-----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, GjwoFtNYqdeE0iLc7ishz6LqVkqr50hix7E+977WzFu8aSvvBC2ERUHHE6FkmQze Hjy/7nKwgBCVtsm5wQhISg== 0000892626-03-000367.txt : 20031029 0000892626-03-000367.hdr.sgml : 20031029 20031028191245 ACCESSION NUMBER: 0000892626-03-000367 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031028 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031029 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: 03961981 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_8k.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): October 28, 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 October 28, 2003 incorporated herein by reference. 99.2 Third 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 October 28, 2003, AMLI Residential Properties Trust ("AMLI") issued a News Release announcing its earnings for the third 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: October 28, 2003 By: /s/ ROBERT J. CHAPMAN ----------------------------- Robert J. Chapman Chief Financial Officer 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION - ------ ----------- 99.1 News Release, dated October 28, 2003 incorporated herein by reference. 99.2 Third 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: October 28, 2003 Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES THIRD QUARTER 2003 OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the third quarter ended September 30, 2003. EARNINGS - -------- Funds From Operations ("FFO") for the third quarter 2003 were $14,684,000, or $0.57 per common share, compared to $14,306,000, or $0.56 per common share, for the third quarter 2002, a per share increase of 1.8%. FFO per share is $0.03 higher than First Call's current estimate and $.02 higher than the Company's prior guidance. FFO for the nine months ended September 30, 2003 was $39,190,000, or $1.57 per share, compared to $46,239,000, or $1.79 per share, for the nine months ended September 30, 2002, a per share decrease of 12.3%. FFO for the nine months ended September 30, 2003 includes a non-cash impairment loss of $1,191,000, or $0.05 per common share, that occurred last quarter, but was not reflected in FFO at the time. Subsequently, the Company restated FFO and AFFO for the quarter ended June 30, 2003 as a result of recent guidance form the Securities and Exchange Commission and in accordance with NAREIT's revised definition of FFO. Net income for the quarter and the nine months ended September 30, 2003 were $5,935,000 and $12,571,000, respectively, as compared to $17,652,000 and $31,603,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended September 30, 2003 was $0.21, compared to $0.87 for the comparable period of 2002, a decrease of 75.9%. For the nine months ended September 30, 2003, EPS was $0.38 compared to $1.40 for the comparable period of 2002, a decrease of 72.9%. The decreases were primarily attributable to fewer gains on sales of communities, lower community net operating income and the impairment charge noted above. "AMLI had an excellent quarter," commented Allan J. Sweet, AMLI's President. "We were successful in improving occupancy levels at our communities, helping us to achieve sequential same store total revenue growth across our portfolio for the second consecutive quarter this year. We also were active buying and selling and believe we have improved the overall quality of our portfolio. Looking forward, we also expect to be active in the fourth quarter. Our equity offering was well received by the market, and we were pleased that we could raise the funds in connection with identified investment activity." 1 SAME COMMUNITY RESULTS - ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended September 30, 2003 versus the prior year's quarter, total community revenue decreased 1.5%, operating expenses increased 2.4%, and net operating income ("NOI") decreased 4.3%. Weighted average occupancy for the quarter was 93.4%, a 2.1% increase compared to last year and a 2.2% increase compared to last quarter, while the weighted average collected revenue per occupied unit of $867 decreased by 4.0% and 1.5% compared to last year and last quarter, respectively. OTHER OPERATING RESULTS - ----------------------- Total community revenue, including both wholly-owned communities and co- investment communities (at 100%) was $71,895,000 and $210,483,000, respectively, for the quarter and nine months ended September 30, 2003, as compared with $69,305,000 and $204,690,000 for the comparable periods in 2002, a 3.7% and 2.8% increase, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and nine months ended September 30, 2003 were $26,138,000 and $72,167,000, respectively, representing an increase of 6.9% and a decrease of 4.6%, respectively, from the same periods last year. EBITDA for the current year's nine months reflects the impairment adjustment described above. Previous quarters' disclosures did not reflect the charge. THIRD QUARTER ACTIVITIES - ------------------------ During the third quarter, AMLI closed on an equity offering of 2,415,000 shares of its common stock issued to the public at $24.40 per share. Net proceeds from the sale were approximately $58.1 million and were used to partially fund the purchase of partnership interests in a number of co- investment joint ventures that AMLI did not already own. The balance of the purchase prices, which was approximately $60 million, was funded under AMLI's primary line of credit and was matched with a like amount of five- year interest rate swaps and caps. The partnership interests acquired by AMLI during the quarter included those owned by Endowment Realty Investors II, a private REIT managed by Commonfund Realty, in AMLI at Regents Crest, AMLI Creekside and AMLI at Castle Creek, as well as Prudential Real Estate Investors' interests in AMLI at Oakhurst North and AMLI on Spring Mill. During the quarter, AMLI sold AMLI at Willeo Creek, a 242-unit community in Roswell, Georgia, in which AMLI owned 30%. AMLI received a disposition fee of $325,000 and a promoted interest of $375,000, in addition to approximately $3 million as its share of net sales proceeds. AMLI also received repayment of an approximately $9 million bridge loan that the partnership had borrowed from AMLI earlier this year to repay the maturing first mortgage on the property. Additionally, one of the Company's subsidiaries recognized a $1,913,000 gain, or $0.05 per common share net of income taxes, from the sale of an apartment community developed by a partnership in which the subsidiary owned an interest. SUBSEQUENT EVENTS - ----------------- In October, AMLI sold AMLI at Fossil Creek, a 384-unit co-investment community in Ft. Worth, Texas, in which AMLI owned 25%. AMLI received approximately $6.75% million as its share of the net sales proceeds. In addition, AMLI received a disposition fee of $110,000. 2 OUTLOOK - ------- AMLI's current expectation for FFO for the fourth quarter of 2003 is between $.54 and $.56, which means that full year 2003 FFO remains in the range of $2.11 to $2.14 per share (adjusted for the $0.05 impairment change due to the change in the definition of FFO, as described above). AMLI currently expects to provide FFO guidance for 2004 in mid-December. DIVIDEND - -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on November 18, 2003 to all common shareholders of record as of November 7, 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, October 29, 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 details of the Company's activities during the quarter. The Third 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 24, 25 and 26. 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. Additional definitions can be found in the Quarterly Supplemental Information. 3 ABOUT AMLI - ---------- The AMLI portfolio currently includes 73 apartment communities containing 27,905 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 ------------------------------------------------------------ THIRD QUARTER 2003 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI at Oakhurst North - Chicago, IL Acquired partner's interest in Third Quarter 2003 AMLI RESIDENTIAL PROPERTIES TRUST 125 South Wacker Drive 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 . . . . . . . . . . . . . . . . . . . 13 Statements of Operations. . . . . . . . . . . . . . . . . . 15 Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . 21 DEBT AND PREFERRED SHARES Debt and Preferred Shares Summary . . . . . . . . . . . . . 27 Debt Maturities . . . . . . . . . . . . . . . . . . . . . . 31 SAME STORE AND NOI DATA Quarterly Comparison of Same Store Communities. . . . . . . 33 Quarterly Comparison of Components of NOI . . . . . . . . . 42 OTHER DATA Co-Investment Compensation. . . . . . . . . . . . . . . . . 45 Service Companies Financial Information . . . . . . . . . . 46 PORTFOLIO Stabilized Communities. . . . . . . . . . . . . . . . . . . 50 Development Summary . . . . . . . . . . . . . . . . . . . . 56 Land Held for Development or Sale . . . . . . . . . . . . . 60 NON-GAAP FINANCIAL MEASURES Definition of Non-GAAP Financial Measures . . . . . . . . . 61 Reconciliation Between Net Income and FFO and AFFO. . . . . 63 Reconciliation Between Net Income and Consolidated NOI. . . 65 Reconciliation Between Net Income and Combined NOI. . . . . 68 Third 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, a public company whose shares of beneficial interest are traded on the NYSE under the symbol "AML." Our business is the development, acquisition and management of upscale apartment communities in the Southeast, Southwest, Midwest and Mountain regions of the United States. We also serve as an institutional advisor and asset manager for domestic and international, tax-exempt and taxable investors in connection with our joint venture co-investment business. A summary schedule of our investment communities is included in this Supplement. We operate all of our communities under the AMLI [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 Third 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: October 28, 2003 Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES THIRD QUARTER 2003 OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the third quarter ended September 30, 2003. EARNINGS - -------- Funds From Operations ("FFO") for the third quarter 2003 were $14,684,000, or $0.57 per common share, compared to $14,306,000, or $0.56 per common share, for the third quarter 2002, a per share increase of 1.8%. FFO per share is $0.03 higher than First Call's current estimate and $.02 higher than the Company's prior guidance. FFO for the nine months ended September 30, 2003 was $39,190,000, or $1.57 per share, compared to $46,239,000, or $1.79 per share, for the nine months ended September 30, 2002, a per share decrease of 12.3%. FFO for the nine months ended September 30, 2003 includes a non-cash impairment loss of $1,191,000, or $0.05 per common share, that occurred last quarter, but was not reflected in FFO at the time. Subsequently, the Company restated FFO and AFFO for the quarter ended June 30, 2003 as a result of recent guidance form the Securities and Exchange Commission and in accordance with NAREIT's revised definition of FFO. Net income for the quarter and the nine months ended September 30, 2003 were $5,935,000 and $12,571,000, respectively, as compared to $17,652,000 and $31,603,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended September 30, 2003 was $0.21, compared to $0.87 for the comparable period of 2002, a decrease of 75.9%. For the nine months ended September 30, 2003, EPS was $0.38 compared to $1.40 for the comparable period of 2002, a decrease of 72.9%. The decreases were primarily attributable to fewer gains on sales of communities, lower community net operating income and the impairment charge noted above. "AMLI had an excellent quarter," commented Allan J. Sweet, AMLI's President. "We were successful in improving occupancy levels at our communities, helping us to achieve sequential same store total revenue growth across our portfolio for the second consecutive quarter this year. We also were active buying and selling and believe we have improved the overall quality of our portfolio. Looking forward, we also expect to be active in the fourth quarter. Our equity offering was well received by the market, and we were pleased that we could raise the funds in connection with identified investment activity." Third Quarter 2003 Page 2 Supplemental Information AMLI Residential Properties Trust SAME COMMUNITY RESULTS - ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%) for the quarter ended September 30, 2003 versus the prior year's quarter, total community revenue decreased 1.5%, operating expenses increased 2.4%, and net operating income ("NOI") decreased 4.3%. Weighted average occupancy for the quarter was 93.4%, a 2.1% increase compared to last year and a 2.2% increase compared to last quarter, while the weighted average collected revenue per occupied unit of $867 decreased by 4.0% and 1.5% compared to last year and last quarter, respectively. OTHER OPERATING RESULTS - ----------------------- Total community revenue, including both wholly-owned communities and co- investment communities (at 100%) was $71,895,000 and $210,483,000, respectively, for the quarter and nine months ended September 30, 2003, as compared with $69,305,000 and $204,690,000 for the comparable periods in 2002, a 3.7% and 2.8% increase, respectively. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter and nine months ended September 30, 2003 were $26,138,000 and $72,167,000, respectively, representing an increase of 6.9% and a decrease of 4.6%, respectively, from the same periods last year. EBITDA for the current year's nine months reflects the impairment adjustment described above. Previous quarters' disclosures did not reflect the charge. THIRD QUARTER ACTIVITIES - ------------------------ During the third quarter, AMLI closed on an equity offering of 2,415,000 shares of its common stock issued to the public at $24.40 per share. Net proceeds from the sale were approximately $58.1 million and were used to partially fund the purchase of partnership interests in a number of co- investment joint ventures that AMLI did not already own. The balance of the purchase prices, which was approximately $60 million, was funded under AMLI's primary line of credit and was matched with a like amount of five- year interest rate swaps and caps. The partnership interests acquired by AMLI during the quarter included those owned by Endowment Realty Investors II, a private REIT managed by Commonfund Realty, in AMLI at Regents Crest, AMLI Creekside and AMLI at Castle Creek, as well as Prudential Real Estate Investors' interests in AMLI at Oakhurst North and AMLI on Spring Mill. During the quarter, AMLI sold AMLI at Willeo Creek, a 242-unit community in Roswell, Georgia, in which AMLI owned 30%. AMLI received a disposition fee of $325,000 and a promoted interest of $375,000, in addition to approximately $3 million as its share of net sales proceeds. AMLI also received repayment of an approximately $9 million bridge loan that the partnership had borrowed from AMLI earlier this year to repay the maturing first mortgage on the property. Additionally, one of the Company's subsidiaries recognized a $1,913,000 gain, or $0.05 per common share net of income taxes, from the sale of an apartment community developed by a partnership in which the subsidiary owned an interest. SUBSEQUENT EVENTS - ----------------- In October, AMLI sold AMLI at Fossil Creek, a 384-unit co-investment community in Ft. Worth, Texas, in which AMLI owned 25%. AMLI received approximately $6.75% million as its share of the net sales proceeds. In addition, AMLI received a disposition fee of $110,000. Third Quarter 2003 Page 3 Supplemental Information AMLI Residential Properties Trust OUTLOOK - ------- AMLI's current expectation for FFO for the fourth quarter of 2003 is between $.54 and $.56, which means that full year 2003 FFO remains in the range of $2.11 to $2.14 per share (adjusted for the $0.05 impairment change due to the change in the definition of FFO, as described above). AMLI currently expects to provide FFO guidance for 2004 in mid-December. DIVIDEND - -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on November 18, 2003 to all common shareholders of record as of November 7, 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, October 29, 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 details of the Company's activities during the quarter. The Third 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 24, 25 and 26. 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. Additional definitions can be found in the Quarterly Supplemental Information. Third Quarter 2003 Page 4 Supplemental Information AMLI Residential Properties Trust ABOUT AMLI - ---------- The AMLI portfolio currently includes 73 apartment communities containing 27,905 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. Third Quarter 2003 Page 5 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Quarter Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- REVENUE - ------- TOTAL REVENUE Consolidated (a). . . $ 33,731 29,401 29,150 29,407 29,483 30,254 29,272 Combined, including share of partner- ships (b) . . . . . 46,108 42,044 41,289 41,535 42,143 42,051 40,575 TOTAL COMMUNITY REVENUE Consolidated. . . . . 30,293 27,481 27,083 26,051 26,498 26,680 26,522 Combined, including share of partnerships 43,493 41,005 40,072 39,337 40,101 39,757 39,252 Combined, including partnerships at 100% 71,895 70,374 68,214 67,910 69,305 68,333 67,052 EARNINGS AND CASH FLOWS - ----------------------- EBITDA (c). . . . . . 26,138 22,415 23,614 24,628 24,460 25,930 25,231 FFO . . . . . . . . . 14,684 11,789 12,717 13,859 14,306 16,105 15,828 AFFO. . . . . . . . . 13,253 10,559 11,408 13,072 12,926 14,646 14,601 Net income. . . . . . 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Dividends (d) . . . . 11,787 11,758 11,733 11,926 12,316 12,432 12,286 Cash flows from operating activities 20,661 15,094 11,642 11,200 17,111 19,077 10,143 Cash flows from investing activities (113,754) (8,576) (20,700) 15,284 50,083 (50,122) (7,637) Cash flows from financing activities 90,210 (4,021) 9,496 (27,701) (67,685) 32,758 (5,981) Third Quarter 2003 Page 6 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Quarter Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- PER SHARE DATA - DILUTED - ----------------- FFO . . . . . . . . . $ 0.57 0.48 0.52 0.56 0.56 0.62 0.61 AFFO. . . . . . . . . 0.51 0.43 0.47 0.53 0.51 0.56 0.56 Net income allocable to common shares. . 0.21 0.06 0.10 0.40 0.87 0.29 0.26 Common dividends. . . 0.48 0.48 0.48 0.48 0.48 0.48 0.48 FFO payout ratio (based on per share amounts). . . 84% 100% 92% 86% 86% 78% 79% AFFO payout ratio (based on per share amounts). . . 94% 111% 102% 91% 95% 86% 86% NUMBER OF APARTMENT HOMES - --------------- STABILIZED COMMUNITIES Wholly-owned. . . . . 14,100 12,260 12,260 11,722 11,851 12,441 12,247 Partnerships. . . . . 14,189 16,271 15,573 15,811 15,595 15,911 15,011 ---------------------------------------- ------------------------------ ---------- 28,289 28,531 27,833 27,533 27,446 28,352 27,258 ---------------------------------------- ------------------------------ ---------- COMMUNITIES UNDER DEVELOPMENT AND/OR LEASE-UP - ----------------- Wholly-owned. . . . . 322 322 322 322 542 542 322 Partnerships. . . . . 1,495 1,495 1,919 2,219 2,215 2,215 2,615 ---------------------------------------- ------------------------------ ---------- 1,817 1,817 2,241 2,541 2,757 2,757 2,937 ---------------------------------------- ------------------------------ ---------- Total . . . . . . . . 30,106 30,348 30,074 30,074 30,203 31,109 30,195 ======================================== ============================== ========== See notes on following pages Third Quarter 2003 Page 7 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Quarter Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- CAPITALIZATION - -------------- REAL ESTATE AT COST, BEFORE DEPRECIATION Consolidated. . . . . $ 948,532 794,934 794,908 768,281 793,559 813,089 802,320 Combined, including share of partnerships 1,367,243 1,247,145 1,242,259 1,221,309 1,237,355 1,263,186 1,208,133 Combined, including partnerships at 100% 2,210,026 2,205,101 2,185,711 2,170,783 2,159,926 2,171,530 2,065,698 TOTAL ASSETS Consolidated. . . . . $ 1,069,187 953,547 950,693 920,854 919,849 964,800 915,344 Combined, including share of partnerships 1,285,536 1,173,354 1,169,970 1,148,778 1,146,244 1,170,959 1,112,731 DEBT Consolidated. . . . . $ 522,672 462,781 457,950 421,554 403,193 450,268 405,126 Combined, including share of partnerships 731,110 674,373 669,648 637,726 620,184 648,965 592,300 SHARE INFORMATION Common shares outstanding. . . . . 19,503,20716,928,64016,787,100 16,695,25017,557,17818,120,296 18,110,659 Preferred shares outstanding (g). . . 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 Operating Partnership units outstanding (f). . . . . . . . . 3,473,482 3,545,993 3,547,685 3,618,803 3,652,165 3,655,364 3,664,396 ----------------------------------------------------------------------------------- Total shares and units outstanding. . 27,001,68924,499,63324,359,785 24,339,05325,234,34325,800,660 25,800,055 =================================================================================== Third Quarter 2003 Page 8 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Quarter Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Weighted average shares and units outstanding 25,813,84424,433,34824,348,851 24,653,12825,542,93325,800,241 25,787,270 Share price, end of period. . . . $ 26.20 23.55 21.05 21.28 22.08 26.00 25.22 EQUITY MARKET CAPITALIZATION . . . 707,444 576,966 512,773 517,935 557,174 670,817 650,677 MARKET CAPITALIZATION Consolidated. . . . . $ 1,230,116 1,039,747 970,723 939,489 960,367 1,121,085 1,055,803 Combined, including share of partnerships 1,441,528 1,251,339 1,182,421 1,158,413 1,177,358 1,319,782 1,242,977 Combined,including partnerships at 100% 2,347,468 2,280,515 2,166,147 2,188,835 2,113,925 2,334,010 2,179,544 DEBT SERVICE (h) - ---------------- INTEREST EXPENSE Consolidated. . . . . $ 6,255 5,913 6,296 6,560 6,027 6,046 5,762 Combined, including share of partnerships 10,126 9,754 10,042 10,363 9,930 9,656 9,175 CAPITALIZED INTEREST Consolidated. . . . . 498 643 392 353 1,013 962 1,054 Combined, including share of partnerships 540 734 444 423 1,051 985 1,072 SCHEDULED PRINCIPAL PAYMENTS (normal amortization) Consolidated. . . . . 1,043 968 952 1,094 1,075 1,105 1,183 Combined, including share of partnerships 1,583 1,511 1,528 1,657 1,619 1,634 1,735 See notes on following pages Third Quarter 2003 Page 9 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION Quarter Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- OPERATIONAL RATIOS - ------------------ EBITDA, AS PERCENT OF TOTAL MARKET CAPITALIZATION Consolidated. . . . . 8.1% 8.5% 9.7% 10.5% 10.2% 9.2% 9.6% Combined, including share of unconsoli- dated affiliates debt 6.9% 7.1% 8.0% 8.5% 8.3% 7.9% 8.1% INTEREST COVERAGE Consolidated. . . . . 4.0 3.8 3.7 3.8 4.1 4.3 4.4 Combined, including share of partnerships 2.5 2.3 2.4 2.4 2.5 2.7 2.7 FIXED CHARGE COVERAGE (i) Consolidated. . . . . 3.0 2.8 2.9 2.9 3.1 3.2 3.2 Combined, including share of partnerships 2.1 1.9 2.0 2.0 2.1 2.2 2.2 FINANCIAL RATIOS - ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated. . . . . 42.5% 44.5% 47.2% 44.9% 42.0% 40.2% 38.4% Combined, including share of uncon- solidated affiliates 50.9% 53.9% 56.6% 55.3% 52.7% 49.2% 47.7% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated. . . . . 48.2% 42.7% 42.5% 40.5% 38.9% 41.9% 39.6% Combined, including share of partnerships 50.0% 50.0% 50.1% 48.8% 47.8% 49.4% 47.2% Third Quarter 2003 Page 10 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Quarter Ended 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 each quarter is as follows:
