EX-99.2 3 exh_992.txt EXHIBIT 99.2 ------------ AMLI RESIDENTIAL ------------------------------------------------------------ FOURTH QUARTER 2004 SUPPLEMENTAL OPERATING AND FINANCIAL DATA ------------------------------------------------------------ [ graphics indicating property / caption reading "AMLI at Kirkland Crossing -- Aurora, IL Acquired Fourth 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 . . . . . . . . . . 6 Funds From Operations. . . . . . . . . . . . . . . . . . . . . . 14 Statements of Operations . . . . . . . . . . . . . . . . . . . . 16 Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . 19 DEBT AND PREFERRED SHARES Debt and Preferred Shares Summary. . . . . . . . . . . . . . . . 22 Debt Maturities. . . . . . . . . . . . . . . . . . . . . . . . . 25 SAME STORE AND NOI DATA Quarterly Comparison of Same Store Communities . . . . . . . . . 27 Quarterly Comparison of Components of NOI. . . . . . . . . . . . 39 OTHER DATA Co-Investment Compensation . . . . . . . . . . . . . . . . . . . 45 Service Companies Financial Information. . . . . . . . . . . . . 46 PORTFOLIO Stabilized Communities . . . . . . . . . . . . . . . . . . . . . 50 Development Summary. . . . . . . . . . . . . . . . . . . . . . . 56 Land Held for Development or Sale. . . . . . . . . . . . . . . . 60 Acquisition and Disposition Summary. . . . . . . . . . . . . . . 61 NON-GAAP FINANCIAL MEASURES Definition of Non-GAAP Financial Measures. . . . . . . . . . . . 63 Reconciliation Between Net Income and FFO and AFFO . . . . . . . 65 Reconciliation Between Net Income and Consolidated NOI . . . . . 67 Fourth 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 Fourth 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 --------------------- February 1, 2005 For More Information, Contact: Robert J. Chapman, Chief Financial Officer (312) 984-6845 AMLI RESIDENTIAL ANNOUNCES FOURTH QUARTER AND FULL-YEAR OPERATING RESULTS AND DECLARES DIVIDEND (CHICAGO, IL) AMLI RESIDENTIAL PROPERTIES TRUST (NYSE: AML) announces today operating results for the fourth quarter and full year ended December 31, 2004. EARNINGS -------- Net income for the quarter and year ended December 31, 2004 was $1,168,000 and $62,425,000 respectively, as compared to $13,533,000 and $26,104,000, respectively, in the year earlier periods. Diluted Earnings Per Share ("EPS") for the quarter ended December 31, 2004 was ($0.03), compared to $0.54 for the same period a year earlier. For the year ended December 31, 2004, EPS was $2.05, compared to $0.98 for the comparable period of 2003. The changes in net income and EPS between periods are primarily the result of (i) the differences in the amount of reportable gains on sales due to the volume and timing of disposition activity (ii) additional depreciation expense in 2004, particularly in the fourth quarter, due to the amortization associated with the accounting for in-place leases related to the purchase of apartment communities; and (iii) allocations of earnings to the Company's preferred shareholders in accordance with a new accounting pronouncement adopted in the second quarter of 2004. Funds From Operations ("FFO") for the fourth quarter of 2004 were $14,295,000, or $0.46 per common share, compared to $15,025,000, or $0.55 per common share, for the fourth quarter of 2003, a per share decrease of 16.4%. Actual results for the quarter were consistent with AMLI's most recent guidance and equal to First Call's most recent estimate. The year over year change in FFO per share is attributable to a number of factors including significantly higher general and administrative costs primarily relating to audit compliance with Section 404 of The Sarbanes-Oxley Act of 2002 and higher interest costs as the Company converted a portion of its short-term floating rate debt to longer-term fixed rates in 2004. FFO for the year ended December 31, 2004 was $60,646,000, or $2.01 per share, compared to $54,215,000, or $2.12 per share, for the year ended December 31, 2003, a per share decrease of 5.2%. Much of the FFO per share decrease for the full year 2004 compared to the full year 2003 is attributable to the same factors that influenced the comparison between the fourth quarters of 2004 and 2003. In addition, FFO per share reflected additional dilution caused by investing more slowly than originally anticipated the proceeds of the Company's first quarter public common share offering. Fourth Quarter 2004 Page 2 Supplemental Information AMLI Residential Properties Trust "2004 was a positive year of transition for AMLI as we successfully executed our strategic plan," commented Gregory T. Mutz, AMLI Chairman and CEO. "We improved the overall quality of our portfolio by moving aggressively on our "B to A" investment strategy, diversifying the source of community NOI within our existing markets and adding a new market, Southeast Florida, our ninth. On the balance sheet front, we locked in long term financing at low interest rates and we reduced leverage." Mr. Mutz continued, "With respect to community operations, we maintained a high level of occupancy and very stable rental rates throughout the year. AMLI has an excellent foundation on which to build as economic conditions continue to improve." FOURTH QUARTER ACTIVITIES ------------------------- In October, AMLI completed the purchase of AMLI at Kirkland Crossing (formerly the Preserve at Kirkland Crossing), a 266-unit apartment community in Aurora, Illinois. In November, AMLI acquired the 75% interests that it did not already own in AMLI at Wynnewood Farms (Overland Park, Kansas) and AMLI at Lake Clearwater (Indianapolis, Indiana) from the New York State Common Retirement Fund, a large public pension plan advised by Heitman Capital Management, LLC. In December, AMLI closed on a $110 million unsecured loan with a bank group that includes Wells Fargo Bank, N.A., as Administrative Agent, PNC Bank National Association, Commerzbank AG, and Comerica Bank. AMLI also entered into interest rate swap agreements for the period July 1, 2005 through December 20, 2009 effectively fixing the interest rate on $100 million of the variable-rate term loan at a rate of 3.99% plus the loan spread, or 4.99%. SAME COMMUNITY RESULTS ---------------------- On a combined same community basis, which includes both wholly-owned and co-investment communities (at 100%), for the quarter ended December 31, 2004 versus the prior year's comparable quarter, total community revenue increased 0.5% (reflecting an increase in weighted average occupancy of 0.5% to 93.6% and weighted average collected revenue per occupied unit decreased slightly by 0.1%), operating expenses increased 0.5%, and net operating income ("NOI") increased 0.5%. Comparing the fourth quarter of 2004 to the preceding quarter, total community revenue decreased by 1.7% (reflecting a decrease in weighted average occupancy of 0.4% and a decrease in weighted average collected revenue per occupied unit of 1.3%), operating expenses decreased 6.9%, and NOI increased 2.2%. The sequential decrease in revenue was the first after four consecutive quarterly increases, in part reflecting traditional seasonal adjustments that typical occur late each year. For the full year 2004, total community revenue, operating expenses and net operating income decreased 0.2%, increased 1.0% and decreased 1.0%, respectively, compared to the full year 2003, consistent with AMLI's full year 2004 guidance in December 2003. SUBSEQUENT EVENTS ----------------- In January, AMLI purchased AMLI at Lantana Hills (formerly the Hills of Lantana) in Austin, Texas and sold AMLI at Chase Oaks in Dallas, Texas. OUTLOOK ------- AMLI's current expectation for full year 2005 FFO per share is in the range of $1.94 to $2.10 per share (generally plus or minus $0.02 per share per quarter based on current mid-range estimates of $0.43, $0.51, $0.53 and $0.55 per share per quarter and a mid-point of $2.02 per share). Fourth Quarter 2004 Page 3 Supplemental Information AMLI Residential Properties Trust The following chart reconciles AMLI's 2005 FFO per share guidance to EPS: Full Q1 Q2 Q3 Q4 Year ------ ------ ------ ------ ------ EPS per Common Share $0.73 $0.02 $0.17 $1.80 $2.71 Gains on Sales ($0.83) ($0.02) ($0.10) ($1.68) ($2.62) Depreciation $0.45 $0.45 $0.40 $0.35 $1.64 Adjustment for Preferred Shares $0.08 $0.06 $0.06 $0.08 $0.29 FFO per Share $0.43 $0.51 $0.53 $0.55 $2.02 DIVIDEND -------- Yesterday, the Board of Trustees declared a quarterly dividend of $0.48 per common share. This dividend is payable on February 22, 2005 to all common shareholders of record as of February 11, 2005 and is based on an annual dividend rate of $1.92 per common share. CONFERENCE CALL --------------- AMLI will hold a conference call on Wednesday, February 2, 2005 at 3:30 p.m. Eastern Time. The toll-free number for the call is (800) 946-0706 - 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 (http://www.amli.com/comp/) and at http://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 Fourth Quarter Supplemental Information is available in the 'Company Info' section on our website (http://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 and 19. 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 administrative expense. Fourth Quarter 2004 Page 4 Supplemental Information AMLI Residential Properties Trust 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 from sales of communities, plus depreciation and amortization, and after adjustments for unconsolidated partnerships, joint ventures and affiliates." Additional definitions can be found in the Quarterly Supplemental Information. ABOUT AMLI ---------- The AMLI portfolio currently includes 74 apartment communities containing 27,608 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 http://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. # # # # Fourth Quarter 2004 Page 5 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) . . . . . .$109,978 27,360 25,472 30,092 27,054 98,513 26,347 26,139 22,413 23,614 FFO. . . . . . . . . . 60,646 14,295 13,576 17,097 15,678 54,215 15,025 14,684 11,789 12,717 AFFO . . . . . . . . . 54,343 12,234 11,853 15,670 14,586 49,173 13,953 13,253 10,559 11,408 Net income . . . . . . 62,425 1,168 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Dividends (b). . . . . 57,747 14,909 14,880 14,846 13,112 48,288 13,010 11,787 11,758 11,733 PER SHARE DATA - DILUTED ---------------- FFO. . . . . . . . . .