2003 were $12,980,000, or $0.53 per common share, compared to $16,105,000, or $0.62 per common share, for the second quarter 2002, a per share decrease of 14.5%. FFO is $0.01 higher than First Call's current estimate and in line with the Company's prior guidance. FFO for the six months ended June 30, 2003 was $25,697,000, or $1.05 per share, compared to $31,933,000, or $1.23 per share, for the six months ended June 30, 2002, a per share decrease of 14.6%. Net income for the quarter and the six months ended June 30, 2003 was $2,928,000 and $6,636,000, respectively, as compared to $7,291,000 and $13,951,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended June 30, 2003 was $0.06, compared to $0.29 for the comparable period of 2002, a decrease of 79.3%. For the six months ended June 30, 2003, EPS was $0.16 compared to $0.54 for the comparable period of 2002, a decrease of 70.4%. "Although actual results were consistent with our expectations, earnings for the current quarter compared to last year were lower due to decreases in same community revenue, reflecting the pressure felt by the apartment industry last year, and less co-investment fee income, driven by fewer acquisitions and dispositions," commented Allan J. Sweet, AMLI President. "The second quarter brought with it some positive news as it was the first in some time to show a sequential increase in same community revenue in all of our markets, making us optimistic that the bottom is close at hand." SAME COMMUNITY RESULTS - ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended June 30, 2003 versus the prior year's quarter, total community revenue decreased 3.5%, operating expenses increased 2.3%, and net operating income ("NOI") decreased 7.4%. Weighted average occupancy, quarter over comparable quarter, decreased slightly from 91.4% to 91.2%, while the weighted average collected revenue decreased by 3.6%. 1 OTHER OPERATING RESULTS - ----------------------- Total community revenue, including both wholly-owned communities and co- investment communities (at 100%) were $70,374,000 and $138,587,000, respectively, for the quarter and six months ended June 30, 2003, as compared with $70,448,000 and $139,624,000 for the comparable period in 2002, a 0.1% and 0.7% decrease, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and six months ended June 30, 2003 were $23,592,000 and $47,194,000, respectively, representing decreases of 8.9% and 7.7%, respectively, from the same period last year. Net income and EPS for the three and six-month periods ended June 30, 2003 included a non-cash one-time impairment charge of an investment in a partnership, accounting for a substantial portion of the decrease from comparable periods in 2002. SECOND QUARTER ACTIVITIES - ------------------------- During the second quarter, AMLI entered into a joint venture with The Northwestern Mutual Life Insurance Company to develop and own AMLI at Museum Gardens, a 294-unit luxury apartment community in Vernon Hills, Illinois. AMLI has commenced construction on the community and the first apartment homes are expected to be available for occupancy in the third quarter of 2004 with stabilization scheduled for the first quarter of 2006. In May, AMLI entered into a new $200 million unsecured line of credit with a three-year term and a one-year extension option. This facility, which is available to fund acquisition and development activities and general working capital needs, replaces AMLI's previous $200 million unsecured line of credit. During the quarter, initial lease-up was completed and stabilization was achieved at AMLI at Barrett Walk in Kennesaw, Georgia and AMLI at Cambridge Square in Overland Park, Kansas. OUTLOOK - ------- AMLI's current expectation for FFO of $1.10 per share for the remaining two quarters of 2003 remains the same as the Company's prior guidance. DIVIDEND - -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on August 19, 2003 to all common shareholders of record as of August 8, 2003 and is based on an annual dividend rate of $1.92 per common share. CONFERENCE CALL - --------------- AMLI will hold a conference call on Wednesday, July 30, 2003 at 3:30 p.m. ET to review these results. The call may be joined by calling 877-922-1802 - - Passcode: AMLI. A live webcast of the conference call will also be available in the 'Company Info' section on AMLI's website (www.amli.com/comp/) and at www.streetevents.com. SUPPLEMENTAL INFORMATION - ------------------------ AMLI produces Quarterly Supplemental Information that provides detailed information regarding the Company's activities during the quarter. The Second Quarter Supplemental Information is available in the 'Company Info' section on our website (www.amli.com/comp/) under 'Shareholder Reports.' 2 DEFINITIONS - ----------- This press release and the Quarterly Supplemental Information described above contain certain non-GAAP ("Generally Accepted Accounting Principles") information that is generally provided by most publicly-traded residential REITs and that we believe may be of interest and use to the investment community. Except where indicated, community revenue, community expenses, net operating income ("NOI") and earnings before interest, taxes, depreciation and amortization ("EBITDA") are computed based on various line items included in our consolidated statements of income prepared in accordance with GAAP. Where indicated, this information is presented on a basis that includes AMLI's proportionate share of the non-GAAP financial measures of its co-investment partnerships. Reconciliations of all non-GAAP financial measures to GAAP financial measures are included in the Company's Quarterly Supplemental Financial information, primarily pages 8, 9, and 15. COMMUNITY REVENUE comprises that portion of total revenue collected or due from leases at AMLI's rental communities and includes any such amounts as may be reported as discontinued operations. COMMUNITY EXPENSES comprise that portion of total expenses that exclude losses from sales or valuation of land, expenses of the Service Companies, general and administrative expense, and interest, taxes, depreciation and amortization. Community operating expenses include amounts reported as personnel, advertising and promotion, utilities, building repairs and maintenance and services, landscaping and grounds maintenance, real estates taxes, insurance, property management, and other operating expenses, and such amounts as may be included in discontinued operations. NOI from one community is the community revenue less the community expenses for that property. NOI for all communities is the community revenue from all communities less the community expenses for all communities. EBITDA is NOI (including AMLI's proportionate share of the NOI of its co- investment partnerships) plus all fees and interest income and income from the Service Companies and gains or losses from sales or valuation of land and other income, less general and administration expense. FUNDS FROM OPERATIONS ("FFO") is EBITDA less interest expense (including AMLI's proportionate share of the interest expense of its co-investment partnerships and amortization of deferred financing expense) and any income taxes. FFO PER SHARE is FFO divided by the fully-diluted number of Operating Partnership Units outstanding. FFO is always presented on a fully-diluted basis only. ADJUSTED FUNDS FROM OPERATIONS ("AFFO") is FFO less expenditures capitalized (excluding expenditures capitalized relating to the development of new property, the acquisition of additional property, or the rehab of existing property, but including AMLI's proportionate share of such expenditures capitalized by its co-investment partnerships). AFFO PER SHARE is AFFO divided by the fully-diluted number of Operating Partnership Units outstanding. AFFO per share is always presented on a fully-diluted basis only. SAME COMMUNITY INFORMATION includes only such portions of community revenue, expenses, NOI or EBITDA as are generated from AMLI's same community universe, which changes each January 1 as communities with one full year of stabilized operations as of that date are added, and which may change quarterly thereafter as any components of the same community universe are sold or contributed to co-investment partnerships. 3 ABOUT AMLI - ---------- The AMLI portfolio currently includes 75 apartment communities containing 28,531 apartment homes, with an additional 1,817 apartment homes under development or in lease-up in five locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain regions 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 850 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. 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 judgment 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, 2002. # # # # 4 EX-99.2 4 exh_992.txt EXHIBIT 99.2 - ------------ AMLI RESIDENTIAL ------------------------------------------------------------ SECOND QUARTER 2003 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI at Barrett Walk - Atlanta, GA Stabilized Second Quarter 2003" ] AMLI RESIDENTIAL PROPERTIES TRUST 125 South Wacker Drive Suite 3100 Chicago, Illinois 60606 Phone: (312) 443-1477 Fax: (312) 443-0909 www.amli.com ------------ Certain matters discussed in this supplemental package and the conference call held in connection herewith 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. The Company is making forward looking statements, because it believes that 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 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 risk 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, 2002. AMLI RESIDENTIAL TABLE OF CONTENTS Page ---- SUMMARY INFORMATION Company Description and Investor Information. . . . . . . . 1 Earnings Release. . . . . . . . . . . . . . . . . . . . . . 2 Selected Financial and Operating Information. . . . . . . . 6 Funds From Operations . . . . . . . . . . . . . . . . . . . 12 Statements of Operations. . . . . . . . . . . . . . . . . . 14 Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . 20 DEBT AND PREFERRED SHARES Debt and Preferred Shares Summary . . . . . . . . . . . . . 23 Debt Maturities . . . . . . . . . . . . . . . . . . . . . . 27 SAME STORE AND NOI DATA Quarterly Comparison of Same Store Communities. . . . . . . 29 Quarterly Comparison of Components of NOI . . . . . . . . . 36 OTHER DATA Co-Investment Compensation. . . . . . . . . . . . . . . . . 42 Service Companies Financial Information . . . . . . . . . . 44 PORTFOLIO Stabilized Communities. . . . . . . . . . . . . . . . . . . 47 Development Summary . . . . . . . . . . . . . . . . . . . . 51 Land Held for Development or Sale . . . . . . . . . . . . . 