2003 2002 -------------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Community revenue. . . . $ 30,293 27,481 27,083 26,051 26,498 26,680 26,522 Income from partnerships . 1,309 1,469 1,457 1,751 1,569 2,255 2,029 Other income. . 1,400 700 652 1,605 1,416 1,319 721 Loss from the Service Companies. . . 729 (249) (42) -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- Consolidated total revenue (see detail on page 15). . $ 33,731 29,401 29,150 29,407 29,483 30,254 29,272 ======== ======== ======== ======== ======== ======== ======== ======== (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)Starting 2003, includes an adjustment to add back the Service Companies' taxes and depreciation (see page 46). 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. Third Quarter 2003 Page 11 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED Quarter Ended Unaudited (Dollars in thousands, except for share data) (f)Represents Minority Interest on the Company's Consolidated Balance Sheets. (g)Includes 43,400 and 47,900 restricted shares as of June 30, 2003 and September 30, 2003, respectively. (h)Excludes amortization of deferred and other financing costs. (i)Includes interest expense and preferred dividends and excludes principal amortization. (j)Non-cash impairment loss of $1,191 recorded as a change against net income in the three months ended June 30, 2003 had previously not been recorded as a change against EBITDA, FFO and AFFO. As a result of recent guidance from the Securities and exchange Commission, EBITDA, FFO and AFFO for the three months ended June 30, 2003, together with related per share amounts, have been revised downward to include this change. Third Quarter 2003 Page 12 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL FUNDS FROM OPERATIONS Quarter Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Company's share of communities' EBITDA (a). . . . . . . . . $ 24,623 23,988 24,139 24,811 24,182 25,824 26,050 Share of Service Companies' EBITDA/FFO (b) . . . 1,720 228 563 472 80 (24) (230) Other income. . . . . 193 188 196 199 242 83 254 Co-investment fee income (c) . . . . . 1,207 512 456 934 1,094 1,260 697 General and administrative . . . (1,605) (1,310) (1,740) (1,238) (1,138) (1,213) (1,540) Non-cash impairment loss (on investment community in 2003) . -- (1,191) -- (550) -- -- -- ---------------------------------------- ------------------------------ ---------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) . . . . . . 26,138 22,415 23,614 24,628 24,460 25,930 25,231 ---------------------------------------- ------------------------------ ---------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt . (6,537) (6,253) (6,492) (6,784) (6,235) (6,242) (5,946) Share of partnership communities. . . . . (3,926) (3,896) (3,800) (3,985) (3,919) (3,583) (3,457) ---------------------------------------- ------------------------------ ---------- (10,463) (10,149) (10,292) (10,769) (10,154) (9,825) (9,403) ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 13 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL FUNDS FROM OPERATIONS - CONTINUED Quarter Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- SERVICE COMPANIES TAXES AND DEPRECIATION AND AMORTIZATION Taxes . . . . . . . (213) 303 155 -- -- -- -- Depreciation and amortization . . . (778) (780) (760) -- -- -- -- ---------------------------------------- ------------------------------ ---------- (991) (477) (605) -- -- -- -- ---------------------------------------- ------------------------------ ---------- FUNDS FROM OPERATIONS (FF0). . . . . . . . 14,684 11,789 12,717 13,859 14,306 16,105 15,828 ---------------------------------------- ------------------------------ ---------- CAPITAL EXPENDITURES PAID FROM FFO (e) Wholly-owned communities. . . . . (1,100) (834) (1,084) (573) (1,093) (1,159) (1,005) Share of partnership communities. . . . . (331) (396) (225) (214) (287) (300) (222) ---------------------------------------- ------------------------------ ---------- (1,431) (1,230) (1,309) (787) (1,380) (1,459) (1,227) ---------------------------------------- ------------------------------ ---------- ADJUSTED FUNDS FROM OPERATIONS (AFFO). . $ 13,253 10,559 11,408 13,072 12,926 14,646 14,601 ======================================== ============================== ========== Notes: (a)Includes discontinued operations. See page 42 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 45. (d)Includes amortization of deferred and other financing costs. (e)For details, refer to the Company's Management Discussion and Analysis in the relevant Form 10-K or Form 10-Q filed with the SEC. Third Quarter 2003 Page 14 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS Three Months Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- RENTAL OPERATIONS Revenue: Rental . . . . . . . $ 27,981 25,441 25,397 24,567 24,731 25,018 24,974 Other. . . . . . . . 2,312 2,040 1,686 1,484 1,767 1,662 1,548 ---------------------------------------- ------------------------------ ---------- 30,293 27,481 27,083 26,051 26,498 26,680 26,522 ---------------------------------------- ------------------------------ ---------- Expenses: Rental . . . . . . . 13,837 11,974 11,321 10,476 11,672 10,913 10,085 Interest and amorti- zation of deferred financing costs . . 6,537 6,253 6,492 6,784 6,235 6,242 5,946 Depreciation . . . . 7,012 5,546 5,518 5,206 5,167 5,110 5,040 ---------------------------------------- ------------------------------ ---------- 27,386 23,773 23,331 22,466 23,074 22,265 21,071 ---------------------------------------- ------------------------------ ---------- 2,907 3,708 3,752 3,585 3,424 4,415 5,451 Income from partnerships (b) . . 1,309 1,469 1,457 1,751 1,569 2,255 2,029 ---------------------------------------- ------------------------------ ---------- Income from rental operations . . . . . 4,216 5,177 5,209 5,336 4,993 6,670 7,480 ---------------------------------------- ------------------------------ ---------- OTHER INCOME Interest and share of loss from the Service Companies . -- -- -- 472 80 (24) (230) Fee income from unconsolidated partnerships. . . . 1,207 512 456 934 1,094 1,260 587 Other income . . . . 193 188 196 199 242 83 364 ---------------------------------------- ------------------------------ ---------- 1,400 700 652 1,605 1,416 1,319 721 ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 15 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- SERVICE COMPANIES' OPERATIONS Total revenue. . . . 19,144 14,041 22,153 -- -- -- -- Total expenses . . . 18,415 14,290 22,195 -- -- -- -- ---------------------------------------- ------------------------------ ---------- Loss from Service Companies' operations. . . . 729 (249) (42) -- -- -- -- ---------------------------------------- ------------------------------ ---------- GENERAL AND ADMINISTRATIVE . . . 1,605 1,310 1,740 1,238 1,138 1,213 1,540 Provision for loss on land held for development or sale. -- -- -- 550 -- -- -- ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES. 4,740 4,318 4,079 5,153 5,271 6,776 6,661 Gain on sale of residential property including share of gains on sales of a partnership's properties . . . . . 1,959 -- -- -- 678 605 -- Impairment of invest- ment in partnership. -- (1,191) -- -- -- -- -- ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST. . 6,699 3,127 4,079 5,153 5,949 7,381 6,661 Minority interest . 764 199 371 560 674 913 779 ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS . . . . . 5,935 2,928 3,708 4,593 5,275 6,468 5,882 ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 16 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Income from discon- tinued operations, net of minority interest (c) . . . . -- -- -- 322 550 823 778 Gain on sale of discon- tinued operations, net of minority interest . . . . . . -- -- -- 3,837 11,827 -- -- ---------------------------------------- ------------------------------ ---------- -- -- -- 4,159 12,377 823 778 ---------------------------------------- ------------------------------ ---------- NET INCOME. . . . . . 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Net income attributable to preferred shares. 1,981 1,980 1,981 1,981 1,980 1,946 2,082 ---------------------------------------- ------------------------------ ---------- NET INCOME ATTRIBUTABLE TO COMMON SHARES . . $ 3,954 948 1,727 6,771 15,672 5,345 4,578 ======================================== ============================== ========== 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)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. (c)No interest expense is associated with discontinued operations. Third Quarter 2003 Page 17 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS Three Months Ended Unaudited (Dollars in thousands, except for share data)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- RENTAL OPERATIONS Revenue: Rental . . . . . . . $ 40,170 37,924 37,493 36,999 37,379 37,260 36,896 Other. . . . . . . . 3,323 3,081 2,579 2,338 2,722 2,497 2,356 ---------------------------------------- ------------------------------ ---------- 43,493 41,005 40,072 39,337 40,101 39,757 39,252 ---------------------------------------- ------------------------------ ---------- Expenses: Rental . . . . . . . 19,355 17,606 16,540 15,510 17,347 16,160 15,062 Interest and amorti- zation of deferred financing costs . . 10,463 10,148 10,292 10,769 10,154 9,824 9,404 Depreciation . . . . 9,944 8,662 8,638 8,315 8,233 8,078 7,908 ---------------------------------------- ------------------------------ ---------- 39,762 36,416 35,470 34,594 35,734 34,062 32,374 ---------------------------------------- ------------------------------ ---------- 3,731 4,589 4,602 4,743 4,367 5,695 6,878 Income from partnerships . . . . -- -- -- -- -- -- -- ---------------------------------------- ------------------------------ ---------- Income from rental operations . . . . . 3,731 4,589 4,602 4,743 4,367 5,695 6,878 ---------------------------------------- ------------------------------ ---------- OTHER INCOME Interest and share of loss from the Service Companies . -- -- -- 472 80 (24) (230) Fee income from unconsolidated partnerships. . . . 1,207 512 456 934 1,094 1,260 587 Other income (b) . . 678 776 803 792 868 1,058 966 ---------------------------------------- ------------------------------ ---------- 1,885 1,288 1,259 2,198 2,042 2,294 1,323 ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 18 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- SERVICE COMPANIES' OPERATIONS Total revenue. . . . 19,144 14,041 22,153 -- -- -- -- Total expenses . . . 18,415 14,290 22,195 -- -- -- -- ---------------------------------------- ------------------------------ ---------- 729 (249) (42) -- -- -- -- ---------------------------------------- ------------------------------ ---------- GENERAL AND ADMINISTRATIVE . . . 1,605 1,310 1,740 1,238 1,138 1,213 1,540 Provision for loss on land held for development or sale. -- -- -- 550 -- -- -- ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES. 4,740 4,318 4,079 5,153 5,271 6,776 6,661 Gain on sale of residential property including share of gains on sales of a partnership's properties . . . . . 1,959 -- -- -- 678 605 -- Impairment of investment in partnership. . . . . -- (1,191) -- -- -- -- -- ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST. . 6,699 3,127 4,079 5,153 5,949 7,381 6,661 Minority interest . 764 199 371 560 674 913 779 ---------------------------------------- ------------------------------ ---------- INCOME FROM CONTINUING OPERATIONS . . . . . 