$ 2.01 $ 0.46 $ 0.44 $ 0.55 $ 0.56 $ 2.12 $ 0.55 $ 0.57 $ 0.48 $ 0.52 AFFO . . . . . . . . . 1.80 $ 0.39 0.38 0.51 0.52 1.92 0.51 0.51 0.43 0.47 Net income allocable to common shares . . 2.05 $ (0.03) 0.40 1.44 0.21 0.98 0.54 0.21 0.06 0.10 Common dividends . . . 1.92 $ 0.48 0.48 0.48 0.48 1.92 0.48 0.48 0.48 0.48 FFO payout ratio (based on per share amounts) . . . . . . 96% 105% 110% 87% 85% 91% 87% 84% 100% 92% AFFO payout ratio (based on per share amounts) . . . . . . 107% 123% 126% 95% 92% 100% 94% 94% 111% 102% Fourth Quarter 2004 Page 6 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 . . . . . 15,990 15,990 15,276 15,068 15,240 14,980 14,980 14,100 12,260 12,260 Partnerships . . . . . 11,604 11,604 12,052 12,052 12,052 12,427 12,427 14,189 16,271 15,573 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 27,594 27,594 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 . . . . . 820 820 820 820 782 322 322 322 322 322 Partnerships . . . . . 1,034 1,034 1,034 1,034 1,034 1,495 1,495 1,495 1,495 1,919 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,854 1,854 1,854 1,854 1,816 1,817 1,817 1,817 1,817 2,241 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . . 29,448 29,448 29,182 28,974 29,108 29,224 29,224 30,106 30,348 30,074 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== See notes on following pages Fourth Quarter 2004 Page 7 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) . . . . . . . . . . . . . . $ 1,473,951 1,473,951 1,393,026 1,285,143 1,284,825 DEBT Consolidated . . . . . . . . . . . . . . . . 653,901 653,901 576,477 476,449 496,583 SHARE INFORMATION Common shares outstanding. . . . . . . . . . 25,525,564 25,525,564 25,405,377 25,341,652 25,289,725 Preferred shares outstanding (d) . . . . . . 3,925,000 3,925,000 3,925,000 3,925,000 3,925,000 Operating partnership units outstanding (e) . . . . . . . . . . . . . . 1,639,481 1,639,481 1,684,336 1,707,118 1,715,394 ----------- ----------- ----------- ----------- ----------- Total shares and units outstanding . . . 31,090,045 31,090,045 31,014,713 30,973,770 30,930,119 ----------- ----------- ----------- ----------- ----------- Average Common Shares. . . . . . . . . . . . 24,563,094 25,462,780 25,386,897 25,306,317 22,077,441 Average Common and Preferred Shares and OP Units. . . . . . . . . . . . . . . . 30,199,707 31,057,256 30,998,529 30,941,004 27,783,836 ----------- ----------- ----------- ----------- ----------- Share price, end of period . . . . . . . . . $ 32.00 $ 32.00 $ 31.55 $ 29.34 $ 28.25 Equity Market Capitalization . . . . . . . . 994,881 994,881 978,514 908,770 873,776 TOTAL MARKET CAPITALIZATION Consolidated . . . . . . . . . . . . . . . . 1,648,783 1,648,783 1,554,991 1,385,219 1,370,359 Fourth Quarter 2004 Page 8 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 DEBT Consolidated . . . . . . . . . . . . . . . . 610,513 610,513 522,672 462,781 457,950 SHARE INFORMATION Common shares outstanding. . . . . . . . . . 21,394,568 21,394,568 19,503,207 16,928,640 16,787,100 Preferred shares outstanding (d) . . . . . . 4,025,000 4,025,000 4,025,000 4,025,000 4,025,000 Operating partnership units outstanding (e) . . . . . . . . . . . . . . 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. . . . . . . . . . . . . . . . 25,424,793 27,068,961 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 Fourth 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) 2004 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (f) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . $ 33,222 8,713 7,701 9,551 7,257 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . . 1,260 239 260 296 465 SCHEDULED PRINCIPAL PAYMENTS (NORMAL AMORTIZATION) Consolidated . . . . . . . . . . . . . . . . 5,626 1,676 1,472 1,271 1,207 Fourth 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) 2003 --------------------------------------------------------------- Year Dec 31 Sep 30 Jun 30 Mar 31 ----------- ----------- ----------- ----------- ----------- DEBT SERVICE (f) ---------------- INTEREST EXPENSE AND AMORTIZATION OF DEFERRED FINANCING COSTS Consolidated . . . . . . . . . . . . . . . . 26,224 6,941 6,537 6,254 6,492 CAPITALIZED INTEREST Consolidated. . . . . . . . . . . . . . . . 2,054 521 498 643 392 SCHEDULED PRINCIPAL PAYMENTS (NORMAL AMORTIZATION) Consolidated . . . . . . . . . . . . . . . . 3,967 1,004 1,043 968 952 See notes on following pages Fourth Quarter 2004 Page 11 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 (h) Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- OPERATIONAL RATIOS ------------------ EBITDA, AS PERCENT OF TOTAL MARKET CAPITALIZATION Consolidated . . . . . . 6.6% 6.6% 8.5% 7.9% 7.9% 8.5% 8.6% 9.7% INTEREST COVERAGE Consolidated . . . . . . 3.3 3.4 4.1 3.9 4.0 4.2 3.8 3.8 FIXED CHARGE COVERAGE (g) Consolidated . . . . . . 2.3 2.3 2.9 2.7 2.7 2.8 2.5 2.6 FINANCIAL RATIOS ---------------- DEBT TO TOTAL MARKET CAPITALIZATION Consolidated . . . . . . 39.7% 37.1% 34.4% 36.2% 45.6% 42.5% 44.5% 47.2% DEBT TO TOTAL ASSETS, AT COST (before depreciation) Consolidated . . . . . . 44.4% 41.4% 37.1% 38.6% 46.8% 43.3% 42.7% 42.5% Fourth Quarter 2004 Page 12 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 14. (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 preferred shares are convertible to common shares at the option of the holder. All preferred shares are redeemable by AMLI starting in 2007. (e) Represents Minority Interest on the Company's Consolidated Balance Sheets. (f) Includes amortization of deferred and other financing costs, prepayment penalty and interest and amortization attributable to discontinued operations. (g) Includes interest expense, principal amortization and preferred dividends. Information for 2003 has been re-stated to include principal amortization previously excluded. (h) 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. Fourth Quarter 2004 Page 13 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). . . . . .$108,727 28,990 25,729 25,842 28,166 99,754 27,005 24,624 23,986 24,139 Share of Service Companies' EBITDA/ FFO (b). . . . . . . (202) 217 (96) (210) (113) 2,614 103 1,720 228 563 Other income . . . . . 1,680 263 224 429 764 1,039 87 568 188 196 Co-investment fee income (c). . . . . . 1,824 331 636 424 433 2,357 557 832 512 456 General and administrative. . . . (7,301) (2,441) (871) (1,793) (2,196) (5,910) (1,255) (1,605) (1,310) (1,740) Discontinued opera- tions - gain on sale of bond financing . . 5,400 -- -- 5,400 -- -- -- -- -- -- Non-cash impairment loss. . . . . . . . . (150) -- (150) -- -- (1,341) (150) -- (1,191) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA). . . . . . . 109,978 27,360 25,472 30,092 27,054 98,513 26,347 26,139 22,413 23,614 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INTEREST EXPENSE (d) Wholly-owned communities and portfolio debt. . . . (31,425) (8,713) (7,701) (7,754) (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 . . . . . (15,338) (3,906) (3,859) (3,797) (3,776) (15,588) (3,966) (3,927) (3,894) (3,801) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (47,884) (12,619) (11,560) (12,672) (11,033) (41,810) (10,907) (10,464) (10,147) (10,292) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Fourth Quarter 2004 Page 14 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 (b) Taxes. . . . . . . . 1,782 246 520 522 494 636 391 (213) 303 155 Depreciation and amortization. . . . (3,230) (692) (856) (845) (837) (3,124) (806) (778) (780) (760) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,448) (446) (336) (323) (343) (2,488) (415) (991) (477) (605) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- FUNDS FROM OPERATIONS (FF0). . . 60,646 14,295 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 . . . . . (5,346) (1,821) (1,453) (1,168) (904) (3,860) (842) (1,100) (834) (1,084) Share of partnership communities . . . . . (957) (240) (270) (259) (188) (1,182) (230) (331) (396) (225) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (6,303) (2,061) (1,723) (1,427) (1,092) (5,042) (1,072) (1,431) (1,230) (1,309) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- ADJUSTED FUNDS FROM OPERATIONS (AFFO) . .$ 54,343 12,234 11,853 15,670 14,586 49,173 13,953 13,253 10,559 11,408 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Notes: (a) See page 39. (b) See footnote on page 46. (c) See page 45. (d) Includes amortization of deferred and other financing costs. (e) For details, refer to the Company's Management Discussion and Analysis in the relevant Form 10-K or Form 10-Q filed with SEC. Fourth Quarter 2004 Page 15 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. . . . . . . .$117,523 33,203 30,265 28,425 25,630 81,951 24,008 21,046 18,494 18,403 Other . . . . . . . . 9,377 2,442 2,544 2,381 2,010 6,309 1,785 1,751 1,521 1,252 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 126,900 35,645 32,809 30,806 27,640 88,260 25,793 22,797 20,015 19,655 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Expenses: Rental. . . . . . . . 56,060 15,304 15,557 13,887 11,312 38,281 10,985 10,223 8,771 8,302 Depreciation. . . . . 36,617 10,312 9,574 8,803 7,928 19,989 6,632 5,073 4,157 4,127 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 92,677 25,616 25,131 22,690 19,240 58,270 17,617 15,296 12,928 12,429 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 34,223 10,029 7,678 8,116 8,400 29,990 8,176 7,501 7,087 7,226 Income from partnerships (b) . . 3,435 886 616 430 1,503 5,831 1,596 1,309 1,469 1,457 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Income from rental operations. . . . . . 37,658 10,915 8,294 8,546 9,903 35,821 9,772 8,810 8,556 8,683 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OTHER INCOME AND EXPENSES Fee income from unconsolidated partnerships . . . . 1,824 331 636 424 433 2,357 557 832 512 456 Other income. . . . . 1,378 263 207 429 479 1,037 86 567 189 195 Interest and amorti- zation of deferred financing costs. . . (30,353) (8,713) (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) -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (28,272) (8,119) (6,858) (7,303) (5,992) (19,946) (5,540) (4,409) (4,850) (5,147) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Fourth Quarter 2004 Page 16 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 . . . . 