55 Second Quarter 2003 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPANY DESCRIPTION INVESTOR INFORMATION AMLI Residential (or AMLI) is an integrated, self-managed real estate operating company that was formed in February 1994 to continue and expand the multifamily property business previously conducted by AMLI Realty Co., our 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, the 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 [registered trademark] 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 850 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 of 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 Second Quarter 2003 Page 1 Supplemental Information AMLI Residential Properties Trust 125 South Wacker Drive AMLI RESIDENTIAL Suite 3100 Chicago, Illinois 60606 Phone: 312.443.1477 Fax: 312.443.0909 www.amli.com PRESS RELEASE FOR IMMEDIATE RELEASE For More Information, Contact: July 29, 2003 Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES SECOND QUARTER 2003 OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the second quarter ended June 30, 2003. EARNINGS - -------- Funds From Operations ("FFO") for the second quarter 2003 were $12,980,000, or $0.53 per common share, compared to $16,105,000, or $0.62 per common share, for the second quarter 2002, a per share decrease of 14.5%. FFO is $0.01 higher than First Call's current estimate and in line with the Company's prior guidance. FFO for the six months ended June 30, 2003 was $25,697,000, or $1.05 per share, compared to $31,933,000, or $1.23 per share, for the six months ended June 30, 2002, a per share decrease of 14.6%. Net income for the quarter and the six months ended June 30, 2003 was $2,928,000 and $6,636,000, respectively, as compared to $7,291,000 and $13,951,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended June 30, 2003 was $0.06, compared to $0.29 for the comparable period of 2002, a decrease of 79.3%. For the six months ended June 30, 2003, EPS was $0.16 compared to $0.54 for the comparable period of 2002, a decrease of 70.4%. "Although actual results were consistent with our expectations, earnings for the current quarter compared to last year were lower due to decreases in same community revenue, reflecting the pressure felt by the apartment industry last year, and less co-investment fee income, driven by fewer acquisitions and dispositions," commented Allan J. Sweet, AMLI President. "The second quarter brought with it some positive news as it was the first in some time to show a sequential increase in same community revenue in all of our markets, making us optimistic that the bottom is close at hand." SAME COMMUNITY RESULTS - ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended June 30, 2003 versus the prior year's quarter, total community revenue decreased 3.5%, operating expenses increased 2.3%, and net operating income ("NOI") decreased 7.4%. Weighted average occupancy, quarter over comparable quarter, decreased slightly from 91.4% to 91.2%, while the weighted average collected revenue decreased by 3.6%. Second Quarter 2003 Page 2 Supplemental Information AMLI Residential Properties Trust OTHER OPERATING RESULTS - ----------------------- Total community revenue, including both wholly-owned communities and co- investment communities (at 100%) were $70,374,000 and $138,587,000, respectively, for the quarter and six months ended June 30, 2003, as compared with $70,448,000 and $139,624,000 for the comparable period in 2002, a 0.1% and 0.7% decrease, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and six months ended June 30, 2003 were $23,592,000 and $47,194,000, respectively, representing decreases of 8.9% and 7.7%, respectively, from the same period last year. Net income and EPS for the three and six-month periods ended June 30, 2003 included a non-cash one-time impairment charge of an investment in a partnership, accounting for a substantial portion of the decrease from comparable periods in 2002. SECOND QUARTER ACTIVITIES - ------------------------- During the second quarter, AMLI entered into a joint venture with The Northwestern Mutual Life Insurance Company to develop and own AMLI at Museum Gardens, a 294-unit luxury apartment community in Vernon Hills, Illinois. AMLI has commenced construction on the community and the first apartment homes are expected to be available for occupancy in the third quarter of 2004 with stabilization scheduled for the first quarter of 2006. In May, AMLI entered into a new $200 million unsecured line of credit with a three-year term and a one-year extension option. This facility, which is available to fund acquisition and development activities and general working capital needs, replaces AMLI's previous $200 million unsecured line of credit. During the quarter, initial lease-up was completed and stabilization was achieved at AMLI at Barrett Walk in Kennesaw, Georgia and AMLI at Cambridge Square in Overland Park, Kansas. OUTLOOK - ------- AMLI's current expectation for FFO of $1.10 per share for the remaining two quarters of 2003 remains the same as the Company's prior guidance. DIVIDEND - -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on August 19, 2003 to all common shareholders of record as of August 8, 2003 and is based on an annual dividend rate of $1.92 per common share. CONFERENCE CALL - --------------- AMLI will hold a conference call on Wednesday, July 30, 2003 at 3:30 p.m. ET to review these results. The call may be joined by calling 877-922-1802 - - Passcode: AMLI. A live webcast of the conference call will also be available in the 'Company Info' section on AMLI's website (www.amli.com/comp/) and at www.streetevents.com. Second Quarter 2003 Page 3 Supplemental Information AMLI Residential Properties Trust SUPPLEMENTAL INFORMATION - ------------------------ AMLI produces Quarterly Supplemental Information that provides detailed information regarding the Company's activities during the quarter. The Second Quarter Supplemental Information is available in the 'Company Info' section on our website (www.amli.com/comp/) under 'Shareholder Reports.' DEFINITIONS - ----------- This press release and the Quarterly Supplemental Information described above contain certain non-GAAP ("Generally Accepted Accounting Principles") information that is generally provided by most publicly-traded residential REITs and that we believe may be of interest and use to the investment community. Except where indicated, community revenue, community expenses, net operating income ("NOI") and earnings before interest, taxes, depreciation and amortization ("EBITDA") are computed based on various line items included in our consolidated statements of income prepared in accordance with GAAP. Where indicated, this information is presented on a basis that includes AMLI's proportionate share of the non-GAAP financial measures of its co-investment partnerships. Reconciliations of all non-GAAP financial measures to GAAP financial measures are included in the Company's Quarterly Supplemental Financial information, primarily pages 8, 9, and 15. COMMUNITY REVENUE comprises that portion of total revenue collected or due from leases at AMLI's rental communities and includes any such amounts as may be reported as discontinued operations. COMMUNITY EXPENSES comprise that portion of total expenses that exclude losses from sales or valuation of land, expenses of the Service Companies, general and administrative expense, and interest, taxes, depreciation and amortization. Community operating expenses include amounts reported as personnel, advertising and promotion, utilities, building repairs and maintenance and services, landscaping and grounds maintenance, real estates taxes, insurance, property management, and other operating expenses, and such amounts as may be included in discontinued operations. NOI from one community is the community revenue less the community expenses for that property. NOI for all communities is the community revenue from all communities less the community expenses for all communities. EBITDA is NOI (including AMLI's proportionate share of the NOI of its co- investment partnerships) plus all fees and interest income and income from the Service Companies and gains or losses from sales or valuation of land and other income, less general and administration expense. FUNDS FROM OPERATIONS ("FFO") is EBITDA less interest expense (including AMLI's proportionate share of the interest expense of its co-investment partnerships and amortization of deferred financing expense) and any income taxes. FFO PER SHARE is FFO divided by the fully-diluted number of Operating Partnership Units outstanding. FFO is always presented on a fully-diluted basis only. ADJUSTED FUNDS FROM OPERATIONS ("AFFO") is FFO less expenditures capitalized (excluding expenditures capitalized relating to the development of new property, the acquisition of additional property, or the rehab of existing property, but including AMLI's proportionate share of such expenditures capitalized by its co-investment partnerships). Second Quarter 2003 Page 4 Supplemental Information AMLI Residential Properties Trust AFFO PER SHARE is AFFO divided by the fully-diluted number of Operating Partnership Units outstanding. AFFO per share is always presented on a fully-diluted basis only. SAME COMMUNITY INFORMATION includes only such portions of community revenue, expenses, NOI or EBITDA as are generated from AMLI's same community universe, which changes each January 1 as communities with one full year of stabilized operations as of that date are added, and which may change quarterly thereafter as any components of the same community universe are sold or contributed to co-investment partnerships. ABOUT AMLI - ---------- The AMLI portfolio currently includes 75 apartment communities containing 28,531 apartment homes, with an additional 1,817 apartment homes under development or in lease-up in five locations. AMLI is focused on the development, acquisition and management of institutional quality multifamily communities in the Southeast, Southwest, Midwest and Mountain regions 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 850 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. 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 judgment 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, 2002. # # # # Second Quarter 2003 Page 5 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------- June 30, March 31, Dec. 31, Sept. 30, June 30, 2003 2003 2002 2002 2002 ---------- ---------- ---------- ---------- ---------- REVENUE - ------- TOTAL REVENUE Consolidated (a). . . . . . . . . . . . . $ 29,401 29,150 29,407 29,483 30,254 Combined, including share of partnerships (b). . . . . . . . . . . . 42,025 41,269 42,081 43,205 41,997 TOTAL COMMUNITY REVENUE Consolidated. . . . . . . . . . . . . . . 27,481 27,083 26,051 26,498 26,680 Combined, including share of partnerships. . . . . . . . . . . . . . 41,005 40,072 40,233 42,663 39,757 Combined, including partnerships at 100% . . . . . . . . . . . . . . . . 70,374 68,214 67,910 69,305 68,333 EARNINGS AND CASH FLOWS - ----------------------- EBITDA (c). . . . . . . . . . . . . . . . 23,592 23,602 24,647 24,437 25,910 FFO . . . . . . . . . . . . . . . . . . . 12,980 12,717 13,859 14,306 16,105 AFFO. . . . . . . . . . . . . . . . . . . 