5,935 2,928 3,708 4,593 5,275 6,468 5,882 ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 19 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS - CONTINUED Three Months Ended Unaudited (Dollars in thousands, except for share data) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Income from discontinued operations, net of minority interest (c). . . . . . . . . -- -- -- 322 550 823 778 Gain on sale of discontinued operations, net of minority interest . . . . . . -- -- -- 3,837 11,827 -- -- ---------------------------------------- ------------------------------ ---------- -- -- -- 4,159 12,377 823 778 ---------------------------------------- ------------------------------ ---------- NET INCOME. . . . . . 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Net income attributable to preferred shares. 1,981 1,980 1,981 1,981 1,980 1,946 2,082 ---------------------------------------- ------------------------------ ---------- NET INCOME ATTRIBUTABLE TO COMMON SHARES . . $ 3,954 948 1,727 6,771 15,672 5,345 4,578 ======================================== ============================== ========== Notes: (a)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. (b)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. (c)No interest expense is associated with discontinued operations. Third Quarter 2003 Page 20 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS (Unaudited, dollars in thousands)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- ASSETS Rental apartments Land . . . . . . . . $ 125,222 105,098 100,966 97,700 98,641 99,013 99,784 Depreciable property 810,666 677,232 653,002 631,480 636,350 636,686 646,122 ---------------------------------------- ------------------------------ ---------- 935,888 782,330 753,968 729,180 734,991 735,699 745,906 Less: Accumulated depreciation . . . . (138,343) (131,332) (125,786) (120,268) (116,039) (110,733) (112,501) ---------------------------------------- ------------------------------ ---------- 797,545 650,998 628,182 608,912 618,952 624,966 633,405 Rental apartments held for sale, net of accumulated depreciation . . . . -- -- -- -- -- 20,401 -- Rental apartments under development. . -- -- 26,692 24,943 34,532 25,477 13,254 Land held for development or sale. 12,644 12,604 14,248 14,158 24,036 24,372 43,160 Investments in partnerships (b) . . 169,363 193,244 193,356 197,517 192,734 221,487 187,327 Cash and cash equivalents . . 6,090 5,357 5,927 6,038 3,639 4,129 2,417 Service Companies' assets . . . . . . . 66,930 61,978 55,013 49,158 -- -- -- Notes and Advances to the Service Companies -- -- -- -- 26,719 26,379 19,048 Other assets and deferred expenses, net (c). . . . . . . 16,615 29,366 27,275 20,128 19,237 17,589 16,733 ---------------------------------------- ------------------------------ ---------- TOTAL ASSETS. . . $ 1,069,187 953,547 950,693 920,854 919,849 964,800 915,344 ======================================== ============================== ========== Third Quarter 2003 Page 21 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- LIABILITIES Debt. . . . . . . . . $ 522,672 462,781 457,950 421,554 403,193 450,268 405,126 Distributions in excess of investments in and earnings from partnerships . . . . 6,175 5,969 5,822 4,806 4,685 4,514 -- Accrued expenses and other liabilities. . 38,069 35,497 32,168 33,391 28,464 25,831 20,934 ---------------------------------------- ------------------------------ ---------- TOTAL LIABILITIES. 566,916 504,247 495,940 459,751 436,342 480,613 426,060 ---------------------------------------- ------------------------------ ---------- Mandatorily redeemable convertible preferred shares . . . . . . . 93,247 93,247 93,247 93,247 93,247 93,247 93,287 Minority interest . . 61,718 61,579 63,198 65,728 67,428 66,433 67,339 Total shareholders' equity . . . . . . . 347,306 294,474 298,308 302,128 322,832 324,507 327,658 ---------------------------------------- ------------------------------ ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . $ 1,069,187 953,547 950,693 920,854 919,849 964,800 914,344 ======================================== ============================== ========== 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)See details in the Company's Form 10-K or Form 10-Q filed with the SEC. Third Quarter 2003 Page 22 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) (c)Includes the following:
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Deferred financing costs, net . . $ 5,887 4,982 3,877 3,962 3,568 3,724 4,025 Deferred develop- ment costs . . 4,053 3,738 4,780 4,557 4,380 4,203 1,982 Operating receivables and prepaid expenses . . . 1,989 2,340 3,007 3,311 1,856 2,074 3,045 Deposits and restricted cash 2,420 2,179 2,166 3,016 2,830 2,212 2,892 Notes receivable 1,874 10,960 11,168 2,179 2,132 2,086 2,988 Advances to affiliates . . (287) 4,655 1,524 2,381 3,493 2,524 1,178 Other . . . . . 679 512 753 722 978 766 623 ---------------------------------------- ------------------------------ ---------- $ 16,615 29,366 27,275 20,128 19,237 17,589 16,733 ======================================== ============================== ========== Third Quarter 2003 Page 23 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS (Unaudited, dollars in thousands)
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- ASSETS Rental apartments Land . . . . . . . . $ 178,058 162,671 156,655 153,873 154,160 155,011 150,081 Depreciable property 1,141,120 1,039,799 1,002,147 984,053 985,362 997,119 966,158 ---------------------------------------- ------------------------------ ---------- 1,319,178 1,202,470 1,158,802 1,137,926 1,139,522 1,152,130 1,116,239 Less: Accumulated depreciation . . . . (178,820) (174,068) (165,407) (158,973) (151,636) (143,763) (143,282) ---------------------------------------- ------------------------------ ---------- 1,140,358 1,028,402 993,395 978,953 987,886 1,008,367 972,957 Rental apartments held for sale, net of accumulated depreciation . . . . -- -- -- -- -- 20,401 -- Rental apartments under development. . 35,421 32,071 69,209 69,225 73,797 59,142 48,735 Land held for development or sale. 12,644 12,604 14,248 14,158 24,036 24,372 43,160 Investments in partnerships (b) . . -- -- -- -- -- -- -- Cash and cash equivalents . . 9,699 8,898 10,058 13,042 11,593 11,394 8,546 Service Companies' assets . . . . . . . 66,930 61,978 55,013 49,158 -- -- -- Notes and Advances to the Service Companies -- -- -- -- 26,718 26,379 18,914 Other assets and deferred expenses, net (c). . . . . . . 20,484 29,401 28,047 24,242 22,214 20,904 20,419 ---------------------------------------- ------------------------------ ---------- TOTAL ASSETS. . . $ 1,285,536 1,173,354 1,169,970 1,148,778 1,146,244 1,170,959 1,112,731 ======================================== ============================== ========== Third Quarter 2003 Page 24 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- LIABILITIES Debt. . . . . . . . . $ 731,110 674,373 669,648 637,726 620,184 648,965 592,300 Accrued expenses and other liabilities. . 52,155 49,681 45,569 49,949 42,553 37,807 32,147 ---------------------------------------- ------------------------------ ---------- TOTAL LIABILITIES. 783,265 724,054 715,217 687,675 662,737 686,772 624,447 ---------------------------------------- ------------------------------ ---------- Mandatorily redeemable convertible preferred shares . . . . . . . 93,247 93,247 93,247 93,247 93,247 93,247 93,287 Minority interest . . 61,718 61,579 63,198 65,728 67,428 66,433 67,339 Total shareholders' equity . . . . . . . 347,306 294,474 298,308 302,128 322,832 324,507 327,658 ---------------------------------------- ------------------------------ ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . $ 1,285,536 1,173,354 1,169,970 1,148,778 1,146,244 1,170,959 1,112,731 ======================================== ============================== ========== Notes: (a)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. (b)See details in the Company's Form 10-K or Form 10-Q filed with the SEC. Third Quarter 2003 Page 25 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) (c)Includes the following:
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Deferred financing costs, net . . $ 7,358 6,510 5,465 5,600 5,180 5,847 5,586 Deferred develop- ment costs . . 4,053 3,738 4,780 4,557 4,380 4,203 1,982 Operating receivables and prepaid expenses . . . 2,206 2,716 3,492 4,077 1,996 2,877 3,549 Deposits and restricted cash 4,139 3,423 3,221 4,655 4,245 3,309 4,203 Notes receivable 1,874 8,277 8,485 2,179 2,132 2,086 2,988 Advances to affiliates . . (144) 3,956 1,565 2,202 3,000 1,670 1,178 Other . . . . . 998 781 1,039 972 1,281 912 933 ---------------------------------------- ------------------------------ ---------- $ 20,484 29,401 28,047 24,242 22,214 20,904 20,419 ======================================== ============================== ========== Third Quarter 2003 Page 26 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY September 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 . . . . . $300,322 57.5% 7.1% 5.9 300,322 -- 300,322 -- Construction financing . . . . . -- 0% 0% 0.0 -- -- -- -- Tax-exempt debt . . . 50,250 9.6% 2.4% 1.1 50,250 -- -- 50,250 Credit facilities (f) 164,000 31.4% 4.1% 2.6 -- 164,000 85,000 79,000 Other (g) . . . . . . 8,100 1.5% 2.0% 0.0 -- 8,100 -- 8,100 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $522,672 100.0% 5.6% 4.3 350,572 172,100 385,322 137,350 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 67.1% 32.9% 73.7% 26.3% ======= ======= ======= ======= 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 . . . . . $499,912 68.4% 7.1% 6.0 499,912 -- 499,912 -- Construction financing . . . . . 11,822 1.6% 3.1% 1.5 11,822 -- 10,000 1,822 Tax-exempt debt . . . 50,250 6.9% 2.4% 1.1 50,250 -- 85,000 50,250 Credit facilities (f) 164,000 22.4% 4.1% 2.6 -- 164,000 -- 79,000 Other (g) . . . . . . 5,126 0.7% 2.0% 0.0 -- 5,126 -- 5,126 -------- ------- ------- ------- ------- ------- ------- ------- Total . . . . . . $731,110 100.0% 6.0% 4.8 561,984 169,126 594,912 136,198 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total. . 76.9% 23.1% 81.4% 18.6% ======= ======= ======= ======= See notes on the following page Third Quarter 2003 Page 27 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY September 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) 2,023 Convertible Preferred Series B (i) 75,000 3,125,000 3,125,000 (j) 76,516 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. Third Quarter 2003 Page 28 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED September 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 Swap Commerzbank 15,000 4.378% 4/1/04 - 4/1/09 Cap Commerzbank 15,000 4.000% 4/1/04 - 4/1/09 Swap PNC Bank, N.A. 30,000 4.510% 4/1/04 - 4/1/09 ------- $85,000 ======= 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: Third Quarter 2003 Page 29 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED September 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. $50,000 4.670% 7/10/03 -12/10/03 (f)See note (c) on page 31. (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. Third Quarter 2003 Page 30 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT MATURITIES September 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 $ 1,063 22,617 23,680 4.5% 5.5% 2004 3,857 22,547 26,404 5.1% 7.6% 2005 3,997 31,024 35,021 6.7% 8.2% 2006 3,130 199,372(c) 202,502 38.7% 4.8% 2007 2,661 32,981 35,642 6.8% 6.7% Thereafter 18,723 180,700(d) 199,423 38.2% 5.7% -------- ------- ------- ------ ----- Total $ 33,431 489,241 522,672 100.0% 5.6% ======== ======= ======= ====== ===== Percent to Total 6.4% 93.6% 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 $ 1,628 19,643 21,271 2.9% 5.5% 2004 6,162 24,987 31,149 4.3% 7.6% 2005 6,456 41,024 47,480 6.5% 7.0% 2006 5,667 232,616(c) 238,283 32.6% 5.2% 2007 4,746 65,552 70,298 9.6% 7.3% Thereafter 29,030 293,599(d) 322,629 44.1% 6.2% -------- ------- ------- ------ ----- Total $ 53,689 677,421 731,110 100.0% 6.0% ======== ======= ======= ====== ===== Percent to Total 7.3% 92.7% 100.0% ======== ======= ======= Third Quarter 2003 Page 31 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED September 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. Third Quarter 2003 Page 32 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED WEIGHTED AVERAGE PHYSICAL OCCUPANCY (b) - ---------------------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2003 2002 ment Last Last ------------------------------------------------------------------ Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 7,098 1.9% 1.1% 92.6% 91.5% 88.5% 88.5% 90.7% 91.9% 91.0% Atlanta 5,395 4.1% 3.3% 94.0% 90.7% 90.3% 90.6% 89.9% 90.4% 90.1% Austin 2,797 0.5% 2.0% 93.4% 91.4% 90.7% 92.1% 92.9% 91.4% 91.7% Houston 1,133 1.4% 3.6% 94.6% 91.0% 89.0% 91.1% 93.2% 92.2% 90.6% Indianapolis 2,428 1.4% 2.8% 94.0% 91.2% 89.4% 91.0% 92.6% 90.7% 88.9% Kansas City 2,518 1.1% 2.6% 93.3% 90.7% 89.5% 91.1% 92.2% 93.0% 89.5% Chicago 3,243 2.0% 1.8% 94.0% 92.1% 88.6% 88.4% 92.0% 92.1% 88.8% Denver 742 5.1% 3.4% 91.9% 88.5% 86.8% 89.4% 86.8% 87.1% 87.9% ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 25,354 2.1% 2.2% 93.4% 91.2% 89.3% 90.0% 91.3% 91.4% 90.1% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2003 Page 33 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED QUARTER ENDED WEIGHTED AVERAGE COLLECTED REVENUE PER OCCUPIED UNIT (c) - ---------------------------------------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2003 2002 ment Last Last ------------------------------------------------------------------ Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 7,098 -4.5% -1.4% 799 811 824 817 836 841 853 Atlanta 5,395 -4.3% -1.5% 848 862 860 864 886 897 915 Austin 2,797 -7.6% -3.1% 792 817 819 826 857 875 890 Houston 1,133 -3.6% -0.9% 1,053 1,063 1,068 1,077 1,092 1,095 1,090 Indianapolis 2,428 0.8% -0.1% 815 816 816 803 809 811 814 Kansas City 2,518 -0.9% -0.7% 838 844 835 835 845 855 871 Chicago 3,243 -4.5% -1.9% 1,079 1,100 1,112 1,111 1,130 1,146 1,154 Denver 742 -9.0% -4.5% 976 1,021 1,035 1,024 1,072 1,075 1,094 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 25,354 -4.0% -1.5% 867 880 885 883 903 912 924 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Notes: (a)Information shown is Combined, including partnership communities at 100%. (b)Represents average daily physical occupancy which excludes model units (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. Third Quarter 2003 Page 34 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED TOTAL REVENUE (b) - -----------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2003 2002 ment Last Last ------------------------------------------------------------------ Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 7,098 -2.4% 0.0% 15,769 15,775 15,513 15,409 16,163 16,451 16,483 Atlanta 5,395 0.0% 2.1% 12,920 12,654 12,587 12,686 12,914 13,128 13,357 Austin 2,797 -7.1% -0.9% 6,207 6,265 6,233 6,380 6,680 6,712 6,840 Houston 1,133 -2.1% 2.9% 3,386 3,290 3,232 3,335 3,458 3,427 3,353 Indianapolis 2,428 2.3% 2.8% 5,570 5,417 5,213 5,309 5,445 5,345 5,252 Kansas City 2,518 0.3% 2.1% 5,904 5,783 5,649 5,743 5,884 6,011 5,890 Chicago 3,243 -0.8% 0.1% 9,869 9,862 9,585 9,548 9,950 10,100 9,798 Denver 742 -3.3% -1.0% 1,995 2,014 1,995 2,031 2,063 2,079 2,142 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 25,354 -1.5% 0.9% 61,619 61,060 60,007 60,441 62,557 63,253 63,115 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== EXPENSES (b) - ------------ Percent Change - Current Quarter Compared to Apart- ---------------- 2003 2002 ment Last Last ------------------------------------------------------------------ Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 7,098 2.2% 4.9% 7,596 7,242 6,841 6,699 7,435 7,153 6,990 Atlanta 5,395 8.5% 12.2% 5,484 4,886 4,658 4,122 5,053 4,784 4,596 Austin 2,797 -13.7% -5.8% 2,713 2,879 2,873 3,154 3,146 2,996 2,830 Houston 1,133 3.4% 0.0% 1,459 1,460 1,406 1,264 1,412 1,505 1,430 Indianapolis 2,428 2.3% 6.2% 2,399 2,258 2,196 2,109 2,345 2,178 2,010 Kansas City 2,518 13.5% 10.3% 2,424 2,198 1,959 1,727 2,135 2,061 2,036 Chicago 3,243 5.0% 2.5% 4,204 4,100 3,692 3,431 4,003 3,908 3,548 Denver 742 -13.7% -1.6% 718 730 573 682 832 648 624 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 25,354 2.4% 4.8% 26,997 25,753 24,198 23,188 26,361 25,233 24,064 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2003 Page 35 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED QUARTER ENDED NET OPERATING INCOME (b) - ------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2003 2002 ment Last Last ------------------------------------------------------------------ Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 7,098 -6.4% -4.2% 8,173 8,533 8,672 8,710 8,728 9,298 9,493 Atlanta 5,395 -5.4% -4.3% 7,436 7,768 7,929 8,564 7,861 8,344 8,761 Austin 2,797 -1.1% 3.2% 3,494 3,386 3,360 3,226 3,534 3,716 4,010 Houston 1,133 -5.8% 5.3% 1,927 1,830 1,826 2,071 2,046 1,922 1,923 Indianapolis 2,428 2.3% 0.3% 3,170 3,159 3,017 3,200 3,100 3,167 3,242 Kansas City 2,518 -7.2% -2.9% 3,480 3,585 3,690 4,016 3,749 3,950 3,854 Chicago 3,243 -4.7% -1.7% 5,665 5,762 5,893 6,117 5,947 6,192 6,250 Denver 742 3.7% -0.5% 1,277 1,284 1,422 1,349 1,231 1,431 1,518 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 25,354 -4.3% -1.9% 34,622 35,307 35,809 37,253 36,196 38,020 39,051 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Notes: (a)Information shown is Combined, including partnership communities at 100%. (b)See page 42 for reconciliation of same store community revenue, expenses, net operating income and EBITDA. Third Quarter 2003 Page 36 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED OPERATING EXPENSES - ------------------
Percent Change - Current Quarter Compared to ---------------- 2003 2002 Last Last ------------------------------------------------------------------ Expense Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 - ------- ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Personnel 12.9% 3.1% 6,338 6,151 5,592 5,751 5,613 5,722 5,883 Advertising and promotion 0.4% 22.9% 1,456 1,185 1,122 1,169 1,451 1,230 1,128 Utilities 16.8% 35.8% 2,254 1,660 1,677 1,461 1,930 1,579 1,623 Building repair and maintenance 8.9% 28.8% 3,967 3,080 2,497 2,749 3,643 2,877 2,067 Landscaping and grounds maintenance 1.1% -11.8% 1,299 1,474 999 848 1,285 1,354 1,014 Real estate taxes -8.7% -5.5% 7,764 8,212 8,460 7,722 8,508 8,468 8,534 Insurance 8.0% 5.8% 1,133 1,071 1,060 751 1,049 1,045 981 Property management fees -0.5% 0.0% 2,217 2,218 2,181 2,153 2,227 2,251 2,244 Other -13.2% -19.0% 569 702 610 584 655 707 590 ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ 2.4% 4.8% 26,997 25,753 24,198 23,188 26,361 25,233 24,064 ====== ======= ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2003 Page 37 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES - CONTINUED QUARTER ENDED CAPITAL EXPENDITURES (b) - ------------------------
Percent Change - Current Quarter Compared to ---------------- 2003 2002 Last Last ------------------------------------------------------------------ Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 15.3% 7.1% 2,031 1,897 1,674 1,187 1,762 1,954 1,517 ====== ======= ====== ====== ====== ====== ====== ====== ====== ====== Per apartment home 15.3% 7.1% 0.32 0.30 0.26 0.19 0.28 0.31 0.24 ====== ======= ====== ====== ====== ====== ====== ====== ====== ====== TOTAL OPERATING COST (c) - ------------------------ Percent Change - Current Quarter Compared to ---------------- 2003 2002 Last Last ------------------------------------------------------------------ Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 3.2% 5.0% 29,028 27,650 25,872 24,375 28,123 27,187 25,581 ====== ======= ====== ====== ====== ====== ====== ====== ====== ====== Per apartment home 3.2% 5.0% 4.58 4.36 4.08 3.85 4.44 4.29 4.04 ====== ======= ====== ====== ====== ====== ====== ====== ====== ====== Notes: (a)Information shown is Combined, including share of partnership communities at 100%. (b)See details in the Company's Form 10-K or Form 10-Q filed with the SEC. (c)Total operating cost equals the sum of the operating expenses and capital expenditures. Third Quarter 2003 Page 38 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 third quarter of 2003 totaled $56.9 million, or 92.3% of total community revenue, which was $61.6 million. The difference is attributable to other community revenue, which includes ancillary services revenue and rental-related fees. ALL COMMUNITIES - --------------- For the third quarter 2003 compared to the same quarter a year ago, rental revenue declined 2.4%. The change was attributable to a 4.6% decline in collected rent per occupied unit, which was somewhat offset by a 2.2% increase in occupancy. Portfolio-wide rental revenue increased by 0.7% over the previous quarter, the second consecutive quarter in which this has occurred, after declining for the six previous quarters. Collected rent per occupied unit was down from last quarter by 1.5%; however, occupancy continues to increase and was up 2.3%. DALLAS - ------ DALLAS rental revenue declined by 3.1% compared to third quarter 2002, as collected rent per occupied unit fell by 5.0%. The decline in rents was slightly offset by an increase in occupancy of 1.9%. On a sequential basis, rental revenue decreased by 0.1% despite a 1.1% increase in occupancy over last quarter. Collected rents per occupied unit continued to trend downward albeit at a slower pace than the previous quarter, falling by 1.5% this quarter compared to a 2.2% sequential drop last quarter. Dallas/Fort Worth employers shed 25,000 jobs in the trailing 12 months ended August 2003, due to continued weakness in the transportation, information-telecommunication, and manufacturing industries. On the supply side, permit activity remains fairly strong with 12,353 new units authorized for the year ending August 2003. ATLANTA - ------- ATLANTA rental revenue declined 0.9% compared to third quarter 2002, driven by a 5.0% decline in collected rent per occupied unit and a strong 4.1% increase in occupancy. On a sequential basis, rental revenue increased by 1.8% compared to the second quarter on the strength of the occupancy gain, which was up 3.3%. The increase was limited by a decrease in collected rent per occupied unit of 1.8%. The challenge in Atlanta remains absorption of new supply, with 11,536 units permitted for the year ending August 2003, which represents a 3.2% increase to the existing apartment stock. Good news in Atlanta is that annualized permits have fallen by 20.3% versus the same period of a year ago, and job growth has turned positive. Annual job growth as of August 2003 was 42,600 compared to 21,700 lost jobs in for the same period a year ago. Third Quarter 2003 Page 39 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED CHICAGO - ------- CHICAGO rental revenue declined 2.1% compared to the same quarter a year ago, driven entirely by a 4.1% decrease in collected rent per occupied unit, as occupancy increased by 2.0% to 94.0%. Sequentially, rental revenue was down slightly 0.1% compared to the second quarter. Occupancy again improved for the second consecutive quarter, up 1.8%. While occupancy was increasing, collected rent per occupied unit continued to trend downward, dropping 2.1% in the third quarter compared to last quarter. The continued loss of employment in this market as noted above continues to depress apartment demand and put downward pressure on rental rates. On the supply side, the Chicago metro issued permits for 9,550 new multifamily units, representing 1.4% of existing apartment stock for the twelve months ended August 2003, an 8% decrease from the same period a year ago. AUSTIN - ------ AUSTIN rental revenue declined 7.2% compared to the third quarter of 2002 due to a decrease in collected rent per occupied unit of 7.6%, as occupancy increased slightly year over year by 0.5%. On a sequential basis compared to the second quarter, rental revenue fell by 1.0% despite an increase in occupancy of 2.0% as collected rent per occupied unit continued to fall, decreasing by 3.2%. Austin continues to struggle with absorption as approximately 10,000 new units have been