EX-99.2 3 exh_992.txt EXHIBIT 99.2 ------------ AMLI RESIDENTIAL ------------------------------------------------------------ THIRD QUARTER 2004 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI at Westcliff -- Westminster, Colorado Acquired Third Quarter 2004 ] 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, 2003. AMLI RESIDENTIAL TABLE OF CONTENTS Page ---- SUMMARY INFORMATION Description of AMLI and Investor Information . . . . . . . . . . 1 Earnings Release . . . . . . . . . . . . . . . . . . . . . . . . 2 Selected Financial and Operating Information . . . . . . . . . . 7 Funds From Operations. . . . . . . . . . . . . . . . . . . . . . 15 Statements of Operations . . . . . . . . . . . . . . . . . . . . 17 Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . 23 DEBT AND PREFERRED SHARES Debt and Preferred Shares Summary. . . . . . . . . . . . . . . . 29 Debt Maturities. . . . . . . . . . . . . . . . . . . . . . . . . 32 SAME STORE AND NOI DATA Quarterly Comparison of Same Store Communities . . . . . . . . . 34 Quarterly Comparison of Components of NOI. . . . . . . . . . . . 46 OTHER DATA Co-Investment Compensation . . . . . . . . . . . . . . . . . . . 49 Service Companies Financial Information. . . . . . . . . . . . . 50 PORTFOLIO Stabilized Communities . . . . . . . . . . . . . . . . . . . . . 54 Development Summary. . . . . . . . . . . . . . . . . . . . . . . 60 Land Held for Development or Sale. . . . . . . . . . . . . . . . 64 Acquisition and Disposition Summary. . . . . . . . . . . . . . . 65 NON-GAAP FINANCIAL MEASURES Definition of Non-GAAP Financial Measures. . . . . . . . . . . . 67 Reconciliation Between Net Income and FFO and AFFO . . . . . . . 69 Reconciliation Between Net Income and Consolidated NOI . . . . . 71 Reconciliation Between Net Income and Combined NOI . . . . . . . 74 Third Quarter 2004 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPANY DESCRIPTION INVESTOR INFORMATION AMLI Residential (or AMLI) is an integrated, self-managed real estate operating company that was formed in February 1994 to continue and expand the multifamily property business previously conducted by AMLI Realty Co., our predecessor company, which has been in business since 1980. AMLI is structured as an UPREIT, or umbrella partnership real estate investment trust, and we own interests in properties and conduct our business through AMLI Residential Properties, L.P., (the Operating Partnership or OP). The sole general partner of the OP is AMLI Residential Properties Trust, the public company whose shares of beneficial interest are traded on the NYSE under the symbol "AML." Our business is the development, acquisition and management of upscale apartment communities in the Southeast, Southwest, Midwest and Mountain regions of the United States. We also serve as an institutional advisor and asset manager for domestic and international, tax-exempt and taxable investors in connection with our joint venture co-investment business. A summary schedule of our investment communities is included in this Supplement. We operate all of our communities under the AMLI [registered trademark] brand name, representing our commitment to high quality, exceptional service and superior value. We have corporate offices in Atlanta, Dallas, Indianapolis and Kansas City, in addition to our main office in Chicago. We employ approximately 850 people who are dedicated to our mission ... To Provide an Outstanding Living Environment For Our Residents. For additional information on AMLI, please visit our website at www.amli.com. The following information is presented as a supplement to our other public reporting, including our Form 10-Q and Form 10-K, both of which can be found on our website or through the SEC's EDGAR database. We hope that the information contained herein is helpful to you. We encourage your feedback and any suggestions, which you believe will help us provide better disclosure to you. Please contact either of: Robert Chapman Executive Vice President & CFO 312.984.6845 rchapman@amli.com Sue Bersh Vice President - Corporate Communications 312.984.2607 sbersh@amli.com Thank you for your interest in AMLI Residential. AML LISTED NYSE Third Quarter 2004 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 --------------------- October 26, 2004 For More Information, Contact: Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES THIRD QUARTER OPERATING RESULTS AND DECLARES DIVIDEND ========================================================================== (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the third quarter ended September 30, 2004. EARNINGS -------- Net income for the quarter and the nine months ended September 30, 2004 was $12,234,000 and $61,257,000 respectively, as compared to $5,935,000 and $12,571,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended September 30, 2004 was $0.40, compared to $0.21 for the same period a year earlier. For the nine months ended September 30, 2004, EPS was $2.10, compared to $0.38 for the comparable period of 2003. The increases in net income for the three and nine months ended September 30, 2004 compared to the same periods a year ago are due primarily to an increased amount of gains associated with sales of real estate. Funds From Operations ("FFO") for the third quarter of 2004 were $13,576,000, or $0.44 per common share, compared to $14,684,000, or $0.57 per common share, for the third quarter of 2003, a per share decrease of 22.8%. The decrease in FFO per share for the three months ended September 30, 2004 compared to the same period a year ago is due, in part, to the fact that 2003 included a gain from the sale of a "merchant-built" community that did not occur in 2004, and, in part, because AMLI had not, through September 30, 2004, fully invested the net proceeds from its March 2004 common share offering. Actual results for the quarter were $0.01 and $0.03 per share below the bottom end of the range and the mid-point of AMLI's most recent guidance, respectively, and $0.04 lower than First Call's current estimate. The difference in actual results for the quarter compared to the Company's prior estimate is almost totally related to items independent of same community results, which were positive. "We are pleased with the performance of AMLI's same store communities," commented Gregory T. Mutz, AMLI Chairman and CEO. "The positive quarterly sequential increases in revenue and net operating income were almost exactly as we had expected. The difference in actual results compared to our prior guidance was due to the results of non-same store communities and a number of one-time or unusual items." Third Quarter 2004 Page 2 Supplemental Information AMLI Residential Properties Trust The following summarizes the major items reconciling AMLI latest third quarter FFO per share mid-point guidance to actual results: PER SHARE --------- Latest mid-point guidance. . . . . . . . . . . . . . . . . $ 0.47 Results from non-same store communities (1). . . . . . . . (0.03) Hurricane damage . . . . . . . . . . . . . . . . . . . . . (0.005) Lost NOI due to amount and timing of acquisitions and dispositions (2) . . . . . . . . . . . . . . . . . (0.01) Co-investment acquisition fees (3) . . . . . . . . . . . . (0.005) Impairment write-down on land (4). . . . . . . . . . . . . (0.01) Additional Sarbanes-Oxley costs and other miscellaneous items. . . . . . . . . . . . . . . (0.01) Adjustment to compensation liabilities (5) . . . . . . . . 0.04 ------- Actual reported results. . . . . . . . . . . . . . . . . . $ 0.44 ======= (1) Reflects (i) approximately $0.015 per share variances in real estate tax expense and (ii) approximately $0.015 due to unanticipated net operating income budget variances from the Company's lease-up, rehab communities and sold communities. (2) The actual closing dates for four acquisitions and three dispositions that the Company anticipated closing during the quarter were different than expected. The result was that the Company earned $0.015 per share less, which was partially offset by approximately $0.05 per share of interest cost savings. (3) The Company anticipated forming $50 million of co-investment partnerships in the quarter, which did not occur. (4) Reflects a pre-tax adjustment of $400k ($305k after tax) to the carrying value of two of the Company's land parcels, net of a $105k gain on sale of one other land parcel. (5) The Company and five of its senior executives agreed to terminate a deferred executive compensation plan, as it was determined that the achievement hurdles for future payouts under the plan would not be met. In addition, the Company reduced its estimates for year-end 2004 compensation. Both items had the net effect of reducing accrued liabilities and taking such amounts into income during the quarter. THIRD QUARTER ACTIVITIES ------------------------ In August, AMLI acquired AMLI at Westcliff (formerly the Retreat at Westcliff), a 372-unit luxury apartment community in Westminster, Colorado. In September, the Company acquired AMLI at River Run (formerly The Preserve at River Run), a 206-unit apartment community in Naperville, Illinois and AMLI at Canterfield (formerly The Tradition at Canterfield), a 352-unit community in West Dundee, Illinois. Also during the quarter, AMLI sold three communities: AMLI at Nantucket, a 312-unit community in Dallas; AMLI on Timberglen, a 260-unit community in Dallas; and AMLI at Towne Creek, a 150-unit community in Gainesville, Georgia. The 930 units acquired during the quarter were purchased at an average price per unit of $140,200 and the 722 units sold during the quarter were sold at an average price per unit of $46,500. For the nine months ended September 30, 2004, AMLI has sold 3,016 units at an average price per unit of $60,040 and purchased 2,414 units at an average price per unit of $96,400. Third Quarter 2004 Page 3 Supplemental Information AMLI Residential Properties Trust In July, AMLI closed a $45 million loan secured by a first mortgage on the previously unencumbered AMLI at Riverbend community. The 4.85% interest rate is fixed for the first nine years of this ten-year loan. 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, 2004 versus the prior year's comparable quarter, total community revenue decreased 0.4% (reflecting an increase in weighted average occupancy to 94.0% from 93.7% and a decrease in weighted average collected revenue per occupied unit of 0.7%), operating expenses increased 0.6%, and net operating income ("NOI") decreased 1.2%. Comparing the third quarter of 2004 to the preceding quarter, total community revenue increased by 1.9% (reflecting an increase in weighted average occupancy of 1.3% and an increase in weighted average collected revenue per occupied unit of 0.5%), operating expenses increased 1.0%, and NOI increased 2.6%. SUBSEQUENT EVENTS ----------------- Earlier this month, AMLI's Board of Trustees elected Bruce P. Bickner to join the Company's Board as an independent trustee and Chair of the Audit Committee. In addition, the Board agreed to include in its 2005 Proxy Statement a proposal for shareholder consideration to amend the Company's Declaration of Trust to eliminate the staggered board, effective with the election in 2006. Last week, AMLI completed the purchase of AMLI at Kirkland Crossing (formerly the Preserve at Kirkland Crossing), a 266-unit apartment community in Aurora, Illinois. OUTLOOK ------- AMLI's current expectation for FFO per share for the fourth quarter of 2004 is $0.47 (plus or minus $0.01 per share), or $0.05 per share less than AMLI's prior mid-point guidance. The factors contributing to the revised guidance are (i) approximately $0.025 per share estimate for additional costs related to Sarbanes-Oxley, (ii) approximately $0.015 per share of NOI and co-investment acquisition fees that the Company will not earn in the quarter because it did not form the co-investments in either the third or fourth quarters that it had anticipated it would, and (iii) $0.01 per share less NOI earned because the amount of actual acquisitions and their closing dates were different than previously expected. As such, AMLI now anticipates that full year 2004 FFO will be in the range of $2.01 to $2.03 per share. The following chart reconciles AMLI's current FFO per share guidance to EPS: Q4 Full Q1 Q2 Q3 (est) Year ------ ------ ------ ------ ------ EPS . . . . . . . 0.21 1.44 0.40 0.41 2.53 Gains on sales. . (0.11) (1.50) (0.44) (0.40) (2.53) Depreciation. . . 0.40 0.39 0.41 0.40 1.61 Other . . . . . . 0.06 0.22 0.07 0.06 0.41 FFO per share . . 0.56 0.55 0.44 0.47 2.02 Third Quarter 2004 Page 4 Supplemental Information AMLI Residential Properties Trust DIVIDEND -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on November 16, 2004 to all common shareholders of record as of November 5, 2004 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 27, 2004 at 3:30 p.m. Eastern Time. The toll-free number for the call is 888-780-9654 - Passcode: AMLI, and should be accessed approximately 5 minutes prior to conference time. 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. Additionally, an on-line replay of the webcast will be available for 60 days following the call. SUPPLEMENTAL INFORMATION ------------------------ AMLI produces Quarterly Supplemental Information that provides detailed information regarding 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. AMLI uses this information internally to measure its performance and/or liquidity and to compare its performance to other REITs in its peer group, and believes that this information may be of interest and use to the investment community for the same reason. 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 18, 19 and 20. EBITDA is NOI (including AMLI's proportionate share of the NOI of its co- investment partnerships) plus all fees and interest income and income from the Service Companies and gains or losses from sales or valuation of land and other income, less general and administration expense. FUNDS FROM OPERATIONS ("FFO") is EBITDA less interest expense (including AMLI's proportionate share of the interest expense of its co-investment partnerships and amortization of deferred financing expense) and any income taxes. FFO computed in this manner is equal to FFO as defined in NAREIT's white paper, which definition is "net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures." Third Quarter 2004 Page 5 Supplemental Information AMLI Residential Properties Trust Additional definitions can be found in the Quarterly Supplemental Information. ABOUT AMLI ---------- The AMLI portfolio currently includes 74 apartment communities containing 27,594 apartment homes, with an additional 1,854 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, 2003. # # # # Third Quarter 2004 Page 6 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data)