11,750 11,408 13,072 12,926 14,646 Net income. . . . . . . . . . . . . . . . 2,928 3,708 8,752 17,652 7,291 Dividends (d) . . . . . . . . . . . . . . 11,758 11,733 11,926 12,316 12,432 Cash flows from operating activities. . . 14,971 11,642 11,200 17,111 19,077 Cash flows from investing activities. . . (8,453) (20,700) 15,284 50,083 (50,122) Cash flows from financing activities. . . (4,021) 9,496 (27,701) (67,684) 32,757 Second Quarter 2003 Page 6 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Unaudited (Dollars in thousands, except for share data) Quarter Ended ------------------------------------------------------------- June 30, March 31, Dec. 31, Sept. 30, June 30, 2003 2003 2002 2002 2002 ---------- ---------- ---------- ---------- ---------- PER SHARE DATA - DILUTED - ------------------------ FFO . . . . . . . . . . . . . . . . . . . $ 0.53 0.52 0.56 0.56 0.62 AFFO. . . . . . . . . . . . . . . . . . . 0.48 0.47 0.53 0.51 0.56 Net income allocable to common shares . . 0.06 0.10 0.40 0.87 0.29 Common dividends. . . . . . . . . . . . . 0.48 0.48 0.48 0.48 0.48 FFO payout ratio (based on per share amounts). . . . . . . . . . . . . 90.5% 91.8% 85.3% 85.9% 77.7% AFFO payout ratio (based on per share amounts). . . . . . . . . . . . . 99.9% 102.4% 90.6% 95.1% 85.4% NUMBER OF APARTMENT HOMES - ------------------------- STABILIZED COMMUNITIES Wholly-owned. . . . . . . . . . . . . . . 12,260 12,260 11,722 11,851 12,441 Partnerships. . . . . . . . . . . . . . . 16,271 15,573 15,811 15,595 15,911 ---------- ---------- ---------- ---------- ---------- 28,531 27,833 27,533 27,446 28,352 ---------- ---------- ---------- ---------- ---------- COMMUNITIES UNDER DEVELOPMENT AND/OR LEASE-UP Wholly-owned. . . . . . . . . . . . . . . 322 322 322 542 542 Partnerships. . . . . . . . . . . . . . . 1,495 1,919 2,219 2,215 2,215 ---------- ---------- ---------- ---------- ---------- 1,817 2,241 2,541 2,757 2,757 ---------- ---------- ---------- ---------- ---------- Total . . . . . . . . . . . . . . . . . . 30,348 30,074 30,074 30,203 31,109 ========== ========== ========== ========== ========== See notes on following pages Second Quarter 2003 Page 7 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------ June 30, March 31, Dec. 31, Sept. 30, June 30, 2003 2003 2002 2002 2002 ---------- ---------- ---------- ---------- ---------- CAPITALIZATION - -------------- REAL ESTATE AT COST, BEFORE DEPRECIATION Consolidated. . . . . . . . . . . . . . . $ 794,934 794,908 768,281 793,559 813,089 Combined, including share of partnerships. . . . . . . . . . . . . . 1,247,145 1,242,259 1,221,309 1,237,356 1,263,186 Combined, including partnerships at 100% . . . . . . . . . . . . . . . . 2,205,101 2,185,711 2,170,783 2,159,926 2,171,530 TOTAL ASSETS Consolidated. . . . . . . . . . . . . . . $ 953,547 950,693 920,854 919,849 964,800 Combined, including share of partnerships. . . . . . . . . . . . . . 1,173,354 1,169,970 1,148,778 1,146,244 1,170,959 DEBT Consolidated. . . . . . . . . . . . . . . $ 462,781 457,950 421,554 403,193 450,268 Combined, including share of partnerships. . . . . . . . . . . . . . 674,373 669,648 637,726 620,184 648,965 SHARE INFORMATION Common shares outstanding . . . . . . . . 16,928,640 16,787,100 16,695,250 17,557,178 18,120,296 Preferred shares outstanding (e). . . . . 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 Operating Partnership units outstanding (f) . . . . . . . . . . . . 3,545,993 3,547,685 3,618,803 3,652,165 3,655,364 ---------- ---------- ----------- ----------- ----------- Total shares and units outstanding. . . . 24,499,633 24,359,785 24,339,053 25,234,343 25,800,660 ========== ========== =========== =========== =========== Weighted average shares and units outstanding . . . . . . . . . . . . . . 24,433,348 24,348,851 24,653,128 25,542,933 25,800,241 Share price, end of period. . . . . . . . $ 23.55 21.05 21.28 22.08 26.00 Second Quarter 2003 Page 8 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Unaudited (Dollars in thousands, except for share data) Quarter Ended ------------------------------------------------------------ June 30, March 31, Dec. 31, Sept. 30, June 30, 2003 2003 2002 2002 2002 ---------- ---------- ---------- ---------- ---------- EQUITY MARKET CAPITALIZATION. . . . . . . 576,966 512,773 517,935 557,174 670,817 MARKET CAPITALIZATION (g) Consolidated. . . . . . . . . . . . . . . $1,039,747 970,723 939,489 960,367 1,121,085 Combined, including share of partnerships. . . . . . . . . . . . . . 1,251,339 1,182,421 1,158,413 1,177,358 1,319,782 Combined,including partnerships at 100% . 2,280,515 2,166,147 2,188,835 2,113,925 2,334,010 DEBT SERVICE (h) - ---------------- INTEREST EXPENSE Consolidated. . . . . . . . . . . . . . . $ 5,913 6,296 6,560 6,027 6,046 Combined, including share of partnerships 9,742 10,030 10,497 9,870 9,564 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . 643 392 353 1,013 962 Combined, including share of partnerships . . . . . . . . . . . . 734 444 423 1,051 985 SCHEDULED PRINCIPAL PAYMENTS (normal amortization) Consolidated. . . . . . . . . . . . . . . 968 952 1,094 1,075 1,105 Combined, including share of partnerships 1,511 1,528 1,657 1,619 1,634 See notes on following pages Second Quarter 2003 Page 9 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Unaudited (Dollars in thousands, except for share data)
Quarter Ended ------------------------------------------------------------ June 30, March 31, Dec. 31, Sept. 30, June 30, 2003 2003 2002 2002 2002 ---------- ---------- ---------- ---------- ---------- OPERATIONAL RATIOS - ------------------ EBITDA, AS PERCENT OF TOTAL MARKET CAPITALIZATION Consolidated. . . . . . . . . . . . . . . 8.9% 9.7% 10.5% 10.2% 9.2% Combined, including share of unconsolidated affiliates debt. . . . . 7.4% 8.0% 8.5% 8.3% 7.9% INTEREST COVERAGE Consolidated. . . . . . . . . . . . . . . 3.9 3.7% 3.8 4.1 4.3 Combined, including share of partnerships 2.4 2.4% 2.4 2.5 2.7 FIXED CHARGE COVERAGE (i) Consolidated. . . . . . . . . . . . . . . 2.9 2.9% 2.9 3.1 3.2 Combined, including share of partnerships 2.0 2.0% 2.0 2.1 2.2 FINANCIAL RATIOS - ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated. . . . . . . . . . . . . . . 44.5% 47.2% 44.9% 42.0% 40.2% Combined, including share of unconsolidated affiliates . . . . . . . 53.9% 56.6% 55.3% 52.7% 49.2% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated. . . . . . . . . . . . . . . 42.7% 42.5% 40.5% 38.9% 41.9% Combined, including share of partnerships 50.0% 50.1% 48.8% 47.8% 49.4% Second Quarter 2003 Page 10 Supplemental Information AMLI Residential Properties Trust 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. Reconciliation of Consolidated Total Revenue for the three and six months ended: Three months ended Six months ended -------------------- -------------------- June 30, June 30, June 30, June 30, 2003 2002 2003 2002 -------- -------- -------- -------- Community revenue. . . . . . . . . . . . . . . $ 27,481 26,680 54,564 53,202 Income from partnerships . . . . . . . . . . . 1,469 2,255 2,926 4,284 Other income . . . . . . . . . . . . . . . . . 700 1,319 1,352 2,040 Loss from the Service Companies. . . . . . . . (249) -- (291) -- -------- -------- -------- -------- Consolidated total revenue (see detail on page 14) . . . . . . . . . . . . . . . . . . $ 29,401 30,254 58,551 59,526 ======== ======== ======== ======== (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. Excludes revenues of the Service Companies. (c) As of and for the three and six months ended June 30, 2003, includes a positive adjustment to add back $477 and $1,082, respectively, of the Service Companies' taxes and depreciation. (See pages 44 and 45). In prior periods the Service Companies were not consolidated and this adjustment was not made. (d) Represents dividends paid on all common and preferred shares. (e) All preferred shares are convertible to common shares at the option of the holder. (f) Represents Minority Interest on the Company's Consolidated Balance Sheets. (g) At June 30, 2003, includes 43,400 restricted shares. (h) Excludes amortization of deferred and other financing costs. (i) Includes interest expense and preferred dividends and excludes principal amortization. Second Quarter 2003 Page 11 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL FUNDS FROM OPERATIONS Unaudited (Dollars in thousands, except for share data) Three Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- Company's share of communities' EBITDA (a). $ 23,974 25,804 Share of Service Companies' EBITDA/FFO (b). 228 (24) Other income. . . . . . . . . . . . . . . . 188 83 Co-investment fee income (c). . . . . . . . 512 1,260 General and administrative. . . . . . . . . (1,310) (1,213) ---------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) . . 23,592 25,910 ---------- ---------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt. . . . . . . . . . . . . . . . . . . (6,253) (6,242) Share of partnership communities. . . . . . (3,882) (3,563) ---------- ---------- (10,135) (9,805) ---------- ---------- SERVICE COMPANIES TAXES AND DEPRECIATION AND AMORTIZATION Taxes . . . . . . . . . . . . . . . . . . 303 -- Depreciation and amortization . . . . . . (780) -- ---------- ---------- (477) -- ---------- ---------- FUNDS FROM OPERATIONS (FF0) . . . . . . . . 12,980 16,105 ---------- ---------- CAPITAL EXPENDITURES PAID FROM FFO (e) Wholly-owned communities. . . . . . . . . . (834) (1,159) Share of partnership communities. . . . . . (396) (300) ---------- ---------- (1,230) (1,459) ---------- ---------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . . . $ 11,750 14,646 ========== ========== Notes: (a) Includes discontinued operations. See page 36 for reconciliation of community revenue and expenses to the Company's share of communities' EBITDA. (b) In 2003, includes share of EBITDA, net of intercompany interest elimination. In 2002, includes interest income and share of income from the Service Companies. (c) See page 42. (d) Includes amortization of deferred and other financing costs. (e) For details, refer to the Company's Management Discussion and Analysis in the Form 10-Q filed with the SEC for this reporting period. Second Quarter 2003 Page 12 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL FUNDS FROM OPERATIONS Unaudited (Dollars in thousands, except for share data) Six Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- Company's share of communities' EBITDA (a). $ 48,101 51,838 Share of Service Companies' EBITDA/FFO (b). 791 (254) Other income. . . . . . . . . . . . . . . . 384 447 Co-investment fee income (c). . . . . . . . 968 1,847 General and administrative. . . . . . . . . (3,050) (2,753) ---------- ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) . . 47,194 51,125 ---------- ---------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt. . . . . . . . . . . . . . . . . . . (12,745) (12,188) Share of partnership communities. . . . . . (7,670) (7,004) ---------- ---------- (20,415) (19,192) ---------- ---------- SERVICE COMPANIES TAXES AND DEPRECIATION AND AMORTIZATION Taxes . . . . . . . . . . . . . . . . . . 458 -- Depreciation and amortization . . . . . . (1,540) -- ---------- ---------- (1,082) -- ---------- ---------- FUNDS FROM OPERATIONS (FF0) . . . . . . . . 25,697 31,933 ---------- ---------- CAPITAL EXPENDITURES PAID FROM FFO (e) Wholly-owned communities. . . . . . . . . . (1,918) (2,164) Share of partnership communities. . . . . . (621) (522) ---------- ---------- (2,539) (2,686) ---------- ---------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . . . $ 23,158 29,247 ========== ========== Notes: (a) Includes discontinued operations. See page 39 for reconciliation of community revenue and expenses to the Company's share of communities' EBITDA. (b) In 2003, includes share of EBITDA, net of intercompany interest elimination. In 2002, includes interest income and share of income from the Service Companies. (c) See page 42. (d) Includes amortization of deferred and other financing costs. (e) For details, refer to the Company's Management Discussion and Analysis in the Form 10-Q filed with the SEC for this reporting period. Second Quarter 2003 Page 13 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STATEMENTS OF OPERATIONS Three Months Ended June 30 (Unaudited, dollars in thousands)
Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- RENTAL OPERATIONS Revenue: Rental. . . . . . . . . . . . . . . . . . . . . . . $ 25,441 25,018 37,924 37,260 Other . . . . . . . . . . . . . . . . . . . . . . . 2,040 1,662 3,081 2,497 ---------- ---------- ---------- ---------- 27,481 26,680 41,005 39,757 ---------- ---------- ---------- ---------- Expenses: Rental. . . . . . . . . . . . . . . . . . . . . . . 11,974 10,912 17,606 16,156 Interest and amortization of deferred financing costs 6,253 6,242 10,136 9,805 Depreciation. . . . . . . . . . . . . . . . . . . . 5,546 5,111 8,655 8,058 ---------- ---------- ---------- ---------- 23,773 22,265 36,397 34,019 ---------- ---------- ---------- ---------- 3,708 4,415 4,608 5,738 Income from partnerships. . . . . . . . . . . . . . . 1,469 2,255 -- -- ---------- ---------- ---------- ---------- Income from rental operations . . . . . . . . . . . . 5,177 6,670 4,608 5,738 ---------- ---------- ---------- ---------- OTHER INCOME Interest and share of loss from the Service Companies -- (24) -- (24) Fee income from unconsolidated partnerships . . . . 512 1,260 512 1,260 Other income (c). . . . . . . . . . . . . . . . . . 188 83 757 1,015 ---------- ---------- ---------- ---------- 700 1,319 1,269 2,251 ---------- ---------- ---------- ---------- Second Quarter 2003 Page 14 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended June 30 (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- SERVICE COMPANIES' OPERATIONS Total revenue . . . . . . . . . . . . . . . . . . . 14,041 -- 14,041 -- Total expenses. . . . . . . . . . . . . . . . . . . 14,290 -- 14,290 -- ---------- ---------- ---------- ---------- Loss from Service Companies' operations . . . . . (249) -- (249) -- ---------- ---------- ---------- ---------- GENERAL AND ADMINISTRATIVE. . . . . . . . . . . . . . 1,310 1,213 1,310 1,213 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES . . . . . . . 4,318 6,776 4,318 6,776 Gain on sale of residential property including share of gains on sales of a partnership's properties . . -- 605 -- 605 Impairment of investment in partnership . . . . . . . (1,191) -- (1,191) -- ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . . . . . . . . . . . . . 3,127 7,381 3,127 7,381 Minority interest . . . . . . . . . . . . . . . . . 199 913 199 913 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS . . . . . . . . . . 2,928 6,468 2,928 6,468 ---------- ---------- ---------- ---------- Income from discontinued operations, net of minority interest (d). . . . . . . . . . . . -- 823 -- 823 Gain on sale of discontinued operations, net of minority interest . . . . . . . . . . . . . . . . . -- -- -- -- ---------- ---------- ---------- ---------- INCOME FROM DISCONTINUED OPERATIONS, NET OF MINORITY INTEREST . . . . . . . . . . . . . . . . . -- 823 -- 823 ---------- ---------- ---------- ---------- NET INCOME. . . . . . . . . . . . . . . . . . . . . . 2,928 7,291 2,928 7,291 Net income attributable to preferred shares . . . . . 1,980 1,946 1,980 1,946 ---------- ---------- ---------- ---------- NET INCOME ATTRIBUTABLE TO COMMON SHARES. . . . . . . $ 948 5,345 948 5,345 ========== ========== ========== ========== Second Quarter 2003 Page 15 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended June 30 (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . . . . . . . . . . . . . 3,127 7,381 3,127 7,381 Income from discontinued operations before minority interest. . . . . . . . . . . . . . . . . . . . . . -- 990 -- 990 Add: Depreciation Wholly-owned communities. . . . . . . . . . . . . . 5,546 5,371 5,546 5,371 Share of partnership communities. . . . . . . . . . 3,116 2,968 3,116 2,968 Less: Gains on sales of rental properties Wholly-owned communities. . . . . . . . . . . . . . -- -- -- -- Share of partnership communities. . . . . . . . . . -- (605) -- (605) Equity in Partnership losses. . . . . . . . . . . . . 1,191 -- 1,191 -- ---------- ---------- ---------- ---------- FUNDS FROM OPERATIONS . . . . . . . . . . . . . . . . $ 12,980 16,105 12,980 16,105 ========== ========== ========== ========== 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. (d) No interest expense is associated with discontinued operations. Second Quarter 2003 Page 16 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL STATEMENTS OF OPERATIONS Six Months Ended June 30 (Unaudited, dollars in thousands)
Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- RENTAL OPERATIONS Revenue: Rental. . . . . . . . . . . . . . . . . . . . . . . $ 50,838 49,992 75,417 74,156 Other . . . . . . . . . . . . . . . . . . . . . . . 3,726 3,210 5,660 4,853 ---------- ---------- ---------- ---------- 54,564 53,202 81,077 79,009 ---------- ---------- ---------- ---------- Expenses: Rental. . . . . . . . . . . . . . . . . . . . . . . 23,295 20,998 34,146 31,215 Interest and amortization of deferred financing costs 12,745 12,188 20,416 19,193 Depreciation. . . . . . . . . . . . . . . . . . . . 11,064 10,150 17,285 15,957 ---------- ---------- ---------- ---------- 47,104 43,336 71,847 66,365 ---------- ---------- ---------- ---------- 7,460 9,866 9,230 12,644 Income from partnerships. . . . . . . . . . . . . . . 2,926 4,284 -- -- ---------- ---------- ---------- ---------- Income from rental operations . . . . . . . . . . . . 10,386 14,150 9,230 12,644 ---------- ---------- ---------- ---------- OTHER INCOME Interest and share of loss from the Service Companies -- (254) -- (254) Fee income from unconsolidated partnerships . . . . 968 1,847 968 1,847 Other income (c). . . . . . . . . . . . . . . . . . 384 447 1,540 1,953 ---------- ---------- ---------- ---------- 1,352 2,040 2,508 3,546 ---------- ---------- ---------- ---------- Second Quarter 2003 Page 17 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STATEMENTS OF OPERATIONS - CONTINUED Six Months Ended June 30 (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- SERVICE COMPANIES' OPERATIONS Total revenue . . . . . . . . . . . . . . . . . . . 36,194 -- 36,194 -- Total expenses. . . . . . . . . . . . . . . . . . . 36,485 -- 36,485 -- ---------- ---------- ---------- ---------- Loss from Service Companies' operations . . . . . (291) -- (291) -- ---------- ---------- ---------- ---------- GENERAL AND ADMINISTRATIVE. . . . . . . . . . . . . . 3,050 2,753 3,050 2,753 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES . . . . . . . 8,397 13,437 8,397 13,437 Gain on sale of residential property including share of gains on sales of a partnership's properties . . -- 605 -- 605 Impairment of investment in partnership . . . . . . . (1,191) -- (1,191) -- ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . . . . . . . . . . . . . 7,206 14,042 7,206 14,042 Minority interest . . . . . . . . . . . . . . . . . 570 1,692 570 1,692 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS . . . . . . . . . . 6,636 12,350 6,636 12,350 ---------- ---------- ---------- ---------- Income from discontinued operations, net of minority interest (d). . . . . . . . . . . . -- 1,601 -- 1,601 Gain on sale of discontinued operations, net of minority interest . . . . . . . . . . . . . . . . . -- -- -- -- ---------- ---------- ---------- ---------- INCOME FROM DISCONTINUED OPERATIONS, NET OF MINORITY INTEREST . . . . . . . . . . . . . . . . . -- 1,601 -- 1,601 ---------- ---------- ---------- ---------- NET INCOME. . . . . . . . . . . . . . . . . . . . . . 6,636 13,951 6,636 13,951 Net income attributable to preferred shares . . . . . 3,961 4,028 3,961 4,028 ---------- ---------- ---------- ---------- NET INCOME ATTRIBUTABLE TO COMMON SHARES. . . . . . . $ 2,675 9,923 2,675 9,923 ========== ========== ========== ========== Second Quarter 2003 Page 18 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STATEMENTS OF OPERATIONS - CONTINUED Six Months Ended June 30 (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ----------------------- ----------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . . . . . . . . . . . . . 7,206 14,042 7,206 14,042 Income from discontinued operations before minority interest. . . . . . . . . . . . . . . . . . . . . . -- 1,927 -- 1,927 Add: Depreciation Wholly-owned communities. . . . . . . . . . . . . . 11,064 10,733 11,064 10,733 Share of partnership communities. . . . . . . . . . 6,236 5,836 6,236 5,836 Less: Gains on sales of rental properties Wholly-owned communities. . . . . . . . . . . . . . -- -- -- -- Share of partnership communities. . . . . . . . . . -- (605) -- (605) Equity in Partnership losses. . . . . . . . . . . . . 1,191 -- 1,191 -- ---------- ---------- ---------- ---------- FUNDS FROM OPERATIONS . . . . . . . . . . . . . . . . $ 25,697 31,933 25,697 31,933 ========== ========== ========== ========== 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. (d) No interest expense is associated with discontinued operations. Second Quarter 2003 Page 19 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL BALANCE SHEETS (Unaudited, dollars in thousands)