completed in the past twelve months. Fortunately, permit activity continues to trend down as 2,291 permits were issued for the year ending August 2003, a decrease of 62% from the same period a year ago. Sustainable job growth continues in the region as 6,400 jobs were added in the previous twelve months as of August 2003. KANSAS - ------ KANSAS rental revenue declined 0.8% compared to the same period of a year ago due to a decrease of 1.9% collected rent per occupied unit. This decrease was offset by an increase in occupancy of 1.1%. Sequentially, rental revenue increased 1.4%, driven by improving occupancy that was up 2.6% compared to the second quarter, while collected rent per occupied unit fell by 1.4%. Demand fundamentals in Kansas continue to challenge property operations, as exhibited by job growth figures - for the year ending August 2003, the Kansas City metro area lost 4,400 jobs, a negative 0.5% rate, following a loss of 23,800 jobs for the same period a year ago. In addition, multifamily permits have trended up over the past year. For the twelve months ended August 2003 authorized permits totaled 2,453 units, a 28.9% increase over the same period a year ago, and representing a 2.0% increase to the existing apartment stock. Third Quarter 2003 Page 40 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED INDIANAPOLIS - ------------ INDIANAPOLIS rental revenue for the third quarter of 2003 grew by 0.6% compared to the same quarter a year ago as a result of an increase in occupancy. Occupancy increased by 1.4% to 94.0%, and collected rents per occupied unit were down slightly by 0.9%. Sequentially, rental revenue grew 2.2% from the previous period on the strength of stable rents and improving occupancy, both of which increased by 2.8% from the second quarter. Demand and supply fundamentals in Indianapolis continue to be a concern. The BLS reported a loss of 19,600 jobs, or a negative 2.2% growth rate for the twelve months ended August 2003. In addition, 2,678 multifamily permits have been authorized over the past 12 months, a 12.9% decrease from the same period a year ago, but a 2.2% increase to the existing apartment stock. HOUSTON - ------- HOUSTON rental revenue declined by 2.7% in the third quarter of 2003 compared to the third quarter of 2002. Collected rent per occupied unit fell 4.1% from the same period a year earlier, which was partially offset by an increase in occupancy of 1.4%. On a sequential basis, rental revenue increased by 2.4% over the previous quarter mainly due to a 3.6% increase in occupancy. Offsetting the increase in occupancy, however, was a 1.4% decrease in collected rent per occupied unit from the second quarter of 2003. Houston continues to be faced with challenging supply and demand fundamentals in the near term. Permit activity has increased dramatically as 14,932 permits (3.3% of existing stock) were issued for the 12 months ended August 2003, an increase of 67% over last August. On the demand side, Houston has lost 8,200 jobs for the twelve months ended August 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 8.3% over the same period last year. Occupancy, however, improved by 5.1%, which helped limit the decline in rental revenue. On a sequential basis, rental revenue declined 0.5% from the second quarter due to further deterioration of collected rents per occupied unit, which fell 4.1%. The decline in rental revenue was limited by a 3.4% improvement in occupancy during the period. The Denver/Boulder metro continues to display weak demand/supply fundamentals driven by negative job growth and delivery of significant new supply. For the 12 months ended August 2003, the metro experience a loss of 23,600 jobs, a negative 1.8% growth rate. On a positive note, for the 12 months ended August 2003, authorized permits totaled 5,461 units, a 30.9% decrease over the same period a year ago. Third Quarter 2003 Page 41 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI THREE MONTHS ENDED SEPTEMBER 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). . . . 25,361 25,936 -2.2% 35,705 36,431 -2.0% 30,555 30,982 -1.4% Acquired from/contribu- ted to partnerships. . 3,236 0 0.0% 3,740 1,357 175.6% 2,468 5,640 -56.3% New communities (c) . . 0 0 0.0% 548 500 9.6% 2,318 2,099 10.5% Communities under development and lease-up . . . . . . . 615 55 1024.1% 1,489 287 418.9% 3,437 823 317.7% Acquisition communities (d). . . . 1,081 508 112.8% 1,908 1,309 45.8% 2,480 2,417 2.6% Communities sold (e). . 0 1,452 0.0% 103 1,670 -93.8% 344 847 -59.4% -------- -------- -------- -------- -------- -------- -------- -------- -------- 30,293 27,951 8.4% 43,493 41,554 4.7% 41,602 42,808 -2.8% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b). . . . 11,765 11,269 4.4% 16,057 15,576 3.1% 12,601 12,616 -0.1% Acquired from/contribu- ted to partnerships. . 1,297 0 0.0% 1,554 581 167.3% 1,333 2,475 -46.1% New communities (c) . . 0 0 0.0% 205 226 -9.1% 864 950 -9.0% Communities under development and lease-up . . . . . . . 259 125 106.5% 659 307 114.5% 1,632 682 139.3% Acquisition communities (d). . . . 516 279 84.4% 813 569 42.7% 907 919 -1.3% Communities sold (e). . 0 650 -100.0% 67 739 -91.0% 222 331 -33.0% -------- -------- -------- -------- -------- -------- -------- -------- -------- 13,837 12,323 12.3% 19,355 17,998 7.5% 17,559 17,973 -2.3% ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2003 Page 42 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED THREE MONTHS ENDED SEPTEMBER 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). . . . 13,596 14,667 -7.3% 19,648 20,855 -5.8% 17,954 18,366 -2.2% Acquired from/contribu- ted to partnerships. . 1,939 0 0.0% 2,186 776 181.8% 1,135 3,165 -64.2% New communities (c) . . 0 0 0.0% 343 274 25.0% 1,454 1,149 26.6% Communities under development and lease-up . . . . . . . 356 -70 -612.8% 830 -20 -4426.1% 1,806 141 1180.8% Acquisition communities (d). . . . 565 229 147.6% 1,095 740 48.1% 1,573 1,498 5.1% Communities sold (e). . 0 802 -100.0% 36 931 -96.1% 122 516 -76.4% -------- -------- -------- -------- -------- -------- -------- -------- -------- 16,456 15,628 5.3% 24,138 23,556 2.5% 24,044 24,835 -3.2% ======== ======== ======== ======== ======== ======== ======== Cash flow preference and operating promote (f). . . . . . 457 720 -------- -------- Company's share of NOI (g) . . . . . . . 24,595 24,276 Company's share of other, net. . . . . . 28 -94 -------- -------- COMPANY'S SHARE OF COMMUNITIES' EBITDA . 24,623 24,182 ======== ======== COMPANY'S PERCENTAGE OF PARTNERSHIPS' NOI: Before cash flow preferences (f). . . . 32.0% 31.9% Including cash flow preferences and other (f). . . . . . . 33.9% 34.8% ======== ======== Third Quarter 2003 Page 43 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED THREE MONTHS ENDED SEPTEMBER 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. (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 45. (g)Based on Company's ownership share of each partnership's NOI. Reflect only property operations. Excludes other items of partnership operations such as interest income on invested funds, legal, accounting, audit and other costs of partnership administration, including asset management fees paid to the Company. See page 45. (h)Company's 100% interest in wholly-owned communities plus the Company's share of partnership communities. Third Quarter 2003 Page 44 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION Quarter Ended (Dollars in thousands)
2003 2002 ---------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- FEE INCOME (a) Acquisition fees (a). $ -- -- -- -- -- 401 -- Asset management fees (b) . . . . . . . . 111 118 118 118 112 118 129 Disposition fees (c). 325 -- -- -- 403 239 -- Development fees (a). 396 394 338 816 579 502 458 Promoted interest from sales . . . . . . . 375 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- 1,207 512 456 934 1,094 1,260 587 -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF CASH FLOW (d) Promoted interest from operating cash flow 127 146 125 155 185 170 106 Cash flow preferences (e) . . . . . . . . 330 549 529 518 535 745 516 -------- -------- -------- -------- -------- -------- -------- -------- 457 695 654 673 720 915 622 -------- -------- -------- -------- -------- -------- -------- -------- TOTAL . . . . . . $ 1,664 1,207 1,110 1,607 1,814 2,175 1,209 ======== ======== ======== ======== ======== ======== ======== ======== 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 46. (b)Asset management fees are shown at 100%. The Company's share of partnerships' EBITDA is reduced by its share of this fee. (c)Disposition fees are shown at 100% as reported gains on sale have been reduced for this cost. (d)See page 42. (e)The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. Third Quarter 2003 Page 45 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS - -------------------------------------------
2003 2002 ---------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- REVENUE Property management fees (a) . . . . . . $ 2,657 2,611 2,551 2,118 2,716 2,572 2,691 General contractor revenue, net (b) . . 77 360 625 672 570 604 633 Gross profit - corporate homes (c). 276 251 227 404 522 399 346 Other income. . . . . 320 395 205 730 136 397 122 -------- -------- -------- -------- -------- -------- -------- -------- 3,330 3,617 3,608 3,924 3,944 3,972 3,792 -------- -------- -------- -------- -------- -------- -------- -------- OPERATING EXPENSES Property management . 2,606 2,663 2,351 1,408 2,318 2,446 2,508 General contractor. . 765 498 443 632 517 519 550 Corporate homes . . . 245 245 230 274 246 253 242 -------- -------- -------- -------- -------- -------- -------- -------- 3,616 3,406 3,024 2,314 3,081 3,218 3,300 -------- -------- -------- -------- -------- -------- -------- -------- Gain (loss) on land sales, net. . . . . -- -- -- 422 (165) (4) (73) Share of gain on sale of a residential community built for sale . . . . . . 1,913 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- EBITDA (d). . . . . . 1,627 211 584 2,032 698 750 419 -------- -------- -------- -------- -------- -------- -------- -------- Interest expense. . . (289) (230) (172) (535) (478) (464) (144) Depreciation and amortization . . . . (778) (780) (760) (744) (663) (754) (716) Taxes . . . . . . . . (213) 303 155 (172) 169 178 268 -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME (LOSS) . . 347 (496) (193) 581 (274) (290) (173) Third Quarter 2003 Page 46 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS - ------------------------------------------- 2003 2002 ---------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- Eliminations, interest and other (d). . . . 382 247 151 (109) 354 266 (57) -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (e). . . . $ 729 (249) (42) 472 80 (24) (230) ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a)Includes a 3% fee from wholly-owned communities. (b)General contractor revenue is shown net of construction costs. (c)Gross revenue from customers less payments to communities and cost of sales. (d)Share of Service Company's EBITDA on page 13 equals EBITDA above plus intercompany elimination excluding interest. (e)See Company's Consolidated Statements of Operations. Third Quarter 2003 Page 47 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (Dollars in thousands) COMBINED CONDENSED FINANCIAL POSITION - -------------------------------------