2004 2003 -------------------------------------------- -------------------------------------------- Jun 30 Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 (i) Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EARNINGS AND CASH FLOWS ----------------------- EBITDA (a) . . . . . .$ 81,941 25,472 29,415 27,054 98,513 26,347 26,139 22,413 23,614 FFO. . . . . . . . . . 46,351 13,576 17,097 15,678 54,215 15,025 14,684 11,789 12,717 AFFO . . . . . . . . . 42,109 11,853 15,670 14,586 49,173 13,953 13,253 10,559 11,408 Net income . . . . . . 61,257 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Dividends (b). . . . . 42,838 14,880 14,846 13,112 48,288 13,010 11,787 11,758 11,733 PER SHARE DATA - DILUTED ---------------- FFO. . . . . . . . . .$ 1.55 $ 0.44 $ 0.55 $ 0.56 $ 2.12 $ 0.55 $ 0.57 $ 0.48 $ 0.52 AFFO . . . . . . . . . 1.41 0.38 0.51 0.52 1.92 0.51 0.51 0.43 0.47 Net income allocable to common shares . . 2.10 0.40 1.44 0.21 0.98 0.54 0.21 0.06 0.10 Common dividends . . . 1.44 0.48 0.48 0.48 1.92 0.48 0.48 0.48 0.48 FFO payout ratio (based on per share amounts) . . . . . . 93% 110% 87% 85% 91% 87% 84% 100% 92% AFFO payout ratio (based on per share amounts) . . . . . . 102% 126% 95% 92% 100% 94% 94% 111% 102% Third Quarter 2004 Page 7 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Jun 30 Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 (i) Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NUMBER OF APARTMENT HOMES --------------- STABILIZED COMMUNITIES ---------------------- Wholly-owned . . . . . 15,276 15,276 15,068 15,240 14,980 14,980 14,100 12,260 12,260 Partnerships . . . . . 12,052 12,052 12,052 12,052 12,427 12,427 14,189 16,271 15,573 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 27,328 27,328 27,120 27,292 27,407 27,407 28,289 28,531 27,833 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES UNDER DEVELOPMENT AND/OR LEASE-UP ----------------- Wholly-owned . . . . . 820 820 820 782 322 322 322 322 322 Partnerships . . . . . 1,034 1,034 1,034 1,034 1,495 1,495 1,495 1,495 1,919 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,854 1,854 1,854 1,816 1,817 1,817 1,817 1,817 2,241 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . . 29,182 29,182 28,974 29,108 29,224 29,224 30,106 30,348 30,074 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== See notes on following pages Third Quarter 2004 Page 8 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data)
2004 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- CAPITALIZATION -------------- TOTAL ASSETS BEFORE DEPRECIATION Consolidated (c) . . . . . . . . . . . . . . $ 1,393,026 1,285,143 1,284,825 Combined, including share of partnerships (d). . . . . . . . . . . . . . 1,659,886 1,548,120 1,537,620 DEBT Consolidated . . . . . . . . . . . . . . . . 576,477 476,449 496,583 Combined, including share of partnerships. . . . . . . . . . . . . . . . 795,436 694,308 706,534 SHARE INFORMATION Common shares outstanding. . . . . . . . . . 25,405,377 25,341,652 25,289,725 Preferred shares outstanding (e) . . . . . . 3,925,000 3,925,000 3,925,000 Operating partnership units outstanding (f) . . . . . . . . . . . . . . 1,684,336 1,707,118 1,715,394 ----------- ----------- ----------- ----------- ----------- Total shares and units outstanding . . . 31,014,713 30,973,770 30,930,119 ----------- ----------- ----------- ----------- ----------- Average Common Shares. . . . . . . . . . . . 25,386,897 25,306,317 22,077,441 Average Common and Preferred Shares and OP Units. . . . . . . . . . . . . . . . 30,998,529 30,941,004 27,783,836 ----------- ----------- ----------- ----------- ----------- Share price, end of period . . . . . . . . . $ 31.55 29.34 28.25 Equity Market Capitalization . . . . . . . . 978,514 908,770 873,776 TOTAL MARKET CAPITALIZATION Consolidated . . . . . . . . . . . . . . . . 1,554,991 1,385,219 1,370,359 Combined, including share of partnerships. . . . . . . . . . . . . . . . 1,773,950 1,603,078 1,580,310 Third Quarter 2004 Page 9 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2003 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- CAPITALIZATION -------------- TOTAL ASSETS BEFORE DEPRECIATION Consolidated (c) . . . . . . . . . . . . . . 1,304,155 1,304,155 1,207,530 1,084,879 1,076,479 Combined, including share of partnerships (d). . . . . . . . . . . . . . 1,560,451 1,560,451 1,464,356 1,347,423 1,335,377 DEBT Consolidated . . . . . . . . . . . . . . . . 610,513 610,513 522,672 462,781 457,950 Combined, including share of partnerships. . . . . . . . . . . . . . . . 820,090 820,090 731,110 674,373 669,648 SHARE INFORMATION Common shares outstanding. . . . . . . . . . 21,394,568 21,394,568 19,503,207 16,928,640 16,787,100 Preferred shares outstanding (e) . . . . . . 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 Operating partnership units outstanding (f) . . . . . . . . . . . . . . 1,743,396 1,743,396 3,473,482 3,545,993 3,547,685 ----------- ----------- ----------- ----------- ----------- Total shares and units outstanding . . . 27,162,964 27,162,964 27,001,689 24,499,633 24,359,785 ----------- ----------- ----------- ----------- ----------- Average Common Shares. . . . . . . . . . . . 18,153,083 20,715,155 18,261,577 16,861,537 16,729,067 Average Common and Preferred Shares and OP Units. . . . . . . . . . . . . . . . 25,424,805 27,069,010 25,813,844 24,433,348 24,348,851 ----------- ----------- ----------- ----------- ----------- Share price, end of period . . . . . . . . . $ 26.80 26.80 26.20 23.55 21.05 Equity Market Capitalization . . . . . . . . 727,967 727,967 707,444 576,966 512,773 TOTAL MARKET CAPITALIZATION Consolidated . . . . . . . . . . . . . . . . 1,338,480 1,338,480 1,230,116 1,039,747 970,723 Combined, including share of partnerships. . . . . . . . . . . . . . . . 1,548,057 1,548,057 1,438,554 1,251,339 1,182,421 Third Quarter 2004 Page 10 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (g) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . $ 23,832 7,701 8,874 7,257 Combined, including share of partnerships. . . . . . . . . . . . . . . . 35,264 11,560 12,671 11,033 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . . 1,021 260 296 465 Combined, including share of partnerships . . . . . . . . . . . . . . . 1,240 361 370 509 SCHEDULED PRINCIPAL PAYMENTS (NORMAL AMORTIZATION) Consolidated . . . . . . . . . . . . . . . . 3,950 1,472 1,271 1,207 Combined, including share of partnerships . . . . . . . . . . . . . . . 5,577 2,020 1,809 1,748 Third Quarter 2004 Page 11 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2003 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (g) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . $ 26,224 6,941 6,537 6,254 6,492 Combined, including share of partnerships. . . . . . . . . . . . . . . . 41,810 10,907 10,463 10,148 10,292 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . . 2,054 521 498 643 392 Combined, including share of partnerships . . . . . . . . . . . . . . . 2,264 546 540 734 444 SCHEDULED PRINCIPAL PAYMENTS (NORMAL AMORTIZATION) Consolidated . . . . . . . . . . . . . . . . 3,967 1,004 1,043 968 952 Combined, including share of partnerships . . . . . . . . . . . . . . . 6,187 1,564 1,583 1,512 1,528 See notes on following pages Third Quarter 2004 Page 12 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SELECTED FINANCIAL AND OPERATING INFORMATION QUARTER ENDED Unaudited (Dollars in thousands, except for share data)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 (i) Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONAL RATIOS ------------------ EBITDA, AS PERCENT OF TOTAL MARKET CAPITALIZATION Consolidated . . . . . . 6.6% 8.5% 7.9% 7.9% 8.5% 8.6% 9.7% Combined, including share of unconsoli- dated affiliates debt . 5.7% 7.3% 6.8% 6.8% 7.3% 7.2% 8.0% INTEREST COVERAGE Consolidated . . . . . . 3.4 4.0 3.9 4.0 4.2 3.8 3.8 Combined, including share of partnerships . 2.3 2.7 2.5 2.5 2.6 2.3 2.4 FIXED CHARGE COVERAGE (h) Consolidated . . . . . . 2.3 2.8 2.7 2.7 2.8 2.5 2.6 Combined, including share of partnerships . 1.7 2.0 1.9 1.9 1.9 1.7 1.7 FINANCIAL RATIOS ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated . . . . . . 37.1% 34.4% 36.2% 45.6% 42.5% 44.5% 47.2% Combined, including share of uncon- solidated affiliates. . 44.8% 43.3% 44.7% 53.0% 50.8% 53.9% 56.6% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated . . . . . . 41.4% 37.1% 38.6% 46.8% 43.3% 42.7% 42.5% Combined, including share of partnerships . 47.9% 44.8% 45.9% 52.6% 49.9% 50.0% 50.1% Third Quarter 2004 Page 13 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) See page 15. (b) Represents dividends paid on all common and preferred shares and OP units. (c) 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 which reflect the Company's interests in unconsolidated partnerships on the equity method. (d) 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. (e) All preferred shares are convertible to common shares at the option of the holder. All preferred shares are redeemable by AMLI starting in 2007. (f) Represents Minority Interest on the Company's Consolidated Balance Sheets. (g) Includes amortization of deferred and other financing costs, prepayment penalty and interest and amortization attributable to discontinued operations. (h) Includes interest expense, principal amortization and preferred dividends. Information for 2003 has been re-stated to include principal amortization previously excluded. (i) Non-cash impairment loss of $1,191 recorded as a charge against net income in the three months ended June 30, 2003 had previously not been recorded as a charge against EBITDA, FFO and AFFO. EBITDA, FFO and AFFO for the three months ended June 30, 2003, together with related per share amounts, have been restated because of the change in the FFO definition. Third Quarter 2004 Page 14 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL FUNDS FROM OPERATIONS QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data)
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Company's share of communities' EBITDA (a). . . . . .$ 79,737 25,729 25,842 28,166 99,754 27,005 24,624 23,986 24,139 Share of Service Companies' EBITDA/ FFO (b). . . . . . . (419) (96) (210) (113) 2,614 103 1,720 228 563 Other income . . . . . 1,417 224 429 764 1,039 87 568 188 196 Co-investment fee income (c). . . . . . 1,493 636 424 433 2,357 557 832 512 456 General and administrative. . . . (4,860) (871) (1,793) (2,196) (5,910) (1,255) (1,605) (1,310) (1,740) Discontinued opera- tions - gain on sale of bond financing . . 4,723 -- 4,723 -- -- -- -- -- -- Non-cash impairment loss. . . . . . . . . (150) (150) -- -- (1,341) (150) -- (1,191) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA). . . . . . . 81,941 24,472 29,415 27,054 98,513 26,347 26,139 22,413 23,614 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt. . . . (22,035) (7,701) (7,077) (7,257) (26,222) (6,941) (6,537) (6,253) (6,491) Prepayment penalty and write-off of unamortized deferred financing costs . . . (1,121) -- (1,121) -- -- -- -- -- -- Share of partnership communities . . . . . (11,432) (3,859) (3,797) (3,776) (15,588) (3,966) (3,927) (3,894) (3,801) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (34,588) (11,560) (11,995) (11,033) (41,810) (10,907) (10,464) (10,147) (10,292) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 15 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL FUNDS FROM OPERATIONS - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SERVICE COMPANIES TAXES AND DEPRECIA- TION AND AMORTIZA- TION Taxes. . . . . . . . 1,536 520 522 494 636 391 (213) 303 155 Depreciation and amortization. . . . (2,538) (856) (845) (837) (3,124) (806) (778) (780) (760) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,002) (336) (323) (343) (2,488) (415) (991) (477) (605) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- FUNDS FROM OPERATIONS (FF0). . . 46,351 13,576 17,097 15,678 54,215 15,025 14,684 11,789 12,717 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CAPITAL EXPENDITURES PAID FROM FFO (e) Wholly-owned communities . . . . . (3,525) (1,453) (1,168) (904) (3,860) (842) (1,100) (834) (1,084) Share of partnership communities . . . . . (717) (270) (259) (188) (1,182) (230) (331) (396) (225) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (4,242) (1,723) (1,427) (1,092) (5,042) (1,072) (1,431) (1,230) (1,309) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . .$ 42,109 11,853 15,670 14,586 49,173 13,953 13,253 10,559 11,408 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) See page 46. (b) See footnote on page 50. (c) See page 49. (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 SEC. Third Quarter 2004 Page 16 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data)