Consolidated (a) Combined (b) ------------------------- ------------------------- June 30, December 31, June 30, December 31, 2003 2002 2003 2002 ---------- ------------ ---------- ------------ ASSETS Rental apartments Land. . . . . . . . . . . . . . . . . . . . $ 105,098 97,700 162,671 153,873 Depreciable property. . . . . . . . . . . . 677,232 631,480 1,039,799 984,053 ---------- ---------- ---------- ---------- 782,330 729,180 1,202,470 1,137,926 Less: Accumulated depreciation . . . . . . . (131,332) (120,268) (174,068) (158,973) ---------- ---------- ---------- ---------- 650,998 608,912 1,028,402 978,953 Rental apartments under development . . . . . -- 24,943 32,071 69,225 Land held for development or sale . . . . . . 12,604 14,158 12,604 14,158 Investments in partnerships (c) . . . . . . . 193,244 197,517 -- -- Cash and cash equivalents . . . . . . . . . . 5,357 2,422 8,898 9,426 Service Companies' assets . . . . . . . . . . 61,978 52,774 61,978 52,774 Other assets and deferred expenses, net (d) . 29,366 20,128 29,401 24,242 ---------- ---------- ---------- ---------- TOTAL ASSETS. . . . . . . . . . . . . . . $ 953,547 920,854 1,173,354 1,148,778 ========== ========== ========== ========== Second Quarter 2003 Page 20 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) Consolidated (a) Combined (b) ------------------------- ------------------------- June 30, December 31, June 30, December 31, 2003 2002 2003 2002 ---------- ------------ ---------- ------------ LIABILITIES Debt. . . . . . . . . . . . . . . . . . . . . $ 462,781 421,554 674,373 637,726 Distributions in excess of investments in and earnings from partnerships. . . . . . . 5,969 4,806 -- -- Accrued expenses and other liabilities. . . . 35,497 33,391 49,681 49,949 ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . . . . . . . . . . . 504,247 459,751 724,054 687,675 ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . . . . . . 93,247 93,247 93,247 93,247 Minority interest . . . . . . . . . . . . . . 61,579 65,728 61,579 65,728 Total shareholders' equity. . . . . . . . . . 294,474 302,128 294,474 302,128 ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . . . . $ 953,547 920,854 1,173,354 1,148,778 ========== ========== ========== ========== 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) See details in the Company's SEC Form 10-Q. Second Quarter 2003 Page 21 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) (d) Includes the following:
Deferred financing costs, net . . $ 4,982 3,962 6,510 5,600 Deferred development costs. . . . 3,738 4,557 3,738 4,557 Operating receivables and prepaid expenses. . . . . . . . . . . . 2,340 3,311 2,716 4,077 Deposits and restricted cash. . . 2,179 3,016 3,423 4,655 Notes receivable. . . . . . . . . 10,960 2,179 8,277 2,179 Advances to affiliates. . . . . . 4,655 2,381 3,956 2,202 Other . . . . . . . . . . . . . . 512 722 781 972 ---------- ---------- ---------- ---------- $ 29,366 20,128 29,401 24,242 ========== ========== ========== ========== Second Quarter 2003 Page 22 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY June 30, 2003 (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 . . . . . $286,731 62.0% 7.1% 6.4 286,731 -- 286,731 -- Construction financing . . . . . -- 0% 0% 0.0 -- -- -- -- Tax-exempt debt . . . 50,250 10.9% 2.4% 0.3 9,500 40,750 -- 50,250 Credit facilities (f) 119,000 25.7% 3.4% 2.9 -- 119,000 -- 119,000 Other (g) . . . . . . 6,800 1.4% 2.1% 0.0 -- 6,800 -- 6,800 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $462,781 100.0% 5.6% 4.7 296,231 166,550 286,731 176,050 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 64.0% 36.0% 62.0% 38.0% ======= ======= ======= ======= 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 . . . . . $490,518 72.7% 7.1% 6.4 490,518 -- 490,518 -- Construction financing . . . . . 10,204 1.5% 3.2% 1.6 10,204 -- -- 10,204 Tax-exempt debt . . . 50,250 7.5% 2.4% 0.3 9,500 40,750 -- 50,250 Credit facilities (f) 119,000 17.6% 3.4% 2.9 -- 119,000 -- 119,000 Other (g) . . . . . . 4,401 0.7% 2.1% 0.0 -- 4,401 -- 4,401 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $674,373 100.0% 6.1% 5.2 510,222 164,151 490,518 183,855 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 75.7% 24.3% 72.7% 27.3% ======= ======= ======= ======= See notes on the following page Second Quarter 2003 Page 23 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY June 30, 2003 (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 (h) 2,022 Convertible Preferred Series B (i) 75,000 3,125,000 3,125,000 (j) 76,500 Convertible Preferred Series D (k) 10/31/01 20,000 800,000 800,000 (l) 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 supporting Tax-exempt debt, not the actual maturity dates of the bonds, which are in 2024. Second Quarter 2003 Page 24 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED June 30, 2003 (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 Harris Trust & Savings Bank 15,000 6.405% 9/21/99 - 9/20/04 Swap Harris Trust & Savings Bank 10,000 6.438% 10/4/99 - 10/4/04 ------- $25,000 ======= The following summarizes interest rate swap contracts associated with the construction financing of AMLI at Seven Bridges, in which the Company owns a 20% interest: Second Quarter 2003 Page 25 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED June 30, 2003 (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 -12/10/03 (f) See note (c) on page 27. (g) Demand notes payable by the Company to its managed partnerships. Combined amount is net of elimination of Company's share. (h) The dividend per share is equal to the common share dividend. (i) Funded in three installments of $25 million each on 3/9/98, 6/30/98 and 9/30/98. (j) The dividend per share is the greater of an annualized (i) $1.84 per share or (ii) the amount payable on the common shares. (k) 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. (l) The dividend per share is the greater of an annualized (i) $2.1625 per share or (ii) the amount payable on the common shares. Second Quarter 2003 Page 26 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT MATURITIES June 30, 2003 (Unaudited, dollars in thousands)
CONSOLIDATED DEBT (a) - --------------------- Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt - ---------- ------------ ----------- ----------- ----------- ------------ 2003 $ 1,989 6,800 8,789 1.9% 2.1% 2004 3,857 22,547 26,404 5.7% 7.6% 2005 3,997 31,024 35,021 7.6% 8.2% 2006 3,130 154,372(c) 157,502 34.0% 4.5% 2007 2,661 32,981 35,642 7.7% 6.7% Thereafter 18,723 180,700(d) 199,423 43.1% 5.6% -------- ------- ------- ------ ----- Total $ 34,357 428,424 462,781 100.0% 5.6% ======== ======= ======= ====== ===== Percent to Total 7.4% 92.6% 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 - ---------- ------------ ----------- ----------- ----------- ------------ 2003 $ 3,124 8,030 11,154 18.8% 3.5% 2004 6,162 24,987 31,149 4.7% 7.6% 2005 6,456 41,024 47,480 7.0% 7.1% 2006 5,666 185,998(c) 191,664 10.8% 7.6% 2007 4,747 65,552 70,299 10.5% 7.3% Thereafter 29,028 293,599(d) 322,627 48.2% 6.2% -------- ------- ------- ------ ----- Total $ 55,183 619,190 674,373 100.0% 6.1% ======== ======= ======= ====== ===== Percent to Total 8.2% 91.8% 100.0% ======== ======= ======= Second Quarter 2003 Page 27 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED June 30, 2003 (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 was replaced in May 2003 with a new $200,000 line of credit maturing in May 2006. (d) Includes Bonds which mature in 2024. The credit enhancements on $40,750 and $9,500 expire on October 15, 2003 and on December 18, 2004, respectively. Second Quarter 2003 Page 28 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES THREE MONTHS ENDED JUNE 30
PHYSICAL OCCUPANCY AND COLLECTED REVENUE PER OCCUPIED UNIT (a) - -------------------------------- Weighted Average Weighted Average Occupancy (b) Collected Revenue (c) --------------------------------- --------------------------------- Apartment Percent Percent Market Homes 2003 2002 Change 2003 2002 Change - ------ --------- -------- -------- -------- -------- -------- -------- Dallas 6,560 91.4% 91.8% -0.5% $ 817 849 -3.8% Atlanta 5,637 90.8% 90.2% 0.8% 862 898 -4.0% Austin 2,797 91.4% 91.4% 0.0% 817 875 -6.6% Houston 1,133 91.0% 92.2% -1.2% 1,063 1,095 -2.9% Indianapolis 2,028 91.1% 91.5% -0.4% 805 798 0.9% Kansas City 2,518 90.7% 93.0% -2.5% 844 855 -1.3% Chicago 3,243 92.1% 92.1% 0.0% 1,100 1,146 -4.0% Denver 742 88.5% 87.1% 1.6% 1,021 1,075 -5.0% ------- ------ ------ ------ ------ ------ ------ Total 24,658 91.2% 91.4% -0.3% $ 884 917 -3.6% ======= ====== ====== ====== ====== ====== ====== Second Quarter 2003 Page 29 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED THREE MONTHS ENDED JUNE 30
REVENUE, EXPENSES AND NET OPERATING INCOME (a) (dollars in thousands) - ---------------------------------------------- Revenue Expenses Net Operating Income (d) ---------------------------- ---------------------------- ----------------------------- Percent Percent Percent Market 2003 2002 Change 2003 2002 Change 2003 2002 Change - ------ -------- -------- -------- -------- -------- -------- -------- -------- -------- Dallas $ 14,675 15,336 -4.3% 6,735 6,631 1.6% 7,940 8,705 -8.8% Atlanta 13,252 13,696 -3.2% 5,190 5,040 3.0% 8,062 8,656 -6.9% Austin 6,265 6,712 -6.7% 2,880 2,996 -3.9% 3,385 3,716 -8.9% Houston 3,290 3,427 -4.0% 1,460 1,505 -3.0% 1,830 1,922 -4.8% Indianapolis 4,463 4,433 0.7% 1,820 1,758 3.5% 2,643 2,675 -1.2% Kansas City 5,782 6,011 -3.8% 2,198 2,061 6.7% 3,584 3,950 -9.3% Chicago 9,862 10,101 -2.4% 4,100 3,908 4.9% 5,762 6,193 -7.0% Denver 2,013 2,079 -3.1% 730 648 12.6% 1,283 1,431 -10.3% -------- -------- -------- -------- -------- -------- -------- -------- -------- Total $ 59,602 61,795 -3.5% 25,113 24,547 2.3% 34,489 37,248 -7.4% ======== ======== ======== ======== ======== ======== ======== ======== ======== Wholly-owned $ 24,951 26,350 10,780 10,714 14,171 15,636 Partnership 34,651 35,445 14,333 13,833 20,318 21,612 -------- -------- -------- -------- -------- -------- $ 59,602 61,795 25,113 24,547 34,489 37,248 ======== ======== ======== ======== ======== ======== Notes: (a) Information shown is Combined, including partnership communities at 100%. (b) Represents average daily physical occupancy. (c) Represents amounts collected for rent and other income per month. (d) See page 36 for reconciliation of same store community revenue, expenses, net operating income and EBITDA. Second Quarter 2003 Page 30 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES SIX MONTHS ENDED JUNE 30
PHYSICAL OCCUPANCY AND COLLECTED REVENUE PER OCCUPIED UNIT (a) - -------------------------------- Weighted Average Weighted Average Occupancy (b) Collected Revenue (c) --------------------------------- --------------------------------- Apartment Percent Percent Market Homes 2003 2002 Change 2003 2002 Change - ------ --------- -------- -------- -------- -------- -------- -------- Dallas 6,560 89.8% 91.4% -1.7% $ 824 856 -3.7% Atlanta 5,637 90.5% 90.1% 0.5% 862 907 -5.0% Austin 2,797 91.0% 91.6% -0.6% 818 882 -7.3% Houston 1,133 90.0% 91.4% -1.5% 1,066 1,092 -2.4% Indianapolis 2,028 90.2% 90.9% -0.8% 808 798 1.3% Kansas City 2,518 90.1% 91.2% -1.2% 839 863 -2.8% Chicago 3,243 90.4% 90.4% -0.1% 1,106 1,150 -3.8% Denver 742 87.6% 87.5% 0.2% 1,028 1,084 -5.2% ------- ------ ------ ------ ------ ------ ------ Total 24,658 90.2% 90.8% -0.7% $ 887 923 -3.9% ======= ====== ====== ====== ====== ====== ====== Second Quarter 2003 Page 31 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED SIX MONTHS ENDED JUNE 30