2003 2002 ---------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- ASSETS: Receivables (a) . . . $ 9,162 12,453 14,356 11,532 11,622 9,327 9,652 Land held for sale (b). . . . . . . . . 12,822 12,816 12,780 12,732 14,004 15,653 8,005 Rental communities under development and held for sale (c). . . . . . . . . 29,620 20,434 11,736 8,864 3,530 3,947 3,473 Building and lease- hold improvements, net (d). . . . . . . 2,327 2,352 2,406 2,486 2,546 2,489 2,542 Information techno- logy costs, net. . . 8,160 8,287 8,231 8,329 8,703 8,769 8,765 Other (e) . . . . . . 4,839 5,636 5,504 5,215 6,625 5,143 5,262 -------- -------- -------- -------- -------- -------- -------- -------- TOTAL ASSETS. . . $ 66,930 61,978 55,013 49,158 47,030 45,328 37,699 ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Primarily costs and fees due from affiliates. (b) Represents land parcels as follows: Prairie Lakes (120 acres in Indiana) . . . $ 7,681 7,616 7,642 7,591 7,641 7,604 -- Fossil Creek (34 acres in Texas) . . . . 5,141 5,200 5,138 5,141 5,170 5,145 5,132 St. Charles . . -- -- -- -- -- 1,715 1,697 Park Bridge . . -- -- -- -- 1,193 1,189 1,176 -------- -------- -------- -------- -------- -------- -------- -------- $ 12,822 12,816 12,780 12,732 14,004 15,653 8,005 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2003 Page 48 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED (Dollars in thousands)
(c) See pages 56, 58 and 60. (d) Primarily includes a corporate office building net of depreciation. (e) Represented by: 2003 2002 ---------------------------------------------------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- Cash. . . . . . $ -- -- -- -- 3,875 2,705 2,700 Investments in partnerships . 928 1,747 1,632 1,729 424 353 147 Investment in real estate. . 737 737 737 737 -- -- -- Deferred income tax. . . . . . 1,852 2,064 1,760 1,605 1,373 1,411 1,188 Unamortized goodwill . . . 668 668 668 668 668 668 668 Other . . . . . 654 420 707 476 285 6 559 -------- -------- -------- -------- -------- -------- -------- -------- $ 4,839 5,636 5,504 5,215 6,625 5,143 5,262 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2003 Page 49 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL STABILIZED COMMUNITIES September 30, 2003
Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- DALLAS/ FT. WORTH, TX - ------------- AMLI: at Bent Tree 100% Dallas, TX 1997 1996/2000 500 91.4% 849 Same Store at Bishop's Gate 100% Plano, TX 1997 1997 266 94.4% 1,035 Same Store at Breckinridge Point 45% Richardson, TX 2000 1999 440 94.3% 917 Same Store at Bryan Place 48% Dallas, TX 2002 1999 420 94.5% 947 Acquisition at Chase Oaks 100% Plano, TX 1994 1986 250 89.6% 713 Same Store at Deerfield 25% Plano, TX Developed 2000 240 95.8% 891 Same Store at Fossil Creek 25% Ft. Worth, TXDeveloped 1998 384 91.9% 845 Same Store on Frankford 45% Dallas, TX 2000 1998 582 92.4% 903 Same Store on the Green 100% Ft. Worth, TX 1994 1990/93 424 93.4% 718 Same Store at Nantucket 100% Dallas, TX 1988 1986 312 91.0% 604 Same Store of North Dallas 100% Dallas, TX 1989/90 1985/86 1,032 91.5% 700 Same Store at Oak Bend 40% Dallas, TX 1999 1997 426 91.3% 790 Same Store on the Parkway 25% Dallas, TX Developed 1999 240 89.2% 847 Same Store at Prestonwood Hills 45% Dallas, TX 1999 1997 272 91.5% 881 Same Store 7th Street Station 100% Ft. Worth, TX 2002 2000 189 91.5% 1,017 Acquisition at Shadow Ridge 100% Flower Mound, TX 2001 2000 222 94.6% 1,004 Same Store at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 94.4% 787 Same Store on Timberglen 40% Dallas, TX 1990 1985 260 94.6% 631 Same Store Upper West Side 100% Ft. Worth, TX 2002 2001 194 95.9% 955 Acquisition at Valley Ranch 100% Irving, TX 1990 1985 460 93.0% 792 Same Store at Verandah 100% Arlington, TX 1997 1986/91 538 93.5% 715 Same Store (b) ------ ------ ------ ------ 7,901 27.9% 92.7% 816 ------ ------ ------ ------ Third Quarter 2003 Page 50 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED September 30, 2003 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- ATLANTA, GA - ------------ AMLI: at Barrett Lakes 35% Kennesaw, GA Developed 1997 446 96.6% 889 Same Store at Barrett Walk 25% Kennesaw, GA Developed 2002 290 99.3% 822 New at Clairmont 100% Atlanta, GA 1988 1988 288 95.5% 812 Same Store at Kedron Village 20% Fayette County, GA Developed 2002 216 92.1% 1,054 New at Killian Creek 100% Snellville, GA Developed 1999 256 96.9% 835 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 90.9% 771 Same Store at Mill Creek 25% Gwinnett County, GA Developed 2001 400 97.0% 834 New at Northwinds 35% Alpharetta, GA Developed 1999 800 95.0% 955 Same Store at Park Bridge 25% Alpharetta, GA Developed 2000 352 95.5% 891 Same Store at Park Creek 100% Gainesville, GA Developed 1998 200 96.5% 773 Same Store at Peachtree City 20% Fayette County, GA Developed 1998 312 92.6% 887 Same Store at River Park 40% Norcross, GA Developed 1997 222 96.4% 923 Same Store at Spring Creek 100% Atlanta, GA Developed 1985/86 /87/89 1,180 92.2% 750 Same Store at Towne Creek 100% Gainesville, GA Developed 1989 150 96.7% 637 Same Store at Vinings 100% Smyrma, GA 1992/97 1985 360 92.8% 845 Same Store at West Paces 100% Atlanta, GA 1993 1992 337 96.1% 936 Same Store at Windward Park 45% Alpharetta, GA 1999 1999 328 96.3% 893 Same Store ------ ------ ------ ------ 6,301 22.3% 94.9% 853 ------ ------ ------ ------ Third Quarter 2003 Page 51 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED September 30, 2003 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- CHICAGO, IL - ----------- AMLI: at Chevy Chase 33% Buffalo Grove, IL 1996 1988 592 93.2% 1,067 Same Store at Danada Farms 10% Wheaton, IL 1997 1989/91 600 93.2% 1,090 Same Store at Fox Valley 25% Aurora, IL Developed 1998 272 94.1% 1,028 Same Store at Oakhurst North 100% Aurora, IL Developed 2000 464 96.8% 979 Same Store (b) at Osprey Lake 69% Gurnee, IL 2001 1997/99 483 89.0% 1,067 Same Store at Poplar Creek 100% Schaumburg, IL 1997 1985 196 87.2% 1,094 Same Store at St. Charles 25% St. Charles, IL Developed 2000 400 94.5% 1,147 Same Store at Windbrooke 15% Buffalo Grove, IL 1995 1987 236 97.5% 1,085 Same Store ------ ------ ------ ------ 3,243 11.5% 93.3% 1,068 ------ ------ ------ ------ AUSTIN, TX - ---------- AMLI: in Great Hills 100% Austin, TX 1991 1985 344 95.4% 662 Same Store at Lantana Ridge 100% Austin, TX 1997 1997 354 96.6% 830 Same Store at Monterey Oaks 25% Austin, TX Developed 2000 430 95.6% 877 Same Store at Scofield Ridge 45% Austin, TX 2000 2000 487 91.0% 810 Same Store at StoneHollow 100% Austin, TX 2000 1997 606 92.6% 777 Same Store at Wells Branch 25% Austin, TX Developed 1999 576 91.7% 784 Same Store ------ ------ ------ ------ 2,797 9.9% 93.4% 792 ------ ------ ------ ------ Third Quarter 2003 Page 52 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED September 30, 2003 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- KANSAS CITY, KS - --------------- AMLI: at Cambridge Square 30% Overland Park, KS Developed 2002 408 92.9% 898 New at Centennial Park 100% Overland Park, KS 1998 1997 170 91.8% 1,019 Same Store Creekside 100% Overland Park, KS Developed 2000 224 94.6% 657 Same Store (b) at Lexington Farms 100% Overland Park, KS 1998 1998 404 92.8% 816 Same Store at Regents Center 100% Overland Park, KS 1994 1991/95 /97 424 92.5% 770 Same Store at Regents Crest 100% Overland Park, KS 1997 1997/2000 476 91.4% 635 Same Store (b) at Summit Ridge 30% Lees Summit, MO Developed 2001 432 93.5% 845 Same Store at Town Center 100% Overland Park, KS 1997 1997 156 93.0% 972 Same Store at Wynnewood Farms 25% Overland Park, KS Developed 2000 232 93.1% 910 Same Store ------ ------ ------ ------ 2,926 10.3% 92.8% 811 ------ ------ ------ ------ Third Quarter 2003 Page 53 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED September 30, 2003 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- INDIANAPOLIS, IN - ---------------- AMLI: at Castle Creek 100% Indianapolis, IN Developed 2000 276 94.9% 736 Same Store (b) at Conner Farms 100% Fishers, IN 1997 1993 300 91.3% 869 Same Store at Eagle Creek 100% Indianapolis, IN 1998 1998 240 92.9% 867 Same Store at Lake Clearwater 25% Indianapolis, IN Developed 1999 216 89.8% 956 Same Store at Riverbend 100% Indianapolis, IN 1992/93 1983/85 996 96.3% 701 Same Store on Spring Mill 100% Carmel, IN 1999 1999 400 87.3% 826 Same Store (b) ------ ------ ------ ------ 2,428 8.6% 93.1% 785 ------ ------ ------ ------ HOUSTON, TX - ----------- AMLI: at Kings Harbor 25% Houston, TX Developed 2001 300 93.0% 874 New at the Medical Center 100% Houston, TX 2001 2000 334 95.2% 1,018 Same Store Midtown 45% Houston, TX 2000 1998 419 94.3% 1,102 Same Store Towne Square 45% Houston, TX 2000 1999 380 92.9% 1,029 Same Store ------ ------ ------ ------ 1,433 5.1% 93.9% 1,015 ------ ------ ------ ------ Third Quarter 2003 Page 54 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED September 30, 2003 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sep 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2003 of NOI - ---------------- --------- -------- --------- --------- ------ ------- ------------------ ---------- DENVER, CO - ---------- AMLI: at Lowry Estates 50% Denver, CO 2000 2000 414 91.1% 1,051 Same Store at Gateway Park 100% Denver, CO 2000 2000 328 93.6% 881 Same Store at Park Meadows 25% Littleton, CO 2002 2001 518 91.3% 951 Acquisition ------ ------ ------ ------ 1,260 4.4% 91.8% 956 ------ ------ ------ ------ TOTAL 28,289 100% 93.4% 864 ====== ====== ====== ====== Note: (a) Based on number of apartment homes (b) These communities are "Same Store" with respect to information provided on pages 33, 35 and 37 regarding wholly-owned and Partnership communities, but are included as "Acquired from/contributed to partnerships" on page 42. Third Quarter 2003 Page 55 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY September 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 1Q/04 1Q/04 431 97% 88% AUSTIN, TX - ---------- AMLI Downtown Austin, TX 30% 220 2Q/02 1Q/04 3Q/04 4Q/04 -- 55% N/A INDIANAPOLIS, IN - ---------------- AMLI Carmel CenterCarmel, IN 100% 322 2Q/01 2Q/02 2Q/03 2Q/04 322 100% 73% CHICAGO, IL - ----------- AMLI: at Seven Bridges Woodridge, IL 20% 520 3Q/01 3Q/02 4Q/03 4Q/04 448 94% 54% at Museum Gardens Vernon Hills, IL 25% 294 2Q/03 3Q/04 1Q/05 1Q/06 0 23% N/A ----- ----- Total 1,817 1,201 ===== ===== Third Quarter 2003 Page 56 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY September 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 1Q/04 3Q/04 -- 34% N/A AUSTIN, TX - ---------- AMLI at Walnut Creek Austin, TX 100% 460 4Q/02 3Q/03 2Q/04 3Q/05 -- 83% 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. Third Quarter 2003 Page 57 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY September 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 Capital Total to Date of 2003 2005 - ---------------- ----------- ---------- --------- -------- -------- ------- -------- ATLANTA, GA - ----------- AMLI at Milton Park $ 35,000 -- (b) 26,250 8,750 8,097 653 -- AUSTIN, TX - ---------- AMLI Downtown 50,920 30,920(c) 14,000 6,000 6,000 -- -- INDIANAPOLIS, IN - ---------------- AMLI Carmel Center 28,400 -- -- 28,400 27,519 881 -- CHICAGO, IL - ----------- AMLI: at Seven Bridges 82,200 51,000(d) 24,960 6,240 5,069 1,171 -- at Museum Gardens 61,400 37,000(e) 18,300 6,100 3,141 1,500 1,459 -------- ------- ------- ------- ------- ------ ------- TOTAL $257,920 118,920 83,510 55,490 49,826 4,205 1,459 ======== ======= ======= ======= ======= ====== ======= Third Quarter 2003 Page 58 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED September 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 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 4,262 4,738 2,400 AUSTIN, TX - ---------- AMLI at Walnut Creek 31,370 -- -- 31,370 25,358 4,500 1,512 -------- ------- ------- ------- ------- ------ ------- TOTAL $ 42,770 -- -- 42,770 29,620 9,238 3,912 ======== ======= ======= ======= ======= ====== ======= Notes: (a)Includes anticipated costs of initial lease-up, some of which will be expensed. (b)The partnership intends to place a permanent mortgage of $22,600 on the property upon completion and stabilization. The property is currently unencumbered. (c)The property is subject to a construction loan in the amount of $30,920, of which $6,074 has been funded to date. The partnership currently intends to refinance the construction loan with a permanent loan in the same amount upon completion and stabilization. (d)The property is currently subject to a construction loan in the amount of $50,000, all of which has been funded. The partnership has a commitment for a permanent loan, which is currently expected to be funded late in the fourth quarter of 2003. During the quarter, the partnership has agreed with the permanent lender to reduce the amount of the initial funding from $60,000 to $51,000. (e)The property is subject to a combination construction/permanent loan in the amount of $37,000, none of which has been funded to date. Third Quarter 2003 Page 59 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE September 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 ====== Third Quarter 2003 Page 60 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES September 30, 2003 This Quarterly Supplemental Information contains 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. Reconciliations of all non-GAAP financial measures to GAAP financial measures are included at the end of this Supplemental Operating and Financial Data. DEFINITIONS OF NON-GAAP FINANCIAL MEASURES NOI AND EBITDA - -------------- 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. 