46,084 9,052 11,586 11,866 13,580 70,962 15,997 19,017 13,882 22,066 Total expenses. . . . (47,945) (9,405) (12,123) (12,393) (14,024) (70,836) (16,309) (18,288) (14,131) (22,108) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (1,861) (353) (537) (527) (444) 126 (312) 729 (249) (42) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- General and administrative. . . . (7,301) (2,441) (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) -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE SHARE OF GAINS ON SALES OF PROPERTIES . . . . 74 2 (122) (1,077) 1,271 9,941 2,515 3,525 2,147 1,754 Share of gain on sale of a partner- ship's properties . . 2,648 -- -- -- 2,648 6,284 4,325 1,959 -- -- Impairment of an investment in a partnership . . . . . -- -- -- -- -- (1,191) -- -- (1,191) -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERA- TIONS BEFORE MINORITY INTEREST . . 2,722 2 (122) (1,077) 3,919 15,034 6,840 5,484 956 1,754 Minority interest. . . (294) (119) (129) (190) 144 839 491 567 (179) (40) -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS. . . . . . 3,016 121 7 (887) 3,775 14,195 6,349 4,917 1,135 1,794 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Fourth 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 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- INCOME FROM DISCON- TINUED OPERATIONS, NET OF MINORITY INTEREST Income from discon- tinued operations, net of minority interest. . . . . . . 6,137 998 909 1,286 2,944 6,796 2,071 1,018 1,793 1,914 Gain on sale of rental communities, net of minority interest. . . . . . . 48,849 49 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 -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 59,409 1,047 12,227 43,191 2,944 11,909 7,184 1,018 1,793 1,914 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME . . . . . . 62,425 1,168 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Net income attribu- table to preferred shares. . . . . . . . 11,542 1,933 1,933 5,744 1,932 8,145 2,203 1,981 1,980 1,981 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME ATTRIBU- TABLE TO COMMON SHARES. . . . . . . .$ 50,883 (765) 10,301 36,560 4,787 17,959 11,330 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. Fourth Quarter 2004 Page 18 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. . . . . . . . . .$ 164,422 161,838 143,793 133,298 128,301 125,222 105,098 100,966 Depreciable property. . 1,031,546 1,017,150 910,267 840,363 805,130 810,666 677,232 653,002 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,195,968 1,178,988 1,054,060 973,661 933,431 935,888 782,330 753,968 Less: Accumulated depreciation. . . . . . (136,168) (139,925) (130,897) (125,470) (116,830) (138,343) (131,332) (125,786) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- 1,059,800 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). . . . 60,161 -- 14,138 61,893 61,826 -- -- -- Rental apartments under development . . . 10,331 16,242 13,030 8,396 34,618 29,620 20,434 38,428 Land and predevelopment costs . . . . . . . . . 33,228 26,480 27,539 27,813 27,501 25,466 25,420 27,028 Investments in partnerships (c). . . . 124,354 132,787 133,641 140,546 147,291 169,363 193,244 193,356 Cash and cash equivalents. . . . 5,118 4,038 3,717 6,961 5,937 6,090 5,357 5,927 Service Companies' other assets. . . . . . 17,259 19,044 21,380 22,419 21,858 24,488 28,728 30,497 Other assets and deferred costs, net (d) . . . . . . . . 13,172 15,447 13,597 19,145 47,702 16,615 29,366 27,275 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL ASSETS . . . .$1,323,423 1,253,101 1,150,205 1,135,364 1,163,334 1,069,187 953,547 950,693 ========== ========== ========== ========== ========== ========== ========== ========== Fourth Quarter 2004 Page 19 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands) 2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- LIABILITIES Debt . . . . . . . . . .$ 653,901 576,477 476,449 496,583 610,513 522,672 462,781 457,950 Distributions in excess of investments in and earnings from partnerships. . . . . . 6,368 6,243 6,126 6,022 6,184 6,175 5,969 5,822 Accrued expenses and other liabilities . . . 42,758 37,970 32,841 30,755 38,174 38,069 35,497 32,168 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES . . 703,027 620,690 515,416 533,360 654,871 566,916 504,247 495,940 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Mandatorily redeemable convertible preferred shares. . . . . . . . . 96,933 96,933 96,933 93,247 93,247 93,247 93,247 93,247 Minority interest. . . . 31,939 33,650 34,286 32,308 31,203 61,718 61,579 63,198 Total shareholders' equity. . . . . . . . . 491,524 501,828 503,570 476,449 384,013 347,306 294,474 298,308 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . . .$1,323,423 1,253,101 1,150,205 1,135,364 1,163,334 1,069,187 953,547 950,693 ========== ========== ========== ========== ========== ========== ========== ========== Notes: (a) All references to "Consolidated" refer to disclosures that are derived from numbers directly on the Company's consolidated financial statements, which are prepared in accordance with GAAP and reflect the Company's interest in unconsolidated partnerships on the equity method. Fourth Quarter 2004 Page 20 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL CONSOLIDATED (a) BALANCE SHEETS - CONTINUED (Unaudited, dollars in thousands)
2004 2003 ------------------------------------------ ------------------------------------------ Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (b) Net of accumulated depreciation of: . .$ 14,360 -- 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 . . . .$ 3,385 3,161 2,989 5,463 6,094 5,887 4,982 3,877 Deferred development costs. . . . . . . 750 801 718 3,556 4,123 4,053 3,738 4,780 Operating receiva- bles and prepaid expenses . . . . . 2,594 2,745 2,587 3,034 3,530 1,989 2,340 3,007 Deposits and restricted cash. . 2,545 3,311 2,546 2,938 2,248 2,420 2,179 2,166 Notes receivable. . 2,425 3,515 2,766 2,766 30,112 1,874 10,960 11,168 Advances to affiliates . . . . 186 827 291 301 576 (287) 4,655 1,524 Other . . . . . . . 1,287 1,087 1,700 1,087 1,019 679 512 753 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 13,172 15,447 13,597 19,145 47,702 16,615 29,366 27,275 ========== ========== ========== ========== ========== ========== ========== ========== Fourth Quarter 2004 Page 21 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY DECEMBER 31, 2004 (Unaudited, dollars in thousands)
CONSOLIDATED DEBT (a) --------------------- Weighted Average Years to Type of Percent Interest Maturity Variable of Indebtedness Balance of Total Rate (b) (c) Secured Unsecured Fixed(d) (d) --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages. . . . . . $398,401 60.9% 6.2% 4.7 398,401 -- 398,401 -- Construction financing. . . . . . -- 0% 0% 0.0 -- -- -- -- Tax-exempt debt. . . . 9,500 1.5% 2.6% 1.0 -- 9,500 -- 9,500 Credit facilities (e). 236,000 36.1% 3.9% 2.6 -- 236,000 160,000 76,000 Other (f). . . . . . . 10,000 1.5% 1.9% 0.0 -- 10,000 -- 10,000 -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $653,901 100.0% 5.3% 3.8 398,401 255,500 558,401 95,500 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 60.9% 39.1% 85.4% 14.6% ======= ======= ======= ======= DEBT OF CO-INVESTMENT PARTNERSHIPS AT 100% ------------------------------------------ Weighted Average Years to Type of Percent Interest Maturity of Indebtedness Balance of Total Rate (b) (c) Secured Unsecured Fixed Variable --------------- -------- -------- -------- -------- -------- --------- -------- -------- Conventional mortgages. . . . . . $562,095 91.2% 7.0% 5.4 562,095 -- 562,095 -- Construction financing. . . . . . 54,427 8.8% 5.2% 4.8 54,427 -- 6,797 47,630 Tax-exempt debt. . . . -- 0.0% 0.0% 0.0 -- -- -- -- Credit facilities. . . -- 0.0% 0.0% 0.0 -- -- -- -- Other. . . . . . . . . -- 0.0% 0.0% 0.0 -- -- -- -- -------- ------- ------- ------- ------- ------- ------- ------- Total. . . . . . . $616,522 100.0% 6.9% 5.4 616,522 -- 568,892 47,630 ======== ======= ======= ======= ======= ======= ======= ======= Percent of total . . 100.0% 0.0% 92.3% 7.7% ======= ======= ======= ======= See notes on the following page Fourth Quarter 2004 Page 22 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY DECEMBER 31, 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 (g) ---------------------- --------- -------- --------- -------- -------- ----------- Convertible Preferred Series B (h) $ 75,000 3,125,000 3,125,000 (i) 76,500 Convertible Preferred Series D (j) 10/31/01 20,000 800,000 800,000 (k) 20,433 -------- --------- --------- ------- 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) 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. (c) 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. Fourth Quarter 2004 Page 23 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT AND PREFERRED SHARES SUMMARY - CONTINUED DECEMBER 31, 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 -------- ------------ -------- ----------- --------------- 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 Swap Commerzbank 40,000 3.984% 7/1/05-12/20/09 Swap PNC Bank, N.A. 40,000 3.984% 7/1/05-12/20/09 Swap Comerica Bank 20,000 3.994% 7/1/05-12/20/09 -------- $160,000 ======== (e) See note (b) on page 25. (f) Demand notes payable by the Company to its managed partnerships. (g) Includes quarterly dividends payable in the following month. (h) Funded in three installments of $25 million each on 3/9/98, 6/30/98 and 9/30/98. (i) The dividend per share is the greater of an annualized (i) $1.84 per share or (ii) the amount payable on the common shares. (j) 800,000 preferred shares were issued at $25 per share. These shares may be converted to 720,721 common shares, reflecting a conversion price of $27.75 per common share. (k) The dividend per share is the greater of an annualized (i) $2.1625 per share or (ii) the amount payable on the common shares. Fourth Quarter 2004 Page 24 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEBT MATURITIES DECEMBER 31, 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 ---------- ------------ ----------- --------- ---------- ------------ 2005 $ 6,538 41,024 47,562 7.3% 6.7% 2006 5,797 178,767 184,564 28.2% 5.2% 2007 4,074 75,073 79,147 12.1% 5.4% 2008 3,749 121,301(b) 125,050 19.1% 3.8% 2009 3,993 -- 3,993 0.6% 0.0% 2010 4,288 -- 4,288 0.6% 0.0% 2011 3,002 119,104 122,106 18.7% 6.6% 2012 1,713 -- 1,713 0.3% 0.0% 2013 1,818 -- 1,818 0.3% 0.0% 2014 1,124 64,097 65,221 10.0% 5.1% Thereafter 8,883 9,556(c) 18,439 2.8% 4.2% -------- ------- ------- ------ ----- Total $ 44,979 