REVENUE, EXPENSES AND NET OPERATING INCOME (a) (dollars in thousands) - ---------------------------------------------- Revenue Expenses Net Operating Income (d) ---------------------------- ---------------------------- ----------------------------- Percent Percent Percent Market 2003 2002 Change 2003 2002 Change 2003 2002 Change - ------ -------- -------- -------- -------- -------- -------- -------- -------- -------- Dallas $ 29,107 30,741 -5.3% 13,099 13,126 -0.2% 16,008 17,615 -9.1% Atlanta 26,423 27,670 -4.5% 10,102 9,899 2.1% 16,321 17,771 -8.2% Austin 12,499 13,552 -7.8% 5,752 5,827 -1.3% 6,747 7,725 -12.7% Houston 6,522 6,780 -3.8% 2,865 2,934 -2.4% 3,657 3,846 -4.9% Indianapolis 8,771 8,811 -0.5% 3,598 3,380 6.4% 5,173 5,431 -4.7% Kansas City 11,431 11,901 -4.0% 4,158 4,096 1.5% 7,273 7,805 -6.8% Chicago 19,447 19,898 -2.3% 7,792 7,456 4.5% 11,655 12,442 -6.3% Denver 4,009 4,221 -5.0% 1,303 1,273 2.4% 2,706 2,948 -8.2% -------- -------- -------- -------- -------- -------- -------- -------- -------- Total $118,209 123,574 -4.3% 48,669 47,991 1.4% 69,540 75,583 -8.0% ======== ======== ======== ======== ======== ======== ======== ======== ======== Wholly-owned $ 49,646 52,871 20,908 20,790 28,738 32,081 Partnership 68,563 70,703 27,761 27,201 40,802 43,502 -------- -------- -------- -------- -------- -------- $118,209 123,574 48,669 47,991 69,540 75,583 ======== ======== ======== ======== ======== ======== Notes: (a) Information shown is Combined, including share of partnership communities at 100%. (b) Represents average daily physical occupancy, which was changed starting with the third quarter 2002, from beginning of the month physical occupancy. (c) Represents amounts collected for rent and other income. Previously reported average rental rate per occupied unit. (d) See page 39 for reconciliation of same store community revenue, expenses, net operating income and EBITDA. Second Quarter 2003 Page 32 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE The following graphs present monthly rental revenue for the year 2003 in black, compared to monthly rental revenue for the twelve months of 2002 in gray. Commentary and financial data are "Combined" (including partnership communities at 100%) and based only on the same community portfolio. "Combined" same community rental revenue for the second quarter of 2003 totaled $55.2 million, or 92.6% of total community revenue, which was $59.6 million. The difference is attributable to other community revenue, which includes ancillary services revenue and rental-related fees. ALL COMMUNITIES - --------------- For the second quarter 2003 compared to the same quarter a year ago, rental revenue for the same community portfolio declined 4.7%. The change was attributable to a 4.5% decline in collected rent per occupied unit and a modest 0.2% decline in occupancy, reflecting some stabilization. On a sequential basis, rental revenue began to trend up this quarter for the first time since third quarter 2001, increasing by 0.7%. Collected rent per occupied unit was down from last quarter by 1.4%; however, occupancy has begun to increase and was up 1.9%. DALLAS - ------ Dallas rental revenue declined by 5.7% compared to the second quarter of 2002, as collected rent per occupied unit fell by 5.1%, and occupancy fell by 0.5%. On a sequential basis, compared to the first quarter, rental revenue increased by 1.1% as a result of a 3.0% increase in occupancy and a 2.2% decline in collected rent per occupied unit, which was the largest quarterly sequential drop over the last four quarters. The Dallas/Ft. Worth market continued to experience demand pressure, with job losses totaling 28,000 for the 12-month period ending May 31, 2003. On the supply side, permit activity remained fairly strong with 11,277 new multifamily units authorized for the 12 months ended May 31, 2003, representing 2.2% of existing apartment stock. ATLANTA - ------- Atlanta rental revenue declined 4.9% compared to the second quarter of 2002, driven by a 5.6% decline in collected rent per occupied unit and a 0.7% increase in occupancy. On a sequential basis, rental revenue declined by 0.8% compared to the first quarter as collected rent per occupied unit continued to fall, down 1.4%. Occupancy increased 0.6% as traffic and rentals increased by 34.4% and 39.9%, respectively. The challenge in Atlanta remains absorption of new supply, with 11,505 multifamily units permitted for the 12 months ended May 31, 2003, which represents a 3.1% of the existing apartment stock. The good news in Atlanta is that annualized permits have fallen by 27.5% versus the same period a year ago, and job growth has turned positive. Atlanta generated 8,000 new jobs for the 12 months ended May 31, 2003. Second Quarter 2003 Page 33 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED CHICAGO - ------- Chicago rental revenue declined 3.6% compared to the same quarter a year ago, driven entirely by a 3.6% decrease in collected rent per occupied unit, as occupancy remained unchanged at 92.1%. Sequentially, rental revenue increased by 2.6% over the first quarter after three consecutive quarterly decreases. This increase was due to a 3.5% gain in occupancy. While occupancy was increasing, collected rent per occupied unit continued to trend downward, dropping 1.3% in the second quarter compared to last quarter. In general, employment losses in Chicago, which were 28,300 for the twelve months ended May 31, 2003, continue to depress apartment demand and put downward pressure on rental rates in this market. On the supply side, the Chicago metro issued permits for 9,133 new multifamily units, representing 1.4% of existing apartment stock, for the 12 months ended ending May 31, 2003, a 10% decrease from the previous period. AUSTIN - ------ Austin rental revenue declined 6.9% compared to the second quarter of 2002 due to a decrease in collected rent per occupied unit of 6.8%, as occupancy was unchanged year over year at 91.4%. On a sequential basis, compared to the first quarter, rental revenue fell by 0.4% despite an increase in occupancy of 0.7% as collected rent per occupied unit continued to fall, decreasing by 1.0%. Austin is one of the few markets reporting job gains, as approximately 4,700 jobs were added for the twelve months ended May 31, 2003. Despite the positive employment trend, roughly 7,000 multifamily units will be delivered in 2003, which will continue to challenge this market in the near future. On a positive note, permits are down significantly, decreasing by 49% on a year over year basis as of May 31, 2003. KANSAS - ------ Kansas rental revenue declined 4.5% compared to the same period of a year ago due to decreases in both collected rent per occupied unit and occupancy of 2.0% and 2.3%, respectively. Sequentially, rental revenue increased 1.2% driven by improving occupancy that was up 1.2% compared to the first quarter, while collected rent per occupied unit remained essentially unchanged. Kansas continues to be challenged by weak demand fundamentals exhibited by declining job growth. For the 12 months ended May 31, 2003, the Kansas City metro area lost 19,800 jobs, a negative 2.1% revenue rate. In addition, multifamily permits are trending up. For the 12 months ended May 31, 2003, authorized permits totaled 2,998 units, an 86.2% increase over the same period of a year ago, representing a 2.4% increase to the existing apartment stock. Second Quarter 2003 Page 34 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED INDIANAPOLIS - ------------ Indianapolis rental revenue for the second quarter 2003 declined 0.4% compared to the same quarter a year ago as a result of minor declines in both occupancy and collected rent per occupied unit of 0.4% and 0.2%, respectively. Sequentially, rental revenue grew 1.6% from the first quarter on the strength of improving occupancy, which increased 1.7% and stability in collected rent per occupied unit, which remained relatively unchanged, down 0.2%. Demand and supply fundamentals in Indianapolis continue to be a concern as evidenced by a loss of 25,300 jobs, or a negative 2.8%, growth rate for the 12 months ended May 31, 2003. In addition, 2,661 multifamily permits have been authorized over the past year, up 6.4% from the same period a year ago, which represents a 2.2% increase to the existing apartment stock. HOUSTON - ------- Houston rental revenue declined by 4.6% in the second quarter of 2003 compared to the second quarter 2002. Both occupancy and collected rent per occupied unit fell from the same period a year earlier, decreasing 1.1% and 3.6%, respectively. On a sequential basis, rental revenue increased by 0.4% over the first quarter, mainly due to a 2.0% increase in occupancy. The increase in occupancy, however, was offset in part by a 1.9% decrease in collected rent per occupied unit. Houston is faced with challenging supply and demand fundamentals in the near term. Permit activity has increased dramatically as 14,987 multifamily permits, 3.3% of existing stock, were issued for the 12 months ended May 31, 2003, an increase of 111% over last May. On the demand side, Houston has lost 15,500 jobs for the twelve months ended May 31, 2003. DENVER - ------ Denver rental revenue on a year over year basis fell 4.6% due to continued weakness in the market, which pushed collected rent per occupied unit down 6.4% over the same period last year, while occupancy improved by 1.4%. On a sequential basis, rental revenue declined 0.8% from the first quarter due to further deterioration of collected rent per occupied unit, which feel 3.0%. The decline in rental revenue was limited by a 1.7% improvement in occupancy during the period. The Denver/Boulder metro area continues to display weak demand/supply fundamentals driven by negative job growth and significant new supply. For the 12 months ended May 31, 2003, the metro experienced a loss of 16,000 jobs, a negative 1.2% growth rate. On a positive note, for the 12 months ended May 31, 2003 authorized permits totaled 6,227 units, a 47.6% decrease over the same period of a year ago. Second Quarter 2003 Page 35 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI THREE MONTHS ENDED JUNE 30 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined (g)(h) at 100% ---------------------------- -------------------------- -------------------------- Percent Percent Percent 2003 2002 Change 2003 2002 Change 2003 2002 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUE Same store communities (b). . . . 24,951 26,350 -5.3% 36,453 38,093 -4.3% 34,651 35,445 -2.2% New communities (c) . . 0 0 0.0% 533 430 24.0% 2,252 1,776 26.8% Communities under development and lease-up . . . . . . . 374 1 28963.7% 1,050 121 766.0% 2,597 411 531.7% Acquisition communities (d). . . . 2,156 329 555.3% 2,969 585 407.6% 2,438 1,075 126.8% Communities sold/ contributed to ventures (e) . . . . . 0 2,115 0.0% 0 2,644 -100.0% 955 2,946 -67.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- 27,481 28,795 -4.6% 41,005 41,873 -2.1% 42,893 41,653 3.0% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b). . . . 10,780 10,714 0.6% 15,549 15,332 1.4% 14,333 13,833 3.6% New communities (c) . . 