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- RENTAL OPERATIONS Revenue: Rental revenues . . .$ 98,158 35,146 33,090 29,922 97,426 28,064 25,115 22,330 21,917 Rental expense. . . . (43,991) (16,705) (14,975) (12,311) (42,478) (11,989) (11,343) (9,831) (9,315) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from rental operations . . . . 54,167 18,441 18,115 17,611 54,948 16,075 13,772 12,499 12,602 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OTHER INCOME AND EXPENSES Income from partnerships (b) . . 2,549 616 430 1,503 5,831 1,596 1,309 1,469 1,457 Fee income from unconsolidated partnerships . . . . 1,493 636 424 433 2,357 557 832 512 456 Other income. . . . . 1,115 207 429 479 1,039 87 568 188 196 Interest and amortization of deferred financing costs. . . . . . . . (21,640) (7,701) (7,035) (6,904) (23,340) (6,183) (5,808) (5,551) (5,798) Prepayment penalty and write off of unamortized deferred financing costs. . . (1,121) -- (1,121) -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (17,604) (6,242) (6,873) (4,489) (14,113) (3,943) (3,099) (3,382) (3,689) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 17 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SERVICE COMPANIES' OPERATIONS Total revenue . . . . 37,284 11,752 11,839 13,693 70,962 15,997 19,017 13,882 22,066 Total expenses. . . . (38,729) (12,184) (12,372) (14,173) (70,836) (16,309) (18,288) (14,131) (22,108) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,445) (432) (533) (480) 126 (312) 729 (249) (42) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- General and administrative. . . . (4,860) (871) (1,793) (2,196) (5,910) (1,255) (1,605) (1,310) (1,740) Depreciation . . . . . (27,635) (10,017) (9,246) (8,372) (21,756) (7,072) (5,512) (4,598) (4,574) Provision for loss on land held for development or sale . (150) (150) -- -- (150) (150) -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES . 2,473 729 (330) 2,074 13,145 3,343 4,285 2,960 2,557 Share of gain on sale of a partner- ship's property . . . 2,648 -- -- 2,648 6,284 4,325 1,959 -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- (1,191) -- -- (1,191) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . 5,121 -- 729 (330) 4,722 18,238 7,668 6,244 1,769 2,557 Minority interest. . . (15) (76) (142) 203 1,330 575 690 (37) 102 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CONTINUING OPERATIONS. . . . . . 5,136 805 (188) 4,519 16,908 7,093 5,554 1,806 2,455 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 18 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM DISCON- TINUED OPERATIONS, NET OF MINORITY INTEREST Income from discon- tinued operations, net of minority interest. . . . . . . 2,898 111 587 2,200 4,083 1,327 381 1,122 1,253 Gain on sale of rental communities, net of minority interest. . . . . . . 48,800 11,318 37,482 -- 5,113 5,113 -- -- -- Gain on sale of Bond financing for a community sold, net of minority interest. . . . . . . 4,423 -- 4,423 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 56,121 11,429 42,492 2,200 9,196 6,440 381 1,122 1,253 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . . 61,257 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Net income attribu- table to preferred shares. . . . . . . . 9,609 1,933 5,744 1,932 8,142 2,200 1,981 1,980 1,981 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME ATTRIBU- TABLE TO COMMON SHARES. . . . . . . .$ 51,648 10,301 36,560 4,787 17,962 11,333 3,954 948 1,727 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== 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. Third Quarter 2004 Page 19 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data)
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- RENTAL OPERATIONS Rental revenues . . .$132,799 46,908 44,532 41,359 150,754 40,513 38,694 36,254 35,293 Rental expenses . . . (58,412) (21,672) (19,854) (16,886) (64,208) (16,874) (17,019) (15,627) (14,688) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from rental operations. . . . . 74,387 25,236 24,678 24,473 86,546 23,639 21,675 20,627 20,605 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OTHER INCOME AND EXPENSES Fee income from unconsolidated partnerships . . . . 1,493 636 424 433 2,357 557 832 512 456 Other income (b). . . 2,720 529 703 1,488 2,698 755 835 539 569 Interest and amortization of deferred financing costs. . . . . . . . (33,043) (11,530) (10,832) (10,681) (38,927) (10,149) (9,734) (9,446) (9,598) Prepayment penalty and write-off of unamortized de- ferred financing costs. . . . . . . . (1,121) -- (1,121) -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (29,951) (10,365) (10,826) (8,760) (33,872) (8,837) (8,067) (8,395) (8,573) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 20 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SERVICE COMPANIES' OPERATIONS Total revenue . . . . 37,284 11,752 11,839 13,693 70,962 15,997 19,017 13,882 22,066 Total expenses. . . . (38,729) (12,184) (12,372) (14,173) (70,836) (16,309) (18,288) (14,131) (22,108) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,445) (432) (533) (480) 126 (312) 729 (249) (42) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- General and administrative. . . . (4,860) (871) (1,793) (2,196) (5,910) (1,255) (1,605) (1,310) (1,740) Depreciation . . . . . (35,507) (12,688) (11,856) (10,963) (33,595) (9,742) (8,447) (7,713) (7,693) Provision for loss on land held for development or sale . (150) (150) -- -- (150) (150) -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES . 2,473 729 (330) 2,074 13,145 3,343 4,285 2,960 2,557 Share of gain on sale of a partnership's property. . . . . . . 2,648 -- -- 2,648 6,284 4,325 1,959 -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- (1,191) -- -- (1,191) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . 5,121 729 (330) 4,722 18,238 7,668 6,244 1,769 2,557 Minority interest. . . (15) (76) (142) 203 1,330 575 690 (37) 102 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM CON- TINUING OPERATIONS. . 5,136 805 (188) 4,519 16,908 7,093 5,554 1,806 2,455 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 21 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) STATEMENTS OF OPERATIONS - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands, except for share data) 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM DISCON- TINUED OPERATIONS, NET OF MINORITY INTEREST Income from discon- tinued operations, net of minority interest. . . . . . . 2,898 111 587 2,200 4,083 1,327 381 1,122 1,253 Gain on sale of rental communities, net of minority interest. . . . . . . 48,800 11,318 37,482 -- 5,113 5,113 -- -- -- Gain on sale of Bond financing for a community sold, net of minority interest. . . . . . . 4,423 -- 4,423 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 56,121 11,429 42,492 2,200 9,196 6,440 381 1,122 1,253 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . . 61,257 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Net income attribut- able to preferred shares. . . . . . . . 9,609 1,933 5,744 1,932 8,142 2,200 1,981 1,980 1,981 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME ATTRIBUT- ABLE TO COMMON SHARES. . . . . . . .$ 51,648 10,301 36,560 4,787 17,962 11,333 3,954 948 1,727 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== 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. Third Quarter 2004 Page 22 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS (Unaudited, dollars in thousands)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ASSETS Rental apartments Land. . . . . . . . . .$ 161,838 143,793 133,298 128,301 125,222 105,098 100,966 Depreciable property. . 1,017,150 910,267 840,363 805,130 810,666 677,232 653,002 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,178,988 1,054,060 973,661 933,431 935,888 782,330 753,968 Less: Accumulated depreciation. . . . . . (139,925) (130,897) (125,470) (116,830) (138,343) (131,332) (125,786) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,039,063 923,163 848,191 816,601 797,545 650,998 628,182 Rental apartments held for sale, net of accumulated depreciation (b). . . . -- 14,138 61,893 61,826 -- -- -- Rental apartments under development . . . 5,881 3,354 -- -- -- -- 26,692 Land and predevelopment costs . . . . . . . . . 14,233 15,106 15,409 15,200 12,644 12,604 14,248 Investments in partnerships (c). . . . 132,787 133,641 140,546 147,291 169,363 193,244 193,356 Cash and cash equivalents. . . . 4,038 3,717 6,961 5,937 6,090 5,357 5,927 Service Companies' assets. . . . . . . . . 41,652 43,489 43,219 68,777 66,930 61,978 55,013 Other assets and deferred costs, net (d) . . . . . . . . 15,447 13,597 19,145 47,702 16,615 29,366 27,275 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS . . . .$ 1,253,101 1,150,205 1,135,364 1,163,334 1,069,187 953,547 950,693 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2004 Page 23 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES Debt . . . . . . . . . .$ 576,477 476,449 496,583 610,513 522,672 462,781 457,950 Distributions in excess of investments in and earnings from partnerships. . . . . . 6,243 6,126 6,022 6,184 6,175 5,969 5,822 Accrued expenses and other liabilities . . . 37,970 32,841 30,755 38,174 38,069 35,497 32,168 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . 620,690 515,416 533,360 654,871 566,916 504,247 495,940 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . 96,933 96,933 93,247 93,247 93,247 93,247 93,247 Minority interest. . . . 33,650 34,286 32,308 31,203 61,718 61,579 63,198 Total shareholders' equity. . . . . . . . . 501,828 503,570 476,449 384,013 347,306 294,474 298,308 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . .$ 1,252,101 1,150,205 1,135,364 1,163,334 1,069,187 953,547 950,693 ========== ========== ========== ========== ========== ========== ========== ========== 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. Third Quarter 2004 Page 24 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (b) Net of accumulated depreciation of: . .$ -- 4,041 23,991 23,991 -- -- -- ========== ========== ========== ========== ========== ========== ========== ========== (c) See details in the Company's Form 10-K or Form 10-Q filed with the SEC. (d) Includes the following: Deferred financing costs, net . . . .$ 3,161 2,989 5,463 6,094 5,887 4,982 3,877 Deferred development costs. . . . . . . 801 718 3,556 4,123 4,053 3,738 4,780 Operating receiva- bles and prepaid expenses . . . . . 2,745 2,587 3,034 3,530 1,989 2,240 3,007 Deposits and restricted cash. . 3,311 2,546 2,938 2,248 2,420 2,179 2,166 Notes receivable. . 3,515 2,766 2,766 30,112 1,874 10,960 11,168 Advances to affiliates . . . . 827 291 301 576 (287) 4,655 1,524 Other . . . . . . . 1,087 1,700 1,087 1,019 679 512 753 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 15,447 13,597 19,145 47,702 16,615 29,366 27,275 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2004 Page 25 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS (Unaudited, dollars in thousands)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ASSETS Rental apartments Land. . . . . . . . . .$ 211,071 193,025 182,529 177,625 178,058 162,671 156,655 Depreciable property. . 1,320,851 1,213,756 1,143,565 1,112,374 1,141,120 1,039,799 1,002,147 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,531,922 1,406,781 1,326,094 1,289,999 1,319,178 1,202,470 1,158,802 Less: Accumulated depreciation. . . . . . (184,781) (173,116) (165,080) (156,297) (178,820) (174,068) (165,407) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,347,141 1,233,665 1,161,014 1,133,702 1,140,358 1,028,402 993,395 Rental apartments held for sale, net of accumulated depreciation (b). . . . -- 14,138 61,893 61,826 -- -- -- Rental apartments under development . . . 47,431 41,957 35,075 40,334 35,421 32,071 69,209 Land and predevelop- ment costs. . . . . . . 14,233 15,106 15,409 15,200 12,644 12,604 14,248 Cash and cash equivalents. . . . 7,147 6,583 10,201 8,817 9,699 8,898 10,058 Service Companies' assets. . . . . . . . . 41,635 43,489 43,219 68,777 66,930 61,978 55,013 Other assets and deferred costs, net (c) . . . . . . . . 17,518 16,025 21,738 51,507 20,484 29,401 28,047 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS . . . .$ 1,475,105 1,370,963 1,348,549 1,380,163 1,285,536 1,173,354 1,169,970 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2004 Page 26 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES Debt . . . . . . . . . .$ 795,436 694,308 706,534 820,090 731,110 674,373 669,648 Accrued expenses and other liabilities . . . 47,258 41,866 40,011 51,610 52,155 49,681 45,569 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . 842,694 736,174 746,545 871,700 783,265 724,054 715,217 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . 96,933 96,933 93,247 93,247 93,247 93,247 93,247 Minority interest. . . . 33,650 34,286 32,308 31,203 61,718 61,579 63,198 Total shareholders' equity. . . . . . . . . 501,828 503,570 476,449 384,013 347,306 294,474 298,308 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . .$ 1,475,105 1,370,963 1,348,549 1,380,163 1,285,536 1,173,354 1,169,970 ========== ========== ========== ========== ========== ========== ========== ========== 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. Third Quarter 2004 Page 27 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMBINED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (b) Net of accumulated depreciation of: .$ -- 4,041 23,991 23,991 -- -- -- ========== ========== ========== ========== ========== ========== ========== ========== (c) Includes the following: Deferred financing costs, net. . . .$ 4,452 4,337 6,858 7,482 7,358 6,510 5,465 Deferred develop- ment costs. . . . 801 718 3,556 4,123 4,053 3,738 4,780 Operating receivables and prepaid expenses. . . . . 2,997 3,052 3,544 4,297 2,206 2,716 3,492 Deposits and restricted cash . 4,522 3,704 4,052 3,581 4,139 3,423 3,221 Notes receivable . 2,690 1,941 1,941 30,112 1,874 8,277 8,485 Advances to affiliates. . . . 597 208 339 522 (144) 3,956 1,565 Other. . . . . . . 1,459 2,065 1,448 1,390 998 781 1,039 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 17,518 16,025 21,738 51,507 20,484 29,401 28,047 ========== ========== ========== ========== ========== ========== ========== ========== Third Quarter 2004 Page 28 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY SEPTEMBER 30, 2004 (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) (e) --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages. . . . . . $400,077 69.4% 6.2% 4.9 400,077 -- 400,077 -- Construction financing. . . . . . -- 0% 0% 0.0 -- -- -- -- Tax-exempt debt. . . . 9,500 1.6% 2.4% 0.2 9,500 -- -- 9,500 Credit facilities (f). 159,000 27.6% 4.2% 1.6 -- 159,000 70,000 89,000 Other (g). . . . . . . 7,900 1.4% 1.8% 0.0 -- 7,900 -- 7,900 -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $576,477 100.0% 5.5% 3.9 409,577 166,900 470,077 106,400 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 71.0% 29.0% 81.5% 18.5% ======= ======= ======= ======= 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) (e) --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages. . . . . . $609,599 76.6% 6.5% 5.2 609,599 -- 609,599 -- Construction financing. . . . . . 12,482 1.6% 4.7% 1.7 12,482 -- 4,590 7,892 Tax-exempt debt. . . . 9,500 1.2% 2.4% 0.2 9,500 -- -- 9,500 Credit facilities (f). 159,000 20.0% 4.2% 1.6 -- 159,000 70,000 89,000 Other (g). . . . . . . 4,855 0.6% 1.8% 0.0 -- 4,855 -- 4,855 -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $795,436 100.0% 6.0% 5.0 631,581 163,855 684,189 111,247 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 79.4% 20.6% 86.0% 14.0% ======= ======= ======= ======= See notes on the following page Third Quarter 2004 Page 29 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY SEPTEMBER 30, 2004 (Unaudited, dollars in thousands)
PREFERRED SHARES ---------------- Current Number of Out- Liquidation Date Original Shares at standing Dividend Preference Security of Issue Issue Issuance Shares Rate (h) ---------------------- --------- -------- --------- -------- -------- ----------- Convertible Preferred Series B (i) $ 75,000 3,125,000 3,125,000 (j) 76,500 Convertible Preferred Series D (k) 10/31/01 20,000 800,000 800,000 (l) 20,433 -------- --------- --------- ------- Total Preferred Shares $ 95,000 3,925,000 3,925,000 96,933 ======== ========= ========= ======= Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. (b) All references to "Combined", "Combined, including share of partnerships" or the like refer to calculations derived by combining the Company's consolidated financial information with the Company's pro rata share of its partnerships' financial information. (c) 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 2004 Page 30 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED SEPTEMBER 30, 2004 (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 $ 10,000 6.438% 10/4/99- 10/4/04 Cap Commerzbank 15,000 4.000% 4/1/04 - 4/1/09 Swap Commerzbank 15,000 4.378% 4/1/04 - 4/1/09 Swap PNC Bank, N.A. 30,000 4.510% 4/1/04 - 4/1/09 ------- $70,000 ======= (f) See note (c) on page 32. (g) Demand notes payable by the Company to its managed partnerships. Combined amount is net of elimination of Company's share. (h) Includes quarterly dividends payable in the following month. (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 2004 Page 31 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT MATURITIES SEPTEMBER 30, 2004 (Unaudited, dollars in thousands)
CONSOLIDATED DEBT (a) --------------------- Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt ---------- ------------ ----------- ----------- ----------- ------------ 2004 $ 1,602 7,900 9,502 1.7% 1.8% 2005 6,612 31,024 37,636 6.5% 8.2% 2006 5,798 211,767 217,565 37.8% 4.8% 2007 4,074 75,073(c) 79,147 13.7% 6.7% 2008 3,749 11,301 15,050 2.6% 7.0% 2009 3,993 -- 3,993 0.7% 0.0% 2010 4,288 -- 4,288 0.7% 0.0% 2011 3,002 119,104 122,106 21.2% 6.6% 2012 1,713 -- 1,713 0.3% 0.0% 2013 1,818 -- 1,818 0.3% 0.0% Thereafter 10,006 73,653(d) 83,659 14.5% 4.9% -------- ------- ------- ------ ----- Total $ 46,655 529,822 576,477 100.0% 5.5% ======== ======= ======= ====== ===== Percent to Total 8.1% 91.9% 100.0% ======== ======= ======= Third Quarter 2004 Page 32 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED SEPTEMBER 30, 2004 (Unaudited, dollars in thousands) COMBINED DEBT, INCLUDING SHARE OF PARTNERSHIPS (b) -------------------------------------------------- Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt ---------- ------------ ----------- ----------- ----------- ------------ 2004 $ 2,186 4,855 7,041 0.9% 2.2% 2005 9,017 31,024 40,041 5.0% 8.2% 2006 8,446 248,713 257,159 32.3% 5.1% 2007 6,538 105,435(c) 111,973 14.1% 7.2% 2008 5,562 45,578 51,140 6.4% 7.0% 2009 5,517 44,389 49,906 6.3% 6.7% 2010 5,483 10,447 15,930 2.0% 8.3% 2011 3,501 148,421 151,922 19.1% 6.7% 2012 2,087 2,678 4,765 0.6% 6.4% 2013 2,172 8,009 10,181 1.3% 5.2% Thereafter 16,798 78,580(d) 95,378 12.0% 5.0% -------- ------- ------- ------ ----- Total $ 67,307 728,129 795,436 100.0% 5.9% ======== ======= ======= ====== ===== Percent to Total 8.5% 91.5% 100.0% ======== ======= ======= 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 is in the amount of $240,000 and matures in May 2006. (d) Includes Bonds which mature in 2024. The credit enhancement on $9,500 expires on December 18, 2004. Third Quarter 2004 Page 33 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER ENDED (Unaudited, dollars in thousands) AVERAGE PHYSICAL OCCUPANCY (b) ------------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2004 2003 ment Last Last --------------------------------- --------------------------------- Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 6,407 0.1% 1.8% 92.9% 91.1% 92.5% 93.1% 92.8% 91.2% 87.5% Atlanta 3,992 -0.2% 1.0% 94.9% 93.9% 93.5% 94.5% 95.1% 92.0% 91.5% Austin 2,221 0.3% 1.8% 94.1% 92.3% 91.4% 92.4% 93.7% 91.2% 91.7% Houston 1,133 -0.3% 2.1% 94.3% 92.2% 94.6% 93.4% 94.6% 91.0% 89.0% Indianapolis 2,428 -0.5% 0.9% 93.5% 92.6% 91.8% 93.1% 94.0% 91.2% 89.4% Kansas City 2,192 1.2% 1.6% 94.6% 93.1% 92.7% 92.7% 93.5% 90.6% 89.4% Chicago 3,243 1.5% 0.9% 95.5% 94.6% 93.0% 93.3% 94.0% 92.1% 88.6% Denver 1,260 0.1% -0.6% 92.0% 92.6% 90.5% 90.8% 92.0% 86.2% 82.7% ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 0.3% 1.3% 94.0% 92.7% 92.6% 93.1% 93.7% 91.1% 89.0% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2004 Page 34 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (Unaudited, dollars in thousands) WEIGHTED AVERAGE COLLECTED REVENUE PER OCCUPIED UNIT (c) --------------------------------------------------------
Percent Change - Current Quarter Compared to Apart- ---------------- 2004 2003 ment Last Last --------------------------------- --------------------------------- Market Homes Year Quarter Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Dallas 6,407 0.5% 0.8% $ 845 838 831 824 841 853 865 Atlanta 3,992 0.4% 0.7% 887 881 872 871 884 892 892 Austin 2,221 -1.5% 0.9% 783 776 775 773 794 819 823 Houston 1,133 -1.9% 0.2% 1,033 1,031 1,022 1,019 1,053 1,063 1,068 Indianapolis 2,428 -2.0% 0.4% 799 795 794 788 815 816 816 Kansas City 2,192 -0.5% 0.1% 810 808 801 802 814 820 813 Chicago 3,243 -2.0% -0.5% 1,058 1,063 1,058 1,064 1,079 1,100 1,112 Denver 1,260 -0.8% 2.1% 958 938 951 961 965 1,028 1,038 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 -0.7% 0.5% $ 884 879 874 873 890 905 910 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Notes: (a) Information shown is Combined, including partnership communities at 100%. (b) Represents average daily physical occupancy which includes model units as vacant units. (c) Represents amounts collected for rent and other income. Third Quarter 2004 Page 35 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER AND YEAR ENDED (unaudited, dollars in thousands) TOTAL REVENUES (b) ------------------
Percent Change- Current Quarter Compared to Apart- --------------- 2004 2003 ment Last Last --------------------------------------- --------------------------------------- Market Homes Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------- ------- Dallas 6,407 0.2% 2.6% $ 44,542 15,077 14,692 14,773 59,295 14,749 15,048 14,941 14,557 Atlanta 3,992 0.2% 1.9% 29,752 10,086 9,902 9,764 39,524 9,862 10,064 9,827 9,771 Austin 2,221 -1.0% 3.0% 14,387 4,907 4,763 4,717 19,725 4,759 4,959 4,977 5,030 Houston 1,133 -2.2% 2.4% 9,829 3,310 3,232 3,287 13,144 3,235 3,386 3,290 3,233 Indiana- polis 2,428 -2.3% 1.7% 16,073 5,440 5,350 5,283 21,522 5,321 5,571 5,417 5,213 Kansas City 2,192 0.7% 1.8% 14,866 5,037 4,946 4,884 19,561 4,893 5,002 4,886 4,780 Chicago 3,243 -0.4% 0.4% 29,180 9,824 9,785 9,571 38,973 9,657 9,869 9,862 9,585 Denver 1,260 -0.7% 1.5% 9,867 3,332 3,282 3,253 13,217 3,301 3,355 3,351 3,210 ------ ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 -0.4% 1.9% $168,495 57,013 55,952 55,532 224,961 55,777 57,254 56,551 55,379 ====== ====== ====== ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2004 Page 36 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER AND YEAR ENDED (unaudited, dollars in thousands) EXPENSES (b) ------------ Percent Change- Current Quarter Compared to Apart- --------------- 2004 2003 ment Last Last --------------------------------------- --------------------------------------- Market Homes Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------- ------- Dallas 6,407 1.6% 2.6% $ 20,115 7,116 6,935 6,064 26,643 6,619 7,007 6,714 6,303 Atlanta 3,992 0.6% -7.0% 11,840 3,921 4,217 3,702 14,951 3,780 3,903 3,679 3,589 Austin 2,221 6.5% -11.1% 6,826 2,183 2,456 2,187 8,598 2,080 2,050 2,198 2,270 Houston 1,133 6.3% 3.7% 4,432 1,550 1,495 1,387 5,705 1,380 1,459 1,460 1,406 Indiana- polis 2,428 7.8% 46.2% 6,560 2,585 1,768 2,207 9,048 2,195 2,399 2,258 2,196 Kansas City 2,192 -19.2% -15.3% 5,324 1,655 1,953 1,716 7,135 1,552 2,047 1,869 1,667 Chicago 3,243 -1.1% 0.4% 12,178 4,157 4,139 3,882 15,937 3,940 4,205 4,100 3,692 Denver 1,260 3.6% 2.6% 3,548 1,285 1,253 1,010 4,617 1,114 1,240 1,297 967 ------ ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 0.6% 1.0% $ 70,823 24,452 24,216 22,155 92,634 22,660 24,310 23,575 22,089 ====== ====== ====== ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2004 Page 37 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER AND YEAR ENDED (unaudited, dollars in thousands) NET OPERATING INCOME (b) ------------------------ Percent Change- Current Quarter Compared to Apart- --------------- 2004 2003 ment Last Last --------------------------------------- --------------------------------------- Market Homes Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------- ------- Dallas 6,407 -1.0% 2.6% $ 24,427 7,961 7,757 8,709 32,652 8,130 8,041 8,227 8,254 Atlanta 3,992 0.1% 8.4% 17,912 6,165 5,685 6,062 24,573 6,082 6,161 6,148 6,182 Austin 2,221 -6.3% 18.1% 7,561 2,724 2,307 2,530 11,127 2,679 2,909 2,779 2,760 Houston 1,133 -8.7% 1.3% 5,397 1,760 1,737 1,900 7,439 1,855 1,927 1,830 1,827 Indiana- polis 2,428 -10.0% -20.3% 9,513 2,855 3,582 3,076 12,474 3,126 3,172 3,159 3,017 Kansas City 2,192 14.4% 13.0% 9,543 3,382 2,993 3,168 12,426 3,341 2,955 3,017 3,113 Chicago 3,243 0.1% 0.4% 17,002 5,667 5,646 5,689 23,036 5,717 5,664 5,762 5,893 Denver 1,260 -3.2% 0.9% 6,319 2,047 2,029 2,243 8,600 2,187 2,115 2,054 2,244 ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 22,876 -1.2% 2.6% $ 97,674 32,561 31,736 33,377 132,327 33,117 32,944 32,976 33,290 ====== ====== ====== ======== ====== ====== ====== ====== ======= ====== ====== ====== ====== Notes: (a) Information shown is Combined, including share of partnership communities at 100%. (b) See page 46 for components of same store community revenue, expenses, net operating income and EBITDA. Third Quarter 2004 Page 38 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) QUARTER AND YEAR ENDED (Unaudited, dollars in thousands except per apartment home) OPERATING EXPENSES ------------------