608,922 653,901 100.0% 5.3% ======== ======= ======= ====== ===== Percent to Total 6.9% 93.1% 100.0% ======== ======= ======= Fourth Quarter 2004 Page 25 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEBT MATURITIES - CONTINUED DECEMBER 31, 2004 (Unaudited, dollars in thousands) DEBT OF CO-INVESTMENT PARTNERSHIPS AT 100% ------------------------------------------ Wtd. Average Interest Rate on Scheduled Due at Percent to Maturing Year Amortization Maturity Total Total Debt ---------- ------------ ---------- --------- ----------- ------------ 2005 $ 5,964 1,200 7,164 1.2% 6.0% 2006 6,787 86,417 93,204 15.1% 6.2% 2007 6,677 66,953 73,630 11.9% 7.9% 2008 5,243 82,133 87,376 14.2% 7.0% 2009 4,250 134,706 138,956 22.5% 6.7% 2010 3,237 29,849 33,086 5.4% 8.3% 2011 1,634 77,279 78,913 12.8% 7.2% 2012 1,235 17,853 19,088 3.1% 6.4% 2013 28,309 28,424 56,733 9.2% 6.1% 2014 277 18,968 19,245 3.1% 5.1% Thereafter 8,881 246 9,127 1.5% 6.8% -------- ------- ------- ------ ----- Total $ 72,494 544,028 616,522 100.0% 6.8% ======== ======= ======= ====== ===== Percent to Total 11.8% 88.2% 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) The Company's primary unsecured line of credit is in the amount of $240,000 and matures in May 2006. (c) Includes Bonds which mature in 2024. The credit enhancement on $9,500 expires on November 15, 2005. Fourth Quarter 2004 Page 26 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% 0.1% 93.0% 92.9% 91.1% 92.5% 93.1% 92.8% 91.2% 87.5% Atlanta 3,992 0.6% 0.2% 95.1% 94.9% 93.9% 93.5% 94.5% 95.1% 92.0% 91.5% Austin 2,221 1.5% -0.2% 93.9% 94.1% 92.3% 91.4% 92.4% 93.7% 91.2% 91.7% Houston 1,133 2.3% 1.4% 95.7% 94.3% 92.2% 94.6% 93.4% 94.6% 91.0% 89.0% Indianapolis 2,428 -0.3% -0.7% 92.8% 93.5% 92.6% 91.8% 93.1% 94.0% 91.2% 89.4% Kansas City 2,192 -0.6% -2.5% 92.1% 94.6% 93.1% 92.7% 92.7% 93.5% 90.6% 89.4% Chicago 3,243 0.6% -1.6% 93.9% 95.5% 94.6% 93.0% 93.3% 94.0% 92.1% 88.6% Denver 1,260 2.0% 0.7% 92.8% 92.0% 92.6% 90.5% 90.8% 92.0% 86.2% 82.7% ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 0.5% -0.4% 93.6% 94.0% 92.7% 92.6% 93.1% 93.7% 91.1% 89.0% ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Fourth Quarter 2004 Page 27 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 0.4% -2.1% $ 828 845 838 831 824 841 853 865 Atlanta 3,992 0.8% -1.0% 878 887 881 872 871 884 892 892 Austin 2,221 -0.3% -1.5% 771 783 776 775 773 794 819 823 Houston 1,133 -0.2% -1.6% 1,017 1,033 1,031 1,022 1,019 1,053 1,063 1,068 Indianapolis 2,428 0.7% -0.7% 793 799 795 794 788 815 816 816 Kansas City 2,192 0.0% -0.9% 802 810 808 801 802 814 820 813 Chicago 3,243 -1.2% -0.6% 1,052 1,058 1,063 1,058 1,064 1,079 1,100 1,112 Denver 1,260 -2.6% -2.3% 936 958 938 951 961 965 1,028 1,038 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 -0.1% -1.3% $ 872 884 879 874 873 890 905 910 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== WEIGHTED AVERAGE COLLECTED RENT 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 0.1% -1.0% 771 779 775 772 771 763 791 807 Atlanta 3,992 0.2% 0.2% 812 810 807 805 810 815 826 837 Austin 2,221 -0.9% -0.1% 717 717 713 720 723 735 761 768 Houston 1,133 -1.2% -0.6% 953 958 958 960 964 980 994 1,013 Indianapolis 2,428 -0.2% -0.2% 736 738 737 736 737 745 751 750 Kansas City 2,192 0.0% 0.2% 740 738 738 736 740 748 757 758 Chicago 3,243 -1.0% 0.0% 976 976 978 981 986 993 1,014 1,027 Denver 1,260 -3.6% -2.1% 849 867 858 866 880 889 935 959 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 -0.5% -0.4% $ 809 812 810 810 813 821 836 848 ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ====== Fourth Quarter 2004 Page 28 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES (a) - CONTINUED QUARTER ENDED (Unaudited, dollars in thousands) 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. Fourth Quarter 2004 Page 29 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 0.3% -1.9% $ 59,331 14,789 15,077 14,692 14,773 59,295 14,749 15,048 14,941 14,557 Atlanta 3,992 1.3% -0.9% 39,744 9,992 10,086 9,902 9,764 39,524 9,862 10,064 9,827 9,771 Austin 2,221 1.4% -1.6% 19,214 4,828 4,907 4,762 4,717 19,726 4,759 4,959 4,977 5,031 Houston 1,133 2.2% -0.1% 13,139 3,308 3,310 3,233 3,288 13,144 3,235 3,386 3,290 3,233 Indiana- polis 2,428 0.8% -1.4% 21,439 5,366 5,440 5,350 5,283 21,522 5,321 5,571 5,417 5,213 Kansas City 2,192 -0.7% -3.5% 19,727 4,860 5,037 4,946 4,884 19,561 4,893 5,002 4,886 4,780 Chicago 3,243 -0.5% -2.2% 38,785 9,605 9,824 9,785 9,571 38,973 9,657 9,869 9,862 9,585 Denver 1,260 -0.5% -1.4% 13,152 3,285 3,332 3,282 3,253 13,216 3,301 3,354 3,351 3,210 ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 22,876 0.5% -1.7% $224,531 56,033 57,013 55,952 55,533 224,961 55,777 57,253 56,551 55,380 ====== ====== ====== ======== ====== ====== ====== ====== ======= ====== ====== ====== ====== Fourth Quarter 2004 Page 30 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 1.2% -5.8% $ 26,816 6,701 7,116 6,935 6,064 26,643 6,619 7,007 6,714 6,303 Atlanta 3,992 -1.2% -4.7% 15,577 3,737 3,921 4,217 3,702 14,951 3,780 3,903 3,679 3,589 Austin 2,221 5.8% 0.8% 9,026 2,200 2,183 2,456 2,187 8,598 2,080 2,050 2,198 2,270 Houston 1,133 -6.4% -16.7% 5,724 1,292 1,550 1,495 1,387 5,705 1,380 1,459 1,460 1,406 Indiana- polis 2,428 -8.7% -22.5% 8,565 2,005 2,585 1,768 2,207 9,048 2,195 2,399 2,258 2,196 Kansas City 2,192 20.9% 13.4% 7,201 1,877 1,655 1,953 1,716 7,136 1,553 2,047 1,869 1,667 Chicago 3,243 -3.1% -8.2% 15,994 3,816 4,157 4,139 3,882 15,936 3,939 4,205 4,100 3,692 Denver 1,260 2.3% -11.4% 4,689 1,140 1,286 1,253 1,010 4,617 1,114 1,240 1,297 966 ------ ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ Total 22,876 0.5% -6.9% $ 93,592 22,768 24,453 24,216 22,155 92,634 22,660 24,310 23,575 22,089 ====== ====== ====== ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Fourth Quarter 2004 Page 31 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 -0.5% 1.6% $ 32,515 8,088 7,961 7,757 8,709 32,652 8,130 8,041 8,227 8,254 Atlanta 3,992 2.9% 1.5% 24,167 6,255 6,165 5,685 6,062 24,573 6,082 6,161 6,148 6,182 Austin 2,221 -1.9% -3.5% 10,188 2,628 2,724 2,306 2,530 11,128 2,679 2,909 2,779 2,761 Houston 1,133 8.7% 14.5% 7,415 2,016 1,760 1,738 1,901 7,439 1,855 1,927 1,830 1,827 Indiana- polis 2,428 7.5% 17.7% 12,874 3,361 2,855 3,582 3,076 12,474 3,126 3,172 3,159 3,017 Kansas City 2,192 -10.7% -11.8% 12,526 2,983 3,382 2,993 3,168 12,425 3,340 2,955 3,017 3,113 Chicago 3,243 1.2% 2.1% 22,791 5,789 5,667 5,646 5,689 23,037 5,718 5,664 5,762 5,893 Denver 1,260 -1.9% 4.8% 8,463 2,145 2,046 2,029 2,243 8,599 2,187 2,114 2,054 2,244 ------ ------ ------- -------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Total 22,876 0.5% 2.2% $130,939 33,265 32,560 31,736 33,378 132,327 33,117 32,943 32,976 33,291 ====== ====== ====== ======== ====== ====== ====== ====== ======= ====== ====== ====== ====== Notes: (a) Information shown is Combined, including share of partnership communities at 100%. (b) See page 39 for components of same store community revenue, expenses, net operating income and EBITDA. Fourth Quarter 2004 Page 32 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 7.3% -5.0% $ 23,155 5,805 6,111 5,771 5,468 21,858 5,409 5,741 5,625 5,083 Advertising and promotion 12.7% -8.4% 4,504 1,162 1,268 1,126 948 4,519 1,031 1,310 1,120 1,058 Utilities 10.5% -0.6% 6,695 1,800 1,811 1,558 1,526 6,794 1,629 2,097 1,543 1,525 Building repairs and maintenance -5.2% -27.9% 12,284 2,673 3,708 3,669 2,234 11,204 2,820 3,338 2,793 2,253 Landscaping and grounds maintenance -12.0% -29.9% 4,041 793 1,131 1,365 752 4,318 901 1,195 1,349 873 Real estate taxes -7.9% -3.8% 28,488 6,764 7,030 7,054 7,640 29,564 7,343 7,005 7,466 7,750 Insurance -0.5% 52.6% 3,994 1,087 713 1,096 1,098 4,083 1,093 1,039 981 970 Property management fees -0.3% -1.7% 7,972 1,989 2,023 1,984 1,976 8,159 1,995 2,072 2,066 2,026 Other 58.6% 5.8% 2,459 695 658 593 513 2,135 439 513 632 551 ------ ------- -------- ------ ------ ------ ------ ------ ------ ------ ------ ------ 0.5% -6.9% $ 93,592 22,768 24,453 24,216 22,155 92,634 22,660 24,310 23,575 22,089 ====== ======= ======== ====== ====== ====== ====== ====== ====== ====== ====== ====== Fourth Quarter 2004 Page 33 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 82.3% 16.0% $ 7,139 2,278 1,964 1,672 1,225 6,075 1,250 1,772 1,824 1,229 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 313 100 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 4.8% -5.2% $100,731 25,046 26,417 25,888 23,380 98,709 23,910 26,082 25,399 23,318 ====== ======= ======== ====== ======= ====== ====== ====== ====== ====== ====== ====== Per apartment home 4,404 1,095 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. Fourth Quarter 2004 Page 34 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SAME STORE COMMUNITIES TOTAL RENTAL REVENUE The following graphs present same store community monthly total revenue for the twelve 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 November 2004. ALL COMMUNITIES --------------- For the fourth quarter of 2004 compared to the fourth quarter of 2003, total revenue and operating expenses for all communities in AMLI's same store portfolio each increased by 0.5%, producing a net operating income (NOI) increase of 0.5%. The modest increase in total revenue was due to a 6.3% increase in other income, primarily attributable to higher leasing related fees and previous collections. Rental income was flat as in-place rental rates, measured by collected rent per occupied unit, decreased 0.5% and occupancy increased 0.4% to 93.6%. Collected rent per occupied unit was down in five of AMLI's eight markets, whereas occupancies were up in five of eight markets. Sequentially, comparing the fourth quarter of 2004 to the third quarter of 2004, total revenue decreased 1.7%, operating expenses decreased 6.9% and net operating income increased 2.2%. The decrease in sequential total revenue was the result of decreases in both rental and other income. The rental income decrease of 0.8% reflected a decrease in collected rent per occupied unit in five of eight markets and a decrease in occupancy in four of eight markets. The 12.3% drop in other income was mainly due to lower leasing-related fees as a result of less seasonal traffic. On a positive note, overall employment in seven of AMLI's markets increased during the twelve months ended November 2004. DALLAS/FT. WORTH ---------------- DALLAS/FT. WORTH