0 0 0.0% 221 201 9.8% 921 840 9.6% Communities under development and lease-up . . . . . . . 189 56 234.4% 528 157 235.0% 1,363 361 277.2% Acquisition communities (d). . . . 1,005 143 604.0% 1,308 213 513.5% 941 296 217.8% Communities sold/ contributed to ventures (e) . . . . . 0 864 -100.0% 0 1,120 -100.0% 438 1,440 -69.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- 11,974 11,777 1.7% 17,606 17,023 3.4% 17,996 16,770 7.3% ======== ======== ======== ======== ======== ======== ======== ======== ======== Second Quarter 2003 Page 36 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED THREE MONTHS ENDED JUNE 30 (Dollars in thousands) Partnership Communities Wholly-Owned Communities (a) Combined (g) (h) at 100% ---------------------------- -------------------------- -------------------------- Percent Percent Percent 2003 2002 Change 2003 2002 Change 2003 2002 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (b). . . . 14,171 15,636 -9.4% 20,904 22,761 -10.0% 20,318 21,612 -6.0% New communities (c) . . 0 0 0.0% 312 229 88.0% 1,331 936 42.3% Communities under development and lease-up . . . . . . . 185 -55 -435.5% 522 (36) 1,234 49 2369.6% Acquisition communities (d). . . . 1,151 186 518.0% 1,661 372 0.0% 1,497 779 92.3% Communities sold/ contributed to ventures (e) . . . . . 0 1,251 -100.0% 0 1,524 -100.0% 517 1,507 -65.7% -------- -------- -------- -------- -------- -------- -------- -------- -------- 15,507 17,018 -8.9% 23,399 24,850 -7.5% 24,897 24,883 0.1% ======== ======== ======== ======== ======== ======== ======== Cash flow preference and operating promote (f). . . . . . 695 915 -------- -------- Company's share of NOI (g) . . . . . . . 24,094 25,765 Company's share of other, net. . . . . . -120 39 -------- -------- COMPANY'S SHARE OF COMMUNITIES' EBITDA . 23,974 25,804 ======== ======== COMPANY'S PERCENTAGE OF PARTNERSHIPS' NOI: Before cash flow preferences (e). . . . 31.7% 31.5% Including cash flow preferences and other (f). . . . . . . 34.5% 35.2% ======== ======== Second Quarter 2003 Page 37 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED THREE MONTHS ENDED JUNE 30 (Dollars in thousands) Notes: (a) Includes communities that were sold and reported as Discontinued Operations in the Company's Statements of Operations. (b) Same store communities are communities that have had stabilized operations and were owned by the Company as of January 1, 2002. (c) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2002. (d) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2002. (e) 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. (f) 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 42. (g) Based on the Company's ownership share of each partnership's NOI. Reflects 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 42. (h) Company's 100% interest in wholly-owned communities plus the Company's share of partnership communities. Second Quarter 2003 Page 38 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMPONENTS OF NOI SIX MONTHS ENDED JUNE 30 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined (g)(h) at 100% ---------------------------- -------------------------- -------------------------- Percent Percent Percent 2003 2002 Change 2003 2002 Change 2003 2002 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUE Same store communities (a). . . . 49,646 52,871 -6.1% 72,376 76,358 -5.2% 68,563 70,703 -3.0% New communities (b) . . 0 0 0.0% 1,056 782 35.1% 4,469 3,207 39.3% Communities under development and lease-up . . . . . . . 598 1 46309.0% 1,775 181 878.7% 4,484 613 631.9% Acquisition communities (c). . . . 4,320 330 1213.0% 5,870 585 903.5% 4,648 1,075 332.5% Communities sold/ contributed to ventures (d) . . . . . 0 4,238 -100.0% 0 5,341 -100.0% 1,859 6,586 -71.8% -------- -------- -------- -------- -------- -------- -------- -------- -------- 54,564 57,440 -5.0% 81,077 83,247 -2.6% 84,023 82,184 2.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (a). . . . 20,908 20,791 0.6% 30,156 29,863 1.0% 27,761 27,201 2.1% New communities (b) . . 0 0 0.0% 434 387 11.9% 1,814 1,611 12.6% Communities under development and lease-up . . . . . . . 398 64 518.8% 1,016 217 365.3% 2,476 544 355.0% Acquisition communities (c). . . . 1,989 143 1293.2% 2,540 212 1091.4% 1,678 296 466.5% Communities sold/ contributed to ventures (d) . . . . . 0 1,728 -100.0% 0 2,264 -100.0% 856 3,035 -71.8% -------- -------- -------- -------- -------- -------- -------- -------- -------- 23,295 22,726 2.5% 34,146 32,943 3.6% 34,585 32,687 5.8% ======== ======== ======== ======== ======== ======== ======== ======== ======== Second Quarter 2003 Page 39 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED SIX MONTHS ENDED JUNE 30 (Dollars in thousands) Partnership Communities Wholly-Owned Communities (a) Combined (g) (h) at 100% ---------------------------- -------------------------- -------------------------- Percent Percent Percent 2003 2002 Change 2003 2002 Change 2003 2002 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (a). . . . 28,738 32,080 -10.4% 42,220 46,495 -9.1% 40,802 43,502 -6.2% New communities (b) . . 0 0 0.0% 622 395 57.9% 2,655 1,596 66.3% Communities under development and lease-up . . . . . . . 200 -63 -416.0% 759 -36 -2146.6% 2,008 69 2829.7% Acquisition communities (c). . . . 2,331 187 1151.6% 3,330 373 795.7% 2,970 779 281.5% Communities sold/ contributed to ventures (d) . . . . . 0 2,510 0.0% 0 3,077 -100.0% 1,003 3,551 -71.8% -------- -------- -------- -------- -------- -------- -------- -------- -------- 31,269 34,714 -9.9% 46,931 50,304 -6.7% 49,438 49,497 -0.1% ======== ======== ======== ======== ======== ======== ======== Cash flow preference and operating promote (e). . . . . . 1,350 1,537 -------- -------- Company's share of NOI (f) . . . . . . . 48,281 51,841 Company's share of other, net. . . . . . -180 -3 -------- -------- COMPANY'S SHARE OF COMMUNITIES' EBITDA . 48,101 51,838 ======== ======== COMPANY'S PERCENTAGE OF PARTNERSHIPS' NOI: Before cash flow preferences (e). . . . 31.7% 31.5% Including cash flow preferences and other (f). . . . . . . 34.4% 34.6% ======== ======== Second Quarter 2003 Page 40 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED THREE MONTHS ENDED JUNE 30 (Dollars in thousands) Notes: (a) Includes communities that were sold and reported as Discontinued Operations in the Company's Statements of Operations. (b) Same store communities are communities that have had stabilized operations and were owned by the Company as of January 1, 2002. (c) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2002. (d) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2002. (e) 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. (f) 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 42. (g) Based on the Company's ownership share of each partnership's NOI. Reflects 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 42. (h) Company's 100% interest in wholly-owned communities plus the Company's share of partnership communities. Second Quarter 2003 Page 41 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION (Dollars in thousands) Three Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- FEE INCOME (a) Acquisition fees (a). . . . . . . . . . . . . $ -- 401 Asset management fees (b) . . . . . . . . . . 118 118 Disposition fees (c). . . . . . . . . . . . . -- 239 Debt/equity placement fees (a). . . . . . . . -- -- Development fees (a). . . . . . . . . . . . . 394 502 Promoted interest from sales and Other. . . . -- -- ---------- ---------- 512 1,260 ---------- ---------- SHARE OF CASH FLOW (d) Promoted interest from operating cash flow. . 146 170 Cash flow preferences (e) . . . . . . . . . . 549 745 ---------- ---------- 695 915 ---------- ---------- TOTAL . . . . . . . . . . . . . . . . . . $ 1,207 2,175 ========== ========== Six Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- FEE INCOME (a) Acquisition fees (a). . . . . . . . . . . . . $ -- 401 Asset management fees (b) . . . . . . . . . . 236 247 Disposition fees (c). . . . . . . . . . . . . -- 239 Debt/equity placement fees (a). . . . . . . . -- -- Development fees (a). . . . . . . . . . . . . 732 960 Promoted interest from sales. . . . . . . . . -- -- ---------- ---------- 968 1,847 ---------- ---------- SHARE OF CASH FLOW (d) Promoted interest from operating cash flow. . 271 276 Cash flow preferences (e) . . . . . . . . . . 1,079 1,261 ---------- ---------- 1,350 1,537 ---------- ---------- TOTAL . . . . . . . . . . . . . . . . . . $ 2,318 3,384 ========== ========== Second Quarter 2003 Page 42 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION - CONTINUED (Dollars in thousands) 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 44. (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 pages 36 and 39. (e) The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. Second Quarter 2003 Page 43 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS - ------------------------------------------- Three Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- REVENUES Property management fees (a). . . . . . . . . $ 2,611 2,572 General contractor revenues, net (b). . . . . 360 604 Gross profit - corporate homes (c). . . . . . 251 399 Other income. . . . . . . . . . . . . . . . . 395 397 ---------- ---------- 3,617 3,972 ---------- ---------- OPERATING EXPENSES Property management . . . . . . . . . . . . . 2,663 2,446 General contractor. . . . . . . . . . . . . . 498 519 Corporate homes . . . . . . . . . . . . . . . 245 253 ---------- ---------- 3,406 3,218 ---------- ---------- EBITDA (d). . . . . . . . . . . . . . . . . . 211 754 Gain (loss) on land sales, net. . . . . . . . -- (4) Interest expense. . . . . . . . . . . . . . . (230) (464) Depreciation and amortization . . . . . . . . (780) (754) Taxes . . . . . . . . . . . . . . . . . . . . 303 178 ---------- ---------- NET INCOME (LOSS) . . . . . . . . . . . . . . (496) (290) Eliminations, interest and other (d). . . . . 247 (42) ---------- ---------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (e) . . . . . . . . . . . $ (249) (332) ========== ========== Notes: (a) Includes a 3% fee from wholly-owned communities. (b) General contractor revenues are shown net of construction costs. (c) Gross revenues from customers less payments to communities and cost of sales. (d) Share of Service Company's EBITDA of $228 in 2003 on page 12 equals EBITDA above of $211 plus $17 of intercompany elimination. (e) See Company's Consolidated Statements of Operations. Second Quarter 2003 Page 44 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS - ------------------------------------------- Six Months Ended June 30, ----------------------- 2003 2002 ---------- ---------- REVENUES Property management fees (a). . . . . . . . . $ 5,162 5,137 General contractor revenues, net (b). . . . . 985 1,237 Gross profit - corporate homes (c). . . . . . 477 745 Other income. . . . . . . . . . . . . . . . . 600 644 ---------- ---------- 7,224 7,763 ---------- ---------- OPERATING EXPENSES Property management . . . . . . . . . . . . . 