Percent Change- Current Quarter Compared to --------------- 2004 2003 Last Last --------------------------------------- --------------------------------------- Expense Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------- ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------- ------- Personnel 6.4% 5.9% $ 17,350 6,111 5,771 5,468 21,858 5,409 5,741 5,625 5,083 Advertising and promotion -3.2% 12.6% 3,342 1,268 1,126 948 4,519 1,031 1,310 1,120 1,058 Utilities -13.7% 16.2% 4,895 1,811 1,558 1,526 6,794 1,629 2,097 1,543 1,525 Building repairs and maintenance 11.1% 1.1% 9,611 3,708 3,669 2,234 11,204 2,820 3,338 2,793 2,253 Landscaping and grounds maintenance -5.4% -17.1% 3,248 1,131 1,365 752 4,318 901 1,195 1,349 873 Real estate taxes 0.4% -0.3% 21,724 7,030 7,054 7,640 29,564 7,343 7,005 7,466 7,750 Insurance -31.4% -35.0% 2,907 713 1,096 1,098 4,083 1,093 1,039 981 970 Property management fees -2.4% 2.0% 5,983 2,023 1,984 1,976 8,159 1,995 2,072 2,066 2,026 Other 28.0% 10.8% 1,763 657 593 513 2,135 439 513 632 550 ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ 0.6% 1.0% $ 70,823 24,452 24,216 22,155 92,634 22,660 24,310 23,575 22,089 ====== ======= ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Third Quarter 2004 Page 39 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER AND YEAR ENDED (Unaudited, dollars in thousands except per apartment home) CAPITAL EXPENDITURES (b) ------------------------
Percent Change- Current Quarter Compared to --------------- 2004 2003 Last Last --------------------------------------- --------------------------------------- Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 10.9% 17.5% $ 4,861 1,964 1,672 1,225 6,075 1,250 1,772 1,824 1,229 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 213 86 73 54 266 55 77 80 54 ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== TOTAL OPERATING COST (c) ------------------------ Percent Change- Current Quarter Compared to --------------- 2004 2003 Last Last --------------------------------------- --------------------------------------- Year Quarter Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 Jun 30 Mar 31 ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 1.3% 2.0% $ 75,684 26,416 25,888 23,380 98,709 23,910 26,082 25,399 23,318 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 3,309 1,155 1,132 1,022 4,314 1,045 1,140 1,110 1,019 ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== 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 2004 Page 40 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE The following graphs present same community monthly total revenue for the first nine months of 2004 in black, compared to monthly total revenue for the twelve months of 2003 in gray. Commentary and financial data relate to "Combined" operations, including partnership communities at 100%. Note that occupancy changes are disclosed in absolute terms, and economic data is as of August 2004. ALL COMMUNITIES --------------- For the third quarter of 2004 compared to the third quarter of 2003, total revenue for all same store communities in AMLI's portfolio declined by 0.4% while operating expenses increased by 0.6%, resulting in a decrease in net operating income (NOI) of 1.2%. The slight decrease in revenues resulted from a 0.9% decrease in rental income and a 5.0% increase in other income, which was primarily attributable to higher leasing-related fees and previous collections. The rental income decline was due to a combination of a 0.4% decrease in in-place rental rates, as measured by collected rent per occupied unit, and a 0.3% increase in occupancy to 94.0%. Collected rent per occupied unit was down in seven of AMLI's eight markets, whereas occupancies were up in five of eight markets. Sequentially, comparing the current quarter to the second quarter of 2004, revenue increased 1.9% (for the second consecutive quarterly increase), operating expenses increased 1.0% and net operating income increased 2.6%. The increase in sequential revenue was the result of a 1.7% increase in rental income (reflecting an increase in collected rent per occupied unit in six of eight markets and an increase in occupancy in seven of eight markets) and a 4.8% increase in other income, mainly due to increases in leasing-related fees. Overall employment in seven of AMLI's markets increased during the twelve months ended August 2004. DALLAS/FT. WORTH ---------------- DALLAS/FT. WORTH same community total revenue, operating expenses and NOI for the third quarter 2004 increased 0.2%, increased 1.6% and decreased 1.0%, respectively, compared to the same period in 2003. The increase in revenue was due to a 2.2% increase in collected rents per occupied unit as well as a 0.1% increase in occupancy. Other income increased by 8.7% on a year-over-year basis due to higher collections in several fee categories. On a sequential basis compared to the prior quarter, total revenue increased 2.6% (for the third consecutive quarter) as a result of increases in both occupancy and collected rent per occupied unit of 1.8% and 0.5%, respectively; operating expenses increased 2.6% (mainly due to higher than anticipated real estate taxes and an increase in utility costs) and NOI increased by 2.6%. Moderate job growth continued in the region as the DF/W metroplex added 13,400 jobs in the trailing 12 months ended August 2004. Job growth will need to accelerate in the future year to help absorb the relatively high permit activity that remains in this market as 9,897 permits have been issued, representing 1.9% of existing stock, for the year ending August 2004. Third Quarter 2004 Page 41 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED ATLANTA ------- ATLANTA same community total revenue and operating expenses increased 0.2% and 0.6%, respectively, compared to the same quarter a year ago, resulting in no change in NOI. The slight increase in revenue was due to an 11.0% increase in other income as rental income decreased 0.7%. Rental income fell slightly as collected rent per occupied unit declined 1.0% and occupancy slipped 0.2% to 94.9%. The increase in other income was due to higher fees associated with increased leasing and corporate homes activity. Sequentially, compared to the second quarter of 2004, total revenue and NOI increased 1.9% and 8.4% respectively, while operating expenses declined 7.0%. The increase in total revenue was the result of a 1.5% increase in rental income, as well as a 5.9% increase in other income. The increase in rental income was the result of a 1.0% gain in occupancy and a 0.2% decrease in collected rent per occupied unit. The decrease in operating expense was primarily due to timing of R&M and landscaping projects, as well as a positive adjustment to real estate taxes. The challenge in Atlanta remains absorption of new supply, with 13,185 units permitted for the year ending August 2004, which represents a 3.5% increase to the existing apartment stock. Encouraging news in Atlanta remains the employment growth outlook. For the year ending August 2004, employment posted a gain of 11,200 jobs, or a modest 0.5% growth rate compared to net job loss for the same period of a year ago. CHICAGO ------- CHICAGO same community NOI for the third quarter of 2004 compared to the third quarter of 2003 increased by 0.1% as a result of a decrease in total revenue of 0.4% and a 1.1% decrease in operating expenses. The revenue decrease was the result of a 0.1% decrease in rental income and a 4.1% decrease in other income. The decrease in rental income was driven by a 1.5% increase in occupancy (to 95.5%) and a 1.7% decrease in collected rent per occupied unit. Sequentially, comparing the current quarter to the second quarter of 2004, total revenues were up 0.4% as rental income was up 0.6% and other income was down 2.3%. The change in rental income was due to an increase in occupancy of 0.8% and a 0.2% decrease in collected rent per occupied unit. Operating expenses increased only 0.4%, resulting in an increase in sequential NOI of 0.4%. Chicago is finally showing a positive employment trend, albeit at a modest 0.2% rate, which is well below the U.S. average and below those in Houston, Dallas Austin and Atlanta. On the supply side, the Chicago metro area issued permits for 9,468 new multifamily units, representing 1.4% of existing apartment stock, for the year ending August 2004, a 0.9% decrease from 2003. It should again be noted that in Chicago a significant portion of permits issued are for "for- sale" housing and will not directly compete with "for-rent" product. AMLI's market research shows approximately 1,700 institutional grade apartment units currently under construction in the Chicago metropolitan area, a very small number of new units for a market the size of Chicago. Third Quarter 2004 Page 42 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED AUSTIN ------ AUSTIN same community total revenue, operating expenses and NOI for the third quarter of 2004 decreased 1.0%, increased 6.5% and decreased 6.3%, respectively, compared to the same period in 2003. The decrease in total revenue was primarily the result of a 2.5% decrease in average collected rent per occupied unit. Offsetting this decrease, however, was a 0.3% increase in occupancy. Operating expenses increased primarily due to higher payroll costs associated with the use of some temporary help. On a sequential basis, comparing the current quarter to the second quarter of 2004, total revenue increased by 3.0%, due to an increase in rental income of 2.7% and an increase in other income of 7.1%. Occupancy increased 1.8% while collected rent per occupied unit increased 0.5%. NOI increased 18.1% due to an 11.1% decrease in operating expenses. The decrease in expenses is primarily due to a favorable adjustment in real estate taxes. Austin continues to struggle with absorption as approximately 3,949 new units have been completed in the past twelve months. Permit activity remains relatively stable as 2,658 permits, representing 1.8% of existing stock, which were issued for the year ending August 2004, a decrease of 27% from the same period a year ago. At the same time job growth appears to be taking hold in this market as 4,500 jobs were added in the twelve months ended August 2004. KANSAS CITY ----------- KANSAS CITY same community total revenue and NOI for the third quarter of 2004 increased 0.7% and 14.4%, respectively, compared to the third quarter of 2003. Operating expenses in the current quarter compared to last year decreased 19.2%. The increase in revenue is due to a decrease in rental income of 0.1% and a 9.2% increase in other income. The decline in rental income was primarily the result of a 1.3% decrease in collected rent per occupied unit, which was partially offset by an increase in occupancy of 1.2% to 94.6%. The increase in other income was due to an increase in termination fees, cable revenues and other fees. The decrease in operating expenses was primarily due to lower costs associated with R&M projects and marketing, as well as positive adjustment to real estate taxes. On a sequential basis, total revenue and NOI increased 1.8% and 13.0%, respectively, compared to the second quarter of 2004, and operating expenses decreased by 15.3%. The expense decrease was primarily due to the timing of R&M projects and a positive real estate tax adjustment. Sequential rental income increased 1.7% resulting from a 0.1% increase in collected rent per occupied unit and a 1.6% gain in occupancy during the quarter. Other income also posted a sequential gain, up 2.8% primarily on the strength of higher cable revenue fees. Demand fundamentals in Kansas are trending in the right direction as there have been positive signs in both job growth and multifamily permits in 2004. For the year ending August 2004, the Kansas City metro area gained 1,400 jobs, a marked improvement compared to the 2,600 jobs lost for the same period of a year ago. In addition, multifamily permits have trended down over the past year. For the year ending August 2004, authorized permits totaled 1,139 units, a 53.6% decrease over the same period of a year ago, and representing a 0.9% increase to the existing apartment stock. Third Quarter 2004 Page 43 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED INDIANAPOLIS ------------ INDIANAPOLIS same community total revenue decreased 2.3%, operating expenses increased 7.6% and NOI decreased 9.9% for the third quarter 2004 versus the same period of a year ago. Rental income on a year-over-year basis fell by 1.3% as a result of a decrease occupancy, which fell by 0.5% to 93.5%, and collected rent per occupied unit, which was down 1.0%. Other income also declined 13.3% due to lower fees in numerous categories received in the previous period. The increase in operating expenses was the result of planned repair and maintenance projects completed during the quarter. Sequentially, compared to the second quarter of 2004, total revenue increased 1.7%, operating expenses increased 46.2% and NOI decreased 20.3%. The increase in revenue was due to a 1.3% increase in rental income due to a 0.9% and 0.1% increase in occupancy and collected rent per occupied unit, respectively. Other income also increased by 6.1% from the previous quarter. The significant increase in operating expenses is primarily due to higher payroll cost, timing of planned repair and maintenance projects, and a negative real estate tax adjustment. Absent the real estate tax adjustments, operating expenses would have increased 15.8%. Demand and supply fundamentals in Indianapolis continue to be a concern. The BLS reported job losses of 7,000 for the year ending August 2004. In addition, 1,638 multifamily permits have been authorized over the past year, which is a 38.8% decrease from the same period of a year ago, and represents a 1.3% increase to the existing apartment stock. HOUSTON ------- HOUSTON same community total revenue, operating expenses and NOI for the third quarter of 2004 decreased 2.2%, increased 6.3%, and decreased 8.7%, respectively, compared to the same period in 2003. Rental