same store community total revenue, operating expenses and NOI for the current quarter increased 0.3%, increased 1.3% and decreased 0.5%, respectively, compared to the same period in 2003. The increase in total revenue was due to other income increasing by 5.4% on a year over year basis due to higher collections in several fee categories. On a sequential basis comparing the fourth quarter of 2004 to the third quarter, total revenue decreased 1.9%, which was primarily due to decreases in collected rent per occupied unit and other income of 1.0% and 14.6% respectively. Sequential operating expenses decreased 5.8%, however, resulting in a positive NOI change of 1.6%. Job growth continued to improve in the region as the DF/W metroplex added 25,000 jobs in the trailing 12 months ended November 2004. For the same period permit activity slowed as 8,209 units were authorized, 1.5% of the existing stock, which represents a 20.6% decrease from the previous period. ATLANTA ------- ATLANTA same store community total revenue and NOI increased 1.3% and 2.8%, respectively, compared to the same quarter a year ago, while operating expenses decreased by 1.2%. The positive performance in total revenue resulted from a combination of increases in both rental and other income of 0.7% and 9.4%, respectively. The increase in rental income reflects increases in both collected rent per occupied unit and occupancy of 0.2% and 0.5% respectively. The increase in other income was due to higher fees associated with increased leasing, corporate homes activity and other ancillary resident programs. Sequentially, comparing the current quarter to Fourth Quarter 2004 Page 35 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES TOTAL REVENUE - CONTINUED the prior quarter, total revenue and operating expenses decreased 0.9% and 4.7%, resulting in an increase in sequential NOI of 1.5%. The decrease in total revenue was primarily the result of a 14.3% decrease in other income, as rental income increased 0.3% due to a 0.2% gain in occupancy to 95.1%, and a 0.2% increase in collected rent per occupied unit. The decline in other income was due to fewer leasing-related fees, reflecting slower seasonal leasing activity. The decrease in operating expenses was primarily due to timing of repair & maintenance projects. The challenge in Atlanta remains absorption of new supply, with 15,245 units permitted for the year ending November 2004, which represents a 4.0% increase to the existing apartment stock. Encouraging news in Atlanta is the employment growth outlook. For the year ending November 2004, employment posted a gain of 21,100 jobs, or a modest 1.0% growth rate, compared to net job loss for the same period of a year ago. CHICAGO ------- CHICAGO same store community NOI for the fourth quarter of 2004 increased 1.2% compared to the fourth quarter of 2003 as a result of a decrease in total revenue of 0.5% and a 3.1% decrease in operating expenses. The decline in total revenue was the result of a 0.4% decrease in rental income and a 2.4% decline in other income. The drop in rental income was driven by a 1.0% decrease in collected rent per occupied unit, which was partially offset by a 0.6% increase in occupancy to 93.9%. Sequentially, total revenues for the current quarter decreased 2.2% compared to the third quarter of 2004 as both rental and other income decreased 1.7% and 8.6%, respectively. The change in rental income was due primarily to a 1.6% decrease in occupancy, as collected rent per occupied unit was unchanged. Sequential operating expenses decreased 8.2% producing an increase in sequential NOI of 2.1%. Chicago is finally showing a positive employment trend, albeit at a modest 0.4% rate, which is below the U.S. average. However, given the size of Chicago's employment base, the absolute number of new jobs is encouraging. On the supply side, the Chicago metro issued permits for 8,400 new multifamily units for the year ending November 2004, which represents 1.3% of the existing apartment stock, a 26% decrease from 2003. It should be noted that a significant portion of permits issued in Chicago are for "for-sale" housing that will not directly compete with "for-rent" product. AMLI's internal 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 given the size of the market. AUSTIN ------ AUSTIN same store community total revenue, operating expenses and NOI for the fourth quarter of 2004 increased 1.4%, increased 5.8% and decreased 1.9%, respectively, compared to the same period in 2003. The increase in total revenue was primarily the result of a 1.5% gain in occupancy and an 11.0% increase in other income, as collected rents per occupied decreased by 0.9%. On a sequential basis comparing the current quarter to the third quarter of 2004, total revenue decreased by 1.6%, due to decreases in rental income, other income and occupancy of 0.2%, 16.9% and 0.2%, respectively. In addition, sequential operating expenses increased by 0.8%, resulting in a decrease in sequential NOI by 3.5%. However, both supply and demand fundamentals continue to improve in the region. On the demand side, approximately 7,100 jobs were added in the 12 months ended November 2004, a substantial change from the 4,600 job losses during the same period a year ago. On the supply side, permit activity remains relatively stable as 3,091 permits, representing 2.0% of existing apartments, were issued for the year ending November 2004. Fourth Quarter 2004 Page 36 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES TOTAL REVENUE - CONTINUED KANSAS CITY ----------- KANSAS CITY same store community total revenue and NOI for the fourth quarter of 2004 decreased 0.7% and 10.7%, respectively, compared to the fourth quarter 2003, and operating expenses compared to last year increased 20.9%. The decrease in total revenue was the result of a decline in occupancy of 0.6% to 92.1% and a 0.4% decrease in other income, as collected rent per occupied unit remained unchanged. The increase in operating expenses was due to higher payroll, repair and maintenance and real estate tax expenses. On a sequential basis comparing the fourth quarter of 2004 to the prior quarter, total revenue and NOI decreased 3.5% and 11.8%, respectively, and operating expenses increased 13.4%. The large increase in expenses simply reflects the fact that positive adjustments to real estate tax accruals occurred in the third quarter. Sequential rental income decreased 2.4%, reflecting a 2.5% drop in occupancy during the quarter, while collected rent per occupied unit increased by 0.2%. Other income also posted a sequential decrease, down 15.2% due to the slower seasonal leasing activity. Demand fundamentals in the Kansas City area are trending in the right direction, as there have been positive signs in both job growth and the number of multifamily permits in 2004. For the year ending November 2004 the Kansas City metro area gained 4,000 jobs, a positive 0.4% rate, and a marked improvement over the 8,900 jobs lost for the same period of a year ago. On the supply side, multifamily permits have trended down over the past year as authorized permits totaled 906 units for the year ending November 2004, a 66% decrease over the same period of a year ago, which represents a 0.7% increase to the existing apartment stock. INDIANAPOLIS ------------ INDIANAPOLIS same community total revenue increased 0.8%, operating expenses decreased 8.7% and NOI increased 7.5% for the fourth quarter 2004 compared to the same period of a year ago. Rental income on a year over year basis was flat, as collected rent per occupied unit and occupancy both fell 0.2%, while other income increased 12.8% due to higher termination fees and cable revenues. The decrease in operating expenses was primarily due to a positive adjustment to real estate taxes. Sequentially comparing the fourth quarter of 2004 to the prior quarter, total revenue decreased 1.4%, operating expenses decreased 22.5% and NOI increased 17.7%. The revenue decline was due to a 0.9% decrease in rental income as a result of 0.7% and 0.2% decreases in occupancy and collected rent per occupied unit, respectively. Other income also declined 7.3%. The significant decrease in operating expenses is primarily due to the timing of repair & maintenance and landscaping projects, as well as positive adjustments to real estate taxes. Demand and supply fundamentals in Indianapolis continue to be a concern. The BLS reported job losses of 1,800 for the year ending November 2004, while 1,694 new multifamily permits, representing a 1.4% increase to the existing apartment stock, were authorized during the same period, still a 36.4% decrease from the prior twelve months. Fourth Quarter 2004 Page 37 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL SAME STORE COMMUNITIES TOTAL REVENUE - CONTINUED HOUSTON ------- HOUSTON same community total revenue, operating expenses and NOI for the fourth quarter 2004 increased 2.2%, decreased 6.4%, and increased 8.7%, respectively, compared to the same period in 2003. Rental income increased 1.3% mainly due to an increase in occupancy of 2.3%, while collected rent per occupied unit decreased 1.2%. Other income increased 19.4% over the same period last year due to an increase in termination and corporate home fees. On a sequential basis comparing the current quarter to the third quarter of 2004, total revenue decreased slightly by 0.1%, due to decreases in collected rents per occupied unit and other income of 0.6% and 13.3% respectively, which was offset by a 1.4% improvement in occupancy. Houston continues to be faced with challenging supply fundamentals as permit activity remains high with 10,890 permits, representing 2.3% of existing stock), issued for the year ending November 2004. On the demand side, Houston is beginning to show signs of a solid economic rebound as the market registered an increase of approximately 30,600 jobs for the twelve months ended November 2004. DENVER ------ DENVER same community total revenue decreased by 0.5%, operating expenses increased by 2.3% and NOI fell by 1.9% for the current quarter compared to the fourth quarter 2003. Rental income fell 1.5% due to continued weakness in the market, as collected rent per occupied unit declined 3.6%; however, occupancy improved to 92.8%, up 2.0% on a year over year basis, and other income increased 10.6% on higher fee collection in numerous categories. The increase in operating expenses is primarily due to higher payroll and utility costs. On a sequential basis comparing the current quarter to the third quarter of 2004, total revenue and operating expenses decreased and NOI increased 1.4%, 11.3% and 4.8% respectively. The expense decrease was primarily due to lower repair & maintenance, landscaping and administrative costs. Sequential rental income decreased 1.3% as collected rent per occupied unit fell 2.1% and occupancy increased 0.7%. Other income compared to last quarter decreased by 3.1% primarily due to slower seasonal leasing activity. The Denver/Boulder metro is beginning to see a strengthening of demand/supply fundamentals as job growth has turned positive and the authorization of multifamily permits has slowed dramatically. For the year ending November 2004, the metro area gained 14,200 jobs, a positive 1.1% growth rate, and authorized permits totaled 3,623 units, a 1.5% increase to the existing apartment stock, but a significant 42% decrease over the same period two years ago. Fourth Quarter 2004 Page 38 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI QUARTER ENDED DECEMBER 31 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined at 100% at 100% ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2004 2003 Change 2004 2003 Change 2004 2003 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (b) . . . . 