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 expenses. COMMUNITY REVENUE - ----------------- 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 - ------------------ COMMUNITY EXPENSES comprise that portion of total expenses that exclude losses from sales or valuation of land, expenses of the Service Companies, general and administration 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 estate taxes, insurance, property management, and other operating expenses, and such amounts as may be included in discontinued operations. Third Quarter 2003 Page 61 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 DEFINITIONS OF NON-GAAP FINANCIAL MEASURES - CONTINUED FUNDS FROM OPERATIONS ("FFO") - ----------------------------- FUNDS FROM OPERATIONS 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 is defined as net income (computed in accordance with GAAP), excluding extraordinary gains (losses) from debt restructuring and gains (losses) from sales of depreciable operating communities, plus depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and other affiliates. Adjustments for unconsolidated partnerships, joint ventures and other affiliates are calculated to reflect FFO on the same basis. FFO does not represent cash flows from operations, as defined by GAAP; is not indicative that cash flows are adequate to fund all cash needs; is not to be considered an alternative to net income or any other GAAP measure as a measurement of the results of the Company's operations or the Company's cash flows or liquidity as defined by GAAP. FFO is widely accepted in measuring the performance of equity REITs. 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") - --------------------------------------- ADJUSTED FUNDS FROM OPERATIONS 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 STORE COMMUNITIES - ---------------------- SAME STORE 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. Third Quarter 2003 Page 62 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND FFO AND AFFO
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- NET INCOME. . . . . . $ 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Income from discon- tinued operations, net of minority interest . . . . . . -- -- -- (322) (550) (823) (778) Gain on sale of discontinued operations, net of minority interest. . -- -- -- (3,837) (11,827) -- -- Minority interest . . 764 199 371 560 674 913 779 ---------------------------------------- ------------------------------ ---------- Income from continuing operations before minority interest. . 6,699 3,127 4,079 5,153 5,949 7,381 6,661 Income from discon- tinued operations before minority interest . . . . . . -- -- -- 391 662 990 937 Depreciation (a). . . 7,012 5,546 5,518 5,206 5,307 5,371 5,362 Share of co-investment partnerships' depreciation . . . . 2,932 3,116 3,120 3,109 3,065 2,968 2,868 Share of gains on sales of operating communities. . . . . (1,959) -- -- -- (678) (605) -- ---------------------------------------- ------------------------------ ---------- FFO . . . . . . . . . $ 14,684 11,789 12,717 13,859 14,305 16,105 15,828 ======================================== ============================== ========== Third Quarter 2003 Page 63 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Capital expenditures paid from FFO. . . . (1,100) (834) (1,084) (573) (1,093) (1,159) (1,005) Share of co-invest- ment partnerships' capital expenditures (331) (396) (225) (214) (287) (300) (222) ---------------------------------------- ------------------------------ ---------- AFFO. . . . . . . . . $ 13,253 10,559 11,408 13,072 12,925 14,646 14,601 ======================================== ============================== ========== Weighted average shares and units including dilutive shares . . . . . . . 25,946,12724,467,73624,308,052 24,619,71625,603,46226,076,541 26,007,730 (a) Includes discon- tinued operations of - . . . . . . . . -- -- -- -- 140 261 322 ======================================== ============================== ========== Third Quarter 2003 Page 64 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES September 30, 2003 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- NET INCOME. . . . . . $ 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Minority interest . . 764 199 371 560 674 913 779 Income from discon- tinued operations, net of minority interest . . . . . . -- -- -- (322) (550) (823) (778) Gain on sale of dis- continued operations, net of minority interest . . . . . . -- -- -- (3,837) (11,827) -- -- ---------------------------------------- ------------------------------ ---------- Net income from continuing operations before minority interest . . . . . . 6,699 3,127 4,079 5,153 5,949 7,381 6,661 Third Quarter 2003 Page 65 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Income from partnerships . . . . (1,309) (1,469) (1,457) (1,751) (1,569) (2,255) (2,029) Interest and amortiza- tion of deferred financing costs. . . 6,537 6,253 6,492 6,784 6,235 6,242 5,946 Depreciation. . . . . 7,012 5,546 5,518 5,206 5,167 5,110 5,040 Fee income from unconsolidated partnerships . . . . (1,207) (512) (456) (934) (1,094) (1,260) (587) Other income. . . . . (193) (188) (196) (199) (242) (83) (364) Interest and share of loss from the Service Companies. . -- -- -- (472) (80) 24 230 Service Companies' operations . . . . . (729) 249 42 -- -- -- -- General and administrative . . . 1,605 1,310 1,740 1,238 1,138 1,213 1,540 Provision for loss on land held for development or sale. -- -- -- 550 -- -- -- Gain on sale of residential property including share of gains on sales of a partnership's properties . . . . . (1,959) -- -- -- (678) (605) -- Impairment of investment in partnership. . . . . -- 1,191 -- -- -- -- -- ---------------------------------------- ------------------------------ ---------- NOI from continuing operations . . . . . 16,456 15,507 15,762 15,575 14,826 15,767 16,437 NOI from discontinued operations . . . . . -- -- -- 391 802 1,252 1,258 ---------------------------------------- ------------------------------ ---------- Consolidated NOI. . . $ 16,456 15,507 15,762 15,966 15,628 17,019 17,695 ======================================== ============================== ========== Third Quarter 2003 Page 66 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- COMPONENTS OF NOI Same store communities$ 13,596 14,170 14,567 15,035 14,667 15,636 16,445 Acquired from/contri- buted to partnerships 1,939 595 602 -- -- -- -- New communities . . . -- -- -- -- -- -- -- Development and/or lease-up communities 356 185 14 (50) (70) (55) (8) Acquisition communities. . . . . 565 557 579 590 229 186 -- Communities sold. . . -- -- -- 391 802 1,252 1,258 ---------------------------------------- ------------------------------ ---------- Total . . . . . . . . $ 16,456 15,507 15,762 15,966 15,628 17,019 17,695 ======================================== ============================== ========== Third Quarter 2003 Page 67 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES September 30, 2003 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND COMBINED NOI
2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- NET INCOME. . . . . . $ 5,935 2,928 3,708 8,752 17,652 7,291 6,660 Minority interest . . 764 199 371 560 674 913 779 Income from discon- tinued operations, net of minority interest . . . . . . -- -- -- (322) (550) (823) (778) Gain on sale of dis- continued operations, net of minority interest . . . . . . -- -- -- (3,837) (11,827) -- -- ---------------------------------------- ------------------------------ ---------- Net income from continuing operations before minority interest . . . . . . 6,699 3,127 4,079 5,153 5,949 7,381 6,661 Third Quarter 2003 Page 68 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- Interest and amortiza- tion of deferred financing costs. . . 6,537 6,253 6,492 6,784 6,235 6,242 5,946 Share of partnerships' interest and amorti- zation of deferred financing costs. . . 3,926 3,895 3,800 3,985 3,919 3,582 3,458 Depreciation. . . . . 7,012 5,546 5,518 5,206 5,167 5,110 5,040 Share of partnerships' depreciation . . . . 2,932 3,116 3,120 3,109 3,066 2,968 2,868 Share of partnerships' cash flow in excess of its ownership interests, net of other expenses . . . (485) (589) (607) (593) (626) (975) (602) Fee income from unconsolidated partnerships . . . . (1,207) (512) (456) (934) (1,094) (1,260) (587) Other income. . . . . (193) (188) (196) (199) (242) (83) (364) Interest and share of loss from the Service Companies. . -- -- -- (472) (80) 24 230 Service Companies' Operations . . . . . (729) 249 42 -- -- -- -- General and administrative . . . 1,605 1,310 1,740 1,238 1,138 1,213 1,540 Provision for loss on land held for development or sale. -- -- -- 550 -- -- -- Gain on sale of residential property including share of gains on sales of a partnership's properties . . . . . (1,959) -- -- -- (678) (605) -- Impairment of invest- ment in partnership. -- 1,191 -- -- -- -- -- ---------------------------------------- ------------------------------ ---------- Third Quarter 2003 Page 69 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED September 30, 2003 2003 2002 ------------------------------------------------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------------------------------------- ------------------------------ ---------- NOI from continuing operations . . . . . 24,138 23,399 23,532 23,827 22,754 23,597 24,190 NOI from discontinued operations . . . . . -- -- -- 391 802 1,252 1,258 ---------------------------------------- ------------------------------ ---------- Combined NOI. . . . . $ 24,138 23,399 23,532 24,218 23,556 24,849 25,448 ======================================== ============================== ========== COMPONENTS OF NOI Same store communities$ 19,648 20,237 20,645 21,382 20,855 22,081 22,977 Acquired from/contribu- ted to partnerships. 2,186 1,173 1,174 836 776 794 795 New communities . . . 343 312 311 315 274 229 165 Development and/or lease-up communities 830 521 236 102 (20) (36) -- Acquisition communities. . . . . 1,095 1,068 1,067 1,099 740 372 -- Communities sold. . . 36 88 99 484 931 1,409 1,511 ---------------------------------------- ------------------------------ ---------- Total . . . . . . . . 24,138 23,399 23,532 24,218 23,556 24,849 25,448 ---------------------------------------- ------------------------------ ---------- Share of partnerships' cash flow in excess of the Company's ownership interests, net of other expenses . . . . . . 485 589 607 593 626 975 602 ---------------------------------------- ------------------------------ ---------- Company's share of communities EBITDA . $ 24,623 23,988 24,139 24,811 24,182 25,824 26,050 ======================================== ============================== ========== Third Quarter 2003 Page 70 Supplemental Information AMLI Residential Properties Trust
-----END PRIVACY-ENHANCED MESSAGE-----