income decreased 2.6%, mainly due to a decrease in collected rent per occupied unit of 2.2% and a decrease in occupancy of 0.3%, and other income increased 2.8%. Sequentially, comparing the current quarter to the second quarter of 2004, total revenue increased by 2.4% on the strength of a 2.2% increase in rental income and a 4.9% increase in other income. Occupancy improved 2.1% while collected rent per occupied unit was flat. Houston will be faced with challenging supply fundamentals as permit activity remains high with 12,192 permits, representing 2.7% of existing stock, issued for the year ending august 2004. On the demand side, Houston is beginning to show signs of a solid rebound as it registered an increase of approximately 23,100 jobs for the twelve months ended August 2004. Third Quarter 2004 Page 44 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME COMMUNITY RENTAL REVENUE - CONTINUED DENVER ------ DENVER same community total revenue decreased by 0.7%, operating expenses increased by 3.6% and NOI fell by 3.2% for the third quarter of 2004 compared to the third quarter of 2003. Rental income on a year-over-year basis fell 2.4% due to continued weakness in the market, which pushed collected rent per occupied unit down by 2.5%. Occupancy improved to 92.0%, up 0.1%, helping to limit the decline in rental income. Other income limited the decline in total revenue by growing 18.9% for the quarter due to higher fee collection in numerous categories. The increase in operating expenses is primarily due to planned repair and maintenance projects during the quarter and higher utility costs. On a sequential basis, comparing the current quarter to the second quarter of 2004, total revenue, operating expenses and NOI increased 1.5%, 2.6% and 0.9%, respectively. The expense increase was primarily due to higher utility costs. Rental income increased 0.4% on the strength of a 1.0% increase in collected rent per occupied unit, which was limited by a 0.6% decrease in occupancy. In addition to rental income, other income increased by 13.2% due to previous collections, parking income and late fees. The Denver/Boulder metro is beginning to see a strengthening in demand/supply fundamentals as job growth has finally turned positive and the authorization of multifamily permits has slowed dramatically. For the year ending August 2004, the metro area experienced a gain of 3,700 jobs, a positive 0.3% growth rate, which is in sharp contrast to the 29,800 jobs lost during the same period of one year ago. Additionally multifamily permitting has declined over the past twenty-four months. For the year ending August 2004, authorized permits totaled 3,987 units, representing a 1.7% increase to the existing apartment stock, a 27.0% and 49.6% decrease over the same period of one and two years ago respectively Third Quarter 2004 Page 45 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI QUARTER ENDED SEPTEMBER 30 (Dollars in thousands)
Wholly-Owned Communities (a) Combined at 100% Combined at AMLI's Share ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2004 2003 Change 2004 2003 Change 2004 2003 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (b) . . . . 28,599 23,632 21.0% 57,013 57,254 -0.4% 39,003 35,295 10.5% New communities (c). . . 843 615 37.0% 4,583 4,045 13.3% 1,828 1,524 20.0% Communities under development and lease-up. . . . . . . . 699 0 0.0% 2,417 733 229.9% 1,071 147 631.0% Acquisition communities (d) . . . . 4,237 0 0.0% 4,237 0 0.0% 4,237 0 0.0% Communities under rehab (e) . . . . . . . 768 868 -11.5% 768 868 -11.5% 768 868 0.0% Communities sold (f) . . 750 5,177 -85.5% 751 8,996 -91.7% 750 6,038 -87.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- 35,896 30,292 18.5% 69,769 71,896 -3.0% 47,657 43,872 8.6% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b) . . . . 12,798 10,634 20.3% 24,452 24,310 0.6% 17,123 15,396 11.2% New communities (c). . . 640 259 147.6% 2,025 1,708 18.6% 1,003 639 57.0% Communities under development and lease-up. . . . . . . . 502 0 0.0% 1,694 526 222.2% 780 107 632.1% Acquisition communities (d) . . . . 2,370 0 0.0% 2,370 0 0.0% 2,370 0 0.0% Communities under rehab (e) . . . . . . . 395 451 -12.4% 395 451 -12.4% 395 451 0.0% Communities sold (f) . . 608 2,494 -75.6% 608 4,412 -86.2% 608 2,924 -79.2% -------- -------- -------- -------- -------- -------- -------- -------- -------- 17,313 13,838 25.1% 31,544 31,407 0.4% 22,279 19,517 14.2% ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 46 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER ENDED SEPTEMBER 30 (Dollars in thousands) Wholly-Owned Communities (a) Combined at 100% Combined at AMLI's Share ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2004 2003 Change 2004 2003 Change 2004 2003 Change -------- -------- -------- ------- ------- -------- -------- -------- -------- NET OPERATING INCOME Same store communities (b) . . . . 15,801 12,998 21.6% 32,561 32,944 -1.2% 21,880 19,899 10.0% New communities (c). . . 203 356 -43.1% 2,558 2,337 9.5% 825 885 -6.8% Communities under development and lease-up. . . . . . . . 197 0 0.0% 723 207 249.3% 291 40 628.2% Acquisition communities (d) . . . . 1,867 0 0.0% 1,867 0 0.0% 1,867 0 0.0% Communities under rehab (e) . . . . . . . 373 417 -10.6% 373 417 -10.7% 373 417 0.0% Communities sold (f) . . 142 2,683 -94.7% 143 4,584 -96.9% 142 3,114 -95.4% -------- -------- -------- ------- ------- -------- -------- -------- -------- 18,583 16,454 12.9% 38,225 40,489 -5.6% 25,378 24,355 4.2% ======== ======== ======== ======== ======== ======== ======== Less Co-investment partners' share . . . . (12,847) (16,134) ------- ------- COMPANY'S SHARE OF NOI (g) . . . . . . . . 25,378 24,355 Cash flow preference and operating promote (h) . . . . . . . . . . 546 457 ------- ------- 25,924 24,812 Company's share of other, net . . . . . . (195) (188) ------- ------- COMPANY'S SHARE OF COMMUNITIES' EBITDA. . 25,729 24,624 ======= ======= COMPANY'S PERCENTAGE OF COMBINED NOI: Before cash flow preferences . . . . . . 66.4% 60.2% Including cash flow preferences and other . . . . . . . . . 67.8% 61.3% ======== ======== Third Quarter 2004 Page 47 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER 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, 2003. (c) New communities are communities that were developed by the Company and began stabilized operations after January 1, 2003. (d) Acquisition communities are communities having stabilized operations that were acquired by the Company after January 1, 2003. (e) Communities being rehabbed as of January 1, 2004. (f) Reflects operations through the date of sale. (g) Company's 100% interest in wholly-owned communities plus the Company's share of partnership communities at AMLI's ownership share. (h) 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 49. (i) Includes 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 49. Third Quarter 2004 Page 48 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CO-INVESTMENT COMPENSATION QUARTER AND YEAR ENDED (Dollars in thousands)
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- FEE INCOME (a) Acquisition fees (a) .$ -- -- -- -- -- -- -- -- -- Asset management fees (b). . . . . . . 490 162 162 166 460 113 111 118 118 Disposition fees (c) . -- -- -- -- 567 242 325 -- -- Development fees (a) . 1,003 474 262 267 1,330 202 396 394 338 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,493 636 424 433 2,357 557 832 512 456 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF CASH FLOW (d) Promoted interest from sale proceeds. . -- -- -- -- 375 -- 375 -- -- Promoted interest from operating cash flow . . . . . . 568 107 207 254 549 151 127 146 125 Cash flow pre- ferences (e). . . . . 1,506 440 254 812 1,767 358 330 549 530 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 2,074 546 461 1,066 2,691 509 832 695 655 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL. . . . . . .$ 3,567 1,183 885 1,499 5,048 1,066 1,664 1,207 1,111 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Acquisition and development fees are shown net of elimination of Company's share. (b) Asset management fees are shown at 100%. The Company's share of partnerships' EBITDA on page 46 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 46. (e) The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. Third Quarter 2004 Page 49 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION QUARTER AND YEAR ENDED Unaudited (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS -------------------------------------------
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUE Property management fees (a). . . . . . .$ 7,548 2,646 2,420 2,482 10,371 2,552 2,657 2,611 2,551 General contractor revenue, net (b). . . 504 224 136 144 752 (310) 77 360 625 Gross profit - corporate homes (c) . 725 212 264 249 996 242 276 251 227 Other income . . . . . 1,522 542 341 639 1,492 572 320 395 205 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 10,299 3,624 3,161 3,514 13,611 3,056 3,330 3,617 3,608 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OPERATING EXPENSES Property management. . 7,682 2,397 2,638 2,647 9,016 1,396 2,606 2,663 2,351 General contractor . . 2,412 1,111 521 780 2,427 721 765 498 443 Corporate homes. . . . 805 306 255 244 980 260 245 245 230 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 10,899 3,814 3,414 3,671 12,423 2,377 3,616 3,406 3,024 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Provision for loss on land parcels held for sale. . . . -- -- -- -- (550) (550) -- -- -- Share of gain on sale of a residential community built for sale. . . . . . . -- -- -- -- 1,913 -- 1,913 -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EBITDA . . . . . . . . (600) (190) (253) (157) 2,551 129 1,627 211 584 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 50 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED QUARTER AND YEAR ENDED Unaudited (Dollars in thousands) COMBINED CONDENSED STATEMENTS OF OPERATIONS ------------------------------------------- 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Interest expense . . . (1,002) (322) (272) (408) (1,042) (351) (289) (230) (172) Depreciation and amortization. . . . . (2,538) (856) (845) (837) (3,124) (806) (778) (780) (760) Taxes. . . . . . . . . 1,536 520 522 494 636 391 (213) 303 155 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME (LOSS). . . (2,604) (848) (848) (908) (979) (637) 347 (496) (193) Eliminations, interest and other . . . . . . . . 1,183 416 315 452 1,105 325 382 247 151 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (d) . . . .$ (1,421) (432) (533) (456) 126 (312) 729 (249) (42) ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Includes a 3% fee from wholly-owned communities. (b) General contractor revenues are shown net of construction costs. (c) Gross revenue from customers less payments to communities and cost of sales. (d) See Company's Consolidated Statements of Operations. Third Quarter 2004 Page 51 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED (Dollars in thousands) COMBINED CONDENSED FINANCIAL POSITION -------------------------------------
2004 2003 ----------------------------------------- ----------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- ASSETS Receivables (a). . . . . $ 3,040 5,506 6,557 6,351 9,162 12,453 14,356 Land held for sale (b). . . . . . . . 12,247 12,433 12,404 12,301 12,822 12,816 12,780 Rental communities under development and held for sale (c) . . . . . . . . . . 10,361 9,676 8,396 34,618 29,620 20,434 11,736 Building and leasehold improve- ments, net (d). . . . . 2,124 2,208 2,257 2,227 2,327 2,352 2,406 Information technology costs, net. . . . . . . 7,260 7,600 7,959 8,500 8,160 8,287 8,231 Other (e). . . . . . . . 6,620 6,066 5,646 4,780 4,839 5,636 5,504 -------- -------- -------- -------- -------- -------- -------- -------- Total Assets . . . . $ 41,652 43,489 43,219 68,777 66,930 61,978 55,013 ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Primarily costs and fees due from affiliates. (b) Represents land parcels as follows: Prairie Lakes (120 acres in Indiana) . . . . . $ 7,027 7,219 7,192 7,160 7,681 7,616 7,642 Fossil Creek (34 acres in Texas) . . . . . . 5,220 5,214 5,212 5,141 5,141 5,200 5,138 -------- -------- -------- -------- -------- -------- -------- -------- $ 12,247 12,433 12,404 12,301 12,822 12,816 12,780 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 52 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION - CONTINUED (Dollars in thousands) 2004 2003 ----------------------------------------- ----------------------------------------- Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- (c) See Pages 60 and 62. (d) Primarily includes a corporate office building, net of depreciation. (e) Represented by: Investments in partnerships . . . $ (48) 43 215 485 928 1,747 1,632 Investments in real estate. . . . 1,718 1,448 1,448 737 737 737 737 Deferred income tax. . . . . . . . 3,762 3,240 2,721 2,229 1,852 2,064 1,760 Unamortized goodwill . . . . . 668 668 668 668 668 668 668 Other . . . . . . . 520 667 594 661 654 420 707 -------- -------- -------- -------- -------- -------- -------- -------- $ 6,620 6,066 5,646 4,780 4,839 5,636 5,504 ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 53 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL STABILIZED COMMUNITIES SEPTEMBER 30, 2004
Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- DALLAS/ FT. WORTH, TX ------------- AMLI: at Bent Tree 100% Dallas, TX 1997 1996/2000 500 92.6% $ 856 Same Store at Bishop's Gate 100% Plano, TX 1997 1997 266 94.0% 1,030 Same Store at Breckinridge Point 45% Richardson, TX 2000 1999 440 93.9% 923 Same Store at Bryan Place 48% Dallas, TX 2002 1999 420 92.9% 949 Same Store at Chase Oaks 100% Plano, TX 1994 1986 250 96.0% 696 Same Store at Deerfield 25% Plano, TX Developed 2000 240 93.8% 898 Same Store on the Fairway 100% Coppell, TX 2004 2002 322 96.0% 885 Acquisition on Frankford 45% Dallas, TX 2000 1998 582 92.4% 889 Same Store on the Green 100% Ft. Worth, TX 1994 1990/93 424 92.0% 743 Same Store Knox-Henderson 100% Dallas, TX 2003 1994 180 91.7% 1,071 Acquisition of North Dallas 100% Dallas, TX 1989/90 1985/86 1,032 93.4% 699 Same Store at Oak Bend 100% Dallas, TX 1999 1997 426 93.2% 789 Same Store (b) on the Parkway 25% Dallas, TX Developed 1999 240 92.1% 849 Same Store at Prestonwood Hills 45% Dallas, TX 1999 1997 272 93.0% 899 Same Store 7th Street Station 100% Ft. Worth, TX 2002 2000 189 89.4% 1,034 Same Store at Shadow Ridge 100% Flower Mound, TX 2001 2000 222 93.2% 1,026 Same Store at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 94.8% 798 Same Store Upper West Side 100% Ft. Worth, TX 2002 2001 194 91.8% 1,017 Same Store at Valley Ranch 100% Irving, TX 1990 1985 460 94.6% 781 Same Store ------ ------ ------ ------ 6,909 25.3% 93.3% 853 ------ ------ ------ ------ Third Quarter 2004 Page 54 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2003 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- ATLANTA, GA ------------ AMLI: at Barrett Lakes 35% Kennesaw, GA Developed 1997 446 96.0% 910 Same Store at Barrett Walk 25% Kennesaw, GA Developed 2002 290 95.5% 881 New at Clairmont 100% Atlanta, GA 1988 1988 288 95.1% 824 Same Store at Kedron Village 20% Fayette County, GA Developed 2002 216 94.4% 1,060 Same Store at Killian Creek 100% Snellville, GA Developed 1999 256 98.1% 829 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 95.7% 771 Same Store at Mill Creek 25% Gwinnett County, GA Developed 2001 400 96.0% 835 Same Store at Milton Park 25% Alpharetta, GA Developed 2003 461 96.5% 946 New at Northwinds 35% Alpharetta, GA Developed 1999 800 96.0% 945 Same Store at Park Creek 100% Gainesville, GA Developed 1998 200 98.0% 797 Same Store at Peachtree City 20% Fayette County, GA Developed 1998 312 93.3% 926 Same Store at River Park 40% Norcross, GA Developed 1997 222 95.5% 914 Same Store at Vinings 100% Smyrna, GA 1992/97 1985 360 95.8% 810 Same Store at West Paces 100% Atlanta, GA 1993 1992 337 86.4% 914 Same Store at Windward Park 45% Alpharetta, GA 1999 1999 328 95.1% 909 Same Store ------ ------ ------ ------ 5,080 18.6% 95.2% 894 ------ ------ ------ ------ Third Quarter 2004 Page 55 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- CHICAGO, IL ----------- AMLI: at Canterfield 100% West Dundee, IL 2004 2001 352 91.2% 1,210 Acquisition at Chevy Chase 33% Buffalo Grove, IL 1996 1988 592 92.4% 1,075 Same Store at Danada Farms 100% Wheaton, IL 1997 1989/91 600 92.0% 1,033 Same Store (b) at Fox Valley 25% Aurora, IL Developed 1998 272 94.9% 1,016 Same Store at Oakhurst North 100% Aurora, IL Developed 2000 464 95.7% 1,031 Same Store (b) at Osprey Lake 69% Gurnee, IL 2001 1997/99 483 94.8% 1,048 Same Store at Poplar Creek 100% Schaumburg, IL 1997 1985 196 93.9% 1,055 Same Store at River Run 100% Naperville, IL 2004 2003 206 83.5% 1,074 Acquisition at St. Charles 25% St. Charles, IL Developed 2000 400 94.0% 1,123 Same Store at Windbrooke 15% Buffalo Grove, IL 1995 1987 236 97.0% 1,088 Same Store ------ ------ ------ ------ 3,801 13.9% 93.2% 1,073 ------ ------ ------ ------ AUSTIN, TX ---------- AMLI: in Great Hills 100% Austin, TX 1991 1985 344 93.6% 661 Same Store at Lantana Ridge 100% Austin, TX 1997 1997 354 95.8% 847 Same Store at Monterey Oaks 25% Austin, TX Developed 2000 430 95.1% 857 Same Store at Scofield Ridge 45% Austin, TX 2000 2000 487 94.1% 782 Same Store at StoneHollow 100% Austin, TX 2000 1997 606 96.5% 762 Same Store ------ ------ ------ ------ 2,221 8.1% 95.1% 783 ------ ------ ------ ------ Third Quarter 2004 Page 56 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- KANSAS CITY, KS --------------- AMLI: at Cambridge Square 30% Overland Park, KS Developed 2002 408 91.9% 889 New Creekside 100% Overland Park, KS Developed 2000 224 94.6% 807 Same Store (b) at Lexington Farms 100% Overland Park, KS 1998 1998 404 92.3% 790 Same Store at Regents Center 100% Overland Park, KS 1994 1991/95 /97 424 94.3% 763 Same Store at Regents Crest 100% Overland Park, KS 1997 1997/2000 476 94.5% 788 Same Store (b) at Summit Ridge 25% Lees Summit, MO Developed 2001 432 92.8% 846 Same Store at Wynnewood Farms 25% Overland Park, KS Developed 2000 232 92.7% 907 Same Store ------ ------ ------ ------ 2,600 9.5% 93.3% 822 ------ ------ ------ ------ Third Quarter 2004 Page 57 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- INDIANAPOLIS, IN ---------------- AMLI: Carmel Center 100% Carmel, IN Developed 2004 322 92.9% 926 New at Castle Creek 100% Indianapolis, IN Developed 2000 276 96.0% 906 Same Store (b) at Conner Farms 100% Fishers, IN 1997 1993 300 96.3% 850 Same Store at Eagle Creek 100% Indianapolis, IN 1998 1998 240 93.3% 844 Same Store at Lake Clearwater 25% Indianapolis, IN Developed 1999 216 93.1% 953 Same Store at Riverbend 100% Indianapolis, IN 1992/93 1983/85 996 92.2% 688 Same Store on Spring Mill 100% Carmel, IN 1999 1999 400 88.8% 850 Same Store (b) ------ ------ ------ ------ 2,750 10.1% 92.8% 813 ------ ------ ------ ------ HOUSTON, TX ----------- AMLI: on Eldridge Parkway 100% Houston, TX 2004 1998/1999 668 89.4% 809 Acquisition at Kings Harbor 25% Houston, TX Developed 2001 300 93.3% 896 New at the Medical Center 100% Houston, TX 2001 2000 334 94.6% 981 Same Store Midtown 45% Houston, TX 2000 1998 419 94.3% 1,072 Same Store Towne Square 45% Houston, TX 2000 1999 380 96.1% 1,036 Same Store ------ ------ ------ ------ 2,101 7.7% 93.0% 942 ------ ------ ------ ------ Third Quarter 2004 Page 58 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED SEPTEMBER 30, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Sept. 30, 3rd Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- DENVER, CO ---------- AMLI: at Lowry Estates 50% Denver, CO 2000 2000 414 92.8% 1,021 Same Store at Gateway Park 100% Denver, CO 2000 2000 328 91.8% 876 Same Store at Park Meadows 25% Littleton, CO 2002 2001 518 93.8% 959 Same Store at Westcliff 100% Westminster, CO 2004 2003 372 89.9% 900 Acquisition ------ ------ ------ ------ 1,632 6.0% 92.3% 945 ------ ------ ------ ------ SOUTHEAST FLORIDA --------- AMLI at Ibis 100% West Palm Beach, FL 2004 2001 234 0.8% 91.0% 1,099 Acquisition ------ ------ ------ ------ TOTAL 27,328 100% 93.6% $ 893 ====== ====== ====== ====== Note: (a) Based on number of apartment homes (b) These communities were acquired from partnerships and are "Same Store" with respect to information provided on pages 34, 36, 39 and 46. Third Quarter 2004 Page 59 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY SEPTEMBER 30, 2004 (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 Started Occupancy tion ization Delivered (a) (b) ---------------- --------- ------- ------ ------- --------- ------- ------- --------- -------- ------- COMMUNITIES UNDER DEVELOPMENT DALLAS, TX ---------- AMLI at La Villita Las Colinas, TX 100% 360 3Q/04 1Q/05 3Q/05 4Q/06 0 23% NA AUSTIN, TX ---------- AMLI Downtown Austin, TX 30% 220 2Q/02 1Q/04 3Q/04 2Q/05 220 95% 51% CHICAGO, IL ----------- AMLI: at Museum Gardens Vernon Hills, IL 25% 294 2Q/03 3Q/04 1Q/05 1Q/06 85 78% 4% ----- ----- Total 874 305 ===== ===== Third Quarter 2004 Page 60 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED SEPTEMBER 30, 2004 (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 Started Occupancy tion ization Delivered (a) (b) ---------------- --------- ------- ------ ------- --------- ------- ------- --------- -------- ------- COMMUNITIES COMPLETED AND IN LEASE-UP AUSTIN, TX ---------- AMLI at Walnut Creek Austin, TX 100% 460 4Q/02 3Q/03 2Q/04 2Q/05 460 100% 77% CHICAGO, IL ----------- AMLI at Seven Bridges Woodridge, IL 20% 520 3Q/01 3Q/02 4Q/03 2Q/05 520 100% 84% --- ---- 980 980 === ==== CONSOLIDATED SERVICE COMPANY COMMUNITY SUBSTANTIALLY COMPLETED AND IN LEASE-UP INDIANAPOLIS, IN ---------------- AMLI at Old Town Carmel Carmel, IN 100% 91 1Q/03 1Q/04 3Q/04 1Q/05 91 100% 80% === === 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 2004 Page 61 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY SEPTEMBER 30, 2004 (Dollars in thousands)
At 100% Company's Share ---------------------------- ------------------------------------------------ Equity Percen- Total Total Total Total Required tage of Develop- Capit- Develop- Capit- to Owner- ment alized Cost To ment alized Cost To Total Complete Market/Community ship Costs(a) To Date Complete Costs(a) To Date Complete Equity (b) ---------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES UNDER DEVELOPMENT DALLAS, TX ---------- AMLI at La Villita 100% $ 25,575 5,881 19,694 25,575 5,881 19,694 25,575 19,694 AUSTIN, TX ---------- AMLI Downtown (c) 30% 50,920 45,010 4,614 15,276 13,503 1,384 6,000 0 CHICAGO, IL ----------- AMLI at Museum Gardens (c)(d) 25% 61,571 48,351 13,220 15,393 12,088 3,305 5,819 0 -------- -------- -------- -------- -------- -------- -------- -------- 138,066 99,242 37,528 56,244 31,472 24,383 37,394 19,694 -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES COMPLETED AND IN LEASE-UP AUSTIN, TX ---------- AMLI at Walnut Creek 100% 30,600 29,861 -- 30,600 29,861 -- 30,600 -- CHICAGO, IL ----------- AMLI at Seven Bridges (c) 20% 83,000 79,796 1,112 16,600 15,959 222 6,400 222 -------- -------- -------- -------- -------- -------- -------- -------- 113,600 109,667 1,112 47,200 45,820 222 37,000 222 -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 62 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED SEPTEMBER 30, 2004 (Dollars in thousands) At 100% Company's Share ---------------------------- ------------------------------------------------ Equity Percen- Total Total Total Total Required tage of Develop- Capit- Develop- Capit- to Owner- ment alized Cost To ment alized Cost To Total Complete Market/Community ship Costs(a) To Date Complete Costs(a) To Date Complete Equity (b) ---------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CONSOLIDATED SERVICE COMPANY COMMUNITY SUBSTANTIALLY COMPLETED AND IN LEASE-UP INDIANAPOLIS, IN ---------------- AMLI at Old Town Carmel (e) 100% 11,606 10,361 -- 11,606 10,361 -- 11,606 -- -------- -------- -------- -------- -------- -------- -------- -------- $263,272 219,260 38,640 115,050 87,653 24,605 86,000 19,916 ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) Includes costs of initial lease-up, some of which are being expensed. (b) Net of (future) mortgage proceeds and joint venture partner contributions. (c) These communities are subject to debt. All other communities are unencumbered. (d) Of this total development costs, $1,300 is anticipated to be funded from net operating income from the community during the lease-up period. (e) Includes interest and other costs capitalized in consolidation. Third Quarter 2004 Page 63 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE SEPTEMBER 30, 2004 Number of Apartment Market/Community Submarket Homes ---------------- --------- --------- AUSTIN, TX ---------- AMLI at: Anderson Mill Phase I (a) Northwest Austin 288 Anderson Mill Phase II Northwest Austin 225 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: Westwood Ridge Phase I (a) Overland Park 288 Westwood Ridge II Overland Park 132 ------ Total 1,451 ====== Note: (a) In active development planning in anticipation of start of construction in 2005. Third Quarter 2004 Page 64 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY SEPTEMBER 30, 2004 AND 2003 (Dollars in thousands)