28,583 26,487 7.9% 56,033 55,777 0.5% 27,450 29,290 -6.3% New communities (c). . . 803 690 16.3% 4,451 4,227 5.3% 3,648 3,537 3.1% Communities under development and lease-up. . . . . . . . 795 0 0.0% 2,776 1,002 177.1% 1,981 1,002 97.8% Acquisition communities (d) . . . . 7,017 20 0.0% 7,017 20 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 741 866 -14.5% 741 866 -14.5% 0 0 0.0% Communities sold (f) . . -16 4,963 -100.3% -16 7,526 -100.2% 0 2,563 -100.0% -------- -------- -------- -------- -------- -------- -------- -------- -------- 37,923 33,026 14.8% 71,002 69,418 2.3% 33,079 36,392 -9.1% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b) . . . . 12,172 11,306 7.7% 22,768 22,660 0.5% 10.596 11,354 -6.7% New communities (c). . . 205 261 -21.2% 1,366 1,324 3.2% 1,161 1,063 9.2% Communities under development and lease-up. . . . . . . . 497 0 0.0% 1,656 559 196.1% 1,159 559 107.4% Acquisition communities (d) . . . . 3,120 3 0.0% 3,120 3 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 397 419 -5.2% 397 419 -5.2% 0 0 0.0% Communities sold (f) . . -38 2,266 -101.7% -44 3,314 -101.3% -6 1,048 -100.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- 16,353 14,255 14.7% 29,263 28,279 3.5% 12,910 14,024 -7.9% ======== ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 39 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER ENDED DECEMBER 31 (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) . . . . 16,411 15,181 8.1% 33,265 33,117 0.4% 16,854 17,936 -6.0% New communities (c). . . 598 429 39.2% 3,085 2,903 6.3% 2,487 2,474 0.6% Communities under development and lease-up. . . . . . . . 298 0 0.0% 1,120 443 153.1% 822 443 85.6% Acquisition communities (d) . . . . 3,897 17 0.0% 3,897 17 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 344 447 -23.2% 344 447 -23.2% 0 0 0.0% Communities sold (f) . . 22 2,697 -99.2% 28 4,212 -99.3% 6 1,515 99.6% -------- -------- -------- ------- ------- -------- -------- -------- -------- 21,570 18,771 14.9% 41,739 41,139 1.5% 20,169 22,368 -9.8% ======== ======== ======== ======== ======== ======== ======== Less Co-investment partners' share . . . . (13,166) (14.800) ------- ------- COMPANY'S SHARE OF NOI (g) . . . . . . . . 28,573 26,339 Cash flow preference and operating promote (h) . . . . . . . . . . 564 510 ------- ------- 29,137 26,849 Company's share of other, net (i) . . . . (147) 156 ------- ------- COMPANY'S SHARE OF COMMUNITIES' EBITDA. . 28,990 27,005 ======= ======= COMPANY'S PERCENTAGE OF COMBINED NOI: Before cash flow preferences . . . . . . 68.5% 64.0% Including cash flow preferences and other . 69.8% 65.3% ======= ======= Fourth Quarter 2004 Page 40 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED QUARTER ENDED DECEMBER 31 (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 45. (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 45. Fourth Quarter 2004 Page 41 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL COMPONENTS OF NOI YEAR ENDED DECEMBER 31 (Dollars in thousands)
Partnership Communities Wholly-Owned Communities (a) Combined at 100% at 100% ---------------------------- ---------------------------- ---------------------------- Percent Percent Percent 2004 2003 Change 2004 2003 Change 2004 2003 Change -------- -------- -------- -------- -------- -------- -------- -------- -------- REVENUES Same store communities (b) . . . . 113,086 92,026 22.9% 224,531 224,961 -0.2% 111,445 132,935 -16.2% New communities (c). . . 3,198 1,903 68.0% 17,792 14,096 26.2% 14,594 12,193 19.7% Communities under development and lease-up. . . . . . . . 1,979 0 0.0% 8,214 2,330 252.5% 6,235 2,330 167.6% Acquisition communities (d) . . . . 14,705 20 0.0% 14,705 20 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 3,128 3,477 -10.0% 3,128 3,477 -10.0% 0 0 0.0% Communities sold (f) . . 7,435 20,457 -63.7% 7,784 35,017 -77.8% 349 14,560 -97.6% -------- -------- -------- -------- -------- -------- -------- -------- -------- 143,531 117,883 21.8% 276,154 279,901 -1.3% 132,623 162,018 -18.1% ======== ======== ======== ======== ======== ======== ======== ======== ======== EXPENSES Same store communities (b) . . . . 48,833 40,076 21.9% 93,592 92,634 1.0% 44,759 52,558 -14.8% New communities (c). . . 1,502 918 63.7% 6,814 5,993 13.7% 5,312 5,075 4.7% Communities under development and lease-up. . . . . . . . 1,405 0 0.0% 5,542 1,751 216.5% 4,137 1,751 136.2% Acquisition communities (d) . . . . 7,103 3 0.0% 7,103 3 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 1,538 1,481 3.9% 1,538 1,481 3.9% 0 0 0.0% Communities sold (f) . . 3,694 8,909 -58.5% 3,903 15,704 -75.1% 209 6,795 -96.9% -------- -------- -------- -------- -------- -------- -------- -------- -------- 64,075 51,387 24.7% 118,492 117,566 0.8% 54,417 66,179 -17.8% ======== ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 42 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED YEAR ENDED DECEMBER 31 (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) . . . . 64,253 51,950 23.7% 130,939 132,327 -1.0% 66,686 80,377 -17.0% New communities (c). . . 1,696 985 72.1% 10,978 8,103 35.5% 9,282 7,118 30.4% Communities under development and lease-up. . . . . . . . 574 0 0.0% 2,672 579 361.4% 2,098 579 262.3% Acquisition communities (d) . . . . 7,602 17 0.0% 7,602 17 0.0% 0 0 0.0% Communities under rehab (e) . . . . . . . 1,590 1,996 -20.4% 1,590 1,996 -20.4% 0 0 0.0% Communities sold (f) . . 3,741 11,548 -67.6% 3,881 19,313 -79.9% 140 7,765 -98.2% -------- -------- -------- ------- ------- -------- -------- -------- -------- 79,456 66,496 19.5% 157,662 162,335 -2.9% 78,206 95,839 -18.4% ======== ======== ======== ======== ======== ======== ======== Less Co-investment partners' share . . . . (50,983) (64,241) ------- ------- COMPANY'S SHARE OF NOI (g) . . . . . . . . 106,679 98,094 Cash flow preference and operating promote (h) . . . . . . . . . . 2,638 2,316 ------- ------- 109,317 100,410 Company's share of other, net (i) . . . . (590) (656) ------- ------- COMPANY'S SHARE OF COMMUNITIES' EBITDA. . 108,727 99,754 ======= ======= COMPANY'S PERCENTAGE OF COMBINED NOI: Before cash flow preferences . . . . . . 67.7% 60.4% Including cash flow preferences and other . . . . . . . . . 69.3% 61.9% ======= ======= Fourth Quarter 2004 Page 43 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL COMPONENTS OF NOI - CONTINUED YEAR ENDED DECEMBER 31 (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 45. (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 45. Fourth Quarter 2004 Page 44 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). . . . . . . 654 164 162 162 166 460 113 111 118 118 Disposition fees (c) . -- -- -- -- -- 567 242 325 -- -- Development fees (a) . 1,170 167 474 262 267 1,330 202 396 394 338 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 1,824 331 636 424 433 2,357 557 832 512 456 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF CASH FLOW (d) Promoted interest from sale proceeds. . -- -- -- -- -- 375 -- 375 -- -- Promoted interest from operating cash flow . . . . . . 829 261 107 207 254 549 151 127 146 125 Cash flow pre- ferences (e). . . . . 1,809 303 440 254 812 1,767 358 330 549 530 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 2,638 564 547 461 1,066 2,691 509 832 695 655 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- TOTAL. . . . . . .$ 4,462 895 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 39 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 39. (e) The Company receives compensation from certain partnerships in the form of a preferential distribution of cash flow. Fourth Quarter 2004 Page 45 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). . . . . . .$ 10,150 2,602 2,646 2,420 2,482 10,371 2,552 2,657 2,611 2,551 General contractor revenue, net (b). . . 693 189 224 136 144 752 (310) 77 360 625 Gross profit - corporate homes (c) . 864 139 212 264 249 996 242 276 251 227 Other income . . . . . 2,405 883 542 341 639 1,492 572 320 395 205 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 14,112 3,813 3,624 3,161 3,514 13,611 3,056 3,330 3,617 3,608 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- OPERATING EXPENSES Property management. . 10,479 2,797 2,397 2,638 2,647 9,016 1,396 2,606 2,663 2,351 General contractor . . 2,889 477 1,111 521 780 2,427 721 765 498 443 Corporate homes. . . . 1,099 294 306 255 244 980 260 245 245 230 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- 14,467 3,568 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 . . . . . . . . (355) 245 (190) (253) (157) 2,551 129 1,627 211 584 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Fourth Quarter 2004 Page 46 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 . . . (1,311) (309) (322) (272) (408) (1,042) (351) (289) (230) (172) Depreciation and amortization. . . . . (3,230) (692) (856) (845) (837) (3,124) (806) (778) (780) (760) Taxes. . . . . . . . . 1,782 246 520 522 494 636 391 (213) 303 155 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- NET INCOME (LOSS). . . (3,114) (510) (848) (848) (908) (979) (637) 347 (496) (193) Eliminations, interest and other . . . . . . . . 