5,014 4,955 General contractor. . . . . . . . . . . . . . 940 1,068 Corporate homes . . . . . . . . . . . . . . . 475 495 ---------- ---------- 6,429 6,518 ---------- ---------- EBITDA. . . . . . . . . . . . . . . . . . . . 795 1,245 Gain (loss) on land sales, net. . . . . . . . -- (77) Interest expense. . . . . . . . . . . . . . . (401) (873) Depreciation and amortization . . . . . . . . (1,540) (1,470) Taxes . . . . . . . . . . . . . . . . . . . . 458 446 ---------- ---------- NET INCOME (LOSS) . . . . . . . . . . . . . . (688) (729) Eliminations, interest and other (d). . . . . 397 (98) ---------- ---------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (e) . . . . . . . . . . . $ (291) (827) ========== ========== Notes: (a) Includes a 3% fee from wholly-owned communities. (b) General contractor revenues are shown net of construction costs. (c) Gross revenues from customers less payments to communities and cost of sales. (d) Share of Service Company's EBITDA of $791 in 2003 on page 13 equals EBITDA above of $795 less $4 of intercompany elimination. (e) See Company's Consolidated Statements of Operations. Second Quarter 2003 Page 45 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED FINANCIAL POSITION - ------------------------------------- June 30, December 31, 2003 2002 ---------- ------------ ASSETS: Receivables (a) . . . . . . . . . . . . . $ 12,453 11,532 Land held for sale (b). . . . . . . . . . 12,816 12,732 Rental communities under development and held for sale (c) . . . . . . . . . . . 20,434 8,864 Building and leasehold improvements, net (d) . . . . . . . . . . . . . . . . 2,352 2,486 Information technology costs, net . . . . 8,287 8,329 Other (e) . . . . . . . . . . . . . . . . 5,636 8,831 ---------- ---------- TOTAL ASSETS. . . . . . . . . . . . . $ 61,978 52,774 ========== ========== Notes: (a) Primarily fee income from affiliates. (b) Represents 120 acres in Indiana with carrying cost of $7,616 and $7,591, and 34 acres in Texas with carrying cost of $5,200 and $5,141 in 2003 and 2002, respectively. (c) See pages 51, 53 and 55. (d) Primarily includes a corporate office building of $1,654 and $1,678, net of depreciation, respectively. (e) Represented by: Cash . . . . . . . . . . . . . . . . . . $ -- 3,616 Investments in partnerships. . . . . . . 1,747 1,729 Investment in real estate. . . . . . . . 737 737 Deferred income tax. . . . . . . . . . . 2,064 1,605 Unamortized goodwill . . . . . . . . . . 668 668 Other. . . . . . . . . . . . . . . . . . 420 476 ------- ------ $ 5,636 8,831 ======= ====== Second Quarter 2003 Page 46 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES June 30, 2003
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 Bryan Place 48% Dallas, TX 2002 1999 420 Acquisition Community 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 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 7th Street Station 100% Ft. Worth, TX 2002 2000 189 Acquisition Community at Shadow Ridge 100% Flower Mound, TX 2001 2000 222 Same Store at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 Same Store on Timberglen 40% Dallas, TX 1990 1985 260 Same Store Upper West Side 100% Ft. Worth, TX 2002 2001 194 Acquisition Community at Valley Ranch 100% Irving, TX 1990 1985 460 Same Store at Verandah 100% Arlington, TX 1997 1986/91 538 Acquisition Community ------ ------ 7,901 27.7% ------ ------ Second Quarter 2003 Page 47 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED June 30, 2003 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 Barrett Walk 25% Kennesaw, GA Developed 2002 290 New Community at Clairmont 100% Atlanta, GA 1988 1988 288 Same Store at Kedron Village 20% Fayette County, GA Developed 2002 216 New Community at Killian Creek 100% Snellville, GA Developed 1999 256 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 Same Store at Mill Creek 25% Gwinnett County, GA Developed 2001 400 New Community at Northwinds 35% Alpharetta, GA Developed 1999 800 Same Store at Park Bridge 25% Alpharetta, GA Developed 2000 352 Same Store 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 ------ ------ 6,543 22.9% ------ ------ 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 Same Store 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 11.4% ------ ------ Second Quarter 2003 Page 48 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED June 30, 2003 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 9.8% ------ ------ KANSAS CITY, KS - --------------- AMLI: at Cambridge Square 30% Overland Park, KS Developed 2002 408 New Community 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 Same Store at Town Center 100% Overland Park, KS 1997 1997 156 Same Store at Wynnewood Farms 25% Overland Park, KS Developed 2000 232 Same Store ------ ------ 2,926 10.3% ------ ------ INDIANAPOLIS, IN - ---------------- AMLI: at Castle Creek 40% Indianapolis, IN Developed 2000 276 Same Store 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 on Spring Mill (residual) 20% Carmel, IN 1999 1999 400 Other ------ ------ 2,428 8.5% ------ ------ Second Quarter 2003 Page 49 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED June 30, 2003 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 Kings Harbor 25% Houston, TX Developed 2001 300 New Community at the Medical Center 100% Houston, TX 2001 2000 334 Same Store Midtown 45% Houston, TX 2000 1998 419 Same Store Towne Square 45% Houston, TX 2000 1999 380 Same Store ------ ------ 1,433 5.0% ------ ------ DENVER, CO - ---------- AMLI: at Lowry Estates 50% Denver, CO 2000 2000 414 Same Store at Gateway Park 100% Denver, CO 2000 2000 328 Same Store at Park Meadows 25% Littleton, CO 2002 2001 518 Acquisition ------ ------ Community 1,260 4.4% ------ ------ TOTAL 28,531 100% ====== ====== Note: (a) Based on number of apartment homes Second Quarter 2003 Page 50 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY June 30, 2003 (Dollars in thousands)
Number Percen- of Con- Antici- Antici- Number of tage of Apart- struc- pated pated Apartment Percent Percent Owner- ment tion First Comple- Stabil- Homes Complete Leased Market/Community Submarket ship Homes StartedOccupancy tion ization Delivered (a) (b) - ---------------- --------- ------- ------ ---------------- ------- ------- --------- -------- ------- ATLANTA, GA - ----------- AMLI at Milton Park Alpharetta, GA 25% 461 4Q/00 1Q/02 3Q/03 4Q/03 377 97% 86% AUSTIN, TX - ---------- AMLI Downtown Austin, TX 30% 220 2Q/02 1Q/04 3Q/04 4Q/04 -- 44% N/A INDIANAPOLIS, IN - ---------------- AMLI Carmel CenterCarmel, IN 100% 322 2Q/01 2Q/02 2Q/03 1Q/04 322 99% 63% CHICAGO, IL - ----------- AMLI: at Seven Bridges Woodridge, IL 20% 520 3Q/01 3Q/02 4Q/03 4Q/04 390 90% 44% at Museum Gardens Vernon Hills, IL 25% 294 2Q/03 3Q/04 1Q/05 1Q/06 0 10% N/A ----- ----- Total 1,817 1,089 ===== ===== Second Quarter 2003 Page 51 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY June 30, 2003 - CONTINUED (Dollars in thousands) Number Percen- of Con- Antici- Antici- Number of tage of Apart- struc- pated pated Apartment Percent Percent Owner- ment tion First Comple- Stabil- Homes Complete Leased Market/Community Submarket ship Homes StartedOccupancy tion ization Delivered (a) (b) - ---------------- --------- ------- ------ ---------------- ------- ------- --------- -------- ------- COMMUNITIES BEING DEVELOPED FOR SALE BY A CONSOLIDATED SERVICE COMPANY INDIANAPOLIS, IN - ---------------- AMLI at Old Town Carmel Carmel, IN 100% 91 1Q/03 4Q/03 2Q/04 3Q/04 -- 30% N/A AUSTIN, TX - ---------- AMLI at Walnut Creek Austin, TX 100% 460 4Q/02 3Q/03 2Q/04 4Q/05 -- 51% N/A --- ---- Total 551 -- === ==== Notes: (a) Represents costs to date divided by Total Development Costs. (b) Represents number of leased apartments (not necessarily occupied) divided by the total Number of Apartment Homes. Second Quarter 2003 Page 52 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY June 30, 2003 (Dollars in thousands)
Joint Company's Share of Required Equity Capital Venture ---------------------------------------------- Total Fully Partner Development Funded Equity Funded Balance 2004/ Market/Community Costs (a) Debt (b) Capital Total to Date of 2003 2005 - ---------------- ----------- ---------- --------- -------- -------- ------- -------- ATLANTA, GA - ----------- AMLI at Milton Park $ 35,000 -- 26,250 8,750 7,991 759 -- AUSTIN, TX - ---------- AMLI Downtown 50,920 30,920(c) 14,000 6,000 6,000 -- -- INDIANAPOLIS, IN - ---------------- AMLI Carmel Center 28,400 -- -- 28,400 27,271 1,129 -- CHICAGO, IL - ----------- AMLI: at Seven Bridges 82,200 60,000(d) 17,760 4,440 4,542 (102)(f) -- at Museum Gardens 60,100 37,000(e) 17,325 5,775 1,549 3,938 288 -------- ------- ------- ------- ------- ------ ------- TOTAL $256,620 127,920 75,335 53,365 47,353 5,724 288 ======== ======= ======= ======= ======= ====== ======= Second Quarter 2003 Page 53 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED June 30, 2003 (Dollars in thousands) Joint Company's Share of Required Equity Capital Venture ---------------------------------------------- Total Fully Partner Development Funded Equity Funded Balance 2004/ Market/Community Costs (a) Debt (b) Capital Total to Date of 2003 2005 - ---------------- ----------- ---------- --------- -------- -------- ------- -------- COMMUNITIES BEING DEVELOPED FOR SALE BY A CONSOLIDATED SERVICE COMPANY INDIANAPOLIS, IN - ---------------- AMLI at Old Town Carmel 11,400 -- -- 11,400 2,916 6,084 2,400 AUSTIN, TX - ---------- AMLI at Walnut Creek 31,370 -- -- 31,370 17,518 9,000 4,852 -------- ------- ------- ------- ------- ------ ------- TOTAL $ 42,770 -- -- 42,770 20,434 15,084 7,252 ======== ======= ======= ======= ======= ====== ======= Notes: (a) Includes anticipated costs of initial lease-up, some of which will be expensed. (b) Represents existing fully funded loan commitment. (c) This construction loan is the source of funds for development completion. (d) The partnership has obtained a commitment for a $60,000, 7.25%, 7-year permanent loan which will replace the existing fully funded $50,000 construction loan. (e) The Partnership has obtained a commitment from its co-investment partner to fund a $37,000, 7.25%, 10-year construction permanent loan. (f) Reflects share of excess of permanent loan proceeds over share of completion costs. Second Quarter 2003 Page 54 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE June 30, 2003 Number of Apartment Market/Community Submarket Homes - ---------------- --------- --------- AUSTIN, TX - ---------- AMLI at Anderson Mill Northwest Austin 520 FORT WORTH, TX - -------------- AMLI at Mesa Ridge North Fort Worth 230 HOUSTON, TX - ----------- AMLI at Champions II Northwest Houston 288 KANSAS CITY, KS - --------------- AMLI at: Lexington Farms - Phase II Overland Park 104 Westwood Ridge Overland Park 428 ------ Total 1,570 ====== Second Quarter 2003 Page 55 Supplemental Information AMLI Residential Properties Trust -----END PRIVACY-ENHANCED MESSAGE-----