Partner- ship of Ownership Date Number of Purchase Acquired Acquired Apartment or Sale Community Market or Sold or Sold Homes Price -------------------- -------------------- ---------- ---------- --------- --------- COMMUNITIES ACQUIRED (a) ------------------------ AMLI: at River Run Naperville, IL 100% 9/14/2004 206 $ 31,500 at Canterfield West Dundee, IL 100% 9/14/2004 352 55,350 at Westcliff Westminster, CO 100% 8/18/2004 372 43,500 on the Fairway Dallas, TX 100% 4/30/2004 322 23,405 on Eldridge Parkway Houston, TX 100% 4/15/2004 668 48,000 at Ibis West Palm Beach FL 100% 4/15/2004 234 24,675 on Timberglen Dallas, TX 60% 1/5/2004 260 6,263 -------- -------- Total 2004 2,414 232,693 -------- -------- AMLI: Knox Henderson Dallas, TX 100% 12/30/2003 180 17,900 at Oakbend Dallas, TX 60% 12/31/2003 426 14,778 at Danada Farms Wheaton, IL 90% 10/31/2003 600 63,900 at Oakhurst North Aurora, IL 75% 8/25/2003 464 37,500 on Spring Mill Carmel, IN 100% 8/25/2003 400 30,000 at Regents Crest Overland Park, KS 75% 8/14/2003 476 28,988 Creekside Overland Park, KS 75% 8/14/2003 224 13,875 at Castle Creek Indianapolis, IN 60% 8/14/2003 276 14,310 at Verandah Arlington, TX 65% 1/2/2003 538 16,612 -------- -------- Total 2003 3,584 237,863 -------- -------- 5,998 $470,556 ======== ======== Third Quarter 2004 Page 65 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY - CONTINUED SEPTEMBER 30, 2004 AND 2003 (Dollars in thousands) Partner- ship of Ownership Date Number of Purchase Acquired Acquired Apartment or Sale Community Market or Sold or Sold Homes Price -------------------- -------------------- ---------- ---------- --------- --------- COMMUNITIES SOLD (b) -------------------- AMLI: at Towne Creek Gainesville, GA 100% 9/13/2004 150 7,900 at Nantucket Dallas, TX 100% 8/17/2004 312 13,365 at Timberglen Dallas, TX 100% 8/17/2004 260 12,285 at Verandah Dallas, TX 100% 5/17/2004 538 28,300 at Spring Creek Atlanta, GA 100% 4/14/2004 1,180 80,820 at Wells Branch Austin, TX 25% 1/21/2004 576 38,400 -------- -------- Total 2004 3,016 181,070 -------- -------- AMLI: at Town Center Overland Park, KS 100% 12/29/2003 156 14,750 at Centennial Park Overland Park, KS 100% 12/29/2003 170 17,600 at Park Bridge Alpharetta, GA 25% 12/23/2003 352 33,000 at Fossil Creek Ft. Worth, TX 25% 10/15/2003 384 27,500 at Willeo Creek Roswell, GA 30% 8/21/2003 242 19,500 -------- -------- Total 2003 1,304 112,350 -------- -------- 4,320 $293,420 ======== ======== Notes: (a) The aggregate amount of NOI included in the current year from these communities at AMLI's share is $14,575. (b) The aggregate amount of NOI included in the current year from these communities at AMLI's share is $3,749. Third Quarter 2004 Page 66 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES SEPTEMBER 30, 2004 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 administrative expense, and interest, taxes, depreciation and amortization. Community operating expenses include amounts reported as personnel, advertising and promotion, utilities, building repairs and maintenance and services, landscaping and grounds maintenance, real estate taxes, insurance, property management, and other operating expenses, and such amounts as may be included in discontinued operations. Third Quarter 2004 Page 67 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED SEPTEMBER 30, 2004 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 2004 Page 68 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND FFO AND AFFO
2004 ---------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . $ 61,257 12,234 42,304 6,719 Income from discontinued operations, net of minority interest. . . . . . . . . . . . (2,898) (111) (587) (2,200) Gain on sale of rental communities, net of minority interest. . . . . . . . . . . . (48,800) (11,318) (37,482) -- Gain on sale of bond financing for a community sold, net of minority interest. . . . (4,423) -- (4,423) -- Minority interest. . . . . . . . . . . . . . . . (15) (76) (142) 203 ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . 5,121 729 (330) 4,722 Income from discontinued operations before minority interest. . . . . . . . . . . . 3,119 118 626 2,374 Discontinued operations - gain on sale of bond financing . . . . . . . . . . . . . . . 4,723 -- 4,723 -- Discontinued operations - write-off of unamortized deferred financing . . . . . . . -- -- -- -- Depreciation (a) . . . . . . . . . . . . . . . . 28,166 10,058 9,468 8,640 Share of co-investment partnerships' depreciation. . . . . . . . . . . . . . . . . . 7,871 2,671 2,610 2,590 Share of gains on sales of operating communities . . . . . . . . . . . . . . . . . . (2,648) -- -- (2,648) ---------- ---------- ---------- ---------- ---------- FFO. . . . . . . . . . . . . . . . . . . . . . . 46,351 13,576 17,097 15,678 ========== ========== ========== ========== ========== Capital expenditures paid from FFO . . . . . . . (3,525) (1,453) (1,168) (904) Share of co-investment partnerships' capital expenditures. . . . . . . . . . . . . . (717) (270) (259) (188) ---------- ---------- ---------- ---------- ---------- AFFO . . . . . . . . . . . . . . . . . . . . . . $ 42,109 11,853 15,670 14,586 ========== ========== ========== ========== ========== Weighted average shares and units including dilutive shares . . . . . . . . . . . 30,164,408 31,168,376 31,026,552 27,918,813 ========== ========== ========== ========== ========== (a) Includes discontinued operations of -. . . . 531 41 222 268 ========== ========== ========== ========== ========== Third Quarter 2004 Page 69 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND FFO AND AFFO 2003 ---------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . $ 26,104 13,533 5,935 2,928 3,708 Income from discontinued operations, net of minority interest. . . . . . . . . . . . (4,083) (1,327) (381) (1,122) (1,253) Gain on sale of rental communities, net of minority interest. . . . . . . . . . . . (5,113) (5,113) -- -- -- Gain on sale of bond financing for a community sold, net of minority interest. . . . -- -- -- -- -- Minority interest. . . . . . . . . . . . . . . . 1,330 575 690 (37) 102 ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . 18,238 7,668 6,244 1,769 2,557 Income from discontinued operations before minority interest. . . . . . . . . . . . 4,816 1,478 455 1,360 1,523 Discontinued operations - gain on sale of bond financing . . . . . . . . . . . . . . . -- -- -- -- -- Discontinued operations - write-off of unamortized deferred financing . . . . . . . -- -- -- -- -- Depreciation (a) . . . . . . . . . . . . . . . . 25,608 7,534 7,011 5,545 5,518 Share of co-investment partnerships' depreciation. . . . . . . . . . . . . . . . . . 11,837 2,670 2,933 3,115 3,119 Share of gains on sales of operating communities . . . . . . . . . . . . . . . . . . (6,284) (4,325) (1,959) -- -- ---------- ---------- ---------- ---------- ---------- FFO. . . . . . . . . . . . . . . . . . . . . . . 54,215 15,025 14,684 11,789 12,717 ========== ========== ========== ========== ========== Capital expenditures paid from FFO . . . . . . . (3,860) (842) (1,100) (834) (1,084) Share of co-investment partnerships' capital expenditures. . . . . . . . . . . . . . (1,182) (230) (331) (396) (225) ---------- ---------- ---------- ---------- ---------- AFFO . . . . . . . . . . . . . . . . . . . . . . $ 49,173 13,953 13,253 10,559 11,408 ========== ========== ========== ========== ========== Weighted average shares and units including dilutive shares . . . . . . . . . . . 25,457,423 27,190,261 25,899,548 24,437,213 24,314,266 ========== ========== ========== ========== ========== (a) Includes discontinued operations of -. . . . 3,852 462 1,499 947 944 ========== ========== ========== ========== ========== Third Quarter 2004 Page 70 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . .$ 61,257 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Minority interest. . . (15) (76) (142) 203 1,330 575 690 (37) 102 Income from discon- tinued operations, net of minority interest. . . . . . . (2,898) (111) (587) (2,200) (4,083) (1,327) (381) (1,122) (1,253) Gain on sale of rental communities, net of minority interest. . . . . . . (48,800) (11,318) (37,482) -- (5,113) (5,113) -- -- -- Gain on sale of bond financing for a community sold, net of minority interest. . . . . . . (4,423) -- (4,423) -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE MINORITY INTEREST . . 5,121 729 (330) 4,722 18,238 7,668 6,244 1,769 2,557 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 71 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from partnerships. . . . . (2,549) (616) (430) (1,503) (5,831) (1,596) (1,309) (1,469) (1,457) Interest and amortization of deferred financing costs . . . 21,640 7,701 7,035 6,904 23,340 6,183 5,808 5,551 5,798 Prepayment penalty and write-off of unamortized deferred financing costs . . . . . . . . 1,121 -- 1,121 -- -- -- -- -- -- Depreciation . . . . . 27,635 10,017 9,246 8,372 21,756 7,072 5,512 4,598 4,574 Fee income from unconsolidated partnerships. . . . . (1,493) (636) (424) (433) (2,357) (557) (832) (512) (456) Other income . . . . . (1,115) (207) (429) (479) (1,039) (87) (568) (188) (196) Service Companies' operations. . . . . . 1,445 432 533 480 (126) 312 (729) 249 42 General and administrative. . . . 4,860 871 1,793 2,196 5,910 1,255 1,605 1,310 1,740 Provision for loss on land held for development or sale . 150 150 -- -- 150 150 -- -- -- Share of gains on sales of partnerships' properties. . . . . . (2,648) -- -- (2,648) (6,284) (4,325) (1,959) -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- 1,191 -- -- 1,191 -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NOI FROM CONTINUING OPERATIONS. . . . . . 54,167 18,441 18,115 17,611 54,948 16,075 13,772 12,499 12,602 NOI FROM DISCONTINUED OPERATIONS. . . . . . 3,719 143 890 2,686 11,551 2,699 2,682 3,009 3,161 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CONSOLIDATED NOI . . .$ 57,886 18,584 19,005 20,297 66,499 18,774 16,454 15,508 15,763 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 72 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND CONSOLIDATED NOI 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMPONENTS OF NOI Same store communities . . . . .$ 34,944 11,417 11,281 12,246 49,729 11,740 11,636 11,784 14,569 Acquired from/ contributed to partnerships. . . . . 12,899 4,385 4,291 4,223 4,804 3,442 1,362 -- -- New communities. . . . 1,099 203 466 430 972 429 357 186 -- Development and/ or lease-up communities . . . . . -- -- -- -- 14 1 -- (1) 14 Acquisition communities . . . . . 3,981 2,064 1,671 246 17 17 -- -- -- Communities under rehab . . . . . . . . 1,245 372 406 467 1,997 448 417 530 602 Communities sold . . . 3,720 143 890 2,685 8,966 2,697 2,682 3,009 578 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . .$ 57,886 18,584 19,005 20,297 66,499 18,774 16,454 15,508 15,763 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 73 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND COMBINED NOI
2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . .$ 61,257 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Minority interest. . . (15) (76) (142) 203 1,330 575 690 (37) 102 Income from discon- tinued operations, net of minority interest. . . . . . . (2,898) (111) (587) (2,200) (4,083) (1,327) (381) (1,122) (1,253) Gain on sale of rental communities, net of minority interest. . . . . . . (48,800) (11,318) (37,482) -- (5,113) (5,113) -- -- -- Gain on sale of bond financing for a community sold, net of minority interest. . . . . . . (4,423) -- (4,423) -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST . . 5,121 729 (330) 4,722 18,238 7,668 6,244 1,769 2,557 Third Quarter 2004 Page 74 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND COMBINED NOI 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Interest and amorti- zation of deferred financing costs . . . 21,640 7,701 7,035 6,904 23,340 6,183 5,808 5,551 5,798 Prepayment penalty and write-off of unamortized deferred financing costs . . . 1,121 -- 1,121 -- -- -- -- -- -- Share of partnerships' interest and amorti- zation of deferred financing costs . . . 11,402 3,829 3,797 3,776 15,588 3,966 3,926 3,896 3,800 Depreciation . . . . . 27,635 10,017 9,246 8,372 21,756 7,072 5,512 4,598 4,574 Share of partnerships' depreciation. . . . . 7,871 2,671 2,610 2,590 11,839 2,670 2,935 3,115 3,119 Share of partnerships' cash flow in excess of its ownership interests, net of other expenses. . . . (1,632) (352) (272) (1,008) (1,660) (668) (266) (351) (375) Fee income from unconsolidated partnerships. . . . . (1,493) (636) (424) (433) (2,357) (557) (832) (512) (456) Other income . . . . . (1,089) (179) (432) (478) (1,039) (87) (569) (188) (194) Service Companies' operations. . . . . . 1,445 432 533 480 (126) 312 (729) 249 42 General and administrative. . . . 4,860 871 1,793 2,196 5,910 1,255 1,605 1,310 1,740 Provision for loss on land held for development or sale . 150 150 -- -- 150 150 -- -- -- Share of gains on sales of partner- ships' properties . . (2,648) -- -- (2,648) (6,284) (4,325) (1,959) -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- 1,191 -- -- 1,191 -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Third Quarter 2004 Page 75 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED QUARTER AND YEAR ENDED (Dollars in thousands) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES RECONCILIATION BETWEEN NET INCOME AND COMBINED NOI 2004 2003 -------------------------------------------- -------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 Year Dec 31 Sep 30 June 30 Mar 31 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NOI FROM CONTINUING OPERATIONS. . . . . . 74,387 25,236 24,678 24,473 86,546 23,639 21,675 20,627 20,605 NOI FROM DISCON- TINUED OPERATIONS . . 3,719 142 892 2,685 11,547 2,698 2,683 3,007 3,159 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMBINED NOI . . . . .$ 78,106 25,378 25,570 27,158 98,094 26,337 24,358 23,635 23,764 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== COMPONENTS OF NOI Same store communities . . . . .$ 53,091 17,495 17,175 18,421 71,962 17,880 17,898 18,008 18,176 Acquired from/ contributed to partnerships. . . . . 12,912 4,385 4,287 4,240 7,819 3,809 2,001 995 1,014 New communities. . . . 2,897 825 1,064 1,008 2,888 1,083 886 590 329 Development and/ or lease-up communities . . . . . 225 94 77 54 113 87 40 7 (21) Acquisition communities . . . . . 3,981 2,064 1,671 246 17 17 -- -- -- Communities under rehab . . . . . . . . 1,246 373 406 467 1,996 448 417 529 602 Communities sold . . . 3,754 142 890 2,722 13,299 3,014 3,116 3,506 3,664 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL. . . . . . . . . 78,106 25,378 25,570 27,158 98,094 26,337 24,358 23,635 23,764 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Share of partnerships' cash flow in excess of the Company's ownership interests, net of other expenses. . . . . . . 1,631 351 272 1,008 1,660 668 266 351 375 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- COMPANY'S SHARE OF COMMUNITIES EBITDA. . . . . . . .$ 79,737 25,729 25,842 28,166 99,754 27,005 24,624 23,986 24,139 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Third Quarter 2004 Page 76 Supplemental Information AMLI Residential Properties Trust