1,464 281 416 315 452 1,105 325 382 247 151 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- SHARE OF INCOME (LOSS) FROM THE SERVICE COMPANIES (d) . . . .$ (1,650) (229) (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 revenues from customers less payments to communities and cost of sales. (d) Includes discontinued operations. The Service Companies' operations on page 16 exclude discontinued operations. Fourth Quarter 2004 Page 47 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL SERVICE COMPANIES FINANCIAL INFORMATION (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). . . . . $ 2,058 3,040 5,506 6,557 6,351 9,162 12,453 14,356 Land held for sale and other (b). . . 13,697 12,247 12,433 12,404 12,301 12,822 12,816 12,780 Rental communities under development and held for sale (c) . . . . . . . . . . 10,360 10,361 9,676 8,396 34,618 29,620 20,434 11,736 Building and leasehold improve- ments, net (d). . . . . 2,080 2,124 2,208 2,257 2,227 2,327 2,352 2,406 Information technology costs, net. . . . . . . 7,294 7,260 7,600 7,959 8,500 8,160 8,287 8,231 Other (e). . . . . . . . 5,827 6,620 6,066 5,646 4,780 4,839 5,636 5,504 -------- -------- -------- -------- -------- -------- -------- -------- Total Assets . . . . $ 41,316 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) . . . . . $ 7,006 7,027 7,219 7,192 7,160 7,681 7,616 7,642 Fossil Creek (34 acres in Texas) . . . . . . 5,220 5,220 5,214 5,212 5,141 5,141 5,200 5,138 Downtown Austin Retail . . . . . . 1,471 -- -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- -------- -------- $ 13,697 12,247 12,433 12,404 12,301 12,822 12,816 12,780 ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 48 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 56 and 58. (d) Primarily includes a corporate office building, net of depreciation. (e) Represented by: Investments in partnerships . . . $ (45) (48) 43 215 485 928 1,747 1,632 Investments in real estate. . . . 737 1,718 1,448 1,448 737 737 737 737 Deferred income tax. . . . . . . . 3,999 3,762 3,240 2,721 2,229 1,852 2,064 1,760 Unamortized goodwill . . . . . 668 668 668 668 668 668 668 668 Other . . . . . . . 468 520 667 594 661 654 420 707 -------- -------- -------- -------- -------- -------- -------- -------- $ 5,827 6,620 6,066 5,646 4,780 4,839 5,636 5,504 ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 49 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL STABILIZED COMMUNITIES DECEMBER 31, 2004
Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 30, 4th 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 89.6% $ 843 Same Store at Bishop's Gate 100% Plano, TX 1997 1997 266 91.0% 1,012 Same Store at Breckinridge Point 45% Richardson, TX 2000 1999 440 94.8% 902 Same Store at Bryan Place 48% Dallas, TX 2002 1999 420 93.3% 940 Same Store at Chase Oaks 100% Plano, TX 1994 1986 250 91.4% 688 Same Store at Deerfield 25% Plano, TX Developed 2000 240 91.3% 902 Same Store on the Fairway 100% Coppell, TX 2004 2002 322 93.8% 865 Acquisition on Frankford 45% Dallas, TX 2000 1998 582 92.3% 865 Same Store on the Green 100% Ft. Worth, TX 1994 1990/93 424 90.1% 726 Same Store Knox-Henderson 100% Dallas, TX 2003 1994 180 96.7% 1,078 Acquisition of North Dallas 100% Dallas, TX 1989/90 1985/86 1,032 91.3% 685 Same Store at Oak Bend 100% Dallas, TX 1999 1997 426 93.2% 773 Same Store (b) on the Parkway 25% Dallas, TX Developed 1999 240 93.8% 861 Same Store at Prestonwood Hills 45% Dallas, TX 1999 1997 272 90.1% 875 Same Store 7th Street Station 100% Ft. Worth, TX 2002 2000 189 93.1% 1,009 Same Store at Shadow Ridge 100% Flower Mound, TX 2001 2000 222 91.4% 974 Same Store at Stonebridge Ranch 100% McKinney, TX 2001 2001 250 94.0% 753 Same Store Upper West Side 100% Ft. Worth, TX 2002 2001 194 95.9% 973 Same Store at Valley Ranch 100% Irving, TX 1990 1985 460 92.8% 771 Same Store ------ ------ ------ ------ 6,909 25.0% 92.3% 836 ------ ------ ------ ------ Fourth Quarter 2004 Page 50 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED DECEMBER 31, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 31, 4th Qtr Components Market/Community tage Location Acquired Completed Homes (a) 2004 2004 of NOI ---------------- --------- -------- --------- --------- ------ ------- --------- --------- ---------- ATLANTA, GA ------------ AMLI: at Barrett Lakes 35% Kennesaw, GA Developed 1997 446 95.1% 889 Same Store at Barrett Walk 25% Kennesaw, GA Developed 2002 290 93.1% 859 New at Clairmont 100% Atlanta, GA 1988 1988 288 94.8% 806 Same Store at Kedron Village 20% Fayette County, GA Developed 2002 216 88.0% 1,085 Same Store at Killian Creek 100% Snellville, GA Developed 1999 256 95.3% 829 Same Store at Lost Mountain 75% Paulding County, GA Developed 2000 164 92.1% 775 Same Store at Mill Creek 25% Gwinnett County, GA Developed 2001 400 94.8% 838 Same Store at Milton Park 25% Alpharetta, GA Developed 2003 461 94.6% 947 New at Northwinds 35% Alpharetta, GA Developed 1999 800 94.6% 925 Same Store at Park Creek 100% Gainesville, GA Developed 1998 200 97.5% 785 Same Store at Peachtree City 20% Fayette County, GA Developed 1998 312 91.7% 904 Same Store at River Park 40% Norcross, GA Developed 1997 222 96.9% 911 Same Store at Vinings 100% Smyrna, GA 1992/97 1985 360 95.3% 797 Same Store at West Paces 100% Atlanta, GA 1993 1992 337 79.8% 898 Rehab at Windward Park 45% Alpharetta, GA 1999 1999 328 91.7% 913 Same Store ------ ------ ------ ------ 5,080 18.4% 93.2% 885 ------ ------ ------ ------ Fourth Quarter 2004 Page 51 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED DECEMBER 31, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 31, 4th 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% 1,338 Acquisition at Chevy Chase 33% Buffalo Grove, IL 1996 1988 592 94.0% 1,057 Same Store at Danada Farms 100% Wheaton, IL 1997 1989/91 600 93.7% 1,020 Same Store (b) at Fox Valley 25% Aurora, IL Developed 1998 272 95.6% 1,023 Same Store at Kirkland Crossing 100% Aurora, IL 2004 2004 266 89.5% 1,158 Acquisition at Oakhurst North 100% Aurora, IL Developed 2000 464 90.7% 1,032 Same Store (b) at Osprey Lake 69% Gurnee, IL 2001 1997/99 483 93.2% 1,028 Same Store at Poplar Creek 100% Schaumburg, IL 1997 1985 196 94.9% 1,067 Same Store at River Run 100% Naperville, IL 2004 2003 206 77.2% 1,408 Acquisition at St. Charles 25% St. Charles, IL Developed 2000 400 94.0% 1,128 Same Store at Windbrooke 15% Buffalo Grove, IL 1995 1987 236 95.6% 1,092 Same Store ------ ------ ------ ------ 4,067 14.7% 92.3% 1,101 ------ ------ ------ ------ AUSTIN, TX ---------- AMLI: in Great Hills 100% Austin, TX 1991 1985 344 94.5% 663 Same Store at Lantana Ridge 100% Austin, TX 1997 1997 354 94.1% 829 Same Store at Monterery Oaks 25% Austin, TX Developed 2000 430 94.7% 848 Same Store at Scofield Ridge 45% Austin, TX 2000 2000 487 94.3% 767 Same Store at Stone Hollow 100% Austin, TX 2000 1997 606 90.8% 747 Same Store ------ ------ ------ ------ 2,221 8.1% 93.4% 771 ------ ------ ------ ------ Fourth Quarter 2004 Page 52 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED DECEMBER 31, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 31, 4th 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 90.7% 880 New Creekside 100% Overland Park, KS Developed 2000 224 94.2% 800 Same Store (b) at Lexington Farms 100% Overland Park, KS 1998 1998 404 90.1% 791 Same Store at Regents Center 100% Overland Park, KS 1994 1991/95 /97 424 88.4% 757 Same Store at Regents Crest 100% Overland Park, KS 1997 1997/2000 476 90.8% 781 Same Store (b) at Summit Ridge 25% Lees Summit, KS Developed 2001 432 90.7% 842 Same Store at Wynnewood Farms 100% Overland Park, KS Developed 2000 232 92.2% 875 Same Store ------ ------ ------ ------ 2,600 9.4% 90.7% 814 ------ ------ ------ ------ Fourth Quarter 2004 Page 53 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED DECEMBER 31, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 31, 4th 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 87.0% 914 New at Castle Creek 100% Indianapolis, IN Developed 2000 276 91.3% 897 Same Store (b) at Conner Farms 100% Fishers, IN 1997 1993 300 91.0% 853 Same Store at Eagle Creek 100% Indianapolis, IN 1998 1998 240 93.3% 841 Same Store at Lake Clear- water 100% Indianapolis, IN Developed 1999 216 94.9% 928 Same Store at Riverbend 100% Indianapolis, IN 1992/93 1983/85 996 93.1% 689 Same Store on Spring Mill 100% Carmel, IN 1999 1999 400 91.8% 834 Same Store (b) ------ ------ ------ ------ 2,750 10.0% 91.9% 807 ------ ------ ------ ------ HOUSTON, TX ----------- AMLI: on Eldridge Parkway 100% Houston, TX 2004 1998/99 668 90.1% 786 Acquisition at Kings Harbor 25% Houston, TX Developed 2001 300 91.3% 873 New at the Medical Center 100% Houston, TX 2001 2000 334 90.7% 957 Same Store Midtown 45% Houston, TX 2000 1998 419 97.1% 1,055 Same Store Towne Square 45% Houston, TX 2000 1999 380 95.0% 1,027 Same Store ------ ------ ------ ------ 2,101 7.6% 92.7% 923 ------ ------ ------ ------ Fourth Quarter 2004 Page 54 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL STABILIZED COMMUNITIES - CONTINUED DECEMBER 31, 2004 Number Percent Ave. AMLI's of of Physical Collected Ownership Apart- Port- Occupancy Revenue Percen- Year Year ment folio Dec. 31, 4th 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 90.3% 983 Same Store at Gateway Park 100% Denver, CO 2000 2000 328 90.2% 848 Same Store at Park Meadows 25% Littleton, CO 2002 2001 518 92.3% 955 Same Store at Westcliff 100% Westminster, CO 2004 2003 372 78.5% 957 Acquisition ------ ------ ------ ------ 1,632 5.9% 88.2% 941 ------ ------ ------ ------ SOUTHEAST FLORIDA --------- AMLI at Ibis 100% West Palm Beach, FL 2004 2001 234 0.9% 91.0% 1,059 Acquisition ------ ------ ------ ------ TOTAL 27,594 100% 92.1% $ 889 ====== ====== ====== ====== 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 27, 30, 33, 39 and 42. Fourth Quarter 2004 Page 55 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY DECEMBER 31, 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 1Q/07 0 40% NA AUSTIN, TX ---------- AMLI Downtown (c) Austin, TX 30% 220 2Q/02 1Q/04 3Q/04 3Q/05 220 98% 70% CHICAGO, IL ----------- AMLI: at Museum Gardens Vernon Hills, IL 25% 294 2Q/03 3Q/04 1Q/05 1Q/06 85 78% 13% ----- ----- Total 874 305 ===== ===== Fourth Quarter 2004 Page 56 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED DECEMBER 31, 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% 79% CHICAGO, IL ----------- AMLI at Seven Bridges Woodridge, IL 20% 520 3Q/01 3Q/02 4Q/03 3Q/05 520 100% 85% --- ---- 980 980 === ==== CONSOLIDATED SERVICE COMPANY COMMUNITY SUBSTANTIALLY COMPLETED AND IN LEASE-UP (d) INDIANAPOLIS, IN ---------------- AMLI at Old Town Carmel Carmel, IN 100% 91 1Q/03 1Q/04 3Q/04 1Q/05 91 100% 93% === === 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. (c) The development of this community is substantially complete except for the tenant improvements in the retail component. (d) Reported as Rental Apartments Held for Sale on page 19. Fourth Quarter 2004 Page 57 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL DEVELOPMENT SUMMARY DECEMBER 31, 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 10,331 15,418 25,575 10,331 15,418 25,575 15,418 AUSTIN, TX ---------- AMLI Downtown (c) 30% 50,920 45,447 1,206 15,276 13,634 362 6,000 -- CHICAGO, IL ----------- AMLI at Museum Gardens (c)(d) 25% 61,571 55,203 10,961 15,393 13,801 2,740 5,819 -- -------- -------- -------- -------- -------- -------- -------- -------- 138,066 110,981 27,585 56,244 37,766 18,520 37,394 15,418 -------- -------- -------- -------- -------- -------- -------- -------- COMMUNITIES COMPLETED AND IN LEASE-UP AUSTIN, TX ---------- AMLI at Walnut Creek 100% 30,375 29,721 -- 30,375 29,721 -- 30,375 -- CHICAGO, IL ----------- AMLI at Seven Bridges (c) 20% 83,000 79,836 800 16,600 15,967 160 6,400 160 -------- -------- -------- -------- -------- -------- -------- -------- 113,375 109,557 800 46,975 45,688 160 36,775 160 -------- -------- -------- -------- -------- -------- -------- -------- Fourth Quarter 2004 Page 58 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL DEVELOPMENT SUMMARY - CONTINUED DECEMBER 31, 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 10,360 -- 11,606 10,360 -- 11,606 -- -------- -------- -------- -------- -------- -------- -------- -------- $263,047 230,898 28,385 114,825 93,814 18,680 85,775 15,578 ======== ======== ======== ======== ======== ======== ======== ======== 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. Fourth Quarter 2004 Page 59 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL LAND HELD FOR DEVELOPMENT OR SALE DECEMBER 31, 2004 Number of Apartment Market/Community Submarket Homes ---------------- --------- --------- ATLANTA, GA AMLI at Perimeter Gardens (a) Dunwoody 247 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 Fossil Lake (owned by the Service Companies) North Forth Worth 300 HOUSTON, TX ----------- AMLI at Champions II Northwest Houston 288 KANSAS CITY, KS --------------- AMLI at: Clear Creek (a) Overland Park 288 Westwood Ridge Overland Park 104 INDIANAPOLIS, IN ---------------- AMLI at Prairie Lakes (120 acres held for sale by the Service Companies) Noblesville N/A ------ Total 1,970 ====== Note: (a) In active development planning in anticipation of start of construction in 2005. Fourth Quarter 2004 Page 60 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY DECEMBER 31, 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 Lake Clearwater Indianapolis, IN 75% 11/15/2004 216 $ 14,700 at Wynnewood Farms Overland Park, KS 75% 11/15/2004 232 16,699 at Kirkland Crossing Aurora, IL 100% 10/20/2004 266 39,100 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 3,128 303,192 -------- -------- 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 -------- -------- 6,712 $541,055 ======== ======== Fourth Quarter 2004 Page 61 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL ACQUISITION AND DISPOSITION SUMMARY - CONTINUED DECEMBER 31, 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 $22,169. (b) The aggregate amount of NOI included in the current year from these communities at AMLI's share is $3,772. Fourth Quarter 2004 Page 62 Supplemental Information AMLI Residential Properties Trust
AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES DECEMBER 31, 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 administrative 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 of these amounts as may be included in discontinued operations. Fourth Quarter 2004 Page 63 Supplemental Information AMLI Residential Properties Trust AMLI RESIDENTIAL NON-GAAP FINANCIAL MEASURES - CONTINUED DECEMBER 31, 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 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); AFFO includes 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. Fourth Quarter 2004 Page 64 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 . . . . . . . . . . . . . . . . . . . $ 62,425 1,168 12,234 42,304 6,719 Income from discontinued operations, net of minority interest. . . . . . . . . . . . (6,137) (998) (909) (1,286) (2,944) Gains on sales of rental communities, net of minority interest. . . . . . . . . . . . (48,849) (49) (11,318) (37,482) -- Gain on sale of bond financing for a community sold, net of minority interest. . . . (4,423) -- -- (4,423) -- Minority interest. . . . . . . . . . . . . . . . (294) (119) (129) (190) 144 ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . 2,722 2 (122) (1,077) 3,919 Income from discontinued operations before minority interest. . . . . . . . . . . . 6,583 1,063 970 1,374 3,176 Discontinued operations - gain on sale of bond financing . . . . . . . . . . . . . . . 4,723 -- -- 4,723 -- Depreciation (a) . . . . . . . . . . . . . . . . 38,768 10,602 10,057 9,468 8,641 Share of co-investment partnerships' depreciation. . . . . . . . . . . . . . . . . . 10,498 2,628 2,671 2,609 2,590 Share of gains on sales of operating communities . . . . . . . . . . . . . . . . . . (2,648) -- -- -- (2,648) ---------- ---------- ---------- ---------- ---------- FFO. . . . . . . . . . . . . . . . . . . . . . . 60,646 14,295 13,576 17,097 15,678 Capital expenditures paid from FFO . . . . . . . (5,346) (1,821) (1,453) (1,168) (904) Share of co-investment partnerships' capital expenditures. . . . . . . . . . . . . . (957) (240) (270) (259) (188) ---------- ---------- ---------- ---------- ---------- AFFO . . . . . . . . . . . . . . . . . . . . . . $ 54,343 12,234 11,853 15,670 14,586 ========== ========== ========== ========== ========== Weighted average shares and units including dilutive shares . . . . . . . . . . . 30,355,430 31,255,140 31,168,376 31,026,552 27,918,813 ========== ========== ========== ========== ========== (a) Includes amounts included in discontinued operations -. . . . . . . . . . 2,151 290 483 665 713 ========== ========== ========== ========== ========== Fourth Quarter 2004 Page 65 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. . . . . . . . . . . . (6,796) (2,071) (1,018) (1,793) (1,914) Gains on sales 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. . . . . . . . . . . . . . . . 839 491 567 (179) (40) ---------- ---------- ---------- ---------- ---------- Income (loss) from continuing operations before minority interest. . . . . . . . . . . . 15,034 6,840 5,484 956 1,754 Income from discontinued operations before minority interest. . . . . . . . . . . . 8,015 2,304 1,215 2,171 2,325 Discontinued operations - gain on sale of bond financing . . . . . . . . . . . . . . . -- -- -- -- -- Depreciation (a) . . . . . . . . . . . . . . . . 25,610 7,534 7,012 5,546 5,518 Share of co-investment partnerships' depreciation. . . . . . . . . . . . . . . . . . 11,840 2,672 2,932 3,116 3,120 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 . . . . . . . . . . . 25,457,410 27,190,212 25,899,548 24,437,213 24,314,266 ========== ========== ========== ========== ========== (a) Includes amounts included in discontinued operations. . . . . . . . . . . 5,621 902 1,939 1,389 1,391 ========== ========== ========== ========== ========== Fourth Quarter 2004 Page 66 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 . . . . . .$ 62,425 1,168 12,234 42,304 6,719 26,104 13,533 5,935 2,928 3,708 Minority interest. . . (294) (119) (129) (190) 144 839 491 567 (179) (40) Income from discon- tinued operations, net of minority interest. . . . . . . (6,137) (998) (909) (1,286) (2,944) (6,796) (2,071) (1,018) (1,793) (1,914) Gains on sales of rental communities, net of minority interest. . . . . . . (48,849) (49) (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 . . 2,722 2 (122) (1,077) 3,919 15,034 6,840 5,484 956 1,754 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Fourth Quarter 2004 Page 67 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. . . . . (3,435) (886) (616) (430) (1,503) (5,831) (1,596) (1,309) (1,469) (1,457) Interest and amortization of deferred financing costs . . . 30,353 8,713 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 . . . . . 36,617 10,312 9,574 8,803 7,928 19,989 6,632 5,073 4,157 4,127 Fee income from unconsolidated partnerships. . . . . (1,824) (331) (636) (424) (433) (2,357) (557) (832) (512) (456) Other income . . . . . (1,378) (263) (207) (429) (479) (1,037) (86) (567) (189) (195) Service Companies' operations. . . . . . 1,861 353 537 527 444 (126) 312 (729) 249 42 General and administrative. . . . 7,301 2,441 871 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. . . . . . 70,840 20,341 17,252 16,919 16,328 49,979 14,808 12,574 11,244 11,353 NOI FROM DISCONTINUED OPERATIONS. . . . . . 8,616 1,229 1,331 2,087 3,969 16,517 3,963 3,882 4,263 4,409 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- CONSOLIDATED NOI . . .$ 79,456 21,570 18,583 19,006 20,297 66,496 18,771 16,456 15,507 15,762 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 68 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 . . . . .$ 46,733 11,789 11,417 11,281 12,246 47,145 11,739 11,636 11,784 11,986 Acquired from/ contributed to partnerships. . . . . 17,521 4,622 4,385 4,291 4,223 4,805 3,442 1,363 -- -- New communities. . . . 1,696 598 202 466 430 985 429 357 185 14 Development and/ or lease-up communities . . . . . 574 298 197 79 -- -- -- -- -- -- Acquisition communities . . . . . 7,602 3,897 1,867 1,592 246 17 17 -- -- -- Communities under rehab . . . . . . . . 1,590 344 372 407 467 1,996 447 417 530 602 Communities sold . . . 3,740 22 143 890 2,685 11,548 2,697 2,683 3,008 3,160 -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Total. . . . . . . . .$ 79,456 21,570 18,583 19,006 20,297 66,496 18,771 16,456 15,507 15,762 ======== ======== ======== ======== ======== ======== ======== ======== ======== ======== Fourth Quarter 2004 Page 69 Supplemental Information AMLI Residential Properties Trust